| Multilateral Trade Agreements
How will the CPTPP pan out for ASEAN? The ASEAN Post 26th Jan 2018
With the ratification of the CPTPP agreement, integration within the ASEAN bloc might be threatened as CPTPP-ratifying countries like Canada and Japan redirect trade from non-participating countries like Indonesia and Philippines to CPTPP members in order to benefit from lower tariffs. Yet should circumstances change for Thailand, Philippines and Indonesia, they could still become party to the CPTPP agreement.
Manila keeps focus on RCEP despite TPP breakthrough BusinessMirror 24th Jan 2018
Manila will continue to focus its efforts to concluding the Regional Comprehensive Economic Partnership (RCEP) despite the breakthrough made by the 11 remaining negotiating countries in the Trans-Pacific Partnership (TPP). “Current focus is on [the] RCEP,” Trade Secretary Ramon M. Lopez told the BusinessMirror. Still, Lopez, who is now in India for President Duterte’s state visit there, said the Philippines will assess anew the benefits of joining the TPP. “[We are now] revisiting the feasibility, [even] without the US there.”
Regional Affairs
South Korea eyes improved economic ties with Philippines philstar.com 31st Jan 2018
South Korea plans to ramp up investments in the Philippines this year after a slowdown in 2017, with planned projects to support the government’s massive infrastructure program. The Asian powerhouse is also seeking to significantly boost trade with the Philippines, seeing huge potential in the growing local market.
Philippines’ approval of Chinese research vessel in strategic Benham Rise waters triggers national security concerns South China Morning Post 31st Jan 2018
A Chinese ship that arrived in the Philippines this week ahead of an approved mission to a strategically crucial undersea region sparked concerns over the Southeast Asian country’s powers of jurisdiction, and its national security. Philippine lawmakers have called for a congressional probe into the research being conducted, with one national security adviser suggesting it had a dual purpose and potential military applications. The Benham Rise was recognised in 2012 by the United Nations Convention on the Law of the Sea (UNCLOS) as part of the Philippine continental shelf, within its exclusive economic zone.
Philippines secures $1.25B in investment pledges from India philstar.com 25th Jan 2018
The Philippines has fetched at least $1.25 billion worth of investment pledges from Indian firms that are expected to create 10,000 jobs, an official said Thursday. Presidential spokesman Harry Roque said Indian companies have been meeting with the Trade department on the sidelines of the Association of Southeast Asian Nations – India Commemorative Summit to discuss their investment plans. President Rodrigo Duterte is here to attend the summit, which highlighted the need to further increase the engagement between India and the regional bloc. Trade Secretary Ramon Lopez said the bulk or $1 billion of the investment pledges came from Adani Green Energy Ltd., which is planning to expand their operations in the Philippines. There were also investment pledges from companies involved in information technology, business processing management, software development, tourism and wellness and pharmaceuticals. The Philippines’ Board of Investments signed an agreement with Invest India to encourage direct investments in the two countries.
National Affairs
Charter-change plebiscite in May unlikely – Comelec philstar.com 2nd Feb 2018
Much as Speaker Pantaleon Alvarez and his allies in the House of Representatives would want to complete the amendments to the Constitution and hold a plebiscite by May this year, the Commission on Elections (Comelec) said yesterday this is not likely to happen. Speaking to reporters after a meeting of the Joint Congressional Oversight Committee on the Automated Election System yesterday, Comelec acting chairman Christian Robert Lim said the plebiscite for Charter change is not something the commission is preparing for at this time. If ever the efforts to amend the Constitution do prosper, Lim said there is no more time for the poll body to prepare for a plebiscite. “A manual election for Charter change will need six months to prepare. The public bidding alone would take about two to three months,” Lim said. He said the only way the process could be expedited is for Congress to exempt the Comelec from conducting a public bidding. Still, holding a plebiscite in May would be difficult.
Philippines welcomes US exec’s remarks on anti-drug war philstar.com 2nd Feb 2018
The Department of Foreign Affairs (DFA) has welcomed the positive remarks made by a US official on the Philippines’ war on drugs, particularly the decline in the cases of extrajudicial killings. In a statement issued on Wednesday night, the DFA said the Philippines would continue to work with its international partners, including the US, in combating illegal drugs. US deputy assistant secretary of state for international narcotics and law enforcement James Walsh said there are encouraging signs that extrajudicial killings in the Philippines are on the wane. The US official said Washington would monitor the country’s anti-narcotics campaign. He said the US would continue to support the Philippine government’s drug demand reduction program, as well as their maritime assistance to the country. Washington had reduced its assistance to the Philippine National Police (PNP) due to human rights violations. The Duterte administration recently relaunched its Oplan Tokhang, after being suspended twice in 2017. Malacañang vowed the new campaign would be less bloody. Under the PNP’s new guidelines, operatives, tagged as “Tokhangers,” must abide by a three-stage procedure to ensure transparency and prevent suspicion of abuse in the campaign. The PNP limited the conduct of Tokhang only during daytime on weekdays, from the usual nighttime operations that drew suspicion of abuses.
