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Investment pledges jump 27% in first half of 2018
MANILA, Philippines — Investments approved by the Board of Investments (BOI) are on track to reach the P680-billion target this year following a 27 percent increase in project approvals in the first semester and the expected influx of big-ticket projects in the second half.
BOI managing head Ceferino Rodolfo said in a statement yesterday the agency is on track to meet the P680-billion target for approved investments this year, 10 percent higher than the P617 billion level last year.
“We expect big-ticket projects to come in by the second half of the year. Foreign and domestic investors remain optimistic especially in view of the government’s Build Build Build and manufacturing resurgence programs,” he said.
Investment pledges reached P238.9 billion in the January to June period, up 27 percent from P188 billion the previous year.
“The impressive investment registrations with the BOI is a concrete proof of the continued confidence of both foreign and local investors in the country,” BOI chairman and Trade Secretary Ramon Lopez said.
Investment commitments from foreign sources surged 165 percent to P14.5 billion in the first semester from just P5.5 billion in the same period a year ago.
By country, Indonesia was the top source of investments to the Philippines in the first half, accounting for P6.4 billion.
Japan came in second with P2.6 billion, followed by China with P880 million.
The US (P582 million) and Italy (P486 million) were in fourth and fifth place, respectively.
Meanwhile, the power sector was the top source of investments as of end-June with P108.2 billion, 168 percent higher than last year’s P40.3 billion.
This was followed by the transportation and storage sector with P37.4 billion, which jumped 298 percent from P9.4 billion a year ago.
Construction or public-private partnership projects placed third with P32.9 billion worth of investments, followed by manufacturing with P19.8 billion and real estate with P15 billion.
For June alone, Citra Central Expressway Corp. was the biggest project registered with the BOI with an investment amount of P25.7 billion to extend the Skyway that will connect Buendia Ave. all the way to the North Luzon Expressway in Balintawak.
Other notable projects include the P1.1-billion theme park of Newscapes Haven Development Inc. in Nabas, Aklan; Hydrocor Corp.’s P990-million renewable energy project in Ifugao; the P710-million hospital project of Allegiant Regional Care Hospitals Inc. in Lapu-Lapu City in Cebu; and the P439 million mass housing project of PDB Properties Inc. in Tanauan City in Batangas.
As the Philippine economy is expected to continue to grow, Lopez said more investment opportunities would be created in infrastructure, manufacturing and services.
“With this growth, we intend to have more inclusive businesses and ensure that economic gains are spread throughout the country,” he said.
By: Louella Desiderio
Source: The Philippine Star
BOI managing head Ceferino Rodolfo said in a statement yesterday the agency is on track to meet the P680-billion target for approved investments this year, 10 percent higher than the P617 billion level last year.
“We expect big-ticket projects to come in by the second half of the year. Foreign and domestic investors remain optimistic especially in view of the government’s Build Build Build and manufacturing resurgence programs,” he said.
Investment pledges reached P238.9 billion in the January to June period, up 27 percent from P188 billion the previous year.
“The impressive investment registrations with the BOI is a concrete proof of the continued confidence of both foreign and local investors in the country,” BOI chairman and Trade Secretary Ramon Lopez said.
Investment commitments from foreign sources surged 165 percent to P14.5 billion in the first semester from just P5.5 billion in the same period a year ago.
By country, Indonesia was the top source of investments to the Philippines in the first half, accounting for P6.4 billion.
Japan came in second with P2.6 billion, followed by China with P880 million.
The US (P582 million) and Italy (P486 million) were in fourth and fifth place, respectively.
Meanwhile, the power sector was the top source of investments as of end-June with P108.2 billion, 168 percent higher than last year’s P40.3 billion.
This was followed by the transportation and storage sector with P37.4 billion, which jumped 298 percent from P9.4 billion a year ago.
Construction or public-private partnership projects placed third with P32.9 billion worth of investments, followed by manufacturing with P19.8 billion and real estate with P15 billion.
For June alone, Citra Central Expressway Corp. was the biggest project registered with the BOI with an investment amount of P25.7 billion to extend the Skyway that will connect Buendia Ave. all the way to the North Luzon Expressway in Balintawak.
Other notable projects include the P1.1-billion theme park of Newscapes Haven Development Inc. in Nabas, Aklan; Hydrocor Corp.’s P990-million renewable energy project in Ifugao; the P710-million hospital project of Allegiant Regional Care Hospitals Inc. in Lapu-Lapu City in Cebu; and the P439 million mass housing project of PDB Properties Inc. in Tanauan City in Batangas.
As the Philippine economy is expected to continue to grow, Lopez said more investment opportunities would be created in infrastructure, manufacturing and services.
“With this growth, we intend to have more inclusive businesses and ensure that economic gains are spread throughout the country,” he said.
By: Louella Desiderio
Source: The Philippine Star
Taiwanese firm to bring cutting-edge manufacturing tech to PH
Cal-Comp Technology (Philippines), Inc., the local arm of global tech conglomerate New Kinpo Group (NKG), is looking to bring artificial intelligence, robotics, and other cutting-edge technology to the Philippines.
These manufacturing technologies are intended to boost the capabilities of Filipino industries. According to NKG and Cal-Comp Technology CEO Simon Shen, the company can produce technologically advanced products through its state-of-the-art equipment and automation capabilities.
"Although we rely on almost 10,000 employees in the Philippines alone, we use automated equipment to help us speed up our manufacturing process. This is vital in keeping our customers satisfied with product quality and reaching our output targets," says Shen.
Cal-Comp Technology also has real-time monitoring capability. Their Virtual Factory System monitors the entire manufacturing process and inventory. It utilizes bar codes to trace raw materials and monitor quality, making it easy to detect defects in products and equipment. The system also provides engineers with automatic alerts, which allow them to address any potential production issues quickly.
For its production breakthroughs, Cal-Comp Technology, through NKG, has been recognized by different organizations for consistently upholding manufacturing standards in its facilities worldwide.
NKG has received the Taiwan National Quality Award, the highest honor for quality given. It was also awarded the Prime Minister Quality Award in Thailand.
To fund their expansion plans, Cal-Comp Technology is slated to have their initial public offering (IPO) in the local bourse later this year.
"In order for us to offer our own products to the Philippines, we will expand our footprint here and boost our production capacity. This will allow us to better serve Filipinos’ needs for new and advanced technology, given the country’s adeptness and affinity for electronic devices," Shen added.
These manufacturing technologies are intended to boost the capabilities of Filipino industries. According to NKG and Cal-Comp Technology CEO Simon Shen, the company can produce technologically advanced products through its state-of-the-art equipment and automation capabilities.
"Although we rely on almost 10,000 employees in the Philippines alone, we use automated equipment to help us speed up our manufacturing process. This is vital in keeping our customers satisfied with product quality and reaching our output targets," says Shen.
Cal-Comp Technology also has real-time monitoring capability. Their Virtual Factory System monitors the entire manufacturing process and inventory. It utilizes bar codes to trace raw materials and monitor quality, making it easy to detect defects in products and equipment. The system also provides engineers with automatic alerts, which allow them to address any potential production issues quickly.
For its production breakthroughs, Cal-Comp Technology, through NKG, has been recognized by different organizations for consistently upholding manufacturing standards in its facilities worldwide.
NKG has received the Taiwan National Quality Award, the highest honor for quality given. It was also awarded the Prime Minister Quality Award in Thailand.
To fund their expansion plans, Cal-Comp Technology is slated to have their initial public offering (IPO) in the local bourse later this year.
"In order for us to offer our own products to the Philippines, we will expand our footprint here and boost our production capacity. This will allow us to better serve Filipinos’ needs for new and advanced technology, given the country’s adeptness and affinity for electronic devices," Shen added.
NKG developed Automated Guided Vehicles (AVGs) to handle its logistics and materials in all its facilities. This technology eliminates the need for human assistance, thereby making processes more efficient. AVGs transfer raw materials from warehouses to production and assembly lines, as well as transport finished products from production lines to its temporary storage facilities before shipment to customers.
US sees Philippines as next candidate for FTA
NEW YORK -- The U.S. is scouting out favorable terrain for free trade agreements and sees the Philippines as possibly the next candidate, Trade Representative Robert Lighthizer said at a congressional hearing in Washington on Thursday.
"We are close to beginning negotiations," Lighthizer told senators, adding that a number of East Asian countries are interested in an FTA with the U.S. "One that we particularly liked is the Philippines. I think it would be a good first agreement." He noted that the country was in a good location and "there are a lot of advantages."
Lighthizer said the U.S. is also looking to Japan for an FTA, though he added that the Japanese government has so far not been receptive to the idea.
"Right now it is the Japanese position that they don't want to enter a new FTA agreement with the United States," Lighthizer said. "But they're willing to work through a variety of issues, and that's something that we would expect to do."
Japan has previously expressed its distaste for an FTA, preferring multilateral frameworks like the Trans-Pacific Partnership negotiated under the administration of former U.S. President Barack Obama.
Almost immediately after taking office in 2017, President Donald Trump withdrew the U.S. from the TPP, announcing a strategy of "free, fair and reciprocal trade" through bilateral renegotiations of what he deemed to be unfair agreements. "It's the president's policy," Lighthizer said at Thursday's hearing. "When [Trump] decided he did not want to stay in the TPP [he said] that he would negotiate FTAs with other countries in that region as well as in other areas."
Japan and the other 10 remaining countries of the original TPP have since renegotiated an alternative deal known as the TPP-11.
Lighthizer said he expects to meet with his Japanese counterpart Toshimitsu Motegi within the next 30 days. He suggested that the session would address "a fairly aggressive agenda."
"We have had a chronic trade deficit with Japan," Lighthizer said at Thursday's hearing, though he described the U.S.-Japanese relationship as "very good." He suggested that he would bring up "unfair barriers" to U.S. exports, including beef, in his meeting with Motegi.
By: Ariana King
Source: Nikkei
"We are close to beginning negotiations," Lighthizer told senators, adding that a number of East Asian countries are interested in an FTA with the U.S. "One that we particularly liked is the Philippines. I think it would be a good first agreement." He noted that the country was in a good location and "there are a lot of advantages."
Lighthizer said the U.S. is also looking to Japan for an FTA, though he added that the Japanese government has so far not been receptive to the idea.
"Right now it is the Japanese position that they don't want to enter a new FTA agreement with the United States," Lighthizer said. "But they're willing to work through a variety of issues, and that's something that we would expect to do."
Japan has previously expressed its distaste for an FTA, preferring multilateral frameworks like the Trans-Pacific Partnership negotiated under the administration of former U.S. President Barack Obama.
Almost immediately after taking office in 2017, President Donald Trump withdrew the U.S. from the TPP, announcing a strategy of "free, fair and reciprocal trade" through bilateral renegotiations of what he deemed to be unfair agreements. "It's the president's policy," Lighthizer said at Thursday's hearing. "When [Trump] decided he did not want to stay in the TPP [he said] that he would negotiate FTAs with other countries in that region as well as in other areas."
Japan and the other 10 remaining countries of the original TPP have since renegotiated an alternative deal known as the TPP-11.
Lighthizer said he expects to meet with his Japanese counterpart Toshimitsu Motegi within the next 30 days. He suggested that the session would address "a fairly aggressive agenda."
"We have had a chronic trade deficit with Japan," Lighthizer said at Thursday's hearing, though he described the U.S.-Japanese relationship as "very good." He suggested that he would bring up "unfair barriers" to U.S. exports, including beef, in his meeting with Motegi.
By: Ariana King
Source: Nikkei
Taiwan’s New Kinpo Group names Philippines its southeast Asia manufacturing hub
TAIPEI (Taiwan News) – Taiwan electronics conglomerate, New Kinpo Group (NKG, 新金寶集團) will make the Philippines its southeast Asia manufacturing hub through funds raised by an initial public offering (IPO) of its Philippines arm, Cal-Comp Technology (Philippines) Inc.
NKG plans to build two new manufacturing facilities, buy new equipment and invest in research and development in the Philippines, through an IPO estimated to be worth PHP$6.77 billion (NTD$3.86 billion).
NKG is transforming the Philippines into its regional hub because the company is optimist about the Philippines' economic future.
"We are ramping up investments in the Philippines because we believe in the country's economic potential." NKG Chief Executive Officer Simon Shen (沈軾榮) said in a statement, according to BusinessWorld.
The move takes place as NKG winds down its manufacturing in China, and follows a trend of the Taiwanese company moving its manufacturing bases from China to the Philippines.
NKG opened its first Philippines electronics factory in April 2015, employing over 8,000 people as the company began to roll-back its manufacturing in China.
At the time, Shen said "we were early to see manufacturing potential in the Philippines, with sufficient labor talent, a stable political environment and proper infrastructure, and will bring additional business here in the future as the conditions are ideal for EMS [electronics manufacturing service] companies like New Kinpo Group" in a press statement.
The IPO has been filed with the Philippines' Securities and Exchange Commission, with 378.07 million shares available to the public by the end of the year.
By: Scott Morgan
Source: Taiwan News
Photo: New Kinpo Group Website
NKG plans to build two new manufacturing facilities, buy new equipment and invest in research and development in the Philippines, through an IPO estimated to be worth PHP$6.77 billion (NTD$3.86 billion).
NKG is transforming the Philippines into its regional hub because the company is optimist about the Philippines' economic future.
"We are ramping up investments in the Philippines because we believe in the country's economic potential." NKG Chief Executive Officer Simon Shen (沈軾榮) said in a statement, according to BusinessWorld.
The move takes place as NKG winds down its manufacturing in China, and follows a trend of the Taiwanese company moving its manufacturing bases from China to the Philippines.
NKG opened its first Philippines electronics factory in April 2015, employing over 8,000 people as the company began to roll-back its manufacturing in China.
At the time, Shen said "we were early to see manufacturing potential in the Philippines, with sufficient labor talent, a stable political environment and proper infrastructure, and will bring additional business here in the future as the conditions are ideal for EMS [electronics manufacturing service] companies like New Kinpo Group" in a press statement.
The IPO has been filed with the Philippines' Securities and Exchange Commission, with 378.07 million shares available to the public by the end of the year.
By: Scott Morgan
Source: Taiwan News
Photo: New Kinpo Group Website
Duterte OKs Palayan City Hub as IT park
PALAYAN CITY — The business hub here, designed to house a government center and call centers for 12,000 agents, is now officially an information technology park (ITP).
President Rodrigo Duterte issued Proclamation No. 526 on June 25 designating the 3-ha complex as an ITP to be known as the Palayan City Government Center and Business Hub (PCBH) as endorsed by the board of the Philippine Economic Zone Authority (Peza).
Peza Director General Charito Plaza and Alloy MTD Philippines President Nicholas David signed the documents that formally recognized PCBH as a special economic zone during rites held at the Peza office in Taguig City on Friday
Successful PPP
Alloy MTD, a Malaysian conglomerate, developed and built the PCBH, including two buildings reserved for business process outsourcing firms, under a public-private partnership (PPP) deal.
Alloy MTD will operate the Palayan hub for 30 years.
“This IT park will serve as the catalyst for the much-awaited employment generation and economic progress of Nueva Ecija province and Palayan City,” said Mayor Rhianne Cuevas in her speech during the signing ceremonies.
She announced the entry of BPO Sutherland Global Services which will start operations in September with 700 seats to be ramped up to 1,750 seats by June 2019.
Gov’t center
An outbound call center is also currently operating at PCBH.
The park is a four-building complex. Two buildings were especially built for BPO operations. Another building is the government center which houses the Philippine Overseas Employment Administration’s One-Stop-Shop.
The government center will soon house provincial offices of the Department of Labor and Employment, Technical Education and Skills Development Authority, Department of Information and Communications and Bureau of Immigration.
Cuevas said the PCBH is also a hub for schools that offer information technology, computer proficiency, BPO management courses and short courses for overseas workers.
The Capital Hotel at the hub, with 75 fully furnished rooms, will be fully operational in September to serve expatriates with transactions at the PCBH.
Thanking Digong
Mayor Cuevas, in a statement, said she was grateful to the President “who saw the urgent need for the development of rural areas.”
She also credited Sen. Richard Gordon, brains behind the conversion of former US bases into commercial areas, with inspiring the pursuit of development projects for her city and Nueva Ecija province.
She also thanked MTD Alloy which “had taken the first step to invest in our city and put trust in our people.” —Armand Galang.
Source: Philippine Daily Inquirer
Photo: Philippine Daily Inquirer
President Rodrigo Duterte issued Proclamation No. 526 on June 25 designating the 3-ha complex as an ITP to be known as the Palayan City Government Center and Business Hub (PCBH) as endorsed by the board of the Philippine Economic Zone Authority (Peza).
Peza Director General Charito Plaza and Alloy MTD Philippines President Nicholas David signed the documents that formally recognized PCBH as a special economic zone during rites held at the Peza office in Taguig City on Friday
Successful PPP
Alloy MTD, a Malaysian conglomerate, developed and built the PCBH, including two buildings reserved for business process outsourcing firms, under a public-private partnership (PPP) deal.
Alloy MTD will operate the Palayan hub for 30 years.
“This IT park will serve as the catalyst for the much-awaited employment generation and economic progress of Nueva Ecija province and Palayan City,” said Mayor Rhianne Cuevas in her speech during the signing ceremonies.
