| Regional Affairs
China still guarding shoal but Filipino fishermen back—Lorenzana Inquirer 30th Oct 2016
Philippine aerial surveillance showed Chinese coast guard ships were still guarding a disputed shoal in the South China Sea but they allowed Filipinos to fish “unmolested” for the first time in years, the defense secretary said Sunday. The return of Filipino fishermen to Scarborough Shoal, which China effectively seized in 2012, was “a most welcome development” because it brings back their key source of livelihood, Defense Secretary Delfin Lorenzana said. China granted access to the tiny, uninhabited shoal 123 nautical miles (228 kilometers) from the northern Philippines after President Rodrigo Duterte reached out to Beijing and met Chinese President Xi Jinping and other leaders this month. After his China trip, Duterte announced without elaborating that Filipinos may be able to return to the shoal soon. A Philippine Navy plane spotted at least four Chinese coast guard ships around the shoal during a surveillance flight over the weekend, Lorenzana said, adding that an earlier report by the Philippine coast guard that the Chinese had left the area was incorrect. “Flybys of our planes reported Chinese coast guard ships are still there but our fishermen were fishing unmolested,” Lorenzana told The Associated Press. It’s unclear how long China would keep the shoal open to Filipinos or if there were any conditions attached.
Romualdez named special envoy to US philstar.com 28th Oct 2016
As part of a “rebooting” of relationship with the US, the Duterte administration is appointing Babe Romualdez as special envoy to the country’s long-time defense ally. The appointment of The STAR columnist came as the US is preparing to choose its new leader in November and as it continues to try to make sense of Duterte’s attacks and foreign policy shift toward China and Russia. Foreign Secretary Perfecto Yasay Jr. informed Romualdez of his appointment yesterday at the Imperial Tower Hotel in Tokyo, on the sidelines of Duterte’s three-day official visit. “We are trying on how we can work with the changes… especially with the upcoming elections in the US so we will see how we can (establish)… let’s call it as rebooting our relationship with the US,” said a member of the President’s official delegation here. As special envoy, Romualdez’s “special mission” is to put back on track Philippine-US relations. Romualdez confirmed the President’s offer, but declined to give details pending the President’s formal announcement. “I confirm it,” he said, adding he declined the post of ambassador. The President initially offered Romualdez the post of ambassador to Washington to replace Malacañang Protocol Officer and former ambassador Marciano Paynor.
Philippines rejects China language in Scarborough proposal Inquirer 27th Oct 2016
China wanted the Philippines to agree to a formal declaration that Beijing was “allowing” Filipino fishermen to return to Scarborough Shoal, but Manila did not agree because the proposal would go against the ruling of an international tribunal that the common fishing ground did not belong to anyone. That, according to Kabayan Rep. Harry Roque, was the reason China and the Philippines did not sign a written agreement on the return of Filipino fishermen to Scarborough Shoal during President Duterte’s state visit to China last week. Roque was part of Mr. Duterte’s massive entourage, composed mainly of businessmen. The Philippine side, Roque said, rejected the use of “allow” or “permit” in referring to Filipino fishermen regaining access to Scarborough Shoal, which they know as Panatag Shoal, as the UN-backed Permanent Court of Arbitration in The Hague ruled in July that the shoal is a common fishing ground. He said China wanted to use “allow” or “permit” to strengthen its own position, but this “was unacceptable as far as Philippines is concerned.”
ALL ABOUT ECONOMICS | Duterte assures Japan about China visit but bashes US again InterAksyon.com 26th Oct 2016
President Rodolfo Duterte gave his assurances to Japan Wednesday that his high-profile visit to rival power China last week was all about economics, but again suggested defense ties with longtime ally Washington may be overhauled. "You know I went to China for a visit. And I would like to assure you that all there was economics. We did not talk about arms. We avoided talking about alliances ..." he told Japanese businessmen. Calling Japan a "long-standing friend and ally," he also called for Japanese investment in infrastructure, agriculture and other sectors. Duterte said he did not pick quarrels with his neighbors, but had tough words for Washington, threatening once again to revise or cancel Manila's defense pacts with the United States and insisting the Philippines was not "a dog on a leash." "I have declared that I will pursue an independent foreign policy. I want, maybe in the next two years, my country free of the presence of foreign military troops. I want them out," he said. "And if I have to revise or abrogate agreements, executive agreements, this shall be the last maneuver, war games between the United States and the Philippines military." Duterte's visit to Japan comes amid jitters about his foreign policy objectives after weeks of verbal attacks on ally the United States and overtures towards China. Duterte has vehemently criticized Washington for questioning his crime crackdown, which has claimed some 3,700 lives and attracted widespread international criticism -- but has also sent the 71-year-old former mayor's domestic popularity soaring.
Beyond being #1 ODA source, Japan to work closely with PH on maritime issues, including the SCS InterAksyon.com 26th Oct 2016
Japan won't be just the Philippines' top source of official development assistance; it will play a key role as well in helping its Asian neighbor upgrade its maritime security capability, and ensure adherence to rule of law in resolving regional disputes, including in the South China Sea. This was among the highlights of a joint statement issued by Philippine President Rodrigo Duterte and Prime Minister Shinzo Abe after a meeting on bilateral issues in Tokyo, on Wednesday afternoon, the second day of Duterte's official visit to Japan. Reading aloud a joint statement to the press, Duterte said Manila had sought, and received, Japan's commitment to help it as it prepares for its chairmanship of the ASEAN IN 2017. Prime Minister Abe said both Japan and Philippine maritime relations support maritime safety capability, News5's Maeanne Los Baños posted on Twitter. Duterte said the Philippines will continue to work closely with Japan on issues of common concern, including the South China Sea. Secretary Carlos Dominguez III signed with officials of the Japan International Cooperation Agency (JICA) a loan agreement for a maritime safety project for the Philippine coastguard.
‘China ties OK but US still key’ The Standard 25th Oct 2016
The Makati Business Club welcomed the government’s push to revitalize the country’s relationship with China, but called for strengthening economic ties with the US and other “strategic” allies as well. “We believe that as we strengthen ties with one of our neighbors, this should be in tandem with continuing to nurture our partnership with existing strategic allies and friends. In particular, our relationship with the United States, particularly on the economic front, should remain solid and should also be further expanded,” the business group said. China’s expertise in infrastructure will be critical to the Philippines’ development to close the massive gap that has been restricting the country’s growth. China remains the Philippines’ second largest trading partner, with exports of $10.8 billion and imports of $6.4 billion. The United States is the Philippines’ third largest trading partner, accounting for 12.7 percent of total goods. The Philippines exported $9 billion to the US last year, and imported $7.47 billion, resulting in a trade surplus of $1.55 billion. Remittances from migrant Filipino workers in the US and revenues from American business process outsourcing companies provide a major foreign exchange inflow to the Philippines. Filipinos in the US contribute about $8.4 billion in remittances, or 33 percent of the total. American firms have also been critical in the development of the BPO industry that contributed $22 billion to the economy and provided 1.2 million jobs as of 2015. The US is also among the major investors with $732 million in 2015 and second largest source of foreign tourists. “We support the drive for an independent foreign policy, particularly during this time when the Philippines has gained international respect, recognition and confidence over the past few years. As we transition through this recalibration in our foreign policy, we call on the government to initiate another multi-sectoral dialogue similar to when it drafted the 10-point socio-economic agenda,” said the business group.
US official to Yasay: Duterte tirades stir 'consternation' Rappler 24th Oct 2016
A top US official met with Philippine Foreign Secretary Perfecto Yasay Jr in Manila on Monday, October 24, after a series of anti-US tirades by Philippine President Rodrigo Duterte. "I pointed out to Secretary Yasay that the succession of controversial statements and comments, and the climate of uncertainty about the Philipppines' intentions, have created consternation in a number of countries, not only in mine," US Assistant Secretary of State for East Asian and Pacific Affairs Daniel Russel told reporters after the meeting. "This is not a positive trend," he said. "Your friends are also concerned about the loss of life in connection with the counternarcotics campaign," Russel added, referring to Duterte's war on drugs that has killed more than 4,400 people since July 1. In an earlier interview with Rappler, US Ambassador to the Philippines Philip Goldberg said Duterte's anti-US rhetoric has caused "head-scratching" in Washington. He said this is a kind of language that the US has heard elsewhere, "but not from a friend and ally."
Rody sets Japan visit; sea row main agenda The Standard 24th Oct 2016
Prime Minister Shinzo Abe is looking to offer 5 billion yen ($48.2 million) in loans when he meets with President Rodrigo Duterte this week, diplomatic sources said over the weekend. The financial support is aimed at helping facilitate agricultural development in Mindanao, according to the sources. Duterte, who will make his first visit to Japan on Tuesday, was a longtime mayor of Davao on the island. The deal will come after Duterte’s four-day visit to China last week underlined the Philippines’ diplomatic shift to move closer to Beijing and away from Washington. Duterte said he would bring up the longstanding territorial dispute with China over the South China Sea during his official visit. During his arrival ceremony, Duterte said he will be discussing with Japanese Prime Minister Shinzo Abe mostly “economic cooperation and shared interests.” Both the Philippines and Japan have ongoing territorial disputes with China separately in West Philippine Sea and East China Sea, respectively. The President said that he will brief Abe about what he and Chinese President Xi Jinping had agreed to resolve the ongoing dispute peacefully without any “violent incident” over the sea. Duterte also added that there will be possible talks on the South China Sea dispute and that would be either “bilateral or multilateral.” The President said if the talks are multilateral, he would make sure Japan is included in the talks. Japan has been the Philippines’ top trading and Official Development Assistance partner for many years.
PH, China reach initial agreements involving sea dispute ABS-CBN News 22nd Oct 2016
President Rodrigo Duterte said Friday that China and the Philippines have reached certain agreements in the peaceful resolution of the South China Sea dispute. Duterte made the announcement in a press conference following his arrival from his state visit to Brunei and China. "In all meetings, we had productive and extensive discussions on the full range of Chinese-Philippine relations, from trade and investments, to infrastructure and tourism, and to science and technology and health," Duterte said. He added that formal lines of communication between the two countries have been opened. "To realize the vision of a deeper and more meaningful engagement, we have opened formal lines of communications between our government and agreed on the full resumption of the regular bilateral consultations mechanisms which were put on hold for several years," he said. Duterte said China and the Philippines have agreed to pursue peaceful negotiations to resolve the sea dispute. "With security and stability recognized as necessary conditions for growth, the Philippines and China affirmed the importance of maintaining and promoting peace, freedom of navigation and overflight in South China Sea," Duterte said. "We acknowledged the need to address disputes through peaceful means in accordance with international law. We also agreed to continue discussions on confidence-building measures, including a bilateral consultation mechanism to discuss immediate issues of concern in South China Sea.," he added. However, there was no mention of the Hague tribunal ruling where the panel ruled in favor of the Philippines in the sea dispute.
Duterte’s pivot The Economist 22nd Oct 2016
Even in a year of extraordinary reversals, few would have expected it. In July China reacted with fury when an international tribunal upheld a complaint from the Philippines and rubbished China’s territorial claims in the South China Sea. This week it is rolling out the red carpet for the mercurial Philippine president, Rodrigo Duterte. He is being feted in a four-day state visit, with 400-odd businessmen in tow. Rub your eyes: America’s strongest ally in South-East Asia appears to be plopping like a ripe mango into China’s hands. Consider what Mr Duterte, in power since June, has said in recent weeks. He has branded Barack Obama a “son of a whore” for criticising his “kill them all” war on drug dealers and addicts, which has claimed thousands of lives, many of them innocent. He has demanded an end to joint naval patrols and to America’s assistance in the southern jungles of Mindanao, where American special forces advise Filipino troops fighting against Abu Sayyaf, a violent group linked to al-Qaeda. And he has questioned whether America would honour its treaty obligation to come to the Philippines’ aid if the archipelago were attacked. What that means for the American “pivot” to Asia scarcely bears thinking about. But do the eyes deceive? American officials—from Admiral Harry Harris, commander in the Pacific, down—insist that all is dandy. Joint naval patrols continue, as does co-operation in Mindanao; and America still has five bases on Philippine soil. The close working relationship with Filipino counterparts, the Americans insist, is as strong as ever. The Filipinos, for their part, report no change of orders from the new chief.
JOINT STATEMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE PEOPLE'S REPUBLIC OF CHINA Republic of the Philippines Department of Foreign Affairs 21st Oct 2016
At the invitation of H.E. President Xi Jinping of the People’s Republic of China, H.E. President Rodrigo Roa Duterte of the Republic of the Philippines undertook a state visit to China from 18 to 21 October 2016. During the visit, President Rodrigo Roa Duterte and President Xi Jinping had a fruitful meeting in an amicable and friendly atmosphere and conducted in-depth exchanges on bilateral relations as well as international and regional issues of shared interest. H.E. Li Keqiang, Premier of the State Council, and H.E. Zhang Dejiang, Chairman of the Standing Committee of the National People’s Congress, met with President Rodrigo Roa Duterte. H.E. Zhang Gaoli, Vice Premier of the State Council, and President Rodrigo Roa Duterte also attended the opening ceremony of Philippines-China Economic and Investment Forum and delivered remarks. Both sides acknowledge the centuries-old bonds of friendship of the two peoples. Both sides agree that the mutual understanding and friendship of the two peoples are important. Both sides will make concerted efforts to cement the traditional friendship of the two peoples. Both sides agree that since the establishment of diplomatic relations, Philippines-China relations have enjoyed smooth development and remarkable progress in many areas of cooperation which have benefited both countries and peoples. Both sides commit to further enrich Philippines-China bilateral relations, founded on mutual respect, sincerity, equality and mutual benefit, which is conducive to regional peace, stability and prosperity.
