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Contents Briefsmarch 2018 CORPORATEContents BRIEFSMarch 2018 THE MONTH’S HIGHLIGHTS MINING 27 WORD FOR WORD 61 MGB team up with DOST for COMMENTARY nickel research SPECIAL REPORTS I.T. UPDATE 62 PH ranks 2nd least start-up POLITICAL friendly in Asia-Pacific 28 2017 Corruption Perceptions BUSINESS CLIMATE INDEX Index: PH drops anew CORPORATE BRIEFS 32 Sereno battles impeachment 38 in House, quo warranto in SC INFRASTRUCTURE 33 PH announces withdrawal from the ICC 75 New solar projects for Luzon 76 P94Bn infra projects in Davao Region THE ECONOMY 77 Decongesting NAIA-1 55 38 2017 budget deficit below limit on healthy government CONGRESSWATCH finances 40 More jobs created in January, 81 Senate approves First 1,000 but quality declines Days Bill Critical in Infant, 42 Exchange rate at 12-year low Child Mortality in February 82 Senate approves National ID 75 BUSINESS 84 Asia Pacific Executive Brief 102 Asia Brief contributors 55 Pledged investments in 2017, lowest in more than a decade 58 PH manufacturing growth to sustain double-digit recovery 59 PH tops 2018 Women in Business Survey 81 Online To read Philippine ANALYST online, go to wallacebusinessforum.com For information, send an email to [email protected] or [email protected] For publications, visit our website: wallacebusinessforum.com Philippine ANALYST March 2018 Philippine Consulting is our business...We tell it like it is PETER WALLACE Publisher BING ICAMINA Editor Research Staff: Rachel Rodica Christopher Miguel Saulo Allanne Mae Tiongco Robynne Ann Albaniel Production-Layout Larry Sagun Efs Salita Rose Basas Ramon Lopez 5/F Builders Center Bldg., 170 Salcedo St., Legaspi Village, Makati City ● TEL: (632) 810 96 06 to 09 ● FAX: (632) 810 96 10 ● EMAIL: pwallace@ wbf.ph ● WEBSITE: www.wallacebusinessforum.com ● To read Philippine ANALYST online, go to wallacebusinessforum.com ● For information, send an email to [email protected] or [email protected] ● For publications, visit our website: wallacebusinessforum.com Member in Focus: Forth & Tay Established in 1996, Forth & Tay is a leading player in the wines and spirits industry in the Philippines. The company’s name was inspired by the 2 main rivers running through Scotland which are known for the quality and pureness of the water, the lifeblood of whisky. Forth & Tay started as a malt whisky, spirits, fine wine, and cigar bar catering to Manila’s select crowd - the first of its kind in the country which set the bar for others. The following years proved to be important for the company as it transformed to become a successful direct to consumer retailer of fine wines and spirits – a business that continues to grow, with a loyal and increasing customer base, proof to the quality of service provided. As a testament to their pioneering work, Forth & Tay, together with Salcedo Auctions, conducted the first wines and spirits auction in the country on March 2011.1 Over 50 lots from the Old World and the New World were put into auction that night. Steering Forth & Tay all these years is James Du Vivier, President and Chief Executive Officer since 2000. James has been living in the country for almost 30 years now. He first came here in 1984 and eventually relocated in 1987 to serve as the Managing Director of International Distillers Philippines. Before taking that post, he also served as the Area Director for Far East & Australasia of International Distillers & Vinters based in London for 3 years (1984-1987). He also worked with several companies such as Black & Decker as an Area Manager for North and West Africa from 1978-1982, and as UK Product Manager for Outdoor Products from 1982-1984; and with Edrington Group as Far East Regional Managing Director from 1998-2000. James earned his BA Degree in International Marketing from London University, and studied also in Malvern College. Forth & Tay is working towards their vision of becoming a leading wholesaler and retailer of imported wines and spirits in the Philippines. Their mission is to offer a complete portfolio of imported wines and spirits at highly competitive prices via direct to consumer channels as well as retail outlets in key cities of the country. The company is founded on the core values of brand building, account management, competitive pricing/value for money, full line selling/one-stop shop, and customer service. The company’s brand portfolio covers budget as low as P200 to as high as P20,000. It encompasses wines from 9 countries, 5 continents, and over 20 different grape varietals to suit even the most discerning palate. The company’s name was inspired by the 2 main rivers running through Scotland which are known for the quality and pureness of the water, the lifeblood of whisky. 