She announced the entry of BPO Sutherland Global Services which will start operations in September with 700 seats to be ramped up to 1,750 seats by June 2019.
Gov’t center
An outbound call center is also currently operating at PCBH.
The park is a four-building complex. Two buildings were especially built for BPO operations. Another building is the government center which houses the Philippine Overseas Employment Administration’s One-Stop-Shop.
The government center will soon house provincial offices of the Department of Labor and Employment, Technical Education and Skills Development Authority, Department of Information and Communications and Bureau of Immigration.
Cuevas said the PCBH is also a hub for schools that offer information technology, computer proficiency, BPO management courses and short courses for overseas workers.
The Capital Hotel at the hub, with 75 fully furnished rooms, will be fully operational in September to serve expatriates with transactions at the PCBH.
Thanking Digong
Mayor Cuevas, in a statement, said she was grateful to the President “who saw the urgent need for the development of rural areas.”
She also credited Sen. Richard Gordon, brains behind the conversion of former US bases into commercial areas, with inspiring the pursuit of development projects for her city and Nueva Ecija province.
She also thanked MTD Alloy which “had taken the first step to invest in our city and put trust in our people.” —Armand Galang.
Source: Philippine Daily Inquirer
Photo: Philippine Daily Inquirer
Biggest-ever FoodPhilippines participation returns to the Taipei International Food Show with 17 companies.
Manila Economic and Cultural Office Chairman and Resident Representative Angelito Tan Banayo (in Khaki Suit), Vice Chairman Gilberto F. Lauengco (to Chairman Banayo’s right) and Philippine Trade and Investment Center in Taipei Trade Representative and Director for Commercial Affairs Michael Alfred V. Ignacio (at Chairman Banayo’s left, in blue suit), led company owners and representatives at the simple opening ceremony and ribbon-cutting of the FoodPhilippines Pavilion at the Taipei International Food Show 2018 in Taipei.
27 June 2018, Taipei - The Department of Trade and Industry (DTI), the Center for International Trade Expositions and Missions (CITEM) and its representative office in Taiwan, the Philippine Trade and Investment Center in Taipei and the Manila Economic and Cultural Office look to drive up more export oppor- tunities in the international food market as it returns to the 28th Taipei International Food Show (TIFS), popularly known as FOOD Taipei, on June 27-30, 2018, at the Taipei Nangang Exhibition Center, Taipei City, Taiwan.
Last year, Philippine food companies generated US$23.4 million worth of export sales in the event. Sixteen firms forming the Philippine delegation in TIFS 2017 surpassed the target sales of US$22 million and exceeded the previous US$21.58 sales generated in 2016 by 8.4 percent.
For this year’s participation, DTI-CITEM is eyeing to generate US$25 million worth of export sales as it seeks to bring 17 strategically selected companies and brands that have most potential for targeting the mainstream Taiwanese market.
Organized by the Taiwan External Trade Development Council (TAITRA), FOOD Taipei is consid- ered as one of Asia’s leading food shows that links the entire food industry supply chain in Taiwan, other countries and economies—from agriculture and aquaculture, refrigeration, processed food, food machinery, packaging and packaging equipment.
Held for 28 years, it has established itself as a premier strategic platform for industry players to showcase their products in Taiwan and other overseas markets. The four-day event is held in con- junction with TAIPEI PACK, FOODTECH & PHARMATECH TAIPEI, TAIWAN HORECA and HALAL TAIWAN.
“Aside from the Taiwanese market, FOOD Taipei is also a great platform to target other global buy- ers as it gathers importers, wholesalers, distributors, hotel owners and representatives, restaurant and bakery owners and online retailers from China, Japan, Hong Kong, Malaysia, the US and Sin- gapore, among others” said Terrado.
In 2017, it was participated by 1,717 exhibitors with a total of 4,011 booths, including participating representatives from 36 countries to cover every link of the supply chain in Taiwan.
“For this year’s participation, we look to further strengthen our market foothold in Taiwan which is known for its diverse culinary culture. It also has a high demand for agri-commodities and tropical food products that are abundant in the Philippines,” explained Terrado.
Among the Philippines’s best sellers in the event were ready-to-drink tropical fruit juices and pre- serves; canned tuna; coconut products, such as virgin coconut oil, coconut cream, sugar and medium chain triglycerides (MCT); muscovado sugar in powder form and rock form; banana chips; soft-serve ice cream mix, cones and waffles; and herbal tea, MX3 coffee and food supplements.
Based on the data of the Philippine Statistics Authority, Taiwan is the Philippines’ 8th largest trad- ing partner, 10th largest export market, 8th biggest source of imports, as well as the 2nd biggest foreign direct investor as of 2017.
According to Euromonitor, retail sales in the packaged food market in Taiwan were estimated to reach over US$7.6 billion in 2016, representing a growth rate of 11.7% or over US$797 million since 2012. By the year 2021, retail sales in the packaged food market in Taiwan is expected to reach over US$8.7 billion.
According to the Ministry of Economic Affairs, Department of Statistics, retail sales in Taiwan in 2015 were $38.3 billion, a 3.8% increase over 2014. In 2015, convenience stores generated US$9.8 billion sales, followed by hypermarkets' US$6.1 billion, supermarkets’ US$6 billion and other outlets including wet markets, mom-and-pop stores and e-commerce sales amounting to US$5.8 billion.
...
FoodPhilippines in Food Taipei is a branding initiative of CITEM, the export promotion arm of DTI together with the Manila Economic and Cultural Office (MECO) and its commercial affairs section, the Philippine Trade and Investment Center in Taipei. It spearheads the efforts of the government in promoting the Philippines as a source of quality food products in the global market.
This participation is undertaken in cooperation with the Export Marketing Bureau of DTI.
Last year, Philippine food companies generated US$23.4 million worth of export sales in the event. Sixteen firms forming the Philippine delegation in TIFS 2017 surpassed the target sales of US$22 million and exceeded the previous US$21.58 sales generated in 2016 by 8.4 percent.
For this year’s participation, DTI-CITEM is eyeing to generate US$25 million worth of export sales as it seeks to bring 17 strategically selected companies and brands that have most potential for targeting the mainstream Taiwanese market.
Organized by the Taiwan External Trade Development Council (TAITRA), FOOD Taipei is consid- ered as one of Asia’s leading food shows that links the entire food industry supply chain in Taiwan, other countries and economies—from agriculture and aquaculture, refrigeration, processed food, food machinery, packaging and packaging equipment.
Held for 28 years, it has established itself as a premier strategic platform for industry players to showcase their products in Taiwan and other overseas markets. The four-day event is held in con- junction with TAIPEI PACK, FOODTECH & PHARMATECH TAIPEI, TAIWAN HORECA and HALAL TAIWAN.
“Aside from the Taiwanese market, FOOD Taipei is also a great platform to target other global buy- ers as it gathers importers, wholesalers, distributors, hotel owners and representatives, restaurant and bakery owners and online retailers from China, Japan, Hong Kong, Malaysia, the US and Sin- gapore, among others” said Terrado.
In 2017, it was participated by 1,717 exhibitors with a total of 4,011 booths, including participating representatives from 36 countries to cover every link of the supply chain in Taiwan.
“For this year’s participation, we look to further strengthen our market foothold in Taiwan which is known for its diverse culinary culture. It also has a high demand for agri-commodities and tropical food products that are abundant in the Philippines,” explained Terrado.
Among the Philippines’s best sellers in the event were ready-to-drink tropical fruit juices and pre- serves; canned tuna; coconut products, such as virgin coconut oil, coconut cream, sugar and medium chain triglycerides (MCT); muscovado sugar in powder form and rock form; banana chips; soft-serve ice cream mix, cones and waffles; and herbal tea, MX3 coffee and food supplements.
Based on the data of the Philippine Statistics Authority, Taiwan is the Philippines’ 8th largest trad- ing partner, 10th largest export market, 8th biggest source of imports, as well as the 2nd biggest foreign direct investor as of 2017.
According to Euromonitor, retail sales in the packaged food market in Taiwan were estimated to reach over US$7.6 billion in 2016, representing a growth rate of 11.7% or over US$797 million since 2012. By the year 2021, retail sales in the packaged food market in Taiwan is expected to reach over US$8.7 billion.
According to the Ministry of Economic Affairs, Department of Statistics, retail sales in Taiwan in 2015 were $38.3 billion, a 3.8% increase over 2014. In 2015, convenience stores generated US$9.8 billion sales, followed by hypermarkets' US$6.1 billion, supermarkets’ US$6 billion and other outlets including wet markets, mom-and-pop stores and e-commerce sales amounting to US$5.8 billion.
...
FoodPhilippines in Food Taipei is a branding initiative of CITEM, the export promotion arm of DTI together with the Manila Economic and Cultural Office (MECO) and its commercial affairs section, the Philippine Trade and Investment Center in Taipei. It spearheads the efforts of the government in promoting the Philippines as a source of quality food products in the global market.
This participation is undertaken in cooperation with the Export Marketing Bureau of DTI.
Tanduay dislodges Bacardi as world’s No. 1 rum
Taipan Lucio Tan’s Tanduay was named the best-selling rum in the world, edging out rival Bacardi and slew of other international brands.
The liquor firm, which undertook high-profile marketing initiatives including a partnership with National Basketball Association team Golden State Warriors, said its newfound status was based on a ranking released by think tank Drinks International.
“We have a great product to offer the world and the world finally recognized it,” said Lucio Tan, Jr., president and CEO of Tanduay Distillers Inc.
Officials held a press conference on Wednesday to announce the milestone, which was part of Drinks International’s “definitive ranking of the world’s million-case rum brands.”
Tanduay was followed in rank by Bacardi and McDowell’s No. 1 Celebration.
Gerry Tee, head of distillery operations, noted that Tanduay was proud of dislodging previous industry leader, Bacardi.
“It’s now our time,” Tee said.
Tanduay’s success came despite a string of challenges, including rising competition and the excise taxes implemented in 2013, said chief financial officer Nestor Mendones.
“We were able to attain this number one position despite the very difficult operating environment that the liquor industry encountered since 2013, when the govt decided to increase excise taxes by more than 100 percent,” Mendones said.
By: Miguel R. Camus , June 14, 2018
Source: Philippine Daily Inquirer
Photo: Philippine Daily Inquirer
The liquor firm, which undertook high-profile marketing initiatives including a partnership with National Basketball Association team Golden State Warriors, said its newfound status was based on a ranking released by think tank Drinks International.
“We have a great product to offer the world and the world finally recognized it,” said Lucio Tan, Jr., president and CEO of Tanduay Distillers Inc.
Officials held a press conference on Wednesday to announce the milestone, which was part of Drinks International’s “definitive ranking of the world’s million-case rum brands.”
Tanduay was followed in rank by Bacardi and McDowell’s No. 1 Celebration.
Gerry Tee, head of distillery operations, noted that Tanduay was proud of dislodging previous industry leader, Bacardi.
“It’s now our time,” Tee said.
Tanduay’s success came despite a string of challenges, including rising competition and the excise taxes implemented in 2013, said chief financial officer Nestor Mendones.
“We were able to attain this number one position despite the very difficult operating environment that the liquor industry encountered since 2013, when the govt decided to increase excise taxes by more than 100 percent,” Mendones said.
By: Miguel R. Camus , June 14, 2018
Source: Philippine Daily Inquirer
Photo: Philippine Daily Inquirer
Filipino start-ups shine at COMPUTEX 2018 in Taiwan
MANILA, Philippines — A group of Filipino start-up companies excelled this year at Asia’s largest and longest-running tech trade show, COMPUTEX 2018, held from June 5 to 9 in Taipei, Taiwan, showing off their tech innovations to potential investors, suppliers, and consumers from around the world.
The Philippine contingent was the first-ever organized by the Manila Economic and Cultural Office (MECO), through the effort of its commercial affairs section, the Philippine Trade and Investment Center Taipei (PTIC), under the banner of Slingshot Philippines, the Department of Trade and Industry’s (DTI) flagship annual national start-up event initiative aimed at fast-tracking the development of Filipino start-up companies.
The Slingshot Philippines Pavilion opened at the InnoVEX event at COMPUTEX 2018, where start-up companies from all over the world were gathered to showcase their products and innovations to around 40,000 visitors from the global market. MECO Chairman and Resident Representative Angelito Banayo opened the booth to the public during a ribbon-cutting ceremony on June 6.
OneWatt co-founder and CEO Emmanuel Beata (fourth from left) presents the two special awards he received from Delta Electronics and Taiwanese start-up incubator Start-up Terrace as one of the eight finalists in the InnoVEX Pitching Competition. Ross Fallorina/QBo“Taiwan is a global hotbed of high tech, leading-edge innovation and a global production hub for
“Taiwan is a global hotbed of high tech, leading-edge innovation and a global production hub for ICT and we deem it very important for the Philippine startup community to be well-represented at InnoVEX and COMPUTEX in Taiwan this year. MECO fully supports our tech entrepreneurs and our startup community and will continue to organize a series of sustainable events that will be valuable for development and market success,” said Banayo.
PTIC Trade Representative and MECO Director for Commercial Affairs Michael Alfred Ignacio first proposed the idea of sending a Filipino start-up delegation to COMPUTEX in October 2017, with the aim of inspiring the Filipino start-up community to expand overseas, encourage greater investment in the Philippines from Taiwan and other countries, promote closer cooperation in technology and enterprise between the Philippines and Taiwan, and enable Filipino start-ups to meet with venture capitalists and angel investors at COMPUTEX.
“Start-ups are in themselves, MSMEs, albeit characterized by their high levels of innovation, technology advantages and potential to commercialize. In addition, startups have a role to play in supporting traditional MSMEs in reaching their markets faster and leading the way for an innovation-led business mindset,” said Ignacio.
In organizing the delegation and selecting its participants, the two government agencies collaborated with a public-private partnership incubator called QBo, which a partnership between DTI and Ideaspace Foundation. It aims to establish a globally competitive start-up community in the Philippines by providing several support services to start-up companies such as co-working spaces and consultation services and organizes introductory classes, workshops and networking events to link them to potential investors.
One of the start-ups that particularly excelled this year is One Watt, a company that develops handy acoustic sensors that can be easily installed in a factory to listen for signs of machine defect or damage. Data collected from these sensors is fed to an artificial intelligence software that determines the kind of damage, thereby helping manufacturing companies schedule and conduct maintenance work on their machine. The company joined InnoVEX’s pitching competition and is the only Filipino company out of eight companies from the US, China and Taiwan to make it to the finals, where it won a Special Prize worth $10,000 from Delta Electronics Inc. and another $60,000 Special Prize and one-year incubation stay in Taiwan from Start-up Terrace, a Taiwanese start-up incubator.
“I’m just surprised that the company won two special awards given that our competitors are highly experience and well-funded start-ups. It only means that there is really a need for our product and that people see its importance,” said OneWatt co-founder and CEO Emmanuel Bueta, who added that the company has already partnered with three companies in The Netherlands and one in the Philippines for the use of the device.
Another potentially groundbreaking innovation comes from Futuristic Aviation and Maritime Enterprise Systems (FAME), which develops affordable transponders for use in general aviation and maritime industries. The battery-power transponder, which can be charged through solar or wind energy, has found vast commercial applications in the fishing industry.
“Tracking fishing vessels especially during inclement weather has been a perennial problem in the Philippines. But most of our fisherfolk can’t afford expensive transponders to comply with Philippine regulations. With this inexpensive device, the vessel can already send its position using a radio frequency, and using a gateway, monitors can already track the vessel via the LoRa wireless communication technology,” said Arcelio “Junjun” Fetizanan Jr., CEO of FAME. At InnoVEX, Fetizanan has already found a partner in Taiwan to manufacture plastic casings for his transponders cheaper than what it presently costs.
Also attracting significant attention from the InnoVEX crowd is AdMov, which uses facial recognition and artificial intelligence to personalize advertising inside Transportation Network Vehicular Service (TNVS) providers like Uber and Grab. The software, installed in tablets mounted inside TNVS vehicles, is used to determine the age, gender, and mood of the passenger. This data is then used to personalize advertising content presented in the tablet to match the passenger’s preference, helping advertisers save costs through efficient ad targeting.
The Slingshot Philippines booth also featured other groundbreaking innovations to thousands of visitors at InnoVEX. Pushkart.ph, an ecommerce company that specializes in online door-to-door grocery deliveries, is looking for investors to help it expand in the Philippine market. The company already delivers groceries to hundreds of clients in Metro Manila, Cavite and Rizal and hopes to widen its distribution area.
Meanwhile, online energy platform Exora is shaping the way electricity is sold in the country. Its online platform bridges large and small electricity suppliers to hundreds of industrial and enterprise consumers nationwide and enables them to bid on power supply contracts. It aims to encourage more competition in the power supply sector, enable independent power producers to reach more markets, and allows consumers to have more options in choosing their electricity provider.
For the shared services industry, tech start-up InnoVantage has developed an enterprise-grade assistive intelligent chatbot available in both private and public cloud which enterprises can use along with other messaging applications. The chatbot can analyze data gathered from customer queries in Facebook and other platforms and use it to respond to customer queries in times when service agents cannot respond with a more client-specific answer, enabling companies to readily respond to client needs round the clock, thereby increasing their productivity and enabling faster business processes.
