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Synopsis

The year 2009 saw the unfolding of events such as the demised of former President Corazon Aquino and the decision of her son Benigno Aquino III to seek the presidency this May10 election, the two calamities, typhoon Ondoy and Pepeng that resulted in huge flooding resulting in loss in the destruction of lives and infrastructure; the massacre of 57 people in Maguindanao. At yearend, our budget deficit was P290 billion.

Right now, Congress will only five more session days left before it adjourn session togive way for the for the election campaign in anticipation for the May 10 national election. Among the lists of pending bills, the business sector has limited its wish to two priority measures namely, the creation of the department of Information and Communication Technology (DICT) and the rationalization of fiscal incentives which is seen as less attractive compared to incentives/benefits offered by other countries. It remains to be seen if Congress will still be able to address this 2 legislative measures.

The Commission on Elections (COMELEC) is now on its crucial stage preparing the first automatic election. Despite its repeated assurance that the May election will be automated, COMELEC is saying that it is open to the possibility of reverting to manual polls President Gloria Macapagal Arroyo’s nine-year presidency will end in June 30, 2010 and has identified three priority areas before she step down: 1) – the economic recovery as a result of the global financial crisis, 2) a final comprehensive peace agreement with the Moro Islamic Liberation Front and, 3) ensuring the success of the first automated elections on May 10.

Among the current crop of presidential aspirants, Senator Benigno “Noynoy” Aquino III is the top contender leading in most surveys. At the first President Forum series organized by the Makati Business Club (MBC) he promised not impose new taxes or increase tax rates. He further said he would pursue the rationalization of fiscal incentives given to investors as a way to stop the revenue leaks and lower the ballooning budget deficit.

US Ambassador Kristie Kenney bid farewell to Filipinos yesterday as she flew back to the US via Northwest Airlines flight 280 at 8:20 AM. During her four year stay in the country, Kenney endear herself to Filipinos with her charm and outgoing personality. Her replacement is Amb. Harry K. Thomas, the first African-American envoy to the Philippines who has not arrived in Manila. Ms. Leslie Bassett currently serves as the Charge d’ Affaires of the US Embassy, Manila.

- Evelyn Mariano, Manila


CUSTOMS

RP-Thailand rice deal could be inked next month (Business World, Jan 24, 2010)
THE PHILIPPINES and Thailand could next month sign an agreement that will allow the former to delay tariff reduction commitments by increasing rice purchases from its neighbor, a Trade official said. Both sides finally settled a duty-free quota and purchase terms at the sidelines of an Association of Southeast Asian Nations (ASEAN) senior economic officials meeting in Vietnam last Thursday, Trade Assistant Ramon Vicente T. Kabigting said."From now to 2014, we will provide an annual platform of access of up to 367,000 metric tons of rice," he said in a telephone interview on Friday. "We commit that if we are buying and they participate in this, then we will look at them as one of our strong suppliers," Mr. Kabigting added, explaining that the Philippines will not be compelled to purchase the grain from Thailand if conditions are not favorable."They also commit to have it ready for us if we need to buy it," he said.The two Southeast Asian neighbors have been in talks since late last year when Thailand insisted the Philippines slash rice tariffs to 20% this year, from 40%, under the ASEAN Trade in Goods Agreement.


Poor harvests (Manila Standards, Jan 25 2010)
The El Niño weather pattern and rising demand from big consumers like India are now exerting upward pressure on commodity prices, especially those of rice and sugar. The Agriculture Department now sees rice output in the Philippines falling to 1.7 percent in the first half of the year to 7.25 million metric tons from 7.38 million tons a year earlier as farmers will be forced to reduce their planting hectarage because of lower rainfall. Making matters worse is Thailand’s warning that the El Niño may also trim production in the world’s top rice exporter. Indonesia, the world’s third-largest rice grower, made the same prediction because of the dry spell. Agriculture, which accounts for about a fifth of the gross domestic product in the Philippines, has become a laggard sector. Agriculture output in the Philippines shrank 0.37 percent in 2009 after typhoons damaged crop farms in the last few months. Crop production, which contributes nearly half of the total farm output, contracted 1.23 percent.