Senate resumes hearings on Charter-change today philstar.com 1st Feb 2018
The Senate committee on constitutional amendments will resume today its hearings on various proposals to amend the 1987 Constitution. This comes a week after leaders of the chamber and the House of Representatives forged a truce on their quarrel over Charter change and the shift to a federal system. “You can see we don’t have any bickering anymore,” Senate President Aquilino Pimentel III said. Pimentel said he expects the hearings to continue without hitches. Pimentel and Speaker Pantaleon Alvarez, both leaders of the ruling PDP-Laban, met last week to resolve differences over Charter change, particularly on how the two legislative chambers should go about amending the Constitution. PDP-Laban is pushing for Charter change to shift the country to a federal system but many senators are not sold on the idea. Many senators prefer that the restrictive economic provisions be amended first, and their votes be counted separately from the House members if ever the two chambers agree to convene into a constituent assembly.
DOF refines next tax package Malay Business Insight 31st Jan 2018
The Department of Finance (DOF) is refining the tax reform’s Package 2 Plus to reflect some changes including a decision not to submit a new proposal on tobacco excise tax. Karl Kendrick Chua, finance undersecretary, said the DOF would instead support the bill filed by Sen. Manny Pacquiao which pushes for a P60 excise tax per pack. Submission of the package, seen earlier to be done by the end of this month, has been pushed back by two weeks as the agency is still finetuning certain aspects of the tax package. The DOF said in a statement it wants to make sure the proposal it submits to Congress is “solid, well-consulted and well-researched.” Chua said some aspects of Package 2 Plus on the removal of the value-added tax exemptions for coal and casino operations have already been included in Package 2, which covers corporate taxation and the modernization of fiscal incentives. The corresponding hike in alcohol excise taxes, meanwhile, is now undergoing final review and consultation, Chua said. Package 2 was submitted to the House of Representatives last January 16, 2018 following the reopening of the Congress after its yearend break. Another component of Package 2 Plus, the proposal on a comprehensive mining tax, would still require further consultation with the Mining Industry Coordinating Council, which has scheduled its next meeting two weeks from now.
DOF 'finetuning' tax reform program's 'Package 2 Plus' philstar.com 30th Jan 2018
The Department of Finance said it is now “finetuning” certain aspects of the Comprehensive Tax Reform Program’s “package 2 plus,” which will cover more taxes on tobacco, alcohol, mining, coal and casinos. In a statement, Finance Undersecretary Karl Kendrick Chua said some aspects of package 2 plus, particularly on the removal of the value-added tax exemptions for coal and casino operations, have already been included in Package 2, which covers corporate taxation and the modernization of fiscal incentives.
Duterte names new appointees Manila Bulletin News 29th Jan 2018
President Duterte has named 12 new officials, official documents from Malacañang signed January 24 revealed Monday. It was revealed that Duterte nominated Department of Foreign (DFA) Undersecretary Manuel Antonio Teehankee as permanent representative of the Philippines to the World Trade Organization (WTO) in Geneva, Switzerland. Duterte also named Ombra Jainal as Ambassador Extraordinary and Plenipotentiary to the Czech Republic. At the Department of Finance, the President appointed Stanley Zambarrano as Director III, replacing Richard Uy. Duterte also named Marina de Guzman as Director II at the Bureau of the Internal Revenue (BIR). Edward Cabase was named Director II at the Land Transportation Franchising and Regulatory Board (LTFRB) under the Department of Transportation (DOTr), replacing Abdulgafar Mohammad. At the North Luzon Railways Corporation, Duterte named Eduardo Quintos IV as a member of the board of directors to serve the unexpired term of former Manila Vice Mayor Franciso Domagoso until June 30. Domagoso, more known as “Isko” Moreno, resigned for undisclosed personal reasons. Duterte also named Herminia Avila as member of the board of directors at the North Luzon Railways Corporation. The President appointed Honorato Alzate as Director IV at the Commission on Higher Education (CHED). Duterte named Avelino Tayag as member of the board of directors at the Philippine National Oil Company (PNOC) Exploration Corporation. He will serve the unexpired term of Gemiliano Lopez Jr. until June 30. Lastly, Duterte named Nanziancino Dilay as a member of the board of directors at the Philippine Pharma Procurement Inc., to serve the unexpired term of Virgilio Yuzon until June 30.
Duterte names members of body to review Constitution philstar.com 25th Jan 2018
President Rodrigo Duterte appointed 19 members to the consultative committee who will review the 1987 Constitution. The committee is chaired by former chief justice Reynato Puno, a federalism advocate. Duterte has also appointed former Senate president Aquilino Pimentel Jr, the father of the local government code. Duterte signed the appointment papers January 24 but Malacañang released the papers to media on Thursday. In December 2016, he signed Executive Order 10 creating a 25-member body to study and review the provisions of the 1987 Constitution. Executive Secretary Salvador Medialdea will act as an observer during the deliberations of the panel. The committee will then submit its report, recommendations and proposals to the president. Charter change is among the top priorities of the 17th Congress this year. The Senate and the House of Representatives began deliberations on charter change last week. Federalism advocates like Puno and Pimentel believe that if the country is shifting to a federal form of government from a unitary one, a greater part of the Constitution should be revised.