16 deals sweeten PH-China Pot Philippine Daily Inquirer 20th Oct 2016
The Philippines and China will sign at least eight government-to-government deals on Thursday. The deals do not include joint exploration for energy resources in the South China Sea. On Friday, Filipino and Chinese businessmen will sign eight agreements covering rail and land transportation, industrial zones, ICT development, infrastructure, tourism, energy and telecommunications. The deals include one between Huawei and Globe Telecom and another between Alcatel Lucent Shanghai Bell Co. Ltd. and Globe that will add speed to the Philippines’ slow internet service. Another deal is for the construction of a railway that will connect Subic Bay Freeport in Zambales province to Clark Freeport in Pampanga province for the benefit of business and industry locators at both special economic zones.
Duterte announces military, economic break with US philstar.com 20th Oct 2016
President Rodrigo Duterte on Thursday announced that he is cutting ties with the United States, the Philippines' long-time ally and trading partner. Duterte, who is in Beijing for a state visit, announced the separation from the US "not only in economics, but also military" at a gathering of Chinese businessmen. “In this venue, I announce my separation from the United States,” Duterte said in his speech. Duterte earlier hinted at cutting ties with the United States, saying at one event that US President Barack Obama “can go to hell.” The president started to throw tirades against the US after it raised concerns over his anti-drug campaign, which has seen a rise in drug-related deaths. The president is known for makings statements that he later retracts or that his spokespersons later clarify. Duterte’s economic managers said Duterte’s policy would open the Philippines to trade and investment opportunities in the region. “The president just gave a very important speech. The Cabinet will move strongly and swiftly towards regional economic integration. This is why the president prioritized foreign trips to ASEAN (Association of Southeast Asian Nations) and Asia,” Finance Secretary Carlos Dominguez and Socioeconomic Planning Secretary Ernesto Pernia said in a joint statement.
Duterte considers PH visa for Americans mb.com.ph 20th Oct 2016
President Rodrigo R. Duterte says imposing visa restrictions to Americans bound for the Philippines must be considered. In his talk with the Filipino community at the Grand Hyatt Hotel in Beijing, he lamented that Americans can easily visit the Philippines while Filipinos are given a hard time entering the western country. “Anytime, they can enter the Philippines visa free. Well, there will always be a time for reckoning. Bakit di natin tablahin (Why don’t we even the score)?,” he said. The Philippines is not included in the Visa Waiver Program (VWP) that enables nationals of certain countries to travel to the United States for tourism or business for stays of 90 days or less without obtaining a visa. Included in the list of member-countries to the VWP are Australia, Italy, Japan, Slovenia, Slovakia, Taiwan, Singapore, among others.
‘Time to say goodbye,’ Duterte tells US during visit to China Inquirer 20th Oct 2016
Philippine President Rodrigo Duterte said it was “time to say goodbye” to the US during a visit to China on Wednesday, as the combative leader reconfigures his country’s diplomatic alliances. Duterte is in China for a four-day trip that is expected to confirm his tilt away from Washington and towards Beijing’s sphere of influence. During a speech addressing the Filipino community in Beijing, the firebrand president said the Philippines had gained little from its long alliance with the US, its former colonial ruler. “Your stay in my country was for your own benefit. So time to say goodbye, my friend,” he said, as if addressing the US. “I will not go to America anymore. I will just be insulted there,” he added, before once again referring to US President Barack Obama as a “son of a whore.” Duterte, who took office in late June, said he was fed up with the Philippines’ foreign policy being dictated by a Western agenda. “What kept us from China was not our own making. I will charter a new course,” he said. Foreign policy under Duterte has dramatically shifted from that pursued under predecessor Benigno Aquino III, who took Beijing to an international tribunal over its extensive territorial claims in the South China Sea and won a resounding victory.
PH, China sign coast guard cooperation pact, 12 other deals Rappler 20th Oct 2016
The Philippines and China signed 13 documents on cooperation in areas ranging from maritime security to agriculture. Philippine President Rodrigo Duterte and Chinese President Xi Jinping witnessed the signing of the documents after an expanded bilateral meeting on Thursday, October 20. Cabinet secretaries and ministers signed the documents. The Memorandum of Understanding (MOU) that stood out was on the “establishment of a joint coast guard committee on maritime cooperation.” The Philippines and China are engaged in a maritime dispute over the West Philippine Sea (South China Sea). It is not yet clear if the cooperation of the country’s coast guards involve joint patrols in the disputed sea. Xi and Duterte, in their bilateral talks, agreed to "fully recover," among others, "diplomatic consultation" and "defense security consultation," Vice Foreign Minister Liu Zhien Min said. China also welcomed increased Philippine participation in its Belt and Road Initiative, a "trade and infrastructure network" seen as the center of China's "economic diplomacy." "China will also take an active part in the infrastructure development in the Philippines and provide financing support to the Philippines in this aspect," said Liu.
Economic managers must walk the talk in removal of rice QR Business Mirror 18th Oct 2016
The rice-import quota—a nontariff barrier that the Philippines has enjoyed for more than two decades—would expire in less than a year. If we are to believe the recent pronouncements of economic managers pushing for the removal of the quantitative restriction (QR) on rice traded under the World Trade Organization (WTO), it appears that it is already a done deal. All it lacks is the nod of the President to fast-track the process of eliminating the power of the government to limit the entry of rice imports. Those advocating for its removal point to the need to feed millions of poor Filipinos who cannot afford to buy meat products, such as pork and chicken. With the removal of the import quota, experts and economic managers expect that rice sold at the retail level would be cheaper. Consider this: The Philippines recently bought milled rice from Vietnam and Thailand at an average of $450 per metric ton, or $0.45 a kilogram. At the current exchange rate, $0.45 is equivalent to P21, cheaper than the local regular-milled rice being sold at P36 per kilo, according to the latest data from the Philippine Statistics Authority.
Duterte in China: Philippine leader turns conciliator-in-chief? BBC News 18th Oct 2016
What has happened to the swashbuckling presidential candidate who six months ago said he would personally retake the Spratly Islands from China, riding out to sea on a jet ski to plant the Philippine flag on a disputed shoal? And what has happened to the foulmouthed commander-in-chief of a key US ally who only last month casually called his American counterpart a "son of a whore"? Ahead of this week's state visit to China, President Rodrigo Duterte of the Philippines has washed out his mouth and prepared a new set of lines. He has talked of a key turning point in relations with China, promised to speak softly and praised China's "good, sound policies, internal and external". Abandoning his jet ski threats, he told China's state news agency Xinhua: "There is no sense in going to war. There is no sense fighting over a body of water... We want to talk about friendship, we want to talk about co-operation, and most of all, we want to talk about business. War would lead us nowhere." This shift to conciliator-in-chief is all the more striking in the context of a relationship between the two countries which seemed to have reached rock bottom only three months ago, when the Philippines won a massive legal victory against China's claims in the South China Sea, inflicting great damage in the process on China's reputation as a rising power willing to respect international law. So why has the notoriously candid Filipino president suddenly decided that now, when it comes to China, discretion is the better part of valour? It all comes down to a calculation about money. With mangoes thrown in. And a lucky moment. The simple fact is that a clear-cut courtroom win against China, coming just after Mr Duterte took up office, has created opportunities for a new approach.
‘Philippine-US alliance has survived presidents’ philstar.com 16th Oct 2016
The United States is pursuing all of its programs and projects in the Philippines despite stinging pronouncements from President Duterte and hopes the close ties will not change. “We have heard the words spoken, of course, but we have not received official notification of any change,” US embassy press attaché Molly Koscina said in a discussion with The STAR editors during a visit at the newspaper’s office on Friday. “The US-Philippines relationship has spanned 11 US presidents,” Koscina said, noting the relationship continued to grow and she could not see any reason to change the way the two countries have been treating each other as allies. Koscina was responding to a question on what the Philippines could expect as the US elects a new president next month. On Manila’s side, Duterte has been saying he is not a fan of the US and that he wants to end the military exercises with the country’s traditional and longtime defense ally. But he later clarified he would not cut military ties with allies. Duterte also complained that the US had been raising the issue of extrajudicial killings instead of helping him in his war against illegal drugs and hurled expletives at the State Department and Obama because of the issue. He likewise said he would need space from the US to pursue peace talks with the communists and Muslim insurgents and that he would prefer to nurture ties with China and Russia. But Koscina stressed: “We haven’t changed anything on our side. We are still here. We are still continuing all of our programs, we haven’t made any adjustments and our sincere hope is that the relationship will exist and continue as it is.”
Du30 wish list in China: money, buckets of respect Manila StandardToday 14th Oct 2016
PRESIDENT Rodrigo Duterte heads to China next week seeking billions of dollars in investments and buckets of respect, as he pivots angrily away from traditional ally the United States. Chinese President Xi Jinping is set to give the mercurial leader a warm welcome, after Duterte threatened to end a decades-long alliance with the United States and gave Beijing a timely boost in its quest for more control over the strategically vital South China Sea. Duterte, 71, has said he is trying to wean the Philippines off an unhealthy reliance on its former colonial ruler, although he has signaled the shift is also due to his outrage at US criticism of his deadly war on crime.
National Affairs
Senate to start Cha-cha debates next year philstar.com 1st Nov 2016
Senators will heed President Duterte’s call for speedier action on proposals to amend the Constitution to pave the way for a federal form of government, but will oppose any attempt to abolish the Senate. Senate Majority Leader Vicente Sotto III said he sees the chamber starting discussions on Charter change, particularly on proposals for a shift to a federal form of government, early next year. “What we can do is to either pass a resolution convening a constituent assembly (con-ass) or pass a law for a constitutional convention (con-con),” Sotto said in a telephone interview. Duterte on Saturday said he is willing to step down from office as soon as the federal form of government is in place. He said such a form of government would allow regions to grow faster. “I give you my word, if the framework is already there, I will resign to give way to the new president,” Duterte said. Under a con-ass both the Senate and the House of Representatives convene as one body to write amendments to the Constitution. This mode is cheaper and is more convenient for proposing amendments. A con-con is composed of elected delegates representing congressional districts and various sectors who will convene as a separate body to write the amendments.
Cabinet gets high mark in poll philstar.com 29th Oct 2016
The Cabinet’s net satisfaction rating in the first three months of President Duterte’s government surpassed the rating of the Cabinets of past administrations during the same period, according to the latest survey of the Social Weather Stations (SWS). The poll found 49 percent of respondents satisfied and 13 percent dissatisfied with the performance of Duterte’s Cabinet, yielding a “good” +36 net satisfaction score. The survey was conducted from Sept. 24 to 27, using face-to-face interviews of 1,200 adults nationwide. The current Cabinet outdid predecessors in initial net satisfaction ratings of a “moderate” +22 in a Sept. 24-27, 2010 survey of that of former president Benigno Aquino III; the “moderate” +14 in a March 5-18, 2001 of former president and now Pampanga Rep. Gloria Macapagal Arroyo; the “moderate” +18 in the Sept. 11-29, 1998 poll under Joseph Estrada; the equally “moderate” +17 in the March 19-April 21, 1994 survey during the term of Fidel Ramos, and the “poor” -16 recorded on Nov. 12-Dec. 5, 1990 during the time of the late president Corazon Aquino.
What Duterte accomplished in China Rappler 24th Oct 2016
President Rodrigo Duterte’s state visit to China was marked at the beginning and in the middle by two powerful storms back home. But Duterte caused his own kind of storm in Beijing. On October 18, the Philippine President, tired from his Brunei trip, landed in China’s capital without much fanfare save for a trail of journalists. By his departure on October 21, the world’s headlines would blast his declaration of a “separation” from the United States, in favor of China and Russia. In between, Duterte was given red carpet treatment by Chinese President Xi Jinping, had several meetings with Chinese companies, keynoted a business forum attended by Filipino and Chinese businessmen, and even had time to walk to a Peking duck restaurant in a busy shopping district.
Andanar confident US BPOs will remain in Philippines philstar.com 24th Oct 2016
About 1.2 million Filipinos may lose their jobs if American business process outsourcing (BPO) operations pull out of the Philippines. But Communications Secretary Martin Andanar is confident that this would not happen, saying it would be to the best interest of American businessmen to keep their BPO operations in the country. Andanar cited the call of US President Barack Obama who, when still a senator in 2008, urged American businessmen to bring the BPO jobs back to their homeland. But the call did not get a positive response. “Why? Because American businessmen know that they (would) save more here. The salaries in the US are (paid) per hour, ours are per day. So, their businesses are more viable here,” Andanar said, referring to cheaper labor cost in the Philippines. Andanar made the comment after President Duterte declared a Philippine “separation” from the United States after the US criticized the Duterte administration’s bloody drug war marked by allegations of summary killings. But upon arrival from his state visit to China, Duterte clarified that he was not severing diplomatic ties with the US.
President’s style upsetting business, says think tank Inquirer 24th Oct 2016
President Duterte’s style of policymaking—perceived to be “driven by impulse rather than study and full consultation”—is causing “much unease” in the business community, New York-based think tank Global Source said. In a commentary titled, “Oops!…He did it again,” and written by economist Romeo Bernardo, Global Source said Mr. Duterte’s outbursts were putting government economic managers in “perpetual damage control mode and diverts attention away from more productive endeavors.” “Despite his economic managers’ repeated guidance for investors to look at the fundamentals rather than ‘political noise,’ the President’s loose speech cannot but give investors pause and his anti-Americanism is fueling leftist militancy and empowerment that, if left unchecked, would have real business consequences,” it said. Some of the consequences noted are in the form of labor and land conversion policies, as well as mining environmental activism. At the confirmation hearing of the President’s defense secretary, the think tank noted that the Senate panel had been told that “the President has been issuing statements without consulting his Cabinet.”