With the success of the Slingshot Philippines delegation at this year’s COMPUTEX, the MECO and the PTIC plans organize an even larger delegation next year and attract more Filipino start-ups to join and take advantage of opportunities at Asia’s largest tech trade show. COMPUTEX is organized yearly by the Taiwan External Trade Development Council (TAITRA) and the Taiwan Computer Association (TCA).
by: Epi Fabonan III, June 11, 2018
Source: The Philippine Star
Photos from: The Philippine Star
FoodPhilippines City'Super June In-Store Promotion
bringing Philippine food products to the mainstream Taiwanese market
The FoodPhilippines In-Store Promotion launch and ribbon-cutting event was held today to kick off a month long feature of some of the Philippines’ best food and beverage products at City Super’s flagship store in DunHua today. This is part of PTIC Taipei’s efforts to bring Philippine food products to the mainstream Taiwanese market.
Manila Economic and Cultural Office Chairman and Resident Representative Angelito T. Banayo, PTIC Taipei Trade Representative and MECO Directorof Commercial Affairs Michael Alfred Ignacio and City` Super President Mr. Tony Liu along with top City Super Executives officiated the ribbon-cutting and launch ceremony.
Philippine products with best potential for successful entry into the Taiwanese mainstream were strategically selected to pave the way for other products to follow suit. Among these products and brands were Century Tuna, Destileria Limtuaco, Mama Sita, San Miguel Beer, Selecta Ice Cream, Monde Nissin, Oishi, Universal Robina and Michelle’s Banana Chips.
FoodPhilippines at City’ Super is part of MECO’s consistent efforts to promote Philippine products in Taiwan throughout the month of June in celebration of the Philippine National Independence Day, culminating in an impressive Philippine Pavilion and representation at the Taipei International Food Show 2018 later this month.
Build, Build, Build to highlight infrastructure, transportation and connectivity
MANILA, Philippines — If you’ve seen the copious construction and infrastructure projects that seem to be spurting out in numerous locations in the city, you are no stranger to the Build, Build, Build program of the current administration. You may have heard or read about it, googled, even ranted about it. But what is it exactly and what does it mean for the country and its economic activity?
The Build, Build, Build program is the centerpiece of the administration’s claim to reduce poverty incidence from today’s 21.6 percent to 14 percent by 2022. It is designed to modernize the country’s infrastructure backbone by rolling out 75 flagship projects with a combined worth of $36 billion in investments. The project seeks to uplift the lives of more than six million Filipinos to set the economy securely on the road to upper middle income status by 2022 and to a high-income one by 2040.
While some critics have questioned the financial sustainability of the ambitious undertaking, the government primarily eyes the enactment into law of the Tax Reform for Acceleration and Inclusion Act (TRAIN) to secure its steady revenue flow, totaling a P786 billion over the medium term. This, ideally combined with a prudent fiscal management and the declining debt service payments, is hoped to make this ambitious infrastructure buildup financially feasible.
According to Finance Undersecretary Grace Karen Singson, the national budget program for 2018 has so far earmarked P1.1 trillion for infrastructure development with the budgets of the Department of Public Works and Highways (DPWH) and Department of Transportation (DOTr) growing by 40.3 percent and 24.3 percent, respectively.\
In addition, there are also aid and investment pledges from China and Japan amounting to $7.3 billion in soft loans and another $1.2 billion from Tokyo, which will be spent on construction, the rebuilding efforts in Marawi City and reinforcing the country’s maritime capabilities.
Essentially, the 75 flagship projects consist of six airports, nine railways, three bus rapid transits, 32 roads and bridges, and four seaports that seek to bring down the costs of production, improve rural incomes, encourage countryside investments, make the movement of goods and people more efficient, and most importantly, create a projected 1.7 million jobs by 2022.
A major focus is also placed on airport constructions and a more efficient management system to further decongest the passenger flow and ensure a better travel experience of locals and tourists alike. Thus, numerous airports are strategically being built and renovated to improve passenger travel and services in the country. There is the Puerto Princesa Airport, designed to accommodate 1.9 million passengers daily; the New Bohol (Panglao) Airport that aims to attract 1.9 million passengers; the Mactan Cebu International Airport that will service 12 million passengers, and a new Bicol International Airport that hopes to decongest the crowded Legazpi airport and boost tourist arrivals to make Albay an economic powerhouse.
The Night Rating of existing airports in Naga, Dumaguete, Dipolog, Cotabato, Tuguegarao, Cauayan, Pagadian and Ozamis are also listed under the infrastructure program. Once completed, the night-landing capabilities are projected to enable the mentioned airports in accommodating flights even after sunset. To ensure on-time flight arrivals and departures, and further improve the air traffic control management in the country, a Communication Navigation Surveillance/Air Traffic Management System (CNS/ATM) was completed in December 2017.
Another key focus of the Build, Build, Build program is the worsening traffic in major choke points of the city. To address this, several key projects were proposed, some of which have been recently completed and are now operational:
NAIA Expressway Phase II
May 1, 2011 – April 1, 2017
Php 20,450,000,000 - Public-Private Partnership (PPP)
A four-lane, 7.75-kilometer elevated expressway and 2.22-kilometer at-grade feeder road that will provide access to NAIA Terminals I, II and III, and link the Skyway and the Manila-Cavite Toll Expressway. It starts at the existing Skyway then follows the existing road alignments over Sales Avenue, Andrews Avenue, Domestic Road and NAIA Road, and has entry/exit ramps at Roxas Boulevard, Macapagal Boulevard and PAGCOR City.
NLEX - SLEX Connector Road
May 6, 2010 – April 30, 2021
Php 23,302,000,000 - Public-Private Partnership (PPP)
A four-lane, eight-kilometer elevated expressway over the Philippine National Railway (PNR) right of way that starts from C3 Road in Caloocan through Manila crossing España towards PUP, Sta. Mesa connecting Metro Manila Skyway Stage 3 (MMSS3). Once completed, it is expected to decongest traffic in Metro Manila by providing an alternative to C-5 Road, and cut the travel time between NLEX and SLEX to 15-20 minutes, which today takes more than an hour. At present, a Notice of Award was already issued to Manila North Tollways Corporation (MNTC) and the coordination meeting for the Design Phase is currently being conducted.
Cavite-Laguna Expressway
Jan. 3, 2005 – July 31, 2020
Php 35,682,000,000 - Public-Private Partnership (PPP)
A four-lane, 44.20-kilometer closed-system tolled expressway connecting CAVITEX and SLEX that will have interchanges in eight locations namely, Kawit, Open Canal, Governor’s Drive, Aguinaldo Highway, Silang East, Sta. Rosa-Tagaytay Rd., Laguna Blvd. and Technopark.
Metro Cebu Expressway
Jan. 8, 2018 – Project Development
Php 18,016,000,000 - General Appropriations Act (GAA)
A 73.75-kilometer highway with two-kilometer tunnel that is divided into three segments: Talisay-Cebu City-Mandaue, Consolacion-Liloan-Compostela-Danao, and Naga-Minglanilla.
Modernization of RORO Transport System in the Philippines
Sept. 1, 2017 – Dec. 1, 2018
Php 5,700,550,000 - General Appropriations Act (GAA)
A nationwide project on modernizing the transport system in the three major nautical highways (Western, Central and Eastern) and other existing RORO routes. At present, the enactments of pertinent regulations prior to project implementation (EO 909, EO 226, and RA 9337) are ongoing.
PNR North 2
Nov. 30, 2016 – Project Development
Php 150,000,000,000 - Official Development Assistance (ODA)
A 69.5-kilometer mass transportation railway that will extend PNR North 1, connecting NCR with Clark International Airport and New Clark City that will enable a one-way travel time of 56 minutes between Manila and Clark International Airport (CIA), supporting the development of CIA as a major air transport hub. PNR North 2 will be seamlessly integrated with PNR North 1 and PNR South Commuter. PNR North 2 will be an electrified, fully elevated, standard-gauge railway that will ensure seamless interoperability for the entire Philippine railway.
PNR South Commuter (Manila to Bicol)
Feb. 12, 2014 – Dec. 1, 2021
Php 134,000,000,000 - Official Development Assistance (ODA)
A 653-kilometer rail line designed to accommodate around 400,000 passengers per day in its opening year, PNR South Commuter will be a dual-track, electrified, standard-gauge railway with elevated, at-grade, and depressed sections.
Mega Manila Subway
March 1, 2015 – Project Development
Php 227,000,000,000 - Official Development Assistance (ODA)
A 25-kilometer underground mass transportation system connecting major business districts and government centers. It is expected to serve around 370,000 passengers per day in its opening year. At present, the feasibility study is being conducted with the help of a grant from the Japan International Cooperation Agency (JICA).
Line 7 (MRT 7)
Feb. 1, 2014 – Project Implementation
Php 1,540,004,021 - Public-Private Partnership-Unsolicited Proposal (PPP-UP)
A 22-kilometer mass transportation railway system connecting Quezon City to San Jose Del Monte, Bulacan that aims to service 420,000 passengers per day.
Unified Common Station
Feb. 1, 2017 – Project Procurement
Php 2,800,000,000 - General Appropriations Act (GAA)
A 13,700-square-meter common station connecting three railway lines for ease of passenger transfer and interconnectivity with road-based transportation systems, which is expected to serve 478,000 passengers per day in 2020.
Aside from the key infrastructure projects mentioned, the program also targets to build four energy facilities that will ensure stable power supply at lower prices; 10 water resource projects as well as irrigation systems that will raise agricultural output; five flood control facilities that will help protect vulnerable communities as well as boost their resilience against the impact of climate change; and three redevelopment programs that will deliver sustainable solutions to best meet the needs of urban populations.
This ambitious undertaking will ideally hike public construction activity that will directly create hundreds of thousands of new jobs in construction and various related industries and services, thereby triggering the textbook multiplier effect across the entire economy. Once achieved and completed, it will also attract better investments that should stimulate a good economic activity across agriculture, industry and services, further boosting growth prospects in the longer term.
To monitor the listed high impact projects mentioned above, the government put in place the Build Build Build Portal — a real-time tool where projects are tracked — with relevant information made available to everyone.
For more information on the project statuses, visit http://www.build.gov.ph/
by: Eloisa Francia, May 27, 2018
Source: The Philippine Star
Photo from: The Philippine Star
The Build, Build, Build program is the centerpiece of the administration’s claim to reduce poverty incidence from today’s 21.6 percent to 14 percent by 2022. It is designed to modernize the country’s infrastructure backbone by rolling out 75 flagship projects with a combined worth of $36 billion in investments. The project seeks to uplift the lives of more than six million Filipinos to set the economy securely on the road to upper middle income status by 2022 and to a high-income one by 2040.
While some critics have questioned the financial sustainability of the ambitious undertaking, the government primarily eyes the enactment into law of the Tax Reform for Acceleration and Inclusion Act (TRAIN) to secure its steady revenue flow, totaling a P786 billion over the medium term. This, ideally combined with a prudent fiscal management and the declining debt service payments, is hoped to make this ambitious infrastructure buildup financially feasible.
According to Finance Undersecretary Grace Karen Singson, the national budget program for 2018 has so far earmarked P1.1 trillion for infrastructure development with the budgets of the Department of Public Works and Highways (DPWH) and Department of Transportation (DOTr) growing by 40.3 percent and 24.3 percent, respectively.\
In addition, there are also aid and investment pledges from China and Japan amounting to $7.3 billion in soft loans and another $1.2 billion from Tokyo, which will be spent on construction, the rebuilding efforts in Marawi City and reinforcing the country’s maritime capabilities.
Essentially, the 75 flagship projects consist of six airports, nine railways, three bus rapid transits, 32 roads and bridges, and four seaports that seek to bring down the costs of production, improve rural incomes, encourage countryside investments, make the movement of goods and people more efficient, and most importantly, create a projected 1.7 million jobs by 2022.
A major focus is also placed on airport constructions and a more efficient management system to further decongest the passenger flow and ensure a better travel experience of locals and tourists alike. Thus, numerous airports are strategically being built and renovated to improve passenger travel and services in the country. There is the Puerto Princesa Airport, designed to accommodate 1.9 million passengers daily; the New Bohol (Panglao) Airport that aims to attract 1.9 million passengers; the Mactan Cebu International Airport that will service 12 million passengers, and a new Bicol International Airport that hopes to decongest the crowded Legazpi airport and boost tourist arrivals to make Albay an economic powerhouse.
The Night Rating of existing airports in Naga, Dumaguete, Dipolog, Cotabato, Tuguegarao, Cauayan, Pagadian and Ozamis are also listed under the infrastructure program. Once completed, the night-landing capabilities are projected to enable the mentioned airports in accommodating flights even after sunset. To ensure on-time flight arrivals and departures, and further improve the air traffic control management in the country, a Communication Navigation Surveillance/Air Traffic Management System (CNS/ATM) was completed in December 2017.
Another key focus of the Build, Build, Build program is the worsening traffic in major choke points of the city. To address this, several key projects were proposed, some of which have been recently completed and are now operational:
NAIA Expressway Phase II
May 1, 2011 – April 1, 2017
Php 20,450,000,000 - Public-Private Partnership (PPP)
A four-lane, 7.75-kilometer elevated expressway and 2.22-kilometer at-grade feeder road that will provide access to NAIA Terminals I, II and III, and link the Skyway and the Manila-Cavite Toll Expressway. It starts at the existing Skyway then follows the existing road alignments over Sales Avenue, Andrews Avenue, Domestic Road and NAIA Road, and has entry/exit ramps at Roxas Boulevard, Macapagal Boulevard and PAGCOR City.
NLEX - SLEX Connector Road
May 6, 2010 – April 30, 2021
Php 23,302,000,000 - Public-Private Partnership (PPP)
A four-lane, eight-kilometer elevated expressway over the Philippine National Railway (PNR) right of way that starts from C3 Road in Caloocan through Manila crossing España towards PUP, Sta. Mesa connecting Metro Manila Skyway Stage 3 (MMSS3). Once completed, it is expected to decongest traffic in Metro Manila by providing an alternative to C-5 Road, and cut the travel time between NLEX and SLEX to 15-20 minutes, which today takes more than an hour. At present, a Notice of Award was already issued to Manila North Tollways Corporation (MNTC) and the coordination meeting for the Design Phase is currently being conducted.
Cavite-Laguna Expressway
Jan. 3, 2005 – July 31, 2020
Php 35,682,000,000 - Public-Private Partnership (PPP)
A four-lane, 44.20-kilometer closed-system tolled expressway connecting CAVITEX and SLEX that will have interchanges in eight locations namely, Kawit, Open Canal, Governor’s Drive, Aguinaldo Highway, Silang East, Sta. Rosa-Tagaytay Rd., Laguna Blvd. and Technopark.
Metro Cebu Expressway
Jan. 8, 2018 – Project Development
Php 18,016,000,000 - General Appropriations Act (GAA)
A 73.75-kilometer highway with two-kilometer tunnel that is divided into three segments: Talisay-Cebu City-Mandaue, Consolacion-Liloan-Compostela-Danao, and Naga-Minglanilla.
Modernization of RORO Transport System in the Philippines
Sept. 1, 2017 – Dec. 1, 2018
Php 5,700,550,000 - General Appropriations Act (GAA)
A nationwide project on modernizing the transport system in the three major nautical highways (Western, Central and Eastern) and other existing RORO routes. At present, the enactments of pertinent regulations prior to project implementation (EO 909, EO 226, and RA 9337) are ongoing.
PNR North 2
Nov. 30, 2016 – Project Development
Php 150,000,000,000 - Official Development Assistance (ODA)
A 69.5-kilometer mass transportation railway that will extend PNR North 1, connecting NCR with Clark International Airport and New Clark City that will enable a one-way travel time of 56 minutes between Manila and Clark International Airport (CIA), supporting the development of CIA as a major air transport hub. PNR North 2 will be seamlessly integrated with PNR North 1 and PNR South Commuter. PNR North 2 will be an electrified, fully elevated, standard-gauge railway that will ensure seamless interoperability for the entire Philippine railway.
PNR South Commuter (Manila to Bicol)
Feb. 12, 2014 – Dec. 1, 2021
Php 134,000,000,000 - Official Development Assistance (ODA)
A 653-kilometer rail line designed to accommodate around 400,000 passengers per day in its opening year, PNR South Commuter will be a dual-track, electrified, standard-gauge railway with elevated, at-grade, and depressed sections.
Mega Manila Subway
March 1, 2015 – Project Development
Php 227,000,000,000 - Official Development Assistance (ODA)
A 25-kilometer underground mass transportation system connecting major business districts and government centers. It is expected to serve around 370,000 passengers per day in its opening year. At present, the feasibility study is being conducted with the help of a grant from the Japan International Cooperation Agency (JICA).
Line 7 (MRT 7)
Feb. 1, 2014 – Project Implementation
Php 1,540,004,021 - Public-Private Partnership-Unsolicited Proposal (PPP-UP)
A 22-kilometer mass transportation railway system connecting Quezon City to San Jose Del Monte, Bulacan that aims to service 420,000 passengers per day.
Unified Common Station
Feb. 1, 2017 – Project Procurement
Php 2,800,000,000 - General Appropriations Act (GAA)
A 13,700-square-meter common station connecting three railway lines for ease of passenger transfer and interconnectivity with road-based transportation systems, which is expected to serve 478,000 passengers per day in 2020.