Senate, House leaders set aside charter change standoff philstar.com 25th Jan 2018
The Senate and the House of Representatives will focus on identifying constitutional amendments that will be presented to the people instead of fighting over how to amend the charter. “We have decided to focus on the revisions that have to be made rather than how these changes will be affected,” Senate President Aquilino Pimentel III said Thursday. Pimentel’s statement comes after he met with Senate Majority Leader Vicente Sotto III, House Speaker Pantaleon Alvarez and House Majority Leader Rodolfo Fariñas Wednesday night. The PDP-Laban president noted that the differing legal views of both chambers on how to amend the Constitution “should not distract us from the crux of this exercise: to make revisions to the charter that will improve our people’s lives.” He added that the lawmakers will only tackle the mode of enacting the amendments after determining what specific amendments or revisions will benefit the people. The lower house has already adopted a resolution to convene as a constituent assembly. The Senate, however, has insisted that it would not meet with the House as a constituent assembly without assurances that voting would be done separately.
Customs
Carriers' surcharges mean up to $5B annual losses for PH economy PortCalls Asia 31st Jan 2018
Destination fees and surcharges imposed by international shipping lines cost the Philippine economy an estimated US$2 billion to $5 billion in losses annually, according to a joint report by the National Competitiveness Council (NCC) and the Export Development Council (EDC). The joint report, titled “Potentially Avoidable International Shipping Cost and Other Charges” and authored by Dr. Enrico Basilio and Michael Raeuber, said a quick analysis indicates that, “on the low side, these surcharges (economic burden) are estimated to cost the economy roughly $2 billion annually (to a high of $5 billion) annually.”
Imports with generic description to undergo close BOC scrutiny PortCalls Asia 30th Jan 2018
Customs Commissioner Isidro Lapeña is warning Bureau of Customs (BOC) officials against processing shipments with articles that have been declared in general terms as such declarations violate customs regulations. In a memorandum to all district and sub-port collectors, Formal Entry Division chiefs, and examiners and appraisers signed January 12, Lapeña warned that “any failure to adhere to required standard will be taken seriously and will be subject to close scrutiny.” According to Lapeña, Customs Administrative Order (CAO) No. 08-2007 and Customs Memorandum Order (CMO) No. 28-2007 have been “reiterated for several times already since [their] issuance, nonetheless, violations remain prevalent.”
Customs, PEZA to strengthen collaboration PhilStar 27th Jan 2018
The Bureau of Customs (BOC) and the Philippine Economic Zone Authority (PEZA) have further strengthened their partnership toward making government services more efficient to attract more investors in the country. The two agencies signed yesterday a memorandum of agreement (MOA) to beef up their collaborative partnership, including plans for automation. Under the agreement, BOC and PEZA will automate their operations governing inter-zone transfers and “bring-in and bring-out” of goods to or from the PEZA economic zones, including local sales, disposal of goods in the domestic territory, and transfer of goods to other economic zones and freeports administered by other authorities.
BOC springs surprise check at Manila port, plans more PortCalls Asia 21st Jan 2018
The Bureau of Customs (BOC) said it will conduct regular spot inspections of cargoes at the Manila International Container Port (MICP) as part of the bureau’s intensified campaign against smuggling. “We will do this as often as we can, if necessary, until such time all importers and players can do the business legitimately,” Customs Commissioner Isidro Lapeña said on January 19 during his surprise random checking at MICP’s Container Freight Station 3.
Defense & Security
Duterte wants ASEAN to strengthen war vs drugs, terrorism philstar.com 26th Jan 2018
President Duterte wants members of the Association of Southeast Nations (ASEAN) to strengthen their defense cooperation to address terrorism, piracy and other threats in the region. “Aside from the political and the business, the Philippine President emphasized that ASEAN in addition to being an economic body must also cooperate even militarily in combating the threat of modern-day terrorism,” presidential spokesman Harry Roque said in a press briefing.“Although the Philippine President used the term ‘terrorism,’ he also emphasized that there was a threat to what is known as the Indo-Pacific navigation route pertaining to the threat of piracy that ASEAN countries must cooperate militarily to combat this form of terrorism,” Roque said.
Military boosts security in Mindanao philstar.com 20th Jan 2018
The military has strengthened security in several cities in Mindanao. Lt. Gen. Carlito Galvez Jr., commander of Western Mindanao Command (Westmincom), said they have intelligence reports that Islamic State (IS)-inspired groups are targeting cities in the region. He said the threats surfaced with the reported massive recruitment attempt of the IS after the Maute group was defeated during the five-month siege in Marawi City. Galvez said they have already organized the Joint Task Force Iligan (JTFI) in Iligan City, the ninth anti-terror and security unit under the area of operation of the Westmincom.
U.S. Military Escalates War Efforts in the Philippines Wall Street Journal 19th Jan 2018
The U.S. military has launched a new counterterrorism mission in the Philippines, making operations there eligible for the same funding used to finance the long-running wars in Afghanistan and Iraq, military officials said. The decision by the Trump administration to elevate the U.S. mission to an Overseas Contingency Operation, or OCO, was made last September in response to a Philippines government request for more support to fight extremist groups, officials said.
SE Asian states launch intelligence pact to counter Islamist threat Bangkok Post 25th Jan 2018
JAKARTA/NUSA DUA, Indonesia: Six Southeast Asian nations launched an intelligence pact on Thursday aimed at combating Islamist militants and improving co-operation on security threats, overcoming what analysts described as a high level of distrust. Under the "Our Eyes" initiative, senior defence officials will meet every two weeks to swap information on militant groups and develop a common database of violent extremists. The intelligence sharing arrangement comes after insurgents aligned to Islamic State laid siege to the southern Philippine city of Marawi last year.
