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DTI implements stricter regulations for steel and cement imports The Department of Trade and Industry (DTI) will be implementing stricter import compliance on construction materials such as cement and steel to resolve the illegal importation of sub-standard materials, which are considered hazardous during natural calamities.

ccording to the investigation reported by the Philippine Iron and Steel Institute (PISI), the use of sub-standard Asteel bars as construction materials in building infrastructure (i.e. houses, public markets, etc.) caused the death of hundreds of people during the magnitude 7.2 earthquake that hit in Bohol and Cebu in 2013. Former chairman of the Senate Committee on Trade, Commerce and Entrepreneurship Senator Paolo Benigno “Bam” Aquino IV said that DTI, PISI, and Steel Angles, Shapes and Sections Manufacturers Association of the Philippines (SASSMAPI) reported widespread selling of sub- standard steel products (i.e. reinforcing steel bars and angle bars) in the country, which were seized by the DTI. These products either had no Import Commodity Clearance (ICC) or Philippine Standard (PS) Mark, or had PS Mark but failed the standard test, leading DTI to conclude that these were smuggled from China. The PISI recently notified the DTI about the possible existence of a new batch of sub-standard steel products in the size of every steel shipment from the current 3 pieces per shipment local industry since there were reported cases that Chinese to 100 pieces per 5,000 metric tons of steel shipment. “The authorities discovered illegal steel plants in Jiangsu, China. problem with the (current) sampling size is its only 3 pieces no “These illegal steel mills use induction furnaces and largely matter how big the shipment is, so it seems not proportionate. produce low-quality construction steel such as reinforcing steel We feel it is not the right sampling size and it’s not representative bars or rebar, much of which is exported,” PISI said. Notably, of the entire shipment,” DTI Secretary Ramon Lopez said. in 2015, approximately 80% of the consumed steel products To further ensure the safety of future infrastructure projects, in the country were imported from China. Given this, PISI the DTI also wants to eliminate the presence of “fly-by-night” president Roberto Cola is pushing for a “stricter implementation importers in the cement industry. As a result, the DTI issued of standards to be applied to both locally manufactured and AO 12-02:2017 for imported Portland and blended hydraulic imported steel products for the benefit of the Filipino consumer.” cement with pozzolan in March. “All cement importations At present, the DTI is developing a new Administrative Order sourced from a foreign-based manufacturer holding a valid PS (AO) on steel importation which intends to adjust the sampling license, now requires an ICC certificate on a per shipment per

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In 2015, approximately 80% of the consumed steel products in the country were imported from China.

The DTI is developing a new DAO on steel importation, which intends to adjust the sampling size of every steel shipment.

application for ps license and icc certificate

Application for PS Quality and/or Safety Certification Mark License shall be processed in accordance with the following: hh The application form shall be filed by a business entity (partnership/corporation) duly registered with the Securities and Exchange Commission (SEC). hh If the applicant is a foreign-based manufacturer, for purpose of accountability, the application shall be filed by its local brunch duly registered in accordance with Philippine laws. Application for Import Clearance Commodity (ICC) shall be processed in accordance with the following: hh All cement importers must be duly registered with SEC or DTI prior to receiving cement importer shipments at the port of entry and have a minimum paid in capitalization of P20 million. hh Only importers duly authorized by the PS license holder shall apply for ICC on a per shipment per bill of lading basis to BPS or through the nearest DTI-RO/PO. hh A surety bond shall be posted on a per application basis equivalent to 10% of the declared value of imported cement in Philippine peso.

Source: Department of Trade and Industry (DTI)

To further ensure the safety of future infrastructure projects, the DTI also wants to eliminate the presence of “fly-by- night” importers in the cement industry.

“(The Duterte administration is) trying to avoid sub- standard, especially with the frequency of earthquakes so we want to ensure that steel and cement are of right standards to assure safety of our fellow Filipinos.”

Bill of Lading basis, and is subject to existing ICC procedures” to achieve the highest standards of product safety on steel and (see table on Application for PS license and ICC certificate). cement imports – something that is crucial in the country’s pursuit The DTI will grant an exemption for cement importations of the “golden age of infrastructure” during President Rodrigo of local manufacturers operating an Integrated Cement Plant/s Duterte’s term. “(The Duterte administration is) trying to institute (ICP). However, foreign-based manufacturers must be accredited more measures to ensure quality standards. We’re trying to avoid with PS License and must also carry the similar brand shown in sub-standard, especially with the frequency of earthquakes so local PS license of the importer-manufacturer. The DAO added we want to ensure that steel and cement are of right standards that the “importations by ICP shall apply for exemption on a to assure safety of our fellow Filipinos,” Sec. Lopez said. per shipment per Bill of Lading basis and shall be subject to random sampling at the point of sale and independent testing.” The DAOs are set to strengthen the existing import guidelines

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Duterte admin targets to boost FDI inflow to the strong macroeconomic fundamentals of the country despite global political events. The influx of investors were mainly from The Duterte administration intends to make the Philippines Japan, Hongkong, Singapore, U.S. and Taiwan, and they mostly one of the leading FDI destinations in the Southeast Asian invested in areas of finance and insurance; arts, entertainment region through infrastructure development, investment and recreation; manufacturing; real estate; and construction. reforms, and new trade agreements. However, according to a study published by the Philippine Institute for Development Studies (PIDS), the country’s FDI Data from the ASEAN Foreign Direct Investment (FDI) net inflows continues to lag behind its neighboring Southeast Statistic Database showed that the Philippine FDI net inflow in Asian countries because of “lengthy procedures, slow 2015 amounted to $5.72 billion, placing only 6th out of the 10 processing and delays, lack of transparency in procedure, member economies. Singapore topped the ranking with $61.28 [and] corruption.” Because of this, the government is taking billion, followed by Indonesia with $16.92 billion (see table on several initiatives to improve ease of doing business in the 2015 ASEAN FDI ranking). The top 3 sources of FDI in the region country. To speed up the processing of permits and licenses, were intra-ASEAN, Japan, and the U.S. (see table on 2015 Top and to cut-out excessive red tape, Senators Ralph Recto, Paolo 10 investors in ASEAN). The ASEAN Investment Report noted Benigno “Bam” Aquino IV, Grace Poe and Miguel Zubiri filed that “higher levels of intraregional investment” were received by Senate Bill (SB) 1311 or Ease of Doing Business Act of 2017, Malaysia, Philippines, Thailand and CLMV (Cambodia, Lao PDR, which “aims to create a business-conducive environment in Malaysia and Viet Nam). Majority of the inflows in the region were the country by reducing the requirements and steps to start and invested in financial and insurance activities; manufacturing; and operate a business as well as eliminate redundant regulations.” wholesale and retail trade and repair of motor vehicles and cycles. Department of Trade and Industry (DTI) Secretary Ramon Based on the data from the Bangko Sentral ng Pilipinas (BSP) Lopez believes that the country could become one of the top FDI or central bank, the country reached a substantially higher FDI net destinations in the region. “(We can become) one of the best, inflow of $7.93 billion in 2016, approximately 40% up from 2015, maybe 3 to 5 in the region in 3 to 5 years,” Sec. Lopez claimed. surpassing their earlier forecast of $6.7 billion. This was attributed BSP Governor Amando Tetangco supports Sec. Lopez’s vision by