Aside from the key infrastructure projects mentioned, the program also targets to build four energy facilities that will ensure stable power supply at lower prices; 10 water resource projects as well as irrigation systems that will raise agricultural output; five flood control facilities that will help protect vulnerable communities as well as boost their resilience against the impact of climate change; and three redevelopment programs that will deliver sustainable solutions to best meet the needs of urban populations.
This ambitious undertaking will ideally hike public construction activity that will directly create hundreds of thousands of new jobs in construction and various related industries and services, thereby triggering the textbook multiplier effect across the entire economy. Once achieved and completed, it will also attract better investments that should stimulate a good economic activity across agriculture, industry and services, further boosting growth prospects in the longer term.
To monitor the listed high impact projects mentioned above, the government put in place the Build Build Build Portal — a real-time tool where projects are tracked — with relevant information made available to everyone.
For more information on the project statuses, visit http://www.build.gov.ph/
by: Eloisa Francia, May 27, 2018
Source: The Philippine Star
Photo from: The Philippine Star
Ease of Doing Business Act set to be signed this week
MANILA, Philippines — President Duterte is set to sign within the week a landmark legislation that will ease doing business in the country, a ranking trade and industry official said.
Trade Undersecretary Rowel Barba said the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 would “hopefully” be signed by the President.
“This will have a big impact for the delivery of services as far as businessmen are concerned. One, it provides for periods where permit or license should be issued. Three days for simple transaction, seven days for complex transactions, and 20 days for highly technical, subject to another special 20 working days,” Barba said.
“Second it provides for a two-strike policy where erring government officials who failed to issue such permits within the said periods. First offense is suspension for six months, second offense is termination with criminal liability and penalty of P500,000 to P2 million so that will be a landmark legislation and it will be signed by the President this week,” Barba said .
The Ease of Doing Business bill was passed in the bicameral conference committee last Feb. 14.
Trade Secretary Ramon Lopez said once enacted the law would result to shorter number of days in processing permits and licenses for simple and complex businesses.
“It will definitely be a big enforcement tool for many government officials to perform their job within the prescribed period, because there is immediate suspension, there can be criminality and imprisonment,” he earlier said.
The bill is part of the efforts to make doing business in the country easier.
The National Competitiveness Council (NCC) and the inter-agency Doing Business Task Force are taking unified action in simplifying government processes to make them more business-friendly given that competitiveness and ease of doing business are number three on the President’s socio-economic agenda.
The DTI and the NCC are aiming to leapfrog the country’s position in the Doing Business Report rankings of the World Bank to within the top 20 percent before the end of the Duterte administration.
by: Richmond Mercurio
Source: The Philippine Star, May 27, 2018
Photo: The Philippine Star
US-Philippines free trade deal a step forward — DTI
MANILA, Philippines — The US and the Philippines are in agreement that a bilateral free trade deal is a step in the right direction moving forward for both countries, the Department of Trade and Industry said.
Deputy United States Trade Representative (USTR) Jeffrey Gerrish and his delegation recently visited the country to further trade and investment ties with the Philippines.
The USTR meeting with the country’s trade officials also included continuation of the exploratory discussions for a possible free trade agreement (FTA) between the US and Philippines.
According to the DTI, the US and the Philippines agreed that an FTA would be a win for both countries.
The two countries also acknowledged that there are already opportunities under the current Trade and Investment Framework Agreement (TIFA) that can be utilized to facilitate more trade.
“We are looking forward to exploring a free trade agreement with the US. Meanwhile, we can simultaneously pursue low-hanging opportunities like the existing TIFA and the privileges under the Generalized System of Preferences (GSP) of the US,” Trade Secretary Ramon Lopez said.
by: Richmond Mercurio, May 25, 2018
Source: The Philippine Star
Photo From: The Philippine Star
Tech parts giant wants to hire 8,000 Filipino workers this year
LIPA, Batangas -- Taiwan's New Kinpo Group said Wednesday it planned to nearly double its workforce in the Philippines, as it sees revenues from its electronic parts factories reaching $1 billion by 2020.
The company which operates one of the world's largest calculator factories hopes to hire 8,000 workers, including close to 1,000 engineers, bringing its workforce to 18,000 said NKG CEO Simon Shen.
The factory in this town north of the capital can produce 35 million to 55 million calculators per year, Shen said, adding that depending on demand, the company might also produce smartphone parts locally.
NKG's clients include Casio, Texas Instruments and Chinese electronics giant Xiaomi, whom they produce parts for its smartphones, air purifiers and rice cookers, have enabled the company to build a cult following.
"We expect to double revenues. We need more people to join us. Filipino workers are very skilled," Shen said in an exclusive interview with ANC's The Boss.
Filipino workers are valued for their English proficiency and sense of teamwork, he said.
"The Philippines is a very good site for us," he said, adding that he wants to transform the country into a manufacturing hub.
The country must be "very competitive" to attract foreign investments, Shen said, when asked what he thought about the government's plans to revise perks for investors.
If incentives are removed, Shen said, "We need to change our business model."
by: Cathy Yang, May 23 2018
Source: ABS-CBN News
Manila Standard Opinion: Targeted Marketing
by: Angelito T. Banayo
For three days last week, the Manila Economic and Cultural Office and the Philippine Trade and Investment Center Taipei sponsored a business forum which was held at the Howard Plaza in the city’s Da-an district.
Flying in from the Philippines were Chairperson and Administrator Wilma Eisma of Subic Bay Metropolitan Authority, Vice-President Evangeline Tejada of Clark Development Corporation, Linda Pamintuan, Executive Director of Subic and Clark Alliance for Development, Jonathan Defensor de Luzuriaga, President of the Philippine Software Industry Association, executives of the Cagayan Export Zone Authority as well as a representative of the Tourism Infrastructure and Enterprise Zone Authority to present their selling points as investment destinations to Taiwanese businessmen.
Also invited as a major resource person to give Taiwan businessmen an overview of the Philippine economy was Jonathan Ravelas, first vice-president and chief market strategist of BDO Unibank Inc., which has been actively helping us in sponsoring such investment promotion activities.
Some 300 businessmen packed the ballroom of the Howard Plaza to listen to our major economic zones present their advantages as an investment destination.
A senior executive of the Ministry of the Office of Economic Affairs (a combined National Economic and Development Authority And Department of Trade and Industry parallel ministry), Liang-Tsai Chen spoke about the mantle of protection to Taiwanese and Filipino investors afforded by the revised Bilateral Investment Agreement which was signed in Manila last December 2017 between the Manila Economic and Cultural Office and the Taiwan Economic and Cultural Office resident representatives. The Philippines was the first Asean country to sign a new set of rules and regulations to protect investors from both economies.
This was to lay the predicate for our push to invite more businessmen to invest in our country, through our economic zones which provide incentives for foreign investments, as well as into our tourism industry which lacks adequate infrastructure and support services.
What really got the audience of hard-nosed businessmen was the testimonial of Hugh Lo, Vice-President of the New Kinpo Group, a manufacturing firm that has through less than a decade already set up five factories for various electronic and electric products in our privately owned economic zones, mostly in the Calabarzon area.
Lo spoke in lieu of New Kinpo CEO Simon Shen, a good friend of the Philippines who was on a business trip to Europe, where the company has several big clients from all over the continent. He spoke about our young and excellent labor force, especially female workers who are easy to train and show meticulous consistency in quality of work. He also praised the forms of assistance given to their factories by the Philippine Economic Zone Authority as well as local officials of Batangas and Laguna, and pointed to the Duterte administration’s Build, Build, Build program which would enhance the competitiveness of the Philippines as an investment destination.
The forum was followed in succeeding days by visits to industry associations such as the Taiwan Electrical and Electronic Manufacturers Association, the Shin Kong Group, one of Taiwan’s biggest conglomerates, the Industrial Technology Research Institute, Taiwan Information Service Industry Association and Taiwan’s National Federation of Industries.
CNFI’s member industry associations constitute one-third of Taiwan’s GDP and employs also a third of the entire island’s work force. There were very frank and business-like exchanges of views, where Taiwanese businessmen were able to explain their concerns and comparisons candidly drawn between the Philippine investment environment vis-à-vis other Asean countries.
Through it all, we were assisted by our hard-working Trade Representative and Director for Commercial Affairs, Michael Alfred V. Ignacio—who has had previous postings in Silicon Valley, San Francisco, Belgium and New Delhi—as well as his Mandarin-speaking staff.
The Meco recently moved to a new office in Neihu, which is the new business district of Taipei. It now houses in one floor and under one roof not only Meco staff but also our Trade, Labor and Tourism offices. Previously, Philippine personnel were scattered in different offices, making it difficult to coordinate activities, and especially hassling for our OFW’s who had to shuttle from the Philippine Overseas Labor Office (which included OWWA, SSS, even Pag-IBIG) to Meco for their consular needs.
One important assessment of these engagements, and similar such for a held last year which we intend to bring to our policy-makers in Manila and the political leadership is for a single “Philippines, Incorporated” approach in selling the country to foreign investors.
This means that while we highlight each economic zone’s comparative advantage, we do not compete, but rather promote the entire Philippine economy through targeted marketing with a unified and cohesive approach. Ceza in Cagayan should for instance harp on proximity, proximity, proximity, while the more established economic zones like Subic and Clark can tout their ready-made infrastructure.
There are so many things we yet have to do to increase the level of FDIs coming in to our country. Build, Build, Build intends to get our woeful infrastructure upgraded in a catch-up game with our neighbors who had the prescience and political will to develop their economic and physical infrastructure while we were playing too much politics and involving ourselves in less important pre-occupations.
Taiwan is an excellent example, along with South Korea, of economies which focused on the right things at the right time. Their phenomenal growth through four decades is testimony to policy consistency and serious, purposive implementation. The same can be said of China, from the time Deng Xiao Ping opened up the economy which became an astonishing powerhouse in just a little more than a generation.
We may be a late bloomer in comparison, but now our country is getting into the groove of things, and there is plenty of work to be done.
The recent business forum and the exchanges with the business community of our country’s nearest neighbor constitute building blocks towards enhanced economic relationships. It takes plodding and concerted efforts, especially to link our small and medium-scale entrepreneurs to theirs, these SMEs being the sinews of each other’s economy.
read more from source: Manila Times posted April 30, 2018 at 12:30 am
Flying in from the Philippines were Chairperson and Administrator Wilma Eisma of Subic Bay Metropolitan Authority, Vice-President Evangeline Tejada of Clark Development Corporation, Linda Pamintuan, Executive Director of Subic and Clark Alliance for Development, Jonathan Defensor de Luzuriaga, President of the Philippine Software Industry Association, executives of the Cagayan Export Zone Authority as well as a representative of the Tourism Infrastructure and Enterprise Zone Authority to present their selling points as investment destinations to Taiwanese businessmen.
Also invited as a major resource person to give Taiwan businessmen an overview of the Philippine economy was Jonathan Ravelas, first vice-president and chief market strategist of BDO Unibank Inc., which has been actively helping us in sponsoring such investment promotion activities.
Some 300 businessmen packed the ballroom of the Howard Plaza to listen to our major economic zones present their advantages as an investment destination.
A senior executive of the Ministry of the Office of Economic Affairs (a combined National Economic and Development Authority And Department of Trade and Industry parallel ministry), Liang-Tsai Chen spoke about the mantle of protection to Taiwanese and Filipino investors afforded by the revised Bilateral Investment Agreement which was signed in Manila last December 2017 between the Manila Economic and Cultural Office and the Taiwan Economic and Cultural Office resident representatives. The Philippines was the first Asean country to sign a new set of rules and regulations to protect investors from both economies.
This was to lay the predicate for our push to invite more businessmen to invest in our country, through our economic zones which provide incentives for foreign investments, as well as into our tourism industry which lacks adequate infrastructure and support services.
What really got the audience of hard-nosed businessmen was the testimonial of Hugh Lo, Vice-President of the New Kinpo Group, a manufacturing firm that has through less than a decade already set up five factories for various electronic and electric products in our privately owned economic zones, mostly in the Calabarzon area.
Lo spoke in lieu of New Kinpo CEO Simon Shen, a good friend of the Philippines who was on a business trip to Europe, where the company has several big clients from all over the continent. He spoke about our young and excellent labor force, especially female workers who are easy to train and show meticulous consistency in quality of work. He also praised the forms of assistance given to their factories by the Philippine Economic Zone Authority as well as local officials of Batangas and Laguna, and pointed to the Duterte administration’s Build, Build, Build program which would enhance the competitiveness of the Philippines as an investment destination.
The forum was followed in succeeding days by visits to industry associations such as the Taiwan Electrical and Electronic Manufacturers Association, the Shin Kong Group, one of Taiwan’s biggest conglomerates, the Industrial Technology Research Institute, Taiwan Information Service Industry Association and Taiwan’s National Federation of Industries.
CNFI’s member industry associations constitute one-third of Taiwan’s GDP and employs also a third of the entire island’s work force. There were very frank and business-like exchanges of views, where Taiwanese businessmen were able to explain their concerns and comparisons candidly drawn between the Philippine investment environment vis-à-vis other Asean countries.
Through it all, we were assisted by our hard-working Trade Representative and Director for Commercial Affairs, Michael Alfred V. Ignacio—who has had previous postings in Silicon Valley, San Francisco, Belgium and New Delhi—as well as his Mandarin-speaking staff.
The Meco recently moved to a new office in Neihu, which is the new business district of Taipei. It now houses in one floor and under one roof not only Meco staff but also our Trade, Labor and Tourism offices. Previously, Philippine personnel were scattered in different offices, making it difficult to coordinate activities, and especially hassling for our OFW’s who had to shuttle from the Philippine Overseas Labor Office (which included OWWA, SSS, even Pag-IBIG) to Meco for their consular needs.
One important assessment of these engagements, and similar such for a held last year which we intend to bring to our policy-makers in Manila and the political leadership is for a single “Philippines, Incorporated” approach in selling the country to foreign investors.
This means that while we highlight each economic zone’s comparative advantage, we do not compete, but rather promote the entire Philippine economy through targeted marketing with a unified and cohesive approach. Ceza in Cagayan should for instance harp on proximity, proximity, proximity, while the more established economic zones like Subic and Clark can tout their ready-made infrastructure.
There are so many things we yet have to do to increase the level of FDIs coming in to our country. Build, Build, Build intends to get our woeful infrastructure upgraded in a catch-up game with our neighbors who had the prescience and political will to develop their economic and physical infrastructure while we were playing too much politics and involving ourselves in less important pre-occupations.
Taiwan is an excellent example, along with South Korea, of economies which focused on the right things at the right time. Their phenomenal growth through four decades is testimony to policy consistency and serious, purposive implementation. The same can be said of China, from the time Deng Xiao Ping opened up the economy which became an astonishing powerhouse in just a little more than a generation.
We may be a late bloomer in comparison, but now our country is getting into the groove of things, and there is plenty of work to be done.
The recent business forum and the exchanges with the business community of our country’s nearest neighbor constitute building blocks towards enhanced economic relationships. It takes plodding and concerted efforts, especially to link our small and medium-scale entrepreneurs to theirs, these SMEs being the sinews of each other’s economy.
read more from source: Manila Times posted April 30, 2018 at 12:30 am
Lazada unleashes PH’s e-commerce potential
Inanc Balci, co-founder and CEO of Lazada Philippines, is of mixed race. But he identified himself as Turkish, being born and raised in Istanbul.
When the opportunity came to establish an e-commerce platform, the US-educated Balci never hesitated to choose the Philippines as the launchpad in 2012. Balci saw the opportunities for the social media savvy Filipinos. Those opportunities have turned into realities and opening doors to more entrepreneurs.
Balci has steered Lazada, and the whole Philippine e-commerce industry to new heights, where now over 10,000 sellers cater to over a million monthly transactions.
Lazada
Starting out as retail e-commerce focusing on electronics products, Lazada has expanded into fashion and all other categories. Not only that, it has also opened as a marketplace and allows cross border selling/importing. It will soon become a social commerce company.
Lazada is the Philippines’ online shopping mall that is rapidly changing the retail scene across the archipelago. It has quickly revolutionized the meaning of online shopping in a country where shopping in traditional malls is essentially the core lifestyle of every Filipino.
With the largest online assortment of products ranging from mobile and laptops to consumer electronics to books and media, health and beauty, home appliances, fashion and accessories, Lazada Philippines offers its wide customer base everything they need in one place.
Since its establishment in the Philippines, Lazada continues to strive to live up to its objective of improving people’s lives through effortless and risk-free shopping. It continues to offer products and retail solutions that combine sense and simplicity, with the end goal of providing superior value to its customers.
Lazada Philippines is making online shopping more practical for every Filipino.
Retailing made easy
Balci, who graduated with a double degree in Industrial Engineering and Economics from Purdue University in the United States, began his career at an investment bank in London where he worked on mergers and acquisitions. He identified the strong potential of e-commerce and joined Rocket Internet in 2012 as Managing Director.
Balci started Lazada in the Philippines in 2012 from scratch as the company moved into 5 Southeast Asia.
Lazada seeks to simplify shopping, make it more convenient. The brick and mortar retailing can be a very difficult business because a retailer has to address the demand and supply side. But with e-commerce, retailing can be made easy.