Economics
DOF: 'Build, Build, Build' will outrun growth of debt philstar.com 31st Jan 2018
The Department of Finance assured the public that although the Duterte administration’s ambitious infrastructure program might stoke an increase in government debt, robust economic expansion brought by better infrastructure would “outrun the growth of debt.” “In the short-term, the government's Build, Build, Build Program may exert upward pressure on the debt stock. In the medium- to long-term, however, a sustainable high economic growth rate will outrun the growth of debt,” the DOF said in an economic bulletin. The Bureau of Treasury recently reported that national government debt ended 2017 at a record P6.652 trillion, up 9.2 percent from a year earlier, though debt as a proportion of the country’s gross domestic product remained steady.
Economic expansion to ease -- BMI BusinessWorld 25th Jan 2018
PHILIPPINE economic growth is expected to moderate until next year — due largely to base effects from 2016’s election-related boost and a “deterioration of the business environment” — but will remain “very respectable” by regional standards, Fitch Group unit BMI Research said in a Jan. 23 note. “We continue to expect the economy to grow at a more moderate pace over the coming quarters and maintain our real GDP (gross domestic product) forecast at 6.3% in 2018 and 6.2% in 2019,” BMI Research said in a Jan. 23 report. If realized, BMI’s forecast is slower than the actual 6.7% recorded for 2017 and 2016’s 6.9%, and will fall short of the government’s 7-8% GDP target for 2018 to 2022. The Fitch unit said that the projections are “still strong by regional and historical standards and this will be supported by positive demographic trends, a strong public infrastructure drive and deepening economic cooperation with China.” However, BMI flagged a “worsening business environment” that it says will drag private investment growth in the near term.
Lost perks under TRAIN force regional HQs to shelve Philippine entry philstar.com 25th Jan 2018
About five multinational companies are shelving plans to set up regional headquarters in the country due to concerns on the removal of their special tax rate.The Philippine Association of Multinational Companies Regional Headquarters Inc. (PAMURI) said four to five regional operating headquarters (ROHQs) have “refused to enter the Philippine market due to the threat of removal of the said incentives.” Pamuri was referring to the 15 percent special tax rate on the gross income of employees of ROHQs. ECCP said ROHQs are now awaiting the issuance of revenue regulations within this month for “final word and basis of next steps.“
Competition body zeroes in on 10 sectors in study BusinessWorld 18th Jan 2018
THE PHILIPPINE COMPETITION COMMISSION (PCC) is embarking on a study of anti-competitive practices in 10 priority sectors that may touch on the impact of a contentious deal involving the country’s telecommunication duopoly. Apart from telecoms, PCC Commissioner Stella Luz A. Quimbo announced in a briefing in Makati City on Wednesday that these sectors are rice, meat and poultry, pharmaceuticals, air transportation, land transportation, agricultural credit, digital commerce, retail, and certain areas of manufacturing. The PCC is tapping third-party experts to undertake the market study, citing its limited resources. The review is expected to be completed within the year.
Energy
Two House panels tackle bill seeking to abolish Energy Regulatory Commission CNN 1st Feb 2018
Two committees of the House of Representatives discussed on Wednesday the bill which seeks to abolish the Energy Regulatory Commission following controversies.The House Committees on Government Reorganization and Energy tackled House Bill 5020, which seeks to abolish ERC and replace it with the Board of Energy as an attached unit of the Department of Energy (DOE). House Speaker Pantaleon Alvarez filed the bill in February 2017. Alvarez had said the creation of the proposed Board of Energy will ensure it will be explicitly within the regulatory arm of the government and specifically, within the direct control and supervision of the President.
ADB, PNOC ink deal on LNG advisory services philstar.com 1st Feb 2018
The Asian Development Bank (ADB) will be advising the Philippine National Oil Co. (PNOC) on the liquefied natural gas (LNG) hub project in Batangas which is planned to be carried out with private sector participation this year. Due to the imminent depletion of domestic gas reserves at the Malampaya gas field in Palawan, which provides a substantial amount of power supply in the country, PNOC is developing sustainable gas supply strategy through the establishment of an LNG hub in Batangas. “The Philippines’ first LNG hub will help in ensuring long-term energy security to the Philippines and source a cleaner energy resource,” said Siddhartha Shah, principal PPP specialist.
DOE endorses 29 projects for commercial operations philstar.com 28th Jan 2018
The Department of Energy (DOE) has endorsed 29 power projects with over 1,500 megawatts (MW) in capacity. Of the 29 endorsed projects, there are 15 renewable energy plants, 10 diesel-fired plants, three power barges and only one coal-fired plant, data from the DOE showed.The biggest of the lot is the 1,000-MW coal-fired power plant of Orion Pacific Prime Energy Inc. located in Barangas Awasan, Tagkawayan, Quezon.
