INVESTMENT CLIMATE IMPROVEMENT PROJECT NEWSCLIPS Economic Reform News from the and Elsewhere June 28, 2011

Aquino gets 71% trust rating Philippines Bulletin, June 22, 2011 Ellalyn De Vera President readying next priority measures , June 22, 2011 MANILA, Philippines — President Benigno S. Genalyn Kabiling Aquino III’s approval and trust ratings dipped anew in the latest Pulse Asia survey results MANILA, Philippines — President Aquino will released on Wednesday. convene the Legislative Executive Development Advisory Council (LEDAC) on July 12 to SPi Global named top foreign BPO firm in present the next set of administration's priority Vietnam measures for the year. , June 15, 2011 Mary Ann Reyes BSP defers to DFA on bid to join OECD-DC Manila Bulletin, June 23, 2011 MANILA, Philippines – SPi Global, the largest Lee Chipongian Filipino-owned business process outsourcing (BPO) company, has surpassed other foreign MANILA, Philippines — The Bangko Sentral ng BPO companies in Vietnam to win an accolade Pilipinas (BSP), which wants to join the Paris- in the prestigious 2011 Sao Khue Awards. based OECD Development Center (DC), may have to defer to the Department of Foreign RE costs mitigating measures vowed Affairs (DFA) as lead agency in the proposal Manila Bulletin, June 15, 2011 stages since the OECD (Organization for Myrna Velasco Economic Cooperatin and Development) will only recognize an ambassador of the Philippines MANILA, Philippines — The Philippine as representative. government has assured industry stakeholders and consumers that it will design mitigating Creative industries to get incentives with re- measures so the integration of renewable energy inclusion in 2011 IPP (RE) in the power mix will not trigger “price Manila Bulletin, June 24, 2011 shocks” in the electric bills. Bernie Cahiles-Magkilat Mar gets briefing on DOTC projects MANILA, Philippines — President Aquino has The Philippine Star, June 15, 2011 recognized the potential of the local show Rainier Allan Ronda business as he asked for the re-inclusion of creative industries in the already long-delayed MANILA, Philippines - Officials of the 2011 Investment Priorities Plan (IPP) on hopes Department of Transportation and that granting incentives to these sectors could Communications (DOTC) led by outgoing generate investments and improve the capability Secretary Jose de Jesus and the heads of its of the country as animation and film-making attached agencies came in full force yesterday to hub. have their first meeting with incoming Secretary Manuel Roxas II. Asean seeks new common tarriff list The Philippine Daily Inquirer, June 24, 2011 Palace suspends special prosecutor Ronnel Domingo The Philippine Star, June 16, 2011 Delon Porcalla Customs chiefs in the Association of Southeast Asian Nations are pushing for the MANILA, Philippines – Malacañang has implementation on Jan. 1, 2012, of an updated suspended Special Prosecutor Wendell Barreras- common list of tariffs and products that is said to Sulit for 90 days pending her investigation for be “more comprehensive” than the most recent administrative liability in approving the plea deal version introduced in 2007. of former military comptroller Carlos Garcia.

Government to maximize PPP implementation Ex-AFP general gets 16 years for RSBS land Manila Bulletin, June 24, 2011 mess Edu Lopez The Philippine Star, June 15, 2011 Michael Punongbayan MANILA, Philippines — The government will maximize public-private partnership (PPP) in a MANILA, Philippines - The Sandiganbayan bid to boost the productivity and efficiency of the sentenced a retired military general to a industry and services sectors. maximum of 16 years in jail yesterday after finding him guilty of graft and estafa in Competitiveness indicators made part of dev’t connection with the sale of overpriced land to the plan Armed Forces of the Philippines-Retirement and BusinessWorld, June 23, 2011 Separation Benefits System (AFP-RSBS).

IMPLEMENTATION of the country’s medium- We will do what we're asked - US term development plan will now include the The Philippine Star, June 15, 2011 monitoring of priority competitiveness indicators, officials said, as part of the effort to MANILA, Philippines - A United Nations raise the Philippines’ global ranking. convention is clear on what constitutes sovereign territory, and the United States is prepared to do Invest commitments surge 338% to P191 whatever is asked of it by the Philippines in billion in January-May connection with the South China Sea dispute, US The Philippine Star, June 16, 2011 Ambassador Harry Thomas Jr. said yesterday. Ma. Elisa Osorio Philippines, Australia to discuss trade MANILA, Philippines – Investment priorities commitments went up by 338 percent to The Philippine Star, June 15, 2011 P191.182 billion in the first five months of the Ma. Elisa Osorio year from a year ago level of P43.613 billion as more investments for energy projects continued MANILA, Philippines – The Department of to pour into the country, the Board of Trade and Industry (DTI) is looking at getting Investments (BOI) reported yesterday. more investments from Australia and improving trade relations between the two countries. BIR files tax evasion charges vs 3 firms The Philippine Star, June 24, 2011 3 Cabinet men giving P-Noy headaches Iris Gonzales The Philippine Star, June 24, 2011 Delon Porcalla MANILA, Philippines - The Bureau of Internal Revenue (BIR), the government’s main revenue MANILA, Philippines - President Aquino agency, filed yesterday tax evasion cases against dreads seeing two or three members of his three companies. Cabinet he considers harbingers of bad news.