BOC starts connecting 9 agencies under National Single Window (Business Mirror, Jan 25, 2010)
The Bureau of Customs has started to interconne t some of the agencies that issue the bulk of the import permits, in a move for the Philippines to comply with the regional requirements of the Single Window Project.Customs Deputy commissioner Alexander Arevalo said Malacanang has already disbursed the entire funding of P500 Million for the implementation of the National Single Window (NSW) project, [paving way for BOC to move its interconnection with other government agencies. Arevalo said BOC has started connecting with nine agencies under the Dept. of Agriculture, Dept. of Health, Dept. of Trade and Industry, and Bureau of Internal Revenue. “These agencies already represent 90 percent of the [import] permits,” Arevalo said. The Philippine Economic Zone Authority (PEZA), however, has asked for a postponement of its interconnection with BOC for a few more months in order to adjust its own system, Arevalo said. Most of the permits issued by PEZA are to the locators of the country’s dozens of economic zones. Under the plan, BOC has to interconnect all 40 govt agencies that issue import permits before President Arroyo steps down from power in June this year, in a move to comply with its commitment with the Associatino of Southeast Asian Nations (ASEAN).

The Asean Single Window should have been in place in 2008, but so far only Singapore was the only country in the 10 member-nation regional bloc that was able to comply. “All applicants of imports will do a one-time registration of their respective agency into the system. After that they [importers] should be able to file their import permit to the internet already,” Arevalo said. He added that BOC will provide agency personnel with Blackberry devices for them to check permits or cancel these if necessary anywhere under the sun or beside the container in question. “their working environment is not in the office but on the field,” Arevalo said. VG Cabuag BOC Awards NSW contract to UK firm.


Gov’t to slap P3 per kilo service fee on imported duty-free sugar (Manila Bulletin, Jan 22, 2010)
A P2 to P3 per kilo service fee would be slapped on the 150,000 metric ton sugar importation that the government is allowing the private sector to bring in duty-free. This was bared by Agriculture Secretary Arthur Yap after the meeting of the National Price Coordinating Council (NPCC) noting that measures have to be put in place to guard against price speculation. “We are allowing this duty-free importation back to back with the private sector so the government will not pay for the importation,” he said. Under normal circumstances, imported sugar is slapped with 40 percent tariff. Prices of sugar have gone up to over P50 per kilo, but Yap said they are adjusting the suggested retail prices of sugar to P45-P48 per kilo from the prevailing prices of P40 per kilo for brown and P50 for white sugar although in some isolated areas prices have gone up to P60 per kilo already.To ensure that the imported duty-free sugar cannot be re-exported by unscrupulous traders given the more attractive world market prices, Yap said that the Sugar Regulatory Authority (SRA) would allocate the sugar based on their accredited sectors.


14th Congress pressed to ratify Customs pact (Business World, Jan 21, 2010)
THE SIX SESSION DAYS left until the current Congress adjourns this Feb. 5 for the election campaign is enough time to ensure ratification of an international pact that will align signatories’ Customs procedures with each other, thus, facilitating trade, the chief of the Senate’s foreign relations committee said yesterday. "[The Revised Kyoto Convention, or RKC] has already been endorsed by all executive departments involved such as the secretaries of Finance, Trade and Industry and Agriculture and all other affected by the Customs situation. This is good news for the business community because it would make the investment climate more inviting to foreigners if they find our customs procedures will be following the convention since they are familiar with that," Sen. Miriam Defensor Santiago told reporters at the sidelines of the third Revised Kyoto Summit yesterday.


Comprehensive tariff review set (Malaya, Jan 25, 2010)
The government is conducting a comprehensive review of the tariffs on all products for a five-year period beginning next year. The Tariff Commission is set to conduct public hearings and consultations on the comprehensive tariff review on products falling under Chapters 1 to 97 of the Tariff and Customs Code of the Philippines on February 8 to 12. The last tariff schedule was embodied in Executive Order 574, signed by President Arroyo on Nov. 4, 2006, outlining the most-favored nation tariff schedule of Section 14 of the Tariff and Customs Code, covering Chapters 1 to 97 with more than 10,000 tariff lines beginning 2007 until 2010. Trade Undersecretary Elmer C. Hernandez said the schedule is being prepared so that the rates will be firmed up before 2011.