“We started very quickly and after two years we came up with an online shopping mall. So rather than one store, we have lots of stores so we’ve unlocked money and not limited on small items but 40 million items in the Philippines,” says the 31-year-old Balci.
They also put up warehouses in strategic areas. It has over 40 distribution centers in the country so they can deliver orders to customers faster. They also offer warehousing services to Lazada merchandizers. As much as 10 percent of merchants are using their facilities.
Lazada has now evolved not just as an e-commerce platform but for other business models as a marketplace and as a venue for cross border retailing.
The marketplace now allows merchants to sell their products online. The cross border business model enables merchants located abroad with operations, especialy China and Korea, to also sell their merchandize online. This is a combination of retail e-commerce and cross border. Today, Lazada carries 40 million products in various categories.
Challenges
When Balci decided to establish Lazada in the Philippines, all he knew then was the potential of the market. What he did not know was how difficult it was to operate here.
He realized sooner the challenges in the Philippine market.
First, the Philippines is an archipelago with over 7,100 islands, making logistics a nightmare.
In addition, the mode of payment and connectivity are limited and pose as hindrances to any businessman who strives to provide a nationwide service.
To address logistics concerns, the company launched the Lazada Express to ensure products are delivered as fast possible. Traditional logistics has been operational in the country, but e-commerce logistics is still very new.
So far, Lazada Express delivers 80 percent of Lazada packages and the rest are being outsourced to third party service providers for remote areas like Mindanao.
“We are now the second largest last mile logistics company,” says Balci.
Delivery is the same day for orders for Metro Manila coming in before 12 noon and for items coming out of their own warehouse.
On the payment issue, Balci noted that majority of Filipinos do not use credit cards and there is a high percentage of unbanked population. This has forced them to accept cash on delivery. Now, majority or 75 percent of sales are paid via COD.
“We are able to address the payment issue,” he adds.
Connectivity in emerging economies remained a challenge, but Internet speeds are improving. Customers are now able to use their mobile phones to connect to the Internet.
What Lazada did was to focus on the mobile ecosystem so people with mobile phones can have access to its products.
This is a significant measure as it makes Lazada a mobile-commerce company.
Lazada is an open platform and they have several merchants aboard.
Balci admitted they cannot control 100 percent of the products being sold on its platform, products that do not fit into the standards are sent back to them and the money paid is refunded 100 percent. Sellers are also rated to help advise buyers of their performance.
“We have millions of products that even if you have 99.9 percent satisfaction rating you still get 10,000 unsatisfied and no company can produce that because of the way our business is designed,” he adds. He, however, said that as time goes by they intend to have AI chatbots and “SWAT” teams to service customers and ensure problems are resolved faster.
“If customer reaches out to us, write to us online, we reach out to them also and we solve the problem,” says Balci.
Soon, Lazada will further widen its reach to become a social commerce company. This means that Lazada would be able to interact more with customers within the ecosystem.
Customers can follow brands, get insights, and get specific discounts. Lazada is building this infrastructure in southeast Asia.
He cited the success of Taobao Collection following the acquisition by Alibaba of 82 percent stake in Lazada two years ago.
Launched recently only in the Philippines, Taobao has changed the build and added new features with seller tools to increase sales.
Taobao, the biggest online marketplaces in the world, has a wide range of products carefully selected from its massive inventory to suit the needs of Filipino consumers.
Apart from this, Lazada also offers cash-on-delivery option for Taobao Collection products purchased, and free shipping nationwide.
The Taobao Collection features millions of products in various categories which Filipino shopaholics will now get access to.
In addition to Taobao Collection, customers are in for out of this world deals, massive discounts, unbeatable flash sales, and even more curated products from 12,000 sellers.
Balci said all these point to the fact that they already have the feature of a social commerce platform where customers can talk to merchants. These are being woven into each other. But that will be enhanced further to a more social ecosystem where participants can build on top of it as it will offer lots of tools to interact.
“We are going into the social commerce because that is the future,” says Balci. This is especially exciting for the Philippines where people love to communicate with each other. Lazada seeks to capture that cultural aspect.
Leader
“We are the undisputed leader because of our infrastructure. No other company can come close, we are the only e-commerce company with sizable logistics and supply chain platform. We are the number one choice of brands whether small or big,” he adds.
This happened because Lazada was able to overcome market challenges inherent to an emerging economy.
Balci explained the unique requirements of emerging markets in southeast Asia that other e-commerce platforms may have a hard time adjusting.
These challenges are sure to discourage other e-commerce platforms that are built more for the developed countries.
For an island nation like the Philippines and other southeast Asian countries, it would be a different game and that would require much for a player to address.
“Lazada is 100 percent built for southeast Asia’s developing markets,” he adds recalling that when he first started the company, Philippine companies did not want to sell in Lazada. But two years after when they already understood that Lazada is not competing against their traditional retail business, they finally joined the bandwagon.
“It took us sometime to reach them out, but today even the smallest MSMEs are in Lazada,” recalls Balci noting these companies are now earning for their families by using their infrastructure.
This only showed that Lazada has successfully built its 3 business models from a pure e-retail, which is now a billion-dollar industry to a significantly growing marketplace, its booming logistics business, and the exciting cross border selling.
Lazada Philippines is not yet the leader among the group in southeast Asia, according to Balci. Thailand is leading because it has been ahead in the e-commerce space in terms of logistics and payments, but Balci said that the Philippines is doing very well. It may not be as big as Indonesia, but it is a significant player.
“Philippines has significantly higher potential in e-commerce than any other country in the world,” cites Balci.
This is because the Philippines is the SMS capital of the world. It is also the social media capital of the world. This means Filipinos are very good at using technology and communicating, making it easier for them to embrace online shopping.
From 1.5 percent e-retail penetration, this is projected to balloon to 20-25 percent in 10 years. Other countries have only 15-18 percent penetration in their future projection.
“Once the Internet connectivity improves, once the rates become cheaper, hopefully very soon, then we will start going to that significant tipping point,” he adds, amazed at the growth potential ahead.
There have been lots of emerging e-commerce platforms in the country, but Lazada outsmarted them all, becoming the largest online shopping mall to date.
He noted of some small competitors of private and public companies, but he was confident nothing can come close to their magnitude.
He cited the strength of Alibaba, which acquired them and which has been operating in the market since 1999. Alibaba is extremely successful all over the world, together with its Ali Express.
“The way we learn from Alibaba is unprecedented,” he adds noting that people are now spending an average of 2 hours every day in China for Taobao.
Alibaba and a partner are planning of using robots to pick and pack and deploy ordered items in Malaysia. This technology is not yet in the Philippines but the Turkish executive said they are working with leaders to explain its benefits.
Alibaba injected $2 billion for the southeast Asia market and is committed for further expansion.
“This is the kind of technology we are bringing into the Philippines,” says Balci.
Lazada is supported by close to 3,000 people of which 500 are direct workers. Balci said they are always on a hiring mode as business grows. They have been tapping BPO firms where they have 2,000 agents working for them.
On top of that, Balci said it is not so smart to delegate works to BPOs alone, so they have their own in-house agents. They feel the need to combine both to gain more efficiency.
“We have a lot of millennials working in our company, but there are also over 40 years of age. It is a different mixture of people and we share a lot of wisdom,” he adds noting that Lazada is a company run by Filipinos. There are only three expats working in the company.
“We rely very little on expats,” he adds.
Efficiency
The Lazada e-commerce platform is not just the largest marketplace, but it has the biggest potential to push for efficiency in the retailing business.
The brick and mortal retailing is handicapped because this channel has only 8-10 hours to serve their customers compared to the 24 hours, 7 days a week of the online.
E-commerce also makes the domestic economy more efficient, competitive and helps the government in collecting taxes.
According to Balci, Lazada merchants are required to follow all government rules, including the registration of business with the Securities and Exchange Commission or the Department of Trade and Industry, Mayor’s permit, issuance of receipts, and paying of taxes.
“You have to provide an invoice as we do this together with the government because if we are going to build a scale then we are going to help everyone,” he adds.
Lazada is not just e-commerce, but the largest marketplace and still having the limitless potential to reach out to more customers and encourage more entrepreneurs to go onboard.
Balci himself does his shopping at Lazada for health and beauty products and his consumables, the same goes for fashion.
“I realize, it’s no brainer, if you don’t like the product, returns are free,” says Balci.
They are not also competing with offline or the traditional retailing. Instead, they are complementing and contributing to the efficiency of these companies.
“It makes a company become more efficient,” he adds. He, however, said that companies that do not embrace e-commerce are going to lose the potential od higher growth.
But going online will further shore up their revenues.
So, a lot of companies are now starting to sell in Lazada.
Home
As a manager, Balci has been very dynamic, collaborative and very hands-on. Most of his days are spent meeting with third parties and internal teams to go through the KPIs and how business is evolving.
He is focused in getting concrete results being part of a company that is number-driven.
“We measure every peso and every minute spent. If we cannot measure something, we cannot become the market leader,” says Balci, who was an investment banker in London engaged with investors in the e-commerce space, although at that time it was still at their very conceptual stage. Thus, doing the actual thing for the first time was so different.
For the past six years of living in the Philippines, Balci has found his second home. He loves water sports and that brought him to the beaches of Coron, Siargao and Cebu. He had been to Boracay many times and in the north, as well. But he goes to Japan for snowboarding.
He loves the all-summer weather of the Philippines, noting that Turkey snows a lot while London has plenty of rains.
Balci never loses his faith in the Philippines; he has long been convinced the local economy will continue its high growth trajectory.
“At the moment, anywhere you go in southeast Asia there is growth. At one point, it was India, Brazil, and China, but now it is southeast Asia and in this region it is the Philippines which has the highest per capita growth, even if it is just baking bread,” says Balci.
Relatively young as they are, but Balci said they have started giving back to society. It has undertaken some CSR efforts, investing some of their time engaging and understanding the country more by spending time with lots of people through non-governmental organizations such as “Bantay Bata” and Habitat for Community.
“We go to orphanages to cheer the kids up and give them hope and show people what they can do if they don’t have money,” he adds.
“To start with, a merchant needs no money, spend no money, but he can make successful sales,” he adds.
As a service provider, he belief the Lazada platform is helping others achieve their goals.
Despite its accomplishments here, Balci said Lazada is still barely scratching the surface.
“We are still taking baby steps,” he adds.
by: Bernie Cahiles-Magkilat, April 17, 2018
Source: Manila Bulletin
137 sites eyed as new ecozones
MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) has identified 137 sites covering a total area of 70,475 hectares as potential new economic zones.
PEZA, since the entry of director general Charito Plaza, has made public its intent to transform idle and unproductive public lands into special economic zones that are seen to drive economic development in communities.
Based on a report from PEZA, majority or 74 sites are best suited as manufacturing zones.
About 30 sites spanning 10,668 hectares are eyed as agro-industrial ecozones, while another 19 covering 19,815 hectares are for tourism.
The remaining are seen ideal for the development of IT parks and centers and other forms of ecozones.
“We, in PEZA, firmly believe that economic zone development is the best way to spur countryside development. We have witnessed how former third-class municipalities have evolved into first-class municipalities and have even been upgraded into full pledged cities because of the development created by the presence of economic zones throughout the country,” Plaza said.
“In the past, the dominant trend has been migration to urban centers and cities due to limited job opportunities in the provinces. With our economic zones spread all over the country, we will now bring jobs to the people, and encourage them to stay within their provinces,” she said.
Plaza said PEZA has been inviting and encouraging local government units and landowners, including national agencies, which are managing public lands, to transform the properties into economic zones.
PEZA is coordinating with agencies like the Philippine Mining Development Corp., Power Sector Assets and Liabilities Management Corp., and the National Commission on Indigenous Peoples for better utilization of their unproductive lands.
PEZA administers 380 operating economic zones, 74 of which are manufacturing ecozones, 263 are IT parks and centers, 22 agro-industrial ecozones mostly in Mindanao, 19 tourism ecozones, and two medical tourism parks.
by Richmond Mercurio, April 16, 2018
Source: The Philippine Star
PEZA, since the entry of director general Charito Plaza, has made public its intent to transform idle and unproductive public lands into special economic zones that are seen to drive economic development in communities.
Based on a report from PEZA, majority or 74 sites are best suited as manufacturing zones.
About 30 sites spanning 10,668 hectares are eyed as agro-industrial ecozones, while another 19 covering 19,815 hectares are for tourism.
The remaining are seen ideal for the development of IT parks and centers and other forms of ecozones.
“We, in PEZA, firmly believe that economic zone development is the best way to spur countryside development. We have witnessed how former third-class municipalities have evolved into first-class municipalities and have even been upgraded into full pledged cities because of the development created by the presence of economic zones throughout the country,” Plaza said.
“In the past, the dominant trend has been migration to urban centers and cities due to limited job opportunities in the provinces. With our economic zones spread all over the country, we will now bring jobs to the people, and encourage them to stay within their provinces,” she said.
Plaza said PEZA has been inviting and encouraging local government units and landowners, including national agencies, which are managing public lands, to transform the properties into economic zones.
PEZA is coordinating with agencies like the Philippine Mining Development Corp., Power Sector Assets and Liabilities Management Corp., and the National Commission on Indigenous Peoples for better utilization of their unproductive lands.
PEZA administers 380 operating economic zones, 74 of which are manufacturing ecozones, 263 are IT parks and centers, 22 agro-industrial ecozones mostly in Mindanao, 19 tourism ecozones, and two medical tourism parks.
by Richmond Mercurio, April 16, 2018
Source: The Philippine Star
Gov’t betting big on Clark Freeport
CLARK FREEPORT ZONE— The Duterte administration is set to make Clark Freeport Zone “the next big metropolis” with several flagship infrastructure projects seen bolstering economic activity in the former US military air base.
“Clark will soon be the showcase of the Duterte administration’s economic strategy. We expect this area to be the growth driver for central and northern Luzon,” Finance Secretary Carlos G. Dominguez III told a press conference during the roadshow here for the Philippines’ hosting of the 51st Asian Development Bank annual meeting on May 3 to 6.
Dominguez said Clark was ideal to be the center for agro-industrial activities as well as a hub for cutting-edge technology companies and world-class sports facilities.
“With the recent groundbreaking of the 40-hectare piece of land where the National Government Administrative Center will be developed, the New Clark City will house various backup government centers that will ensure continuous business operations and services in the country at the onset of a natural disaster,” Dominguez said.
“Clark, in the near future, will be the next big metropolis,” the chief of the Duterte economic team said.
The Finance chief noted that at least two soon-to-rise big-ticket infrastructure projects would benefit Clark. One is the P211.43-billion Philippine National Railways North 2 project which would connect Malolos, Bulacan to Clark Airport and Clark Green City.
Based on earlier documents, the Japanese government would finance the 69.5-kilometer PNR North 2, with the loan agreement expected to be signed by the fourth quarter of this year, following National Economic and Development Authority Board approval in June last year.
Another major infrastructure project in the free port is the P12.55-billion new terminal building of the Clark International Airport which, Dominguez said, would increase the airport’s capacity by eight million passengers per year and would help pave the way for the accelerated growth of Central Luzon and nearby areas.”
As a whole, the government plans to invest “heavily” in infrastructure in Central and Northern Luzon in a bid “to have major alternative growth areas,” according to Dominguez.
In fact, three of the Duterte administration’s flagship infrastructure projects already approved by the Neda Board are in central and northern Luzon, [including] the P4.37-billion Chico River Pump Irrigation Project, under which 8,700 hectares of agricultural land will be irrigated, benefiting 4,350 farmers and serving 21 barangays in Cagayan Valley and Kalinga, he said.
Last Tuesday, the Philippine and Chinese governments signed the P3.135-billion loan agreement for the Chico River Pump Irrigation Project, the first flagship infrastructure project to be financed by China under the Duterte administration’s ambitious “Build, Build, Build.”
The $62.09-million dollar- denominated loan will cover 85 percent of the project’s total contract amount of P3.689 billion.
The Chinese loan for the project to be implemented by the National Irrigation Administration was slapped an interest of 2 percent a year, maturing in 20 years inclusive of a seven-year grace period.
Dominguez signed the loan agreement on behalf of the Philippine government on the sidelines of the Boao Forum for Asia in Hainan, China, while Chinese Ambassador to the Philippines Zhao Jianhua represented the Export-Import Bank of China.
by Ben O. de Vera, April 14, 2018
Source: Philippine Daily Inquirer
Photo: Clark Development Corporation Website
“Clark will soon be the showcase of the Duterte administration’s economic strategy. We expect this area to be the growth driver for central and northern Luzon,” Finance Secretary Carlos G. Dominguez III told a press conference during the roadshow here for the Philippines’ hosting of the 51st Asian Development Bank annual meeting on May 3 to 6.
Dominguez said Clark was ideal to be the center for agro-industrial activities as well as a hub for cutting-edge technology companies and world-class sports facilities.
“With the recent groundbreaking of the 40-hectare piece of land where the National Government Administrative Center will be developed, the New Clark City will house various backup government centers that will ensure continuous business operations and services in the country at the onset of a natural disaster,” Dominguez said.
“Clark, in the near future, will be the next big metropolis,” the chief of the Duterte economic team said.