2015 asean fdi ranking

FDI Rank Country (in billion dollars)

1 Singapore 61.28

2 Indonesia 16.92

3 Viet Nam 11.80

4 Malaysia 11.29

5 Thailand 8.03

6 Philippines 5.72

7 Myanmar 2.82

8 Cambodia 1.70

9 Lao People's Democratic Republic (PDR) 1.08

10 Brunei Darussalam 0.17 Source: ASEAN FDI Statistic Database Note: Data is compiled from submission of ASEAN Central Banks and National Statistical Offices through the ASEAN Working Group on International Investment Statistics (WGIIS)

With the establishment of the ASEAN Economic Community, the region became a conducive environment for investment– something the Philippines should take advantage of.

In 2016, the Philippines reached a substantially higher FDI inflow of $7.93 billion, approximately 40% up from 2015.

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2015 TOP 10 INVESTORS IN ASEAN FDI Inflow Country )in billion dollars( Intra-ASEAN 22.15

Japan 17.40

United States 12.19

China 8.16

Netherlands 7.91

United Kingdon 6.70

Republic of Korea 5.68

Australia 5.19

Denmark 2.69

New Zealand 2.24

Source: ASEAN FDI Statistic Database Note: Data is compiled from submission of ASEAN Central Banks and National Statistical Offices through the ASEAN Working Group on International Investment Statistics (WGIIS)

The government is taking several initiatives to speed up the processing of permits and licenses, and to cut-out excessive red tape.

Sec. Lopez said that the country’s “managerial and skilled manpower resources, strong consumer base, demographic dividend, and growth momentum” would enhance the country’s investment destination potential.

Pres. Duterte has been attending international forums and state visits to expand the country’s market access by assuring trade and investment agreements.

raising the FDI target to $8 billion this year. “The strong investment figures will likely be sustained this year as the economy remains upbeat,” Gov. Tetangco said, noting that the manufacturing sector is recovering along with the services sector. Sec. Lopez added that the country’s “managerial and skilled manpower resources, strong consumer base, demographic dividend, and growth momentum” would enhance the country’s investment destination potential. For his part, President Rodrigo Duterte has been attending international forums and state visits to expand the country’s market access by assuring trade and investment agreements. As a result, the government has recently bagged investment opportunities from Russia, China, Japan, Middle East, and neighboring Southeast Asian countries.

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PH tourism competitiveness drops insight into the strengths and areas for development of each country to enhance its industry competitiveness.” According to the World Economic Forum (WEF) Travel The sub-indexes that brought down the country’s tourism & Tourism Competitiveness Report 2017, the Philippines competitiveness were: dropped 5 notches to 79th spot out of 136 countries in 2016, 1. Safety and security (126th) due to police services, crime from 74th out of 141 countries in 2015. and violence, and terrorism and homicide; 2. Environmental sustainability (118th) caused by Based on the Travel & Tourism Competitiveness Report substandard environmental policies that undermines 2017, Spain topped this year. It was followed by France natural resources which is the main asset for attracting (2nd), Germany (3rd), Japan (4th), and United Kingdom tourists in the country; and (5th). The U.S. (6th), Australia (7th), Italy (8th), Canada 3. Ground and port infrastructure (107th) in which, (9th), and Switzerland (10th) completed the top 10. The efficiency is the main concern. Philippines trailed 3rd to the last among the 9 Southeast Asian The Philippines, however, was commended on 2 sub-indexes: countries in the report including Malaysia (26th) and Thailand price competitiveness (22nd) and natural resources (37th). (34th); ahead only of Laos (94th) and Cambodia (101st). The price competitiveness sub-index is composed of ticket According to the report, it measured the Travel & taxes and airport charges, hotel price index, purchasing power Tourism Competitiveness Index (TTCI) of the 136 countries parity, and fuel price levels. The natural resources sub-index, using 4 broad factors of competitiveness (see figure on on the other hand, comprised of the number of world heritage Travel & Tourism Competitiveness Index). These factors natural sites, total known species, total protected areas, natural were further divided into sub-indexes to “provide unique tourism digital demand, and attractiveness of natural assets. The Philippines ranked 79th out of 136 countries in World Economic Forum’s (WEF) Travel & Tourism Competitiveness Report 2017.

Source: The Travel & Tourism Competitiveness Report 2017, World Economic Forum (WEF)

Although the Philippines’ travel and tourism potential remains high, there are

several areas where policy interventions could help to regain competitiveness.

Philippine ANALYST BUSINESS April 2017

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Source: The Travel & Tourism Competitiveness Report 2017, World Economic Forum (WEF)

The report noted that the restrictive visa policy and reduction “While the Phillennials feel good about the country and their

of the government budget dedicated to the development of own prospects for success, this sentiment is tempered by the reality the travel and tourism sector may not have its full effect yet, surrounding them,” Deloitte Philippines CEO and managing but it may reduce tourism activity in the future. It also added partner Greg Navarro said. This generational cohort, however, are that “although the (country’s) T&T (travel and tourism) not just sitting back and letting their concerns overwhelm them,

potential remains high, there are several areas where Mr. Navarro noted. They get themselves involved on the streets, policy interventions could help to regain competitiveness.” as well as through social media – they make their voices heard. WEF community head of the aviation, travel and A possible factor that might have boosted their optimism is tourism industries Tiffany Misrahi said that “to reach their their belief in the ability of government institutions to address

potential, the majority of countries still have more to do, from their worries. Hence, more than 9 out of 10 Phillennials believe enhancing security, promoting their cultural heritage building that the government can resolve these points of concern, and that it their infrastructure, and creating stronger visa policies.” has already made a positive impact in addressing those problems. In terms of businesses, 94% of them also

think that businesses have a positive impact on the wider society, compared to the global average of 76%. ‘Phillennials,’ among most optimistic globally The survey also included how the millennials perceive their According to the 2017 Deloitte Millennial Survey, the business and political leaders. Nearly 8 out of 10 (78%) Phillennials Filipino millennials or “Phillennials” are among the most agree that business and political leaders must be able to provide optimistic in the world. opinions passionately, and only 66% think that these leaders must only use “plain, straight-talking language” in providing opinions. The survey showed that 89% of Phillennials (Filipinos However, there is a disconnection in their views to leaders who take “controversial or divisive positions.” Around 55% of them are born after 1982, have a college or university degree, are employed full-time, and work at predominantly large, more favorable to political leaders having such behavior, while only private-sector organizations) expect the overall economic 47% think that such attitude is also considerable to business leaders. situation in the Philippines to improve in the next 12 months. “This could be the result of media being saturated with This is significantly higher than the global average of6 45%. coverage of these shoot-from-the-hip leaders, or it could be that Meanwhile, 84% of them expect that social and political millennials have always just preferred passionate, straightforward conditions in the country will improve in the next 12 months. leaders,” Mr. Navarro explained. “Whatever the case may be, Globally, only 36% of millennials shared such sentiment. there is no denying that the management style that works best for Included in the survey are the issues that are of greatest this generational cohort is very different from what Baby Boomers concern to the millennials. Terrorism (40%); crime and personal and even Gen-Xers grew up with,” he added, noting that this must safety (35%); healthcare or disease prevention (29%); climate be remembered by business leaders to attract and retain talent. change and natural disasters (27%); and unemployment (24%) emerged as the Phillennials’ points of concern.