Sugar prices soar, hit P60/kilo in Metro Manila (Philippines Star, Jan 25, 2010)
Agriculture Secretary Arthur Yap has directed the Sugar Regulatory Administration (SRA) to submit a new suggested retail price (SRP) for sugar after prices of refined sugar soared to P60 per kilo in several Metro Manila retail outlets. Market monitoring by the Bureau of Agricultural Statistics (BAS) as of Jan. 23 showed that the prevailing price of refined sugar is P52 per kilo while raw or brown sugar sells for P44 per kilo. “The consuming public should be informed about the SRP for sugar to prevent overpricing by speculators and unscrupulous wholesalers and retailers who are taking advantage of the current sugar situation,” Yap said.


ENERGY


Groups warn BIR turnabout on Shell bad for the economy (Manila Times, Jan 25 2010)
Businessgroups are concerned over the Bureau of Internal Revenue’s (BIR) recent policy reversal, something the Bureau of Customs is using to force Pilipinas Shell Petroleum Corp. to pay for alleged excise tax deficiencies. In a letter addressed to BIR Commissioner Joel Tan-Torres, the European Chamber of Commerce of the Philippines (ECCP) said the reversal of the bureau’s stand on Shell’s liability is undermining investor interest in the country. Shell is contesting Customs’ claim before the Court of Tax Appeals, which has issued a temporary restraining order against the bureau that will lapse on February 9.


Shell’s insistence that the CCG shipments were non-taxable raw materials used for producing its gasoline products was based on a Department of Energy ruling in 2004. The BIR under three previous commissioners also affirmed this position, with the latest ruling made in July 2009.Tan-Torres, however, reversed the BIR opinion when he took over the agency in December, giving credence to Customs’ claim.


Power outage hits parts of Metro Manila (Business World, Jan 25 2010)
A POWER OUTAGE hit parts of Metro Manila and nearby provinces yesterday as two units of the 1,000-megawatt (MW) Sual plant in Pangasinan conked out, shedding around 400 MW of capacity in the Luzon grid. Manila Electric Co. (Meralco) said in a statement that its distribution network experienced power shortage at 12:41 p.m. yesterday. Meralco scheduled rotating brownouts starting at 1:30 p.m. to spread out the power deficiency within the network.


ExxonMobil finds possible oil, gas reserve off Tawi-Tawi (Business Mirror, Jan 21, 2010)
The ExxonMobil Corporation, the world's largest international oil and gas company, hit something in the deep waters of Tawi-tawi that could somehow ease the country’s energy requirement. Scott Spradlin, operations manager of ExxonMobil Exploration and Production of the Philippines, said in a press briefing here Thursday morning that they found hydrocarbon, which could either mean oil or gas, some 16,000 meters deep in the waters of Tawi-tawi. The company has been drilling in Tawi-tawi for more than two years now. Its first drilling well is about 35 nautical miles from Mapun Island. Spradlin said the company has already spent about US$100 million in the first well.


RP to invite US investors for bioethanol (Business World, Jan 24 2010)
THE AGRICULTURE department will invite the United States Department of Agriculture (USDA) and US-based businessmen for an agribusiness investment mission on making bioethanol this year. "Our target is to bring in American investors with cellulosic technologies," Marriz B. Agbon, president of the Philippine Agricultural Development and Commercial Corp., told reporters late last week. "We will plan another investment mission for them." Cellulosic technology is the process of making bioethanol from agricultural wastes only like rice hulls and coconut wastes."We have been pushing for second-generation biofuel feed-stock in order to lessen the pressure on food crops like sugarcane," Mr. Agbon said. In 2012, there will be six operating local bioethanol firms that will produce 279 million liters of bioethanol using sugarcane as feedstock. -- Neil Jerome C. Morales


Energy sector attracted major investments in renewable energy projects (Philippines Star, Dec 30 2009)
The influx of major investments in the renewable energy development was one of the high points in the local energy sector in 2009. Coined in seven-letter acronym, “BIG SHOW”, which stands for Biofuels/ Biomass; Geothermal; Solar; Hydro; Ocean and Wind, the Department of Energy (DOE) took renewable energy (RE) development to greater heights by signing P90 billion worth of RE-related contracts with at least 18 groups, composed of local and foreign investors.

