and the Page ii for International Developme this in reviewed activities the of Some document are document.made possible by the the support of the American in people through the elsewhereUnited States Agency listed sponsors sector public and private many the of those instance every and each in not and , the of Commerce of who have cooperated with the expertsvarious and document the of author the of those arepublication the in expressedviews The with orwithoutattribution. purposes. It is, however, an advocacy publication and its use commercial any for form, in for part, in or economic whole in reproduced policy be not may publication advocacyThis reserved. rights All is highly encouraged Website: Fax No.: Tel. No.: Address: The American ChamberofCommerce ofthePhilippines,Inc.(AmCham) The Arangkada PhilippinesProject (TAPP) Published by: Philippine Copyright ©2017 States Government.

www.arangkadaphilippines.com +63 (2)751-1495 +63 (2)811-3081 7th Floor, Corinthian Plaza Bldg.,121Paseo deRoxas, City, Philippines nt (USAID) Arangkada Philippines Project administered by the American Chamber and do not necessarily reflect the views of USAID or the United TABLE OFCONTENTS A. Environment andDisaster-Risk Reduction Chapter 6:Science,Technology andArts(Point 8) E. D. C. Health Care Sponsors List Bibliography Annexes Chapter 7:Poverty Promote Alleviation Manufacturing andSocialProtection Program (Points 9) C. Promote Creative Industries B. Chapter 5:HumanCapital Development &Reproductive Health(Points 7 & 10) D. Land Administration C. A. B. Water Chapter 4:Rural Development (Points 5and6) H. Telecommunications G. Intra- andinter-urban Railways andBusRapidTransit F. Roads andExpressways E. Maritime C. . Spending Levels, FundingSources, Procurement Policy A. Chapter 3:Infrastructure F. Building(Point 4) Reduce Cost ofDoingBusiness:JudicialIssuesandCorruption E. Competitiveness: Liberalization ofForeign Participation intheEconomy D. . Increasing Competitiveness A. Chapter 2:Increase Competition andthe EaseofDoingBusiness (Point 3) Introduction to Arangkada Messages Acknowledgements List ofTables andFigures Chapter 1:Continue Macroeconomic Agenda (Points 1and2) Arangkada B. A. A. D. B. C. B. B. A. Reducing Cost ofDoingBusiness:CrimeandViolence scienceandtechnology Promote

Education Reproductive Health

Extractive Business Tourism Agribusiness Power Airports Reducing Cost ofDoingBusiness:LaborIssues Reducing Cost ofDoingBusiness:Red Tape Tax Reform (Point 2) Macroeconomic Policies (Point 1) PhilippinesandtheTen-point Socio-Economic Agenda Process Ports Industries Management Philippines (BPM)

87 84 83 80 121 120 106 99 94 91 88 68 65 73 62 74 61 59 56 54 49 46 40 37 35 31 29 27 25 22 17 15 8 viii vii iv 2 1 xi x 78 69 44

Page iii Page iv LIST OF TABLES AND FIGURES Table 11.MajorPower Projects, 2017 Figure 32.Average Retail ElectricityTariffs, USc/kWh, 2016 46 46 Table 10.MajorSeaportProjects, 2017 Figure 31.QualityofPorts Rankings,ASEAN-6 (2008-2017) 44 Table 9. Major AirportProjects, 2017 45 Figure 30. Passenger Movements inPhilippineAirportsOutside ofManila,2010,2015 44 Figure 29. Quality ofAirTransport Infrastructure Rankings,ASEAN-6 (2008-2017) Figure 28. NAIA Passenger DemandForecast Figure 27: DBM Infrastructure SpendingProjection 40 38 Figure 26. National Infrastructure SpendingandOtherCapital Outlays, PhpBn,1989-2017p Table 8. Figure 25. Overall Infrastructure Rankings,ASEAN-6, 2008-2017 Figure 24. Business Costs ofCrimeandViolence, Rank,ASEAN-6 Figure 23. Reliability ofPolice Rank,ASEAN-6 Services, 36 Figure %ofGDP, 22.Military Spending, ASEAN-6, 1990-2016 32 32 31 Table 7.Transparency International Corruption Perceptions Index, Selected East andSouth Figure 21.BusinessImpactofRulesFDI,Rank,ASEAN-6, 2009-17 27 Figure 20.DailyMinimumWages, SelectAsianCountries, US$,June2017 Box 1.Continued... Box 1.Project Repeal 25 Figure 19.Ease ofDoingBusiness,Percentile Rankings,ASEAN-6, 2007-2017 24 Table 6.Legislative Businessand Economic Reform Measures, 17 Table 5.NumberofHolidays, SelectCountries, 2017 Figure 18.Average Wage Increase Rates (%),SelectAsianCountries, 2015-2017 20 Table 4.GlobalCompetitiveness ReportCard (2010-2017) 17 Figure 17.BIRPerformance Report 13 Figure 16.Total Tax CollectioninthePhilippines,2010-2017(Q1) Figure 15.Percent Increase inHouseholdIncome after Tax-Transfer Reform Figure 14.AnnualAverage FDIperAdministration, inUS$Million,1970-2016 12 Figure 13.Net FDI,BnUS$,ASEAN-6, 2000-2016 Figure US$Bn2004, 2016 12.ExportofGoods,PhilippinesandVietnam, Figure 11.Total PhilippineExports,BnUS$,1990-2016 6 Figure 10.Real GDPYoY Growth Rates, Quarterly, ASEAN-6, 2014-2017 5 Figure 9.PhP/USDExchange Rate, 5 1990-2017f Figure 8.PhilippineGross International Reserves andImportCover, Monthly, 4 2010-2017 Figure 7.Domestic Inflation, 2006=100,1995-2017f 4 Figure 6.Sovereign 3 Credit Ratings, Philippines,Notches from Investment Grade, 1997-2017 Figure 5.Macroeconomic Environment /Stability, Rank,ASEAN-6, 2009-2017 Table 3.2016Compared with2010;Areas ofLittleorNoProgress xvi Figure 4.Most Problematic Factors for DoingBusiness,2016 Table 2.GlobalCompetitiveness Report,Philippines vsASEAN (2010-2016) xv Table 1.2016Compared with2010;Areas ofConsiderable Progress Figure 3.Real GDPGrowth Rates, ASEAN-6 1990-2017f xiv Figure 2.Arangkada Recommendations Assessed:2011-2015 Figure 1.Arangkada List ofPublications: 2011-2015 xiii xii xi Key Infrastructure Indicators, ASEAN-6 37 Asian Countries, 2005-2016 29 th Congress 21 41 41 37 26 22 19 9 6 3 2 2 xiv

LIST OF TABLES AND FIGURES Figure Expenditure 67.SocialServices Program, %ofNational Budget, 2014-2018 Figure 66.SlumPopulation as%ofUrban Population, SelectAsian Countries, 1990-2014 Figure 65.Degree ofSelf-Rated Hunger inHouseholds,1998-2016 102 Figure 64. Poverty Incidence for BasicSectors, 2006,2009,2012and 2015 Figure 63. Poverty Rate at $1.90/day (PPP)Benchmark, %ofPopulation, 1991-2012 Figure 62. Poverty Incidence inthePhilippines,2006-2015 100 Figure 61. ASEAN Manufacturing Purchasing Managers’ Index, August 2017 Figure 60. Share inASEAN-6 Total Manufactures Exports Figure 59. Manufacturing LaborProductivity (1980=100),1980-2014 Figure 58. Distribution ofManufacturing GVA inthePhilippines 95 96 Figure 57. Philippines’ Manufactured GoodsExport,1990-2016 Figure 56. Economic Contribution ofCopyright BasedIndustries 95 Table 19. Research and Development Expenditure, %ofGDP, 94 ASEAN-6 Figure 55.QualityofMath andScienceEducation, Rank,ASEAN-6 89 92 Figure 89 54.GlobalInnovation Index, ASEAN-6, Percentile, 2011-2017 Table88 18.GlobalInnovation Index, PhilippinesScore andRank,2017 Figure 53.Philippines’Forest Cover, 88 1900-2010 Figure 52.PhilippinePopulation Projections, InMn,1903-2100 Figure 51.Per Capita Government Expenditure onHealth,(PPPint. $),ASEAN-6, 1995-2014 84 Figure 50.Government Expenditure onHealth,%ofGDP, 83 ASEAN-6, 1995-2014 Figure 49.PhilhealthMembership, Philippines,1997-2016 80 Figure 48.BPMIndustry Employment, 2004-2017 79 Figure 47.BPMIndustry Revenues, MnUS$,2004-2017 Figure 46.Top Ten SkillsWorkers ShouldProcess in2020 Figure 45.QualityofEducational System, Percentile, ASEAN-6 78 Figure 44.HumanDevelopment Index, Percentile Rankings,ASEAN-6, 1990-2015 75 76 Figure 43.TheMineral Products ExportsinthePhilippines 70 Figure 42.Philippines’MiningGoodsExportsDistribution 69 Figure 41.PhilippineTravel Competitiveness Index, 2011and2017 66 Figure 40.International Tourist Arrivals, ASEAN-6, 2010-2014 Table 17.Agricultural GoodsandFood Exports,ASEAN-6, US$Bn,2014 66 Figure 39.Percent Contribution ofAgriculture to GDP, ASEAN-6, 2006-2016 Table 16.MajorWater Projects, 2017 63 Box 2.Better Broadband Alliance 59 60 Figure 38.Average Download Speed(inMbps) ofBroadband inSelectAsiaPacific Countries: Table 15.Cost ofMobileBroadband inASEAN (2015) Table 14:MajorRailway Projects, 2017 57 Figure 37.QualityofRailroads Rankings,ASEAN-6 (2008-2017) Figure 36.Metro ManilaCost ofTraffic, PhPBn/day 55 Table 53 13.MajorRoad andExpressway Projects, 2017 54 Figure 35.DPWH’s Budget (inBillionPesos) 50 50 Figure 34.QualityofRoads Rankings,ASEAN-6 (2008-2017) Table 12.Road QualityandRoad Density, 49 2013 Figure 33.QualityofPower SupplyRankings,ASEAN-6 (2008-2017) 47 49 ASEAN-6 +India(2011-2015) 57 103 102 101 100 96 81 81 74 63

Page v Page vi EvardoneAmCham Legislative, Committee Coordinator book. coversinside cover;the and and reproduced most ofthegraphs andtables; TAPPdetails. works commendsthe of Aimee BettinaT. Bautista The of support from countlessstakeholders. The production of this document was ledby theChief of Party of Administration” is the result publication of teama small immensely assisted by thegenerous outpouring EliezerR. Bayasen Loquinario Forum JannicaAnne H.Gaisano Manager also for thehardwork andefforts of AmCham Corporate Sponsorship Consultant document. Joseph Reines a reality. Alistofthesesponsorscanbefound atthelastpages ofthisbook. ACKNOWLEDGEMENTS TAPP would alsolike to acknowledge thetireless efforts ofSenior Legislative Specialist “ArangkadaThe This publication andtheSixth This publication Lastly, we are greatly indebted to ourgenerous corporate sponsors who madetheSixthArangkada Forum Arangkada Philippines Project (TAPP), , Mark Kristofer B.Querubin who didbackground researchciteddata compiled summariesof someimportant and inthis , Donald RaymundDonald F. Felbaum Philippines and theTen-PointPhilippines Socio-Economicthe Duterte Agenda of and Froland M.Tajaleco-authors, editors, as coordinators and publication ofthe Mary GraceMary Dilag-Mojica Arangkada Anniversary Forum would nothave beenpossibleif not Angeli Gracewho Juani, contributedeconomics researcheran as and , GhabrielIeashaSta.Ana , Christina Maria D.Christina Maria Tuguigui Carolyn T. Singson, John D.Forbes , astheprincipalauthorincollaboration with , Daniel Mariano who layouted theentire documentto ahandsome Yves Aguilos Shella May Fuentebella , and , , andresearch assistants Ishan KumarRai, and , who designed the front andback Deanna Rector Christina Diaz-Winton, , . Sean Thomas P. Thomas Sean Atty. Armie Harrison Nathan

Page vii Page viii Philippines Forum 2017 towards buildingastronger andmore progressive nation. providing a better life for our people. Together, letuscreate avibrantbusiness environmentis thatgeared manufacturing andlogistics,miningtourism. particularly inagribusiness,information andcommunicationstechnology, creative industries, infrastructure, andprivateboth thepublic sectors can share insights onhowwe canintroduce effective reforms in key areas, efforts ofthegovernment, butalsoontheactive participationofthebusinesscommunity. and inclusive growth throughout thecountry.would Itssuccessful implementation notjustdepend on the 14 September 2017 MESSAGE My warmest greetings to theJointForeign Chambers I wishyou allthebest. May thiseventinspire toparticipants the creatingin joinus morea dynamiceconomy of is capable that I therefore commendJFC for providingforum a where expertand interestedpanelists stakeholders form More than ayear ago, we launched aTen-Point Socio-Economic Agenda thatseeks to spur self-sustaining on theoccasionoftheir6 THE PRESIDENTOFPHILIPPINES MALACAÑAN PALACE MESSAGE Manila th Anniversary.

(JFC)

of thePhilippinesasthey holdthe RODRIGO ROA DUTERTE RODRIGO ROA DUTERTE Arangkada will gain here willbefor thebenefitofall. sectorspublic discuss key programsachievehelp will andpolicies that of Dutertenomics. thegoals we What (DTI) pursuitfor genuineandinclusive growth andshared prosperity. TradeIndustry’s of and Department the with line in are businesses all forlevel-playing field guaranteeinga the country. touching onthereformsthe Duterte that Administrationundertake will to ensure easeofdoingbusiness in at thebottom ofthepyramid. those empowering also while countrymen our greatlywouldbenefit that projectsprograms and implement forthe business communityis an essentialcontributorall, in thegovernment’s efforts to strategically integral to thefullrealization oftheagenda’s targets. more supportof the government’s incomeopportunities,thebusiness community’s socioeconomic agenda is and to uplift thequalityoflife ofevery Filipino. as relevant, especially asitfocuses onPresident Rodrigo Duterte’s 10-Point Socioeconomic Agenda —dubbed esteem for Filipinoswho loyally serve asthebackbone oftheiroperations here inthePhilippines. commerce. platform to assess the current Philippineinvestment climate majorbusiness bychambers of thecountry’s MESSAGE “Dutertenomics” Congratulationsto theJointForeign Chambers Thank you and DTI isgreatly supportive oftheJFC intheconductofthisForum asrepresentatives from theprivate and I wishto noteJFC’s that goal inpromoting aninvestor-friendly environment inthePhilippines and in the discussions optimistic thatintheforumam I substantive,and fruitful both be will especially those Moreover,inclusivethe countryattains asapartner inensuringthat growthleading to shared prosperity initiativesAs implemented underDuetertenomics aretargeted towards creatingmore generatingand jobs This year’s themeof“Arangkada Philippines:the Implementing Ten-Point Agenda” isindeed timely and wouldI also like tomember-organizations commendthe JFC ofthe for theircontinuedsupportand — that aims to —that widenthegains ofeconomicdevelopment, to address incomeinequality, 5/F Industry andInvestments 385Senator Building, GilJ. Puyat Avenue, 1200Makati City, Philippines mabuhay! Telephone (632)899.7450 •Fax (632)896.1166•E-mail: [email protected] / Enabling Business,Empowering Consumers OFFICE OFTHESECRETARY MESSAGE (JFC)

for convening the6 th Secretary RAMON M.LOPEZ Secretary RAMON M.LOPEZ

Arangkada Forum , anannual

Page ix Page x Headquarters Inc. Regional Companies Multinational of Association Philippine and Inc., Commerce of KoreanChamber Inc., Industry and Commerce of Chamber Japanese Inc., Commerce of Chamber European Inc., Commerce, of Chamber Canadian Inc., 1 sevenJoint Foreign membersofthe Philippines (JFC) the Chambersof to supportincreased foreign investment andjobcreation inthePhilippines.Sponsored by the detailed source ofpolicydocumentswithrecommendations from theforeign investment community Introduction to Arangkada the Philippines 2010:aBusinessPerspective. Thesepublications–pleaseseeFigure 1-canbefound on and publishedfivepolicy briefs andseven policynotes,to inaddition original book its The Since Arangkada website atwww.arangkadaphilippines.com. seven JFC members are: American Chamber of Commerce Inc., Australia-NewCommerceCommerceInc., of sevenmembersof JFC are:ZealandChamber AmericanChamber releasing itsfirstpublicationin late 2010, Figure 1.Arangkada List ofPublications: 2011-2015 Philippines Arangkada Philippineshasestablisheditselfasa 1 , Arangkada hasprepared Arangkada

Page xi Page xii appears atFigure 2. was made and sentto President Aquino. The letter to him can beseen at Annex Aandthesummary Macroeconomic Policy, Government, Security, Education, andsocialservices Local Healthand Population, and Poverty.Legislation, Labor, Judicial, Governance, Professionals, and Equity Foreign Disasters, Natural and 2 theme: were publishedandreleasedthe annual at Environment. 2010 contained sections on GrowingToo Slow, BecomingMore Competitive, andtheGeneralBusiness the highest potential for growth withthesupportofdomesticandforeign investment: Following the fifth forum, a summary of the progress in implementation of the recommendations the of implementation in progress the of summary a forum, fifth the Following • This section covered 13 policy areas which impact on the investment climate: Business Costs, Environment Business climate: on the investment impact which areas policy 13 covered section This • • • • • Following the 2010 publication of In addition toIn extensive an discussion of theSevenWinner Sectors, Big • • • • • • • Arangkadaits recommendations built ontheSeven BigWinnerSectors, which the JFC believes have 10% 20% 30% 40% 50% 60% 70% 80% 0% Implementing theTen-point Agenda(2017) A BolderandMore Inclusive Decade Invest NOW for Inclusive Growth! (2015) More Reforms=More Jobs!(2014) Realize thePotential (2013) Move Twice asFast (2012) Tourism, MedicalTravel, and Retirement Mining Manufacturing andLogistics Infrastructure (Airports,Power, Rail, Roads, Seaports,Telecommunications, andWater) Creative Industries Business Processing Management Agribusiness 2 Started

2011 to Substantial Progress Figure 2.Arangkada Completed 2012 Arangkada Completed Started Recommendations Summary: 2011 Arangkadaassessments of the470 , annual recommendations 2013 Recommendations Assessed:2011-2015 (2016) Arangkada forum. Five forawere differenta heldeachwith 2014 Not Backward / / Backward Regression Ongoing to 2015 - 2015 0% 10% 20% 30% 40% 50% Arangkada Philippines Dormant, lhs Dormant, lhs Active, rhs Started, Substantial rhs Progress, rhs Completed, decades past. economies, shedding its economic basket and“SickManof Asia” case, boom-and-bust, reputation from (see Figure3), andthePhilippines has become known asthefastest growing of the larger ASEAN-6 Philippine economy hasmadeimpressive progress. From 2011 to 2016 GDP growthaveraged 6.3% Arangkada Agenda Ten-point the Implementing of theenvironment, and,mostimportantly, accelerated reduction ofpoverty. services, acceleratedand inclusiveness, acceleratedof infrastructure, building accelerated remediation acceleratedit: creation, job accelerated foreign domesticand investment,accelerated exportsof goods economy, economies thatitcurrently lagsbehind. when implemented, assures thePhilippineswillberated infuture years muchcloserto theother ASEAN-6 Commerce ofthePhilippinesandothersources to create anextensive menuofpolicy suggestionsthat, Plan, previous entitled Philippines Project (TAPP) attheAmericanChamber ofCommerce hasprepared thisspecialpublication Natin 2040visionoftheNationalEconomic andDevelopment Agency(NEDA). Arangkada’s Seven BigWinner Sectors, the PhilippineDevelopment2017-2022, Plan and and projectspolicies, thatsupportachievement oftheten pointsintheyearsprograms, ahead.Thepanelsare entitled: key discuss will sectors private and public the from panels five and speakers In the sevenIn yearsof since thepublication The JFC hasorganizedAnnual theSixth ArangkadaFilipino word isa “to meaning accelerate.”When usedinthecontext of thecountry’s tocompanion document a As the at discussion the These reformsframeworkdiscussed the be within will Ten-pointof the Socio-Economic Agenda, • • • • • Sulong Philippine Workforce 2030:HumanCapitalChallengesandSolutions Disruptive Technologies: ArtificialIntelligence, BigData,Drones, Robots, etc. Game Changers:Agribusiness,Creative Industries,andTourism Philippine IndustrialRevolution: Manufacturing, Logistics,andMining Muscling theEconomy: FillingtheInfrastructure Gap “Arangkada Philippines andthe Ten-Point Socio-Economic Agenda.” Arangkada publicationsare combinedwithrecommendations from thePhilippineDevelopment Arangkada Philippinesmeansto accelerate economicgrowthshould come with that and all PhilippinesandtheTen-point Socio-Economic Agenda Pilipinas, thePhilippineChamber ofCommerce andIndustry, TheEuropean Chamber of Source: Source: Figure 3. Real GDP growth growth ASEANrates,RealFigure GDP 3. 10% 12% 14% 16% 18% -4% -2% 0% 2% 4% 6% 8% World Offices Statistics Bank and CountryWorld 2000 2001 Figure 3.Real GDPGrowth Rates, ASEAN-6 1990-2017f 2002 2003 2004 2005 of thePresident Rodrigo R. Duterte Administration.Keynote 2006 Arangkada Forum onSeptember 14,2017 on thetheme - Arangkada Philippines2010: Business Perspective,a the 2007 6, 1990 2008 - 2017f 2009 ArangkadaForum, The of staff the 2010 2011 2012 2013 Recommendations containedin 2014 2015 Singapore Vietnam Malaysia Thailand Indonesia Philippines 2016 2017f Arangkada Ambisyon

Page xiii Page xiv Figure 4). (10.8%), regulationstax (7%), (8.3%), and restrictive policyinstability regulations labor (5.6%) governmentbureaucracy (18.8%), inadequate supply of infrastructure ratesinefficient (17.8%), corruption(16.9%),tax by led competitiveness Philippine affect that areas problematic 16 cited WEF investmentcountry’s climate to becomemore regionally competitive intheASEAN-6 cluster. The own efforts to attract more investment. improvements andincrease efforts to move aheadofthecompetition,whichin their is notstandingstill from 47 in 2015 to 57 in the2016 WEF competitiveness rankings underlines theneed to bothsustain and IndonesiaonlyThailand, slightly aheadofVietnam Competitiveness(WEF) Global Report show thatthePhilippines rated considerably lower than Malaysia, lags behind in terms of overallcompetitiveness. The most recent datafrom theWorld Economic Forum spending oninfrastructure. private commercial, office, and residential buildings rising, paralleled by large increases in public sector by anenlarging middle class. Double-digit growth is also occurring in theconstructionsector with and strong growth inthemanufacturing andtourism sectors are driving increased consumer spending Achievingimproved competitivenesssustainable and require will implemented reformsthe in Despite theimpressive progress, incomparisonto itsmajorASEAN neighbors, thePhilippinesstill Steady remittances from overseas workers, fast-rising revenue of the business processing industry, Source: GlobalCompetitivenessReport,World EconomicForum(WEF) Vietnam Philippines Indonesia Thailand Malaysia Singapore COUNTRIES Table 2.GlobalCompetitiveness Report,Philippines vsASEAN (2010-2016)

Unemployment rate Underemployment rate Remittances Public sectorspendingoninfrastructure(%ofGDP) Global Competitivenessranking Foreign touristarrivals Foreign directinvestment(US$billion) Doing Businessranking Corruption PerceptionIndexranking BPO employment Average broadbandspeed Table 1.2016Compared with2010;Areas ofConsiderable Progress (of 138) 2016 60 57 41 34 25 2 (of 138) 2015 56 47 37 32 18 2 (of 138) 2014 68 52 34 31 20 2 (of 138) 2013 70 59 38 37 24 2 (of 138) 2012 75 65 50 38 25 2 (see Table 4).Theunfortunate ten-placedrop (of 138) 2011 7.30% 18.70% $18.8 Bn 1.79% 85 of139 3.8 Mn $1.1 Bn 146 of183 134 of178 536,128 1Mbps 65 75 46 39 21 2 2010 (of 138) 2010 59 85 44 38 26 3 2016 5.50% 18.30% $26.9 Bn 4.50% 57 of138 6 Mn $7.9 Bn 99 of190 101 of176 1,300,000 4.5Mbps (2015-2016) Change -4 10 -4 -2 -7 0

(2010-2016) Change -1 28 3 4 1 1 (See 6 5 4 3 affecting foreign investors thatwere reflected intheWEFreport. to increase overall competitiveness ofthePhilippineeconomy. its Ten-point Socio-Economic Agenda.FinanceSecretary Carlos G.Dominguez asserted theagendaaims Stated inaletter ofPresident RodrigoR. Duterte to theJFC onAugust 16,2017. October 4,2016 October 4,2016 October 4,2016 And mostrecently, inhismessageto theSeptember 14 poor inefficiencies, bureaucratic perceived from their primarily infrastructure, officialcorruption andtax issues.” resulting over presidency, concerns Aquino nagging former community’s the business of the year final the in happened that rating Finance Undersecretary GilBeltran addedthatthe10-pointagendaaimsto reverse the2015-2016fall. He further statedPresident that Duterte wantedto theagenda toin place put be address theconcerns The data presented by the WEF report may have influenced the Duterte Administration when crafting of the WEF.” concerns raised by the international business inthe community annual global competitiveness report Duterte watch.” improve the ease of doingbusiness here into andturnourcountry a magnetfor investments onthe government to hasgiventhe sharpening top Philippines’ priority global competitiveness, precisely to community.” on thedepend just effortstheof theon also government,but active theparticipation of business sustaining and inclusive growth throughout the country. Itssuccessful implementation would not “The Duterte administration aims to reverse the decline inthe Philippines’competitiveness WEF “[President Duterte] putinplacesocio-economic his10-point agenda thatalready addresses these “Alongside reducingthe incidence poverty by 9percentage pointsover the next sixyears, the new Source: GlobalCompetitivenessReport,World EconomicForum(WEF)2016-2017 “More than ayear ago, we launched aTen-Point Socio-Economic Agenda that seeks to spurself- Poor work ethic in national labor force Figure 4. Most problematic factors for doing business, 2016 business, doing for factors problematic Most Figure 4. Inefficient government bureaucracy government Inefficient Inadequate supply of infrastructure Inadequately educatedworkforce Insufficient capacity to innovate Foreign currency regulations Restrictivelabor regulations 4

6 Government instability 3 Access to financing Poor public health Policy instability Policy Tax regulations Crime and theft Figure 4.Most Problematic Factors for DoingBusiness,2016 Corruption Tax rates Inflation 0 5 5 th Forum, President Duterte stated: 10 15 20