MICC reviews mining impact of next tax reform package philstar.com 2nd Feb 2018
The Mining Industry Coordinating Council (MICC) is set to meet before the end of the month to discuss the proposed reforms in the mining industry’s fiscal regime under a new tax reform package, the Department of Finance (DOF) said yesterday. In an interview, Finance Undersecretary Bayani Agabin said the interagency mining committee would review the proposals related to mining included in the Package 2 Plus of the government’s Comprehensive Tax Reform Program (CTRP) to ensure that they are “fair and equitable.” In terms of mining taxes, Agabin said the new tax reform package may involve royalty fees and sharing schemes imposed on local mining companies. Agabin, however, said he was not sure if excise taxes on coal and minerals would once again be adjusted under the new tax reform proposal. Excise tax rates on these resources have already been increased under the first tax reform law, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act. The undersecretary emphasized that the goal of Package 2 plus is not only to generate revenue for the government, but also to ensure the protection of the environment. The proposed package seeks to adjust taxes on alcohol, mining and casinos. Meanwhile, Agabin said the MICC may be able to start soon its review on the 26 mining sites ordered closed or suspended by former Environment secretary Regina Lopez.
Business group wants ban on export of raw materials philstar.com 1st Feb 2018
The oldest business chamber in the Philippines is pushing for a ban on the export of raw materials like ore, saying that only companies willing to set up factories locally to manufacture finished products should be allowed to use the country’s mines. Chamber of Commerce of the Philippine Islands president Jose Luis Yulo Jr. said yesterday his group is talking to lawmakers to sponsor their proposal which seeks to lure more manufacturing investments in the country. “One of the things we will be pushing this year is to stop exporting raw materials or ore. We should only give the mine to people who will produce a factory and use the minerals to produce a finished product,” Yulo said. Yulo said the proposal has been presented to the National Economic and Development Authority and the agency “liked it.”
Cusi pushes energy resiliency policy philstar.com 1st Feb 2018
Energy Secretary Alfonso Cusi said the implementation of an energy resiliency policy is critical in securing power supply, particularly in Albay province which was directly affected by Mayon Volcano’s eruption. In a coordination meeting in Albay held over the weekend, the energy chief emphasized the significance of implementing the recently issued energy resiliency policy in which energy stakeholders are tasked to submit their compliance plan reflecting the energy resiliency measures they opt to undertake. The DOE has issued a circular adopting energy resiliency in the planning and programming of the energy sector to mitigate potential impacts of disasters. A Resiliency Compliance Plan (RCP) will be implemented to contain minimum adaptation measures, including both structural and non-structural measure options, to gauge infrastructure and human resource preparedness during and in the aftermath of disruptive events. All industry players are required to submit their respective RCPs within six months, which shall be reviewed every three years. They should also include a budgetary requirement of the implementation of the RCP. The circular also creates the Task Force on Energy Resiliency to oversee the implementation of the policy.
Department of Energy opens bids for oil exploration philstar.com 24th Jan 2018
The Department of Energy (DOE) is now accepting proposals for petroleum exploration and development contracts to fully harness the country’s indigenous resources. DOE Secretary Alfonso Cusi has signed a circular governing the selection process in the awarding of petroleum service contracts (PSCs) and the creation of the review and evaluation committee (REC). In the circular, the DOE said the selection process in the awarding of PSCs to qualified applicants shall be conducted in a transparent, open, competitive and expeditious manner. The directive allows applicants to nominate the areas of interest in accordance with the procedures or submit offers in pre-determined areas not covered by any application or nomination.
Independent body soon to oversee power spot market philstar.com 24th Jan 2018
The long-delayed independent market operator (IMO) will start operating the wholesale electricity spot market (WESM) by mid-year, Department of Energy (DOE) Secretary Alfonso Cusi said. The energy chief met with the Philippine Electricity Market Corp. (PEMC) transition team and set the timeline on when the IMO will be implemented. The DOE has been seeking industry input as it lays down the rules for the transition of the WESM to an IMO. The IMO is an independent entity from electric power industry participants and from the government to operate the WESM on a non-profit basis.
Financial Services
SM Store, PayMaya to transform retail industry with cashless payments philstar.com 24th Jan 2018
PayMaya’s partnership with The SM Store for QR-based payments builds on its trailblazing initiative of building a “cashless Philippines” in line with National Retail Payment System initiative led by the Bangko Sentral ng Pilipinas. The effort aims to increase the share of electronic transactions in the country by 20 percent in 2020. To support this vision, PayMaya has launched game-changing innovations including PayMaya QR. Various merchants are now equipped with the payments technology, including all Smart Stores nationwide, food parks like The Yard Timog and Pioneer Street Market as well as Hue Hotel and Resorts and Station X in Boracay, as well as establishments such as Fairmont Makati and Army Navy, among many others.
Insurers bullish on double-digit growth philstar.com 1st Feb 2018
A group of life insurance players in the Philippines expects the insurance industry to sustain a double-digit growth this year on the back of the country’s solid macroeconomic fundamentals and the newly enacted tax reform law. Olaf Kliesow, the newly appointed president of the Philippine Life Insurance Association Inc. (PLIA), told reporters he sees another good year for the industry this 2018 owing to robust economic growth prospects and the higher spending capacity of Filipinos as a result of the Tax Reform for Acceleration and Inclusion (TRAIN) Act. Kliesow, who is also the president and CEO of Allianz PNB Life Insurance Inc., cited the positive growth projections made by analysts on the country’s gross domestic product this year, which he said are mostly above the seven percent level. According to Kliesow, there is still a huge opportunity for growth in the insurance industry, considering the large portion of the population which still has no knowledge about insurance products.
Central bank readies new risk buffer BusinessWorld 30th Jan 2018
The Central Bank is looking to introduce a new risk management measure that would require banks to set aside additional capital as reserves, this time to cover potential losses amid rapid loan growth. Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. said that the central bank is now looking to introduce the countercyclical capital buffer (CCyB) that will require big banks to maintain such a “sufficient capital base” at times of “excessive” credit growth.