These RE contracts with foreign and local investors pave the way for what had been envisioned 18 years ago before the Renewable Energy Act of 2008 or Republic Act 9513 was signed into law which aims to make the Philippines one of the biggest producers of RE resources in the world.Based on DOE’s latest projections, RE is foreseen to provide up to 40 percent of the country’s primary energy requirements over the 10-year period beginning in 2003.RE-based capacity, as projected by the DOE, is expected to reach 9,147 MW by 2013, a dramatic 100-percent increase from its  current level of 4,449 MW.Since RA 9513 took effect in January this year, there was already a total of 1,636 megawatt (MW) additional power capacity from new RE projects envisioned to be installed within the next five years. Some 379 MW will come from the seven contracts issued to six RE developers in September 2009. In 2010, the Department of Energy (DOE) is  optimistic that it could sign another 60 to 80 more RE contracts.


FINANCE

BSP backs foreign investors for rural banks (Malaya, Jan 12, 2010)
To further enhance the rural banking industry, the Bangko Sentral ng Pilipinas (BSP) believes that rural banks should be allowed to take in foreign investors. At present, the law allows foreign investments only in thrift, commercial and universal banks. RA 7353 or the Rural Banks Act of 1992 provides for the fully Filipino-owned rule . Rural Bankers Association of the Philippines (RBAP) said that allowing limited foreign ownership in rural banks can open the system to more opportunities, global standards in technology, governance, expertise, and funds.


Budget gap RP’s next worry (Business World, Jan 25, 2010)
STABLE FUNDAMENTALS give the Philippines enough elbow room to normalize its fiscal condition in the face of risks from economic recovery like resurgent inflation, debt watcher Moody’s Investor Service said in a report released yesterday. The country’s biggest concern now, said Moody’s Senior Vice-President/Regional Credit Officer Thomas Byrne in a phone interview yesterday, is whether the government can resume paring the budget gap. Recalling in its "Asia-Pacific Regional Outlook -- January 2010" that it had raised the country’s bond rating in July last year from B1 to Ba3, or three rungs below investment grade, with a stable outlook, Moody’s said in its report that "a strong external payments position and stable financial system provide time for the government to return to a path of fiscal consolidation, after the effects of the global recession dissipate."


FOOD & AGRICULTURE

DA to improve corn e-trading system (The Inquirer, Jan 25, 2010)
The Department of Agriculture wants to modify its electronic corn trading system to jumpstart activity in the exchange, hoping that it will evolve into a futures bourse for various types of commodities. Since its soft launch in November 2009, the Agricultural Commodity Exchange System (ACES) has generated zero activity on the buyer’s board. In contrast, several offers have been logged on its seller’s board. ACES chair Gregorio Tan Jr. admitted that the board had not successfully matched a seller with a buyer since November because of this. ACES is now exploring ways to generate more activity for the system, possibly by lowering the minimum price for sellers, he said.“Right now the minimum price is P13 per kilo (the NFA’s buying price for clean, dry corn). Users find it expensive,” Tan said. Another possible policy reform is forward selling.


New micro-agri loan rule OK’d (Business World, Jan 27 2010)
Small farmers may soon tap any bank for their funding needs after the Bangko Sentral ng Pilipinas (BSP) allowed all banks to offer micro-agri loans. BSP Governor Amando M. Tetangco, Jr. told reporters on Friday the Monetary Board, the central bank’s policy-setting body, has agreed to permit all banks to offer micro-agri loans, instead of limiting this service to rural banks participating in the Microenterprise Access to Banking Services (MABS) program.MABS, which receives funding from the United States Agency for International Development, is assisting the Rural Bankers Association of the Philippines (RBAP) expand member-banks’ financial products and services. The central bank would issue a circular formalizing the new rule this week.



Big banks can now lend directly to farmers (The Inquirer, Jan 24, 2010)
The Bangko Sentral ng Pilipinas has allowed all banks, including commercial and universal banks, to engage in direct lending to farmers.At present, big banks lend to farmers through conduit banks, including rural banks. The BSP said the move, which was approved during the meeting of the central bank’s Monetary Board last Thursday sought to boost lending to the agriculture sector, whose income is threatened by stiffer competition posed by the further lowering of tariffs on imports. “We want to open up the opportunity to all banks to offer micro-agricultural loans. This is in line with the advocacy of the BSP to improve financial inclusion (which means making banking services accessible to as many people as possible),” BSP Governor Amando Tetangco Jr. said.