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Business leaders must look into the aforementioned data to keep millennial employees engaged in their jobs.

Some 89% of Phillennials expect the overall economic situation in the Philippines to improve in the next 12 months, and 84% of them expect that social and political conditions in the country will improve in the next 12 months.

The Phillennials’ sense of empowerment and accountability Mr. Navarro said that “with millennials worrying about within the context of their workplace is also gauged in the conflicts here and abroad, it is no surprise that they are survey. It showed that 72% of them feel that they are able to looking for stability and certainty, especially in areas where contribute to good causes at work. Some of them (34%) also they have control, such as their careers.” He also stated plan to stay for more than 5 years in their current job. Amid that business leaders must look into the aforementioned the rise of freelance work, or the “gig economy,” only 36% of to help keep millennial employees engaged in their jobs. this generational cohort are interested in this type of work. The The 2017 Deloitte Millenial Survey was conducted in 4Q2016. remainder would rather want to be employed on a full-time basis. The survey respondents were 8,000 millennials from 30 countries. Of which, 300 are Phillennials, equally split based on gender.

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MINING, OIL, & GAS Based on the AO, the DENR would prohibit the use of open-pit mining for the extraction of copper, gold, silver and/ or complex ores. As a result, this would directly affect 3 major Lopez bans prospective open-pit mining mine operations (see below), which were already approved by the government, but have yet to begin their operation. The Department of Energy and Natural Resources (DENR) 1. The $5.8-billion Tampakan Copper Gold Project of released Administrative Order (AO) 2017-10, which orders Sagittarius Mines Inc.; the ban on prospective open-pit mining in the Philippines. 2. The $1.2-billion Silangan Mine Project of Mindanao Mining Company Corporated; and DENR Secretary Gina Lopez said she imposed the ban to 3. The $2-billion King-king Copper-Gold Project of St. maximize her stint at the department before the Commission Augustine Gold & Copper Ltd. on Appointments (CA) casts their judgment. The ban, which is set to take effect immediately despite uncertainty over her The Chamber of Mines of the Philippines (COMP) appointment, puts the mining industry in a tougher situation, expressed their dissatisfaction, describing Sec. Lopez’s move following Sec. Lopez’s permanent closure of 23 operating mines as “absurd” because the law allows open pit-mining. “Quite and cancellation of 75 mining contracts for underdeveloped mines. the contrary, the Constitution even gives the state the duty to According to Sec. Lopez, the history of mining in the country explore, develop and utilize our mineral resources. With this shows that most, if not all, open-pit mines have caused numerous open-pit ban, she is essentially banning the mining of shallow negative effects to the host communities, and have resulted in ore deposits that can only be extracted using that method,” environmental degradation – making it a financial liability to COMP Legal and Policy vice president Ronald Recidoro the government. She noted that majority of the mining disasters argued. Mr. Recidoro also said that the AO was done without recorded were due to tailing spills associated with open-pit mining. any consultation with the industry stakeholders. In relation to The decision to ban prospective open-pit mines was COMP’s stand, National Institute for Geological Sciences of clearly Sec. Lopez’s prerogative, meaning she does not need the University of the Philippines (UP) director Carlo Arcilla to amend the existing Philippine Mining Act of 1995, but pointed out that the biggest problem with the AO is that it could instead do it as a matter of policy. “Open-pit mining is supersedes nationally enacted law, which should not be the case. too much of a risk. I have the mandate to evaluate and I have the duty to put a stop to it,” she said. Given this, she strongly advised mining firms who intend to start open-pit mining to “go to another country” since the DENR will soon issue show cause orders to projects that are under the exploration stage, and those under application will no longer be approved.

The move to ban prospective open-pit mining would likely result in a loss of over $8 billion worth of investments.

Philippine ANALYST BUSINESS April 2017 55 BUSINESS

The move to ban prospective open-pit mining would likely result in a loss of over $8 billion worth of investments.

Backgrounder on open-pit mining

Open-pit mining is characterized by the extraction of metallic ores from a surface excavation resembling roughly an inverted cone with benches along its wall. This method has been employed in the Philippine mining industry mainly for the extraction and disposition of copper, gold, silver and complex ores.

Meanwhile, mining experts put forward that banning open-pit that open-pit mining is an acceptable form of mining, and is one mining would be detrimental since it could affect the country’s of the most economical methods done in most countries of the energy supply nationwide. UP mines expert Gabriel Pamintuan world. “To argue that responsible open-pit mining cannot be done Jr. presented Semirara Mining and Power Corp.’s (SMPC) open- in the (country) is to show not only a low regard for the abilities pit mine as an example. “Shutting down Semirara would mean of our homegrown mining engineers (and geologists and the a power crisis, given that coal contributes an estimated 47% like), but it also shows an unwillingness to be rid of preconceived of Luzon’s power requirements. Calaca, which feeds on 100% notions born (to be kind) of sheer ignorance of both the science Semirara open-pit coal, even if it only contributes 7% to the peak and the art of responsible mining,” Nickel Asia Corporation vice power demand, is a base load plant. Any outage by base load president for corporate communications JB Baylon commented. power plants can trigger cascading brownouts that could extend to a Luzon-wide outage,” Mr. Pamintuan explained. He even assured