The Finance chief noted that at least two soon-to-rise big-ticket infrastructure projects would benefit Clark. One is the P211.43-billion Philippine National Railways North 2 project which would connect Malolos, Bulacan to Clark Airport and Clark Green City.
Based on earlier documents, the Japanese government would finance the 69.5-kilometer PNR North 2, with the loan agreement expected to be signed by the fourth quarter of this year, following National Economic and Development Authority Board approval in June last year.
Another major infrastructure project in the free port is the P12.55-billion new terminal building of the Clark International Airport which, Dominguez said, would increase the airport’s capacity by eight million passengers per year and would help pave the way for the accelerated growth of Central Luzon and nearby areas.”
As a whole, the government plans to invest “heavily” in infrastructure in Central and Northern Luzon in a bid “to have major alternative growth areas,” according to Dominguez.
In fact, three of the Duterte administration’s flagship infrastructure projects already approved by the Neda Board are in central and northern Luzon, [including] the P4.37-billion Chico River Pump Irrigation Project, under which 8,700 hectares of agricultural land will be irrigated, benefiting 4,350 farmers and serving 21 barangays in Cagayan Valley and Kalinga, he said.
Last Tuesday, the Philippine and Chinese governments signed the P3.135-billion loan agreement for the Chico River Pump Irrigation Project, the first flagship infrastructure project to be financed by China under the Duterte administration’s ambitious “Build, Build, Build.”
The $62.09-million dollar- denominated loan will cover 85 percent of the project’s total contract amount of P3.689 billion.
The Chinese loan for the project to be implemented by the National Irrigation Administration was slapped an interest of 2 percent a year, maturing in 20 years inclusive of a seven-year grace period.
Dominguez signed the loan agreement on behalf of the Philippine government on the sidelines of the Boao Forum for Asia in Hainan, China, while Chinese Ambassador to the Philippines Zhao Jianhua represented the Export-Import Bank of China.
by Ben O. de Vera, April 14, 2018
Source: Philippine Daily Inquirer
Photo: Clark Development Corporation Website
Infra spending up 25% to P43.3 billion in January
MANILA, Philippines — Government spending on infrastructure rose 25 percent to P43.3 billion in January from P34.5 billion in the same period last year due to the completion of school and road projects, as well as the military modernization program, the Department of Budget and Management (DBM) reported yesterday.
Budget Secretary Benjamin Diokno attributed the expansion to the completion of projects by the Department of Public Works and Highways (DPWH), such as school buildings, flood control projects, and lahar control works.
The increase was also driven by the purchase of communication equipment as part of the Department of National Defense- Armed Forces of the Philippines Modernization Program, according to Diokno.
However, Diokno was not happy with the 25-percent increase in infrastructure spending in January, as it was still slower than expected.
He said the budget of the DPWH rose more than 40 percent, and so should infrastructure expenditures.
“I think the DPWH’s budget is higher by around 47 percent. So 25 percent, I’m not happy with the 25 percent growth,” Diokno said.
Despite this, Diokno expressed confidence the government would be able to catch up in the following months as project implementation follows an S-curve pattern, wherein it starts slow and picks up in the middle.
“We still have eight months to go. And this is not going to be finished within one year, so as long as we are addressing the right-of-way, the construction, the contractors, I think it’s easy to catch up,” he said.
According to Diokno, the government is expected to complete the construction of the new Panglao International Airport and Mactan Cebu International terminal by June.
He said the expansion of the Clark International Airport is in full blast, while the Metro Manila Subway System is seen to commence in November or December of this year.
With increased spending, particularly on infrastructure, Diokno expressed confidence the Philippines would be able to hit the lower end of its seven to eight percent GDP growth target in the first quarter of 2017.
Infrastructure projects form part of the government’s capital outlays, which climbed 20.7 percent to P52 billion in January, as compared to the P43.1 billion in the same period in 2017.
Other forms of capital outlays include equities – or investments of the national government in the authorized capital stock of state corporations – and capital transfer to local government units.
by: Mary Grace Padin, April 12, 2018
Source: The Philippine Star
Budget Secretary Benjamin Diokno attributed the expansion to the completion of projects by the Department of Public Works and Highways (DPWH), such as school buildings, flood control projects, and lahar control works.
The increase was also driven by the purchase of communication equipment as part of the Department of National Defense- Armed Forces of the Philippines Modernization Program, according to Diokno.
However, Diokno was not happy with the 25-percent increase in infrastructure spending in January, as it was still slower than expected.
He said the budget of the DPWH rose more than 40 percent, and so should infrastructure expenditures.
“I think the DPWH’s budget is higher by around 47 percent. So 25 percent, I’m not happy with the 25 percent growth,” Diokno said.
Despite this, Diokno expressed confidence the government would be able to catch up in the following months as project implementation follows an S-curve pattern, wherein it starts slow and picks up in the middle.
“We still have eight months to go. And this is not going to be finished within one year, so as long as we are addressing the right-of-way, the construction, the contractors, I think it’s easy to catch up,” he said.
According to Diokno, the government is expected to complete the construction of the new Panglao International Airport and Mactan Cebu International terminal by June.
He said the expansion of the Clark International Airport is in full blast, while the Metro Manila Subway System is seen to commence in November or December of this year.
With increased spending, particularly on infrastructure, Diokno expressed confidence the Philippines would be able to hit the lower end of its seven to eight percent GDP growth target in the first quarter of 2017.
Infrastructure projects form part of the government’s capital outlays, which climbed 20.7 percent to P52 billion in January, as compared to the P43.1 billion in the same period in 2017.
Other forms of capital outlays include equities – or investments of the national government in the authorized capital stock of state corporations – and capital transfer to local government units.
by: Mary Grace Padin, April 12, 2018
Source: The Philippine Star
ADB exec: PH in ‘golden age of economic growth’
The Philippines is experiencing a “golden age of economic growth” amid sustained expansion in more than five decades, an executive of the Asian Development Bank said Wednesday, with the Duterte administration’s ambitious infrastructure program seen not only boosting the gross domestic product (GDP) but also reducing poverty incidence.
In its Asian Development Outlook 2018 report released also yesterday, the Manila-based multilateral lender kept its 6.8-percent GDP growth forecast for the Philippines for 2018, a faster pace than the 6.7-percent actual expansion in 2017.
For 2019, the ADB projected the Philippine economy to further grow by 6.9 percent, although the forecasts in the next two years were below the government’s target range of 7-8 percent starting this year until 2022.
“Rising domestic demand, remittances and employment, in addition to infrastructure spending, will drive growth” in the Philippines in the near term, the ADB said in a statement.
“Along with domestic demand, the government’s infrastructure investments will fuel the country’s growth in the next few years, supported by a sound economic policy setting. We expect this growth to further lift wage employment numbers, add to household incomes, and benefit more poor families across the archipelago,” Kelly Bird, the ADB’s new country director for the Philippines, was quoted in the statement.
Bird told reporters that he believed the Philippines was now on its “golden age” as economic growth has been achieved for more than 50 years.
For Bird, economic expansion would be sustained in 2018 and 2019 as “reforms are in place to support the government’s infrastructure plan,” referring to the massive “Build, Build, Build” program.
Under “Build, Build, Build,” the government plans to roll out 75 “game-changing” projects, with about half targeted to be finished within President Duterte’s term, alongside spending a total of more than P8 trillion on hard and modern infrastructure until 2022 in a bid to usher in the “golden age of infrastructure.”
Bird added that the government had very sound economic policies in place that would help mitigate external risks.
“Moving forward, the ADB projects services will continue to drive GDP growth, along with manufacturing and construction industries,” the lender said.
“The approval of the Tax Reform for Acceleration and Inclusion [TRAIN] law in December 2017 will augment tax revenues and provide additional fiscal space for more progressive public spending. The policy reforms are expected to yield additional P90-144 billion in tax revenue collection in 2018 and 2019, respectively,” it added.
According to the ADB, “there are external risks to the Philippines’ growth outlook from heightened volatility in international financial markets and uncertainty about global trade openness, although the country’s strong external payments position would cushion these effects.”
Bird said that the Philippines’ economic golden age “occurred in a sound macroeconomic policy environment.”
“This one has occurred with relatively moderate inflation. The fiscal position is very strong—it had a [budget] deficit of 2.2 percent of GDP last year. You’ve seen national government debt as a share of GDP decline, it’s around 42 percent now—it’s the lowest level in terms of its share of GDP for 20 years. You’ve got the credit ratings that show the Philippines is at investment grade rating. We’re also seeing a labor market that has grown robustly,” Bird said.
“When you look at all those factors together, it’s quite a virtuous cycle. That’s why I would call it’s a golden age for the Philippines because it’s growing in a very sound macroeconomic policy framework,” Bird added.
By: Ben O. de Vera, April 12, 2018
Source: Philippine Daily Inquirer
P34.3 billion PPP projects by LGUs in the pipeline
MANILA, Philippines — The pipeline for Public-Private Partnership (PPP) projects for local government units (LGUs) has expanded to seven, with an aggregate value of at least P34.34 billion, as more provincial governments and private proponents join in the fray, the PPP Center said.
The following projects are now on the table: the Baggao Water Supply Project worth P84.22 million, the Cagayan de Oro Septage Management Project worth P128 million, the Quezon City Waste-to-Energy-Project worth P 16.56 billion, Pampanga Bulk Water Supply Project costing P 16.7 billion, the Los Baños Public Market Project amounting to P110 million, and the Cebu City Solid Waste Management Project and the General Santos Public Market Project, the costs for which have yet to be determined.
The PPP Center said LGUs are “keenly looking into” PPP projects to provide vital infrastructure and services for residents and to boost their competitiveness.
“This is a new pipeline that we are building. PPPs at the local level remain a considerable part of the PPP program where we hope to gain more traction and have PPPs address the vast infrastructure needs of the regions,” said PPP Center executive director Ferdinand Pecson.
In the second half of 2017, the PPP Center announced it would be more aggressive in facilitating the use of the PPP mode of procurement for LGUs as the national government leans toward the use of official development assistance (ODA) and own funds for big-ticket infrastructure projects.
Since the rollout of the center’s LGU strategy last year, local governments have put forward several proposals for PPP projects, many of which still fall under the traditional types like the modernization of public markets and other municipal infrastructure.
The center has so far been providing technical assistance for the procurement of these projects.
Of the seven projects, only the Baggao water project is under procurement. The lone bidder for the project, Tubig Pilipinas Consortium, has been prequalified by the municipality of Baggao with the bid submission slated for May 2018.
The solicited water project involves the provision of a Level III potable piped water supply service to households in the municipality. It would be inclusive of the development of a water supply source, as well as a transmission and distribution mechanism that would serve 24 barangays initially. This comprises 21,160 persons out of the total municipal population of 78,200.
The winning bidder would finance, design, and construct the water supply facilities, including bulk water source, storage facilities, and transmission and distribution lines. The private firm would also operate and maintain the facilities over a 25-year concession period.
It would be structured as a design-build-operate-and-transfer project and would undergo a competitive two-stage public bidding process under the BOT Law.
The Cagayan de Oro Septage Management Project implemented by the Cagayan de Oro Water District has recently been approved for procurement. The PPP center said the tender documents for the projects are being prepared.
The solicited project, which would be implemented under a joint contractual scheme involves the finance, design, construction and operation of a septage management facility for Cagayan de Oro City which would be operated under a 25-year concession period.
Currently undergoing negotiations are the the Quezon City Waste-to-Energy Project, an unsolicited joint venture lodged with the local government of Quezon City, and the Pampanga Bulk Water Supply project of the province of Pampanga which would also be under a 25- year concession.
The remaining three projects in the pipeline – Cebu City Solid Waste Management Project, the Los Baños Public Market Project and the General Santos Public Market Project – are under development, which means the completed studies are being reviewed by implementing agencies.
Knowledge corners are now being established in the regional offices of the National Economic and Development Authority (NEDA) to serve as information hubs for PPP. From this investor relations centers, LGUs and implementing agencies can obtain updated information on pursuing projects through the PPP mode of project procurement and delivery.
The first of such information centers opened in Davao City in March.
The PPP Knowledge corners at the NEDA Regional Offices (NROs) will be managed by an NRO focal person for PPPs. Project Development, Investment Programming and Budget Division will respond to queries on PPPs and will coordinate with the PPP Center counterpart for technical support and other relevant information.
by: Czeriza Valencia, April 11, 2018
Source: The Philippine Star
Photo from: Kagay-an
FDIs rise 56.7% in January
MANILA, Philippines — Foreign direct investments to the Philippines posted strong growth during the first month of the year, data released by the Bangko Sentral ng Pilipinas on Tuesday show.
FDIs surged to $919 million in January, 56.7 percent higher than the $587 million level chalked up in the same month last year.
In a statement, the central bank said the January net inflow—which means more investments entered than left—was due to positive investor outlook on the country’s economic performance “on the back of strong macroeconomic fundamentals.”
Job-generating FDIs are a key source of capital for the country’s economy as it provides opportunities for business expansion. Officials want to attract more FDIs, not only keep existing ones, as they tend to stay longer than other capital inflows and create jobs.
In January, equity capital placements, which are considered a gauge of new FDI entry, spiked sevenfold to $531 million from $71 million in the previous year. On the other hand, $58 million of investments headed for the exit, higher than $13 million withdrawals registered a year ago.
That yielded a net equity capital inflow—which accounted for the bulk of FDIs during the month—of $473 million, eight times higher than $58 million logged in January 2017.
Equity capital placements were sourced largely from Singapore, China, Taiwan, Japan, and the United States, the BSP said.
Meanwhile, intercompany borrowings between foreign investors and their Philippine subsidiaries sagged by 16.7 percent to $381 million.
Reinvestment of earnings also decreased by 8.4 percent to $65 million.
Growth Prospects
Two analysts said the Philippines’ bullish growth story stimulated investor appetite during the month.
“This could be attributed to prospects of stronger economic growth this year due to the government's infrastructure program and tax reform,” said Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines.
“The timing of these net inflows might be affected by the peso's weakness and the upward trend in equities during the period,” Dumalagan added.
Separately, Union Bank of the Philippines chief economist Ruben Carlo Asuncion said the jump in FDI last January was expected on account of “robust economic growth prospects.”
The strong FDI growth was also because of the demographic advantage of the country “assuring growing domestic demand and consumption,” as well as the Duterte administration’s commitment to infrastructure development that could spur economic expansion, Asuncion added.
by: Ian Nicolas Cigaral, April 10, 2018
Source: The Philippine Star
Philippines becomes top ASEAN destination
for Taiwan banks
Taipei, April 3 (CNA) The Philippines has become the top destination for Taiwanese banks planning to extend their reach in the Association of Southeast Asian Nations (ASEAN) market, according to a research paper released Tuesday by the Taiwan Academy of Banking and Finance (TABF).
In the research paper, the TABF, a research group under the Financial Supervisory Commission (FSC), said the Philippines, bolstered by its fast-growing economy, has replaced Vietnam for the first time to become the top destination in the ASEAN bloc for local banks seeking to set up branches or representative offices.
Vietnam had been the most-favored ASEAN market for Taiwanese banks in recent years.
The TABF said the local banking sector has been attracted by the fast-growing Philippine economy and views the country as an important revenue resource at a time when the Taiwan market has become saturated due to overbanking.
According to the Asian Development Bank, the gross domestic product of the Philippines is expected to grow 6.8 percent in 2018 on the back of infrastructure investment.
The interest in the ASEAN market from Taiwanese banks has been growing rapidly since the government has been aggressively pushing its New southbound Policy after the Democratic Progressive Party took office in May 2016, the TABF said.
The policy is aimed at forging closer economic ties with the 10 member states of ASEAN, as well as with India, Pakistan, Bangladesh, Nepal, Sri Lanka, Bhutan, Australia and New Zealand, to reduce economic dependence on China.
The research paper urged local banks to expand their talent pools by recruiting international financial specialists and boost business exchanges in the region.
According to statistics compiled by the FSC, the top financial regulator in Taiwan, local banks as of the end of 2017 had set up 485 branches or representative offices worldwide, including 408 located in the Asia- Pacific region, accounting for 84 percent of the total.
In the ASEAN market, the local banking sector has 55 branches and representative offices in Vietnam, the largest number in the bloc, ahead of 47 in Cambodia and 34 in the Philippines.
by Tsai Yi-chu and Frances Huang
Read more from source: Focus Taiwan
In the research paper, the TABF, a research group under the Financial Supervisory Commission (FSC), said the Philippines, bolstered by its fast-growing economy, has replaced Vietnam for the first time to become the top destination in the ASEAN bloc for local banks seeking to set up branches or representative offices.
Vietnam had been the most-favored ASEAN market for Taiwanese banks in recent years.
The TABF said the local banking sector has been attracted by the fast-growing Philippine economy and views the country as an important revenue resource at a time when the Taiwan market has become saturated due to overbanking.
According to the Asian Development Bank, the gross domestic product of the Philippines is expected to grow 6.8 percent in 2018 on the back of infrastructure investment.
The interest in the ASEAN market from Taiwanese banks has been growing rapidly since the government has been aggressively pushing its New southbound Policy after the Democratic Progressive Party took office in May 2016, the TABF said.