Philippines Authorities to Issue Cryptocurrency Regulations in 2018 Finance Magnates 29th Jan 2018
The Securities and Exchange Commission, the financial watchdog of the Philippines, is busy writing regulations for the cryptocurrency trade, according to a report in investing.com. The regulations should be finalised this year. Emilio Aquino, commissioner of the SEC, told a press conference: “We need to act because initial coin offerings are sprouting especially in 2017. We want to come up with our own set of regulations. You have to be extra careful how investors in this new space are protected.” Cryptocurrency transfers have become popular in the Philippines; it is one of the biggest markets for international transfers as so many of its citizens work abroad and send money home. The Bangko Sentral ng Pilipinas (BSP) says that cryptocurrency transactions in the country averaged $8.8 million a month in the first half of 2017, and $6 million a day by October.
Insurance Commission OKs mobile app for insurance sale PhilStar 23rd Jan 2018
Insurance companies may now use mobile applications in the distribution of their products, the Insurance Commission (IC) said yesterday. Insurance commissioner Dennis Funa signed Circular Letter 2018-07, providing an enhanced framework on the use of mobile phones as a distribution channel for insurance products. The IC said this supplements the guidelines on the electronic commerce of insurance products issued by the regulator in 2014, one which provides the framework on the distribution of insurance products through the internet.
Philippines central bank increases leverage ratio Securities Lending Times 18th Jan 2018
The Bangko Sentral ng Pilipinas’s (BSP) monetary board has approved new rules on minimum leverage ratio requirement for universal banks, commercial banks and their subsidiary banks and quasi-banks, effective 1 July. The new leverage ratio, set at 5 percent, is a non-risk based measure, which works as a backstop to the capital adequacy ratio.
Overseas Filipino Bank launched ABS-CBN News 18th Jan 2018
President Rodrigo Duterte on Thursday led the launch of the Overseas Filipino Bank, fulfilling an election promise that will supposedly be beneficial to overseas Filipino workers (OFWs) and other Filipinos abroad. Duterte on September 28, 2017 signed Executive Order No. 44 approving Land Bank of the Philippines’ acquisition of Philippine Postal Savings Bank, which was spun off into Overseas Filipino Bank (OFBank).
InstaPay platform rollout seen within next quarter BusinessWorld 18th Jan 2018
THE PUSH for electronic payments is expected to accelerate this year after industry players formalized arrangements with the Bangko Sentral ng Pilipinas (BSP), while work is under way for a new clearing house for real-time fund transfers. BSP Governor Nestor A. Espenilla, Jr. said that banks and financial technology (fintech) players are working to roll out the InstaPay platform within the second quarter, which would be dedicated to processing real-time and small-value transactions across banks and e-money wallets. The central bank targeted a first-quarter rollout for InstaPay, but this had to be pushed back amid technical issues that needed to be smoothed out for interbank transactions. The InstaPay will clear electronic fund transfers (EFT) across banks and e-wallets in real time, focusing on low-value transactions worth below P50,000. This would be the second automated clearing house after the Philippine EFT System and Operations Network (PESONet) was rolled out in November, which will process fund transfers in batches.
Food & Agriculture
Health group on tobacco tax rise: We rely on you, DOF Manila Bulletin News 28th Jan 2018
A health group yesterday welcomed Finance Secretary Carlos Dominguez III’s announcement that the Department of Finance’s (DOF’s) proposed tax package will include higher tobacco tax. “Finance Secretary Dominguez’s pronouncement that their proposed tax package will include tobacco tax increase is a very positive development. We are relying on them to follow through on their commitment and actively push for tobacco tax increase in Congress. We recommend that their proposed tobacco tax increase be at least P60 per pack in order to save hundreds of thousands of lives in the Philippines,” said president Mary Ann Fernandez Mendoza of Health Justice Philippines, a think tank and advocacy group with legal expertise on tobacco control and health promotion.
Drink producers shun China corn syrup imports to avoid new levy BusinessWorld 31st Jan 2018
PHILIPPINE beverage producers are swapping their imports of high-fructose corn syrup (HFCS) for domestic sugar to avoid higher taxes on the alternative sweetener, industry and government officials said, limiting exports from top supplier China. Losing the Philippine market, or bulk of it, could lead to an oversupply of HFCS in China at a time when Chinese producers are expanding output of the sweetener from huge domestic corn stocks. The Philippines was the biggest market last year for China’s corn syrup, buying 290,080 tons, or half of China’s exports. The government on Jan. 1 imposed a tax of P6 a liter on drinks using sugar and other sweeteners versus a tax of P12 on HFCS. The levies, part of a broader tax reform package, will be used to fund a countrywide infrastructure development program. The Philippines, which is forecast to produce 2.27 million tons of raw sugar in the crop year ending August, said there is enough local supply to serve the beverage sector, but it would have to curb exports.