Philippine ANALYST BUSINESS April 2017 56 BUSINESS

I.T. UPDATE According to Contact Center Association of the Philippines (CCAP) chairman of the board Benedict Hernandez, impact sourcing brings contact center, back office work, and other DICT to boost countryside IT jobs offshoring work to qualified talents in rural or provincial areas. This strategy benefits socio-economically disadvantage The Department of Information and Communications individuals by giving them access to employment, which the Technology (DICT) will boost information technology IT-BPM firms can explore and tap. “It gives businessmen (IT) employment opportunities in the countryside by in the countryside the unique opportunity to exercise their implementing an “impact sourcing” strategy. entrepreneurial prowess by establishing home-grown IT- BPM firms right in their own backyard. It also gives potential The opportunities offered by the information technology- workers the ability to be employed without having to leave business process management (IT-BPM) are clustered in the their families and their hometown,” Mr. Hernandez explained. Philippine top cities, thereby resulting in a growing disparity Impact sourcing, although considered a relatively young between these cities and untapped rural areas. Taking this into practice, has been gaining support from the IT-BPM industry. consideration, the DICT, through its flagship initiative Rural The CCAP said that the industry has been using this practice as Impact Sourcing Program, intends to address the digital divide by it is more cost effective, and is a sustainable business model for providing jobs and other related opportunities in socio-economically IT firms in the country. CCAP president Jojo Uligal stated that it disadvantaged areas – mostly rural areas where high population helps create a stable and motivated workforce. Numerous research and low employment due to lack of investors are both present. had also shown that workers who are in impact sourcing possess DICT Secretary Rodolfo Salalima pointed out that one lower attrition rates, as opposed to traditional IT-BPM workers. of the best ways to develop the countryside is to bring in However, there are still barriers that could hamper the growth technology, which could provide ICT jobs – directly or of impact sourcing – internet connectivity in the countryside indirectly. To accelerate impact sourcing under the Duterte and bureaucratic procedures in government, among others. In administration, the DICT is planning to replicate the thriving the 4Q2016 report published by Akamai, a U.S.-based global IT-BPM industry in Davao City. “(Just by) looking at content delivery network, it was reported that the country has the Davao City, a lot can be learned for rural areas to thrive in slowest average connection speed in Asia-Pacific at 4.5 megabits ICT,” DICT Undersecretary Monchito Ibrahim commented. per second (Mbps). Meanwhile, Sec. Salalima emphasized the

Impact sourcing brings opportunities to rural areas of the country where there is a high population, but low employment due to lack of investors.

The CCAP expressed their full support to DICT in its effort to further develop and grow impact sourcing in the countryside.

Impact sourcing workers tend to be highly motivated and loyal to the company that provided them with skills training.

Philippine ANALYST BUSINESS April 2017 57 BUSINESS

Affordable and easy access to internet remains an important factor towards inclusive growth.

crucial role of local government units (LGUs) in improving communications in the country, particularly in the rural areas. He explained that telecommunication firms are complaining of the numerous requirements of the LGUs in the construction of additional cell sites and the approval time of permits. “Accelerating infrastructure, expediting regulatory processes in the local government units, developing efficient and fast internet, and ensuring available talent pool are some of the things to consider to realize the agency’s end goal,” he added. If these barriers are not addressed with urgency, impact sourcing and generation of online job opportunities would be more difficult to accomplish.

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LIST OF BOI-REGISTERED PROJECTS - MARCH 2017 P roject C ost E quit y Industry Activity (In PHP Million) Local/Foreign Producer of virgin coconut oil, coconut flour and tender green coconuts, inegrated Lionheart GPPAC Farms Corp. 320.9 99.98% Danish with coconut plantation in Rizal, Palawan

CHEMICAL AND CHEMICAL PRODUCTS

JG Summit Petrochemical Producer of polypropylene resins in Batangas City 2,828.2 100% Filipino Corporation JG Summit Petrochemical Producer of bimodal polyethelene in Batangas City 10,018.4 100% Filipino Corporation

ELECTRICITY, WATER, AND GAS

Isabel La Suerte Rice Mill Corporation Renewable energy developer of 5MW La Suerte Biomass Power Project in Isabela 410.3 100% Filipino Renewable energy developer of 180kW Bulua Solar Power Project in Bulua, Cagayan Solar Pacific Citysun Corporation 15.6 100% Filipino de Oro City Renewable energy developer of 364kW Boracay Solar Power Project in Brgy. Solar Pacific Citysun Corporation 29.9 100% Filipino Balabag, Malay, Aklan Renewable energy developer of 480W Bacalso Solar Power Project in Brgy. Bacalso, Solar Pacific Citysun Corporation 52.3 100% Filipino Cebu City

Renewable energy developer of 180kW Iponan Solar Power Project in Brgy. Iponan, Solar Pacific Citysun Corporation 18.7 100% Filipino Cagay de Oro City

Renewable energy developer of 240KW Dumaguete Solar Power Project in Solar Pacific Citysun Corporation 21.8 100% Filipino Dumaguete, Negros Oriental

Renewable energy developer of 180kW Consolacion Solar Power Project in Solar Pacific Citysun Corporation 16.6 100% Filipino Consolacion Cebu Renewable energy developer of 480W Bacalso Solar Power Project in Brgy. Bacalso, Solar Pacific Citysun Corporation 52.3 100% Filipino Cebu City Renewable energy developer of 840KW Tagum Solar Power Project in Tagum, Davao Solar Pacific Citysun Corporation 91.5 100% Filipino del Norte Solar Pacific Citysun Corporation Renewable energy developer of 240KW Kalibo Solar Power Project in Kalibo, Aklan 17.9 100% Filipino Renewable energy developer of 480kW Kabankalan Solar Power Project in Solar Pacific Citysun Corporation 48.8 100% Filipino Kabankalan, Negros Occidental FOOD AND BEVERAGES MANUFACTURES Producer of whole/dressed chicken and further processed (marinated, deboned San Miguel Foods, Inc. 1,087.4 100% Filipino chicken parts) in Quezon

Cargill Joy Poultry Meats Productions, 3 0 % F i l i p i n o Producer of marinated cut chicken in Sto. Tomas, Batangas 2,080.5 Inc. 70% American

HOTEL, RESTAURANT, AND LEISURE SERVICES

3L Properties & Alpha Development Operator of tourism accommodation facility (resort) 171.7 100% Filipino Corporation (Goldberry Lite Hotel)

MISCELLANEOUS MANUFACTURES

6 0 % F i l i p i n o Holdsun Philippines, Inc. Producer of footwear in Rizal 35.2 40% Chinese PROC OFFSHORING AND OUTSOURCING 99% Definite Gaming PTE LTD Philippine, Support services to game development 2.8 S i n g a p o r e a n Inc. 1% Filipino Milenia Data Systems Inc. BPO - Medical Transcription in Legaspi Village, Makati City 20.1 100% American

PETROLEUM PRODUCTS 3 2 % F i l i p i n o Pilipinas Shell Petroleum Corporation Production of bitumen (penetration grade 60/70 and 80/100) 653.0 68% Dutch

REAL ESTATE AND PROPERTY DEVELOPMENT Developer of economic and low-cost housing project (Monterra Verde Batch C - Borland Development Corporation 192.7 100% Filipino Horizontal) in Tanza Cavite Citihomes Builder and Development, Developer of economic and low-cost housing project (Natania Homes Phase 1B and 507.1 100% Filipino Inc. Phase 2-Horizontal) in Gen. Trias, Cavite Citihomes Builder and Development, Developer of economic and low-cost housing project (Amaris Homes Dasma Phase 1 - 300.6 100% Filipino Inc. Horizontal) in Dasmarinas, Cavite Developer of economic and low-cost housing project (The Grove at Camella Communities Batangas, Inc. 85.6 100% Filipino Batangas City - Horizontal) in Alangilan, Batangas City Developer of economic and low-cost housing project (Camella Ozamis - Horizontal) Communities Cagayan, Inc. 212.2 100% Filipino in Labo, Ozamis City