Special Report: As death toll mounts, Duterte deploys dubious data in drugs war Reuters 24th Oct 2016
Philippines' President Rodrigo Duterte ended a recent speech in Manila with a now-familiar claim: Two policemen were dying every day in his violent battle to rid the country of illegal drugs. But police statistics have shown that figure to be exaggerated. From July 1, when Duterte launched his "war on drugs," to Oct. 12, when he spoke in Manila, 13 police officers were killed. That's an average of one every eight days. This is not the only dubious claim Duterte has used to justify his bloody anti-narcotics campaign, according to a Reuters review of official government data and interviews with the president's top anti-drug officials. These officials say that data on the total number of drug users, the number of users needing treatment, the types of drugs being consumed and the prevalence of drug-related crime is exaggerated, flawed or non-existent. But they say the problematic statistics don't matter because the campaign has focused attention on a long-neglected crisis in the Philippines. "I don't see it as a problem," said Wilkins Villanueva, the Metro Manila regional director for the Philippine Drug Enforcement Agency (PDEA), the country's leading anti-narcotics agency. "Before, our fight against dangerous drugs was a lonely battle… Now, everybody's helping us – the community's helping us." Nearly 2,300 people have been killed in police operations or by suspected vigilantes since Duterte took office on June 30, according to the Philippines police. That figure was revised down this month by the police from an original tally of 3,600 deaths. The crackdown has been criticized abroad but enjoys widespread support in the Philippines, which Duterte has said faces collapse if the "drug menace" isn't tackled.
Top US diplomat arrives Manila Bulletin 24th Oct 2016
United States (US) Assistant Secretary of State for East Asian and Pacific Affairs Daniel R. Russel arrived in Manila yesterday, aiming to make a sense of President Duterte’s recent anti-American statements particularly his declaration of an economic and military “separation” from its strongest Western ally. “Arrived in Manila,” Russel tweeted yesterday morning. “Trying to make sense of what we’re hearing. Will ask our friends.” His first stop in a three-country swing in Southeast Asia, the top US diplomat was greeted by headlines about President Duterte’s declaring the Philippines’ separation from the US.
Philippine president says he won’t sever ties with U.S. USA TODAY 21st Oct 2016
MANILA, Philippines — Philippine President Rodrigo Duterte said Friday he did not mean he would cut off ties with the United States when he said in China that he was separating from the U.S., adding it’s in his country’s best interest to stay with America. Despite the clarification, the tough-talking president kept up on his tirades against the U.S., saying in a late-night speech in his southern hometown of Davao city that he would never travel to America “in this lifetime.” At an economic forum Thursday in Beijing, where he made a state visit, Duterte declared “my separation from the United States … both in military and economics also.” His pronouncement was met with applause, but Duterte did not explain what he exactly intended to do and when.
SWS on Philippine trust: +66 for US, -33 for China philstar.com 19th Oct 2016
Filipinos trust the United States far more than China, according to results of a Social Weather Stations (SWS) survey, despite President Duterte’s cozying up to Beijing and his repeated rants against the US. The survey, conducted from Sept. 24 to 27, showed the US got the best net score among seven countries tested for public trust, posting a “very good” +66 in September and China getting a -33, lower than the -24 in June. Meanwhile, more than half of Filipinos continued to express “little trust” in China despite Duterte’s efforts to improve relations with Beijing. Trust in the US, however, was six points lower than June’s “excellent” +72. SWS said that the US has been in positive territory since it first surveyed the country in December 1994. Its score has ranged since then from a “moderate” +18 in May 2005 to an “excellent” +82 in December 2013, and has been above +60 since June 2010. About two in 10 or 19 percent of 1,200 respondents nationwide, meanwhile, were undecided on the matter. The results of the latest SWS poll were published in the newspaper BusinessWorld yesterday, as Duterte arrived in Beijing for a four-day state visit. The President is expected to discuss with the Chinese government the issues of agriculture, fisheries, infrastructure, tourism and the government’s anti-drug campaign.
Govt urged to expand hybrid rice subsidy Business Mirror 19th Oct 2016
Local hybrid-rice producer SL Agritech Corp. (SLAC) on Tuesday appealed to the Duterte administration to expand the government’s hybrid-rice subsidy program so more farmers would plant the variety. SLAC Chairman Henry Lim Bon Liong, who will join President Duterte during his state visit to China this week, said providing subsidy to more farmers will help the government achieve its target of expanding lands planted with hybrid rice to 1 million hectares.
SC rules on FM burial today: Imee seeks forgiveness Phil Daily Inquirer 18th Oct 2016
The Supreme Court (SC) is set to decide today on whether to finally allow the burial of the late former president Ferdinand Marcos in the Libingan ng mga Bayani as it tackles petitions of martial law victims to block it. A high court insider said the case is included in the agenda of the justices in their regular session, as the status quo ante order they issued last month stopping the Marcos burial lapses today. President Duterte had directed the burial of the former president in the heroes’ cemetery, but the SC ordered it halted amid petitions against it.The high court heard the oral arguments of both the petitioners and the government last month. Anticipating the SC ruling’s release, Marcos’ eldest daughter and Ilocos Norte Gov. Imee Marcos led supporters yesterday in a prayer vigil outside the SC compound on Padre Faura Street in Manila.
Ban on land conversion to harm PHL agriculture Business Mirror 17th Oct 2016
ECONOMIC managers and Vice President Maria Leonor G. Robredo warned over the weekend that the proposed blanket ban on land conversion will derail efforts to revitalize the country’s agriculture sector. Socioeconomic Planning Secretary Ernesto M. Pernia, Finance Secretary Carlos G. Dominguez III, Budget SecretaryBenjamin E. Diokno, Trade Secretary Ramon M. Lopez and Robredo made this pronouncement in a position paper against the land-conversion ban.“Paradoxically, agriculture sector revitalization may suffer under this proposed policy,” the paper read. With the ban on land-use conversion, the government officials warned that land requirements may not be met for agriculture-based processing and manufacturing activities, which can help make food affordable, increase farmers’ incomes and generate export revenues. Pernia said the joint position paper against the land-conversion ban has been transmitted to the Office of the President last week.The National Economic and Development Authority (Neda) said President Duterte approved the Department of Agrarian Reform’s (DAR) proposal for a two-year moratorium on land conversion, which disallows the conversion of agricultural land to nonagricultural uses. This was intended to support the country’s food-security program.
Duterte’s pivot to China against the grain Business World 17th Oct 2016
The Third Quarter 2016 Social Weather Survey -- conducted Sept. 24-27 via face-to-face interviews with 1,200 adults nationwide and with a ±3 percentage-point sampling error margin -- found 55% of Filipinos having “little trust,” 19% undecided, and 22% having “much trust” in China. That yielded a “bad” -33 net trust in the Philippines’ giant northern neighbor, down nine points and a grade from the “poor” -24 logged in June 2016.
DOF seeking to expand eligibility of poor seniors for P500 subsidy Business World 17th Oct 2016
MORE senior citizens could be eligible for a P500 “social pension” with the Department of Finance (DoF) seeking to lower the qualifying age to 60 from 77 by 2017.“For the elderly seniors, we are increasing the subsidies to them by reducing the qualifying age for receiving subsidies,” said Finance Secretary Carlos G. Dominguez III during the Commission on Appointments hearing last week. “That’s why the budget for subsidies for elderly seniors increased.” If approved, this proposal would increase the number of senior citizen beneficiaries to 2.8 million from 1.4 million, the DoF reported in a statement e-mailed to reporters this weekend.
BusinessWorld | Ramos won’t be in China BusinessWorld 14th Oct 2016
FORMER PRESIDENT Fidel V. Ramos will not take part in President Rodrigo R. Duterte’s state visit to China, a Palace official said on Thursday. Communications Secretary Martin M. Andanar said Mr. Ramos, the Philippines’ special envoy to China, did not disclose why he will not be part of Mr. Duterte’s retinue in Beijing, but Mr. Andanar said in Mr. Ramos’s behalf, “it is about giving respect to our current President.”
Customs
New PH Customs order implements advance ruling system PortCalls Asia 25th Oct 2016
The customs order that establishes an advance ruling system for valuation and rules of origin (RO) concerning import and export merchandise in the Philippines has just been released. Finance Secretary Carlos Dominguez and Customs Commissioner Nicanor Faeldon signed Customs Administrative Order (CAO) 03-2016 dated October 3, 2016, which covers the establishment of an advance ruling system for customs valuation methodology and preferential and non-preferential RO. The CAO is pursuant to Sections 1100-1104 and related provisions under Republic Act (R.A.) No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA). Sections 1100 to 1104 discuss Classification Ruling, Valuation Ruling, Ruling on the Rules of Origin, Conditions for Application and Effect of Advance Rulings, and Administrative and Judicial Appeals. The order makes advance ruling—an official written and binding ruling issued by Bureau of Customs (BOC) upon the request of an importer, foreign exporter, or their authorized agent—now part of the law. The ruling gives an assessment of origin or treatment to be applied on a certain element of customs value, or on other matters related to the importation or exportation of goods under customs jurisdiction, prior to an import or export transaction for a specified period. CAO 03-2016 is the second CAO signed to implement certain provisions of the CMTA, the first being on the de minimis (CAO 02-2016). Under the latter, goods imported into the Philippines with de minimis value of P10,000 and below are no longer subject to duties and taxes.
Customs: No port congestion this year The Philippine Star 20th Oct 2016
There will be no repeat of the port congestion that delayed shipments to Metro Manila and resulted in price hikes for the past two years during Christmas season, officials said yesterday. “We do not see that happening this year,” Customs Commissioner Nicanor Faeldon said in a phone interview. Jay Daniel Santiago, general manager of the Philippine Ports Authority (PPA), agreed. “We are not expecting port congestion as of the moment,” he told reporters. As of yesterday, Port of Manila and Manila International Container Port (MICP) recorded an average yard utilization of 68 percent, far from over 90 percent recorded in 2014 and early 2015. The two ports, the largest in the country, got clogged with shipments as a result of Manila’s truck ban in February 2014 that prevented deliveries from plying the capital’s roads. Manila Mayor Joseph Estrada, who imposed the expanded prohibition to address heavy traffic, lifted the ban in September 2014, but it was not until March last year that congestion eased
Piñol seeks extension of rice import restriction Manila Bulletin 19th Oct 2016
The Philippines’ farm minister is making a last-ditch appeal to his colleagues in the cabinet to postpone opening the country to higher rice imports next year, saying local farmers need more time to prepare to compete with cheaper grains.Bigas President Rodrigo Duterte’s economic team has decided not to seek another extension of the so-called quantitative restriction on rice imports, which is to be scrapped in June 2017 under an agreement with the World Trade Organization (WTO). Agriculture Secretary Emmanuel Piñol told a Senate public hearing on Monday he needed two years to help Filipino rice farmers prepare to compete with cheaper varieties produced by the country’s main suppliers, Vietnam and Thailand. Any move to lift the restriction would be welcomed by the two rice exporters Thailand and Vietnam, the main participants any time the Philippines issues tenders seeking the grain. Philippine economic officials say the cheaper imports would also bring down the retail costs of the country’s food staple.
New PH Customs order raises de minimis threshold to P10K from P10 PortCalls Asia 18th Oct 2016
Goods imported into the Philippines with de minimis value of P10,000 and below are no longer subject to duties and taxes based on a new Customs order. The order is contained inCustoms Administrative Order (CAO) No. 02-2016, signed by Customs commissioner Nicanor Faeldon and approved by Finance Secretary Carlos Dominguez dated September 28, 2016, which implements the de minimis provision of the Customs Modernization and Tariff Act (CMTA) or Republic Act No. 10863. Specifically, CAO 02-2016 implements CMTA’s Section 423, which states that no duties and taxes are to be collected on all importations with a free-on-board or free carrier value of P10,000 and below. This is a whopping 99,900% increase from the previous value of only P10. The order aims to minimize import costs and customs administration costs of clearing importations with de minimis value, without compromising customs border enforcement patrol; and seeks to adapt to the growing trend toward trade liberalization and facilitation and harmonize the country’s customs laws with different applicable international trade agreements. It also mandates the Secretary of Finance to adjust the de minimis value to reflect prevailing conditions using the consumer price index every three years following the CMTA effectivity.
PCCI submits 10-resolution wish list to Duterte PortCalls Asia 16th Oct 2016
The Philippine Chamber of Commerce and Industry (PCCI) submitted to President Rodrigo Duterte its proposed list of programs and policy reforms it hopes the current administration will act on. The list presented to Duterte during the 42nd Philippine Business Conference and Exhibition on October 13 highlights the group’s resolutions in 10 areas—transportation; ease of doing business; taxation; information and communications technology (ICT); energy and power; agriculture; industry; tourism; education; and micro, small and medium enterprises (MSME) financing. On transportation, PCCI is urging the transfer of accreditation and supervision of sea freight forwarders from the Department of Trade and Industry (DTI) to the Maritime Industry Authority (Marina) of the Department of Transportation (DOTr). This would place all freight forwarders under DoTr. (Airfreight forwarders are already under an attached agency of DoTr, the Civil Aeronautics Board.)
Draft order sets up rules on establishment of customs bonded warehouses in PH PortCalls Asia 16th Oct 2016
The recently released draft rules governing customs bonded warehouses (CBWs) and customs facilities and warehouses (CFWs) in the Philippines create clearer regulations on their establishment and operation. The draft customs administrative order (CAO)will implement certain provisions of Republic Act No. 10863 or the Customs Modernization and Tariff Act (CMTA). It covers all types of CBWs and CFWs listed in the CMTA as well as those that may be created by the Secretary of Finance upon recommendation of the Customs Commissioner. Stakeholders are invited to submit their position papers on October 20, the same day a public consultation on the draft order is to be held. Under CMTA, the CBWs for manufacturing and non-manufacturing purposes and the CFWs are classified separately. The types of CBWs include customs manufacturing bonded warehouses (CMBW), miscellaneous customs bonded warehouses, industry-specific bonded warehouses, bonded non-manufacturing warehouses, public bonded warehouses, and private bonded warehouses. CFWs include container yards, container freight stations, seaport warehouses, and airport warehouses.