House passes bill for full crop insurance Manila Bulletin News 30th Jan 2018
The House of Representatives approved yesterday on third and final reading a bill granting agrarian reform beneficiaries full crop insurance coverage for losses caused by natural calamities and pest infestation. With 201 congressmen voting in the affirmative and zero negative, House bill 6686, a bill authored by Deputy Speaker and Ilocos Sur Rep. Eric D. Singson, was passed on final reading. Co-authored by Batangas Rep. Vilma Santos-Recto, HB 6686 has won bipartisan support as an amendment to Republic Act No. 97000 or the Comprehensive Agrarian Reform Program Extension with Reforms.” HB 6686 provides for a full crop insurance coverage to farmer beneficiaries whose losses were the result of natural calamities such as typhoon, drought, volcanic eruption and flood.
Health & Life Sciences
DOH: HIV cases due to paid sex breach 1,000 PhilStar 29th Jan 2018
Cases of human immunodeficiency virus (HIV) due to paid sex exceeded a thousand last year, the Department of Health (DOH) reported. According to the HIV and AIDS Registry, at least 96 additional cases in November pushed to 1,020 the total number of people who got infected with the potentially deadly infection after engaging in “transactional sex” during the first 11 months of 2017. “People who engage in transactional sex are tho
Anti-aging field ‘explodes’ in pursuit of healthy old age Manila Bulletin News 26th Jan 2018
Experts on the forefront of anti-aging medicine say the field is booming, with therapies on the horizon to target illnesses like cancer and Alzheimer’s and make for a healthier, older population in the years to come. Such remedies are increasingly important because of the world’s aging population. Growing old, experts say, is a leading risk factor for most human diseases and a major socioeconomic problem. “In the last 20 years this field of research on aging has exploded,” said Felipe Sierra, director of the division of aging biology at the US National Institute of Aging.
Cambodians visit PH to study its social health insurance system Manila Bulletin News 26th Jan 2018
Sixteen delegates from the National Social Security Fund (NSSF) of Cambodia visited the Philippines to study the country’s experiences in implementing the social health insurance program and providing coverage for the informal sector worker. Ruben John A. Basa, executive vice president and chief operating officer of the Philippine Health Insurance Corporation (PhilHealth), welcomed the delegates headed by NSSF deputy director Sum Sophorn. Basa said the PhilHealth’s existence for the past 22 years has made it the biggest social protection agency in the Philippines.
Measles outbreak declared in Davao City Rappler 23rd Jan 2018
The local government here declared a measles outbreak as more than 200 people showed signs they were suffering from the highly-contagious infection. Josephine Villafuerte, the city’s chief health officer, said Monday, January 22, that at least 222 people here, not all residents of Davao City, had measles, an infection locally known as tigdas. In pamphlets released by the Department of Health (DOH), tidas is described as a virus that thrives well in the country due to climate change, and that it infects best when temperature levels are low.
PhilHealth: Nurses may now apply for accreditation as healthcare providers Manila Bulletin News 22nd Jan 2018
Registered nurses may now apply for accreditation with the Philippine Health Insurance Corporation (PhilHealth) as healthcare providers. “Registered nurses in the Philippines may now apply for accreditation with the Philippine Health Insurance Corporation as providers of maternity care (MCP), newborn care (NCP), and normal spontaneous delivery (NSD) packages in accredited birthing homes,” the PhilHealth said in a statement. Through Circular 2017-0023 (Revision 1), the PhilHealth called on registered nurses to become professional heath care providers for the three packages in PhilHealth-accredited birthing homes.
ICT
Philippines to develop rules on cryptocurrency trading Reuters 29th Jan 2018
The Philippines’ Securities and Exchange Commission said on Monday it is crafting rules to regulate cryptocurrency transactions to protect investors and reduce the risk of fraud. The regulation, which will cover issuance and registration of cryptocurrencies, is expected to be finalised this year, said Emilio Aquino, SEC commissioner in charge of enforcement and investor protection. “We need to act because initial coin offerings (ICOs) are sprouting especially in 2017. We want to come up with our own set of regulations,” Aquino told a news conference. “You have to be extra careful how investors in this new space are protected.” Authorities around the world, particularly in Asia, have attempted to rein in the global boom in trading bitcoin and other cryptocurrencies - a form of digital money created and maintained by its users.
PH, India ink MOU on investments, information technology Rappler 29th Jan 2018
After their bilateral meeting in New Delhi, Philippine President Rodrigo Duterte and Indian Prime Minister Narendra Modi witnessed the signing of two memoranda of understanding (MOU) – one on investments, the other on information technology. The meeting took place on Wednesday, January 24, right after Duterte arrived in India's capital. Philippine Trade Secretary Ramon Lopez and Indian Ministry of External Affairs Secretary Preeti Saran represented their countries during the exchange of the MOU on investments. The MOU was made between the Philippines' Board of Investments and Invest India. An MOU is a non-binding agreement. Malacañang did not elaborate on what type of investment or what sector the investments from India would focus on. The second MOU is on developing the information technology (IT) and business process management (BPM) industry. Made between India's National Association of Software and Services Companies and IT & Business Processing Association of the Philippines, it is an expansion of an older MOU.
Philippines is world's top social media user: study ABS-CBN News 1st Feb 2018
For the third year in a row, the Philippines emerged as the country that spent the most time on social media, according to a report by creative agency We Are Social and social media management platform Hootsuite. An average Filipino social media user spends almost 4 hours on different platforms daily followed by Brazilians and Indonesians, respectively, the report said.