Page xv Page xvi per theguideatbottom ofeach page. discuss point9onimproving socialprotection programs andreducing poverty. promotionthe 8 or ofscience,innovation,technology creative and Chapter 7will last, industries. And developmentwellas Reproductiveof the implementation the as Law. Health Chapter discuss point 6will developmentadministration.and land Chapter discuss points 7and10 5 will namelycapital human 3 discusses point 4onacceleratinginfrastructure. Chapterdiscuss points 5and6onrural4 will various ways to increase Philippinecompetitiveness andimprove theeaseofdoingbusiness.Chapter improving themacroeconomic reform.agenda andpursuingtax Chapter 2 discusses point 3onthe some pointshavecombined underonechapter. been Chapter discuss 2namelypoints 1and 1will on from thepublicandprivate sectors. the Philippine Development2016-2022, Plan the Arangkadaand many publications, other documents moreit making fall expansiveunder eachpoint, andholistic.This expansionof advocacies isevident in specificallylimitedenumerated initiativesnot Manythe topolicy points. ten recommendations and can areas said to affect Philippinecompetitiveness requirethat the agendais additionalpolicyemphasis. But comprehensive. The10-PointSocio-Economic excellentis an Agenda summary ofneeded reforms and require attention: Each chapterEach of recommendationsnumber a contains fromsourcesthe described above color-coded is organized This publication seven in chapters, which sequentiallyfollow tenthe points;however The listsinTables1 and3ofareas progressed that andareasaredid not that illustrative rather than 4, Figure in WEF the by identified areasseven the to addition In Value ofmineralexports Trading acrossborders Total exportsofgoods Starting abusinessranking Protecting investorsranking Overall infrastructureranking Number ofmajortelcoproviders Number ofpaidnon-workingholidays Manufacturing sectorgrowthrate Enforcing contracts Cost ofelectricity(industrial) Construction sectorgrowthrate Broadband speed Table 3.2016Compared with2010;Areas ofLittleorNoProgress

(WEF) (with cablelandingstations)

$0.15/kWh $2 Bn 68 of183 $55 Bn 162 of183 132 of183 113 of139 3 22 days 13.10% 118 of183 17.50% 1Mbps 2010 Arangkada wouldnote others that

$0.16/kWh $2 Bn 93 of190 $43 Bn 164 of190 136 of190 112 of138 2 24 days 6.60% 136 of190 15.06% 4.2Mbps 2016 B. Tax Reform (P2) A. 8 (Point 1and2) Agenda Continue Macroeconomic Chapter 1:

Macroeconomic Policies (P1) Ten-Point Socio-Economic Agenda oftheDuterte Administration Ten-Point Socio-Economic Agenda oftheDuterte Administration 2 Arangkada Philippinesandthe Philippinesandthe

Page 1 Page 2 ahead ofMalaysia and Indonesiato bethird amongtheASEAN-6 (seeFigure 5). ratings by Fitch, Moody’s, andS&P allreached investment grade or1notch above by 2017 public andprivate sectors pay for foreign borrowings. From considerably below investment grade, the progressed upwards inrecent years to unprecedented levels. Suchratings affect theinterest rates both Philippines for Macroeconomic Environment/Stability rose very substantially from 76 overmanagement many years. This is especially trueinrecent years whenrating theWEF of the the Bangko(DOF) and Sentral Pilipinas Finance of Department The like. the and system, banking sound a reserves,foreign adequate inflation, keeping macroeconomic stable policies.Investors seek predictabilityof exchange andinterest rates, A. fiscal, including policies macroeconomic current maintain monetary andtrade policies. and Continue 1: Point Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Many investors viewsovereign credit ratings asasignofsoundmacroeconomic governance. Thesealso and continuing of priority high very the highlights Agenda Socioeconomic the of point first The Macroeconomic Policies (Point 1) Figure 6. Sovereign Credit Ratings, Philippines, Notches from Investment Grade, 1997 Grade, Investment from Notches Philippines, Ratings, Credit Sovereign 6. Figure Sources: S&P, Fitch, Moody's; As of of As Jan Moody's; Fitch, S&P, Sources: 133 (2009), 139 (2010), 143 (2011), 144 (2012), 148 (2013), 144 (2014), 140 (2015), 138 (2016) Source: WEF -5 -4 -3 -2 -1 0 1 2 3 4 5 120 100 Figure 5: MacroeconomicEnvironment/Stability, Rank, ASEAN Figure 6.Sovereign Credit Ratings, Philippines,Notches from Investment Grade, 1997-2017 Philippinesandthe 80 60 40 20 0 ; 2009-10 Total Total number of countries Figure 5.Macroeconomic Environment /Stability, Rank,ASEAN-6, 2009-2017 Moody's Fitch S&P 2010-11 evaluated: evaluated: 2017 2011-12 Moody's: BBB S&P: Fitch: ratings: Current have been well regarded for their excellence inmacroeconomic BBB Baa2 (1 notch above investment grade) investment above notch (1 Baa2 - (1 notch above investment grade) investment above notch (1 (investment grade) (investment 2012-13 2013-14 2014-15 - 6, 2009 6, - 2017 - 2017 2015-16 Vietnam Thailand Singapore Philippines Malaysia Indonesia 2016-17 th to 20 (see Figure 6). th , moving overseas remittances. steady depreciation since has helpedrestore thecurrency to abetter rate for exporters and inbound from 2000 to 2006. Atthe rate ofPhp40=US$ 1.00 in2012 the pesowas considered overvaluedand its and investor uncertainty. and guard against sudden capital whichflight, could rapidly weaken the peso and cause higher inflation months of imports to as long as eleven months. A high level is important to maintain investor confidence from 2009-2017. Source: Figure 8. Philippine Gross International Reserves and Import Cover, Import and monthly,2010 Reserves International Gross Philippine 8. Figure The peso/dollarexchangerate breachedlevel2017, thePhp50=US$1.00ina reached previously in US$ million Gross InternationalReserves (GIR) have increased impressively in recent years from sufficient for 3-4 Inflation has been held to acceptable levels since a high of 8.3% in 2008, averaging 3.3% per annum 100 10 20 30 40 50 60 70 80 90 0 BSP; Import cover is the number of months of average imports of goods and payment of services and income that can be be financ can that and income of payment services goodsand of imports monthsof average of the number is Import cover BSP; Source:Consensus PSA, 2016 Feb Mar Figure 8.PhilippineGross International andImportCover,Reserves Monthly, 2010-2017 Figure 7. Domestic inflation, 2006=100, 1995 2006=100, inflation, Domestic 7. Figure Jun 2010 10% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Sep Dec Mar Jun 2011 Sep Figure 7.Domestic Inflation, 2006=100,1995-2017f Dec Mar forecasts Jun 2012 Sep ; Core inflation excludes inflation Core ; Dec Mar Jun 2013 Ten-Point Socio-Economic Agenda oftheDuterte Administration Sep - 2017f Dec Mar f ood andenergy Jun 2014 Sep GIR, lhs GIR, Dec Mar - related related components of the CPI Jun 2015 - Sep 2017 Dec Import Cover Import Arangkada Philippinesandthe Mar Headline Jun 2016 Sep Dec Philippinesandthe ed Mar 2017 by reserves. Core Jun - 2.00 4.00 6.00 8.00 10.00 12.00 14.00

in number of months

Page 3 Page 4 7 improve theminhopesofsustainingandincreasing themomentumofeconomicgrowth: strategy isto continuethecurrent (i.e.Aquino) macroeconomic policies ofthePhilippinesandeven and thesteady growth oftheBPMandtourism sectors. infrastructure, reformssupport more that exports ofagricultural,manufactured goods, and minerals, rateDuterteof 7-8%duringthe Administration. achievableThis shouldbe increasedwith spendingon than doublethebudgetof Php 1.7 trillion in2010. The economic managers have targeted a growth sectors,increased and spending. Theproposed public is moreof Php3.8trillion budget 2018 national Filipinos, thefast-growingindustry,BPM rising domestic construction, manufacturing,and tourism (see Figure 10).The growthrate issupported by remittances from theoverseas diaspora often million years, which hasmoved inthe6-7% rangeand for severalyears hasbeenoneofthehighest inAsia Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Source: President Rodrigo Roa Duterte, State oftheNation Address (July25,2016) President Rodrigo Duterte put forth in his first SONA last July 25, 2016 that his macroeconomic his that 2016 25, July last SONA first his in forth put Duterte Rodrigo President Probably themostimpressive macroeconomic indicatorGDP growth istheannual rate inrecent and robust fiscal position.” economy that is much stronger, characterized by solid growth, low and stable inflation, dollar reserves, and better job creation the reduction. andpoverty endofmy By term, Ihopeandpray to hand over an more into growth high translate help can that policies monetary and fiscal prudent better…through “…My administration will continue andmaintain current macroeconomic policies, andeven do Philippinesandthe Source: BSP Source: Figure 9. PhP/USD Exchange rate, 1990 rate, Exchange PhP/USD 9. Figure 10 20 30 40 50 60 0 Sources:BSP; Respective -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% Figure 10.Real GDPYoY Growth Rates, Quarterly, ASEAN-6, 2014-2017 1Q-14 (monthlyaveragesto End 2016); - up 3.7% 2Q-14 Malaysia Thailand Figure 9.PhP/USDExchange Rate, 1990-2017f 7 3Q-14 nationalstatistics offices 3.6% 4Q-14 1Q-15 4.1% 2Q-15 of - period period consensus2017 of Aug forecasts 2017as for - 2017f 3Q-15 Vietnam Philippines 4.6% 4Q-15 1Q-16 6.4% 2Q-16 3Q-16 Singapore Indonesia 4Q-16 6.9% 1Q-17 2.7% 3.3% 5.1% 5.60% 6.40% 6.8% 7.6% 6.3% achieve muchhigher volumescan ofexports ofgoods. Philippines the potential, agribusiness high and resources, mineral significant its manufacturing, nine-fold from to US$26 billion US$211 billion (seeFigure. Withitslarge12) laborforce availablefor 2016 (seeFigurein 31 billion period, exportssame the During 11) . of goodsrival zoomed Vietnam 43 in2016, billion while exports of services have increased eightfold fromin 2004 US$4 billion to US$

TotalPhilippine exports ofgoods have increased by only 10%fromin 2004 to US$39billion US$ from thestructural weaknesses andother constraints oflineagencies. project design and preparation, procurement difficulties, and implementation of bottlenecks arising Recommendation 4:Improvefor budget utilization government national andaddress higher weaknesses in towards initiatives incoming the absorb investments ininfrastructure, socialservicesandinnovation. to space fiscal Improve Recommendation 3: This hasto besupported by aclearlong-term industrypolicy. Recommendation 2: credit rankings. Seekto maintainrelatively stableinflationandforeign exchange rates. RecommendationimprovedMaintain 1: macroeconomicbetterand management policy sovereign -30 -15 15 30 45 60 75 Source: 0 Figure 11. Export of Goods, Goods, of 11. Export Figure Figure 10. Total Philippine exports, Bn US$, 1990 US$, Bn exports, Philippine Total 10. Figure US$ Billion BSP (BOP); 2015 (BOP); BSP $100 $125 $150 $175 $200 $225 $25 $50 $75 Figure 12.ExportofGoods,PhilippinesandVietnam, US$Bn2004,2016 $- Vietnam Exports growth, rhs growth, Exports lhsGoods, lhs Services, - 2016 data - 2016 data The GPH should adopt policies toThe GPHshouldadopt GDP growththe double rate topercent. nine Figure 11.Total PhilippineExports,BnUS$,1990-2016 $26 based on BPM6 concept Philippines and Vietnam, US$ Bn US$ Vietnam, and Philippines Philippines 2004 $39 Ten-Point Socio-Economic Agenda oftheDuterte Administration Expon. (Vietnam) - Exponential (Vietnam) Exponential 2016 2004, 2016 2004, $211 2016 Linear (Philippines) Arangkada Philippinesandthe $43 Arangkada Publications PDP 2017-2022 Philippinesandthe -30% -20% -10% 0% 10% 20% 30% 40% 50%

Page 5 Page 6 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Thailand. to anaverage ofover $6.5billionayear. Nevertheless, lagsbehindIndonesia,Malaysia, itspill and

Since 2014,thePhilippineshasbroken outofitspastlow level ofFDIto move up600%from 2010 withmore diversifiedbillion shouldbeset, exports andnewmarkets. Recommendation 6:Exportsofgoods should growby year 15%a tototala attain target of US$100 those who live abroad. deliveryefficient microfinancemicro-insuranceof and forproductsincluding services Filipinos and the on focusing by initiatives inclusion financial of effectiveness Strengthen Recommendation 5: Figure 14. AnnualAverageFDI per Administration, in US$ Million, 1970 Source: UNCTAD, BSP UNCTAD, Source: US$ Million $6,000 $1,000 $2,000 $3,000 $4,000 $5,000 Philippinesandthe Sources: UNCTAD, World UNCTAD, Sources: $- -10 10 20 30 40 50 60 70 80 0 Figure 14.AnnualAverage FDIperAdministration, inUS$Million,1970-2016 (1970-1986) Marcos $117 Figure 13.Net FDI,BnUS$,ASEAN-6, 2000-2016 Bank, Bank, (1987-1992) C. Aquino C. Philippines Thailand Vietnam Malaysia Indonesia Singapore BSP (2016) BSP $644 (1993-1998) Ramos $1,468 $1,468 (1999-2000) Estrada $1,744 $1,744 - (2001-2010) 2015 Arroyo $1,541 $1,541 Arangkada Publications PDP 2017-2022 (2011-2016) B. Aquino B. $4,626 $4,626 11 10 9 8 .if thelatter agrees. members may goforward without theUS.The Philippines may alsoprioritize a bilateralFTA withtheUS Partnership, Trans-Pacific comprehensive ambitious, which covered 40%ofglobalGDP, the from which President join Trumpwithdrew The remainingUS. the 11 to apply to intention an stated Aquino Philippines andtheEuropeanUnion are morea negotiating advanced FTA.NovemberIn 2015,President agreement (FTA), theRCEP aimsto increase regionaltrade andmarket access among itsmembers. The 16 Asia Pacific nations including China and India (but not the United States). A traditional-style free trade 12 2016 period(seeFiguresand 14).From 13 only 1%oftotalASEAN investment in2010 the Philippines 2010 and 2016averaging(US$ 1.1 billion) (US$ 7.9billion) forUS$ 6.4billion thethree year 2014- received record high levels of foreign direct investment (FDI) in recent years, rising by 600% between

elected orappointed, from thecoverage oftheBankSecrecy Law. House-Pending withtheCommittee onGovernment Reorganization; Senate- PendingintheCommittee House-Pending withtheCommittee onAppropriations; Senate- PendingintheCommittee Senate- Notfiled Senate-Pending inCommittee The Philippines is a member oftheRegionalThe Philippinesisa Comprehensive Economic Partnership (RCEP) involving expand itsorganizations andtransactions coverage, includinggranting additionalpowers. Recommendation PursuetheAmendmentsto 13: theAnti-Money Laundering Act inorder to amendments oftheBSPcharter. Recommendationand improve 12:Expand theoperations of the Banko Sentralng Pilipinasthrough through theReal Property Valuation andAssessmentReform Act Recommendation 11:Institute reforms in realproperty valuationand assessment inthePhilippines validity ofappropriations to oneyear from thecurrent two years, etc. which include: a)shifttofrom cash-basedbudgeting thecurrent obligationbasis; b)reducing the RecommendationReform 10:PursuetheBudget in order Bill togood PFMpractices institutionalize successful businessmodelsinproduction processes. Recommendation Improve 9B: of goodsandservices quality by adoptingbestpractices and reforms. Recommendation 9A:Minimize the costof production anddelivery of goods and services through increase market intelligence. Recommendation 8:Intensify marketing andpromotion ofPhilippinegoods and services and regional andglobal integration. RecommendationPursue strategic7: tradebilateral,maximize opportunitiesin partnerships and Concomitant withhigher GDP growthand soundmacroeconomic the countryhas management, reduction ofimportandlicensingfees. supportedbe those proposing including streamlining the of export import proceduresand and Recommendation 16:Pursue legislative measurespromote will that andsupportthesector will personal property ascollateral. Recommendationa comprehensive15: Establish legalframework onlendingtransactions involving RA 6426 (Foreign Currency Deposit Act) Recommendation 14:Amendtheprovisions 1405 of RA (Lawon Secrecy Deposits) and ofBank House-Pending withtheCommittee onBanks andFinancialIntermediaries; RA10927 enacted on07/14/2017 House-Pending withthecommittee onBanks and FinancialIntermediaries; 11 to exempt government officials and employees, whetheremployees, and officials governmentexempt to Ten-Point Socio-Economic Agenda oftheDuterte Administration 12 9 8 Arangkada Philippinesandthe PDP 2017-2022 Philippinesandthe 10

Page 7 Page 8 15 14 13 fiscal of rationalization on incentives havebill consistently failed dueto unresolvedthe differences between the leaddepartments. pass to Efforts programs. health public for revenue additional the In 2012 RA 10351 reformed the ACT taxes, especially on cigarettes, and committed to use most of RA 9337 in 2005 increased the VAT rate to 12% and expanded itscoverage to petroleum andelectricity. income taxes were revised,were as excise taxescigarettes,alcohol, on tobacco and (ACT). Subsequently, of Finance: Package known asTax Reform for Acceleration andInclusion(TRAIN).According to theDepartment to inflation. A tax reform package willbesubmitted toCongress by September 2016. Point 2: Institute progressive tax reform and more effective tax collection indexing taxes B. Tax Reform (Point 2) long beenaforeign investment favored destination,faltered in2016withonly US$2.6billion. years ahead. However, Thailand, impacted by political instability, floods, and labor shortages,which has received(US$ 12.6billion) Vietnam and moretargeta 2016,setting in for Philippines to the reachthe in receivedtotal 8%ofthe 2016. Nevertheless,in regional competing economies Malaysia (US$ 13.5billion) Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe the maininitiatives ofhisadministration for the benefitofall.

The last comprehensiveThe last reform tax Philippines wasthe in 1997, whenin corporatepersonal and One ofthemajorreforms ofthecurrent administration istheComprehensive Tax Reform President Duterte mentioned in his first SONA that various reforms in the financial sector are one of the poorandthe middleclass.” (“Whatisthe Tax Reform Program?” DepartmentofFinance website) systems’ problems to become simpler, fairer We and more efficient. will lessen the overall tax burden of theresources neededto investinfrastructureour in people. Ourgoal andour isto correcttaxour the workforce.” generate thousandsjobs of eachyear —jobs thatare suitable for thepoor andless skilled members of income tax rates andrelax the BankSecrecy Law…We shall continueto attract investments that will corporateand Wepersonal creation.lower job will investmentand foster can that system tax efficient Recommendation 21: Trade Facilitation Agreement Recommendationthe Customs 20:Implement Modernization and Tariff Act (CMTA) andratify the regional free trade agreements. Negotiate newfree trade agreements withEurope andtheUS. Recommendation 19: more positive climate for investors, who prefer thatunpredictable risks are minimized. through debatethem inapredictablemaintaining andimplementation, fashion andstable creates a Recommendationpredictability18: Maintain andstability. Oncepolicies are wellestablished government. through more transparency, e-governance, and competitive bidding and enforcementlevelsall at of Recommendation 17: SONA ofPresident Rodrigo Duterte, July25,2016 House-Approved on05/31/2017; Senate-Pending intheCommittee House-Approved on05/31/2017; Senate-Pending intheCommittee “We are redesigning our tax system to be simpler, fairer, and more efficient for all, while also raising …y diitain il use a rfrs oad a ipe ad oe qial ad more and equitable more and simpler a towards reforms tax pursue will administration “…My Philippinesandthe 15 SupportutilizationoftheGeneralized System ofPreferences (GSP+) Take advantageof new trading opportunities under the various new Asian Reduce sectorcorruption in public revenue collectionandexpenditure 13 European Chamber of Commerce (ECCP) Arangkada Publications 14 income levels (seeFigure 15) . fiscal incentives, andamendotherprovisions oftheTax Code. sugary beverages was addedintheHouseto the administration proposal. secrecyof bank for fraud cases, and other provisions. A separateon thevolumeimposing a tax bill of reducing theestate anddonor’s taxes,contains provisionsalso it formarking, fuel e-receipts, relaxation professionals; broadening theVAT base;raising excise taxes on gasoline, diesel, and automobiles; and to commenceonJanuary1,2018. priorities inhissecondSONA, andSenate approval istargeted for September 2017,withimplementation passed theHouseMay 31,2017onHB 5636.President Duterte madeitoneofhistop legislative 1997 law. correct the “bracket creep” on employees that resulted from there being no provision for inflation in the chairmen oftheHouseandSenate WaysCommitteesMeans and proposalsstudies and eachmade to illustrations inthe succeeding pages) spend DOF SecretaryDominguezpresented will two relevantslides onhowspent be added fundswill the it stated has government the that funds year, first on education,health,irrigation, andtransportation. At the its in billion 100 Php least at raise to 16 the to submission for approved not was it but President, the of Office the to

The DOFhasillustrated howreformtax its programis progressive differenton impact will and forbills Subsequent considerationlater2018 and in reduce will corporate the rationalizeincome tax, and employees on tax income personal the lowering include bill first the of elements key The bill first The bills. separate five comprise to expected is reform tax comprehensive current The The Duterte Administrationcomprehensive reform tax intended isnot to berevenue neutralbut During theAquino Administration,proposed theDOFsenta Comprehensive TaxReform Package Figure 15. Percent Increase in Household Income after Tax after Income in Household Increase Percent 15. Figure The figures decile. for aboveThe each are averages figures income. household total on based households of 10% next the of consists decile succeeding Each Survey. Expenditure and Income Family 2015 preliminary on the based households of 10% poorest or decile first the to refers D1 Note: Source: % Change -8.00 -6.00 -4.00 -2.00 0.00 2.00 4.00 PSA and DOF staff estimates staff DOF and PSA Figure 15.Percent Increase inHouseholdIncome after Tax-Transfer Reform 2.60 1.20 0.90 0.90 . 1.20 Average household decile household Average 0.10 Ten-Point Socio-Economic Agenda oftheDuterte Administration 1.10 2.00 Sulong Pilipinasforum on August9, 2017, 2.50 - transfer Reform transfer 2.40 0.00 Arangkada Philippinesandthe - 0.20 th Congress. Thetwo - 5.00 Philippinesandthe - 5.80 (see

Page 9 Page 10 Source:DepartmentofFinanceSecretaryCarlosDominguezaspresentedintheSulongForum,2017. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Source: DepartmentofFinance Philippinesandthe Figure 16) a percent of GDP, therevenue collectioneffort has improved from 12.1% in 2010 to 13.7% in 2016. fulfilling many oftheinitiatives inthe10-pointsocio-economic agenda. protectionsocial and for other vulnerablepoor and the sectors. reform The tax programin is essential agenda for inclusive growthsuch asinitiatives towards spending oninfrastructure, humancapital, without corruption. and efficiently,fully,fairly, collected are (6) and programs, infrastructure social and physical needed support (5) creation, job and investment support (4) consumption, on taxation of burden significant a individualscorporationsand to workhard to produce income,to save,toand invest,impose (3) that Senate andthebicameral reconciliation process. concerns were ameliorated in the House version of the newlaw, while others may beresolved in the these of Some firms. beverage and automotive,ROHQ, BPM, on effectsnegativehave could that TRAIN A The JF Some Source:DepartmentofFinance ccording tofrom data collection hasbeenimprovingtax theBIR, steadily over fewthe past years. As C members support taxesC memberssupport are: that (1)moreprogressive regressive, than incentivize (2)that tax reform package is meant to provide a stable revenue stream to finance the government’s the finance to stream revenue stable a provide to meant is package reform tax concerns have been expressed by members of the JFC over proposed provisions in the first the in provisions proposed over JFC the of members by expressed been have concerns Ten-Point Socio-Economic Agenda oftheDuterte Administration

Arangkada Philippinesandthe Philippinesandthe (see

Page 11 Page 12 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe BIR the of reportperformance recent a illustratesinfo-graphicbelow The TRAIN. the implement efficiently

(seeFigure 17.BIRPerformance Report). Recommendation 7: reduce lossesfrom smuggling andtaxevasion. Recommendationtaxes 6:All duetogovernment thenational shouldbecollected fromtaxpayers; all Smugglers (RATS) programs by improving thepoorrate ofsuccessfulprosecution. Recommendation 5: Recommendation 4: raising resources to invest ininfrastructure through theTax Reform Package oftheDOF. while all forsimpler, efficient be fairer,moreto systemand tax the Recommendation 3:Redesign personnel especially outsideBIRoffices. Recommendation 2: estimate taxpayer liabilities. Recommendation 1: With the tax reformWith thetax initiative oftheDOF,should alsostep theBIR its performance up inorder to Philippines competitive inafieldofcountriescompetingfor thesamedirect investment funds. Recommendation 9: unnecessary orredundant. Recommendation8: Rationalize thegrantingincentivesof tax since many of them are known to be Source: Bureau of Internal of Bureau Source: Figure 16.Total Tax Collection Philippines,thein 2010

Amount (Million Pesos) Philippinesandthe 1,200,000.00 1,600,000.00 2,000,000.00 400,000.00 800,000.00 0.00 Figure 16.Total Tax CollectioninthePhilippines,2010-2017(Q1) 2010 BIR andBOCshouldimprove theRun after TaxEvaders (RATE) and RunAfter Maintain acompetitive fiscalincentives regime. Significantly reduce thetimeneededto pay taxes inthePhilippines. Enable moreEnable e-transactions to reduce interactionbetween taxpayers and BIR Increase computerization of relevanttodata and BOCtoBIR enable better There isaneed to reduce corporateto income tax alevelmakes that the Revenue 2011 2012 2013 Year - 2017(Q1) 2014 2015 of Commerce andIndustry (PCCI) G.I.A.N.T. S.T.E.P.S by PhilippineChamber European Chamber of Commerce (ECCP) Arangkada Publications 2016 2017(Q1) Figure 17.BIRPerformance Report Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 13 Page 14 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Philippinesandthe F. F. E. D. C. B. A. (Point 3) the EaseofDoingBusiness Increase Competitionand Chapter 2:

Business: CrimeandViolence Reducing Cost ofDoing Corruption Business: JudicialIssuesand Reduce Cost ofDoing Participation inthe Economy Liberalization of Foreign Competitiveness: Business: LaborIssues Reduce Cost ofDoing Business: Red Tape Reducing Cost ofDoing Increasing Competitiveness 31 29 27 25 22 17 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 15 Page 16 190 countriesin2017from 146 July 25,2016when hesaid: singled outred tapeastheirmostseriousconcern withavote of18.8%. in Introduction) regards landownership, inorder to attract foreign investment. to with except ownership, on foreign restrictions constitutional the of relaxation the pursue and Davao) (e.g. cities local to business attract to used models successful upon draw will effort This business. doing of ease the and competitiveness Increase 3: Point Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe considerable successintheimprovement oftheoverall ranking ofthePhilippinesmoving upto 99 ratingthe country’s intheEaseofDoingBusinessSurvey oftheWorld Bank.Itsefforts have seen competitiveness. the world’s mostcompetitive economies, which continually exert work to maintain andimprove their world.intoGetting higherthe ranks increasinglybecomes ranksthose because difficult are byoccupied Table 4).The NCC is working to move score thecountry’s upwards into thetop third percentile inthe Manila. where severalgovernment agenciesare expected to locateof thepolicyto aspart decongest Metro important tourist destinations. BCDA is developing anewcity called Clark Green City at Clark, Pampanga, several thousandlocators employing more than1.5 million Filipinos. The three former bases are also economic zones. PEZA zones, the former Clark,US militarybasesat John Hay, andSubic,have attracted from private firms to reduce paperwork infilingfor permits. to usePhilippineGovCloud andanewcommondatabasefor documentsrequired by thebureaucracy Department ofInformation andCommunications Technology (DICT) isencouraging thepublicsector existing administrative orders andlaws orremoval/repeal. for consolidation,amendment, Thenew includingforof theinternet, payments oftaxes andfees, andimplementingProject Repeal to review the numberofpermitsrequired, encouraging national andlocalgovernment unitsto maximizeuse workinvolved with governmentto agencies reduceburdenthe red of by tapeonbusinesses, reducing manyfactorsthe of the overallthat comprise Doing Businessranking. Easeof TheNCCcontinues to President Duterte spoke forcefully about this issue in his first State of the Nation Address (SONA) on The WEF 2016-2017 ratingof Problematic Factors in DoingBusinessthePhilippines(seeFigure 4 The NationalCompetitiveness Council (NCC) hasworked diligently inrecent years to raise clearances,Business permit, nofollow-ups.” …last thePresidenttodownthe of Officethe Local government. bind will governments.That licensesreduced shallbe tothe barest my(Davao),minimum. In is always it threecity days for local people lining upunderthe heatofthe sun…(or)…under the rain. Processing timeinissuingpermitsand In manyIn oftheglobalrankings tracked by theNCC thePhilippineshasimproved inrecent years of DoingBusinesssurveyThe Ease measuredoes not special and PEZA ease ofdoingbusinessin the “I amaddressingto the all of Cabinet members: Make the useof computer. wantdo not I to see Philippinesandthe placed Inefficient Government Bureaucracy as the highest concern of respondents, who th of183in2010.Still,asFigure 5shows, there isfar to goinimproving (see th of of speech onthe10-pointsocioeconomicagenda: the Duterte Administration.According to FinanceSecretary CarlosOctoberan in G.DominguezIII 2016 A. doing businessinthePhilippines. Philippine economy aswellas reducing redand unnecessary tape proceduresimpede the ease of that

Global Information Technology Report Technology Information Global Doing Business Report Business Doing Source: NCC Source: Index Performance Logistics Yearbook Competitiveness World Report Gap Gender Global Index States Fragile Index E-Government Index Innovation Global Report andTourism Travel Index Trade Enabling Global Report Competitiveness Global Index Perceptions Corruption Index Freedom Economic

Increasingcompetitiveness allowing and more topdoing businessisoneofthe ease in priorities of Sourcenumerous documentscontain recommendations to increase thecompetitiveness of the improve the easeofdoing business here into andturnourcountry amagnetfor investments….” government tohas given the sharpening top Philippines’s priority global competitiveness, precisely to industry. Recommendationthe comprehensive 7:Implement industrial strategy national upgrading aimed at Recommendation 6: of jobcreation andexports (products andservices)generated. RecommendationtargetedFDI should be 5: to exceedmeasuredbe FDI should 10 Bn. US$ terms in maintain andimprove thosehigh-rated strengths ithas incompetitiveness ratings. the Philippinesisweakesteffective andplan strategies to improve rankings.The Philippinesshould RecommendationThe government 4: private and sectorto shouldcontinue identifyareas where substantially prevent, restrict, orlessen competition. Recommendation 3:Review potentially anti-competitivemayand policiesthat legislation yearsin themediumtermThailand and interms ofrankingsin majorglobal competitiveness indices. Recommendation 2: the fastest, andfocus resources onimproving these. ranked) which areto mostimportant investors and where thePhilippinescanmove upthemostand The government andprivate sector should selectareas of competitiveness (whether low- or medium- Recommendationaggressive 1:The Philippines should continue efforts to improve itsrankings. Increasing Competitiveness “Alongside reducingthe incidencepoverty bypercentage nine points overthe next six years, the new Report 79/136 58/180 2017 Table 4.GlobalCompetitiveness ReportCard (2010-2017) Reduce theburden ofgovernment regulation ofthe private sector. The Philippines should equal or exceedThe Philippinesshouldequal nextthe in Vietnam Indonesiaand few ------101/168 77/139 99/190 71/160 54/178 71/193 74/128 57/138 70/178 42/60 7/144 2016 n/a - 103/189 76/143 48/178 83/141 47/140 76/178 74/141 95/168 41/60 7/145 2015 n/a n/a - 100/143 78/148 52/178 64/138 52/144 89/178 95/189 57/160 95/193 85/175 42/60 9/142 2014 n/a 108/189 86/144 59/178 59/148 97/177 90/142 94/177 82/140 38/60 5/136 2013 n/a n/a - Ten-Point Socio-Economic Agenda oftheDuterte Administration 107/179 138/185 105/176 86/142 56/177 65/144 95/141 72/132 52/155 88/191 43/59 8/135 2012 n/a 115/179 136/183 129/183 86/138 50/177 75/142 91/125 94/139 41/59 8/135 2011 n/a n/a - 148/183 134/178 *92/125 85/139 44/155 78/184 9/142 2010 n/a - - - - - 2010/11 to to 2010/11 CHANGE LATEST -27 28 57 49 17 33 15 28 -1 9 2 4 7 International Institute for Management Management for Institute International Arangkada Philippinesandthe International Finance Corporation Finance International Transparency International Transparency World Intellectual Property Property Intellectual World World Economic Forum Economic World Forum Economic World Forum Economic World Forum Economic World Forum Economic World PDP 2017-2022 Arangkada Publications Heritage Foundation Heritage Fund for Peace for Fund United Nations United Development Organization World Bank World SOURCE Philippinesandthe Top 1/3Top 118 60 47 48 46 46 47 20 47 63 64 58 53

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and Committee onFinance House: Approved by the Committee on Appropriations; Senate: pending in Committee on Justice and Human Rights mandating Free Wi-Fi. for internet accessibility. There shouldbefreeplaces bypublic Wi-Fi access in all a law implementing Recommendation 16:Provide information andcommunicationstechnology (ICT) infrastructure Recommendation 15: e-commerce. productsservices; andintangible and developing thepotentialof tradethe Philippines in digital and including healthandeducationservices; promoting creative industries that cover both tangible chain oftheIT-BPMindustry andincreasing market thecountry’s share ininternationaltourism, Recommendation 14:Focus attention onboostingservices exports by movingthe global up value assessing policyoptions(regulatory orotherwise)thatwilldeliver thegreatest netbenefit. improveof regulations thequality through arigorous, evidence-based process in identifying and Recommendationregulatory 13:Institutionalize assessments impact within government to System. programs for relevantgovernment bodies; and (h)thePhilippineBusinessRegulatory Information process;consultation competency apublic development (g) regulatory system; management (f) regulatoryreviewand making process; (d)regulatory frameworkquality priority industry;(e)a per regulatorynational policy; (b)anappropriateinfrastructure institutional to manageregulations; (c) an overarchingRegulatory National Architecture withthefollowing components: (a) acomprehensive Recommendation 12:Modernize government regulatory processes. This can bedone by developing and regulations. bodycreatedbe will to ensurethere that evidence-based isan approach to formulatinglaws, rules, systemmanagement tomorea establish competitive andcoherentregulatory environment.centralA Recommendation 11:Thegovernment shouldpushforlaw thepassageofa on regulatory standardization, metrology, testing analysis, certification,andaccreditation. qualitymanagement, RecommendationInfrastructureQuality National a up Set 10: system to integratecoordinate and transaction costs. Registry and theBusiness Permit Licensing System, whichfacilitate will start-upsandhelpreduce and exit, paying taxes, and access to finance, including full implementation of the Philippine Business Recommendationregulations 9:Simplifytherulesand on businessregistration licensing, entry and services markets; promoting goodregulatory practices andsoundcompetitionpolicy. RecommendationImprove 8: competitivenessthe services ensuring opennessof ofindustryand litigation. Commission, fraud,penalize graftprovidecorruption, and and mechanismsto avoid protracted enterprise, protect minority investors, improve visitorial powers of theSecurities and Exchange Recommendation 19:AmendtheCorporation Code to address the bottlenecksan instarting to Act System Identification National Unified harmonize IDsystems and reduce red tape in collatingofbasicdocuments. the implement and Pass Recommendation 18: Tape Act (ARTA). Recommendation 17:Strictlyanti-corruption laws implement andprovisions under the Anti-Red House: Pending withthe Committee on Trade andIndustry; Senate: Pending Second Reading Senate: Approved onThird reading; House: inPWG of Committee on Trade Philippinesandthe 18 16 Sustainexisting transparency initiatives. 17 PDP 2017-2022 22 21 20 19 South Korea South

Bangladesh Note: A study by by study A Note: Source: JETRO Hong Kong Philippines Figure 18. AverageWage Increase Rates (%),Select AsianCountries, 2015 Singapore Cambodia Indonesia Sri Lanka Myanmar Malaysia Regulation; Senate: Pending intheCommittee House: Pending and Professional withthe Committee onCivilService Senate: Pending intheCommittee House: Pending and Professional withthe Committee onCivilService Regulation since2017-05-03 President Duterte alsoincluded itamonghisprioritiesinJuly2017SONA. Note: H.B.No.5707theRightsizing theNational Government Acthasbeenpassedonthird reading by theHouse. House: Pending withtheCommittee onPublicInformation; Senate: PendingSecond Reading national competitiveness. NWHs from amongthefive for heroes -shouldbechangedto working holidays to improve Recommendation25: employment creation. competitivenesssector should beanimportantpublic priority because of its closerelationship to Recommendation 24: and Employees” to promote shared publicvalues incivil servants. Officials Public forStandards Ethical and Conduct of “Code 6713 RA RecommendationAmend 23: ineffectiveness). servicepublic (such as graft andcorruption, red tape, violationsof employee rights, andorganizational Recommendation 22:Pass theCivil Service Code to address deeply-rooted problems besettingthe Delivery. Recommendation 21:Pass anAct RightsizingGovernment the National to ImproveService Public Recommendation 20: Pakistan Thailand Vietnam Taiwan China Laos India 0.0 20 Arangkada Arangkada Figure 18.Average Wage Increase Rates (%) 21 for for these 2.0 Pass theFreedom ofInformation Bill. same same countries for 2013 Reduce non-workingof number the holidays possible– (NWHs)some Createculture anational ofFilipinocompetitiveness. Improving cost 2.8 3.0 3.3 3.7 4.0 4.2 - 2014 2014 showed the % Philippine increase also was 5.2%. 4.6 Ten-Point Socio-Economic Agenda oftheDuterte Administration 5.2 5.6 6.0 5.9 , SelectAsianCountries, 2015-2017 6.8 19 - 2017 22 8.0 8.8 Arangkada Philippinesandthe 8.9 Arangkada Publications PDP 2017-2022 9.5 9.5 10.0 9.9 9.9 Philippinesandthe 10.5 12.0

Page 19 Page 20 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

WTO Agreement onProcurement. Recommendation 33: international bestpractice. government procurement laws, regulations,and practices, bringingtheminto conformity with Recommendation 32: Seek to reduce and remove discrimination against foreign firms in Philippine continue inthenationalinterest andrecommend revoking thosethatare not. which determine to FINL the in restrictions all Reviewinvestors. foreign for field playing the level Recommendation 31: laws to make reforms permanent. Recommendation 30:Useexecutive orders to introduce reforms quickly.Follow-up needed with as Recommendation 29: Prioritize “low hangingfruit”legislation. Recommendation 28:Passrapidly legislation especially for business and economic reforms. revenue, andcreate jobs,inorder to accelerate economicgrowth. Recommendationimprovethat 27:Prioritize bills competitiveness, increase investmentand congressional leaders. Recommendation 26:Thepresident shouldholdregularLEDAC meetingsofexecutive and rally bothgovernment andprivate sector to drive growth andcompetitiveness Recommendation 35: create aninventory oflaws andregulations accessibleontheInternet. Recommendation 34: Philippinesandthe Pass more investment climate reform billsin17 The Philippines should become an observeran The Philippinesshouldbecome eventually and the member of a Develop acomprehensive Philippine LegalCode and Code of Regulationsto Table 5.NumberofHolidays, SelectCountries, 2017 Identify bestcompetitive advantages versus other countries in ASEAN and Seek to make theForeign Investment Negative list(FINL) more positive; CAMBODIA PHILIPPINES CHINA THAILAND TAIWAN JAPAN INDONESIA SOUTH KOREA VIETNAM MALAYSIA SINGAPORE UNITED STATES Country

Holidays Number of 40 24 18 18 18 17 16 16 15 14 12 9 Rank 12 11 8 8 8 7 5 5 4 3 2 1 th Congress Sulong Pilipinas Arangkada Publications (see Table 6). 49 48 47 46 45 44 43 42 41 40 39 38 66 37 36 63 65 64 35 62 34 61 33 60 32 59 31 58 30 20 57 14 29 19 56 13 28 18 70 55 12 27 24 17 54 69 11 26 23 72 51 16 68 53 10 25 22 21 15 71 67 52 50 9 8 7 6 5 4 3 2 1 Philippine Airports Authority Airports Philippine Payments Systems Act Open Access Policy (Telecommunications) Omnibus Investments Code amendments Ombudsman Expansion of Powers of Expansion Ombudsman NTC Reorganization NTC NIA Charter Free Irrigation Act Irrigation amendments Free Charter NIA New Central Act Bank amendments National Transportation Safety Agency National National Transport Act, to Address Transport Traffic Crisis Traffic Transport Act, to Address Transport National National Quality Infrastructure National LandUse Act National Disaster Risk Reduction andManagement Authority Social SecuritySocial Act Amendments Telecomunications Act Reforms Act Forest Management Sustainable Maritime Transport Independent Regulatory Body Regulatory Independent Transport Maritime SecuredTransactions Act LGU Share in National Wealth Direct Taxes, Remittance Road Board Abolition Board Road LandAdministration Reform Act Rightsizing Government the of National Immigration Act amendments Retail Act Trade Amendments Holiday Rationalization Act Rationalization Holiday Regulatory Management System Act Government Procurement Reform Act amendments Real PropertyReal and Valuation Assessment Reform Act Freedomof Information Cybercrime Prevention Act amendments Railway Independent Regulatory Board Commonwealth Act Law) (Flag 138 amendment Forest Limits Delineation Limits Forest Criminology Profession Regulation Act amendments Radiology Profession Regulation Act Regulation Profession Radiology Commission on Audit Charter amendments Foreign Investment ActForeign amendments Investment CorporationCode Amendments Public Service ActPublic amendments Water Sector Reform Act Codifying of the Philippine Criminal Laws Criminal Philippine the of Codifying Foreign equity restriction in the amendments Constitution Ease of Doing Business Act/Fast Business Permit Act Witness Protection Act Strengthening Construction/Procurement by Foreign Firms amendments Universal Health Care Act Care (Enhanced) Health Universal Agency Act Space Philippine CoconutUtilization Fund Levy Extractive Industry Transparency Initiative TrainingDual System Act amendments of 1994 Program Reform Tax Comprehensive Whistleblower Protection Strengthening Whistleblower UnifiedNational Identification System Act Framework Qualifications Philippine Act Innovation Philippine PLA - President's Legislative Agenda JFC-PBG - Joint Foreign Chambers-Philippine Business Groups CLA - Common Legislative Agenda of Congress andPresident Legend: Water andSanitation Supply Regulator Transport Safety andSecurity (Independent Body) Act Modernization and Reorganization Police National Philippine amendments Act 8175 orRA Corporation Insurance Crop Philippine Energy Efficiency Act Urban Development and Department Housing of Significance Projects National Projects of as Energy Declaring Law Enabling Agreement on the Bangsamoro Comprehensive Civil Service Code amendmentsCivil CAAP Law amendments Build-Operate-Transfer Law amendments BudgetReform Act Bank SecrecyBank Law amendments ScientistBalik Act amendments Apprenticeship Program Reform Program Apprenticeship Agricultural Tariffication Act amendments Agricultural Free Patent Reform Act Patent Free Reform Agricultural Table 6.Legislative Businessand Economic Reform Measures, 17 Table 6: Legislative Business and Economic Reform Measures, 17th Congress Economic and Business 6: Legislative Table BILL Ten-Point Socio-Economic Agenda oftheDuterte Administration CLA X X X X X X X X X X X X X X X X X X X X JFC-PBG X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X th Arangkada Philippinesandthe Congress PLA X X X X X X X X X Philippinesandthe PDP X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

Page 21 Page 22 among theASEAN-6 (seeFigure 19). business ranking showsdespite that itsimprovements, thePhilippinescontinues to beoneofthelowest employment creation. competitiveness shouldbeanimportantpublicsector prioritybecauseofitscloserelationship to behavioral reforms thatwillenablethePhilippinesto becomemore competitive. Improving cost make citizensmore aware ofthecompetitive environment inwhich thenationexists, callingfor investors, more sowithglobalization andinlight ofASEAN integration. Leadershipshould B. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Although therankingof thePhilippineshasimproved few inthepast years, the latest EaseofDoing CompetitivearePhilippines the in costs business very toimportant foreigndomestic and both Reducing Cost ofDoingBusiness:Red Tape Philippinesandthe 49 49 48 48 47 47 46 45 46 45 44 44 43 43 42 42 41 41 40 40 66 66 39 38 39 38 65 64 63 65 64 63 37 36 37 36 62 62 35 35 61 34 61 34 60 33 60 33 59 32 59 32 58 31 58 31 57 30 20 57 30 20 14 14 56 29 19 56 29 19 13 13 70 55 28 18 70 55 28 18 12 12 69 54 27 24 17 69 54 27 24 17 11 11 72 68 53 51 26 23 16 72 68 53 51 26 23 16 10 10 71 67 52 50 25 22 21 15 71 67 52 50 25 22 21 15 9 8 7 6 5 4 3 2 1 9 8 7 6 5 4 3 2 1 Source: World Bank; World Source: Philippine Airports Authority Airports Philippine Authority Airports Philippine Payments Systems Act Payments Systems Act Open Access Policy (Telecommunications) Omnibus Investments Code amendments Open Access Policy (Telecommunications) Omnibus Investments Code amendments Ombudsman Expansion of Powers of Expansion Ombudsman Powers of Expansion Ombudsman NTC Reorganization NTC Reorganization NTC NIA Charter Free Irrigation Act Irrigation amendments Free Charter NIA Act Irrigation amendments Free Charter NIA New Central Act Bank amendments New Central Act Bank amendments National Transportation Safety Agency National Transportation Safety Agency National National Transport Act, to Address Transport Traffic Crisis Traffic Transport Act, to Address Transport National National Quality Infrastructure Crisis Traffic Transport Act, to Address Transport National National Quality Infrastructure Telecomunications Act Reforms Act Forest Management Sustainable SecuritySocial Act Amendments Telecomunications Act Reforms Act Forest Management Sustainable SecuritySocial Act Amendments National LandUse Act National Disaster Risk Reduction andManagement Authority National LandUse Act National Disaster Risk Reduction andManagement Authority SecuredTransactions Act SecuredTransactions Act Body Regulatory Independent Transport Maritime Body Regulatory Independent Transport Maritime Road Board Abolition Board Road LGU Share in National Wealth Direct Taxes, Remittance Abolition Board Road LGU Share in National Wealth Direct Taxes, Remittance Rightsizing Government the of National LandAdministration Reform Act Rightsizing Government the of National LandAdministration Reform Act Retail Act Trade Amendments Immigration Act amendments Retail Act Trade Amendments Immigration Act amendments Regulatory Management System Act Act Rationalization Holiday Regulatory Management System Act Act Rationalization Holiday Real PropertyReal and Valuation Assessment Reform Act Government Procurement Reform Act amendments PropertyReal and Valuation Assessment Reform Act Government Procurement Reform Act amendments Railway Independent Regulatory Board Freedomof Information Cybercrime Prevention Act amendments Railway Independent Regulatory Board Freedomof Information Cybercrime Prevention Act amendments Commonwealth Act Law) (Flag 138 amendment Commonwealth Act Law) (Flag 138 amendment Radiology Profession Regulation Act Regulation Profession Radiology Delineation Limits Forest Criminology Profession Regulation Act amendments Act Regulation Profession Radiology Delineation Limits Forest Criminology Profession Regulation Act amendments Commission on Audit Charter amendments Commission on Audit Charter amendments Water Sector Reform Act Service ActPublic amendments ActForeign amendments Investment CorporationCode Amendments Water Sector Reform Act Service ActPublic amendments ActForeign amendments Investment CorporationCode Amendments Codifying of the Philippine Criminal Laws Criminal Philippine the of Codifying Codifying of the Philippine Criminal Laws Criminal Philippine the of Codifying Witness Protection Act Strengthening Act Care (Enhanced) Health Universal Agency Act Space Philippine Foreign equity restriction in the amendments Constitution Ease of Doing Business Act/Fast Business Permit Act Construction/Procurement by Foreign Firms amendments Witness Protection Act Strengthening Act Care (Enhanced) Health Universal Agency Act Space Philippine Foreign equity restriction in the amendments Constitution Ease of Doing Business Act/Fast Business Permit Act Construction/Procurement by Foreign Firms amendments CoconutUtilization Fund Levy CoconutUtilization Fund Levy Whistleblower Protection Strengthening Whistleblower UnifiedNational Identification System Act Framework Qualifications Philippine Act Innovation Philippine Extractive Industry Transparency Initiative TrainingDual System Act amendments of 1994 Program Reform Tax Comprehensive Protection Strengthening Whistleblower UnifiedNational Identification System Act Framework Qualifications Philippine Act Innovation Philippine Extractive Industry Transparency Initiative TrainingDual System Act amendments of 1994 Program Reform Tax Comprehensive Water andSanitation Supply Regulator Transport Safety andSecurity (Independent Body) Act Modernization and Reorganization Police National Philippine amendments Act 8175 orRA Corporation Insurance Crop Philippine Energy Efficiency Act Urban Development and Department Housing of Significance Projects National Projects of as Energy Declaring Law Enabling Agreement on the Bangsamoro Comprehensive PLA - President's Legislative Agenda JFC-PBG - Joint Foreign Chambers-Philippine Business Groups CLA - Common Legislative Agenda of Congress and President Legend: Water andSanitation Supply Regulator Transport Safety andSecurity (Independent Body) Act Modernization and Reorganization Police National Philippine amendments Act 8175 orRA Corporation Insurance Crop Philippine Energy Efficiency Act Urban Development and Department Housing of Significance Projects National Projects of as Energy Declaring PLA - President's Legislative Agenda JFC-PBG - Joint Foreign Chambers-Philippine Business Groups Law CLA - Common Legislative Enabling Agreement on the Bangsamoro AgendaComprehensive of Congress andPresident Legend: Civil Service Code amendmentsCivil CAAP Law amendments Build-Operate-Transfer Law amendments BudgetReform Act SecrecyBank Law amendments ScientistBalik Act amendments Reform Program Apprenticeship Agricultural Tariffication Act amendments Act Patent Free Reform Agricultural Civil Service Code amendmentsCivil CAAP Law amendments Build-Operate-Transfer Law amendments BudgetReform Act SecrecyBank Law amendments ScientistBalik Act amendments Reform Program Apprenticeship Agricultural Tariffication Act amendments Act Patent Free Reform Agricultural Figure 19. Ease of doing business, percentile rankings, ASEAN rankings, percentile 19. business, of Ease doing Figure 100 10 20 30 40 50 60 70 80 90 0 Figure 19.Ease ofDoingBusiness,Percentile Rankings,ASEAN-6, 2007-2017 Singapore 2007 2008 r ankings based on new methodology from 2014 methodology from new on based ankings Table 6: Legislative Business and Economic Reform Measures, 17th Congress Economic and Business 6: Legislative Table Reform Measures, 17th Congress Economic and Business 6: Legislative Table Thailand 2009 BILL BILL 2010 Malaysia 2011 2012 Vietnam 2013 onwards 2014 CLA CLA X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Indonesia 2015 JFC-PBG JFC-PBG - 6, 2007 6, X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 2016 - 2017 PLA PLA X X X X X X X X X X X X X X X X X X Philippines 2017 PDP PDP X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 24 23 of governmentto agenciesand make surereceivewill people that services theredwithout quality tape: study by an economic reform project identified over 7,000 import requirements by GPH bureaucracies.) annually by improving trade facilitationespecially bypaperless adopting procedures. (Note: A2016 (UNESCAP) reportedfor that 2017 reportedthe region that couldreduce costsandsave $219 billion as well asbusinessmen.Ittakes atleast16procedures to startabusinessinthePhilippines. compared to theASEAN-6 whichgood signasitaffects isnota competitiveness and discourages investors business processes as well.The Philippines hasthehighest numberofprocedures instartingabusiness inconvenientcurbing in importantlymore infrastructurebut incentivesand financial on focusonly not

Development PlanofNEDA. The Apprenticeship Billiscurrently filed inbothhousesandincludedthelegislative agendaofthePhilippine the committee level. the Senate andisundergoing deliberations at the House of Representatives on In PresidentIn Duterte’s secondSONA, hementionedtheneedto prioritize streamliningof theservices The Asian Development Bank and the UN Economic and Social Commission for Asia and the Pacific the and Asia for Commission Social and Economic UN the and DevelopmentBank Asian The The reductionof red needs to tape heavilybe improved. Reforms to attractforeign investors must I expect speedyreforms alongthis line.”tape. red bureaucratic the by delays the minus deserve surely they that services quality the receive respective services to make these truly efficient and people-friendly. We want to ensure that our people agencies [with] frontline services to ourpeople, from womb to tomb, to further streamline their of allmajorportsinthecountry. 40 governmentagencies involved inlicenses,clearances, andpermitsfor import/export processing Recommendation 5:ImplementtheBOC’sNationalSingle Window Program interconnecting over Recommendation 4: Recommendation 3: windows ofcorruption. reducingand bottleneckstotitling land in improve easeand eliminatecost ofdoingbusinessand the Recommendation 2: should beprioritized. Recommendationcompetition inservices, 1:Enhancing especially telecommunicationspower, and Competitiveness Council(NCC) Recommendation of 7:ContinueProject theimplementation Repeal, aninitiative by theNational documentation amongtheASEAN-6 economies. Recommendation 6: The ExpandedAnti-Red Tape Act of 2017hasbeenpassedonsecond reading at “The people’spatience iswearingthin, am reiteratingso ismine.I my directive to all government 23 Increase theprovision ofgovernment servicesthrough e-governance. Pass andimplement theExpandedAnti-Red Tape Act of2017. Implement the ASEANImplement SingleWindow to facilitate movement oftrade-related Automation andstreamliningof business permitting andlicensingsystems . Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Arangkada Publications Sulong Pilipinas PDP 2017-2022 Philippinesandthe 24