Network versus illicit trade launched in Subic Freeport Business Mirror 16th Oct 2016
Representatives of various community sectors here formed on Thursday a grassroots network of volunteers to help fight illegal business activities in support of the Duterte administration’s drive against smuggling and counterfeit goods. The Federation of Philippine Industries (FPI) organized the network as a public-private partnership under the Fight Illicit Trade (Fight IT) Movement, which it had earlier established along its anti-illicit trade advocacy. FPI Chairman Jesus Arranza, who is also Fight IT lead convener, said the movement brings together volunteers from local government units, law-enforcement agencies, business chambers, educational institutions, civic organizations and other community groups to commit in the campaign against illicit trade.
Defense & Security
Duterte says open to joint patrols with Japan in South China Sea, as meeting with emperor is cancelled South China Morning Post 27th Oct 2016
Philippine President Rodrigo Duterte said on Thursday his country could join naval exercises with Japan in Philippine “territorial waters” in the South China Sea, but repeated there would be no more war games with long-time ally the United States and again gave vent to his anger against Washington. Duterte also said he had explained to Japanese Prime Minister Shinzo Abe in talks on Wednesday just why he resented the United States, reiterating that Washington treated the Philippines like “dogs on a leash” and lectured about human rights in connection with his domestic campaign against drugs. Asked if Japanese patrol vessels could take part in patrols in South China Sea waters off the Philippines, “Yes, within our territorial waters.” “If you want, we have no problem with that. I do not think China would stop us. Japan would just be going there and making a cruise. As a matter of fact, I also told them, they can also go near my territorial waters, and park there if you want.” Duterte thanked Japan for providing vessels to the Philippines to help it patrol its waters, including inland waters, especially light ones like rubber boats that provide greater mobility. Duterte’s recent comments pose a headache for Abe, who has tightened ties with Washington while building closer security relations with Manila and other Southeast Asian countries as a counterweight to a rising China, which has maritime feuds with several countries in the region including Japan.
Westmincom: No orders for US troops to pull out philstar.com 26th Oct 2016
There has been no withdrawal of US troops in this part of the region amid repeated comments by President Rodrigo Duterte that he wants American soldiers out of Mindanao. Lt. Gen. Mayoralgo dela Cruz, Western Mindanao Command (Westmincom), said the Armed Forces of the Philippines has yet to issue any order for the Americans, who are confined to an area in Camp Don Basilio Navarro, to leave. Duterte said Wednesday that he wants no foreign troops in the Philippines within the next two years. “They (US troops) are in their quarters. If there is [a] withdrawal, that will be announced immediately by the higher headquarters. We are just hosts to them, the decision is up to policymakers in the higher headquarters,” Dela Cruz said. Dela Cruz also confirmed that some US soldiers left the Philippines early this month as part of their regular rotation. He said a contingent from the US Marines left and was replaced by US Army personnel. “That is why when they left, they also brought with them their equipment,” Dela Cruz said of the pullout of US military equipment on Oct. 4. “In the absence of a decision from the higher headquarters, it’s business as usual,” Dela Cruz said. The US military regularly rotated troops through Mindanao from 2002 to 2012 under the US Special Operation Task Force-Philippines. They were invited back by the Philippine government to advise and assist the AFP against the Abu Sayyaf Group.
PH-Sino games ruled out Manila StandardToday 20th Oct 2016
President Rodrigo Duterte on Wednesday ruled out all joint military exercises with any superpower, be it the United States, China or Russia, to avoid further provocations in the South China Sea.“There will be no military alliances brought in. I am just saying that we are not interested in adding fuel in what is already a volatile world,” Duterte said. His latest statements seemed at odds with what he told Hong Kong-based Phoenix Television about being open to joint military exercises with China and Russia.Asked if he would consider joint military exercises with the two countries, Duterte said: “Yes, I will. I have given enough time for the Americans to play with the Filipino soldiers.”
Duterte to Chinese media questions useless’ war games with Washington Business World 19th Oct 2016
PRESIDENT Rodrigo R. Duterte in an interview with China Central Television (CCTV) questioned the benefits of conducting “useless” joint military exercises with a country that is “thousands of miles away” when the Asian superpower is just “next door.” In his interview conducted in Manila before this week’s state visits to Brunei and China and aired by CCTV on Wednesday, Mr. Duterte said he is “sincere” in strengthening ties with China, citing in part his Chinese roots.
Duterte says maritime dispute in agenda of state visit to China Business World 17th Oct 2016
PRESIDENT Rodrigo R. Duterte will take up the Philippines’ maritime dispute with China’s top officials during his visit on Oct. 18-21. But he said “no hard impositions” will be made while asserting the Philippines’ territorial claim. “I look forward to renewing the ties of friendship between the Philippines and China and to reaffirm the commitment to work closer to achieve shared goals for our countries and peoples,” Mr. Duterte said on Sunday at the Davao International Airport before leaving, first to Brunei Darussalam then to China. This is the first state visit of a Philippine president to Beijing since 2011,” he noted, adding that this “signals a key turning point in both our histories.” The Philippines, under the previous administration of Benigno S. C. Aquino III, brought the longstanding South China Sea dispute before an international tribunal, which ruled in its favor last July as Mr. Duterte was just beginning his administration. Mr. Duterte assured that he will “uphold the national interests of the Philippines” in the discussions and at the same time stress “cooperation and collaboration” on the “basis of sovereign equality, non-interference and mutual respect.” “We will talk and we will, maybe, paraphrase everything in the [arbitral] judgment and set the limits of our territories, the special economic zones,” he said. “It will be -- no bargaining there... It will remain a special concern and I will be very careful not to bargain anything for after all I cannot give what is not mine and which I am not empowered to do by any stretch of imagination,” he added. But he also said: “I will not bargain anywhere, we will continue to insist that is ours
Economics
Philippines prepares for TFA implementation Business World Online 29th Oct 2016
The Philippines is preparing for the implementation of the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA), which is expected to lower trading costs for local businesses once it enters into force. In a statement on Friday, the Department of Trade and Industry (DTI) said the Philippines has completed the ratification of the TFA and submitted its Instrument of Acceptance to the WTO in Geneva, Switzerland on October 27. The submission of the Instrument of Acceptance means the Philippines has fully complied with requirements with the agreement. However, the TFA has yet to enter into force, as the Philippines is only the 95th WTO member to accept the agreement. The deal will take effect once two-thirds of the WTO membership, or 110 out of 164 members, formally accept the agreement. “The Philippines finds great value on the implementation of the TFA -- not just for the big businesses -- but also for local micro, small and medium enterprises with the prospects of lowering trade costs and streamlining border procedures, which will enable them to participate more actively in international trade,” Trade Undersecretary Ceferino S. Rodolfo, Jr. was quoted as saying in the statement. A World Trade report released in October 2015 showed the implementation of the agreement has the potential to increase global merchandise exports by up to $1 trillion per annum. The said report also noted that developing countries will benefit significantly from the TFA, capturing more than half of the available gains.
Strengthen economic ties with US, gov’t urged Inquirer 26th Oct 2016
The influential Makati Business Club (MBC) welcomed the Duterte administration’s efforts to revitalize the country’s relationship with China, but stressed the need to maintain the Philippines’ strong and solid ties with the United States, particularly on the economic front. At the same time, the group also urged the government to involve the business community, experts, policymakers, the academe and even the youth as it pushes for a recalibration of the country’s independent foreign policy, the MBC said Tuesday.
Graft, infra lack make PH ‘less competitive’ The Standard 26th Oct 2016
THE Philippines’ overall competitiveness ranking in 2016-2017 went down by 10 notches to 57th from 47th out of 144 countries due to corruption and lack of infrastructure, according to a report released by the World Economic Forum. The WEF’s Global Competitiveness Report or GCR shows that, from 2012 to 2017, corruption, inefficient government bureaucracy and inadequate supply of infrastructure had become “constant problematic issues in doing business in the Philippines.” The Congressional Policy and Budget Research Department of the House of Representatives came out with the WEF report to guide lawmakers in policy making.
Philippines improves Doing Business rank Business World Online 26th Oct 2016
The Philippines climbed back into the first 100 of economies tracked by the 2017 World Bank-International Finance Corp. Doing Business report, the National Competitiveness Council (NCC) said in a statement e-mailed to journalists last night. The NCC said that the country climbed four notches, placing 99th -- at the lower half of 190 economies -- in the latest Doing Business report from 103rd out of 189 economies previously. NCC said that data were collected from February to May and that Quezon City was used to represent the Philippines. This is the 14th in a series of annual reports that comprehensively review regulations to see which countries are business friendly and which are not. The report covers the areas of starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. In the 2017 report that was to be released early this morning, NCC said that the Philippines progressed in four out of the 10 categories, namely: protecting minority investors jumped 18 spots (to 137th from 155th), dealing with construction permits moved up by 14 (to 85th from 99th), paying taxes increased by 11 (to 115th from 126th) and enforcing contracts which climbed four notches (to 136th from 140th). Declines were reported in four other areas, namely: getting credit slid nine spots (to 118th from 109th), starting a business inched down six (to 171st from 165th), getting electricity moved down three (to 22nd from 19th) while resolving insolvency edged down three rungs (to 56th from 53rd). There was no change in the remaining two areas of registering property and trading across borders for which the Philippines kept its 112nd and 95th slots, respectively.
PH bags $13.5B in deals Phil. Daily Inquirer 21st Oct 2016
For agreeing to return to the negotiating table to settle a dispute in the South China Sea, the Philippines is getting $9 billion in soft loans from China, part of $13.5 billion in deals signed during President Duterte’s visit to Beijing this week. Encouraged by the apparent success of his trip, Mr. Duterte announced his “separation” from the United States on Thursday, declaring it had “lost” and he had realigned with China. Addressing a group of Chinese and Filipino businessmen after his talks with Chinese President Xi Jinping, Mr. Duterte said relations with the United States had reached “checkmate.” “America has lost now,” Mr. Duterte said.
House approves P3.35-trillion 2017 budget ahead of schedule BusinessMirror 19th Oct 2016
The House of Representatives on Wednesday approved on third and final reading President Duterte’s proposed P3.35-trillion national budget for next year, weeks ahead of schedule. Deputy Speaker and PDP-Laban Rep. Ferdinand L. Hernandez of South Cotabato said the lower chamber approved the proposed 2017 General Appropriations Act (GAA) with 243 affirmative votes, five negative and one abstention. The 2017 GAA, or House Bill (HB) 3408, will be submitted to the Senate for its own deliberation.
Some European traders put off PH investments: ECCP ABS-CBN News 18th Oct 2016
A number of European companies have put off big ticket manufacturing investments in the Philippines, which could have brought in thousands of jobs, the European Chamber of Commerce of the Philippines (ECCP) said. The investors are hesitant to invest due to uncertainties stemming from local risk factors, ECCP president Guenter Taus said. "They said they'll hold on to their investments until they see a clear foreign policy of the government," he said. European companies doing business in the Philippines have also been finding it difficult to secure funding from their mother company in Europe to expand operations in the country, ECCP added. President Rodrigo Duterte had hit European Union after it criticized his administration's bloody war on drugs. ECCP however clarified that European companies are not yet pulling out from the Philippines. ECCP is optimistic the Philippine government can still address investors' worries. Red tape in starting a business is among investors' biggest concerns, ECCP said. The Department of Trade and Industry (DTI), meanwhile, has assured businessmen that the Duterte government is working on improving ease of doing business in the Philippines. The trade department has coordinated with the Securities and Exchange Commission and other related government agencies to streamline the processes of starting a business. The DTI and the National Competitiveness Council are also working to repeal close to 500 rules and regulations, mostly on customs procedure, that complicate doing business in the Philippines. It aims to shorten the process of applying for business permits and licenses to a maximum of two days.
Moody’s raises PHL growth forecast Business World 18th Oct 2016
“Although some uncertainty over the direction of policy has emerged, we expect economic and fiscal governance to be anchored by the administration’s well-defined development agenda,” Moody’s said in its Oct. 18 credit analysis on the Philippines. “In particular, an acceleration of infrastructure development and the passage of comprehensive tax reform would be credit positive.” Moody’s expects the Philippine economy to expand by 6.5% this year and in 2017, faster than its previous estimates of 6.2% and 6%, respectively, for those years. If realized, these would pick up from a 5.9% pace clocked in 2015.
Duterte seeks China business agreements Business World 17th Oct 2016
MANILA/HONG KONG -- Before he was elected President, Philippine leader Rodrigo R. Duterte promised to use a jet ski to reclaim a disputed reef seized by China. Since taking office in June, he has extended the hand of friendship. The tough-talking Mr. Duterte will bring up to 400 business leaders including some of the Philippines’s wealthiest tycoons on a four-day visit to Beijing starting on Tuesday. In doing so, he’ll become the first Philippine leader invited to the capital by Chinese President Xi Jinping for one-on-one talks.
Ports to absorb worst impact of regional headwind–S&P BusinessMirror 17th Oct 2016
THE ports sector in the Asia-Pacific region will suffer the strongest impact from the headwind of slowing economies in the region, Standard and Poor’s Ratings Services (S&P) said in its latest report. In the report “Asia-Pacific Sector Outlook 4Q 2016: Net Negative Outlook Bias Rises to 13 percent from 11 percent,” S&P said that, across the region, the ports sector is facing the strongest headwind with softening GDP growth and potential short-term impact from the recent bankruptcy filing of South Korean cargo liner Hanjin Shipping. S&P said shipping ports are faring the worst because of weak volume growth.
Diokno, Lopez allay fears of economic fallout from US, EU BusinessMirror 17th Oct 2016
TWO economic managers have allayed fears raised by a lawmaker that President Duterte’s rhetoric against foreign partners will lead to an economic fallout, assuring that the economy has the necessary “safety nets” in place to weather impact from foreign economies. Following Senate President Pro Tempore Franklin M. Drilon’s urging to equip the economy with safety nets, should there be a fallout with top trading partners, the heads of the Department of Trade and Industry (DTI) and the Department of Budget and Management (DBM) quickly dispelled notions of any economic downturn.