RP eyes US technology, investments in bioethanol (Business Mirror, Jan 24, 2010)
The Philippines is looking to expand its prospects in biofuels by exploring nontraditional technology and investments from the United States.Philippine Agribusiness Development and Commercial Corp. (PADCC), the investment arm of the Department of Agriculture, is set to invite American investors to explore the possibility of acquiring cellulosic technology, which uses wood, grasses, and the non-edible parts of plants to produce ethanol.PADCC president Mariz Agbon said the new technology could boost biofuels production in a fast-growing market such as the Philippines.


INFRASTRUCTURE


Subic Bay International Airport ‘no longer feasible,’ faces closure (Business World, Jan 25 2010)
THE SUBIC BAY International Airport could be closed by the government as the facility has been rendered unprofitable by the closure of Federal Express’ (FedEx) delivery hub and the planned expansion of a nearby facility, an official yesterday said. The airport’s shuttering is unlikely to occur within the year, but the state agency in charge of the Subic Freeport is already studying how to convert the space, Subic Bay Metropolitan Authority Administrator Armand C. Arreza told reporters who visited the freeport yeaterday."We are already studying the conversion of the airport. With the development of the Diosdado Macapagal International Airport (DMIA) in Clark, Pampanga, our airport is no longer feasible," he said in Filipino at the sidelines of a press briefing on Philip Morris International’s expansion plans in Subic.


Only 5 of 23 SONA Roads to be completed by June (Business Mirror, Jan 25, 2010)
EVERAL road projects promised by President Arroyo during her previous State of the Nation Address (Sona) will not be completed before she steps down from power in June, a report from the Department of Public Works and Highways (DPWH) shows. According to the data, only five of the agency’s 23 Sona projects will be completed, and all of these are in Luzon, which have a total funding of P11 billion.According to the agency’s estimates, the projects will only be 90-percent complete by June, but most of the infrastructure will be finished within the year.


POLITICS

Cayetano bears verbal attacks for no-show Manny (Manila Times, Jan 26, 2010)
Fireworks were expected when the report on Sen. Manuel “Manny” Villar’s role in a controversial road project finally reached the floor—and the senators did not disappoint. Sen. Alan Peter Cayetano (Right) parries questions from Senate President Juan Ponce Enrile about the road project of Sen. Manuel Villar Jr. on Monday. The two measures—one to censure him for alleged corruption, another to clear him of charges—were still in the sponsorship stage late Monday. But this did not keep senators from sniping at each other, depending on their political leanings, with the debates punctuated by shouting matches and flaring of tempers. The heated and protracted sponsorship of the two measures prevented the Senate from voting whether to censure Villar, as recommended by the report of the Senate Committee of the Whole, or to clear him, as recommended by a resolution originally signed by 12 senators. Zubiri said that the floor deliberations would continue today. Voting will take place after the interpellations.


How demolition jobs can backfire (January 26,2010) http://www.philstar.com/Article.aspx?articleId=543896&publicationSubCategoryId=64
That falsehood about Aquino lacking the capability to govern clearly backfired during the MBC forum. By lowering expectations, the impact was enhanced when the real dealwas demonstrated and it drastically countered the picture Aquino’s rivals tried to paint.

In the 2010 presidential campaign, the rivals of Senator Noynoy Aquino have committed many blunders and some of these are now delivering added benefits for the dominant presidential candidate. One of these points of attack they have taken against Aquino is the attempt to belittle his capabilities to govern as president.Likely the result of panic reactions over the way Aquino has been dominating the SWS and Pulse Asia polls since October — they are desperately trying to apply ‘shock and awe’ tactics. It is shocking and awful if what they are saying happens to be true and not a half truth or a lie.In their underground propaganda, Aquino has been painted as autistic, a killer, a fake and all sorts of unsavory smears which they cannot say to his face. On their above ground propaganda, they impose so many standards on Aquino which they themselves cannot meet. And they slyly try to belittle his ability to govern as president.

But the problem with resorting to lies is that it is the easiest to expose. A lie can backfire and even render the opposite effect. Instead of eroding Aquino’s base, the exposed lie can strengthen it and even add to it. A worse effect is — the liar adds to his credibility woes.Thus, when Aquino joined several of the presidential debates, those who were affected by rumors that he is “abno (a local term for intellectually challenged)” were surprised with what they saw. In the ANC Harapan Forum last year, the panel of professionals felt that Aquino was among the top three. In the online Harapan poll, he topped.


