August 26, 2010 ASEAN members are prodding the Philippines to ease limits on foreign investments to take advantage of increased inflows into the region this year, a senior trade official said.
All ten members of the Association of Southeast Asian Nations also committed to roll out joint promotions to lure investors and consult with the private sector to further realize plans to establish a regional production base, a statement released yesterday showed.
The prescriptions were discussed as officials gathered this week for the 42nd ASEAN Economic Ministers meeting in Da Nang, Vietnam.
"If we’re going to get into a freer [market for] foreign direct investments (FDI), they want us to work out internally those constitutional barriers," Trade Undersecretary Cristino L. Panlilio said in a telephone interview on Tuesday after an ASEAN Investment Area Council meeting.
The Philippines bars full foreign ownership of several businesses such as media, utilities, and mining under Republic Act 7042 which in turn is based on limits cited in the Constitution. The law directs Malacañang to issue every year a "foreign investment negative list" which specifies how much of a stake a non-Filipino entity can have in a business depending on the industry.
This poses a hurdle to full implementation of the ASEAN Comprehensive Investment Agreement, signed in February 2009 to complement the bloc’s plans for a single market by 2015.
"They’re enjoining us to settle that," Mr. Panlilio said.
He went on to state that the Philippines had attracted just a minor share of FDI inflows. The Philippines has lured only 5.3% of the $36.803 billion in investments that has flowed into the region, according to United Nations data.
"It’s very, very weak. That’s a challenge for the Board of Investments," Mr. Panlilio said, referring to the Department of Trade and Industry-attached agency which he heads.
Moving forward, more FDI flows into the region are expected this year due to a pickup in the global economy, a joint statement released by ASEAN ministers showed.
"[We] anticipate higher foreign direct investment inflows into ASEAN in 2010 and beyond, after a downturn in 2008 and 2009 ASEAN’s share of total global FDI inflows increased to 3.6% in 2009, from 2.8% in 2008, despite the recent economic downturn," the ministers declared.
"This reflects well of the ASEAN region in terms of its ability to continue to attract a higher share of investment flows," they added.
"[And] to further attract FDI flows, [we] agreed to progress work to facilitate greater ASEAN investment flows through joint investment promotions, advancing work on best practices on investment and engaging the private sector in further consultations to obtain feedback on improving the ASEAN investment climate." (Business World Online) The Philippines’ most livable, highly urbanized cities
August 24, 2010
Quality of living is a major criteria in coming up with this latest list of the most livable highly urbanized cities in the Philippines. Those who either lived or stayed in these cities can best describe how comfortable, worry-free and convenient to be residents. From security, peace and order, booming business activities to adequate healthcare and educational centers – all these are essential components to make a city a great place to live in.
1. DavaoCity
Who would ever want to live in a city where the monthly crime rate falls below one percent? Without batting an eyelash, DavaoCity deserves to be on top of this list. This most progressive city in Southern Philippines has been awarded the “MostPeacefulCity in East and Southeast Asia for seven years and is home to the “Best Police Office in the Country” for six consecutive years. Going around DavaoCity even at night is very safe and I’ve personally experienced it. The city is also known to be typhoon-free all throughout the year and has an admirable city health office that offers free clinical and medical services to its less fortunate urban and rural residents. In terms of business, there is no doubt that DavaoCity is continuously booming. It is home to Mindanao’s largest SM Mall and will soon open AyalaCenter’s first lifestyle mall in Mindanao. For four consecutive years, DavaoCity has also been recognized by Asiaweek as one of the 20 Best Cities in Asia.
2. BacolodCity
Known to be the country’s “City of Smiles”, Bacolod is always beaming with cheers of progress and peaceful living. Unlike other crowded highly urbanized cities, this premiere capital of Negros Occidental is proud for its clean and green surroundings and wide roads. The city’s residential and commercial zones are well-planned, making it the most organized urban planning model for local government units in the country. Bacolod has also made it to the Hall of Fame of the Cleanest and Greenest Highly Urbanized City.The city is home to two major shopping mall chains, SM and Robinsons, and has one of the most modern airports in the country today. With an upbeat local economy, the city became the region’s best performing city in economic development last year. It is also one of the fastest growing BPO and call center hubs in the country today. This is the reason why Bacolod is the second city in Visayas and Mindanao to have its own Starbucks, a visual peg of a progressive city.
3. MakatiCity
For most senior citizens, living in Makati is a utopian experience because of the VIP privileges accorded to them. Residents who are 60 years and above can watch free movies in any Makati cinemas, receive mid-year cash bonuses, get free cakes during their birthdays and golden wedding anniversaries as well as free vitamins and free out-of-town trips. Moreover, they are also exempted from paying individual income taxes and they enjoy special discounts in almost all business establishments around the city. This successful program for the elderly by the MakatiCity government has inspired other Metro Manila cities to do the same. As the country’s financial district, Makati is an attractive choice for comfortable cosmopolitan living by many expatriates and transient tourists. The city is home to five 5-star hotels and two popular world-class shopping malls.