Cua: Proposed tax hike on cars partly due to traffic crisis PhilStar 17th Oct 2016
MANILA, Philippines -- A proposal to increase excise taxes on vehicles partly because of the traffic crisis in Metro Manila, according to House Ways and Means Committee Chairman Dakila Cua. "May proposal nga po na dagdagan ng excise on vehicles, so that is, in part, a reaction also to the traffic crisis," Quirino Rep. Cua said during a press briefing on Monday afternoon. Albay Rep. Edcel Lagman, who opposes the proposed increase, said earlier this month that the proposal will raise to the excise tax for automobiles priced below P600,000 to five percent from two percent. Excise taxes on vehicles sold for from P600,000 to P1.1 million will be 20 percent while vehicles priced between P1.1 million to P2.1 million will be taxed 40 percent. Vehicles selling beyond P2.1 million will be subject to a 60-percent excise tax.
I will protect you,’ Duterte tells business BusinessWorld 14th Oct 2016
THE COUNTRY’s biggest business chamber yesterday dusted off its wish list and presented it to President Rodrigo R. Duterte, who in turn appeared to hit the right notes as he pledged to improve peace and order and rid the government of corruption.
Energy
Indonesia to resume some coal shipments to Philippines amid piracy concerns Reuters Africa 30th Oct 2016
Indonesia will resume some shipments of coal to the Philippines, a government official said on Sunday, after a months-long halt due to concerns about piracy in seas between the two archipelagos. Indonesia earlier this year slapped a moratorium on coal shipments to its neighbour after a string of hijackings by militants based in the southern Philippines, in which several Indonesian sailors were taken hostage. Only ships with a capacity of over 500 tonnes will be allowed to resume sailing while smaller vessels and tugboats are still banned. "For safety and security reasons ... all ships must sail in the recommended corridors and avoid conflict areas or waters (around) the southern Philippines and east Malaysia," Transportation Ministry official Tonny Budiono said.
President Duterte switches on DOE electrification projects in ARMM Northbound Philippines News Online 29th Oct 2016
MANILA — The Duterte administration is accelerating the electrification of the provinces comprising the Autonomous Region in Muslim Mindanao (ARMM) as part of its peace and development efforts in Southern Philippines. President Rodrigo R. Duterte and Department of Energy (DOE) Secretary Alfonso G. Cusi on Saturday led the ceremonial switch-on of electrification projects of the DOE and the National Electrification Administration (NEA) held at the ARMM Regional Government Compound in Cotabato City.
PXP Energy optimistic after China visit The Standard 26th Oct 2016
President Rodrigo Duterte’s recent visit to China has given PXP Energy Corp., formerly Philex Petroleum Corp., a ray of hope to explore its oil and gas asset in the disputed West Philippine Sea. PXP Energy chairman Manuel Pangilinan told reporters the company was optimistic on the government’s recent alliance with China. The Energy Department has suspended service contract 72 at the Recto Bank following the territorial dispute with China over certain islands in the area. “It’s (service contract) suspended so on that basis, … we cannot undertake any activities in the area without DeE consent. Our work for them is also suspended. We will not explore until the government lifts the suspension,” Pangilinan said.
Emerging LNG markets - the Philippines LNG World Shipping 24th Oct 2016
The Philippines does not yet import LNG but will have to satisfy a projected power-demand growth of 60 per cent by 2030. Karen Thomas looks at the opportunities and challenges ahead for this nation of islands and asks Manila-based Atlantic Gulf & Pacific (AG&P) about its LNG ambitions. Like many emerging economies in Asia, the Philippines faces an ever greater challenge to supply power to support its economic growth. This country of 100 million people has the added challenge of delivering electricity to remote communities spread across more than 7,000 islands. Demand for power in the Philippines is set to grow by 60 per cent by 2030, to 29,330MW, with an expected shortfall in power generation and transmission of 10,000-13,000MW that will require private sector investment of some US$25 billion.
AC doubling outlay for energy projects Inquirer 20th Oct 2016
Ayala-led AC Energy Holdings Inc. plans to almost double its investments in power projects to nearly P80 billion, as it seeks to expand its presence in the energy sector here and abroad. AC Energy president and CEO Eric T. Francia said the company had initially committed to spend P40 billion for existing projects with partners. Another P40 billion may be invested over the next five years in new projects that will double the company’s attributable capacity to 2,000 megawatts by 2020. AC Energy announced this new energy development goal after breaching its 1,000-MW capacity target this year. According to Francia, the doubling of its capacity can come from the expansion of existing facilities as well as from new partnerships and acquisitions.
Lopez to keep protected areas off limits to mining Business Mirror 18th Oct 2016
Environment Secretary Regina Paz L. Lopez has placed all permits issued to mining operations in so-called protected areas (PAs) under review, as she vowed to make sure miners will be kept out of biodiversity sites under her watch. Lopez also ordered the Department of Environment and Natural Resources (DENR) to conduct an inventory of PAs already threatened by mining activities. Lopez wants to review the mining permits issued before and after their declaration as PAs covered under the National Integrated Protected Areas (Nipas) Act, underscoring the importance of protecting and conserving the country’s rich biodiversity. Lopez made the policy pronouncement as she announced on Friday the cancellation of the environmental compliance certificate (ECC) of Austral-Asia Mining Corp. for its nickel mine in Mati, Davao Oriental. Austral-Asia’s nickel mine is situated between two heritage sites—the Pujada Bay and Mount Hamiguitan.
AboitizPower explores more opportunities in energy sector PhilStar 17th Oct 2016
MANILA, Philippines - With ongoing projects and pending acquisitions in its plate, Aboitiz Power Corp. is keeping its eyes peeled for opportunities in the power sector despite perceived oversupply in the country in the next five years, its top official said. The company continues to watch out for upcoming opportunities for acquisitions and new power projects in the country, AboitizPower president and COO Antonio Moraza said in an informal media roundtable with reporters. “Any power assets become available in the Philippines, we will look at it,” he said.
First Gen eyes Meralco contract for Batangas plant PhilStar 17th Oct 2016
MANILA, Philippines - First Gen Corp. is looking to land a contract to supply Manila Electric Co. (Meralco) with mid-merit capacity from its latest natural gas power plant in Batangas to fully cover the requirements of the country’s largest power distributor. The company is looking to contract the capacity of its 414-megawatt (MW) San Gabriel plant to Meralco, First Gen president and COO Giles Puno said. “They came out with the competitive selection process. We will have to go through CSP. They mentioned 300 MW, purely mid merit,” he said.
Meralco, Blue Energy to develop small hydro in Philippines Hydro World 17th Oct 2016
Filipino utility Manila Electric Co. and Blue Energy Holdings & Management Corp. have established a joint venture for the purpose of developing small hydroelectric projects in the Philippines. According to a notice filed with the Philippines stock exchange this week, Manila Electric (Meralco) and Blue Energy have signed a shareholders' agreement worth about US$644,000 that will see Blue Energy take a one-share majority ownership of the joint venture. The companies have not specified what proposals, if any, are already in development under terms of the agreement, but does say they partners will "pursue and undertake the development of various hydroelectric power projects."
China and the Philippines could ink oil exploration deal in South China Sea CNBC 21st Oct 2016
China and the Philippines could begin exploiting long-untapped energy reserves in the South China Sea, according to reports coming out of this week's meeting between Filipino President Rodrigo Duterte and high-ranking Chinese officials — including a Thursday sit-down with Chinese President Xi Jinping — in Beijing. How soon that may happen remains unclear, however, as Duterte cautioned reporters that he has not been empowered by his Congress to finalize any energy exploration deal with his Chinese counterparts. Earlier reports by Philippine newspaper the "Inquirer" suggested that Beijing and Duterte were set to enter into an agreement to explore for energy sources in a part of the South China Sea close to the Philippine coastline. China has long sought to exploit what it believes could be more than 100 billion barrels of oil and hundreds of trillions of cubic feet of natural gas lurking beneath the South China Sea. However, a litany of overlapping territorial claims in the region by the more than half-dozen nations rimming the South China Sea has rendered broad energy development there a nonstarter. The fact that potential joint development of offshore energy deposits in the region is even being discussed underscores the tectonic shift in regional foreign policy undertaken by Duterte since winning the Filipino presidency in May. The U.S. Geological Survey estimates the South China Sea region holds reserves of some 11 billion barrels of oil and 190 trillion cubic feet of natural gas. China National Offshore Oil — the state-owned energy company responsible for offshore energy exploitation — provides a much rosier estimate, predicting the region holds some 125 billion barrels of oil and 500 trillion cubic feet of natural gas.
Senate body seeks abolition of PNOC-RC Business MIrror 17th Oct 2016
THE chairman of the Senate Committee on Energy wants to abolish the Philippine National Oil Co. Renewables Corp. (PNOC-RC) because it is just “another layer of inefficiency.” “I was questioning the intention of PNOC-RC to go into renewables because, without them, the renewable sector is already flourishing. If you ask me, there’s no need for the government to go into the renewables sector. I think the private sector is doing fine without government intervention. In fact, ang dami dami nga at nakapila pa ngayon na walang FiT (feed-in tariff]. So, I don’t see any rationale,” Sen. Sherwin T. Gatchalian said.
Senators press D.O.E. for backup energy source BusinessMirror 16th Oct 2016
Senators are keen on securing firm assurances from the Department of Energy (DoE) that alternative sources of energy are being lined up to provide sufficient power stock once the Malampaya gas field supplying 40 percent of the Luzon grid dries up. “We should,” Majority Leader Vicente C. Sotto III said, when asked if the Senate is seeking a briefing from the DoE and other stakeholders amid projections that Malampaya field is running out in 10 years. The urgency for the government to address the issue was recently raised by Supreme Court Justice Antonio T. Carpio, citing the need to scout for alternative sources of energy, such as the Reed Bank that China is blocking. Sotto confirmed over the weekend he would ask the Senate Energy Committee, chaired by Sen. Sherwin T. Gatchalian, to look into the matter. Senate President Aquilino L. Pimentel III also acknowledged “it is already well known that the Malampaya supply is about to go dry.” But he did not respond to a query on whether senators were already given firm assurance that clear alternative sources are now being pursued by the Duterte administration.
ECCs of 800 projects across industries face intense audit Manila Bulletin 14th Oct 2016
As much as 800 projects from across different industries — be it from the infrastructure sector, manufacturing, or power — will undergo scrutiny as the government sets an “intense” evaluation on all existing environmental clearances. “There are 800 ECCs and we are going to evaluate all of them. We are coming up with an ECC audit,” said Environment and Natural Resources Secretary Gina Lopez in an interview with reporters Friday. “We are going to categorize all the projects by sector,” Lopez added. As she announced this comprehensive review of the environmental compliance certificates (ECC) granted to 800 projects across domestic industries, the DENR suspended the ECC of Austral-Asia Link Mining Corp. for its mining operation in Davao Oriental as well as that of Century Communities Corp.’s, which has a housing project inside the La Mesa Eco Park. Lopez vowed to take back the ECCs earlier granted to “environmentally critical” projects in the country. Withdrawal of the ECC will prevent any company from continuing its operations or its certain projects. As for when the audit will start, the DENR has yet to set a target date.
Philippines minister wants to ban new mines as clampdown deepens Reuters 14th Oct 2016
The Philippines' mining minister wants to prolong a ban on new mines and will review all environmental permits previously granted to the minerals industry, ramping up a campaign to clamp down on damage from the sector in the Southeast Asian nation. Miners criticized the proposals made on Friday by Environment and Natural Resources Secretary Regina Lopez, saying she seemed determined to put the "industry to sleep". The Philippines is the world's top nickel ore supplier and an environmental audit that has halted a quarter of its 41 mines, and the risk that 20 more maybe shuttered has spurred a rally in global nickel prices. Lopez, a committed environmentalist who has described open-pit mining as "madness", said she wanted to continue a ban put in place by a previous government in 2012, dashing industry hopes that some restrictions may be lifted following the audit that finished in August. Lopez also said her agency would review around 800 environmental compliance certificates (ECC) including those granted to mines. That would come on top of the industry audit that led to the current mine suspensions.
Financial Services
Banking system remains ‘sound, stable,’ BSP says Inquirer 26th Oct 2016
Continuing reforms in the banking sector have led to a domestic financial system that remained “sound and stable” in the first half, the Bangko Sentral ng Pilipinas said Tuesday. “With the banking system at its core, the financial system continued to provide needed funding to a growing economy” during the first semester, the BSP said in a statement. The Philippine economy grew by 6.9 percent in the first half, among the fastest in the region.
BSP seen to finally raise rates next year PhilStar 24th Oct 2016
MANILA, Philippines – Nomura Securities Co. Ltd. sees the policy stance of the Bangko Sentral ng Pilipinas (BSP) turning hawkish in the first half of next year amid rising inflation. In a special report titled “Philippines: Beyond words,” Nomura said the BSP is likely to hike key policy rates by 50 basis points in the first semester after holding rates this year. It pointed out the Philippines is the only central bank in Asia that would likely tweak interest rates next year. Nomura explained BSP remains firmly an inflation targeting central bank and places a lot of emphasis on preserving its inflation-fighting credentials relative to other regional central banks with the same mandate.
Citibank Philippines launches Voice Biometrics for phone banking clients InterAksyon.com 17th Oct 2016
In a fast-paced world where every second matters and where people don’t want to be stuck in traffic, efficient and quick delivery of services are a premium. Perhaps one of the services that urban dwellers want to keep short yet efficient are phone banking transactions. In line with this, Citi Philippines recently launched Voice Biometrics, which enables clients to let their voice be their passwords—cutting the time spent for the verification process during transactions. Citi Philippines CEO Aftad Ahmed said in a press conference held at Shangri-La Makati, “What is Voice Biometrics? Your voice will help identify you because it eliminates the need to go through a series of identifier questions. Today, when you call up and use the voice banking channel, you’re asked anywhere from three to five questions. That takes approximately 45 seconds. Through Voice Biometrics, the system can recognize you in 10 seconds. It’s four times faster.”