Can Estrada still catch up? (Manila Standards)
The much-awaited decision of the second division of the Commission on Elections ruled on Jan. 20 that former President Joseph Estrada of the Puwersa ng Masang Pilipino is qualified to run for president elicited mixed reactions from various political quarters. The poll body’s favorable ruling made Estrada feel like he was in cloud nine. He said the decision would have a “big impact” on his campaign in the face of the observation that many of his potential supporters were vacillating on his candidacy for fear their votes might just be wasted if he would be disqualified.


Aquino: No new taxes if elected president (ABS-CBN, Jan 22, 2010)
Philippine Senator Benigno "Noynoy" Aquino Jr. III, frontrunner in opinion polls ahead of a May national election, said on Thursday he would not impose new taxes or increase tax rates if elected president. He told members of the Makati Business Club that he would pursue the rationalization of fiscal incentives given to investors as part of efforts to plug revenue leaks and lower the budget deficit. "We will refrain from imposing new taxes or increasing tax rates," Aquino told the business forum. "I strongly believe that we can collect more taxes at the BIR (Bureau of Internal Revenue) and higher duties at customs if we become more serious in curbing and punishing tax evasion and smuggling."In an attempt to court the business community's support, he stressed that lower taxes is part of his "vision to transform our country."


OTHERS

Mining investments seen rising (Business World, Jan 25, 2010)
INVESTMENTS in the capital-intensive mining industry could surge this year to $1.428 billion, up from 2009’s below-target result, on the back of increased demand that has led to an uptick in metal prices. The forecast, by the Mines and Geosciences Bureau (MGB), is expected to help allow the country to achieve a 2013 target of $13.496 billion in investments since a 2004 Supreme Court ruling allowing foreign ownership of local ventures. High demand and the resulting uptick in metal prices will encourage miners to start commercial operations or increase output, government and industry officials said late last week. The local mining industry netted $640.22 million in investments last year, 1.51% short of the $650-million target, MGB data show. Some $2.8 billion has been poured in by investors since the 2004 high court ruling. The MGB forecasts investments to more than double to $3.416 billion next year from 2010, rising slightly to $3.855 billion in 2012, and tapering off to $1.994 billion in 2013.


P&G to take advantage of ’10 recovery (Business World, Jan 18, 2010)
Consumer products giant Procter & Gamble (P&G) wants to boost sales this year through aggressive marketing to reach more consumers, and by offering new products, officials said at the weekend. “P&G Philippines products include Ariel, Tide, Mr. Clean, Joy, Downy and Perla for its fabric and home care line; Safeguard and Zest for personal and skin care; Pampers for baby care; Whisper for feminine care; Pantene and Rejoice for hair care; Oral-B for oral care; and Eukanuba for pet care. Procter & Gamble Philippines, Inc. reported P3.729 billion in gross revenues in 2008, up by 8.3%. Profits went up by 30% to P879 million. P&G has 138,000 employees working in more than 80 countries worldwide.


Few RP exporters make use of perks under AFTA (GMA, Jan 18, 2010)
Only a fifth of Philippine export companies invoke preferential duty under a free trade deal with other countries in the Asian region, although the number is expected to double in the future as more firms boldly consider new and emerging export markets, Asian Development Bank (ADB) economists said. In a working paper released on Thursday, ADB economist Ganeshan Wignaraja and consultants Dorothea Lazaro and Genevieve De Guzman said the 20% use rate was more than expected based on previous studies.


Imposition of Excise Tax on Liquor Defended (Business Mirror, Jan 17 2010)
THE Philippines will continue to defend its liquor excise-tax regime even with the United States officially joining the European Union in seeking redress before the World Trade Organization (WTO) over what they described as “discriminative” excise- tax system in the country for distilled spirits. Ambassador Manuel A.J. Teehankee, Philippine permanent representative to the WTO in Geneva, said the issue is critical for the country because of its serious implications to livelihood of Filipino farmers and workers involved in very specific types of produce such as nipa, coconut, cassava, camote, buri palm and sugar cane. He stressed that the Philippines is fully committed to a rules-based multilateral trading system. “As a matter of policy and practice, the Philippines accords utmost importance to complying with all its obligations under the WTO agreements.” The Philippines, Teehankee said, will continue to work with the US with a view to bringing this matter to a mutually acceptable resolution.