The policy is aimed at forging closer economic ties with the 10 member states of ASEAN, as well as with India, Pakistan, Bangladesh, Nepal, Sri Lanka, Bhutan, Australia and New Zealand, to reduce economic dependence on China.
The research paper urged local banks to expand their talent pools by recruiting international financial specialists and boost business exchanges in the region.
According to statistics compiled by the FSC, the top financial regulator in Taiwan, local banks as of the end of 2017 had set up 485 branches or representative offices worldwide, including 408 located in the Asia- Pacific region, accounting for 84 percent of the total.
In the ASEAN market, the local banking sector has 55 branches and representative offices in Vietnam, the largest number in the bloc, ahead of 47 in Cambodia and 34 in the Philippines.
by Tsai Yi-chu and Frances Huang
Read more from source: Focus Taiwan
US-Philippines FTA has high chance of moving forward
MANILA, Philippines — A proposed free trade agreement (FTA) between the US and the Philippines is making strong headway as both parties are showing inclination in moving forward towards the realization of a bilateral deal.
“Good news to learn that United States Trade Representative (USTR) Ambassador Robert Lighthizer has acknowledged in a recent US Congressional hearing that as they conduct thorough studies in strengthening bilateral relations and having an FTA with other countries in the Pacific, such as Japan, Malaysia and Vietnam, they also look at the Philippines as a reasonable first step in their strategy in the Asia-Pacific region,” Trade Secretary Ramon Lopez said.
“I believe that this will be a good indication of how we will be able to elevate the quality of our trade ties with the US, going beyond the current GSP arrangements,” Lopez added.
In his statement posted on the USTR website, Lighthizer was quoted as saying that the US is “prepared to explore the possible countries in Africa and Southeast Asia that might be appropriate for us to enter into a free trade agreement.”
Lopez said the exploration stage of the proposed bilateral FTA between the Philippines and the US are continuing.
He said domestic consultations with industries are ongoing in preparation for advancement of talks and commencement of official negotiations.
US-Philippine Society co-chair and former US Ambassador to the Philippines John Negroponte, meanwhile, has said the US government sees the Philippines in a good position to secure a bilateral FTA with them given significant progress in the country’s trade and investment front.
Negroponte said there is recognition in Washington that the Philippines continues to make progress in addressing trade and investment issues and that its economy continues to demonstrate growth potential.
“Washington also understands good news stories in the Philippines. There is recognition in progress in intellectual property protection and improved labor standards and a commitment to pursue reforms and ease restrictions on investment,” he said.
“The Philippines seems well positioned and agreeable to explore a bilateral free trade agreement and its modest trade surplus is not seen in Washington as a significant obstacle by comparison with certain Asian economies,” Negroponte added.
Negroponte, however, said the Philippines should recognize that in Washington, perceptions influenced by the media and political interests also matter.
“Trade agreements are reached in a political atmosphere not in a technical vacuum,” he said.
“Warm relationship developed over the past year between the two Presidents and two administrations offer much promise as a starting point and should be helpful in driving the deal, but we should not underestimate the benefits of gaining a broad a constituency of support in Congress and the foreign policy community in order to achieve success,” Negroponte added.
by: Richmond Mercuio, March 26, 2018
Read more from source: The Philippine Star
Philippines among new key markets for Taiwan’s
Kwang Yang Motor Co. Ltd.
TOKYO, Japan—Taiwanese motorcycle giant Kwang Yang Motor Co. Ltd. (Kymco) is set to boost its operations in Southeast Asia following its strong drive into Europe, with the Philippines seen as among the most important markets in the region for its growth strategy.
“We are relatively small in Southeast Asia. We are stronger in Europe, but our next phase, our next stage will focus on Southeast Asia especially now that we are aggressively developing scooters,” Kymco Group chairman Allen Ko said in an interview here.
“I think we still have a lot of potential in the Philippines, that’s how I feel,” he said.
Southeast Asia is a very attractive market for Kymco to grow its brand moving forward because its cities are very congested, Ko said.
“Even though some of the governments are not very aggressive promoting electric scooters, they are actually looking for solutions (for the congestion and pollution). We meet certain officials from certain countries and they usually ask if we have good solutions for electric scooters. Actually, they are preparing for this so we are quite optimistic with the new Ionex. We have a very good chance to grow the market in Southeast Asia,” Ko said.
Kymco on Thursday unveiled the Ionex, a new electric vehicle solution that includes electric scooters and public charging infrastructure.
Ko said Kymco plans to capitalize on its new Ionex system to penetrate a bigger market in Southeast Asia, including the Philippines.
“As far as I know, the governments everywhere in the world these days they are really looking for the solutions for congestions and pollutions in the cities. Sooner or later combustion engines will be phased out. But, of course, in different parts of the world, the progress for electric transformation is different. In Kymco’s point of view, we can still manufacture the gasoline powered scooter for the next 10 to 20 years,” he said.
Ko said Kymco hopes to introduce its new Ionex solution to the Philippines as early as next year.
“I think we have a pretty good brand name in the Philippines and we have been there for quite a long time. We just need to find the right product to penetrate the market,” he said.
Ko admitted, however, that Kymco continues to lag behind other motorcycle brands in the Philippines, which is why it is keen on strengthening its presence in the country.
“Yes we are currently behind, that is why we need to work harder,” he said.
“For the Philippines, we will work hard for this market although it is still very hard to compete with Honda and Yamaha, but we have several ideas. Motorcycle is a very big market in the Philippines,” added Kymco Group vice president for overseas development Leon Wu.
Last year, Wu said Kymco sold 15,000 units in the Philippines, accounting for only 1.2 percent of total industry sales.
Given the importance and potential of the Philippine market for the group, Wu said Kymco wants to more than double its current market share in the country by 2020.
“I hope in three years we can reach three percent market share in the Philippines,” he added.
Kymco is one of the leading global powersports brands, offering a product range that includes scooters, motorcycles, mobility scooters, ATVs and utility vehicles.
The company has an existing assembly plant in the Philippines that has a capacity to roll out between 20,000 to 30,000 units annually.
by: Richmond Mercurio, March 24, 2018
Read more from source: The Philippine Star
“We are relatively small in Southeast Asia. We are stronger in Europe, but our next phase, our next stage will focus on Southeast Asia especially now that we are aggressively developing scooters,” Kymco Group chairman Allen Ko said in an interview here.
“I think we still have a lot of potential in the Philippines, that’s how I feel,” he said.
Southeast Asia is a very attractive market for Kymco to grow its brand moving forward because its cities are very congested, Ko said.
“Even though some of the governments are not very aggressive promoting electric scooters, they are actually looking for solutions (for the congestion and pollution). We meet certain officials from certain countries and they usually ask if we have good solutions for electric scooters. Actually, they are preparing for this so we are quite optimistic with the new Ionex. We have a very good chance to grow the market in Southeast Asia,” Ko said.
Kymco on Thursday unveiled the Ionex, a new electric vehicle solution that includes electric scooters and public charging infrastructure.
Ko said Kymco plans to capitalize on its new Ionex system to penetrate a bigger market in Southeast Asia, including the Philippines.
“As far as I know, the governments everywhere in the world these days they are really looking for the solutions for congestions and pollutions in the cities. Sooner or later combustion engines will be phased out. But, of course, in different parts of the world, the progress for electric transformation is different. In Kymco’s point of view, we can still manufacture the gasoline powered scooter for the next 10 to 20 years,” he said.
Ko said Kymco hopes to introduce its new Ionex solution to the Philippines as early as next year.
“I think we have a pretty good brand name in the Philippines and we have been there for quite a long time. We just need to find the right product to penetrate the market,” he said.
Ko admitted, however, that Kymco continues to lag behind other motorcycle brands in the Philippines, which is why it is keen on strengthening its presence in the country.
“Yes we are currently behind, that is why we need to work harder,” he said.
“For the Philippines, we will work hard for this market although it is still very hard to compete with Honda and Yamaha, but we have several ideas. Motorcycle is a very big market in the Philippines,” added Kymco Group vice president for overseas development Leon Wu.
Last year, Wu said Kymco sold 15,000 units in the Philippines, accounting for only 1.2 percent of total industry sales.
Given the importance and potential of the Philippine market for the group, Wu said Kymco wants to more than double its current market share in the country by 2020.
“I hope in three years we can reach three percent market share in the Philippines,” he added.
Kymco is one of the leading global powersports brands, offering a product range that includes scooters, motorcycles, mobility scooters, ATVs and utility vehicles.
The company has an existing assembly plant in the Philippines that has a capacity to roll out between 20,000 to 30,000 units annually.
by: Richmond Mercurio, March 24, 2018
Read more from source: The Philippine Star
FDI reach record $10.05 billion in 2017 – BSP
MANILA, Philippines — Net inflow of foreign direct investments (FDIs) reached a record high of $10.05 billion in 2017 on the back of positive investor sentiment amid the country’s sound macroeconomic prospects, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.
According to data from the BSP, net inflow of FDIs last year amounted to $10.05 billion, 21.4 percent higher than the $8.28 billion recorded in 2016. It also breached the full-year 2017 target of $8 billion earlier set by the BSP. “Investors continue to view the country as a favorable investment destination on the back of the country’s sound macroeconomic fundamentals and growth prospects,” the BSP said. The economy expanded 6.6 percent in the fourth quarter of 2017, leading to a full-year growth of 6.7 percent in 2017. Economic managers expect economic growth this year to hover between seven and eight percent. Last year, the BSP said all major FDI components registered increases during the period. In particular, net equity capital investments rose 25.9 percent to $3.26 billion from $2.59 billion in 2016. This happened as gross placements, amounting to $3.74 billion, outpaced withdrawals which only reached $479 million. The central bank said equity capital placements originated mainly from the Netherlands, Singapore, the United States, Japan, and Hong Kong. By sector, equity placements were channeled to gas, steam, and air conditioning supply; manufacturing; real estate; construction; and wholesale and retail trade activities. Meanwhile, the BSP said net availment of debt instruments – comprised mainly of intercompany borrowings or lending between foreign investors and their subsidiaries – reached $6.01 billion, 20.7 percent higher as compared to the $4.98 billion posted in 2016. Reinvestment of earnings likewise expanded 9.3 percent year-on-year to $776 million from $710 million. On the other hand, the BSP said net inflow of FDIs for the month of December 2017 alone, declined nine percent to $699 million from $768 million the same month the previous year. The central bank attributed this to the drop in the net investments in debt instruments, which was cut more than half to $335 million during the period. Net placements of equity capital, likewise, inched down 0.4 percent to $305 million, originating from Singapore, Japan, the Netherlands, the US and Luxembourg. These were placed in manufacturing; real estate; wholesale and retail trade; information and communication; and arts, entertainment and recreation activities. Reinvestment of earnings, meanwhile, grew 24.1 percent to $59 million during the month. Inflows from FDIs, remittances, exports, tourism receipts and the business process outsourcing sector help build the country’s gross international reserves that serve as buffer against external shocks. For 2018, the BSP said it sees FDIs reaching $8.2 billion, higher than the $8 billion target for 2017. by Mary Grace Padin, March 13, 2018 Read more from source: The Philippine Star |
Philippines is best country to invest in, says report
MANILA, Philippines — The Philippines ranked first among a list of countries “worthy of investment” this year based on a recent survey conducted by an American media company.
In its report titled “2018 Best Countries to Invest In,” US News & World Report hailed the Philippines as the top investment destination, citing the country’s $304.9-billion gross domestic product, 103.3 million population and $7,739 GDP per capita.
“In contrast to declining inflows of foreign direct investment, or FDI, to Southeast Asia as a whole, the Philippines continued to perform well, according to United Nations data,” the report read.
“In years to come, the country is expected to receive more FDI from within the region from powerhouses like China that are looking to utilize available labor in developing nations,” the report added.
The Philippines is “flooded with billions of dollars” in remittances and is enjoying a “flourishing tourism industry,” which has helped the country maintain a budget surplus. “But the implicit dependence on global trends has proved risky, and opportunities in electronics, petroleum and other goods are being explored,” it added.
The Philippines bested its neighbors in Southeast Asia, Indonesia (ranked 2nd), Malaysia (4th), Singapore (5th) and Thailand (8th).
Poland took the 4th spot, while Australia placed sixth, followed by Spain.
In 9th spot was India, followed by Oman, Czech Republic, Finland, Uruguay, Turkey, Ireland, Netherlands, United Kingdom, Brazil, France and Chile.
The rankings were based on 65 attributes presented in a survey of more than 21,000 respondents across the globe. It focused on eight attributes: entrepreneurship, economic stability, favorable tax environment, innovation, skilled labor, technological expertise, dynamism and corruption.
“It is based on how global perceptions define countries in terms of a number of qualitative characteristics, impressions that have potential to drive trade, travel and investment, and directly affect national economies,” the report read.
“The more a country was perceived to exemplify a certain characteristic in relation to the average, the higher that country’s attribute score and vice versa,” it added.
Finance Secretary Carlos Dominguez III cited various reasons and advantages which could be why the Philippines was ranked the best country to invest.
“Among the reasons could be: a young and hardworking workforce, an excellent inclusive growth momentum, an expanding middle class, politically stable environment, strong and popular leadership, fiscal discipline, stable monetary policy, membership in the ASEAN (Association of Southeast Asian Nations), an achievable infrastructure program, a strong anti-corruption drive and improved revenue collection,” he said in a text message.
Socioeconomic Planning Secretary Ernesto Pernia earlier said the Philippines was the third fastest-growing economy in Asia with a full-year GDP of 6.7 percent last year.
Pernia, who heads the National Economic and Development Authority, said the Philippines is expected to remain one of the fastest growing economies of Asia over the next couple of years.
“In 2018, Philippine GDP growth could be the second fastest, next only to India,” he said.
by Helen Flores, Mary Grace Padin , March 6, 2018
Read more from source: The Philippine Star
Taiwan delegation to promote academic, business
links with Philippines
Manila, Feb. 3 (CNA) A delegation of Taiwanese academics, public service officials and businessmen will embark on a six-day visit to the Philippines on Sunday in a bid to strengthen bilateral exchanges in the areas of professional training and industrial development.
According to a press statement from the Taipei Economic and Cultural Office (TECO) in the Philippines, the delegation will seek to establish an innovative network to link companies, cities, and universities on both sides.
One of the delegation's main objectives is to explore how Taiwanese and Philippine universities can share resources and expertise in the area of technical training, TECO said.
The two sides will also seek to create new opportunities for cooperation between industry and academia and to attract more Filipinos to Taiwan for work and study, the office said.
Another goal is to promote communication between city mayors in Taiwan and the Philippines and thus develop profitable interaction between cities on both sides, TECO said.
The Taiwan delegation, comprising 26 academics and nine representatives from the public and private sectors, was scheduled leave Taiwan on Sunday and visit the Asian Development Bank on Monday.
At the bank, the 35 Taiwanese will learn more about inclusive growth, an economic concept that creates employment opportunities for all sectors of the economy and distributes profits fairly, according to TECO.
Taiwan's representative to the Philippines Gary Lin (林松煥), who will host a reception dinner for the delegation, said he is looking forward to a fruitful exchange of ideas.
The delegation was assembled by Edu-Connect Southeast Asia Association, a Kaohsiung-based NGO, and the Manila Economic and Cultural Office in Taiwan,
By: Emerson Lim and Kuan-Lin Liu
Source: Focus Taiwan
Taiwanese investors explore PH opportunities in
agriculture and aquaculture
Taiwanese investors are looking for local partners for their planned expansion in the agriculture and aquaculture industries in Mindanao.
Representatives from the Taiwan External Trade Development Council (TAITRA) was recently in the country for a Business Opportunity Research Study Mission led by manager Dr. Albert Fan to meet with the extension offices of the Board of Investments in Davao Mindanao Development Authority (MINDA), Department of Agriculture, Department of Trade and Industry, Local Economic and Investments Promotion Officers of Davao Region.
Fan informed the Davao stakeholders that TAITRA is looking for business partners in agriculture and aquaculture, two of Taiwan’s key sectors.
Trade Undersecretary and BOI Managing Ceferino Rodolfo said the shared optimism and confidence of Taiwanese investors in making their businesses grow in the Philippines particularly in Mindanao is a pronounced manifestation of the country’s inherent and competitive advantages.
He said that this positive development is a testament to the country’s sound economic fundamentals and sustained investor confidence that bodes well with the BOI’s thrust to further strengthen the country’s position as a preferred global investment destination.
Rodolfo also said that investment prospects in Mindanao remain rosy given the R29.35 billion significant investment projects registered with the BOI from January to December 2017.
Of this investment value, R15.25 billion were from Region 12 (SOCCSKSARGEN), R7.23 billion from Region 10 (Northern Mindanao), R5.43 billion from Region 11 (Davao Region), and R1.44 bIllion from Region 13 (CARAGA).
The visit was in preparation for a planned Taiwan Trade Mission to Davao on March 2018 where TAITRA targets to bring in around 20 to 25 Taiwanese companies in the production and marketing of food processing and packaging machineries, green industry products and medical devices industries.
Aside from the trade mission, TAITRA and the Taiwanese Investors also plan to hold a Trade Exposition to showcase Taiwan’s State-of-the-Art agricultural equipment in Davao City tentatively scheduled for September 2018.
read more from source: Manila Bulletin,
Published February 3, 2018, 10:00 PM
By Bernie Cahiles-Magkilat
Subic to welcome Italian Cruise liner, Costa Atlantica on Saturday
SUBIC BAY FREEPORT--The Italian-flagged cruise ship Costa Atlantica will arrive here on Saturday and will dock at the Alava Pier, the Subic Bay Metropolitan Authority (SBMA) announced on Friday.