Page 23 Page 24 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Philippinesandthe Box 1.Project Repeal economies whose wages are rising faster. Giventhe Philippines has ayoung that and relatively population keepsthat it competitive withseveralregional economies and makes it more competitive withother business intheWEFsurvey (seeFigure 4). doing for factor problematic a as respondents of 5.6% by identified were regulations Restrictive labor the overseasWithout market, unemployment andunderemployment rates would bestaggeringly high. created. As the economy does not create enough jobs, many goabroad while others remain unemployed. Disruptive technologies areto anewchallenge theeconomy even when more highjobs are quality C. In recentIn years,wage minimum in thePhilippineshas remained lowand isincreasing ratea at The Philippine economy does not create sufficient high quality jobs for its growing young population. Reduce Cost ofDoingBusiness:LaborIssues Box 1.Continued... Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 25 Page 26 25 and theregulatory measures thatsurround it. ASEAN countries also have low wages hence there needs to bemore effort indeveloping thelaborforce lower wages, thismay servetool asa to attractforeign investors to goto thePhilippines.However, other Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

scheduled hearings. (see Figure 18). Recommendation6: days. Recommendation 3:Pass a law to rationalize holidays to approach theASEAN average of 15 paid abroad. reduce unemployment andunderemployment andto give Filipinos more alternatives to working Recommendation 2: clause ofwages andbenefits,maintainingcompetitive rulesonlaborcontracting. easier to dismiss employees for sound businessreasons andpoor performance, non-diminution forregionalPhilippines with the competitors. Areas forit include: making possibleamendment Recommendation 1:Modernize the 43-year oldLaborCode to endthedisadvantageit hascreated including LocalGovernment Units(LGUs). RecommendationImprove10: ease ofdoingbusiness through convergencethe ofdifferentagencies, communications andcooperation between laborandmanagement. Recommendationthe low 9:Maintain level disruption oflabor business operations through good investment. Give Filipinosbetter choicesofworking athomerather thanoverseas. Recommendation 8:Create millionsof new jobs,many of higher quality, through increased Recommendation 7: Recommendation 5: of non-working holidays. Recommendation 4: This billisinsecond reading intheSenate. TheHouseCommittee hasnot Source: Figure 20. Daily Minimum Wages, Select Asian Countries, June2017 US$, Countries, AsianWages, Select Minimum 20. Daily Figure $10 $20 $30 $40 $50 $60 $- Philippinesandthe DOLE $5 - NWPC Figure 20.DailyMinimumWages, SelectAsianCountries, US$,June2017 $5 EnacttheApprenticeship law amendments. Make wage increases consistent withinflationandproductivity. Reduce the burden of high holiday payrollexpenses by reducing the number Job creation by privatethe sector shouldreceive extremelyhigh priority to Maintainminimumwage competitivenessto morebe regionallycompetitive $3 $7

$9 $5 $30 25

$33 Sulong Pilipinas Arangkada Publications $45 $48 ranking to have thelowest score amongtheASEAN-6 onthebusinessimpactofrules onFDIin the mostrecent WEF combined are considered more restrictive thanother economiesintheregion. ThePhilippinescontinued to more foreign participation. Despite thesereforms, therestrictions intheConstitution andremaining laws financial sectors, reforms to the banking, rural banking, and other relevant laws have opened these (2) allowing upto 100%foreign equity inthePAGCORactivities . Inthebanking, insurance, and two decades:(1)allowing foreign investment inretail trade above aUS$2.5millionminimumcapitaland restrictions onforeign equity. (MAP), andtheFoundation for Economic Freedom (FEF) have recommended removing the constitutional enterprises previously limited to 40%foreign equitywere openedto 100%asaresult ofthislaw. be includedinaForeign Investment Negative List (FINL) published every two years. Most domestic liberalized suchinvestmentrequiredand legal,constitutional, all administrativeand restrictions to services, it hasrestricted foreign ownership ofdomestic businesses. A majorreform in1991 (RA 8179) Preferences (GSP). lowor zero rates, aswellzeroas at to duty under theWTOthe EU theUSand Generalized System of ASEANthose countriesand Philippine exports orthePhilippines.Most entersimilar thosecountriesat Korea, andNewZealand)enter at rates below WTO MFN in accordance withadditionalFTAs between which islimitedsystem.quota under a fromImports other countries(Australia, Japan, China, India, countries haveto beenable enterzero thePhilippinesat the exception tariffsince2010, with ofrice, Senate approved joiningtheWTO in1995. Under the ASEAN Free Trade Area (AFTA), goods from ASEAN rapidglobalization during recent whichdecades in participated.Philippines has the ThePhilippine D.

Prominentbusiness advocacy organizationsPhilippines Association ofthe Management the as such The 10 While thePhilippineeconomy haslongwelcomed foreign investment for export of goods and The freer movement of goods, services, people, technology,capital, and information are results of Competitiveness: Liberalization of Foreign Participation in the Economy (see Figure 21) th FINL was FINL in May issued Only 2015. two majorreforms havetomade been the FINLinnearly 133 (2009), 139 (2010), 143 (2011), 144 (2012), 148 (2013), 144 (2014), 140 (2015), 138 (2016) Source: WEF 120 100 80 60 40 20 0 2009-10 Figure 21.BusinessImpactofRulesFDI,Rank,ASEAN-6, 2009-17 ; Total number of countries of numberTotal . 2010-11 evaluated: evaluated: 2011-12 2012-13 Ten-Point Socio-Economic Agenda oftheDuterte Administration 2013-14 2014-15 Vietnam Thailand Singapore Philippines Malaysia Indonesia 2015-16 Arangkada Philippinesandthe 2016-17 Philippinesandthe

Page 27 Page 28 improve qualityofservices: 28 27 26 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

FEF elaborates on theneed for foreign investors in thePhilippinemarket to expand choices and better andmore delivery service choices.” provide to expected are competition andbreak monopolies investments ofexistingmarket giantsandincrease consumer welfare through Foreign scenario. win-win a is capitalization high require and technicalhighly are that industries strategic in investmentsforeign of Moreover, all. entry benefit will more freedom in investments and flow of factors of production will lead to more economic thatactivity of programs that cater to the changing needsandchallenges ofmarket fluctuations.” down principles and general guidelines, economic policy must be more specific, changeable, and consist policies into itsprovisions. WhileaConstitution embodies the fundamental law of the land and lays MAP believes therestrictions hampereconomicgrowth: enterprises. investments withtheForeign Investment Act andlower capitalrequirements for foreign Recommendation 11: government in participating firms foreign construction andprocurement of contracts. restrictions legal Remove Recommendation 7: retail enterprises onthesamebasisasotherdomesticenterprises inRA8179. Recommendation6: Pass the RetailTrade Act amendments to allow foreign investment indomestic their removal. after restrictions, successor minimal or zero consider field, playinglevel To a achieveConstitution. Recommendation 5:Supportefforts to remove foreign equityrestrictions from thePhilippine more FDI. Recommendation 4: Recommendation 3: Recommendation 2: existing policies,statutes, andregulations, andeventually repeal unnecessaryissuances. passage of the Ease of Doing Business Actthe intentionsustain will of Project Repeal to review Recommendation 1:Enhancemarket competitionthrough improving easeofdoingbusiness.The (criminology andx-ray technology) andremove reciprocity provisions on others. Recommendationthe practice 10:Open of professions nowclosed by lawto foreign nationals arrangements isallowed. condominiums, industrialestates, tourism estates, retirementand similar realvillages, estate Recommendation 9: as securityagencies,manningspas,manufacturing offireworks, andthelike. Recommendation 8:Remove other restrictions on foreign investment indomestic enterprises, such House: Pending withtheCommittee on Trade andIndustry; Senate: Notfiled Quoted from FEF’s 2014press release Quoted from apositionpaper ofMAP “It is the firm belief of the Foundation that opening up the economy to foreign investors and allowing “If there is an inherent flaw in the 1987 Philippine Constitution, it is in the integration of economicintegrationtheof in is Constitution,it Philippine 1987 the in flaw inherentan thereis “If Philippinesandthe Allow newplayers inthetelecommunications industry. AmendthePublicServiceAct (PSA) by definingpublicutilities. Relax restrictive foreignownership provisionstoConstitution of the attract Pass a law to make explicitforeign that ownership of land inhorizontal AmendtheRetail Trade Liberalization Act to alignguidelinesfor foreign 27 Arangkada Publications Sulong Pilipinas PDP 2017-2022 28

26

Thailand, andVietnam. improved from134 infrastructure. IntheTransparency InternationalCorruption Perceptionannual Indexthe Philippines poor and tape red below slightly be to assessment WEF the in place third to first from down moved it computerization ofdecisions,courtrecords andcontinuoustrials. reforms haveintroducedbeen Lourdesleadershipof ChiefJusticeMaria underthe Sereno,including years to have acasedecided and, asnewcases come every year, caseloads have piledup.Major particular countryandcomprisesofwhat makes acountrycompetitive. moreobtaining funding.These are factors which investors very much consider before they invest ina systemthe judicial administers it faceusing modern technology,such ascasebacklog, majorchallenges identified corruption (16.9%), policy instability (7%), and crime and theft (3%). The Supreme Court and security problemsthe Philippines.Accordingafflict that toratings theWEF implementation shouldbecontinuously intensified. important to attract andto keep investors. Reforms intheadministration ofjusticeare ongoing,buttheir E. Reduce Cost ofDoingBusiness:JudicialIssuesandCorruption Source: Transparency International; Number countries: of 2001=91; 2005=158; 2010=178; 2012=176; 2014=175; 2016=176

Rank 110 134 116 134 143 13 17 39 56 33 78 78 87 Corruption has longbeenamajorconcern for doing business in thecountry. Only inrecent years has Clogged courts have long beenanissue in thePhilippinejudiciary system. Itoften takes numerous Some oftheproblematic factors competitivenessin theWEF rankingpertained to and thejudicial competitivea building In environment,business arepolicies anti-corruption and judicial very allegations of corruption against public officials. The should reduce its backlog of cases andincrease itconviction rate. backlog its reduce should Sandiganbayan The officials. public against corruption of allegations Recommendationshould 4:The improveOmbudsman to itscapability investigate andprosecute largely to casesinvolving nationalissues. Recommendation 3:Reduce thecaseloadof Supreme Courtbyof cases acceptance limiting civil disputes outsideofcourts,which shouldreduce thebacklogofcasesandhasten justice. Recommendation 2:Make greater use of alternative dispute resolution andarbitration to resolve judges to reduce thecasebacklogmore. Steadily raise thebudgetfor thejudicialbranch. Recommendation 1:Continue to increasesalaries andhire judicial more judges,encouragingnew 1 South Korea Bangladesh Hong Kong Philippines Singapore Indonesia Malaysia Thailand Pakistan Country Vietnam Taiwan Japan China 2010 India th CPI Score in 2010 to 101 Table 7.Transparency International Corruption Perceptions Index, 8.4 5.4 9.3 7.8 5.8 4.4 3.5 3.5 3.3 2.8 2.4 2.7 2.4 2.3 Selected East andSouthAsianCountries, 2005-2016 Rank 105 123 118 139 144 14 45 17 37 54 80 88 94 5 st South Korea Bangladesh Hong Kong Philippines Singapore Indonesia in 2016, yet rankedis still inthebottomwith Indonesia, 50%,along Malaysia Thailand Pakistan Country Vietnam Taiwan Japan China 2012 India CPI Score 77 87 56 61 74 49 39 37 36 32 34 31 27 26 Ten-Point Socio-Economic Agenda oftheDuterte Administration Rank 107 100 119 126 145 15 43 35 17 50 85 85 85 7 South Korea Bangladesh Hong Kong Philippines Singapore Indonesia Malaysia Thailand Pakistan Country Vietnam Taiwan Japan China 2014 India CPI Score 76 61 84 74 55 52 38 38 38 34 36 31 29 25 (see Figureinvestors 4) also Arangkada Philippinesandthe Rank 101 101 113 116 145 15 31 20 52 55 79 79 90 7 Arangkada Publications South Korea Philippinesandthe Bangladesh Hong Kong Philippines Singapore Indonesia Malaysia Thailand Pakistan Country Vietnam Taiwan Japan China 2016 India CPI Score 84 77 61 72 53 49 40 40 37 35 35 33 32 26

Page 29 Page 30 33 32 31 30 29 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Committee filing to judgment. Recommendation15: Reduce of aging of criminal, civil, administrative andcommercial cases from study theneedto designate specialcourtsonlanddispute settlement. Recommendation 14: infrastructure courts,commercial courts,cybercrime courtsandenvironmentalinstance, courts. For enforcement. contract pursue and cases specific address to courts special designate Recommendation 13:Strengthencourts whoenhance special and economic justice.Establish will stakeholders willbeinstitutionalized. to monitor and facilitate coordination between andamongjusticesector agencies and other Recommendation 12: support thefair administration ofjustice. Recommendation 11:Appropriate resources shouldbeprovided to thejusticesector actors to Act. Recommendation 10:Pass laws to exemptand BOCemployeesBIR fromStandardization theSalary Corrupt Practices Actamendments Recommendation9: Strengthen theanti-corruptionlegal framework by passing: a) anti-Graft and major allegations ofofficialcorruption. Recommendationtowilling and be impartial must 8:TheOmbudsman investigate thoroughly all assets. should, after afairbe punishedheavywith trial, sentences, including imprisonment and seizure of activities corrupt major of guilty found persons private and officials, Public Recommendation 7: proper taxes, bribery, andothermajorcorruptactsmustbesustained. paying not of guilty corporations and persons sector private and officials government prosecuting towill political greatly reduce corruption.Investigating,successfullyand charges bringing against, Recommendation 6:Thegovernment mustdemonstrate through consistent exampleit hasthe that Enhancing FiscalAutonomy. Institution, Upgrading of Ombudsman Employee Skills, Augmenting Compensation and Benefits, and Recommendation 5:Pass amendmentstoAct theOmbudsman to Strengthenas an theOmbudsman Recommendation 22: Recommendation 21: Recommendation 20: Recommendation 19: Recommendation 18: and whistleblower protection. witness strengthening and capabilities, investigation scientific Raise Recommendation 17: Recommendation 16: Act. Act. House: Pending withthe Committee onAppropriations; Senate: Pendinginthe House: Pending withthe Committee onJustice; Senate: PendingintheCommittee House: Pending withthe Committee onJustice since 2016-12-07; Senate: Pendinginthe Committee House: Pending and Professional withthe Committee onCivilService Regulation; Senate: Notfiled House: Pending withtheCommittee onJustice; Senate: PendingintheCommittee 33 32 Philippinesandthe Streamline cases. TheSupremedisposition ofland rules onthe Court should Strengthen forfeiture andrecovery ofassets. Enhanceandexpand eSubpoenaandeWarrant systems. Enhanceandexpand night courts. Roll outautomated systems incourthearingsnationwide. Enhanceandexpand thecontinuoustrialsystem. Streamline investigation andprosecutorial processes. Institutionalize the Justice Institutionalize Sector Coordinatingbody Council.Anational 29 30 b)WitnessProtection Act 31 and c) Whistleblowersand Protection PDP 2017-2022 Arangkada Publications reliability ofpoliceservices,andbusinesscostscrimeviolence. likely to weaken investment andtourism from someforeign markets. the impression abroad of a more violentandless secure Philippines. Continued negativeis publicity created has war drug the and fightingMarawi the both from publicity Extensivenegativeinternational who havethousands ofpersons killed during their raids,by equalled extrajudicialmurders by assassins. Duterte declared martial law inMindanao,which Congress extended untiltheendof2017. and ISIS with causing overaffiliation 250,000 residents claiming to flee Marawi,from 100 daysin of governmentfighting. As a central result of this the rebellion, President against 2017 May in revolted including enactmentoftheBangsamoro BasicLaw (BBL). the MILF respects the long-standing ceasefire in Central , while it awaits a political settlement imposing “revolutionarytaxes” means oflivelihood. onbusinesses as a Thelargestarmed force Muslim of communist NewPeople’s Army has4,000 armed men, whose raison d’etre hasincreasingly become havebeen higher long elsewherethan radical inAsia.Small groupsIslamic are activeThe inMindanao. somewhat worse than Indonesia and Thailand F.

Figures24 show 22,23and Philippines tothe low be ranked ASEAN-6 among spending, inmilitary police, the of operations anti-drug intensified Duterte President campaign, his during promised As Tworadicalized Maranao brothers severalof and died, soldiers 145 with hundred menarmed The Philippines ranks sixthamongtheASEAN-6 economics in business costs of crime and violence, problem ofdocket congestionanddelay. RecommendationSystemThe JudiciaryCaseManagement 26: used toshould be address twin the established. Recommendation Mechanisms 25: to utilize ICT infrastructure inthejudicialprocess should be management ofthewhole justicesector. wide to help address fragmentation inthejusticesystem and greatly enhance the information Recommendation 24:Information andcommunicationtechnology (ICT) should beusedsector- and helpinthespeedy dispositionofcases. Recommendation 23:Reinforce alternativerefercourts can ADRmechanisms so that casesfor ADR Reducing Cost ofDoingBusiness:CrimeandViolence Figure 22. Military Spending, % of of % ASEANGDP, Spending, 22. MilitaryFigure Note: Gaps indicate indicate Note: Gapsabsence of data Source: Stockholm 0 1 2 3 4 5 6 7 8 9 Figure %ofGDP, 22.Military Spending, ASEAN-6, 1990-2016 International International Peace Research Institute (SIPRI) and World Bank (GDP series) (see Figure24). Crime and murder rates inthecountry Ten-Point Socio-Economic Agenda oftheDuterte Administration - 6, 1990 6, Vietnam Thailand Singapore Philippines Malaysia Indonesia - 2016 Arangkada Philippinesandthe PDP 2017-2022 Philippinesandthe

Page 31 Page 32 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

nesf lw nocmn oeain, nldn mltr spot o fight to support criminality, military trafficking, andterrorism. including operations, enforcement law Intensify Recommendation 5: the ArmedForces ofthePhilippinesandPhilippine CoastGuard. Recommendationprogramssustain Pursue and 4: forupgradecapability modernization the and of Bangsamoro politicalentity. RecommendationlawPursue theenabling 3: pavewill that way the forof the establishment the MNLF Peace Agreements. Recommendation 2: toward healingintheBangsamoro. Recommendationof theagreementimplementation 1:Pursuethemeaningful the MILF with Philippinesandthe 133 (2009), 139 (2010), 143 (2011), 144 (2012), 148 (2013), 144 (2014), 140 (2015), 138 (2016) (2016) 138 (2015), 140 (2014), 144 (2013), 148 (2012), 144 (2011), 143 (2010), 139 (2009), 133 WEF Source: 133 (2009), 139 (2010), 143 (2011), 144 (2012), 148 (2013), 144 (2014), 140 (2015), 138 (2016) Source: WEF Figure 24. Business Costs of Crime and Violence,Rank, ASEAN Violence,Rank, and of Crime Costs Business 24. Figure 120 100 120 100 Figure 23. Reliability of Police Services, Rank, ASEANRank, Services, Police of Reliability 23. Figure 80 60 40 20 80 60 40 20 0 0 2009-10 2009-10 ; Figure 24.BusinessCosts ofCrimeandViolence,Rank,ASEAN-6 Total Total number of countries ; Total number of countries of number Total Complete of the remaining theimplementation commitments under the GPH/ Figure 23.Reliability ofPolice Rank,ASEAN-6 Services, 2010-11 2010-11 evaluated: evaluated: 2011-12 2011-12 evaluated: evaluated: 2012-13 2012-13 Singapore Indonesia 2013-14 2013-14 Thailand Philippines Indonesia 2014-15 2014-15 - Thailand Malaysia 6 2015-16 2015-16 - 6 Vietnam Singapore Malaysia Vietnam Philippines 2016-17 2016-17 PDP 2017-2022 35 34

Committee House: Pending withthe Committee onJustice; Senate: Pendinginthe House: Pending withthe Committee onJustice Recommendation 12: Recommendationlaws, 11:Codifypenal all update theRevised PenalCode provisions in theprocess. Recommendation 10: regulation andregistration offoreign nationalswithinthecountry. others, legalamong framework,institutional and on bordercapability controlports ofentry;and at RecommendationPhilippine ImmigrationAmendment ofthe Pursue the 9: Act to strengthen, Reorganization andModernizationAct. crime prevention, suppression, and investigation, thegovernment mustpursue the Passage of PNP Recommendation 8:To further improve itssystemin providing capability better police services for requirements setby theinternational humanrights standards. RecommendationEnsure 7: lawall that enforcement operationsmilitary and comply the with Recommendation 6:Launchaholisticprogram tocriminality, combat illegaldrugs, and corruption. EnactthePNPAct. Intensity andspeeduptheresolution oftheconflictinMarawi. 34 Ten-Point Socio-Economic Agenda oftheDuterte Administration 35 Arangkada Philippinesandthe Arangkada Publications Sulong Pilipinas PDP 2017-2022 Philippinesandthe

Page 33 Page 34 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Philippinesandthe H. G. F. E. D. C. B. A. (Point 4) Infrastructure Building Chapter 3:

Water Telecommunications Railways andBus Intra- and inter-urban Roads andExpressways Power Maritime Ports Airports Sources, Procurement Policy Spending Levels, Funding 59 56 54 49 45 44 40 37 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 35 Page 36 declined, while Indonesia andVietnam improved andare closeto Thailand. 2008, thePhilippines,Indonesia,andVietnamwere roughly equal.By 2016,thePhilippineshad of infrastructure: Dominguez reiterated theneedfor thePhilippinesto work towards prioritizingtheimprovement up withregional competitors. SpeakingattheApril2017“Dutertenomics” forum, DOFSecretary “Golden AgeofInfrastructure” to thecountryinorder to accelerate economicgrowth andcatch Boldly, theDuterte Administration hasembarked onits“Build,Build,Build”program to bringa the Philippines,addingto thecostofdoingbusinessandconstraining higher rates ofGDPgrowth. electricity, poorwater supply andsanitation,underdeveloped publictransportation characterize (see Figure 4inChapter 1).Congested airports, roads, andseaports,expensive broadband and highestsecond the as byidentified (17.8%) concern forWEF the Philippinesthe in business doing Private Partnerships playing akey role. Point 4: Accelerate annual infrastructure spending to account for 5% of GDP; with Public- Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Infrastructure improvement isoneofthetop priorities oftheDuterte Administration, aswell Among theASEAN-6, thePhilippinesranks 6 competitiveness.” region, ithas much to dowith poorinfrastructure. Itishere where we shouldbeginrebuilding our we examine all the reasons why the Philippines fell behind the other economies ofthis dynamic lost outoncompetitiveness. For anarchipelagic country, poorinfrastructure isdebilitating... If “In the“In decades when we neglected infraour while rapidlyneighbors our theirs,built up we Philippinesandthe Source: WEF Global CompetitivenessSource: WEF Figure 25. Overall Infrastructure Rankings, ASEAN Rankings, Infrastructure Overall 25. Figure 140 120 100 80 60 40 20 0 Figure 25.Overall Infrastructure Rankings,ASEAN-6, 2008-2017 Report (variousReport years) th inOverall Infrastructure Rank oftheWEF. In - 6, 2008 6, - 2017 Viet Nam Viet Thailand Singapore Philippines Malaysia Indonesia exceeded 2%ofGDPbutexceeded 3%in2015and4%2016. Figure 26 38 37 36 which exceed 5% per year in2017, 6% per year in2018-2021, and 7% in 2022 shows(DBM) and Management of Budget targetedand past levels duringthecurrentadministration, A. Thailand Table 7. Key Infrastructure Indicators, ASEAN-6 2 - This refers to refers ork the entire This 2 - netw road Indonesia Sources: US EIA, ITU, WHO-UNICEF JMP, ASEAN-Japan Transport Partnership, ASEAN Secretariat, World Bank & author's calculations & World author's Secretariat, Bank ASEAN Partnership, Transport ASEAN-Japan JMP, WHO-UNICEF EIA, ITU, US Sources: Vietnam aa sia Malay Singapore Philippines

Point 3 targetslevels attaining of 5% of GDP spending oninfrastructure. Figure 27 of the Department The PhilippineGovernmenthas for many yearsinfrastructure. underspentonpublic or twiceasmuch astheyear inwhichPresident Duterte was elected. aGDPgrowthWith around 7%ayear, by sector public 2022the onGDPwould spending approach $30billion With aGDPof$305billion in2016,5%ofGDPwould beUS$15billion. the publicsector. Spending onPPPprojects, power, and telecommunication infrastructure isprimarily by theprivate andnot Spending Levels, FundingSources, Procurement Policy Sources: DBM obligation basis data basis obligation DBM Sources: projects), special shares to LGUs and other capital outlay items not classified elsewhere but net of corp equity corp of net but elsewhere classified not items outlay capital other to and LGUs shares special projects), programs; expenditure hr fpplto ith Share of population w Figure 26. National Infrastructure Spending and Other Capital Outlays, Php Bn, 1989 Bn, Php Outlays, Capital Other and Spending Infrastructure National 26. Figure 1000 1200 access to electricity, 200 400 600 800 Figure 26.National Infrastructure SpendingandOtherCapital Outlays, PhpBn,1989-2017p , which covers the last five presidential terms, public sector spending on infrastructurerarelyon spending sector fivepublic terms,presidentiallast coverswhich the , 0 2014 100 100 100 97 99 89

1989 1990 ult o lcrct spl supply of electricity Quality score (out 2016 WEF of 7), score 1991 1992 GDP) of (% Spending Infrastructure GDP) of (% Outlays Capital Total Infrastructure Outlays Capital Other 5.1 4.2 4.4 5.8 6.8 o 4

ther transfers capital include ther outlayscapital 1993 1994 1995 Table 8.Key Infrastructure Indicators, ASEAN-6 Distribution losses as as Distribution losses generation, 2014 generation,

1996 net total of % and authors calculations; and authors 6.1 9.4 9.2 5.8 2.0 1997 9 1998

1999 100 per subscriptions inhabitants, 2015 inhabitants, 2000 edtelephone Fix 35.88 14.65 6.32 7.88 8.75 2001 3.17

2002 Ten-Point Socio-Economic Agenda oftheDuterte Administration per 100 inhabitants, inhabitants, 100 per 2003 phone subs Mobile Note: 2016 Note: 2004 130.6 152.7 146.5 132.3 115.8 143.9 2014 2005 to LGUs (20% of IRA allocation for development development for allocation IRA of (20% LGUs to 2006 cest mrve ater edw to improv access & 2017 2007 ith Share of population w sources, %, 2015 %, sources, 37

2008 97.6 97.8 87.4 91.8 98.2 100

are based on adjusted and proposed andproposed on adjusted based are 2009 2010 2011 hr fpplto ith Share of population w access to improved 2012 2015 %, sanitation, Arangkada Philippinesandthe 60.8 73.9 100 78 93 2013 96 2014 2015 Population per km Population km per 38 Road density - - density Road 2016a of road . DBMSecretary Philippinesandthe 1563.6 - 424.2 291.1 494.6 452.3 143.1 2017p 36 2017p 2 , 2013 , As shown in 0% 1% 2% 3% 4% 5% 6% 7% Pav ed roads as %of as roads ed Pav oa odnt ork total netw road 2013 100 66 83 57 27 78 2 ,