Two more Taiwanese banks to enter PHL mart Business World 17th Oct 2016
Dr. Gary Song-Huann Lin, head of the Taipei Economic and Cultural Office in the Philippines, declined to name the banks but confirmed that the lenders might open by end-2016 or the first half of 2017. “There would be two more to have official opening soon, now they are testing their operations in here. I cannot announce on their behalf but I believe very soon, maybe a few months from now...,” he said. “[M]ight be before the end of this year or the first half of next year, they’re just trying to prepare to make operations, so very soon, I believe,” Taiwan’s chief representative to Manila said during the opening of Yuanta Savings Bank here on Monday night. So far, the Philippine central bank has approved the entry of eight new lenders since the passage of Republic Act (RA) 10641 or an Act Allowing the Full Entry of Foreign Banks in the Philippines in July 2014, which opened up the sector to more offshore players. Three of them were Taiwan-based lenders -- Cathay United Bank and Yuanta Commercial Bank Co. Ltd., and most recently, First Commercial Bank.
Food & Agriculture
Government reformats NFA role PhilStar 25th Oct 2016
MANILA, Philippines - The National Food Authority (NFA) will be converted into a regulatory body that will not interfere in the market, according to Agriculture Secretary Emmanuel Piñol. Piñol said this was discussed in several Cabinet meetings already. “It is not really dismantling the NFA… If it does not function to stabilize the prices, then it should become a regulatory body. This is not to abolish it but to reformat,” Piñol said during a briefing in Malacañang yesterday. Piñol said the idea was introduced by Cabinet Secretary Leoncio Evasco Jr. who explained that given NFA’s limited funds, it could only buy about five percent of the farmers’ produce. This limitation led to the agency’s failure to command the pricing of rice and corn in the market.
PHL, other ASEAN members unite for soil and nutrient management Manila Bulletin 24th Oct 2016
MANILA — The Philippines has reiterated its support for an agreement relating to ASEAN sustainable agri-food systems project which seeks for policies and strategies for soil and nutrient management. Department of Agriculture (DA) Secretary Emmanuel F. Piñol said the Duterte administration considered policy framework on the best use of agricultural lands in the country as top priority. “DA subscribes to the key issue that the health of soil, the crops, the livestock, and the communities are one and indivisible,” Piñol said in a message delivered for him by Director for Operations Roy Abaya during the 5th Meeting of ASEAN Soil and Nutrient Management Expert Group for ASEAN Guidelines on Soil and Nutrient Management this week.
Agri group: Import cap on rice failed to protect Philippines’ farmers Inquirer 24th Oct 2016
Farmer groups and agribusiness operators are in favor of letting the import restriction on rice lapse by mid-2017, saying this has been useless in curbing the influx of grains from abroad anyway. The Samahang Industriya ng Agrikultura (Sinag) said protection of the domestic rice industry remained only on paper as the Philippines has been importing more than the minimum volume the country had committed to under a World Trade Organization (WTO) mechanism. Under the quantitative restriction (QR) mechanism of the WTO, a country is allowed to limit the volume of required imports instead of a total ban on importation.
Fruit exporters prepare for China shift Inquirer 24th Oct 2016
The Philippines has started undertaking necessary steps to comply with the stringent quarantine rules being imposed by China, as local exporters seek to restore their shipments of fresh fruits to this huge market. These rules, or the nontariff measures, comprised of improved packaging system and other additional requirements. These would be on top of the standard sanitary and phytosanitary (SPS) measures, the Philippine Exporters Confederation Inc. (Philexport) said on Friday. Compliance to these rules has become more relevant as China last week lifted the ban on 20 Philippine banana and six mango exporters—a move seen boosting trade between the two countries. Exports to China hit $6 billion last year, but this market is seen to offer an even higher growth potential as better relations ensue.
Raising funds for farmers via crowdsourcing Inquirer 19th Oct 2016
A newly formed millennial team is now making waves in the field of agribusiness with the objective of helping uplift the lives of Filipino farmers. Cropital, the team founded by Ruel Amparo, Rachel de Villa and Everett Ubiadas, is a crowdfunding startup that seeks to generate funds from both domestic and international sources for lending to Filipino farmers. With a capital of less than P10,000, representing portion of the prize money from a competition they won, members of the team launched in November last year Cropital and its crowdfunding platform. It did a pilot run in Bulacan that covered five hectares of farmland.
DOF wants private sector role in rice importation Inquirer 18th Oct 2016
The Department of Finance (DOF) has thrown its support to plans of imposing a tariff on rice imports, saying this was more beneficial to the rice sector readying to become an open market. At the Senate agriculture and food committee hearing on Monday, state-run think tank Philippine Institute of Development Studies (Pids) urged a shift from the current quantitative restriction (QR) regime, which puts a quota on imports. Pids research fellow Lovely Ann C. Tolin recommended slapping a 35-percent tariff on imported rice after the QR lapses in July next year. Tolin also urged providing a funding support for farmers, which could be sourced from the tariff collection.
PHL halal-certified producers bet on global market potential BusinessMirror 18th Oct 2016
To meet the rising demand from the country and abroad, a fast-growing number of Philippine companies seek the halal certification of their products from local certifying bodies recognized internationally. Halal means the product does not contain any derivatives not permitted by Shari’ah law. The accreditation confirms that the stringent halal-certification requirements are fulfilled. Philippine halal suppliers offer products under these food segments: Cereal, carrageenan and other food additives, beverage, bakery, grain, chemical, confectionary, beauty and cosmetic, egg, edible fungus, flour and starch, food supplement, gelatin, ice cream and dairy, ink and packaging material, noodle and pasta, nut, oil and coconut by-product, poultry, meat and meat shop, processed fruit, meat, vegetable and seafood, fresh and frozen food, sauce and condiment, candy, sugar product and sweetener, soya, syrup, toll packer and toll manufacturer, snack, processing aid, biscuit, pickled seaweed and drinking-water treatment.
Banana industry losing global edge PhilStar 17th Oct 2016
MANILA, Philippines - Amid rebel attacks and lack of government support, banana stakeholders said the billion-dollar local industry is losing its competitive edge as it slips in rank among the largest banana exporting countries globally. The Pilipino Banana Growers and Exporters Association (PBGEA) said the comparative advantage and competitiveness of the Philippines in banana production are slowly eroding. Based on a recent United Nations Conference on Trade and Development report, Costa Rica has overtaken the Philippines as the number two largest banana exporting country. The Philippines used to be the second largest producer of bananas worldwide, next to Ecuador, which supplies 95 percent of the total banana demand in the Asian market.
Agri, real estate to suffer from land conversion ban PhilStar 17th Oct 2016
MANILA, Philippines - Agriculture productivity and real estate development could suffer if the proposed two-year moratorium on land conversion pushes through. According to a position paper signed by economic managers and Vice President Leni Robredo and submitted by the National Economic and Development Authority (NEDA) to Malacañang, the ban could derail efforts to revitalize the agriculture sector because it may limit the expansion of manufacturing and processing activities tied to farming. “Paradoxically, agriculture sector revitalization may suffer under this proposed policy,” the paper stated.
US readies 2nd MCC compact for PH agri Manila Bulletin 23rd Oct 2016
Despite unsavory rhetoric by President Duterte against the United States, the country’s long-time ally instead turned the other cheek as it readies a grant that will help develop the Philippine agriculture, a key component of the government’s 10-Point Economic Agenda. A statement to the media by the Philippine Embassy in Washington D.C. said that officials of the Millennium Challenge Corporation. (MCC) and Philippine government officials discussed the second compact program and its relevance to improving Philippine agriculture at a recent forum on World Food Prize in Iowa. MCC is an independent U.S. Government foreign aid agency. Earlier this year, the Philippine government completed the first 5-year compact, a $433-million MCC program focused on road rehabilitation, community development, and revenue administration reform. The second compact, now under development, is proposed to focus on increasing the competitiveness of the agricultural sector.
Brunei enlisted to boost credibility of PHL’s halal certification system Business World Online 19th Oct 2016
President Rodrigo R. Duterte’s Brunei visit will generate assistance from the Sultanate’s government in the area of halal food certification, helping Philippine producers tap a world market estimated to be worth trillions of dollars, officials said. Following bilateral meetings with his counterpart in Brunei, Trade Secretary Ramon M. Lopez on Monday said the Sultanate will help the Philippines explore the world market for food prepared according to Islamic dietary rules. Although the Philippines has its own halal certification, Mr. Lopez said in a news conference in Brunei that “we need (to reinforce) the credibility of the certification procedure so that we can really export halal products.” He added: “It was a great discussion with respect to really exploring the immense opportunities in developing halal products. As you know, the estimated halal market... is about two trillion dollars. And we all know the expertise of Brunei with respect to halal certification.” Mr. Lopez added that the two state plan to revive the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) in order to strengthen the flow of trade with Brunei and other member countries.
Farmer's group accuses Robredo of lawyering for land developers Business Mirror 16th Oct 2016
THE Kilusang Magbubukid ng Pilipinas (KMP) has accused Vice President Maria Leonor G. Robredo of lawyering for big property developers associated with the Aquino administration by opposing the two-year ban on land-use conversion of farms. KMP said the ban has already been approved by the Presidential Agrarian Reform Council (PARC), but property developers have apparently secured succor from Robredo. “Government housing projects can be built on nonagricultural lands. It is plain senseless to pit the people’s right to housing and shelter against the right to land and food security.
Health & Life Sciences
2 Zika cases reported in Cavite philstar.com 29th Oct 2016
Two more cases of Zika virus have been reported in the Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) region, bringing to 19 the total number of cases of the mosquito-borne disease in the country. Health Undersecretary Gerardo Bayugo yesterday said the two new Zika cases both came from Cavite, but the Department of Health (DOH) is still verifying if they are relatives. “We received the report from the hospital where they were admitted. But they have been discharged and are now at home,” Bayugo noted. He said based on initial information, one of the patients is a 12-year-old boy while the other is a woman in her 40s. The DOH gathered only sketchy reports on the latest Zika cases, but Bayugo said they opted to immediately release the information to protect the residents of Cavite. Of the total 19 cases, Bayugo said 12 were from Western Visayas, three from the National Capital Region, three in Calabarzon and one in Central Visayas. “All the cases did not have a history of travel to Zika-affected countries and thus confirmed to be locally acquired,” Bayugo said. He, however, assured the public that the government is undertaking efforts to prevent the spread of the disease. He said the DOH has provided the Research Institute of Tropical Medicine (RITM) P16.5 million for the purchase of testing kits and vector surveillance materials.
Dengue cases up 200%, says Antique health office Manila Bulletin 25th Oct 2016
Dengue cases had risen by 200% in Antique, said Information Officer Irene R. Dulduco of the Integrated Provincial Health Office-Antique (IPHO), thus, she appealed to the residents here to be on the alert and diligently do the ABKD (Abakada) program initiated by the Department of Interior and Local Government (DILG). In Culasi town alone, she stressed, there were eight cases in 2015 but this 2016, it rose up to 55 cases. The ABKD program, which is the acronym for Aksyon Barangay Kontra Dengue, is also a three-fold program of the DILG, Department of Health (DOH) and the Department of Science and Technology (DOST). It was launched in 2011 when dengue cases became so rampant in the country. It should be done vigilantly now, because aside from dengue, there is also the zika virus that is also getting into the picture, said Dulduco.
Drug war shifts to phase two as public health issue – Presidential spokesman CNN 25th Oct 2016
The country's controversial war on drugs shifts to stage two, where it is tackled as a public health issue, a palace official said. The first phase of the drug war was creating awareness among Filipinos regarding the extent of the illegal drug problem, Presidential Spokesman Ernesto Abella said on CNN Philippines "The Source" on Tuesday. He added that 97 percent of barangays in the country have been infiltrated by illegal drugs. "Having created enough attention, enough awareness about it, we will now enter the second phase of the drug situation," Abella said. "It's now shifted from a national security issue more into a public health issue."
Tobacco products to carry graphic health warnings starting Nov. 4 Balita 24th Oct 2016
Beginning Nov. 4, all tobacco products being manufactured and imported for sale in the Philippines must contain graphic health warnings in compliance with Republic Act No. 10643. “This means that cigarette packs must carry graphic health warnings and products with text only warnings are no longer allowed to be sold anywhere in the country,” Emer Rojas, president of the New Vois Association of the Philippines (NVAP) and a throat cancer survivor, said during a press briefing held in Quezon City Wednesday. Ratified in July 2014, RA 10643 mandates that all tobacco products being sold in the country carry graphic health warnings in the lower portion of the cigarette packs, covering at least 50 percent of both sides of the packages.
Science chief pushes for patent increase in PHL Business Mirror 18th Oct 2016
IN order to boost the country’s position in the Global Competitiveness Index through increased local patent filings, Science Secretary Mario Montejo opens the Department of Science and Technology (DOST) for partnership with patent professionals. “We are targeting 100 patent filings this year,” Montejo explained on DOST’s move to tap patent professionals to beef up the department’s patent applications. “The partnership will also pave the way for better assistance to local inventors,” he added. Such partnership is in consonance with Montejo’s drive to hasten Technology Application and Promotion Institute (Tapi)-assisted patent applications in the country and to cater to both DOST-assisted technologies, as well as private inventors. Montejo himself was an award-winning inventor before his stint as DOST secretary. Thus, DOST’s Tapi partnered with the Association of PAQE Professionals Inc. (APP) through a memorandum of agreement (MOA) signed on September 16.Engr. Edgar I. Garcia, director of Tapi, is optimistic that through the collaboration, Tapi will be able to meet its patenting targets and be able to assist local inventors obtain patent grants. These areas need special attention as the country’s patenting statistics show very few local filings by Filipinos compared with foreign-based patent applications. Tapi is mandated by Executive Order 128 to promote technology commercialization of the DOST, and by Republic Act 7459 to assist local inventors. The MOA, signed by Garcia and lawyer Bayani B. Loste, APP president, said that APP members will serve as patent agents of Tapi-financed patent applications.