UNCTAD pushes supply chain integration Ochoa's new designation not an overload – BusinessWorld, June 23, 2011 Palace Eliza Diaz The Philippine Star, June 19, 2011 Aurea Calica DEVELOPING countries must participate in global supply chains to attract foreign direct Manila, Philippines - The appointment of Paquito investment and pursue economic development, a Ochoa Jr. as chairman of the reorganized United Nations agency affirmed last week in a Presidential Anti-Organized Crime Commission trade and development report. (PAOCC) would not entail any additional workload that would compromise his duties as BoI approves P7-B new projects executive secretary, Malacañang gave assurance Manila Bulletin, June 23, 2011 yesterday.

MANILA, Philippines — Seven projects, mostly ‘The good and the bad news’ mass housing ventures, with combined The Philippine Star, June 24, 2011 investments of over P7 billion and jobs Babe Romualdez generation prospects of over 2,500 were granted tax and fiscal incentives by the Board of We’ve heard about numerous complaints coming Investments (BoI). from the Palace about media highlighting only the “bad news” and not the “good news.” One P-Noy sees P7-B savings from DPWH before piece of really good news that came from the year ends international community — specifically the The Philippine Star, June 24, 2011 recent upgraded rating from Moody’s — is the Dellon Porcalla kind of news the P-Noy administration should have been drumbeating like hell. MANILA, Philippines - President Aquino expects a windfall of around P7 billion from the Editorial - It's really more than the Spratlys former corruption-mired Department of Public The Philippine Star, June 24, 2011 Works and Highways, which would form part of Boo Chanco the “savings” his administration will achieve due to judicious and prudent spending. The crazy thing about how we are treating issues related to China, notably the Spratlys tempest, is Delays hit priority projects how everything seems to resemble a schoolyard BusinessWorld, June 23, 2011 brawl among preadolescent ruffians. It is so pathetic to see supposedly distinguished leaders ACTION on a number of priority state and spokesmen of nations act and talk this way. infrastructure projects lined up for this year will have to wait till next semester, partly upsetting Editorial - US foreign policy and the the government’s original time table. Philippines BusinessMirror, June 23, 2011 Lagarde, Carstens shortlisted for IMF race John Mangun The Philippine Star, June 15, 2011 What is currently perhaps the most difficult WASHINGTON - The International Monetary geopolitical question you can ask a Philippine Fund on Monday shortlisted French Finance government official: “What is the US foreign Minister Christine Lagarde and Mexican central policy toward the Philippines?” bank chief Agustin Carstens for the IMF's top job, disqualifying Bank of Israel's Stanley Fischer because of his age. Global/Regional

US senator urges action on South China Sea dispute Carrefour charts growth in Indonesia The Philippine Star, June 15, 2011 Fruitnet.com, June 23, 2011

WASHINGTON – The United States needs to An increase in consumer spending has spurred on condemn China’s use of force and push for sales growth for Carrefour’s Indonesian multilateral negotiations to resolve territorial operations. French retail giant Carrefour has disputes in the South China Sea that have raised predicted continued growth in its Indonesian tensions in the region, a prominent senator said hypermarket business on the back of strong Monday. consumer spending in the South East Asian archipelago.

Three Things Indonesia Needs to Do To Start Competing With Regional Rivals Jakarta Globe, June 22, 2011 Kate O'Loughlin

At the World Economic Forum in Jakarta this month, countries were urged to pursue increasing economic openness and competitiveness to drive new growth in Asia. For a country like Indonesia, which has concentrated on an ever- expanding domestic market, the forum was a timely call for a review of export policy,

P-Noy launches National Renewable Energy openness and competitiveness. Program The Philippine Star, June 15, 2011 China to launch Beijing-Shanghai high-speed Aurea Calica railway this month Manila Bulletin, June 15, 2011 MANILA, Philippines - `President Aquino formally launched yesterday the government’s SHANGHAI, June 14 (AFP) – China's much- National Renewable Energy Program (NREP) anticipated high-speed railway linking Beijing aimed at addressing the spiraling cost and and Shanghai is set to open this month, the insufficiencies in the supply of electricity, government said, shrugging off safety concerns especially in rural areas. after a recent corruption scandal.

Gov arrested over mining graft case Hyundai Heavy Sees Rise in Ship Orders The Philippine Daily Inquirer, June 24, 2011 The Wall Street Journal, June 23, 2011 Franklin A. Caliguid Kyong-ae Choi BUTUAN CITY—The governor of Agusan del Norte has been arrested for a graft case at the SEOUL— Hyundai Heavy Industries Co. Sandiganbayan yesterday but wasn’t likely to forecast that ship orders will nearly double this spend time in jail after posting bail immediately year from a weak 2010, though demand in the after his arrest was made. second half is unlikely to match that of the first.

BSP seen tightening policy stance in H2 The Philippine Star, June 19, 2011 Lawrence Agcaoili

MANILA, Philippines - British banking giant Hong Kong and Shanghai Banking Corp. (HSBC) expects the Bangko Sentral ng Pilipinas (BSP) to further tighten its policy stance in the second half of the year due to rising inflation despite the decision of monetary authorities to keep interest rates unchanged last Thursday. HSBC economist Sherman Chan said in a research note said that the central bank would likely raise interest rates during their next policy rate setting meeting scheduled on July 28.

Jobless rate improves to 7.2% in April The Philippine Star, June 15, 2011 Mayen Jaymalin

MANILA, Philippines – Favorable weather and improved economic conditions pulled down the number of jobless people nationwide, the Department of Labor and Employment (DOLE) reported yesterday.

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