DICT to seek for an extension of deadline for entry of 3rd telco provider philstar.com 24th Jan 2018
The Department of Information and Communications Technology on Wednesday said it will relay to President Rodrigo Duterte concerns over the deadline for the entry of a third telecom player after potential entrants sought for more time to prepare. In November last year, Duterte invited China to be his country’s third telecom provider that will challenge a longstanding duopoly that has angered consumers in a nation said to have the slowest internet speed in the Asia Pacific. Beijing later picked China Telecom to invest in the Philippines, backed by a consortium of Filipino businesses. A third telecom carrier is targeted to be up and running by the first quarter of 2018. During the DICT’s first public consultation for the arrival of a third telecom provider, participants pointed out that the March 2018 deadline is “too tight.” In response, DICT Officer-in-Charge and Undersecretary Eliseo Rio Jr. said his agency will ask for an extension of “two months probably, from end of March.” Aside from China Telecom, Malacañang had said South Korea’s LG Uplus Corp., Japan’s KDDI, and a Taiwanese telecom firm that was yet to be revealed were also eyeing the Philippines’ third telecom slot.
Telco towers need $5B Malay Business Insight 22nd Jan 2018
In preparation for the entry of a third or fourth telco player, the Duterte administration will tap three to four telecom tower companies which will infuse around $5 billion in building cellular towers which they will lease to new and existing telecom companies. Ramon Jacinto, presidential adviser on economic affairs and information communication technology said on Friday government will release next month the policy guidelines on common towers. Telecom operators will no longer be allowed to build towers but would instead lease from tower companies which will deploy towers to cover the entire Philippines. This would free the telecom operators from the burden of investing in the towers themselves. Jacinto said government will not bid out the contracts for the towers which would be privately-held and run. Jacinto said the country needs at least 50,000 cellular towers to cover the archipelago and provide adequate services to Filipinos.
Infrastructure
Massive infra projects start rolling this year – DOF philstar.com 1st Feb 2018
The Duterte administration’s massive infrastructure program is expected to be in full swing this year following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, according to the Department of Finance (DOF). Finance Secretary Carlos Dominguez said among the big-ticket projects that would commence this year is the Philippine National Railways (PNR) North 2 project, which would connect Metro Manila to Clark International Airport.
Government’s infrastructure push piques interest of South Korean businessmen BusinessMirror 30th Jan 2018
In a news briefing , Association of Southeast Asian Nations-Korea Centre Secretary-General Kim Young-sun said South Korea is looking to expand its areas of cooperation with the country as part of efforts to bolster bilateral ties with Asean member-states. He was joined by 12 South Korean firms looking at infrastructure opportunities in the country in its “Build, Build, Build” program. These firms are Seohyun Energy, CNNET Co. Ltd., Aju Corp., Ye Won Co. Ltd., GS E&C, Pyunghwa Engineering Consultants Ltd., K-Water, Daelim E&C, Soosung Engineering Co. Ltd., CJ Human Tech Company Ltd., Korea Electric Power Corp. and Hanjin Heavy Industries and Construction.
Funding not a problem in Duterte’s $18-billion infrastructure push, skilled labor is BusinessMirror 24th Jan 2018
President Duterte’s plan to supercharge growth with a $180-billion infrastructure program is running into a roadblock: a lot of the people he needs to build all the roads, bridges, airports and railways are working abroad. “The labor shortage is an issue that’s hounding the construction industry,’’ said Jan Paul Custodio, senior director at property consultant Santos Knight Frank in Manila. “There’s definitely a need for further skills training, now, more than ever. There needs to be a boost to any repatriation program.’’
Government to spend P4.82 trillion for 4,095 infrastructure projects | BusinessMirror BusinessMirror 18th Jan 2018
The National Economic and Development Authority (Neda) on Thursday said the national government will spend P4.82 trillion for 4,095 infrastructure projects, which are expected to create 6.27 million jobs, until 2022. In a presentation at the First Global Infrastructure Forum (GIF), Neda Undersecretary Rolando G. Tungpalan pegged the total budgetary requirement for infrastructure projects under the Public Investment Program at P7.74 trillion. Of this amount, Tungpalan said 64 percent, or P4.97 trillion, will be channeled to transportation projects. Social infrastructure projects, he said, will require P1.1 trillion.
Manufacturing
TRAIN slows factory runs in January philstar.com 2nd Feb 2018
Manufacturing slowed down in January as demand was partially hurt by the imposition of new excise taxes, according to the Nikkei Philippine Manufacturing Purchasing Managers’ Index (PMI) released yesterday. The Nikkei Philippine Manufacturing PMI registered a reading of 51.7 in January, down from 54.2 in December. This signals a modest improvement in the health of the sector, contrasting with solid expansions in recent months. The latest reading was the third lowest since the survey for the Philippines started in January 2016 but remains within expansion territory as a reading below 50 indicates decelerating business conditions. Slower growth was seen in output and new orders, said IHS Markit, the firm that collated data for the PMI. Weaker client demand resulted in spare capacity and led firms to hire less workers. Inflationary pressures also intensified, with higher costs having an adverse effect on the purchase of inputs. Socioeconomic Planning Secretary Ernesto Pernia expressed confidence that the negative effect of the Tax Reform for Acceleration and Inclusion (TRAIN) Law on consumption would last for only a couple of months as the market adjusts. The TRAIN Law, which was implemented beginning January, lowers personal income taxes resulting in higher take homes pay but imposes higher tax on fuel, automobiles, sugary beverages and tobacco.
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