PIA | Philippines to establish Asian Halal Center in Mindanao Philippine Information Agency 17th Oct 2016
“Mindanao is positioned to be the manufacturing base for export-quality Halal products in the country. With Asian Halal Center, we expect to attract more locators and enhance our country’s position as the Halal industrial hub in the region,” said DTI Secretary Ramon M. Lopez. The Asian Halal Center is expected to be a home for the production and processing of halal goods for the Islam-dominant region and is targeting small and medium scale locators that will cater to the estimated $2.6 trillion global Halal market. At present, the center expects to locate 14 prospective locators that will lease the center’s facilities. “The growing Halal market worldwide is a potential sector especially for our micro and small entrepreneurs. In the Philippines alone, we have an estimated population of 9.62 million Filipino Muslim. We need to urge them to seize this opportunity and tap the growing sector,” emphasized DTI Industry Promotion Group Undersecretary Nora K. Terrado. According to a report on the State of the Global Islamic Economy 2014-2015 published by Thomson Reuters, total Halal food market reached $1,292 billion in 2013 and is expected to grow by $2,536 billion in 2019 with 12% CAGR Growth (2013-2019). Halal is a Qur’anic term that means permitted, allowed or lawful. At present, Halal is used in relation to food and other consumer goods that have undergone certification as permissible for consumption and use by Muslims. DTI, as the lead agency of the Philippine Halal Board, highlighted its effort of increasing the awareness of the availability, quality, and integrity of the Halal products in the country. After the signing of Republic Act 10817 or commonly known as the Halal Export Development and Promotion Act last May 2016, the department is taking the lead in convening dialogues and initiatives in promoting the said sector. Moreover, with the establishment of the first Asian Halal Center, ZAMBOECOZONE continues to position itself as the Halal processing and manufacturing hub in the Philippines as declared in a memorandum of agreement between the ZAMBOECOZONE and the National Commission on Muslim Filipinos (NCMF) on February 2015. The Philippine Halal Board, with DTI Secretary Lopez as the Chairman, was convened last September 19. The board is composed of members from nine (9) government agencies including the Departments of Agriculture, Health, Science and Technology, Tourism, Foreign Affairs, the Bangko Sentral ng Pilipinas, Mindanao Development Authority, the National Commission on Muslim Filipinos, and two (2) Filipino Muslim professionals who have yet to be appointed by the President. (DTI)
PH readies for the $2.6T global halal market Manila Bulletin 17th Oct 2016
The Philippine will align its accreditation systems and institutions that will issue Halal certifications to the country’s products for the $2.6 trillion global halal export market. Trade and Industry Secretary Ramon Lopez said this after the launch of the Halal Board under the Philippine Halal Export Development and Promotion Act of 2016. Lopez said the Board will develop comprehensive set of strategies and programs, targets and policies even on Halal certification and accreditation. Lopez said a technical working group has been formed to craft the implementing rules and regulations of the law. Consultations are expected in October and November, he said. “This is exciting since Halal has huge market 2 billion Muslim population and about 10 million in the Philippines,” he said. Lopez cited the about $2.6 trillion market for halal products, growing to $10 trillion by 2030. “It has become lifestyle products associated with healthy and quality attributes. One of fastest growing consumer segments,” he said. Halal does not only apply to food but also cosmetics, toiletries, pharmaceutical products herbal, and health care hotels restaurants wellness centers, medical tourism, financials services, supermarkets and warehouses. The DTI is vice-chair of the national commission on Muslim Filipinos. Commission members include Department of Agriculture, Department of Health, Department of Science and Technology, Department of Foreign Affairs, Department of tourism, Bangko Sentral ng Pilipinas, Mindanao Development Authority, and two Muslim Filipino professionals.
Health Dept. backs cigarette tax hike Manila Bulletin 16th Oct 2016
The Department of Health (DOH) has thrown its support behind a proposal of the Department of Finance (DOF) to raise the tax rate for cigarette products by 2018, saying that the move would be a big help in putting cigarettes out of reach of most consumers. Health Secretary Paulyn Ubial said that raising the tax rate was part of the overall strategy of the sin tax law, as she noted that the Philippines was one of the countries still with the lowest priced cigarettes.
DOH’s mental health program boosted with P220M, AO Phil Daily Inquirer 14th Oct 2016
Health Secretary Paulyn Ubial on Thursday signed an administrative order (AO) on the implementation of the agency’s mental health program even as its budget for 2017 has been increased to P220 million. “It contains a comprehensive framework of how the mental health program will be implemented at all levels of the health system, like health rural unit, the barangay health station, and even in the community: How it will be implemented, who will be in charge, and what strategies and activities will happen at the community level,” Ubial told reporters on the sidelines of the 2nd Public Health Convention on Mental Health.
VP urges leaders: Healthcare for all; go beyond medical missions INQUIRER.net 14th Oct 2016
In delivering crucial health services, it’s time for Filipino leaders to “go beyond medical missions and paying for hospital bills,” Vice President Leni Robredo said on Friday. Instead, they must start to establish “a key vision for change and to be health ambassadors so [their] constituents develop co-ownership of health programs” and to institute reforms attacking the crux of health inequities, she said. “It’s not about how many medical missions are done; it is not about how many packets of medicine are delivered; it’s not about who gets the credit… it is about about whether we are truly transforming lives,” Robredo said. “Ultimately you must be committed to provide health services to all, especially the poor,” Robredo said at a forum about the emergence of Moro leaders as health champions in the Autonomous Region in Muslim Mindanao (ARMM). Robredo stressed the importance of good governance in helping the people of the ARMM rise above their station, noting that the region is among the most impoverished in the country as a result of strife and lack of development. The former Camarines Sur congresswoman appeared in a colloquium organized by Zuellig Family Foundation in cooperation with the United States Agency for International Development (USAID) at Heritage Hotel. Speaking at the same event, US Ambassador to the Philippines Philip Goldberg cited the importance of strengthening institutions in order to achieve universal health care. From 2012 to 2016, “USAID is contributing more than P3 billion in Mindanao and ARMM, with PP500 million specifically allocated for health activities,” the American diplomat said. “Global evidence has shown that lasting peace and development can only be attained when institutions responsible for maintaining the economic, health and social standards of a country are transparent, strong and resilient,” he said. Goldberg said the US government had long supported economic growth in Mindanao and would continue to do so, in partnership with the Philippine government. “Currently we have a comprehensive program that supports efforts to improve peace and stability in focused areas in Central Mindanao and Sulu archipelago,” he said. “In addition to health interventions, this program seeks to promote peace and security, increase equitable access to education, improve access to clean water and improve environmental resiliency,” Goldberg said. Robredo and Goldberg congratulated Zuellig on the culmination of its “health change model” in the ARMM that sought to transform how local leaders respond to the health needs of their constituents. Begun in 2008, the foundation now has 39 partner municipalities, or a third of the region’s 116./rga RELATED STORIES
ICT
BPO group cites a lot of interest’ despite Duterte’s anti-US outbursts Business World Online 1st Nov 2016
The country’s business process outsourcing (BPO) industry has yet to feel the sting of President Rodrigo R. Duterte’s outbursts against the United States, expressing confidence that it can weather any potential storm, as the firebrand leader’s anti-American vitriol may have possible repercussions down the road. The Philippines continues to draw “a lot of interest” despite the political noise, with “several foreign companies” looking at not just expanding but establishing their operations here, IT-Business Process Association of the Philippines (IBPAP) Board Chairman Danilo Sebastian L. Reyes said. Many Western companies are waiting to see if the government will follow up Mr. Duterte’s harsh rhetoric by actually shifting policy, changing the manner in which business is done in the country, said Julius M. Guevara, head of advisory services at property consultancy Colliers Philippines. “The companies that we’ve been working with have not adjusted any of their plans. This may be due to the fact that despite all the rhetoric, no clear policies have been made yet to implement these,” Mr. Guevara said. A potential backlash from President Duterte’s anti-West remarks however, may be felt in the medium to long term, an industry player said, as US companies will see it as a signal that the government will lessen its provision of support in the form of economic policies and programs -- a major deciding factor for BPO firms moving to the Philippines.
BPO seeks Malacañang clarification Manila Bulletin 23rd Oct 2016
The $22 billion IT-business process management (IT-BPM) industry is seeking clarification on President Duterte’s pronouncements for “separation” of economic relations with US, the Philippines’ long-time ally. In a speech during his four-day state visit to China, the President declared to break from the economic and military relations from the US. The IT-BPM industry, which is largely represented by the Business Process Association of the Philippines (IBPAP), generated $22 billion in services exports last year. Of the $22 billion revenues, majority or 80 percent originate from US-based clients. The industry employs 1.1 million skilled Filipinos. “We continue to monitor the developments given President Rodrigo R. Duterte’s pronouncement Thursday regarding our military and economic ties with the US. IBPAP has formally reached out to the Office of the President to secure an audience with him and directly discuss our industry’s asks from government,” he said. As in the past, IBPAP said, it sought clarity on government’s position on the matter. On Friday, it received an official statement from Secretary Rodolfo A. Salalima of the Department of Information and Communications Technology (DICT), to wit: “All business investments, contracts and commitments, local and international, in the country will be honored by the Philippine government, consistent with the non-impairment and due process clauses in the Philippine Constitution and existing laws of the land. This pledge has been made by the President is sincere on this pronouncement and he will be true to his words.” The group also relayed a statement by Secretary Mon Lopez during an interview with CNN Philippines in Beijing where he said “In terms of economic (ties), we are not stopping trade, investment with America… The President specifically mentioned his desire to strengthen further the ties with China and the ASEAN region which we have trading with for centuries. But we definitely won’t stop the trade and investment activities with the West, specifically the US.”
Implementing rules establish framework for ICT dep’t operations BusinessWorld 19th Oct 2016
The Implementing Rules and Regulations (IRR) for the newly-established Department of Information and Communications Technology (DICT) were issued yesterday, allowing the agency to proceed with its initial plans for the information technology sector. Former President Benigno S. C. Aquino III signed into law Republic Act (RA) No. 10844, or the “Department of Information and Communications Technology Act of 2015,” forming the DICT. The proposed law had been backed by the business community for nearly a decade. Under the IRR dated Oct. 17, published in newspapers yesterday and signed by the Secretaries of the DICT and Budget and Management, the agency is mandated as “the primary policy, planning, implementing and administrative entity of the Executive Branch that will plan, develop, and promote the national ICT development agenda.” Among the powers and functions of the DICT is policy and planning -- formulating, recommending and implementing national policies, plans and programs that will promote the development and use of ICT. It is also tasked to improve public access for information technology -- to operate and maintain infrastructures in unserved and underserved areas in consultation with local government units, civil society organizations and the academe; resource-sharing and capacity building to harmonize and coordinate all national ICT plans and initiatives... with private service providers as may be necessary.
Congress sees access, security as key items on infotech agenda Business World Online 18th Oct 2016
Congress will prioritize measures that will increase access to the Internet, expand cyber-security rules and step up monitoring of telecommunication companies in a bid to improve Internet speeds available to the market. The House Committee on Information and Communications Technology in particular laid down its legislative priorities for the 17th Congress, which also included amending outdated provisions of Republic Act 7925 or the “Public Telecommunications Policy Act of the Philippines” as well as the Commonwealth Act 146 or the “Public Service Act of 1936.” “[F]or the 17th Congress [we] will target enactment of bills on open access interconnections and convergence, enactment of bills for Free Wi-Fi connection in public areas, bills on cyber bullying, cyber security and cyber fraud, enactment of bills on telecommunications service and standards, and most importantly, the possibility of institutionalizing the establishment of Philippine Big Data Centers and an e-government master plan,” Tarlac Rep. Victor A. Yap (2nd district), the Committee’s chairman, was quoted as saying in a statement yesterday. He noted that the committee’s legislative priorities will focus on improving public access to the Internet and communications services, cyber security and enactment of bills on telecommunications services and standards, with these issues raising questions about the quality of telecommunications services available to the public. The committee also plans to put up a national broadband system and accelerate the deployment of fiber optic cable and wireless technology to improve Internet connectivity. The first head of the newly created Department of Information and Communications Technology (DICT), Secretary Rodolfo A. Salalima, for his part said the agency has not yet formalized its own legislative agenda but welcomed the proposals from Congress.
DICT to help us set up online help center for government-issued records Business World 17th Oct 2016
HE DEPARTMENT of Information Communications and Technology (DICT) is set to roll out a one-stop government data center where online applications for various documents can be made, a senior official from the department said. “Magkakaroon po ng national government data center. It will be one Web site or one portal. (We will have a national government data center. It will be one Web site or one portal. All services, information and data of government agencies will be included there),” DICT Undersecretary Jorge V. Sarmiento said during a committee hearing at the House of Representatives last week. Mr. Sarmiento said the department has asked the Palace to issue an executive order on the establishment of the project “as soon as possible.” If you are going to apply for marriage certificate, passport, driver’s license, clearance, registration, birth certificate, death certificate, everything will be online,” said Mr. Sarmiento. “We have a project in IGovPhil -- the digital certificates and digital signatures, so that when you apply for passport, driver’s license, you can do it at home, coffee shop, school or public library but the signature must be authentic, so there’s a digital signature requirement,” he explained further.
Infrastructure
7 airports up for rehab, expansion Inquirer 20th Oct 2016
Seven airports in various provinces are about to get a major facelift. The Department of Transportation Wednesday published P1.1 billion worth of airport improvement projects, a large part of which involved the construction of new passenger terminals to cater to increasing demand. These airports are General Santos International Airport, Calbayog Airport, Sanga-Sanga Airport, Catarman Airport, Siquijor Airport, Romblon Airport and Ozamiz Airport, a published notice from the DOTr showed.
Warmer ties with China to usher in infra ‘golden age’ BusinessMirror 19th Oct 2016
Potential friendlier ties between Manila and Beijing are expected to benefit the country, especially in terms of infrastructure opportunities, as Chinese construction firms and financing options become available to the Philippines. Although the full extent of the investment deals may be “muted” by underlying political tensions, global think tank BMI Research said in a report that increase Chinese involvement in Philippine infrastructure will help close funding gaps in the Duterte administration’s “infrastructure-spending ambitions.” President Duterte and his economic team have been vocal about ramping up infrastructure spending to address gaps and issues that could dampen sentiment and the long-term investability of the country.