Philippine ANALYST BUSINESS April 2017 59 BUSINESS

Developer of economic and low-cost housing project (Camella Davao - Horizontal) in Communities Davao, Inc. 1,047.3 100% Filipino Purok 7, Brgy. Communal, Buhangin District, Davao City

Developer of economic and low-cost housing project (Lessandra Legazpi Subd. - Communities Naga, Inc. 78.4 100% Filipino Horizontal) in Brgy. Puro, Legaspi City

Developer of economic and low-cost housing project (Montecarlo Residences - GRH Land, Inc. 311.7 100% Filipino Vertical) in San Antonio, Paranaque City Developer of economic and low-cost housing project (Villa Annapolis Subdivision Hausplus Ventures, Inc. 111.9 100% Filipino Phase 3 - horizontal) in San Jose del Monte City, Bulacan Developer of economic and low-cost housing project (Camella Altea - Horizontal) in Household Development Corporation 279.0 100% Filipino Bacoor, Cavite Developer of economic and low-cost housing project (Camella Silang Phase 1 - Household Development Corporation 184.0 100% Filipino Horizontal) in Brgy. Buho, (Maitim) and Malabag, Silang, Cavite Developer of economic and low-cost housing project (Lessandra Bacoor 8 - Household Development Corporation 112.3 100% Filipino Horizontal) in Bacoor, Cavite Developer of economic and low-coust housing project (Lessandra Bacoor Household Development Corporation 176.4 100% Filipino 9-horizontal) in Salinas, Bacoor, Cavite P.A. Alvarez Properties and 9 5 % F i l i p i n o Developer of economic and low-cost housing project (St. Joseph Homes Calamba) 186.0 Development Corporation 5% Canadian

P.A. Alvarez Properties and Developer of economic and low-cost housing project (Nuvista Homes Lipa) in Lipa 9 5 % F i l i p i n o 138.9 Development Corporation City 5% Canadian

P.A. Alvarez Properties and Developer of economic and low-cost housing project (Nuvista Lipa - La Aldea) in Lipa 9 5 % F i l i p i n o 375.0 Development Corporation City 5% Canadian Developer of economic and low-cost housing project (Pacifica Homes Navarro - Pacific Pabahay Homes, Inc. 322.8 100% Filipino horizontal) in Gen. Trias, Cavite Developer of economic and low-cost housing project (Centro Tower-Vertical) in Wee Community Developers, Inc. 364.5 100% Filipino Cubao, Quezon City Welmanville Development Developer of economic and low-cost housing project (Welmanville Binan Subdivision 260.8 100% Filipino Corporation - Horizontal) in Binan, Laguna

STORAGE AND WAREHOUSING

Glacier South Refrigeration Services Operator of cold storage and blast freezing facilities in Paranaque City 650.0 100% Filipino Corporation

TOTAL 23,890.9

Philippine ANALYST BUSINESS April 2017 60 BUSINESS

PEZA APPROVED PROJECTS -4th Quarter 2016 Equity INDUSTRY ACTIVITY ZONE Local/Foreign APPAREL AND TEXTILE MANUFACTURES

Golden Gate Business Park-Cavite JISOO R&D CORP. Manufacture of garments and wearing apparel 100% - Korean Export Processing Zone

ELECTRICITY, WATER, AND GAS

FIRST GEN ENERGY SOLUTIONS INC. Retail electricity supplier (RES) 100% - Filipino Cebu Light Industrial Park - SEZ FUCHIGAMI CONSTRUCTION & BORING Provides water services 100% - Filipino Baguio City Economic Zone PRORIETARY Engage in the construction, installation and operation of a Calamba Premiere International TAIYO NIPPON SANSO PHILIPPINES, INC. 99.99% - Japanese nitrogen supply facility Park - SEZ ELECTRONICS

A.C.E. MANNIX ELECTRONICS CO., INC. Repair, installation and maintenance work/services 9 9 . 9 6 % - K o r e a n Cavite Economic Zone Increase in production capacity of its manufacture of Light Industry & Science Park CAC PHILIPPINES, INC. 99% - Japanese wheel speed sensors II - SEZ CONTINENTAL TEMIC ELECTRONICS Light Industry & Science Park Manufacture and export of Acceleration Satellite (gSat) 100% - German (PHILIPPINES), INC. II - SEZ EMS COMPONENTS ASSEMBLY, INC. Engage in production of cable wire harness 100% - Filipino Laguna Technopark - SEZ Light Industry & Science Park IONICS EMS, INC. Manufacture of T-Marc 340 AC 9 8 % - F i l i p i n o I - SEZ Assembly/sub-assembly of energy saving lighting products KASAI ADVANCED MFG. PHILIPPINES INC. 99.99% - Japanese First Philippine Industrial Park - SEZ and devices 8 2 % - F i l i p i n o MEC ELECTRONICS PHILIPPINES Manufacture of plastic and metal for electronics and 1 6 % - T a i w a n e s e Cavite Economic Zone CORPORATION electrical products 2% - British Light Industry & Science Park NXP SEMICONDUCTORS CABUYAO, INC. Engage in the production of Loss-Free Package (LFPAK) 99.99% - Dutch I - SEZ Assembly and process of parts and components of speakers P S T P INC. 99.75% - Korean Gateway Business Park - SEZ and coil winding for speakers Calamba Premiere International R12 EMS PHILS., INC. Manufacture of balanced armature (BA) speaker 99.99% - Korean Park - SEZ Light Industry & Science Park SKYWARE TECHNOLOGIES ASIA INC. Manufacture telecommunication products 99.91% - Dutch I - SEZ FOOD AND BEVERAGE MANUFACTURES Sarangani Economic Development DOLE PHILIPPINES, INC. Production of fruit dippers 99.88% - American Zone - SEZ SRC Allah Valley Economic DOLE PHILIPPINES, INC. Production of dried fruit 99.88% - American Development Zone IT AND IT-ENABLED SERVICES

CAMPAIGNTRACK INC. Engage in graphic and web-based services 99% - Australian 6780 Ayala Avenue Bldg. MAXIM INTEGRATED PRODUCTS Data encoding, transcribing and related services 100% - Irish Gateway Business Park - SEZ INTERNATIONAL SALES LIMITED 8 5 % - J a p a n e s e PHILIPPINE EDS TECHNO-SERVICE, INC. Engineering, architectural and other design services Iloilo Technohub 15% - Filipino MACHINERY AND EQUIPMENT

KARUMONA NAGANO SEIKO, INC. Manufacture of worm shaft 99.99% - Japanese People's Technology Complex - SEZ Manufacture of rock cutting equipment and attachments ROCKBLOCK AUSTRALIA, INC. for excavators such as, buckets, grabs, shears and 99.88% - Italian Mactan Economic Zone pulverizers VJF TECHNO SOLUTIONS CORP. Engage in machining/manufacture of jigs and fixtures 100% - Filipino Carmelray Industrial Park II - SEZ