Page 37 Page 38 build infrastructurebuild projects with itsownfunding andbidouttheOperations (O&M) andManagement solicited bids). Second, it is emphasizing “hybrid” projects. In a hybrid project, the public sector will first welcomed unsolicited proposals (incontrastto theprevious practiceof discouraging these infavor of Administrationtwo ismaking key policychangesinitsPPPprogram. theadministrationFirst, has deficit from 2to 3%of GDP. Thebudgetdeficitwas 2.4%in2016. Aside from increasedcollections, thegovernment tax borrow will moreto andiswilling increase the how serious the Duterte Administration isinreaching its target to spend 5% of GDP on infrastructure. spending oninfrastructure by 54.5% fromin 2017 toplanned Php487 billion indicating Php753 billion, of ChinaandtheAsianInfrastructure Investment Bank. the newadministration is the high level of potentialODA be sourcedwill that from thePeople’s Republic Foreign grants for infrastructure are rarely available.Of available sources ofODA, thekey changeunder loans from bilateralor multilateral sources low with interest rates afterno-interest initial grace periods. is sourced from government revenue andborrowings (mostly domestic). ODA isusually very long-term 39 Php 8to 9trillioninthe2017-2022periodormore thanUS$160 billion. Benjamin Diokno has often stated that theplannedtotalspending target for infrastructure spending is Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe General Appropriations (GAA) and 20% from Official Development Assistance (ODA). Assistance Development Official from 20% and (GAA) Appropriations General Point 3alsostatesPublic-Private that Partnershipsplay will key a role. However, theDuterte increase will - administration current the by prepared first the – budget requested 2018 The According to Secretary Diokno, the administration will finance its “Build, Build, Build” plan 80% from 20% ofPhp8trillion isPhp1.6trillionorUS$32 billion. Source: As presentedbyDBMSecretaryDioknoattheDutertenomicsForumon August 10,2017. Philippinesandthe Figure 27:DBMInfrastructure SpendingProjection 39 GAA spending 41 40 cost -butoften notthe best quality-bidder. problems, extended bidding procedures, judicialinterference, andarequirement to award to thelowest to thenewmodel. Davao, ,Laguindingan, NewBohol,andPuerto Princesa) planned for PPP bidding have been shifted while theprivate sector isbetterFollowingO&M. at this approach, severalregional airports (, The out. administration has stated GAA and ODA financed projects can be built faster and at lower cost, to theprivate sector. Previously, acomplete PPPpackage,construction andownership, including was bid

Government procurement policies have beencriticized as delayed by right-of-way (ROW) acquisition entities involved inthetransportation sector intheexercise oftheirfunctions. transportation system by settingforthserve will policies that asboundaryconditions to guideall efficient, secure, safe, a competitive, achieve dependable,integrated, environmentallyand people-oriented. sustainable Philippine help to Policy Transport National a Enact Recommendation 6: regulatory bodiesfor the railways, airportsandseaports. Recommendation 5:Thereneed to isa TransportNational a enact Policy andto create independent preparation. also beincreasedwill of implementingagencies withrespect toproject development and implementation. Withtheintended increase inspendingfor infrastructure, thecapacities Recommendation 4: to ensure thattheimplementationofprograms andprojects are harmonizedandwell-coordinated. Recommendation 3:Formulate andupdate masterand roadmaps. plans Masterare plans necessary official development assistance,andprivate capitalwillbeundertaken.financing, government of mix optimal an on based program investment An Recommendation 2: percent ofGDPin2022. infrastructurefurther increasedbe will to5.3 percentleast at possibly2017 and of GDP in to 7.4 RecommendationUndertake1: strategic measures to ensurespending on public annual the that production anddelivery. of cost lower internationally,and and domestically services and goods of flow efficient the ensure Recommendation 11:Provide adequate infrastructuretosupport logistical and achieve connectivity, the sanctityofcontracts. Recommendation 10:Reduction inbottlenecks inPPP and infrastructure projects andrespect for to free upfiscalspace. Recommendation 9:Encourage theprivate sector to engage inpublic-private partnership schemes eliminated. roles of some asbothoperatoragencies acting and regulator of transport facilitiesbe effectively will sector and maritime transport sector, consistent withtheNationalTransport Policy. The existing dual concerned transportagencies by creating respective independent regulatory bodiesforrailway the and MaritimeTransport Sectors in order to solve theweakand fragmented of setup institutional Recommendationof alaw 8:Enactment creatingIndependent Regulatory Bodies for Railway thereby eliminatingconflictingandoverlapping functionsofexisting agenciesorentities. among others, investigate transport accidents and provide transport safety recommendations, whichtransport places all safety andsecurity matters under a single independent bodywill, that Recommendationa law 7:Enact creating Independent Bodyan for Transport Safety andSecurity Thisproposed law, whileinthePDP, isnotontheLEDAC list. Thisproposed law, whileinthePDP, isnotontheLEDAC list. 41 Improve government administrative systems andprocedures onproject Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Arangkada Publications Sulong Pilipinas PDP 2017-2022 Philippinesandthe 40

Page 39 Page 40 the International AirTransport Association: issues pertaining to air transport infrastructure are (1) airports, (2) airlines, (3) air traffic. According to 44 43 42 capacity ofitsfour terminals, andto develop a second gateway atClark (seeFigure 28). maingatewaythe country’s at airport Ninoy Aquino which International operates Airport, beyond the B. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Mar Arangkadabrief “Airports”policy a published highlighted2017. It in need to the relieve congestion longer the delay, the bigger lossto the country.” thePhilippine economy would have gained from anairportthatcan handleall potential travelers. The supported by the airtransport sector andforeign tourists arrivingby air.” billion gross value addedcontributionto the GDP. country’s percent …3.2 oftheis GDP country’s contributionto in the GDP Philippines Spending in2014. by foreigntourists supported afurther$7.4 Most the Public-Private Partnership Act. Recommendation 13:Legaland procedural reforms are needed to revitalize PPPprograms. Enact Act to improve thebidselectionprocess. Recommendation 12:Pursue amendments to RA9184 or the Government Procurement Reform Airports Mr The billisintheTW This measur . VinoopGoel,IATA AsiaPacific Regional Director,TTG asquoted in Asia. ch 17,2016 “W “The air Source:MIAA *ActualDatafor2001-2016;JICA travelers and,increasingly, more goods enter andleave thePhilippinesby air. Thethree main Philippinesandthe e should have started building airports five years ago. Just imagine the economic impact that impact economic the imagine Just ago. years five airports building started have should e e isamongthe28LEDAC priorities ofAugust 29,2017. transport industry isestimatedtransport to industry havesupported billion gross a$1.8 value added andJICA StudyonairportstrategyforGreaterCapital Region G intheHouse,butSenate PublicWorks Committee hasnotheld ahearing. Figure 28.NAIAPassenger DemandForecast Forecastfor2017to2040 43 42

44 Arangkada Publications and 2015. and international tourism. Figure 30 shows how traffic at many regional airports doubled between 2010 decade, thequalityhasfallen andisthelowest oftheASEAN-6.

Improvement of regionalairport infrastructure is important to accommodate increasing domestic services. taxiway, tighten intervalsbetween aircraftmovement, and procure state-of-the-art technology and Recommendation 3:At NAIA, transfer general aviation to other airports, constructarapid exit region, suchasbuildinganewinternational airport. capital greater the serving traffic air decongesting on focus Strategiesshould Recommendation 2: efficiency ofairportsandto address constraints to optimalcapacityutilization. Recommendation 1:The governmentexhaust will possible meansto all improve theoperational The quality ofairports Thequality inthePhilippines,asrated by theWEF, isshownin Figure 29.Over the last Source: WEF Global Competitiveness Report (various years) (various Report Competitiveness Global WEF Source: Figure 29. Quality of Air Transport Infrastructure Rankings,ASEAN 140 120 100 80 60 40 20 0 Figure 30.Passenger Movements inPhilippineAirportsOutsideofManila,2010,2015 Figure 29.QualityofAirTransport Infrastructure Rankings,ASEAN-6 (2008-2017) Source:Civil Aviation Authority ofthePhilippines(CAAP) Ten-Point Socio-Economic Agenda oftheDuterte Administration - 6 (2008 - 2017) Arangkada Philippinesandthe PDP 2017-2022 Philippinesandthe Viet Nam Viet Thailand Singapore Philippines Malaysia Indonesia

Page 41 Page 42 46 45 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

taken place. franchise approved by Congress priorto biddingshouldnotbecomelaw. Recommendation 16: international airports. Recommendation The 15: government should provide CIQ services at government expense atall such asSwitzerland, Canada,andtheUK. Recommendation 14: Corporatize or privatize air traffic control services as done in other countries airports andregulating privatized airports. CAAP totoindependent entity an consolidatedeveloping, functionsofplanning, of all maintaining RecommendationCreate 13: thePhilippineAirportsAuthority to transfer airportoperationsfrom transportation. RecommendationService ActPublic Amend the 12: to maximize competitivenessof quality and airports. Recommendation 11:Accelerate developmentof secondary internationalgateways andprovincial supplement orreplace NAIA in10years. Recommendation 10: best usageofthefacilities for Greater . Recommendation 9:PlaceClark, Sangley, andNAIA under a single airportauthorityto coordinate and accelerate thedevelopment ofClark International Airport. Recommendationa multi-airportsystem8: Implement policyintheGreater RegionCapital (GCR) including NAIA. RecommendationPrivatize 7: maintenanceand operations of majorinternational airports, carriers to useairportatleastcongested times. incentivizetofees landing use gateways,toNAIA secondary at toforeign directmoreflightspricing traffic tools: available restrictions, rapid exittaxiways, best nightmoreat landings domestic airports, upgradefacilities, ancillary the using NAIA at congestion further Minimize Recommendation 6: be installedwithnight landingcapabilities. Recommendation 5: access to Manila(e.g.,rail system providing non-stop andcommuter services). Recommendation 4: improvements attheSangley airport. Recommendation 19: as efficient as possible by applying newtechnologies on-linecheck-in, eliminatingfees, made andreducing lines. be should terminals airport through flow Passenger Recommendation 18: to implementtheAdvanced Passenger Information System (APIS). Recommendation 17: Corporations Committee, whilethe Housebillis yet tobefiled. Senate Bill 1440,filed by Sen.Grace Poe, ispendingintheGovernment The PSA billisin2 Philippinesandthe 45 nd

Reading in theHouse,whilehearingsby theSenate Committee PublicService have not Fast track development for theClark International Airport for fast anddirect Improvements ofregionalfastbe airports will tracked. Regionalairports will The president should approve thedraft EOtothe Bureau enable of Immigration Continue theshift of generalaviation from NAIA to Sangley and complete The legislative proposal to requirebidder aforPPP project a to have a Study thelocationof a successor multi-runway international airport to 46

Arangkada Publications PDP 2017-2022 Photo 3: Artist perspectiveonCebu-Mactan Airport. Photo 2: Areal viewoftheproposedClarkInternational Airport. Photo 1: The newBohol Airport beingconstructedatPanglaoIsland,BoholProvince. Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 43 Page 44 behind VietnamandMalaysia. C. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe of thecountry. the of efficiency the countries, other economytodepends onthe ability most movegoods byand people seabetweenby islandsand out seainand than More islands. major between links maritime strong The quality of ports is shownof portsis The quality Figurein The Philippinesisranked31. 6 As anarchipelagic countrywithover 7,000 islands, the infrastructure ofthePhilippines requires Maritime Ports Philippinesandthe

Source: WEF Global Competitiveness Report (various years) (various Report Competitiveness Global WEF Source: Figure 31. Quality of Ports Rankings, ASEAN 140 120 100 80 60 40 20 New Bohol (Panglao) Airport O&M Airport (Panglao) New Bohol Airport (Panglao) New Bohol Mactan- International Airport Terminal Passenger AirportLaguindingan O&M International AirportIloilo O&M Davao International AirportO&M O&M Airport International Clark Terminal) (New Passenger Airport International Clark (DaragaBicol City) International Airport O&M Airport Bacolod AirportMajor 8. Table Projects,2017 Sources: GPH websites; various media reports media various GPH websites; Sources: * Unsolicited Airport (Palawan) Vicente San O&M Airport International Princesa Puerto Ninoy AquinoInternational AirportO&M New Manila International Airport(Sangley orBulakan)* 0 Figure 31.QualityofPorts Rankings,ASEAN-6 (2008-2017) Table 9.MajorAirportProjects, 2017 Project - 6 (2008 - 2017) Under Construction Construction Under Under Construction Under Under construction construction Under Bidding scheduled For evaluation For approval For approval For bidding For bidding For bidding For bidding For bidding For bidding For bidding th Status of the ASEAN-6 and far Viet Nam Viet Thailand Singapore Philippines Malaysia Indonesia

accommodate cruiseships. MICT) andincrease use ofBatangas andSubic,while increasingpiers of toManila thecapability Recommendation 7: terminals, securitysystems andberthingspaceswithgoodroad access. RecommendationRORO 6:Major ports should have modernpassengerterminalsconnectedwith Recommendation5: Recommendation 4: skyways designfor increased truckweight. Recommendation 3: terminals, ship-to-shore cranes, truckmarshallingareas, andweighing scales. Recommendation 2: including astronger RORO network, willremain aviableoptionfor transporting peopleandcargo. Recommendation 1: Philippine maritimefreight. Recommendation 13:Take steps to persuade internationalshippers to reduce unwarranted fees on developing andprivatizing ports. Recommendation 12: and/or alaw to amenditscharter. Recommendation 11: ports to create cargo volume for larger shipsandreduce shippingcosts. Recommendation 10: continuously increasing fees, which make Philippineportslesscompetitive andadd to cargo costs. Recommendation 9:PPAinnovativefind should ways increaseand tocosts cut revenue fromaside Recommendation 8: Sources: GPH websites; various media reports media various websites; GPH Sources: * Unsolicited thePhilippines in System Transport RORO of Modernization Central Spine Project (RORO) Roll-on/Roll-off Project Modenization Port Sasa Davao Project Development and Port Coastline Davao Terminal and Bulk Container International Cebu New Boracay) or (Caticlan Terminal Ship Cruise Terminal Ship Legazpi Cruise Gateway Barge Terminal* Upgrade Port International Terminal Ship Cruise Manila Table XX. Major Seaport Projects, 2017 Grant longterm permitsto private firmsto operate government ports. Minimizetruckbans. ExpandthecapacityofBatangas Port by addingcranes. Connect Manila ports directlyConnect Manila to theMetroskyway Manila system andimprove Limit internationalcontainer shipmentvolume (South Harborin Manila and Major ports should include all needed Major ports infrastructureshould include all includingcontainer Port facilities shouldbeimproved to ensure inter-island that shipping, Implement agro-industrialImplement andmanufacturing clustering nearkey regional Separate theregulatory anddevelopmentalfunctions ofthePPA byEO an PPAshould consider creatingprivatea corporationsolely focused on Table 10.MajorSeaportProjects, 2017 Project Ten-Point Socio-Economic Agenda oftheDuterte Administration For project proposal project For proposal project For proposal project For proposal project For funding TBD/private proposal project For Under construction Under Preconstruction For approval For approval For Status Arangkada Philippinesandthe Arangkada Publications PDP 2017-2022 Philippinesandthe

Page 45 Page 46 power costsfor manufacturing inthePhilippinesare often uncompetitive (seeFigure 32). tofast-growing thedemandofa economy. Due to government subsidies in severalregional countries, renewableenergy projects are continuously opening,thegrowingshare continue inresponsewill ofcoal facilityto contracted be soon.Although thePhilippinesusesconsiderablenon-carbon fuels andnew requireregasificationa will Manila, of south powerplants of MW 3,000 fuels which 2022-2023, in field after several years of blackouts, has added sufficient new capacity. The exhaustion of the Malampaya gas Visayasexpanding grid astable has maintained supply for severalyears. The separate Mindanaogrid, generation monopoly to aprivate-sector led “openaccess” competitive environment. The main Luzon- sector public inefficient an from transitioning 2001 in signed Act Reform Industry Power Electric the forchallenge decades.Over15 years thelast major reforma implementing Philippines hasbeen the under D. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Power Achieving areliableand affordable supply of electricity for the entire countryhasbeenaconstant Sources: GPH websites; various media reports media various websites; GPH Sources: infrastructure) and distribution (receiving Hub LNG PH Visayas-Mindanao connector grid V HyrdoPulangui Power Project Mindanao PowerSouthern Fired Coal Station PowerKauswagan Fired Coal (GNPower) Plant 3 Unit Fluidized Power Fired Coal Bed Project Plant Circulating Misamis FDC Power Fired + Coal Plant Fluidized Combustion Bed Circulating Thermal Balingasag DavaoPower Plant Unit Project 2(SMC) Mindanao Power () Plan Coal-Fired AOE Power Fired Coal (GNPower) Plant Supercritical 2 xDinginin 660 MW (AES) Project Expansion Masinloc San Buenaventura Power Ltd. Co. Project (Quezon Power) Power Peninsula) (Redondo Plan Coal-Fired Power (Quezon Plant Power) Thermal Fired Coal Pagbilao Luzon/Visayas Table Projects, 10. Major Power 2017 Philippinesandthe Figure 32. Average Retail Electricity Tariffs, USc/kWh, 2016 USc/kWh, Tariffs, Electricity Retail Average 32. Figure Source: International Energy Consultants, May 2016 InternationalSource:Consultants, Energy May 25 10 15 20 0 5 Figure 32.Average Retail ElectricityTariffs, USc/kWh,2016 Table 11.MajorPower Projects, 2017 Project Baseload Others Paid by consumers subsidy Estimated 1200 MW 1336 MW Capacity 250 MW 100 MW 540 MW 135 MW 165 MW 150 MW 335 MW 500 MW 600 MW 400 MW 230 kV Target Commercial Operation 2021 2019 2018 2017 2017 2017 2019 2019 2019 2017 2021 2020 2020 TBD

47 generation capacityofalmost 6,000MW (see Figure 33) Transmission Corporation willfundsuchanexpense. delayed for two decades. the privateis It uncertainthat sector concessionaire operatingthe National

overdue to beenacted. The Philippinesisgroupedof PowerQuality WEF the in Vietnam Indonesia and with SupplyRanking A majorUS$750 projectmillion to connecttheLuzon-Visayas grid with theMindanaogrid has been

broaden thelistofsuppliersinmarket. Recommendation 2:Accelerate theevaluation of retailto electricity supplier license application implementation ofenergy infrastructure projects to improve power generation andcapacity. Recommendation 1: side managementandincentivizes energy efficiency projects. Recommendation 9:Enact a Law on Energy Efficiency and Conservation which promotes demand- rates. Significance which expeditesNational thetimely completionof energy projects toof high helpcushiontheimpact power of Projects as Projects Energy Declaring Law a Enact Recommendation 8: the Mindanaopower systems. Recommendation 7:Prioritize the Visayas-Mindanaointerconnection to increase thereliabilityof in constructed Quezon, Batangas, andBataan. be should terminals gas natural liquefied this, with line In country. the in pipeline gas natural first the be to proposed been has project pipeline gas Batangas-to-Manila km 121 The Recommendation6: The government must pursue the development of the natural gas industry. broaden thelistofsuppliersinmarket. Recommendation 5:Accelerate theevaluation of retailtoelectricity supplier license application demand (from thecurrent 17%). Recommendation 4:Increase system thecountry’s reserve requirement to 25 percent ofpeak Recommendation 3: This billhasbeenextensively heard inthe17 47 Source: WEF years) Report (various Competitiveness Global Source: WEF . AsofJuly 2017, Arangkadacounted 12large powertotalunder constructionwith plants Figure 33. Quality of Power ASEANRankings, Power Supplyof 33. Quality Figure 120 100 80 60 40 20 0 Figure 33.QualityofPower SupplyRankings,ASEAN-6 (2008-2017) Supportandapprove the required massive investments andfast track the Competition shouldbeencouraged to reduce electricity costs. (seeTable 11). th andthe15 Ten-Point Socio-Economic Agenda oftheDuterte Administration th Congress andis - 6 (2008 - 2017) Arangkada Philippinesandthe Viet Nam Thailand Singapore Philippines Malaysia Indonesia PDP 2017-2022 Philippinesandthe

Page 47 Page 48 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Connect hydro powernon-hydroadding plants, security oftransmissionand maintaining plants, towers. Recommendation 11:Ensure power supplyprivatizationwith inMindanao and rehabilitation of more competitionamonggenerating firmsinthe provision ofelectricity. Recommendationthe openaccessprovision 10:Implement below ofEPIRA the1MGlevelto allow as well asencourage privatization. the to support Increase issues. National Electrification financial Administration to technical/ enable handle ECs to to upgrade unable operational/financial standards, are (ECs) Cooperatives Recommendation 14:Strengthen electricpower distributioninruralareas, asmany Electric and future demandfor natural gas fuel. the private sector should be enabled to build a regasification facility in Batangas to serve present Malampaya,to comparable field gas a developmentof of absence the In Recommendation 13: projects. Recommendation 12: netvz ue f nry efficient technology andconservation measures. energy of use Recommendation 20:Incentivize Recommendation 19: to dosectoral planninganddrafting ofregional Energy Generation Investment Policies. Recommendation 18:Strengthen intra- andinter-agency coordination under the DOEandERC formulating anintegrated andsustainableEnergy andPower Development Roadmap. portfolioDesignate mix). power supply quality,reliability, andaffordabilityas key objective in Recommendation 17: energy projects, especially upstream energy resources suchasoilandgas. Recommendation Accelerate 16: andstreamline thebusinessprocesses for thedevelopmentof them perregion to reduce distribution costandto increase capacity. Recommendation Strengthen 15: the market power of electriccooperatives by aggregating Philippinesandthe Mindanao gridwiththenationalgrid. Photo4: Areal viewof Team Energy’s PagbilaopowerplantinPagbilao,QuezonProvince. Remove the 60-40 equity provision in theIRRs for renewableenergy Create aRenewable Energy Roadmap. FormulateEnergy an Power and DevelopmentRoadmap (generation Arangkada Publications of Commerce andIndustry (PCCI) G.I.A.N.T. S.T.E.P.S by PhilippineChamber PDP 2017-2022 Page 48 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe

Connect hydro powernon-hydroadding plants, security oftransmissionand maintaining plants, towers. Recommendation 11:Ensure power supplyprivatizationwith inMindanao and rehabilitation of more competitionamonggenerating firmsinthe provision ofelectricity. Recommendationthe openaccessprovision 10:Implement below ofEPIRA the1MGlevelto allow netvz ue f nry efficient technology andconservation measures. energy of use Recommendation 20:Incentivize Recommendation 19: to dosectoral planninganddrafting ofregional Energy Generation Investment Policies. Recommendation 18:Strengthen intra- andinter-agency coordination under the DOEandERC formulating anintegrated andsustainableEnergy andPower Development Roadmap. portfolioDesignate mix). power supply quality,reliability, andaffordabilityas key objective in Recommendation 17: energy projects, especially upstream energy resources suchasoilandgas. Recommendation Accelerate 16: andstreamline thebusinessprocesses for thedevelopmentof them perregion to reduce distribution costandto increase capacity. Recommendation Strengthen 15: the market power of electriccooperatives by aggregating as well asencourage privatization. the to support Increase issues. National Electrification financial Administration to technical/ enable handle ECs to to upgrade unable operational/financial standards, are (ECs) Cooperatives Recommendation 14:Strengthen electricpower distributioninruralareas, asmany Electric and future demandfor natural gas fuel. the private sector should be enabled to build a regasification facility in Batangas to serve present Malampaya,to comparable field gas a developmentof of absence the In Recommendation 13: projects. Recommendation 12: Mindanao gridwiththenationalgrid. Photo4: Areal viewof Team Energy’s PagbilaopowerplantinPagbilao,QuezonProvince. Remove the 60-40 equity provision in theIRRs for renewableenergy Create aRenewable Energy Roadmap. FormulateEnergy an Power and DevelopmentRoadmap (generation Arangkada Publications of Commerce andIndustry (PCCI) G.I.A.N.T. S.T.E.P.S by PhilippineChamber PDP 2017-2022 programs are continuingwithyet-increasing budgetsfor DPWH. Nonetheless, of Roadthe Philippines Quality rankyears.declined during2015-2017 and was overtakenfive by Vietnam.These over made was progress destinations; tourist important around bridges and Aquino Administrationlaunched aconsistent effort to upgradehighwaysnational all andto improve roads to non-archipelagicand wealthier Malaysia evenand Thailand and poorer Vietnam(seeTable12). The (over 200,000) as severalof theotherlarge ASEAN economies, its roads are inferiorcompared in quality competitiveness. Although thePhilippines has asextensive aroad network interms of totalkilometers movementwhilepeople, of goodsand increases itsabsence transportharms country costs and E.

t s xoai ta mdr gon tasotto ifatutr i esnil o te efficient the for essential is infrastructure transportation ground modern that axiomatic is It the VAT onfranchise taxandsystem loss. Recommendation 23:Review and/orremove itemsadd to that electricity tariffs escalating suchas Recommendation 22: Recommendation 21: Roads andExpressways

& author’s calculations &author’s Sources: Country PublicWorks Offices, Vietnam Thailand Singapore Philippines Malaysia Indonesia Figure 34. Quality of Roads Rankings, ASEAN Roads Rankings, of 34. Quality Figure Source: WEF Global CompetitivenessSource: WEF 140 120 100 80 60 40 20 0 Figure 34.QualityofRoads Rankings,ASEAN-6 (2008-2017) Network, Km Total Road Promote investments inLNGfor power andpublictransport. Impose strictanti-pollutionmeasures for coalfired power plants. 211,496 231,736 3,453 215,717 205,949 508,000 Table 12.Road QualityandRoad Density, 2013 to totalroadnetwork% Shareofpavedroads ASEAN-Japan Report (variousReport years) 66 83 100 27 78 57 Ten-Point Socio-Economic Agenda oftheDuterte Administration Transport Partnership, - 6 (2008 kmofroad Population per 424 291 1,564 452 143 495 - 2017) ASEAN Secretariat of Commerce andIndustry (PCCI) G.I.A.N.T. S.T.E.P.S by PhilippineChamber ofpavedroad Population perkm Arangkada Philippinesandthe Viet Nam Thailand Singapore Philippines Malaysia Indonesia 643 350 1,564 1,651 184 873 Philippinesandthe