4. MandaluyongCity
One of the cities in Metro Manila that remains diligent in ensuring security, peace and order is MandaluyongCity. During the past years, this strategic city right at the heart of the Metro has beefed up its local government security by putting up barangay outposts in almost every corner of the residential areas. Local police has also been establishing checkpoints in the city’s major roads and mobile cluster patrols are regularly roving the city all throughout the day. During the past months, the city enjoyed very low crime rate within its city center compared to other Metro Manila cities. Another remarkable feature of this “TigerCity” is its very convenient location. Being at the center of the metropolis, MandaluyongCity has easy access to Manila (through Kalentong or Sta. Mesa exits), Makati (through Makati-MandaluyongBridge), Quezon City and San Juan (through Brgy. Addition Hills) and Pasig (through Shaw Boulevard).
5. CebuCity
As the most progressive city in the South, CebuCity has become an alternate choice to those who want to veer away from the very congested Metro Manila life. As most residents say: “Cebu is like Manila minus the super heavy traffic and pollution.” As the QueenCity of the South, Cebu has a good blend of history, culture and a booming economy. Amid its fast-paced economic progress, the city still exudes its rich cultural and historical heritage. It remains to be one of the country’s top business and tourism destinations in terms of the number of visitor arrivals. It has the second busiest airport in the country with regular international flights from South Korea, Hong Kong, Qatar and Singapore. (Manila Standard Today)
*08.26.2010
Businesses’ optimism on the state of the economy was more pronounced for the fourth quarter, reaching an all-time high of 59.2 percent, the Bangko Sentral ng Pilipinas (BSP) latest survey showed.
This was more than 10 percent higher than last quarter’s 46.3 percent.
The latest results of the Business Expectations Survey (BES) also showed that business sentiment remained positive and on an uptrend since Q3 2009, with the overall confidence index (CI) rising to 45.0 percent from 43.9 percent in Q2 2010 and from 18.4 percent in Q3 2009.
The confidence index is computed as the percentage of firms that answered in the affirmative less the percentage of firms that answered in the negative with respect to their views on a given indicator.
The central bank said that the respondents attributed their optimistic outlook to the following factors: steady growth of overseas Filipinos’ (OFs) remittances, smooth transition of power and favorable expectations on the new government that could boost investor confidence in the economy, better performance of exports and sustained investment inflows, and government spending on infrastructure, social services and environment protection that could spur business activity.
Rosabel Guerrero, director of the BSP Department of Economic Statistics, said that the improvement in the overall outlook is consistent with the solid macroeconomic environment, "as evidenced by the narrowing of the country’s credit spreads, rising equity market index, appreciating peso and moderate inflation."
"The positive business sentiment likewise mirrored the improving business confidence in countries such as Canada, Hong Kong, India, Indonesia, Germany and Italy," Guerrero said.
The survey showed that business optimism in both the National Capital Region (NCR) and Areas Outside NCR (AONCR) improved in Q3 2010 with NCR respondents notably more upbeat in their business outlook than respondents based in AONCR.
This indicates that economic conditions and prospects remained more favorable in NCR compared to that in AONCR.
Guerrero added that businesses involved in international commodity trading continued to have a positive outlook.
"However, the optimism of exporters and dual-activity firms declined compared to a quarter ago in view of the respondents’ expectations that there will be no significant change in export demand, low volume of orders for some agricultural products during the lean months and the existing ban on tuna fishing on international waters," she added.
By employment size, all firms remained positive in their business outlook in the current and next quarters. (Malaya * 08.20.2010)
INVESTMENTS REGISTERED with the Philippine Economic Zone Authority (PEZA) reached P68.609 billion from January to July, up by 57.54% from yearago levels, according to data released on Thursday.
The total of 296 projects are projected to make $4.404 billion in export sales once they are operational.
More than fifty-five thousand jobs will be generated from the investments, the PEZA data showed.
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State statistics agency notes slowing growth of spending on health goods and services
THE COUNTRY’S total and per capita health spending grew in 2005-2007, but at a slowing pace in terms of both current and constant prices, the National Statistical Coordination Board (NSCB) said in a statement yesterday.
At current prices, total spending for health rose to P234.3 billion in 2007 from P198.4 billion in 2005, with growth slowing to 8.3% in 2007 from 9.1% in 2006. (Business World / august 4, 2010).
Manila Bulletin / Aug 3, 2010 Trade and Industry Secretary Gregory L. Domingo met with United States Ambassador Harry K. Thomas at the Board of Investments on July 29, 2010, to discuss more US investments and Philippine export. The Secretary outlined key initiatives of the Department on improving the country’s business environment, engaging with more partners in trade agreements, protecting consumers, and assisting viable SMEs.
___________________ New BoI chief sets aggressive sales, marketing campaigns for investments By BERNIE CAHILES-MAGKILAT
Manila Bulletin / August 3, 2010, 5:08pm
The Board of Investments (BoI) will embark on aggressive sales and marketing campaigns starting with the US and Japan this year to attract more foreign investors, particularly in the business process outsourcing and light industries sectors.
This was bared by newly installed DTI undersecretary for trade and investments Cristino L. Panlilio to reporters while on his way to his oath-taking ceremony in Malacañang on Tuesday.
The BoI is the government’s premier investment promotion agency. It administers the Investment Priorities Plan (IPP), an annual list of preferred economic areas that would be entitled to government incentive package such as income tax holiday, preferential duty on the importation of capital equipment, additional tax deduction on labor and training expenses, employment of foreign nationals, among others.
According to Panlilio, the first investment campaign salvo by the new administration would be in the U.S. in September this year in time for President Aquino’s visit to Washington.