DTI chief backs SteelAsia’s pioneering venture Inquirer 17th Oct 2016
Trade Secretary Ramon M. Lopez backs the plans of SteelAsia Manufacturing to set up a new production facility in Pampanga instead of Bulacan, as the company continued to face stiff opposition from a nongovernment organization. The country’s largest steel producer already has existing facilities in Bulacan and it was set to invest another P6 billion in putting up a new manufacturing plant in Plaridel. The plan was, however, strongly opposed by certain quarters. According to Lopez, the Department of Trade and Industry supports the expansion plans of local manufacturing companies like SteelAsia as such projects are critical to the resurgence of industrial activities in the country.
Philippines to fast-track major transport projects BusinessWorld 14th Oct 2016
Infrastructure was one of the major winners in the Philippines’ draft 2017 budget, released in mid-August, with a total allocation of P860.7 billion, a 13.8% increase on funding from this year’s spending program. If the proposed budget is approved, total infrastructure allocations, including transport, will account for 5.4% of overall budgetary outlays next year.
Palace: Chinese firms’contracts not yet final Inquirer 29th Oct 2016
Malacañang on Friday said the multimillion-dollar contracts signed between the Philippine government and Chinese companies were not final and would undergo mandatory competitive public bidding. Presidential spokesperson Ernesto Abella made the assurance amid concerns that a number of the Chinese companies that pledged to invest in the Philippines had shady records or were blacklisted by international groups. “Those are simply understandings that they can submit feasibility studies, which [will] be subject to public biddings and the necessary processes. So these are not necessarily contracts or commitments to contract,” Abella told reporters. Abella did not reply when asked if President Duterte was aware that some of the Chinese companies involved in the agreements signed during his visit to China last week had tainted past or dubious records. Two of the notorious Chinese companies listed in the President’s accomplishment report were CCCC Dredging Co., which reportedly handled China’s construction of artificial islands in the disputed South China Sea. It is also a sister firm of the company involved in a 2009 road project in the Philippines that was tainted by massive kickbacks.
Government needs $180 billion for infrastructure projects BusinessMirror 28th Oct 2016
Finance Secretary Carlos G. Dominguez III on Friday said the Philippine government will need $180 billion to fund infrastructure projects for the next six years under the Duterte administration. Dominguez said the President, in his recent state visit to Japan, has put in place a clear and coherent strategy to maintain policy stability, achieve high and inclusive growth, and make doing business in the Philippine easier. He said now is a good time for Tokyo to invest in the country as it rekindles its ties with Manila. At an investment forum in Japan, Dominguez said the Duterte administration announced it is accelerating public spending on infrastructure, human capital and social protection in pursuit of inclusive growth.
'Shady track records' hound PH-China infra firms Rappler 27th Oct 2016
MANILA, Philippines (UPDATED) – Various camps have raised concerns whether due diligence was observed in big-ticket infrastructure deals that the Philippines announced in China. It turned out some of the agreements signed went to a firm that was involved in a string of accidents in Vietnam, and another construction firm that was banned by multilateral lender World Bank. A Philippine senator, a congressman, and a group of former senior government officials (FSGO) have raised concerns over the Chinese firms designated to spearhead the new projects as well as the procurement processes followed in these deals. "It is imperative that the public understand whether these agreements have sovereign guarantees, are binding and exclusive or are just memoranda of understanding (MOUs) and, especially for those awarded to private companies, have followed bidding and procurement laws," FSGO said in a statement on Wednesday, October 26.
Chinese company banned by World Bank bags PH infrastructure project Inquirer 26th Oct 2016
A Chinese construction firm banned by the World Bank and a dredging firm that Beijing reportedly used for reclamation activities in the disputed Spratly Islands were among the companies that bagged big-ticket infrastructure projects in the Philippines during the recent state visit of President Duterte to China. The contract of China Road and Bridge Corp. (CRBC) with the Bases Conversion and Development Authority (BCDA) is part of the $15-billion investment projects signed during Mr. Duterte’s visit to China last week. BCDA and CRBC will develop the Bonifacio Global City-Ninoy Aquino International Airport segment of the Metro Manila Bus Rapid Transit-Edsa project. Since 2009, the World Bank has debarred CRBC from participating in all its funded or executed projects after an internal investigation found that it colluded with several other local and international companies on the bidding for the first phase of the Philippine National Roads Improvement and Management Program (NRIMP 1). CRBC is a subsidiary of China Communication Construction Co. (CCCC) Ltd., which in 2011, the World Bank also sanctioned as a result of CRBC’s fraudulent practices. The sanctions against CCCC, its subsidiaries and CRBC will remain until January 2017. As it turns out, other CCCC subsidiaries, like CCCC Dredging Co. and China Harbour Engineering Co. Ltd., were among the companies that will undertake other big-ticket infrastructure projects in the country. CCCC Dredging, the largest dredging company in the world, signed an investment project with Mega Harbour Port for the Cebu International and Bulk Terminal project. But the Wall Street Journal, in November last year, reported that CCCC Dredging delayed its planned initial public offering in Hong Kong in 2015 after questions were raised about its alleged involvement in the land-reclamation activities of China in the disputed Spratly Islands.
UK to help PPPs take in more foreign investment Business World Online 25th Oct 2016
The British Embassy in Manila said the UK government has extended a grant to help the Public-Private Partnership (PPP) Center develop policy to improve the share of foreign funding in infrastructure development. British Ambassador Asif Anwar Ahmad signed an agreement with Rolando G. Tungpalan, deputy director-general of the National Economic and Development Authority (NEDA) and Frances Yani P. Domingo, PPP Officer-in-Charge. The grant involves £90,112.00 or about P5.30 million to finance the Development of Foreign Investment Framework project. This is aimed to help the Philippines develop effective policy that will expand foreign investor participation in infrastructure. Mr. Ahmad said that with 17,000 British subjects residing in the Philippines, the UK has a stake in infrastructure development in the Philippines. He said, Philippine policy on foreign investment lacks coherence. “We recognize the history of infrastructure investment in the Philippines and we saw that it has been checkered, it lacked coherent national strategy, lack of backing legislation for projects to take place,” he said during the grant agreement signing. Mr. Tungpalan of NEDA said that the framework has long been overdue and should have begun in 2012. The project is due for completion in March 2017.
Extra powers, traffic czar rejected The Standard 24th Oct 2016
The House committee on transportation has rejected Transportation Secretary Arthur Tugade’s proposed blanket emergency powers after the panel concluded there was no traffic crisis on the air and at sea and that the problem was limited to land traffic. After 10 marathon hearings, the panel led by Rep. Cesar Sarmiento also dumped Tugade’s proposal to be designated “traffic crisis manager” for three years and left it to President Rodrigo Duterte to name the traffic czar. The panel also dropped the word “emergency” and approved the consolidated bills titled “Transportation Traffic Act.” Sarmiento said the panel found that Tugade’s proposal to acquire emergency powers to address land, sea and air traffic had no basis. He said Tugade and other officials of the Department of Transportation had failed to convince the panel to approve their proposed emergency powers package that was nationwide in scope and covered all modes of transportation. Based on its findings, Sarmiento said, the panel found that the traffic crisis was limited to land transportation and that the problem was concentrated in Metro Manila, Metro Cebu and Davao City. “The Department of Transportation is confused on the specific powers it needs. Most of the powers that you want are either included in your mandate or are already addressed by existing laws.” Sarmiento said the Transport department failed to present concrete plans and offered instead “palliative measures” under the vast powers it was seeking from Congress. The panel members also called Tugade’s attention for proposing P1.27 trillion worth of projects under the emergency powers package that did not have corresponding funding under the 2017 budget. “As it stands, we have not seen concrete plans that will immediately solve the traffic crisis,” Sarmiento said.
PPP Center launches framework project to spur foreign investment GMA News Online 24th Oct 2016
The Public-Private Partnership (PPP) Center of the Philippines on Monday launched the P4.355 million Development of Foreign Investment Framework Project to spark an increase in foreign investment. "This project will facilitate the legal and institutional push to further build a favorable PPP business environment for foreign investors," Frances Yani P. Domingo, PPP Center officer-in-charge, said during the project launch in Makati City. It will be funded by a £90,112 grant from the United Kingdom, and will focus on how foreign investors can structure their investment in the Philippines. The framework will be developed by a technical working group in December. The final draft will need an executive order from the President as well as a PPP Governing Board policy circular or incorporated into the guidelines of partner institutions such as the Securities and Exchange Commission. It will then be translated into inputs to the PPP Act and its implementing rules and regulations.
Itemized list of PH projects covered by China’s $15-B investment pledges to Duterte Inquirer 23rd Oct 2016
The $24-billion investment and credit line pledges that the Philippine government secured from China earlier this week were a display of “greater confidence” in the future economic relationship of the two countries, according to Trade Secretary Ramon Lopez. In a text message to reporters, Lopez said that the renewed friendships in this part of the world have opened huge opportunities for Philippines’ trade and investment in China and Asean market of over 1.9 billion people. The deals secured during President Duterte’s state visit to China are expected to boost the trade and investment levels between the two countries, he added. Lopez disclosed that the $15 billion worth of investment projects were signed.
Duterte heads home from China with $24 billion deals ABS-CBN News 21st Oct 2016
President Rodrigo Duterte returns home from China on Friday with an estimated $24 billion in investment and loan pledges, after a crucial visit that restored to normal level the relations between Manila and Beijing. These include at least $5.5-billion for transportation and infrastructure, $1 billion for a hydroelectric power plant, $700 million for a steel plant, and $780 million for a port development project in Davao City that are expected to generate 2.6 million jobs. The visit was "highly successful in renewing friendship and economic relationships," Trade Secretary Ramon Lopez said, describing the pledges as "Parang gripo yan na nabuksan (It's like opening a faucet)."
Ties with China to fill infra spending gap, pose risk to PPP Rappler 20th Oct 2016
Increased Chinese involvement may have the dual effect of reducing the number of PPP projects in the pipeline and fulfilling plans for a 'Golden Age of Infrastructure' in the Philippines, says a research firm. President Rodrigo Duterte's pitch for friendlier relations with China will help fund the gap in the Philippines' infrastructure goals, but is also likely to pose a risk to the country’s burgeoning public-private partnership (PPP) thrust, a research unit of Fitch Ratings said in a report. BMI Research said in an October 18, 2016 report that increased Chinese involvement may have the dual effect of both reducing the number of PPP projects in the pipeline, as well as helping fulfill the President's plans for a "Golden Age of Infrastructure" in the country. During his visit to Beijing, Duterte and Chinese President Xi Jinping signed 13 cooperation deals, including a memorandum of understanding on the lists of transportation and infrastructure projects. BMI Research said it sees "clear incentives" for both countries: China sees befriending the Philippines as a way of reducing the United States' influence in Asia, while the Philippines seeks to gain access to China's generous infrastructure investment packages.
NEDA pushes more infra investments in NE Luzon Philippine Star 19th Oct 2016
In line with the Duterte administration’s push to spur growth in the regions, the National Economic and Development Authority (NEDA) is eyeing more infrastructure investments in Northeastern Luzon to boost agriculture trade. NEDA deputy director general for investment programming Rolando Tungpalan said this was among salient points taken up during the Oct. 14 meeting of the Infrastructure Committee (Infracom).“The sense of the Infracom was to have a bias towards the regions, so it will not be the usual greater capital region. Of course Manila would have projects to address congestion but since we are looking at a six-year horizon, we should start opening up opportunities by connecting the country,” he said.“So the staff would have to identify major infrastructure projects that would classify as flagship that would focus on regional and rural development including irrigation,”he added. Tungpalan said NEDA has added Northeastern Luzon in the priority geographical areas for regional investment — along with Visayas and Mindanao — because of its large potential for agriculture trade. The area comprises the food-producing provinces of Quirino, Aurora, Isabela, Cagayan and Nueva Vizcaya.
LRT speed to increase to 60 kph in Q3 of 2017 Business Mirror 18th Oct 2016
RAILWAY operator Light Rail Manila Corp. (LRMC) is moving to increase the speed of the oldest overhead train system in Metro Manila from 40 kilometers per hour (kph) to 60 kph by the third quarter next year. This, documents showed, will be made possible with the completion of the 26.5-kilometer rail-replacement program for the Light Rail Transit Line 1 (LRT 1) by September 2017.The project covers 21 km of rail tracks on the northbound route and 5 km on the southbound route. These replacements will be the final phase to complete the overall rehabilitation of the LRT 1’s tracks system.
Duterte administration keen to join AIIB The Jakarta Post 17th Oct 2016
The Duterte administration wants the Philippines to formally join the Asian Infrastructure Investment Bank (AIIB) in time for the president’s trip to Beijing this week to erase the massive public works gap that has hobbled the local economy. Finance Secretary Carlos G. Dominguez III said membership in the China-led multilateral lending agency, an international treaty that requires the ratification of the senate, would unlock financing potential for the long pipeline of infrastructure projects that President Duterte is optimistic of building during his term. “We have a lot of projects,” Dominguez said in an interview last week.
RAM Ratings upgrades PH Asean credit to ‘A1’ The Manila Times 16th Oct 2016
MALAYSIA-BASED debt watcher RAM Ratings has upgraded the Philippines’ Asean credit rating by a notch in line with the country’s legislative and administrative reforms and ability to withstand external volatilities. The Philippines’ Asean credit rating was raised to “A1,” or five notches over the minimum investment grade. RAM also affirmed the Philippine Global credit rating at “BBB3,” which is equivalent to the minimum investment grade. “The upgrade of the Philippines’ ratings, both on the Asean and Malaysia national rating scales, reflects impressive progress in the enactment of key legislative and administrative reforms as well as the country’s resilience, especially its ability to withstand external volatilities that compares favorably to Asean peers,” the credit watchdog noted.
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