METAL INDUSTRIES Engage in assembly and sub-assembly of different types of KVK PHILIPPINES, INC. 99.98% - Japanese First Philippine Industrial Park - SEZ faucets, pipe fittings and related parts accessories

Manufacture of mold die, jigs & fixtures, mold parts & 8 0 % - K o r e a n Calamba Premiere International SEUNG JIN PRECISION PHILIPPINES INC. accessories 20% - Japanese Park - SEZ

Contract manufacturing using CNC Machining, CNC Laser T&S GLOBAL SOLUTIONS, INC.. Cutting, fabrication and assembly of metal, plastic wood, 99.99% - Japanese First Philippine Industrial Park - SEZ and mechanical components

Philippine ANALYST BUSINESS April 2017 61 BUSINESS

MISCELLANEOUS MANUFACTURES

EVERBRILLIANT MANUFACTURING 99.996% - British Light Industry & Science Park Manufacture of polyurethane/polyester cleanroom gloves COMPANY INC. Virgin Islander I - SEZ Manufacture and export of all kinds of dental and ASO INTERNATIONAL MANILA, INC. 99.997% - Japanese Cavite Economic Zone orthodontics products, devices and supplies Assembly/blister acking, packaging and sterilization of TERUMO (PHILIPPINES) CORPORATION 100% - Japanese Laguna Technopark - SEZ terufusion air needle LINEARWORKS CORPORATION Tape and reel services 99.99% - Japanese People's Technology Complex - SEZ

OTHER BUSINESS SERVICES Engage in laser cutting services of all types of metal, PHILIPPINE TONAN CORPORATION 99.99% - Japanese Mactan Economic Zone wood, and plastics Engage in laser cutting services of all types of metal, PHILIPPINE TONAN CORPORATION 99.99% - Japanese First Cavite Industrial Estate - SEZ wood, and plastics Site Hosting services to the project of APEX 5678 ROCKWELL, INC. 99.99% - Hong Kong The Rockwell Business Center PriceWaterhouseCoopers Service Delivery Centre (Manila) OFFSHORING AND OUTSOURCING

ACCENTURE, INC. Software development services 99.99% - Dutch Filinvest Cebu Cyberzone Client Management Solution (CRM) and the emerging ACCENTURE, INC. Software-as-a-Service (SaaS) and cloud computing 99.99% - Dutch Philamlife I.T. Tower technology AFNI PHILIPPINES, INC. Call center operations 9 9 . 9 9 % - A m e r i c a n One Felicity Center

ALORICA PHILIPPINES, INC. Call center operations 9 9 . 9 9 % - A m e r i c a n Alphaland Southgate Towers Business process outsourcing (BPO) and call center ALTISOURCE BUSINESS SOLUTIONS, INC. 9 9 . 9 9 % - D u t c h SM iCITY 2 operations ARTESYN EMBEDDED TECHNOLOGIES Software development services 99.99% - Hong Kong Eastwood City Cyberpark PHILIPPINES INC. Software package and mobile application design AUDIOWAV MEDIA INC. Laguna Technopark - SEZ development BPO GLOBAL RESOURCES, INC. Business process outsourcing (BPO) services 9 9 . 9 2 % - B r i t i s h Trafalgar Plaza

CBE COMPANIES PH, INC. Shared service centre operations 99% - Australian W Fifth Avenue

CEBU AMALGAMATED SOFTWARE Software application development, technical support and 100% - Filipino Innove IT Plaza OUTSOURCING, INC. maintenance, and quality assurance and testing work

CEVA LOGISTICS HOLDINGS B.V. - Engage in IT Logistics support including data processing 100% - Dutch 2251 IT Hub PHILIPPINE BRANCH and management IT-related services such as language learning/translation, CHINA ONLINE INNOVATIONS INC. 99.99% - Caymanian The Discovery Centre back - office support services CONVERGYS PHILIPPINES INC. Call center operations 9 7 . 2 0 % - D u t c h SM City Clark IT Park 9 6 % - A u s t r a l i a n EMAPTA VERSATILE SERVICES INC. Business Process Outsourcing services using e-commerce 3 % - F i l i p i n o Orient Square I.T. Bldg. 1% - Japanese ENABLESME INC. Call center operations 99.95% - Australian Polar Center EDSA

ETRADING SOFTWARE LIMITED Software development and knowledge process outsourcing 99.99% - British Tower 6789 (PHILIPPINES) INC. services Business process outsourcing (BPO) and call center EZY SERVICE CENTRE CORPORATION 100% - Singaporean Robinsons-Equitable Tower operations IT information security services, in particular, Anti-Virus G DATA AV LAB INC. 99.99% - German Eastwood City Cyberpark (AV) services to G Data Software AG GENESYS TELECOMMUNICATIONS Call center operations 100% - Caymanian Cyber Park Building One LABORATORIES LTD. GENPACT SERVICES LLC Call center operations 100% - American Starmall Bataan (BPO)

IBM BUSINESS SERVICES, INC. Business process outsourcing (BPO) services 99% - Filipino Eastwood City Cyberpark

IGT-INTERGLOBE TECHNOLOGIES 5 1 % - I n d i a n Call center operations ATC BPO 1 PHILIPPINES INC. 49% - Singaporean ING BUSINESS SHARED SERVICES B.V. Business process outsourcing (BPO) services 99.99% - Dutch W Fifth Avenue BRANCH OFFICE MERLIN INFORMATION SYSTEMS Call center operations 99.99% - British McKinley Hill Cyberpark P H I L I P P I N E S I N C . Infrastructure and cloud computing, business process NTT DATA SERVICES PHILIPPINES INC. 99.99% - Dutch Eastwood City Cyberpark outsourcing and application services 7 0 % - A m e r i c a n OAMPI INC. Call center operations 6780 Ayala Avenue Bldg. 30% - Filipino

Philippine ANALYST BUSINESS April 2017 62 BUSINESS

PCCW SOLUTIONS PHILIPPINES, INC. Software development services 99.99% - Hong Kong UnionBank Plaza

PHASE1 (PHILIPPINES) INC. Programming and software development services 99.7% - Japanese 6788 Ayala Avenue Bldg. REED ELSEVIER SHARED SERVICES Business process outsourcing (BPO) services 99.99% - Dutch Iloilo Business Park (PHILIPPINES) INC. One San Miguel Avenue RIGHTCROWD SOFTWARE, INC. Software development services 99.68% - Australian Condominium RESULTS MANILA, INC. Call center operations 99% - American Fiesta World Mall IT Center

RMH TELESERVICES ASIA PACIFIC, INC. Call center operations 100% - American MJ Corporate Plaza Business process outsourcing (BPO) and call center RMS COLLECT PHILS. INC. 99% - American SM City Clark IT Park operations 9 0 % - B r i t i s h ROCCATECH PHP INC. Software development and website application services Cebu I.T. Park 10% - Filipino Business process outsourcing and software development 9 8 % - J a p a n e s e SAMBAR LAB PH INC. Eastwood City Cyberpark services 2% - Filipino Business process outsourcing (BPO) and call center STELLAR PHILIPPINES, INC. 99.99% - Filipino Araneta Cyber Park operations TELUS INTERNATIONAL PHILIPPINES, Business process outsourcing (BPO) and call center 99.99% - British McKinley West INC. operations