Page 49 Page 50 48 administration to400 kilometers)Quezon (about Lucena, limited on accesstollroads beforecurrentend ofthe the Depending ontherateshould bepossibletoit ofimplementation, drive fromFernando, San LaUnion various13) with funding sources, ODA, GAA, andPPP;sixwere underconstructionasofmid-2017. be soldin2017. increase inexcise taxes. The motorcycleindustry associationpredicted 1.8 to that will units 1.9million 2016 of 360,00025% unitsupfrom 2015. by moreyear.20% a than The auto manufacturertruck and associationsrecorded combinedsalesin afford automobiles have overwhelmed the limited road spaceincities. Motor vehicle sales are growing Rapid principalinternational urbanization anda growing airport. the country’s middle class thatcan Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe and southextensions, aswell as spurandotherconnection projects, are planned. the CALABARZON , shouldbeableto reach Lucena, Quezon, stopping onlyfor tolls andrest stops. North Numerous projects have beenapproved andproposed for more freeways inCentralLuzon (seeTable Inter-urbanfreeways are limited to CentralLuzon; Metrohas only Manila one skyway system near A driver starting inSan Fernando, La Union onthe SCTEX, continuing onthe NLEX, then the NLEX-SLEX Skyway and Sources: websites;reports GPH media various * Unsolicited Mindanao Infrastructure Logistics Network (MLIN) BayPanguil Bridge Road Coastal Davao BypassDavao Road Mindanao Metro ExpresswayCebu Expressway Link Cebu-Cordova Bridge* Transit Rapid Bus Cebu Highway Economic Bacolod Visayas Expressway Union Tarlac–Pangasinan–La Southwest IntegratedTransport System Project Expressway Luzon South 4 (SLEx)-Toll Road IntegratedSouth Transport System Project ExpresswayQuezon-Bicol (QuBEx) BypassPlaridel Road NLEx-SLEx ConnectorRoad NLEX-HarborProject Link NLEX East Expressway MetroManila Skyway (MMS) StageProject 3 Metro Transit 2(Central Corridor) - Line Manila Rapid Bus Metro Transit 1(Quezon - BRT) Line Avenue Manila Rapid Bus Manila Expressway* to Manila to Quezon Expressway Transit System Integrated Rapid Personal and Viaduct IntegratedTransport System-North Project Terminal Bridge Estrella-Pantaleon Transit System Rapid Bus EDSA Expressway*Delpan-- Expressway Link Luzon Central (CLLEX) II Phase Expressway- (CALA) Cavite Sur Expressway Camarines Project OverheadC-5 Expressway Project, toBGC Ortigas Link Road Sta. Monica-LawtonBridge Transit System Rapid toBus BGC NAIA Binondo- Bridge Luzon 2017 ExpresswayProjects, and Road XX. Major Table Philippinesandthe (see Photos 5and6). Figure 35. DPWH's Budget (in Billion Pesos) 100 200 300 400 500 600 700 Source: DBM Source: 0 Project

Table 13.MajorRoad andExpressway Projects, 2017 2011 (Total obligations; Adjusted obligations; (Total Figure 35.DPWH’s Budget (inBillionPesos) DPWH Budget (% of National) of (% Budget DPWH Budget DPWH 2012 48

2013 Sales could exceedSales 500,000 in 2018, evenexpectedan with - Budget; Budget; 2014 Actual 2015 Length 180 km 180 km 102 35 km 45 km 74 km 16 km 22 km 89 km 57 km 23 km 16 km 91 km 15 km 12 km 18 km 27 km 36 km 44 km 16 km - 4 km 8 km 8 km 8 km 1 km Expenditure

2016 Private/GPH ) Financing GPH GPH GPH ODA ODA GPH ODA GPH ODA ODA ODA PRC PRC PRC PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP 2017a

2018p for ROW Acquisition ROW for For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal Under constructionUnder Under constructionUnder Under constructionUnder Under constructionUnder constructionUnder Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% For evaluation For approval For approval For approval For approval For approval For approval For approval For approval For approval Status TBD

Photo 5:LuzonFreewaySystem; Source:DPWH Sources: websites;reports GPH media various * Unsolicited Mindanao Infrastructure Logistics Network (MLIN) BayPanguil Bridge Road Coastal Davao BypassDavao Road Mindanao Metro ExpresswayCebu Expressway Link Cebu-Cordova Bridge* Transit Rapid Bus Cebu Highway Economic Bacolod Visayas Expressway Union Tarlac–Pangasinan–La Southwest IntegratedTransport System Project Expressway Luzon South 4 (SLEx)-Toll Road IntegratedSouth Transport System Project Sources: websites;reports GPH media various ExpresswayQuezon-Bicol (QuBEx) BypassPlaridel Road * Unsolicited NLEx-SLEx Connector Road Mindanao Infrastructure Logistics Network (MLIN) NLEX-HarborProject Link BayPanguil Bridge NLEX East Expressway Road Coastal Davao MetroManila Skyway BypassDavao Road (MMS) StageProject 3 Metro Transit 2(Central Corridor) - Line Manila Rapid Bus Mindanao Metro Transit 1(Quezon - BRT) Line Avenue Manila Rapid Bus Metro ExpresswayCebu Manila Expressway* to Taguig Expressway Link Cebu-Cordova Bridge* Manila to Quezon Expressway Transit Rapid Bus Cebu Transit System Integrated Rapid Personal and Viaduct Highway Economic Bacolod IntegratedTransport System-North Project Terminal Visayas Bridge Estrella-Pantaleon Expressway Union Tarlac–Pangasinan–La Transit System Rapid Bus EDSA Southwest IntegratedTransport System Project Expressway*Delpan-Pasig-Marikina Expressway Luzon South 4 (SLEx)-Toll Road Expressway Link Luzon Central (CLLEX)IntegratedSouth II Phase Transport System Project Expressway- (CALA) Laguna Cavite ExpresswayQuezon-Bicol (QuBEx) Sur Expressway Camarines Bypass Project Plaridel Road OverheadC-5 Expressway NLEx-SLEx ConnectorRoad NLEX-HarborProject Link Project, toBGC Ortigas Link Road Sta. Monica-LawtonBridge NLEX East Expressway Transit System Rapid toBus BGC NAIA MetroManila Skyway Binondo-Intramuros Bridge (MMS) StageProject 3 Metro Transit 2(Central Corridor) - Line Manila Rapid Bus Luzon Metro Transit 1(Quezon - BRT) Line Avenue Manila Rapid Bus Manila Expressway* to Taguig Manila to Quezon Expressway Transit System Integrated Rapid Personal and Viaduct IntegratedTransport System-North Project Terminal Bridge Estrella-Pantaleon Transit System Rapid Bus EDSA Expressway*Delpan-Pasig-Marikina Expressway Link Luzon Central (CLLEX) II Phase Expressway- (CALA) Laguna Cavite Sur Expressway Camarines Project OverheadC-5 Expressway Project, toBGC Ortigas Link Road Sta. Monica-LawtonBridge Transit System Rapid toBus BGC NAIA Binondo-Intramuros Bridge Luzon 2017 ExpresswayProjects, and Road XX. Major Table Table XX. Major Road and Expressway Projects, 2017 ExpresswayProjects, and Road XX. Major Table Project Project Ten-Point Socio-Economic Agenda oftheDuterte Administration Length Length 180 km 180 km 102 km 180 km 102 35 km 45 km 74 km 16 km 22 km 89 km 57 km 23 km 16 km 91 km 35 km 15 km 45 km 12 km 74 km 18 km 16 km 22 km 89 km 27 km 57 km 36 km 44 km 16 km 23 km 16 km 91 km 15 km 12 km 18 km 27 km 36 km 44 km 16 km 4 km 8 km 8 km 4 km 8 km 8 km 8 km 1 km 8 km 1 km Private/GPH Private/GPH Financing Financing GPH GPH GPH GPH GPH ODA ODA GPH ODA GPH ODA GPH ODA ODA ODA ODA GPH ODA GPH ODA ODA ODA PRC PRC PRC PRC PRC PRC PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP PPP Arangkada Philippinesandthe for ROW Acquisition ROW for Acquisition ROW for For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal For project proposal Under constructionUnder constructionUnder Under constructionUnder constructionUnder Under constructionUnder constructionUnder Under constructionUnder constructionUnder constructionUnder constructionUnder Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction Preconstruction For evaluation For evaluation For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval For approval Status Status TBD TBD Philippinesandthe

Page 51 Page 52 49 excessper day ofP3billion 2017. in Traffic issues. other among routes, certain clog forchallenge huge congestion isa commuterscauses estimated and economiclossestoeconomy the in trucks heavy will, at stop or swerve drivers tricycle Controls over theprivate use of automobiles (andtheir parking) are limited, motorcycles/bus// bychallenged of adequate the lack roads for private vehicles and substandardtransport public facilities. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe at PhP2.4billionandprojected thelossto increase to P6billionby 2030 As insome developed andmany developing countries,majorPhilippineurbanareas are severely Dr. Rene Orfreneo, BusinessWorld, 2017 Photo6:NLEX-SLEXConnectorRoadProject Philippinesandthe 49 A JICA study estimated the daily economic loss from traffic in 2012 (see Figure 36). 50

operability between toll roads. Recommendation 15:Encourage cashless transactions intolloperations andseamlessinter- scale upP2Pbuses,andcomplete the3intermodal transport terminals for GMM. Recommendation Rationalize 14: busfranchises and requirement for vehicle road worthiness, Recommendation 13: network willbeupgraded andexpanded to thehighest qualitystandards. traffic congestion through “engineering, enforcement, and education;” while in the long-run the road Recommendationthe short term, 12:In road-based transportbe improved will by addressing City) to easeMetro Manilacongestion. Recommendation 11: Recommendation 10: Recommendation 9: Recommendations 8: unsolicited bidsto DPWH. Recommendation 7: Dream Plan). Recommendation 6:Complete theroad system intheMetroTransport Manila Roadmap (JICA Lucena, Quezon. Recommendation 5: pace, notonly onLuzonbutintheVisayas andMindanaoaswell. Recommendation 4: and Vietnam.Doublethecurrent percentage ofroads thatare paved. Recommendation 3:Achieveranking thesameWEF for of Roads Quality asIndonesia,Thailand, Recommendation 2: Recommendation 1: in theSenate andhasreceived committee approval intheHouse. The billislisted intheLEDAC prioritylegislative list. Itisinthe2 Source:JapanInternationalCooperation Agency (JICA) Figure 36. Metro Manila Cost of Traffic, PhP Bn/day

Source: in billions

₱ ₱ ₱ ₱ ₱ ₱ ₱ 1.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 7.00

₱ - Buildathird Mactan-Cebubridge. Reduce ground transportation costs.

Construct more skyways inMegaas proposed Manila, inseveralprivate sector Enact theEmergency Powers billto easetraffic. Continue toexpressways build andimproveroads national acceleratedan at Buildonenewbridgeayear over thePasig River. Complete thecontinuousfreeway system from SanFernando, La Unionto

Strengthen theauthorityofMMDA over traffic management.

JICA Complete thehardening offarm-to-market roads inrural areas. Figure 36.Metro ManilaCost ofTraffic, PhPBn/day Complete C6(From Skyway/FTI inTaguigto Complex Batasan in Quezon

2012 Ten-Point Socio-Economic Agenda oftheDuterte Administration nd Reading

2030f PDP 2017-2022 of Commerce andIndustry (PCCI) G.I.A.N.T. S.T.E.P.S by PhilippineChamber Arangkada Publications 50 Arangkada Philippinesandthe

Philippinesandthe

Page 53 Page 54 the prediction thatManilamay become “uninhabitable”may becometrue. 54% of commuter tripsinMegafromManila road to rail.transportationthis kindofa Without system, raillines. This would realize thetargetof theJICA “Dream Plan” presented to NEDA2014 in to convert and the adjoining municipalities in Bulacan, Cavite, Laguna, and may be served by efficient modern public transportation system. kilometersof numbers Megaof population the stations and enjoywill Manila advancedan urban Administration anditssuccessor caninitiate inter-urban network expansion projects thataddsimilar the network ofMetro Manila by theendofDuterte Administration. IftheDutere 1.2 millioncommuters eachwork day. 52 51 1 opened in 1984, MRT-3 in1997, and LRT-2 in2004. to connectDigos,Davao delSurwithTagum, Davao delNorte, adistanceof103kilometers. billion isbeingnegotiated for aPRC loan. A projectplanned. is also forfrom thePNRsouthline toLaguna Calamba, estimated Bicol to costUS$3 The extensionGOJ loan. US$2.4 billion a with is planned Bulacan to oftheline Clarkand Clark Green City have networks similarto Manilabutbetter maintained. (see Figure 37).Singapore boastsoneoftheworld’s bestlight railnetworks. KualaLumpur andBangkok Malaysia, Thailand,andVietnamhave rail national lines inmuchbetter condition thePhilippines than Railroadconsider the PhilippineNational (PNR)toin theworld.one ofthesmallest be Indonesia, Destroyedwar, duringthe systemthat wasnever fully rebuiltnor well Railroadmaintained. experts F. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

When arobust light rail system is combined with thePNR North and SouthlinesthenMetro Manila Towards theendofAquino Administration, three projects were approved thatwilldouble is expected to beresolved when theCommon to otherwise move between the two stations. This challenge to commuters that has faced them for almost a decade The excellentpre-war Tranvia light railwasservice in Manila notrebuiltafter the war. However, LRT- A PRC-funded railroad project isalsobeingnegotiated forsegment planned the initial with Mindanao, Currently, thelong-awaited resurrectionfrom ofthePNRnorthline Tutubantoin Manila Malolos, Prior tothe Philippines had decent WWII railroads and anexcellenturban light rail system inManila. Intra- andinter-urban Railways andBusRapidTransit Article by Richmond Mercurio, Philippine Star, 4,2016. January The terminus of LRT-1 at North Avenue was not connected to the terminus of MRT-3 at Trinoma forcing passengers Philippinesandthe Source:WEF Global CompetitivenessReport (variousyears) Figure 37. Quality of Railroads Rankings, ASEAN Rankings, Railroads of Quality 37. Figure 120 100 80 60 40 20 0 Figure 37.QualityofRailroads Rankings,ASEAN-6 (2008-2017) Station for LRT-1, MRT-3, andMRT-7 becomes operational. 51 These three lines are relied upon to move around - 6 (2008 - 2017) 52

Viet Nam Viet Thailand Singapore Philippines Malaysia Indonesia Photo 8:ProposedMegaManila subway Phase1connectingQuezonCityand Taguig Cityisplannedtostartby Q4 of2019. Sources: websites;reports GPH media various * Unsolicited : City-Digos Segment (TDD) Tagum-Davao North-SouthRailway Project 3) (Segment (southline) North-SouthRailway Project 2) (Segment (southline) North-SouthRailway Project 1) (Segment (southline) North-SouthRailway Project 1) (Phase (central line) Project6 Line LRT Transit SystemManilaEast-Rail Project StationMetro Train ManilaCommon MetroManila Subway (Mega ManilaSubway 1) Phase O&M*and MRTRehabilitation 3 O&M1 Line LRT Extension1 Cavite Line LRT east extensionLRT-2 west LRT-2 extension Project* Rail East-West Project*MRT7 Line North-SouthRailway Project (north(Malolos-Clark Railwayline) 2) Phase North-SouthRailway Project (north(Malolos-Clark Railwayline) 1) Phase Railway 2017 Projects, XX. Major Table Photo 7:MetroManilatrafficandMRT-3 operatingduringrushhour. Project Table 14:MajorRailway Projects, 2017 Ten-Point Socio-Economic Agenda oftheDuterte Administration Length 105 km 105 km 175 km 478 56 km 34 km 19 km 25 km 12 km 23 km 19 km 51 km 4 km 3 km 9 km Financing ODA ODA GPH GPH PRC PRC GOJ GOJ GOJ PPP PPP PPP PPP PPP PPP Arangkada Philippinesandthe For project proposal Under Construction Under Under Construction Under Preconstruction Preconstruction Preconstruction Preconstruction 2018 Budget 2018 For approval For approval For approval For approval Underway Status Philippinesandthe TBD TBD TBD TBD

Page 55 Page 56 Secretary-General BanKi-moonunderlined theimportanceofhaving accessto theinternet: broadband penetration canlead to a 1.38 percent increase GDP. in a country’s In2015, United Nations infrastructure needthePhilippinesfaces. The Worldestimated Bank a 10-percent that increase in G. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe slow speed andhigh costalsoraise thecostofdoingbusiness. Thehigh cost growing rapidly butataslower pacethanneighboring ASEAN countries.The a barrier to realizing thedigitaldividend for mostcitizens.Internet accessis

Modernizing telecommunication infrastructureand alsomostchallenging isoneofthemostimportant While Filipinosincreasingly are ableto afford devices itsspeedand costremain thataccesstheInternet, space for the publicgood.” cooperate to consider the implications ofthis andensure that the Internetevolves into aninclusive anticipated that there will be six times asmany devices connected ontheInternet as people.We must capacity. Considerthemodelusedfor theprivatization ofoperations ofLRT-1. Recommendation14: Maximizetheoperation of MRT-3, includingrehabilitationand increased Bridge. RecommendationDevelop 13: mass transit systems forDavao. Cebuand thirda Build Mactan-Cebu Recommendation 12: new line(LRT-4 SantaMesa-Taytay orLRT-6 Niog-Dasmarines),andtheLRT-2 West Extension. Recommendation 11:DuringtheDuterte Administration,the Megastart Subway,Manila oneother Recommendation 10: Recommendation 9: with astop attheCommonStation. Recommendationfasta 8:Build train connectionbetween NAIAand Clark International Airport south to Bicol.Plananextension to LaUnion. Recommendation 7:UsingthePNRright-of-way, create amodern train service north to Clarkand near expressways andlight rail. Reduce provincial busesentering NCRfor decongestion. Recommendation6: Complete theinter-modal provincial busterminals north and southof Manila, Recommendation 5: Recommendation 4: island regions. Recommendation 3:The railnetwork should beexpanded by developing newlinesinthemajor particularly inurban areas. intersections,signalized (e.g., advanced detection systems, incidentdetection),installed, shouldbe systemstransportintelligent of use the as such RecommendationTrafficsolutions, 2: engineering should beexpanded by developing newlinesinthemajorislandregions. convenience, and reliabilityof andbusrapid transit (BRT) systems. The rail network transport, should beencouraged by ensuring the accessibility, availability, affordability, adequacy, Recommendation 1:Thedesired shiftfrom private totransport,emphasis onmass public with country. connectivity. There was aclearclamorto speedilyinfrastructure implement projects across the Telecommunications “Informationcommunicationand technologies havereached is it 2020, walk intolife....By of every Philippinesandthe BuildtheCommonStationwhere MRT-3, MRT-7, andLRT-1 connect. Introduce busrapid transit systems inMetro ManilaandCebu. Privatize through long-term concessionsalllight andinter-urban rail. Complete theLRT-1 SouthExtension, LRT-2 EastExtension, andMRT-7 . Improvement oftransport networks across the countryto improve Arangkada Publications Sulong Pilipinas PDP 2017-2022 internet costsare muchlower. speed. Thespeedofinternetfarin thePhilippinesisnot away fromof IndonesiaandVietnamwhose that Philippines to bemuchhigher than Indonesia,Malaysia, Thailand,andVietnam. of Internet inthePhilippinescanbeseenTable 15which shows thecostofmobilebroadband inthe for bothparties.Globeand PLDT-Smart agreed to IPpeering inmid-2016. costs cheaper to leading fees, transit internet reduce to traffic overseas)of exchange than (rather local reformAnother whereprotocolInternetpeering, allow is reduceto firms telecommunication(IP) costs broadband telecommunicationinfrastructure sites suchascell amongtelecommunication companies. access modelwouldopen An require 7925 toRA amending widenaccesstoas well thecables sharing as users. downstream to rates high charge they and cables, international optic fiber the access to qualify increased 111%inuploadspeed(10.37Mbps)from 2016levels. report, fixed broadband in the Philippines increased 57% in terms of download speed (12.43Mbps) and reform introduced by President Fidel Ramos. According to Ookla’s recent SpeedtestIndex Global following consolidation of the industry, which reached as many as five players following the competition In terms of Internet speed however, high costbroadband services in thePhilippines do not buy high Lack of openaccessisonereasonLack for7925 Under RAonly high cost. thetwocompanies dominant nationwide, services broadband mobile and fixed of providers main the are companies two Only Source: Akamai StateoftheInternetReports,Q12011-2015 Source: TechInAsia, December30,2015ascitedin Figure 38.Average Download Speed(inMbps) ofBroadband in Select AsiaPacific Countries: ASEAN-6 +India(2011-2015) Table 15.Cost ofMobileBroadband inASEAN (2015) Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada policybriefBroadband Arangkada Philippinesandthe Philippinesandthe

Page 57 Page 58 construction ofnewcellsites. proposed billontheNTC reorganization would independence. alsostrengthen theagency’s and allowplayerssmall to grow, promote innovation,and protect consumer welfare andrights. The allow themto continueto investigate thecase. joint venture telecommunication firm with Telstra (Aus). The PCC has appealed to the Supreme Court to Corporation,700MHz Miguel spectrum assetsofSan after thelatter’sto plan usethespectrumfor a new determining whether the Competition Act was violated when the two telecommunication firms acquired possibly usingthefiberopticcableofNational GridCorporation ofthePhilippines(NGCP). Information andCommunicationsTechnologyBroadband (DICT)National isprioritizing a Network, Telecommunications Commission(NTC) Charter. of the Philippines, amendments to andamendmentsto CA 146 the PublicServices Act, the National the industry. These include amendmentstoTelecommunications RA7925 the Public Policy Act Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Telecommunicationcompanies have cited excessive andslowbypermitting LGUsdelay that The NTC shouldlower barriers to entry,create foropportunity equal differentplayers to participate The PhilippineCompetitionCommission (PCC) hasbeenblocked byfrom theCourtofAppeals To improve broadband service for government agenciesandremote areas,of theDepartment rapidWith changesintelecommunication technology, there isaneedto update thelaws governing innovation incommunicationsandconnectivity. Recommendation 5: Recommendation 4: similar to Indonesia, Malaysia, Thailand,andVietnam. Recommendation 3: competitive withotherASEAN economies. Recommendation 2:Increase theaveragebroadband download speeds toupload and levels industry by allowing theentryofforeign companies. Recommendation 12:Increase competition ofthetelecommunication Recommendation 11: Recommendation 10: Recommendation 9: interventions. to provide the overallpolicy direction infrastructure andguide all roll-outand development broadbandnational cybernational plan, and othersuccessor ICT master securityplan, plans Recommendation 8: and processes onpermits,clearances, andfees issuancesfor telco facilities. Recommendation 7:Work withtheLGUs to streamline andharmonize government requirements good governance. Recommendation e-government 6:Continue to enhance the country’s system as avitaltool for Rec with thebestinregion. telecom market. basis andpublicizepricesinorder to introduce effective competitioninthebroadband or telecommunications market (e.g.backhaulandbackbone facilities) onanon-discriminatory ommendation 1: Philippinesandthe Adopt anopen accessmodel(localIPpeering,shared infrastructure). Improvement of internet and telecommunications services to becompetitive Improve spectrummanagement;considerauctions. Reduce the costofbroadband service to levels competitive withand Formulate necessary mastersuch astheDTTB plans, migration plan, Adopt andenforce openaccessinvarious segmentsofthe Update laws andregulatory framework to promote investment and Implement theNational Broadband Plan. Sulong Pilipinas PDP 2017-2022 Arangkada Publications 57 56 55 54 53 local water districts, eachwithitsown plans,rules,andpolitics. regulatornational and ischaracterized by theinvolvement ofseveralagencies andamyriadnational have contracted with some cities to supplywater. bulk However, thewater supply sector lacks asingle without hazard to theenvironment andpublichealth. challenge is to store and deliver sufficient water for over 100 million citizens to economicgrowthand the everydayand to life ofFilipinos.Although rainfallis adequate the country, in dispose the of wastewater H.

the 17 Urban water supply has been privatized in Metro Manila and a few other cities, and private firms private and cities, other few a and Manila Metro in privatized been has supply water Urban The dependablesupply anddistributionofwater for urbanliving aswellas agriculture iscritical existing programs, like the4Pprogram andonlinelearning. “access device”an establish subsidy scheme for broadbandintegratedusers. be This can to Recommendation 18: e-platforms suchasdistancelearning, telehealth, andtelecommuting. Recommendation 17:CreateCountryside” a“Smart inwhich ruralareas are developed through Recommendation 16: Recommendation 15: Philippines. RecommendationTelecommunications7925 Public the 14:AmendRA Policy Actof the PCC intheSanMiguelsaleofspectrumassets. Recommendation 13:The Supreme Court should prioritize a decision on theTRO against the Source: National Broadband Plan ofDICT Source: National Broadband PlanofDICT This reform legislation isbeing considered in the committees in bothchambers of HB 5828hasbeenapproved onsecond reading intheHouse.TheSenate hasnot yet heldahearing. Water This reform legislation isbeing considered inthe committees inbothchambers ofthe17 th Congress. 53 The BBA The servicesinitiativesbring broadband that better the to Philippines. The open life economic The BBA is BBA The any technology. reliable, services to and affordablebroadband fast, access a The BBA

The JFC supports JFCsupports The the Better Broadb      Better Better coalitionBroadband is a Alliance a choice consumers;freedom of for p e fosters innovation;fosters and a p AmendCA146orthePublicServiceAct. dapts romotes nsures llows rotects Incentivize broadbandusers to narrowdivide.digital the TheGPHwill - enhancingopportunities all.for

Amend theNTC Charter.

growth and andevelopment, enabler of knowledgea believe envision

a policy regulatory and that: environment

democratic accessto technology thatenhances marketdynami to innovation and encourages c

an open internetwhere a consumer rightsand welfare.

effective competition, a level serviceeffective playing a competition, field for providers, and s s that efficientthat broadband connectivity driver key is a of Box 2.Better Broadband Alliance a Philippines where every individual, home, and business has business where home,individual, and every Philippines a

and Alliance. Ten-Point Socio-Economic Agenda oftheDuterte Administration

ll voicesand welcome;are ideas

ollaboration of stakeholders committed of 55

among stakeholders; nytime, anywhere, using anywhere, nytime, - based society,and can 57