In the dark on trade deals (Business Mirror, Jan 21 2010)
LACK of information, coupled with procedural problems, discouraged companies from fully taking advantage of the potential benefits of a free-trade scheme in the Association of Southeast Asian Nations (Asean), a working paper authored by trade experts from the Asian Development Bank (ADB) revealed. ADB trade experts, led by Ganeshan Wignaraja, noted in the paper “FTAs and Philippine Business” that lack of information is the “biggest barrier” to the use of free-trade agreements (FTAs) among exporters of manufactured goods from three sectors, namely, transport equipment, processed foods and electronics. “Surprisingly, despite more than 15 years of experience with Afta [Asean Free-Trade Area}, the firms’ survey revealed that a lack of information is the primary reason firms do not use FTAs, as reported by around 80 percent of nonusers,” the report read. Besides the lack of information, other impediments to the use of FTAs include the availability of export processing zone-incentive schemes, low most-favored nation (MFN) rates (particularly in electronics), delay in origin administration, rent-seeking behavior and nontariff measures in partner country markets.


Palace allows congressional franchise of Schutzengel Telecom to lapse into law (Business World, Jan 24, 2010)
A new telecommunication company is set to enter the market after President Gloria Macapagal-Arroyo allowed a bill that grants it the franchise to operate to lapse into law. A Palace document showed that Republic Act (RA) No. 9857 lapsed into law on Dec. 20, 2009. The law grants a franchise to Schutzengel Telecom, Inc. to construct, install, establish, operate and maintain telecommunication systems in the country.The law is the consolidated version of Senate Bill No. 3387 and House Bill No. 6612.The Constitution provides that any bill ratified by both houses of the Congress will automatically become law even without the President’s signature 30 days after receipt by the Palace.


UPS Asia Pacific names Tan as regional director (Business World, Jan 25, 2010)
UPS Asia Pacific has appointed Peter Tan as its new regional director of brand communications and sponsorships.
Based in Singapore, he is responsible for all sports marketing, sponsorship, advertising, customer communications, direct mail, public relations and employee communications activities in the region.

Prior to his current position, Peter was the regional director of UPS Beijing 2008 Olympics project based in Beijing, China, where he managed the organizations sports’ marketing, sponsorship and marketing activities associated with the sponsorship of the games. The Beijing Olympics was UPS Asia Pacific’s single biggest sponsorship ever undertaken. Peter succeeds Tan Sock Hwee who has accepted an assignment at UPS headquarters in Atlanta as international communications coordinator.

Peter began his career with UPS in 1994 and has held a variety of management positions in Communications,business Development and Marketing. In March 2003, Peter spearheaded the Asia launched of UPS’ rebranding project, which was one of the most significant and largest corporate identify transformations ever. UPS is the world’s largest package delivery company and a global leader in supply chain and freight services.

IBM set to expand operations in Cebu
CEBU CITY -- Multinational technology firm IBM is expanding its operations in Cebu with the launching next week of a “global delivery center,” its second in the Philippines. IBM Philippines country general manager James Velasquez will lead the inauguration of the facility, which aims to help businesses and other organizations compete in a global economic environment.

The Cebu facility is part of a global network that includes Argentina, Brazil, China, Egypt, India, Romania and Vietnam. The first IBM global delivery center in the Philippines is in Eastwood City in Quezon City.

IBM global delivery centers provide business consulting, systems integration, information and data management, application development, testing, packaged software solutions and non-English language translation.

IBM has been in the Philippines since 1937, providing hardware, software and services. In Cebu, it maintains a sales and distribution office at the Asiatown IT Park.

Philip Morris opens warehouse in Subic
PHILIP MORRIS Philippines Manufacturing, Inc. held groundbreaking ceremonies Monday for its $500-million tobacco leaf warehouse at the Subic free port. The 20,000-sq.-m. facility will store raw materials for the cigarette maker’s manufacturing operations in Southeast Asia. “The project that we are groundbreaking today further cements our commitment to the economic development of this country,” Chris Nelson, the firm’s managing director, said. -- Jessica Anne D. Hermosa