TMJP BPO SERVICES, INC. Business process outsourcing (BPO) services 99.99% - Japanese One Felicity Center VXI GLOBAL HOLDINGS B.V. Call center operations 100% - Dutch Felcris Centrale (PHILIPPINES) VXI GLOBAL HOLDINGS B.V. Call center operations 100% - Dutch Panorama TechnoCenter (PHILIPPINES) WELLS FARGO ENTERPRISE GLOBAL Call center operations 99.99% - Chinese McKinley West SERVICES XEROX BUSINESS SERVICES PHILIPPINES, Business process outsourcing (BPO) and call center 99.82% - Dutch CityNet1 INC. operations XEROX BUSINESS SERVICES PHILIPPINES, Business process outsourcing (BPO) and call center 99.82% - Dutch CBP-IT Park INC. operations XEROX BUSINESS SERVICES PHILIPPINES, Business process outsourcing (BPO) and call center Cebu I.T. Tower INC. operations PAPER AND PAPER PRODUCTS

Increase in production capacity of its manufacture/ 9 9 % - K o r e a n SSCP MLA., INC. Cavite Economic Zone assembly of danpla box and pipe rack 1% - Filipino

REAL ESTATE ANFD PROPERTY DEVELOPMENT

CENTEREACH RESOURCES, INC. Additional 12-bay warehouse building 100% - Filipino Lima Technology Center - SEZ A proposed 18-storey office building to be known as Calma CLIPP MACHENSON HOLDINGS, INC. 100% - Filipino Lakeside Evozone Institute of Arts and Architecture Cavite Technopark-Special DW INDUSTRIAL PARK INC. Construction of 5 bay factory/warehouse buildings 100% - Filipino Economic Zone DW PREMIER INDUSTRIAL COMPOUND Construction of 2 units, 3-bay factory/warehouse buildings 100% - Filipino Alviera Industrial Park INC. ECOZONE PROPERTIES, INC. Registration of its additional warehouse buildings 100% - Filipino First Industrial Township - SEZ

EIGHTEEN88 FACILITIES INC. Construction of 12 factory/warehouse buildings 100% - Filipino Carmelray Industrial Park I - SEZ Light Industry & Science Park IV EMS LAND SERVICES INC. Construction of 2 factory/warehouse buildings 100% - Filipino - SEZ EZP DEVELOPMENT, INC. Additional 6 warehouse buildings 100% - Filipino Alviera Industrial Park HOUSE TECHNOLOGY INDUSTRIES PTE. Subleasing a 2,712 sq.m. building space to Cemedine 100% - Singaporean Cavite Economic Zone II LTD. Philippines Corporation ILO LAND, INC. Construction and managing a 4-unit warehouse facility 100% - Filipino Lima Technology Center - SEZ

J.Y. AND SONS REALTY CO., INC. Maintenance and operation of a warehouse facility 100% - Filipino First Cavite Industrial Estate - SEZ Leasing out a 1,121.25 sq.m. area of its building space to LOOKWELL PHILIPPINES CORPORATION 100% - Japanese Mactan Economic Zone All Win Mactan, Inc. MAPLEHAUS, INC. Construction of a factory/warehouse building 100% - Filipino Suntrust Ecotown Tanza Cavite Technopark-Special ORIENT GOLDCREST REALTY, INC. Construction and managing a 10-unit warehouse building 100% - Filipino Economic Zone SUNPINO CAVITE CORPORATION. Additional plant facilities 100% - Japanese Cavite Economic Zone Leasing out a 567.9 sq.m. building space to Yasaka TOA KIKO CEBU CORPORATION 99.93% - Japanese Mactan Economic Zone Philippines International Corporation

Philippine ANALYST BUSINESS April 2017 63 BUSINESS

RECYCLING AND WASTE MANAGEMENT Engage in collection, sorting, disassembly, stripping, COGREENVIRO CORPORATION crushing, grinding, cutting, pressing and packaging of 100% - Filipino First Cavite Industrial Estate - SEZ (Approved as Cogreen Pte. Ltd.) various metal and plastic scrap RUBBER AND PLASTIC PRODUCTS 99.86% - LAGUNA DAI-ICHI, INC. Ramp injection Laguna Technopark - SEZ Singaporean Manufacture and assembly of plastic precision moldings Light Industry & Science Park LEADENCE PHILIPPINES CORPORATION and mechanical parts; and painting and printing of plastic 99.99% - Japanese II - SEZ precision moldings and mechanical parts NANBU PHILIPPINES, INC. Manufacture of PVC resin compound 99.99% - Japanese Cavite Economic Zone Manufacture of housewares such as bowls, plates, cups, P E B A T A N D E M M A N U F A C T U R I N G , I N C . decorative pieces and garden pots, hanging planters and 99% - American Cebu Light Industrial Park - SEZ other accessories, using melamine powder STORAGE AND WAREHOUSING

JCAHERITAGE INTERNATIONAL CORP. Warehousing/logistics support services 100% - Filipino Laguna Technopark - SEZ Importation and use of tape log roll cutting machine and KDTECHNOLOGIES INC. 100% - Filipino Cavite Economic Zone providing tape cutting/slitting services Engage in the supply of Fiberoptronic sensor, Bar code reader, Vision system, Safety light curtain, Measurement KEYENCE PHILIPPINES INC. 99.99% - Japanese Laguna Technopark - SEZ system, PLC, Laser marker, Microscope and other related products Engage in the supply of retail boxes, books, manuals and LINOCRAFT PRINTERS PHILIPPINES INC. 99.99% - Malaysian Carmelray Industrial Park II - SEZ inserts SUMMIT88 MANAGEMENT CONSULTANCY, Engage in importation, storing, transporting and just-in- 100% - Filipino Cavite Economic Zone INC. time delivery of products TOYOTA MOTOR PHILIPPINES LOGISTICS, Warehousing/logistics support services 99.997% - Filipino Greenfield Automotive Park - SEZ INC. VITALO PACKAGING INTERNATIONAL, Provide warehousing, importation, selling of Plastic Sheets 99.99% - Thai Laguna Technopark - SEZ INC.. in non-die-cut (sheet in rolls) WOOD AND CORK PRODUCTS SCAD SERVICES (S) PTE., LTD. (PHIL. Manufacture of wrapping type of flooring 100% - Singaporean Cavite Economic Zone BRANCH)

THEMING AND ANIMATRONICS Engage in designing and decorating themed decorative 9 0 % - G e r m a n Carmelray Industrial Park II - SEZ INDUSTRIES, INC. items 10% - Romanian