54

to supportingto sm and Philippine

56 Arangkada Philippinesandthe th

Arangkada Publications Congress. Philippinesandthe

Page 59 Page 60 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe as a PPP project, whichPPP project, as a wassuspended by theDuterte Administrationwhich hasshifted to ODA funding. second KaliwaDam to bybuilt be 2020. The Aquino Administrationbegan bidding processa for thedam

farmers to bemore productive andreduce impactofclimate change. Recommendation 10: economies ofscaleinwater distributionandsewage. frominterference political removingand toobstacles privatizationconsolidation toand achieve Recommendation 9:Improve operationsof Water andmanagement Districts bythem insulating water serviceinthecountry aswell asto addmore competition to thebiddingprocess. Recommendation 8:Openthewater sector to foreign investors to increase competitionandenhance for Metro Manila. Recommendation7: Complete theKaliwa Damproject to add a second dam water resource supply Recommendation 6: and floodcontrol. developregulateand water resources inthecountry,waterincluding supply,sewerage, sanitation, Recommendationa Water 5:Enact Reform Act to andlegal establishaninstitutional framework to institutional gaps andweaknesses. such and challenges as climate variability affecting water supply andavailability, aswell asaddress operationalizationand of Integrated Water Resourcesto Management respond to currenttrends Recommendation 4: Recommendation 3: treatment facilities inwater districts. Recommendation 2:Increasingof domestic,commercial thenumber wastewaterindustrial and and project/program implementation. creation of an Apex Body act as that will the single leadagencyto oversee/coordinate overallpolicy address theweakand fragmented of thewaterset-up institutional resources sub-sectorthe with RecommendationLawa Enact 1: Creating Apexan Body for theWater Resources Subsector to Metrodepends foron asingle Manila dam,Angat, its water. almostall called for Planning the smaller basins andgovernance” PhilippineDailyInquirer, June27,2017 WaterBasin Management (IRBM).” –formerDTI Undersecretary Ernesto Ordoñez, “Waterrivercrisis, causes)is imperative it we approach implementan successfully many usedin countries: Integrated “To address our water crisis(where anaverage daydueto water-related of73people die every Philippinesandthe Sources: GPH websites; various media reports various GPH websites; Sources: RiverPump Project Irrigation Chico Leyte Embankment Tide Project Dam Project Source-Kaliwa Water New Centennial Project Supply Water Bulk Bulacan Improvement Channel River III Pasig-Marikina Phase Project II Project Phase Main Drainage MetroManagement Flood Manila Project 2017 Projects, Water Major XX. Table Amend the Water Code to provide a legal framework for the institutionalization Allow themarket to determine thewholesale priceofwater. ImplementtheNationalSewerage andSeptageManagementProgram. Upgrade the existing irrigation network andfund its rapid expansion to assist Project Table 16.MajorWater Projects, 2017 AIIB/World Bank AIIB/World PPP, and PDMF PPP and PRC PPP orODA PPP Financing ODA GAA GAA ₱ ₱ ₱ ₱ ₱ ₱ $500 Mn$500 24.41 Bn 24.41 18.72 Bn 18.72 7.55 Bn 7.55 7.90 Bn 7.90 2.70 Bn 2.70 359 Mn Cost Preconstruction Under construction For project proposal Preconstruction Under construction Under construction For approval Preconstruction Arangkada Publications PDP 2017-2022 Status D. Extractive Industries C. LandAdministration B. Tourism Agribusiness A. (Points 5and6) Rural Development Chapter 4: 69 68 65 62 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 61 Page 62 A. Agribusiness A. address and investments, encourage to tenure land bottlenecks inlandmanagement andtitling agencies of security Ensure 6: Point and rural enterprise productivity andrural tourism. agricultural increasing towardsdevelopment chain value and rural Promote 5: Point Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe market inefficiencies;and(6)poorextension services. land (5) insurance;crop inadequate (4) finance; to access poor (3) chain; supply and logistics poor (2) 10% to GDP in 2017; yearthe last inwhich it produced more20% thanofGDPwas 1969(seeFigure 39). SME development shouldalsobepursued,especially inhandicrafts using native materials. on agriculture for theirlivelihood. of thepoor are ruralresidents. Over Filipinos, closeto12 million one-third ofthetotalworkforce, rely citizens still live in rural areas. Significantly from the vantage of development and inclusive growth, 73% Among the main challenges toAmong themainchallenges agriculture growth are:to (1) ability utilizeoverseas market access; Despitetoimportance size and its economy, the the overall agriculture sector contributed lessthan Agriculture, mining,andtourism, are thesectors the highestwith potentialfor growthin rural areas. Although thePhilippines is becoming amajorityurbanized country atafast rate, close to halfof its Photo: DolePhilippinespineappleplantationSource: The ProvincialGovernmentofSouthCotabato Philippinesandthe and sugar. potential and actual Top nuts. and fruits, Philippine exportsproducts,coconut cacao, banana, include coffee,marine products, mango, pineapple, fish, coffee, rice, of exporter leading a become has - billion Philippines werethe 2014, whilein 6.9 billion US$ importswere26 US$ at – Vietnam US$8.7billion. availablefor agriculture -exports fourof agriculturalof thePhilippines.Exports timesthat goods from region.size close toa population AcountrysuchasVietnam-with less land with thePhilippinesbut

Philippine agriculturalexports are thelowest oftheASEAN-6below and 5% ofthetotal from the raw materials through increased value-adding ofproducts withhigher market value. while existingbe encouraged ones will to increase production andto gobeyond producing merely Recommendation 3: and aframework for capitalandO&Mfinancing ofirrigation projects willbeformulated. Recommendation 2:Createirrigation an master to plan setthedirection for irrigationdevelopment from economiesofscale. for land and that potentially affect small farmers’ access to credit and preclude their ability to benefit Recommendation 1: Sources: WTO and FAO (for agricultural land area as of 2014) of as land area agricultural WTO andFAOSources: (for Viet NamViet Thailand Singapore Philippines Malaysia Table b1. Agricultural ASEAN-6, and exports, food goods US$ Bn, 2014 Indonesia Countries Figureb1. Percent Contribution of Agricultureto GDP,ASEAN

Source: World Source: % of GDP 25 10 15 20 0 5 2006 x s t r o Exp 25.8 39.7 11.9 30.1 44.1 6.9 Figure 39.Percent Contribution ofAgriculture to GDP, ASEAN-6, 2006-2016 Bank Table 17.Agricultural GoodsandFood Exports,ASEAN-6, US$Bn,2014 2007 Agricultural goods Imports 17.9 16.2 14.6 20.2 22.2 8.7 2008 Thereneed to isa review government programsdistort that marketcompetition New agriculture, forestry, and fisheries (AFF) enterprises should be developed, Trade Balance Trade 2009 23.5 10.0 21.9 -2.7 -1.7 7.8 2010 x s t r o Exp 22.3 30.8 10.6 26.0 35.4 2011 6.3 Ten-Point Socio-Economic Agenda oftheDuterte Administration 2012 Imports 12.7 12.6 13.3 16.5 17.0 8.2 Food 2013 Trade Balance Trade 18.3 18.4 -2.8 -1.9 9.6 9.5 2014 - 6, 2006 6, 2015 agricultural exports agricultural exports, %exports, of total Agricultural food - 2016 Arangkada Philippinesandthe 2016 86% 78% 89% 91% 86% 80% PDP 2017-2022 Philippinesandthe Area, in ('000 ('000 in Area, Indonesia Vietnam Thailand Singapore Malaysia Philippines Agricultural Agricultural Ha), 2014 10873.7 22110.0 12440.0 57000.0 7839.0 0.7

Page 63 Page 64 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

red hot chilli,squashandtobacco. cacao, coffee, mango,marineproducts,pineapple, mongobeans, peanuts, Recommendation 21:Give priority to high value exportwinner crops suchasavocado, banana, promotion, andbroader trade facilitation measures. Recommendation 20:Improve market information, technology transfer, marketing,export utilization. Recommendation The 19: government mustpursue clearer policy/strategy to maximizeFTA under-served market segment. Recommendation 18: RecommendationReorganize 17: thePhilippineCrop InsuranceCorporation Recommendation 16: technology, andimproved market information). focus onprograms to reduce agriculturalrisks provision (e.g., basic infrastructure, of appropriate Recommendation 15: effectiveness anddetermine appropriate measures Recommendation The 14: Agri-Agra Law should berevisited to identify factors limit its that delivery mechanisms The governmentdevelop will innovative andimplement products loan responsive with credit Recommendation 13:Providefarmerssmall fisherfolkand easy toaccess affordable formal credit. promoted. provided are that fisherfolk and agriculturalwith insurance asweather index-based andarea-based yieldindexinsurance farmers be will small of number the Recommendation 12:Increase (e.g., roll-on roll-off nautical highway) watertransportInter-island chain. valueagricultural the tofisherfolk and farmers small connect to Recommendation 11:Farm-to-marketroads, bridges,tramlines,railwaysand constructed shouldbe connect AFFenterprises to markets andotherupstream serviceswillbeestablished. marketing schemes. New forms of linkages suchascontractfarming andcorporate farmingwill that RecommendationAFF-based 10:Expand enterprises throughinnovativeand new production and DA includemangofor coffee, dairycattle, abaca,andrubber, banana,andcacao. Commodities can bedevelopedthat basedonvulnerability, suitability, andvalue-chainanalyses of Recommendation 9:Diversify intohigh commodities with value-addingmarket and potential. good farm andfisherypractices, indigenousandlocalknowledge, andappropriate technologies. Recommendation 8:TheDAState shouldtap Universities and Collegesto hasten thediffusion of professional extension workers thatwillprovide technical andbusinessadvisory services. Recommendation 7:Strengthenthe AFFextension system through theengagementof pool of a Recommendation 6: systems andretrofit existing ones. Recommendation5: Accelerate constructionof disaster- and climate-resilientirrigation small-scale advantage ofspecificareas. Recommendation4: Develop anintegrated color-coded agriculturalmap to identify the comparative other relevant laws as well as 8175 RA or 1995 of Act PCIC the Revisedof Charterthe through fisherfolkamending and stockits authorized capital Php 2billion to cater more effectively to thedemands farmersof small Philippinesandthe Facilitate theuse ofappropriate farm andfisherymachinery andequipment. Raise investments inR&Dfor production andpost-harvest technologies. Ratherloan quotasinAgri-Agra, thanmandating government effort should Pursue bold initiatives on crop insurancereaches that a large swath of an . Arangkada Publications PDP 2017-2022 (PCIC) and increaseand 58 visitors in2014,remains thebackbone oftheindustry. international visitors from internationaltourists. Yetthe countryisregional laggard the ASEAN-6 among inattracting contributesIt growing a share ofGDP,reaching 7.8percentin 2014, of which were $5billion receipts B. Tourism

activities to supportingtheagricultural sector. borrow upto Php100,000witha2.5% monthly interest rate. their businessasopposedto borrowing from unofficialchannels.Borrowers may Tourismsourcemajor isa 2015 or12.5%oftotalin million Philippines, 5 the in of jobs employment. develop rural areas andthecountryside. and integration inthesupply chainto fully develop thepotentialof the agricultural industry to financing, as incentives, technology, such irrigation, post-harvest facilities, farm-to-market fishermen roads, improved logistics and farmers to services support of Delivery Recommendation 32: empower rural MSMEs. Recommendationthe Pondo 31:Expand saPagbabagoPagasensoat (P3)programof theDTI to empower thebottom ofthepyramid. Recommendation Continue to 30: expand andstrengthen theGo Negosyo Program under DTI to in collaboration withtheDA andtheAgriculture Training Institute. Recommendation 29: measures. extension services, accessto credit,investment, farm rehabilitation,other povertyand alleviation Recommendation 28:Deployportion ofcocolevy a fundstofarmers aidcoconut to enhance Recommendation 27: increase farmer income. market roads, coldstorage, andirrigation, to facilitate thedistributionof agriculturalproducts and Recommendation 26:Improve agriculturalsupport infrastructure services, and such asfarm-to- terminals, coldstorage, andfood processing factories. farm-to-market roads, post-harvest processing facilities, irrigation, SPSinspectionfacilities, food Recommendation 25: Recommendation 24: Recommendation 23: crops like coconutandpalmoil. Recommendation 22: The P3Program oftheDTI assists start-ups andMSMEsto find capital to jumpstart guiding andcoordinating extension unitsandstrengthen links to R&Dinstitutionsandthinktanks. (see Figure40) Continue the Kapatid MentorContinue theKapatid ME program 58 Integrate smallfarmers into larger enterprises. The Department of AgricultureThe Department RefocusPhilippines (LBP) of the Land Bank the Governmentthe furtherexpansion shouldcontinue of high value-added Policies and projects should modernize farm infrastructure, including . Domestic tourism,. estimatedday54 million at andovernight Ten-Point Socio-Economic Agenda oftheDuterte Administration (DA) bringorder to extension services by (KAMMP) to theagriculture sector Arangkada Philippinesandthe from universal banking Sulong Pilipinas Arangkada Publications Philippinesandthe

Page 65 Page 66 the sector isimmense. tobeginning Philippines isjust internationalimportant becomean tourist potential destination;the for class casinoandentertainment complexes now compete withLas Vegas.and Singapore. Macau, The areExhibitions (MICE) areas new for expansion.gatewayNear themain three airport, world new rollout offacilities under TIEZA,theexpansion ofhotel rooms, andotherongoingreforms. roads. Also importantwas theresolution of the USandEUdowngrades of GPH regulatory systems, the improve infrastructure in tourist areasthe constructionofoverenabled that 2,500 kilometers of tourism (1) were tourism operations of border control international state agencies in international airports, and (4) convergence programs to supporting reforms significant Some liberalizationof airaccess,(2)removal 41). of theCommon Carriers Taxand Gross (3) 24/7 Philippine Billings, Figure (see WEF the by Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Medical tourism, retirement programs, cruise tourism, Meetings, Incentives, Conventions, and The competitivenesstourism ofPhilippine improvedfrom 2011 to94th in measured2017, as 79th in Philippinesandthe Figure 41. PhilippineIndex, Travel Competitiveness2011and 2017 Source: Travel and Tourism Competitiveness Tourism and Travel Source: CULTURAL RESOURCES AND BUSINESS TRAVE HUMANRESOURCES AND LABOUR MARKET Source: ASEAN Secretariat ASEAN Source: Figure b2.

PRIORITIZATION OF TRAVEL & TOURISM in millions GROUND AND PORT INFRASTRUCTURE PORT AND GROUND 35 10 15 20 25 30 0 5 TOURIST SERVICE INFRASTRUCTURE SERVICE TOURIST OVERALLCOMPETITIVENESS INDEX AIR TRANSPORT INFRASTRUCTURE TRANSPORT AIR ENVIRONMENTAL SUSTAINABILITY ENVIRONMENTAL Figure 41.PhilippineTravel Competitiveness Index, 2011 and 2017 Malaysia Figure 40.International Tourist Arrivals, ASEAN-6, 2010-2014 INTERNATIONAL OPENNESS INTERNATIONAL International tourist PRICE COMPETITIVENESS BUSINESS ENVIRONMENT SAFETY AND SECURITYSAFETY AND NATURAL RESOURCES NATURAL HEALTHHYGIENE AND ICT READINESS Thailand Report, WEF WEF Report, 2011 and2017

0 arrivals, arrivals, Singapore 20 ASEAN 2010 Indonesia 40 - 2011

6, 2010 6, 60 2012 - Viet Nam Viet 2014 80 2013 2014 100 Philippines 2015 2011 (of 139) (of 2011 (of 163) 2017 120 140

investors andLGUs. tourism economic zones must bepartof the overalldevelopment of plans Recommendation3: Expandandimprove road networks to andfrom tourism sites. Access to/from Tourism Competitiveness Report. Recommendation 2:Improve the low-ranked indicators for the countryinWEF Travel and will includemajorinvestments intourism infrastructure until2022. RecommendationTourismthe National 1:Implement Development(NTDP) Plan of the DOT, which

Source:CasinoNews Travel Collectables Photo: Artist perspectiveofOkadaEntertainmentComplexinParañaqueCity, Philippines. Source: “ThebestbeachesofthePhilippines” Ten-Point Socio-Economic Agenda oftheDuterte Administration by GregBloom.LonelyPlanet, April 2017. Arangkada Philippinesandthe Arangkada Publications Philippinesandthe

Page 67 Page 68 are needed to unshacklethelandmarket inthePhilippines. distribution has created a newclassof landed poor. Strong measures limiting collateralized lending in finance, and discouraging investments in agricultural production. Land reform land Afterdecades, thecountry’s six remains incomplete, creatinguncertainties for agribusiness, land market. Astaggering11 million parcels of propertiesuntitled litter a countryof 24 million parcels. the in efficiencies these of Indicative capital. needed of sector rural the starve and climate investment C. LandAdministration Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

h poet rgt rgm i te hlpie cnan mjr eiinis ht nemn the undermine that deficiencies major contains Philippines the in regime rights property The Recommendation 21: Recommendation 20: Recommendation 19: Recommendation 18: Recommendation 17: Recommendation 16: of theirsafety andsecuritywhile travelling thePhilippines. RecommendationEnsure 15: theincrease ofsecuritypresence inkey touristareas to assure tourists measures to safeguard heritagesites andvulnerable groups. licensure, governing Recommendation 14:Tourism centers and sites of theTDAs,appropriatein place andput mitigation regulations and legislation accreditation andcertificationoforganizations andindividuals. conflicting Review Recommendation 13: Recommendation 12: to promote direct flights andshipcallsto secondarygateways. Recommendation 11:Improve marketaccess development programs for airlinescruise lines and including cruiselines. the DOT’sCruise National Tourism Developmentfrominputs and with Plan theprivate sector under identified as tourism cruise for seaports priority for funding ProvideRecommendation 10: at NAIA. infrastructureAsia-Pacificplan the and development,particularlyin position addresstocongestion Recommendation 9:Prepareaviation thePhilippinenational strategy relative to itsstrategic to beheadedby theprivate sector to bemore competitiveother ASEAN with tourism advertisements. Recommendation 8:Improve marketing andadvertisement ofthePhilippinesandallowthis project needs oftheindustry. Recommendation 7:AmendthePhilippineRetirement Actto make itconformthe dynamic with Recommendation 6: accreditation rulesundertheTourism Act. residentslocal than byordinancesissuing to preventexploitation of tourists implementing and RecommendationReduce 5: differential discriminatoryand chargesarethat higher for tourists more direct international flights inkey regional areas. transport infrastructure andhotels by promoting key tourist regions withinfrastructure and Recommendation 4: Philippinesandthe Promote professional tourism training andeducation. Develop meetings,conventions andexhibits market withimproved air Promote initiatives inembracing qualitystandards. Enhance humanresource capacityandimprove servicestandards. Expand product development initiatives. Attract tourism investments andimprove businessenvironment. Pursue travel facilitation initiatives. Intensify transport infrastructure development. Issue long-stay visato attract long-stay tourists andpotential retirees. of Commerce andIndustry (PCCI) G.I.A.N.T. S.T.E.P.S by PhilippineChamber Arangkada Publications 59 desecrates theenvironment andpays notaxes. internationalstandards, themineralwealth exploitedof thecountryisbeing bymining that small-scale unrealized. manufacturingsector. For thepotentialfor themostpart, theminingsector inthePhilippines remains and nickel being75%ofthetotal Initiative Report 2014 estimated Philippinemineralresources to reachwith copper, US$1.4 trillion gold, countries for mineraldevelopment on thebasisofitspotential. The Extractive Industries Transparency development. The Fraser Institute of Canada has ranked the country amongthetop ten mostattractive create jobs inrural areas, increaseand localgovernment national revenue, andsupportcommunity D. Extractive Industries

torepurchase thepatent. Thebillremoves thefive year restriction. which beararestriction that thesellerhasaright for five years after thesale In the absence ofdevelopingthe absence In well-regulateda large-scalecomplies with mining industrythat its for substitutes import as ore of processing local more from benefit also could country The of high-valueThe Philippines hasanabundance mineralresources can bedeveloped that to in rural area. credit, andcreateto capital make investments, create jobs,increase productivity, andreduce poverty immediately tradeableand bankable, provide farmer entrepreneurs the much-needed access to RecommendationPass 4: theAgriculturalFree PatentReform Actto make agriculturaltitles land restrictions onsellingormortgaging newly redistributed land. Recommendation 3: the sustainabilityofon-farm employment andoverall rural development. Recommendation 2:PassActLand Use theNational to protectprime agricultural tolands ensure the through conflicts use National LandUseAct. land long-standing address and uses land on laws national consolidate Recommendation 1:Address theurgency to provide rationalizedin thecountry,use planning land Several millionfarmers onparcels offormer publiclandholdagricultural free patents forfifty years with no changes except by mutual agreement. Recommendation countries. APEC all by imposed Average Effective Tax Rate (as Rate Tax Average Effective large of ownership foreign 100% allow Recommendation development interests social and strategic, economic the given Philippines’ priority anational as industry mining Recommendation Recommendation transparency in revenue payments and sharing in themining, oil and gas 3 Recommendation Recommendation livelihood in the ruralareas and with the agenda of ruraldevelopment placed in the So

Source:SONA 2017 (July 24, 2017) cio

- Economic Agenda makes the pursuit of responsible mining all the more important. important. more the all responsible of mining the Economic Agenda makes pursuit the Philippines a abroad processing for nations foreign to mineralresources Although it cannotAlthough denied be that the mining industry provides many opportunities of

Figureb5. Philippines' Mining GoodsExportsDistribution (2016) Source: PSA 59 Copper Metal

Iron Ore Agglomerates Ore Iron 1 2 5 4 3 : Institutionalize the Extractive:Institutionalize Transparency Industry improving Initiative by : Development of a major environmental and socially responsible large socially and environmental amajor of Development : : Guarantee contracts for mining concessions and conditions relating to FDI relating conditions and to FDI concessions mining Guarantee: for contracts : Review: large reset for framework fiscal and the : Ease: restrictions

Figure 42.Philippines’MiningGoodsExportsDistribution

Limits on landholdinganditsconsolidationshould be lifted,with along

in the form of consumer goods. consumer of thein form , 5.20% Concentrates

21.59% (see Figure 42). Copper

measured by the IMF) is not higher than the average AETR AETR average the than higher not is IMF) the by measured , 4.45%

- scale mines, excluding ownership of land. land. of ownership scale mines, excluding of Foreignof Directlarge Investment in Ten-Point Socio-Economic Agenda oftheDuterte Administration Gold , 2.03% ” 3

Chromium Ore Chromium Others nd importing them back to back them importing nd - scale mining so that the scale so mining

industries. , 66.42% Arangkada Philippinesandthe , 0.31% - Arangkada Publications PDP 2017-2022 scale mining toscale mining

Philippinesandthe

10

- - Point scale scale

Page 69

import substitutes instead of importing processed metals as i processed as metals importing of substitutes instead import metallic products, the Philippines could also benefit frommining and local processing of ore as for demand domestic and economy growing its With Philippines. the for majormarkets as metallic p metal, and ore, processed mineral its export to the Philippines for markets would welcome and develop, and, in the absence of having such resources, are potential d crack the with D. Extractive Industries Extractive D. supports: President measure the growth. growth. sector geographicin areas wherethe poorest have not benefitted fromrecent urban foregone expansion of thetax base and tax revenue, and foregone development of an industrial the by lost Philippines has opportunities aresult, of value theAs “…dismal, utterly not disappointing.” as industry if mining o

Page - 70 away with mining but find ways to pursue responsible and safe methods of mining 60 methods ofmining,ameasure thePresident supports: the expansion ofresponsible miningare hopedfor. encourage that policies receiveconfirmation, to uncertainty.failure great Following her faced industry Exports by value fell by 50%from 2014to 2016 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Even more alarming for the mining sector, with the entrance of a new government came government anew of entrance the with sector, mining the for moreEven alarming The Philippines is abundant high negotiable otheractivities that adversely affect one way oranother. And this policy is non The protectionenvironment of the must be made prio a “Responsible, regulatedand sustainable development is what we advocate and require. Anational newspaperhas described the performance of the Philippines in developing its The Philippines should not simply do away with mining but find ways to pursue responsible and safe administrationthe new With activist anti-mining an naming toposition ofDENRsecretary, the the Since July 2012 a moratorium on approvals of new mineral production permits has been inplace. back to the Philippines inthe form ofconsumer goods.” and exportationmineralour of resources to foreignfornations processingabroad them andimporting one way oranother. And this isnon-negotiable...If policy possible, we shall put astop to the extraction the environmentand all aheadofmining otheractivities that mustbemade apriority adversely affect products… finished into materials raw our process Responsible, regulated toand sustainable development is Philippines what we advocate the and require. The protection in of here right establishments by allAPECcountries. the that so mining large-scale forAverage Effective Tax framework Rate (asmeasured by theIMF) is not higher than theaverage fiscal AETRimposed the reset and Review Recommendation 4: 100% foreign ownership oflarge-scale mines,excluding ownership ofland. Recommendation 3:Easerestrictions of Foreign Direct Investment inlarge-scale miningto allow development interests priority givenscale miningindustryasanational thePhilippines’strategic, economic and social Recommendation 2:Developmentof amajorenvironmental and socially responsible large- transparency inrevenue payments andsharinginthemining,oilgas industries. Recommendationthe Extractive 1:Institutionalize IndustryTransparency Initiative by improving Source: SONA 2017(July24,2017) Figure b4 “I call on ourindustrialists,investors [and]commercial barons to putupfactories andmanufacturing Figure b.4 MineralProducts Exports in the Philippines Source: PSA Source: Philippinesandthe 2500 3000 3500 4000 4500 1000 1500 2000 500 - down on the mining industry. 0

… shows a sharp decline mineral in products exports beginning 2014.