1 http://lifestyle.inquirer.net/2400/the-finest-fruits-of-the-vine-favored-by-filipinos/ i Forth & Tay offers exclusive wines such as the Arrogant Frog, Elias Mora, Charles Ninot, Cock + Bull, Dourthe, Dornier, HaHa, and Maverick. Other wines that they have include Arbor Mist, Chamdor, Fleur Du Cap, Fortunella, Nederburg, Gran Marinella, Georges Duboeuf, Lindemans, Piper Heidsieck, Los Cardos Dona Paula, Louis Chatel, Martini Asti, Monkey Bay, Frescobaldi, Penfolds, Paul Masson, Robert Mondavi, Queen Adelaide, Talus, Torres Wine, Two Oceans, Obikwa, Sta. Rita, Listel, Hardys, and Kim Crawford. Forth & Tay also has RTDs, Ciders and Beers. They are Carlsberg, Fosters, Victoria Bitter, Crown Lager, Savanna, Somersby, Vodka Cruiser, Vodka Mudshake, and Shakers Mudslide. For Spirits, the company has Bacardi, Bombay Sapphire, Calvo Spirits, Camino Real, Canterbury Cream, Cointreau, Dewards, Grey Goose, Label 5, Martini Vermouth, Mount Gay, Old Virginia, Poliakov, Remy Martin, Shakers Mudslide, St. Remy, Svedka, Torres Brandy, and 42 below. Currently, the company has several branches around the country. They have one in Boracay, Cebu, Davao, and Cagayan De Oro. Additional outlets are also planned to be set-up in the near future. Its office address is at Sunyu Compound, Veterans Industrial Complex Western Bicutan, Taguig City. You may contact them at (632) 5568724, through fax at (632) 8281067, or visit their website at www.forthtay.com. ii the month’s highlights 1 Political Business PAST DEVELOPMENT PAST DEVELOPMENT 2017 Corruption Perceptions Index: PH drops anew Despite decades-long government initiatives of curbing Pledged investments in 2017, lowest in more than a decade fraudulent practices in the public sector, the perceived level of The combined foreign investment pledges to the 7 investment government corruption in the Philippines continues to worsen as promotion agencies (IPAs) sharply decreased by 51.8% in 2017. reflected by its latest ranking in the 2017 Corruption Perceptions This is the lowest data reported in 12 years since the P95.8 Index (CPI) of Transparency International (TI). (see story on p28) billion recorded in 2005. (see story on p55) PRESENT DEVELOPMENT PRESENT DEVELOPMENT PH announces withdrawal from the ICC The Philippines pulls out of the International Criminal Court PH tops 2018 Women in Business Survey (ICC), a month after its Office of Prosecutor announced the start Coinciding with the celebration of International Women’s Day of an initial examination on the alleged extra-judicial killings 2018, the annual Women in Business report of Grant Thornton Ltd. in the country. The withdrawal will take effect on March 2019. revealed that the Philippines has the highest number of women (see story on p33) executives compared to other countries. (see story on p59) FUTURE DEVELOPMENT FUTURE DEVELOPMENT Sereno battles impeachment in House, quo warranto in SC Supreme Court (SC) Chief Justice (CJ) Maria Lourdes Sereno is PH manufacturing growth to sustain double-digit recovery now facing 2 parallel battles for her survival as the country’s Following its recovery in January and February, the Philippine top magistrate – the impeachment case which is already set manufacturing sector is expected to maintain double-digit for plenary deliberations at the House of Representatives, and growth in 2018, according to the National Economic Development the quo warranto petition which is currently being discussed Authority (NEDA). (see story on p58) at the SC. (see story on p32) Mining Economy FUTURE DEVELOPMENT PAST DEVELOPMENTS MGB team up with DOST for nickel research 2017 budget deficit below limit on healthy government After the collaboration in June 2017, the Department of Science finances and Technology (DOST) and the Mines and Geosciences Bureau The national government incurred a deficit of P350.6 billion (MGB) are advancing their research and development (R&D) (2.2% of gross domestic product or GDP) in 2017, below the for the reduction parameter optimization of low-grade nickel programmed level of P428.1 billion (3% of GDP) for the year laterites. (see story on p61) despite the Duterte administration’s commitment to ramp up the deficit spending. (see story on p38) More jobs created in January, but quality declines IT Update The Labor Force Survey (LFS) of the Philippines Statistics Authority (PSA) recorded the unemployment rate at 5.3% of PRESENT DEVELOPMENT the labor force in January 2018, the best result for the January survey round in the past decade. (see story on p40) PH ranks 2nd least start-up friendly in Asia-Pacific Exchange rate at 12-year low in February The Philippines is one of the least attractive countries for startup businesses in the Asia Pacific region. This is according to the The exchange rate plunged to a 12-year low, closing at P52.34:$1 report of consumer research group, ValuePenguin. on February 19, following the decision of the Bangko Sentral (see story on p62) ng Pilipinas (BSP) to cut the reserve requirement ratio (RRR) by 1%-point. (see story on p42) Philippine ANALYST March 2018 2 the month’s highlights Infrastructure CongressWatch PRESENT DEVELOPMENTS PRESENT DEVELOPMENTS New solar projects for Luzon P86 billion worth of solar projects in Luzon by Solar Philippines Senate approves First 1,000 Days Bill Critical in Infant, Child Commercial Rooftop Projects Inc.
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