“Subic’s time to become the next cruise ship playground of Asia has already begun, not in June as we initially announced, but this Saturday,” said SBMA chairman and administrator Wilma T. Eisma, as she briefed members of the newly-formed technical working group for SubiCruise campaign.
Eisma said the 85,619-ton ship with a capacity of 2,114 passengers will be arriving from a port call in Manila.
“We are already very excited,” she said, adding that “I hope that this will spark our dream of making Subic a part of the inter-island itinerary of international cruise ships.”
The arrival of Costa Atlantica is expected to be a litmus test for Subic, which is raring to draw foreign tourists to the various attractions on its shores.
Eisma had earlier announced the arrival in Subic of the Royal Caribbean cruise ship MS Ovation of the Seas in June, to be followed by the Voyager of the Seas in August.
She said the Subic Bay Freeport promises to offer the best tourism facilities and services for tourists from the arriving ships, with memorable and tailored-tourism experiences to meet the expectation of visitors.
The visiting Costa Atlantica is a Spirit-class cruise ship owned and operated by Costa Crociere (Costa Cruises), an Italian cruise line based in Genoa, Italy and owned by Carnival Corporation & Plc.
The Costa Cruises brand currently operates 15 cruise ships that provide holidays in the Mediterranean, Northern Europe, the Caribbean, Indian Ocean, the Middle East, Southeast Asia and South America.
Costa Atlantica is renowned for having all of its decks named after the movies of Italian movie director Federico Fellini. (PNA)
Photo courtesy of SBMA Communications Department By Malou Dungog February 9, 2018, 6:44 pm
Source: Philippine News Agency
“Subic’s time to become the next cruise ship playground of Asia has already begun, not in June as we initially announced, but this Saturday,” said SBMA chairman and administrator Wilma T. Eisma, as she briefed members of the newly-formed technical working group for SubiCruise campaign.
Eisma said the 85,619-ton ship with a capacity of 2,114 passengers will be arriving from a port call in Manila.
“We are already very excited,” she said, adding that “I hope that this will spark our dream of making Subic a part of the inter-island itinerary of international cruise ships.”
The arrival of Costa Atlantica is expected to be a litmus test for Subic, which is raring to draw foreign tourists to the various attractions on its shores.
Eisma had earlier announced the arrival in Subic of the Royal Caribbean cruise ship MS Ovation of the Seas in June, to be followed by the Voyager of the Seas in August.
She said the Subic Bay Freeport promises to offer the best tourism facilities and services for tourists from the arriving ships, with memorable and tailored-tourism experiences to meet the expectation of visitors.
The visiting Costa Atlantica is a Spirit-class cruise ship owned and operated by Costa Crociere (Costa Cruises), an Italian cruise line based in Genoa, Italy and owned by Carnival Corporation & Plc.
The Costa Cruises brand currently operates 15 cruise ships that provide holidays in the Mediterranean, Northern Europe, the Caribbean, Indian Ocean, the Middle East, Southeast Asia and South America.
Costa Atlantica is renowned for having all of its decks named after the movies of Italian movie director Federico Fellini. (PNA)
Photo courtesy of SBMA Communications Department By Malou Dungog February 9, 2018, 6:44 pm
Source: Philippine News Agency
MECO in Taipei to relocate to Neihu
Taipei, Jan. 11 (CNA) The Manila Economic and Cultural Office (MECO) in Taipei said Thursday that it will move next month to a new address in the city's Neihu District, where it will have more space and better integration of services.
In a press release, MECO said its new Taipei office will be located on the second floor of No. 55-57 on Zhouzi Street in Neihu and will open on Feb. 12.
At the new address, MECO said, it will be able to serve as a "one-stop shop," providing consular and notary services, and dealing with matters such as labor affairs and social security.
Currently, MECO is located on Changchun Road and provides consular and notary services, while its Labor Center on Jianguo North Road deals with labor affairs.
In the press release, Philippine representative to Taiwan Angelito Tan Banayo was cited as saying that MECO's relocation will enhance efficiency and allow better services to Filipinos in Taiwan and Taiwanese planning to visit the Philippines.
The new premises are about 991.8 square meters and are located close to Gangqian Station on the Taipei MRT Brown Line, according to MECO.
Since 1993, MECO has been serving as a link between Taiwan and the Philippines, providing consular services at its main offices in Makati City in the Philippines and in Taipei, and at its extension offices in Taichung and Kaohsiung, according to its website.
The MECO Labor Center is the representative office of the Philippines Department of Labor and Employment (DOLE), the Philippines Overseas Employment Administration (POEA) and the Overseas Worker Welfare Administration (OWWA) in Taiwan.
The labor center protects the rights of Filipino workers in Taiwan and also provides information, training and other services.
According to Taiwan's national statistics data, there were approximately 148,691 Filipinos working in Taiwan as of the end of November 2017, making them the third largest group of foreign workers in Taiwan after Indonesia's 258,242 and Vietnam's 206,184.
By: Elaine Hou and William Yen
Source: Focus Taiwan
New Southbound Policy and Dutertenomics
complement each other - MECO
Manila, Sept. 24 (CNA) Taiwan's New Southbound Policy and Dutertenomics complement each other economically, said Arthur Abiera, Jr., assistant corporate secretary of Manila Economic and Cultural Office (MECO).
Abiera explained to the Central News Agency that Dutertenomics seeks "to improve on construction of infrastructure and to deliver a better commercial and investment environment."
"We welcome foreign business companies to be a part of the related plans", he added.
Executive Secretary Salvador Medialdea of the Philippines Presidential Office described Dutertenomics as focusing on removing criminals from the streets in order to allow the populace to stay away from drugs and creating a safe environment for economic and social development.
Medialdea also said the government is working to bring lasting peace to the southern regions of the Philippines, eliminating terrorist and rebel organizations.
When law and order is restored, economic and social progression will naturally flower, he explained.
When asked if there are opportunities for Taiwan under Dutertenomics, Abiera replied "Of course there is, but the size of Taiwanese businesses may be the crucial factor".
He said that many foreign businesses are far larger than Taiwan companies and Taiwan firms may have to work together with foreign enterprises to compete for infrastructure projects rather than go it alone.
While China may be interested in dams, railway, airports, seaports and other major projects, Taiwan has an advantage in areas such as traffic management, electric cars, smart cities and information and communication technology.
Dutertenomics refers to Philippine President Rodrigo Duterte's socioeconomic policies in which the development of infrastructure and industry play a significant role.
By: Emerson Lim and William Yen
Source: Focus Taiwan
Abiera explained to the Central News Agency that Dutertenomics seeks "to improve on construction of infrastructure and to deliver a better commercial and investment environment."
"We welcome foreign business companies to be a part of the related plans", he added.
Executive Secretary Salvador Medialdea of the Philippines Presidential Office described Dutertenomics as focusing on removing criminals from the streets in order to allow the populace to stay away from drugs and creating a safe environment for economic and social development.
Medialdea also said the government is working to bring lasting peace to the southern regions of the Philippines, eliminating terrorist and rebel organizations.
When law and order is restored, economic and social progression will naturally flower, he explained.
When asked if there are opportunities for Taiwan under Dutertenomics, Abiera replied "Of course there is, but the size of Taiwanese businesses may be the crucial factor".
He said that many foreign businesses are far larger than Taiwan companies and Taiwan firms may have to work together with foreign enterprises to compete for infrastructure projects rather than go it alone.
While China may be interested in dams, railway, airports, seaports and other major projects, Taiwan has an advantage in areas such as traffic management, electric cars, smart cities and information and communication technology.
Dutertenomics refers to Philippine President Rodrigo Duterte's socioeconomic policies in which the development of infrastructure and industry play a significant role.
By: Emerson Lim and William Yen
Source: Focus Taiwan
Taiwan investor keen to fund local electronics
manufacturer – TECO
A Taiwanese investor is ready to finance an electronic manufacturing company in the Philippines to the tune of $12 million (P6 billion), according to the head of the Taiwan Economic Cooperation Office (Teco).
“Taiwan has one businessman willing to invest $12 million,” Gary Song-Huann Lin, Teco representative in the Philippines, said. “But I can’t give you his full name because others might obstruct his participation in the Philippines.”
Lin said his Taiwanese colleague was emboldened to invest his money in the country following the signing of a bilateral investment agreement (BIA) last month.
He was referring to the first updated investment agreement that Taiwan has signed with a country targeted by its New Southbound Policy, the Philippines among them.
Taiwan’s New Southbound Policy calls for the “development of comprehensive partnerships” within the Association of Southeast Asian Nations (Asean) and South Asia regions, as well as with Australia and New Zealand. Teco said this policy involves 18 countries promoting regional exchanges and collaborations.
“I am happy to see that our investment will be properly protected, according to international standard, and it is timely for Taiwanese investments to come to the Philippines to join President Duterte’s ‘Build, Build, Build’ inclusive development program,” Song-Huann Lin told the BusinessMirror.
He said Taiwanese businessmen were emboldened to come to the Philippines and invest here because of Duterte’s announcement that Taiwan and the Philippines are closest neighbors who must be supportive of each other’s economic developments.
Lin and the Manila Economic Cooperation Office (Meco) representative to Taiwan, Angelito Banayo, represented their respective countries at the signing of the BIA in Makati City last December 6.
According to Taiwan’s Minister of Economic Affairs Shen Jong-chin, the agreement is a win-win for the economic development of both countries.
The agreement lays out a legal foundation for Taiwanese investors in the Philippines and Filipino investors in Taiwan, which will function as a safety net should they encounter conflicts while doing business abroad, according to Allan Lin, president of the Taiwan Association Inc. Philippines.
While the terms of the agreement have not been made public for the time being, a person familiar with the matter previously revealed that it puts in place mechanisms that make investments more transparent and the treatment of investors fairer, including provisions on how investors can seek government assistance when they run into trouble.
Given that markets have drastically changed in the two-and-a-half decades since the signing of a bilateral agreement, the new agreement is completely different, according to Lin.
“It is the ministry’s hope that similar BIAs can be signed with other countries that are the focus on Taiwan’s New Southbound Policy, such as Vietnam, Thailand, Malaysia, Indonesia and India,” Song-Huann Lin added.
By Recto Mercene, January 9, 2018
Source: Business Mirror
“Taiwan has one businessman willing to invest $12 million,” Gary Song-Huann Lin, Teco representative in the Philippines, said. “But I can’t give you his full name because others might obstruct his participation in the Philippines.”
Lin said his Taiwanese colleague was emboldened to invest his money in the country following the signing of a bilateral investment agreement (BIA) last month.
He was referring to the first updated investment agreement that Taiwan has signed with a country targeted by its New Southbound Policy, the Philippines among them.
Taiwan’s New Southbound Policy calls for the “development of comprehensive partnerships” within the Association of Southeast Asian Nations (Asean) and South Asia regions, as well as with Australia and New Zealand. Teco said this policy involves 18 countries promoting regional exchanges and collaborations.
“I am happy to see that our investment will be properly protected, according to international standard, and it is timely for Taiwanese investments to come to the Philippines to join President Duterte’s ‘Build, Build, Build’ inclusive development program,” Song-Huann Lin told the BusinessMirror.
He said Taiwanese businessmen were emboldened to come to the Philippines and invest here because of Duterte’s announcement that Taiwan and the Philippines are closest neighbors who must be supportive of each other’s economic developments.
Lin and the Manila Economic Cooperation Office (Meco) representative to Taiwan, Angelito Banayo, represented their respective countries at the signing of the BIA in Makati City last December 6.
According to Taiwan’s Minister of Economic Affairs Shen Jong-chin, the agreement is a win-win for the economic development of both countries.
The agreement lays out a legal foundation for Taiwanese investors in the Philippines and Filipino investors in Taiwan, which will function as a safety net should they encounter conflicts while doing business abroad, according to Allan Lin, president of the Taiwan Association Inc. Philippines.
While the terms of the agreement have not been made public for the time being, a person familiar with the matter previously revealed that it puts in place mechanisms that make investments more transparent and the treatment of investors fairer, including provisions on how investors can seek government assistance when they run into trouble.
Given that markets have drastically changed in the two-and-a-half decades since the signing of a bilateral agreement, the new agreement is completely different, according to Lin.
“It is the ministry’s hope that similar BIAs can be signed with other countries that are the focus on Taiwan’s New Southbound Policy, such as Vietnam, Thailand, Malaysia, Indonesia and India,” Song-Huann Lin added.
By Recto Mercene, January 9, 2018
Source: Business Mirror
MECO chairman hopes to see more direct hiring of Filipino workers
Taipei, Sept. 22 (CNA) The head of the Manila Economic and Cultural Office (MECO) in Taipei has expressed the hope that there will be more direct hiring of Filipino migrant workers in Taiwan to spare the workers the burden of hefty brokerage fees.
In an interview with CNA earlier this week, MECO Chairman and Resident Representative Angelito Banayo said progress has been made over the past years in lowering brokerage fees for migrant workers, "but more can be done."
He pointed out that Taiwanese recruitment agencies sometimes collaborate with Filipino brokers to charge workers hidden fees. Workers may also borrow money from the recruitment agencies to pay for the fees and are charged high interest rates, he said.
"Those are things that have to be cracked down on," said Banayo, whose office is the Philippines' de facto embassy in Taiwan.
Filipino workers pay fees to manpower brokers in their home country to secure a job in Taiwan because they cannot find those job openings on their own, and depend on brokers to find them, according to the Taiwan International Workers' Association (TIWA).
Brokers often charge the workers between NT$50,000 (US$1,657) and NT$120,000 in fees, the association said, exceeding the legal maximum of one month's salary.
The workers are often told that the fees include visa fees, airfare, training fees and fees for other documents, but the brokers often leave the workers to pay these fees on their own, said TIWA researcher Chen Hsiu-lien (陳秀蓮).
One way around the onerous fees would be for workers to be hired directly by Taiwanese employers, as Banayo acknowledges.
He said his office is promoting direct hiring and that there will be further talks between Taiwanese and Filipino officials on increasing the approach.
"Hopefully we will see much progress in that," he said.
At present, there are many obstacles to direct hiring, including the inability or lack of interest of smaller employers to spend time and money recruiting and vetting people in other countries.
Banayo agreed that the cumbersome paperwork involved in the direct hiring process can also be frustrating and prevent employers from using the service.
"We'll try our best to streamline those things, on our part," he said.
Resolving these issues is important, Banayo said, because migrant workers are important to Taiwan's economy and the number of Filipino workers in Taiwan is expected to increase in the future.
Taiwan has an aging population and will need foreign workers, while the Philippines has plenty of young people, he said.
For instance, although Taiwan has world-class agricultural technology, its farmers are aging and the second generation does not want to work on farms, Banayo said.
"So that is one area where Filipinos probably could help, in continuing the productivity of your farms," he said.
By: Christie Chen
Source: Focus Taiwan
In an interview with CNA earlier this week, MECO Chairman and Resident Representative Angelito Banayo said progress has been made over the past years in lowering brokerage fees for migrant workers, "but more can be done."
He pointed out that Taiwanese recruitment agencies sometimes collaborate with Filipino brokers to charge workers hidden fees. Workers may also borrow money from the recruitment agencies to pay for the fees and are charged high interest rates, he said.
"Those are things that have to be cracked down on," said Banayo, whose office is the Philippines' de facto embassy in Taiwan.
Filipino workers pay fees to manpower brokers in their home country to secure a job in Taiwan because they cannot find those job openings on their own, and depend on brokers to find them, according to the Taiwan International Workers' Association (TIWA).
Brokers often charge the workers between NT$50,000 (US$1,657) and NT$120,000 in fees, the association said, exceeding the legal maximum of one month's salary.
The workers are often told that the fees include visa fees, airfare, training fees and fees for other documents, but the brokers often leave the workers to pay these fees on their own, said TIWA researcher Chen Hsiu-lien (陳秀蓮).
One way around the onerous fees would be for workers to be hired directly by Taiwanese employers, as Banayo acknowledges.
He said his office is promoting direct hiring and that there will be further talks between Taiwanese and Filipino officials on increasing the approach.
"Hopefully we will see much progress in that," he said.
At present, there are many obstacles to direct hiring, including the inability or lack of interest of smaller employers to spend time and money recruiting and vetting people in other countries.
Banayo agreed that the cumbersome paperwork involved in the direct hiring process can also be frustrating and prevent employers from using the service.
"We'll try our best to streamline those things, on our part," he said.
Resolving these issues is important, Banayo said, because migrant workers are important to Taiwan's economy and the number of Filipino workers in Taiwan is expected to increase in the future.
Taiwan has an aging population and will need foreign workers, while the Philippines has plenty of young people, he said.
For instance, although Taiwan has world-class agricultural technology, its farmers are aging and the second generation does not want to work on farms, Banayo said.
"So that is one area where Filipinos probably could help, in continuing the productivity of your farms," he said.
By: Christie Chen
Source: Focus Taiwan
banner photo credit: Albert Goquinco, photo hosted on skyscrapercity