Philippine ANALYST BUSINESS April 2017 64 BUSINESS

FOREIGN DIRECT INVESTMENT BUSINESS CLIMATE INDEX Balance of Payments Concept*; JANUARY 2017 LEVEL (US$ million) FDI: BOP CONCEPT YEAR-AGO YEAR-ON-YEAR CURRENT US$ Million LEVEL (% CHANGE) 1200 TOTAL FDI 684.8 605.1 13.2 1000

Equity Capital 47.6 277.4 (82.8) 800 600 Reinvested Earnings 70.9 73.2 (3.1) 400 Debt instruments 566.3 254.4 122.6 200

* The BSP adopted the Balance of Payment, 6th edition (BPM6) compilation framework effective 22 0 March 2013 with the release of the full-year 2012 and revised 2011 BOP statistics. In BPM6, net -200 FDI flows refer to non-residents’ equity capital (i.e., placements less withdrawals) + reinvestment of earnings + debt instruments, net (i.e.,net intercompany borrowings). -400 -600 YEAR- INDUSTRIAL PERFORMANCE DATA YEAR-TO- J'14 M M J S N J'15 M M ON-YEAR (2000=100) JANUARY 2017 (INDEX) DATE GROWTH MOTOR VEHICLE SALES 2016 Volume of Production Index (VoPI) 129.6 10.7 -0.6 MARCH 2017 (2000=100) YEAR-AGO GROWTH RATE CURRENT a. Food 169.7 20.6 18.0 LEVEL (%) b. Beverage 119.7 1.0 -9.7 MOTOR VEHICLE SALES 36,561 27,521 32.8

c. Tobacco 5.7 5.4 -33.2 PASSENGER CAR SALES 1,1853 11,345 4.5 d. Textile 26.5 -22.2 -31.0 COMMERCIAL VEHICLE SALES 24,708 16,170 52.8 e. Footwear and Wearing Apparel 23.2 1.2 -9.4 f. Wood and Wood Products 65.3 19.5 39.5 UNIVERSAL AND COMMERCIAL BANK'S - DECEMBER 2016 g. Furniture & Fixtures 814.9 21.9 19.3 LOANS OUTSTANDING TO THE REAL ESTATE SECTOR (P Bn) h. Basic Metals 169.9 28.2 8.8 % to Total RE % to Total RE DEC-16 DEC-15 i. Iron and Steel 111.7 -2.0 -8.3 loan loan j. Non-ferrous Metals 312.3 79.9 29.7 Residential 313.33 24.6 257.96 24.2 k. Fabricated Metal Products 250.6 -12.1 3.9 Commercial 962.77 75.4 806.17 75.8 l. Machinery Excluding Electrical 56.1 6.0 -8.3 m. Electrical Machinery 97.6 -4.8 -4.8 n. Transport Equipment 172.4 27.8 16.4 o. Other Mfg Industries 108.1 5.1 1.9 p. Paper & Paper Products 66.3 -10.4 -7.4 q. Publishing & Printing 146.6 -20.6 -5.1 r. Leather Products 0.8 20.0 -1.1 s. Rubber Products 290.2 6.8 8.1 t. Chemical Products 142.2 14.5 -15.0 u. Petroleum Products 55.4 47.0 18.8 v. Non-Metallic Mineral Products 164.9 26.3 13.3 w. Glass & Glass Products 320.9 171.7 113.2 x. Cement 198.1 22.7 11.2 y. Misc. Non-Metalic Mineral Products 44.0 0.8 -11.1 VALUE OF PRODUCTION INDEX (VAPI) 180.6 13.6 2.6 )(2000=100 AVERAGE CAPACITY UTILIZATION 83.7 -16.3 83.7

Philippine ANALYST BUSINESS April 2017 65 BUSINESS BUSINESS CLIMATE INDEX STRIKES IN MARCH 2017 LABOR STRIKES (APRIL 2017) One work stoppage was recorded in March. Meanwhile, there were a total of 80 notices of strike/lockouts handled during the period. WORKERS STRIKES DECLARED MAN-DAYS LOST (000) INVOLVED

2017 2016 2017 2016 2017 2016 JAN - - - - 120,348 - FEB 1 - 214 - 18,554 - MAR 1 - 138 - 16,668 -

STRIKES DECLARED APR ------3.5 MAY - 2 - 433 - 82,884

3 JUN - 1 - 217 - 1,519 JUL - 2 - 146 - 14,146 2.5 AUG - 1 - 92 - 844 2 SEP - 2 - 45 - 675 1.5 OCT - 2 - 184 - 11,136

1 NOV - 3 - 134 - 3,578 DEC - 2 - 1,855 - 1,855 0.5 TOTAL 2 15 352 3,106 155,570 116,637 0 J'13 A J O J'14 A J O J'15 A J O -0.5 VISITOR ARRIVALS IN FEBRUARY 2017 Total visitor arrivals registered in February is 579,178, up by 5.36% from 549,725 in the same month in 2016. Of this, 1.69% or 9,817 visitors were Filipinos residing abroad. Korea remained the top source of market followed by the U.S. and the China. MAN-DAYS LOST Visitors coming from Korea amounted to 150,685 (26.02% share of the total 1400 visitors in February). The U.S. market tallied 80,463 visitors (13.89%) while the Chinese market recorded 78,251 visitors (13.51%). 1200

1000

800

600

400

200

0 J'13 A J O J'14 A J O J'15 A J O -200

-400

VISITOR ARRIVALS: JANUA RY-FEBRUARY 2017 SURVEY ON MONTHLY OCCUPANCY RATE & LENGTH OF STAY COUNTRY 2017 2016 CHANGE % RANK Jan to Dec Jan to Dec Growth Rate KOREA 305,052 147,165 107.29 1 2015 2014 2015/2014 USA 179,898 84,506 112.88 2 De Luxe Hotels CHINA 164,199 48,708 237.11 3 Occupancy Rates 71.60 71.11 0.69 JAPAN 105,473 41,691 152.99 4 Length of Stay 2.71 2.74 -0.79 AUSTRALIA 47,983 25,274 89.85 5 First Class Hotels CANADA 43,368 21,108 105.46 6 Occupancy Rates 59.09 58.83 0.44 TAIWAN 42,398 15,523 173.13 7 Length of Stay 2.19 2.14 2.42 UNITED KINGDOM 30,973 15,072 105.50 8 Standard Hotels SINGAPORE 25,309 13,404 88.82 9 Occupancy Rates 62.51 63.96 -2.27 MALAYSIA 21,550 11,068 94.71 10 Length of Stay 2.42 2.52 -3.81 INDIA 19,426 8,954 116.95 11 Economy Hotels HONGKONG 18,176 8,132 123.51 12 Occupancy Rates 60.14 59.73 0.69 OVERSEAS FILIPINO 21,335 16,263 31.19 Length of Stay 1.57 1.65 -4.85 OTHERS 185,677 85,390 117.45 TOTAL 1,212,834 544,274 122.84 Overall Average 66.95 67.21 -0.39

Philippine ANALYST BUSINESS April 2017