If possible, we shall put a stop tothe extraction and exportation of our 1990 1991

1992 1993 Figure 43.TheMineral Products ExportsinthePhilippines Growth ValueUS$in million

1994 been incalculable in terms of foregone additional employment, foregone additional been terms of in incalculable 1995 1996 1997 1998 1999

2000 - 2001 countries other that most resources value mineral 2002 (see Figure 43). However, T However, 2003 2004

60 2005 2006 2007

he Philippines should notjust simply 2008

2009 sector. manufacturing its for nputs 2010 2011 rity ahead of mining and all and mining of ahead rity 2012 2013

Arangkada Publications PDP 2017-2022 2014 2015 2016 -100% -50% 0% 50% 100% 150% 200%

roducts to to roducts - centered centered , a -

processing andlimitingraw ore exports. Recommendationof responsible 8:Implementation value-addedlocal miningwith suchas the fundto available to supportdevelopment oftheminingindustry. government receives (25%oftotal revenue)each year investedinteresthis fundwith in income of Recommendation 7:SetupanewMineral WealthFund with50% of the revenue the national 6 monthsofreceipt to LGUs andIPs. levelof 50%to retained be bygovernment thenational increased and levelof 50%to paid within be Recommendation 6:Revise the revenue-sharing arrangements withLGUs and IPs with areduced fifty years withnochangesexcept by mutualagreement. Recommendation 5:Guarantee contracts for mining concessions and conditions relatingto FDI for Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Sulong Pilipinas Arangkada Publications Philippinesandthe

Page 71 Page 72 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Philippinesandthe E. D. C. HealthCare B. BusinessProcess EducationA. (Points 7and10) and ReproductiveHealth Human CapitalDevelopment Chapter 5:

Risk Reduction Environment andDisaster- Reproductive Health Management (BPM) 84 83 80 78 74 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Sulong Pilipinas PDP 2017-2022 Arangkada Publications Philippinesandthe

Page 73 Page 74 61 per capitain2015than a decadeago,while alsoclosing thisspendinggap withtheASEAN-6. desk, books, waterThe GPHisnowsanitation. and spending more percentageas a perstudent of GDP in 2017 billion allowed thegovernment to reduce or eliminate thelargein teachers, backlog classrooms, reform forThe three-fold education. basic increasedspending from in 2010 to Php186 billion Php543 governmentin national spendingand(2)theaddition ofthree years to basiceducation undertheK+12 EducationA. education, andpercapitaincome. little for several decades 2016. However,in Vietnam Indonesia and its positionrelative to othercountriesglobally haschanged DBM Secretary BenjaminDioknosaid: determines thequalityoftomorrow’s workforce, while healthdetermines thefitnessofworkers. and there are shortages of youngworkers. The currentin thePhilippinesis23.Educationmedian age nextseveral decades, in comparison to thoseAsiancountries where thepercent ofolder people ishigh fresh collegegraduates. Business Processsector Management Arangkada ofthe Seven sectors,Winner Big major employer a of and match skillsandtraining to meet thedemandofbusinessandprivate sector. Point 7: Invest in human capital development, including health and education systems, Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Two significant reforms in the education sector under President Aquino were (1) substantial increases termsIn Developmentof theHuman Index (HDI), the Philippinesranked around thesamelevelas what we are doing–40percent ofthe P3.35trillionbudget in2017isallotted to socialservices.” exactlyis this And things. other among protection,resourceshealthcare, education,social adequate to Hence,we mustmoldtheminto competent anagile, and productive workforce.This meansallocating “We mustinvest inourgreatest resource –ouryouth. Ourpopulation’smedianage is23years old. For the potentialof the countryto berealized the potentialof itspeoplemustalsobeachieved. As With ayoungthe Philippines is population, often said to have ademographic “sweet spot”for the This chapter coversthe environment,health, education, and reproductive coversalso It health. the Source: Department ofBudget and Management. February 3, 2017 Sources: UNDP 2016 HDI report, author's calculations 2016 HDI author's report, UNDP Sources: Figure x1. Human developmentindex, percentile rankings, ASEAN Philippinesandthe 100 10 20 30 40 50 60 70 80 90 0 Figure 44.HumanDevelopment Index, Percentile Rankings,ASEAN-6, 1990-2015 Singapore 1990 (see Figure44). Key indicators covered by theHDI include life expectancy, 2000 Malaysia 2010 Thailand 2011 Philippines 2012 2013 - 6, 1990 Indonesia 2014 - 2015 Vietnam 2015 61 and thereby willmake thecountrymore competitive. reformseducational produceeconomygraduatesshould modern forwhoa arework qualified better in connected, iffunded,over thenext decade. Duterte shouldsolveas theschoolsare thischallenge the 100,000 includedamong sitesbe will that President under enacted 10929) (RA law places public in Wifi free The wereconnected. schools public decade ago was taken over by theDepartmentof Education (DepEd),as oflate but 2016 only 26% of of Education by theWEF69 follow the“academic”track, preparing themfor tertiary educationandemployment atanolderage. take a“technical-vocational-livelihood” trackand enter the workforceage 18, while at theother will toPhilippines up theinternationalnorm of12years. Roughlyof studentsinsenior half high schoolwill A program toschools connectpublic to the Internet started by theMakati Business Club over a of the Kto 12BasicEducation Program.” President Duterte is his second SONA inJuly 2017 committed to continue these educational reforms: Quality for Philippines the of ranking in improvement significant a in off paid reforms These The creation by thislaw oftwo years ofsenior high schoolbroughtin the length education the basic Source: “Wehave sustained investments educationhigher in and are committed to thefull implementation 133 (2009), 139 (2010), 143 (2011), 144 (2012), 148 (2013), 144 (2014), 140 (2015), 138 (2016) (2016) 138 (2015), 140 (2014), 144 (2013), 148 (2012), 144 (2011), 143 (2010), 139 (2009), 133 WEF Source: http://www.savethechildren.org.ph Figure x2. Qualityof Educational System, Percentile, ASEAN 100 90 80 70 60 50 40 30 20 10 0 2009-10 ; Total number of countries of number Total Figure 45.QualityofEducational System, Percentile, ASEAN-6 2010-11 th of 139 in 2010 toof 139in 31 2011-12

evaluated: evaluated: 2012-13 Ten-Point Socio-Economic Agenda oftheDuterte Administration st 2013-14 of 134 th 2014-15 in2016 Thailand Philippines Indonesia 2015-16 (see Figure45). Over time these - 6 Arangkada Philippinesandthe 2016-17 Vietnam Singapore Malaysia Philippinesandthe

Page 75 Page 76 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe 10th placeandcriticalthinkingin4 (1) complex problem solving, (2)criticalthinking,and(3)creativity. In2015,creativity was ranked in skills workers shouldpossessin2020 to becompetitive increasingly importantasthePhilippineeconomy modernizes.TheWEFupdated alistofthetop ten

hne as n rls o lo qaiid oeg shos o prt and operate to schools foreign qualified allow foreigners to teach inthePhilippines. to rules and laws Change Recommendation 8: to help students learnessentialcomputer skills. computers by PEZAlocators to theeducationsector. Hundredsgivencould be of thousands ofunits Recommendation 7: schools computers and studentswithe-readers. Place Internet-connected computerin elementary labs connection ofsome 7,000 high schools to Equip high theInternet. school teachers with notebook Recommendation 6:Intensify investment intechnology foreducation. Complete public the physics). Teach more foreign languages incolleges to and tourism supportthe sectors. BPO positions Recommendation 5: technology, andmath(STEM) subjects. Recommendation 4:Basiceducationandcollegecurriculashould increase study of science, maintaining theirwelfare andmorale. jobs. Apply competency based-standards for teachers and provide more inservice training, while to helpstudentsacquire theknowledgerequired andskills tothem to enable gethigher quality Recommendation 3:Empower teachers by constantly improvingcurriculum and theirquality greater interactionSupport betweeneconomy. TESDA andtheprivate sector.future and present the of jobs hard-to-fill for workforce the retraining Recommendation2: Narrow mismatch theskill-jobs by revising curricula andtraining and average spendingperstudent (from 2010)to becloserto otherASEAN economies. Recommendation 1:Commit to anincreasingof 4% education budgetof GDP. public Doublethe To “match skillsandtraining to meetthe demandofbusinessandtheprivate sector” hasbecome Source:FutureofJobsReport,World EconomicForum Philippinesandthe (e.g. agribusiness, computer science,environmental engineering, science, mining,and Figure 46.Top Ten SkillsWorkers ShouldProcess in2020 Resolve administrative barriers (importation fees) to the donationof used norg mr clee tdns o td fed nee fr specialized for needed fields study to students college more Encourage th . (see Figure 46).Thetop three for 2020are Arangkada Publications 62 63 64

either by education, training oremployment.” reached 22.1percent implyingaround 4.4millionyoung Filipinosare underutilized withskillsnotbeingenhanced In theSenate, thebillis pending Second Reading. in theSenate andat thecommittee level intheHouseof Representatives. approved by theLEDAC at itsAugust 29meeting. Itisapproved onsecond reading ytm o te eeomn, eonto, n aad f ulfctos ae o te tnad of standards the on based knowledge, skills,andattitudeacquired by learnersandworkers qualifications inthecountry. of award and recognition, development, the for system Recommendation 23: Pass the Philippine Qualifications Framework Bill, a quality-assured national and non-government organizations concerned. technicalthrough skills theactiveworkers,of all participation enterprises, government agencies, program that will ensure the availability of qualified manpower in the field of critical and in-demand RecommendationPass 22: Apprenticeship the which bill reformeda establish will apprenticeship programs thatfacilitate school-to-work transition. Recommendation 21:Strengthen andexpandinternship, apprenticeship and dual-training 10 years, andallocatingthenecessaryfundsto supportgraduate students. PhDs per yearquality inthenext5-7 years, considering the targetof 2,700 PhDs per year inthenext Recommendation 20:Thegovernment shoulddetermine realistica targetof costingandproducing Recommendation 19: improve worker competitiveness viaimmersion ortraining intech voc. profiles job of identification needed per industry by joint government, industry and academe.Improve curriculumdevelopment to through mismatch job-skills Address Recommendation 18: to increase thecapacityofTESDA.ti to upgrade quality as evidenced by the lack of qualified trainers and Thereequipment. is also a need inclusivebut (TVET) is laudable, access,desirability,remainquality and Therechallenge. a need isa Recommendation 17:The overallperformance of Technical VocationalEducation andTraining Recommendation 16: and rewarding careers intoday’s changingworld ofwork. Recommendationto21st centuryskills equipped with 15:Filipinosshouldbe engagein meaningful years to 6-9months. 4 years to 9-12 months.Decrease duration of school-to-work transition of college graduate from 2 Recommendation 14:Decrease duration of school-to-work transition of high school graduate from Recommendation 13: foster innovation andcreative imagination. Recommendation Continuecurricularreforms 12: technology inthescienceand to curriculum Recommendation 11: adequately prepare for basiceducation. Recommendation 10:Strengthen programs for early childhood care anddevelopmentin order to scholarships andinvolving theprivate sector inthecurriculumdevelopment andinternships. Recommendation 9:StrengthenEducation/Dual theDual Technical System by expanding In 2016 share “The of youth who are neither in education nor in employment in the total young working population The Apprenticeship Billiscurrently filed inbothhousesandincludedthelegislative agendaofthePDP NEDA. The PhilippineQualifications Framework bill wasamongthe28prioritybills 62 Expandcollaboration between government, academeandindustry. Ensure globally competitive TVETprograms. Expandaccessto higher education. Increase themeanyears ofschoolingfrom 8.9in2015to in11.32022. Ten-Point Socio-Economic Agenda oftheDuterte Administration 63 Arangkada Philippinesandthe Sulong Pilipinas PDP 2017-2022 Arangkada Publications 64

Philippinesandthe

Page 77 Page 78 65 intelligence (AI), andweakened GPHsupport. artificial especially advance technological elsewhere, and China, are issues India, looming from Other competition applicants. job qualified of numbers larger and larger of availability the by employees toengine ofthePhilippineeconomy,important becomean approaching 10% of GDPandover 1.2million government support. reliablelow-cost international telecommunications, diverse and inexpensive site locations, andstrong speaking talent with a strong customer-service orientation and cultural affinity to North America, highly service export revenue. The Philippines has hadclearadvantages: alarge workforce of educated, English- large size, high growth rate, andlong-term potentialto provide severaljobs andearn highmillion quality B. BusinessProcess Management (BPM) Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

In less than 15years,In sector theBPO hasgrownexponentially interms of totalrevenue andemployment extremelyhas becomean BPM business sector important inthePhilippineeconomy, becauseofits apprenticeships beyond 6monthsandmore flexibility intheirremuneration. Recommendation 27:Pass theApprenticeship lawamendments to allowlonger period of average. Recommendation 26:Reduce thehigh pupil-teacher ratioin basiceducationcloser to theASEAN-6 available fundingto prioritizesupportfor thepoorest studentsatstate collegesanduniversities. Recommendation 25: establishments, andincentives for participatingestablishments. more companiesto engage inDTS. The current lawstipulates theresponsibilities of thetrainees and Recommendation 24:ReviewTraining RA7686 or theDual System Actof 1994 in order to entice House:Pending withtheCommittee onHigher AND Technical Education Figure x4. Offshoring and Outsourcing IndustryRevenues, Mn US$,2004 10000 15000 20000 25000 30000 35000 Sources: BSP, IBPAP BSP, Sources: 5000 Philippinesandthe 0 (see Figuresand 48).Astheindustryhasmatured, 47 itsrate ofgrowthis slowing, limited 2004 2005 2006 Figure 47.BPMIndustry Revenues, MnUS$,2004-2017 Implement RA 10931 Implement the Universal Access toEducation Quality Act to utilize 2007 2008 2009 2010 2011 2012 YoY Growth Rate, rhs Revenue, lhs 2013 65 2014 - 2017 2015 Arangkada Publications PDP 2017-2022 2016 2017 0 10 20 30 40 50 60 “wake-up” callfor theindustryandGPHinPhilippines. services also declinedinthesame2017 indexfor thebest-ratedfell 100 cities. Manila from 2 66 place (behind Bangalore,place fromCebuDelhi) and and Mumbai, 8 Manila and Cebu,SaoPauloManila rose from 27 rated of50countriesaftertoIndia 3 the

disruption.” to the digital onslaught andneedsto have asenseofurgency to re-invent itself inthis age ofdigital and process simplification through digital. Having said this, the industry is probably the most susceptible fora hub digital process innovation.companiesof number A arerobotics leadersinputting workforce theand isoneof world’s largestMNC andGICshaveLeading nations. speaking English madePhilippines hasasubstantiallycountry literacy high rate (95%),anestimatedgraduatesof 30% are employable taken the leadinBPM.Philippines hasahighpresence ofgrowing youth population.Furthermore, the become thefocus operations of for various industries andhaslongchallenged Bangalore, Mumbaiand the growing influence of MNC operations on the country’s economy is significant. The city of Manila has and US/UK to affinity cultural youth, the among fluency English GICs. and corporations multinational In the 2017 Tholons Services Globalization Country Index,the 2017 Tholons Services In Globalization the Philippinesdeclinedfrom the2 languages.”between human intelligence, such asvisual perception, speech recognition,decision-making, andtranslation Google’s onlinedictionarydefinesAIas: Recommendation 4: nications, andreliable power. Recommendation 3:Infrastructure can supportthesector with improved airports, telecommu- training incentives, tax breaks for location-related expenses, fundingfor university partnerships. Recommendation 2:Government competitive shouldmaintain incentives and regulations,including strategies ofthesector. Recommendation 1: Tholons Services Globalization TholonsServices Country Index 2017 Figure x5. Offshoring and Outsourcing IndustryEmployment, 2004 1000000 1200000 1400000 1600000 200000 400000 600000 800000 Sources: BSP, IBPAP BSP, Sources: “Philippines hasbeentheundisputed leaderincustomerand ishometo BPM service, major AI: “the theory and development of computer systems able to perform tasks that normally require normally that tasks perform to able systems computer of development and theory “the AI: 0 2004 66 2005 Improved securityanddisaster preparedness willsupportthesector. Government mustcontinueto be astrong andsupportive partner of growth 2006 Figure 48.BPMIndustry Employment, 2004-2017 2007 2008 rd th best-rated, afterChina. Topand India Philippines citiesfor to 6 to 2009 th andBuenosAires from 33 Ten-Point Socio-Economic Agenda oftheDuterte Administration 2010 "YoY Rate, Growth rhs" Employment, lhs 2011 2012 th to 12 2013 - 2017 th . Moving. quickly up asrivalsto 2014 rd Arangkada Philippinesandthe to 10th.This should bea 2015 PDP 2017-2022 2016 Philippinesandthe 2017 nd 0 10 20 30 40 50 60 70 80 90 nd to 4 to best- th

Page 79 Page 80 67 and children, andbuildnewhealthcare facilities andimprove existing ones. infants of immunization coverage,improve PhilHealth for membership expanded for benefits increase is a start for meeting therequirement for government to provide much improvedhealth service, public in 2010billion to Php140 billion in2017, Health Insuranceincluding theNational Program (PhilHealth), to generate more revenue to The four-foldhealth. spend on public increased spending from Php30 (see Figure 49) carehealth to more Filipinosby expandingPhilHealth coverage to more poorfamilies andsenior citizens increased laborproductivity, which supportshigher wages. promotes health economy.Good the to contribute eventually and education from benefit to able more more productive, have lower absenteeism,incur lower and healthcare expenses. Healthierchildren are C. HealthCare Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe from 2010to 2016. Under the UniversalCare Health Program,the Aquino Administration sought to provide better public are employees Healthy community. business the for concern significant a is health public Good LGUs shouldfollow PEZA/BOIguidelines. Recommendation 9: LGUs should be more uniformly supportive of IT-BPO firms in their jurisdictions. transition to newareas ofthebusinessprocessing sector. Recommendation 8: accounting, and human resources, finance market research andtech supportamongothers. outsourcing, knowledge-process outsourcing, of areas other pursue and Recommendation 7:The Philippines shoulddiversify and improve itsIToutsourcing services as services andknowledge process outsourcing to pursuemore value addedsectors apartfrom voice. Recommendation 6:Continue to explore thepotentialof othersub-sectors ofIT-BPOsuch asshared with LGUs improved. Recommendation 5:ThePEZAapprovalprocess shouldbeaccelerated andeaseofdoingbusiness According to thePDP, 7,713healthfacilities were constructed andupgraded Philippinesandthe Source: PSA Source: . With RA 10351Tax theSin RA With . Reform Actthe government raised excise taxes oncigarettes Figure x6. PhilHealth membership, Philippines, 1997 10 15 20 25 30 35 40 45 0 5 - BLES, PhilHealth BLES, Figure 49.PhilhealthMembership, Philippines,1997-2016 The education sector shouldequip Filipinoworkers needed withskills to Members as % of labor force, rhs in lhs mil, members, Principal Insurance Corporation - 1H2016 67 Arangkada Publications PDP 2017-2022 0% 20% 40% 60% 80% 100% 120% In hissecondSONA, President Duterte strongly supported furtherimprovements inpublichealth: 50 and51basedonthelatest WHOstatisticsdonotreflect therecent higher spendinglevels. the otherfourmuch lessthan Philippines spendsasmuchIndonesia,but countries.However, Figures ASEAN-6.the GPH spendinghasvaried from little 1.5% GDPover twothe basis, per capita a decades.On showhow theGPH spends as apercentagelittle on health basis comparedof GDP and onapercapita to Figure Fx8. Per capitagovernment expenditure on health (PPP int. $), ASEAN 1000.00 1200.00 1400.00 1600.00 1800.00 200.00 400.00 600.00 800.00 Source: WHO Source: public hospitals.” we services, could not afford hospitalization, can now be provided with free services of government-operatedjust health and who those affordable or indigents, and the and destitute quality The benefits. to and coverage insurance accesshealth expanded equitable given are Filipinos that ensure “To Figuresthe mostrecent 50and51(with comparativeavailable data from only WHO through 2014) 0.00 Source: WHO Source: 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Figure x7. Government Expenditure on Health, of GDP,% ASEAN Figure 51.Per Capita Government Expenditure onHealth, 1995 1995 Figure 50.Government Expenditure onHealth,%ofGDP, ASEAN-6, 1995-2014 1996 1996 1997 1997 Indonesia Philippines Singapore Malaysia Vietnam Thailand Philippines Indonesia Vietnam Thailand Malaysia Singapore 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 Ten-Point Socio-Economic Agenda oftheDuterte Administration 2004 2004 2005 2005 2006 2006 (PPP int. $) 2007 - 2007 6, 1995 2008 -

2008 1995 6, - 2014 2009 , ASEAN-6, 1995-2014 2009 - 2014 2010 Arangkada Philippinesandthe 2010 2011 2011 2012 Philippinesandthe 2012 2013 2013 2014 2014

Page 81 Page 82 69 68 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

services andcommodities,reducing disaster risks willalsobesupported. services healthdelivery, and such asadvancing policies, providinghealth local family planning and existing ones may be expanded to lower the members’ out-of pocket costs. Filipino willbeaPhilHealth member. New benefits packages willbedeveloped Recommendation 1: and free medicinesshouldbeadded.Premiums shouldbeprogressive withincome. poorestenrolled Filipinosshouldbe no co-paymentswith for services required.services Outpatient Recommendation 8:PhilHealthshouldbeexpanded under Universal HealthCare (UHC). The needed. and many Better thousands of health centersadditional village equipment andstaffare built. also Recommendation 7:Government hospitals should bemodernized, rationalized andexpanded, 2.5% to 3%ofGDP. Direct spendingto thepoorest Filipinos,who cannot afford any healthcare. Recommendation6: The Philippine Governmentspending should on healthcaredouble national to Recommendation 9:Implement R.A.10918orthePharmacyProfession Act Amendments. Recommendation 5:AdoptPolicies”in All and Health “Nutrition a 21% in2022. Recommendation 4:Reduce percentageamong children of stunting under5from 33% in 2015 to from 56%in2014to 35%in2022. Recommendation 3:Reduce percentageof out-of-pocket expenditure over totalexpenditurehealth improving qualityofavailable healthcare (improving government hospitalsandequipment). (expandedcoverage, Philhealth more free medicine, strengthening ruralunits) aswellhealth as Recommendation 3:Improve services of health by thequality expandingaccess topublic healthcare. Achieve 100% coverage packages. by 2022. benefit improve and coverage insurance health Expand Recommendation 2: The NHIPwillcontinue to provide financialrisk protection toensure that every This billwas includedintheprioritylist at theAugust 29LEDAC meeting. Philippinesandthe

Source: UniversityofPerpetualHelp,CollegeNursing&SchoolMidwifery Enact theEnhancedUniversal HealthCare Act.

agenda. The LGUagenda. role innutrition 68 69 Sulong Pilipinas Arangkada Publications PDP 2017-2022 70 for any modern methodofcontraception. not yet beingimplemented fully. TheDOH hasclarifiesthatothercontraceptives are notaffected. executivean order directing SONA,his in and implementation, expressedHe frustration the lawthat is implant thatrequires approval by theFood andDrug Agency. InJanuary2017,President Duterte issued a in resulted that provisions clarifcatory rulingby theSupreme Court andsecondby arestrainingspecific order against acontraceptiveover first challenges, legal by delayed been has implementation Parenthood andReproductive Health Act of2012,after decadesofcontroversial debate. Sinceitspassage, rate. From over 3%in1970ithasfallen below 2%since2001andtoday standsat1.7%. rathergovernmenta national than familyprogram planning have slowed downgrowththe population century family planning Health Law to enable especially poor couples to make informed choices on financial and PointStrengthen10: implementation the of Responsible Parenthood and Reproductive D. Reproductive Health

The PSA estimateswomen,six million least at that ofwhich twoare million poor, haveneed unmet children would they beable to supportandsendto school.” President Duterte expressed hispositionas: One ofthesignature reforms oftheAquino Administration was enactmentofRA 10354theResponsible has reachedThe Philippinepopulation likely in 2017 105 million andwill reachby 150 million mid- achieve populationoutcomes thatare facilitative ofeconomicgrowth. desired familycontextthe size within of responsible parenthood informed and order choicein to Recommendation 2: services. Recommendation 1:Ensure universal accesstosexual quality reproductiveand (SRH) health SONAofPresident Rodrigo Duterte, July24,2017 “I am for the giving the freedom to a Filipino family to the size of his/her family, to how many how to family, his/her of size the to family Filipino a to freedom the giving the for am “I (see Figure. Urbanization, 52) economic growth, and more accessto methods of family planning

Sources: PSA, UN ESA and author's calculations author's and ESA UN PSA, Sources: 100 200 300 400 500 600 Figure Philippinex9. population projections,Mn, 1903 in 0

1903 1918 Figure 52.PhilippinePopulation Projections, InMn,1903-2100 1939 The main strategybe to will assist couples andindividuals to achieve their 1948 growth annual 0.7% growth annual 1% growth annual 1.5% growth annual 2% UN ESA data Official 1960 1970 1975 1980 1990 1995 2000 2007 2010

2015 Ten-Point Socio-Economic Agenda oftheDuterte Administration 2020 2025 2030 2035

70 2040 -

2045 2100 2050 2055 2060 2065 2070

2075 Arangkada Philippinesandthe 2080 PDP 2017-2022 2085 2090

2095 Philippinesandthe 2100

Page 83 Page 84 in the last decade, mostdramaticallyin thelast in2009 (Ondoy2011 inManila), as earthquakes, storms, floods,droughts, andsealevel rise countries ranked lower areThe index muchsmaller). covers 28 indicators and naturalhazards such Environm as reported in the The taskto reforest isanenormouschallenge. a faster rate thanIndonesia, Malaysia, andThailandwithoutproper replantingand forest management. area in1934 to30% today. lessthan Overtwo thelast down decades the Philippineshascut its forests at disasters. Figure 53 shows thedeclineof Philippine forest cover from totalland 90% of the country’s Philippine urbanis essential. areas have developedtoplanning little with mitigate theeffects ofnatural to environmentaldegradation. Improved protection ofwatersheds, rivers, estuaries andremaining coral tricycles spewingnoxious fumes,stillply Metro Manila’s streets dueto inadequate enforcement. waste crisis. Despite too passage of the CleanAir Act, many vehicles, especially ,jeepneys, and and theincreasing needto introduce soundpractices. Metroand many Manila othercitiesfacesolid a and sanitationare very inadequate. lives population country’s inurbanareas where pollutedand solidwaste airisasilentkiller management and destructivepopulation practicesdegrade that air, thecountry’s land,andwater. Over half the E. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Several severe storms and floods pummeled Metro Manila and provincesand Several Manila Metro pummeled severefloods and storms Global indexesGlobal rankthe Philippines as themostexposed majorcountry to naturaldisaster risk Destruction of rich coralgrowth andextensive deforestation over a centurycontributed immensely There hasbeengrowing recognition of problems suchdestructive environmentalhabits have created The environmentfor inthePhilippineshasbeenunder assault decades from thefast-growing clinics. education inschools and provide information andmaterials for familygovernmentin all planning Recommendationthe Reproductive 6:Implement HealthAct of 2012 mandatesthat human sexuality 2015 to 65%in2022. Recommendation 5:Increase themodern contraceptive prevalencerate per100,000 from 38% in Recommendation 4: aim to attainzero unmetneedfor modernfamily planning. Recommendation 3: Environment andDisaster-Risk Reduction Philippinesandthe ent and HumanSecurity.ent ThePhilippineswas 169 2016 World RiskReport Index, calculated by the Sources: DENR, Figure x10.Philippines'Figureforest cover 10 15 20 25 0 5 Reduce thefertility rate from 3.1in2015to 2.1in2022. Address demand for unmet familyunwantedand planning pregnancies and 1900 Figure 53.Philippines’Forest Cover, 1900-2010 WB CEA 2009 CEA WB 1934-41 1970

and 2010 FAO Global Forest ResourcesPhilippinesAssessment CountryReport 1975 1980

1988 % of total land %land rhs of total area, lhs Mil Ha, cover, Forest 1990 for 173countriesworldwide. th of173 countries in2016 (and thefour 2000 2005 United Nations University 2010 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Arangkada Publications PDP 2017-2022

for Resilience andResponse. aftershocks andrisingsealevels from global warming. world’s second largest archipelago, shores thecountry’s and estuaries are predicted to beinundated by of Fire. Metrohas begunawareness Manila drills to prepare for a large magnitudeearthquake. As the Earthquakesvolcanic and eruptions remind theythe citizenry that and thepopulation live intheRing (Sedong in N. Mindanao),2012 (Pabloin E.Mindanao),and2013 4 (the YolandaSignal intheVisayas).

President Duterte inhis second SONA inJuly 2017 prioritized creation of a Departmentof Disaster academe.” Metro Manilaarea, which seatofgovernance, isourcountry’s center of diesel to natural gas andelectric. 2-stroke with4-stroke engines.Convert jeepneys andbusesfrom vehiclesall thatfail to meetpollutionstandards. Crack down oncorrupt emissionstations. Replace Recommendation 9: to containthefuture solidwaste ofthemetropolis andcleanupexisting dumpsites. Recommendation 8: solid waste managementservices. Recommendation 7:Provideenvironment theenabling for resource recoveryprivatization and of rooftop gardens, and/orsolarpower panels. Recommendation 6: mangrove replanting, coral preservations andrehabilitation, andfishsanctuaries. RecommendationEncourage 5: LGUscoastal all to undertake marineregenerationprojects suchas greening andtree plantinginidleurban landareas, and(3)provision ofwater catchments. Recommendation 4:Encourage environment rehabilitationto include(1) reforestation, (2) urban Recommendation 3: Recommendationwaste 2:Establish water seweragetreatment facilities inhighly urbanized areas. esteros andotherurban drainages. all including waters, flood of drainage and flow the to impediments all Clear Recommendation 1: “To undertake immediatetoaction ensure disasterresiliency andeffectiveresponse the in greater Source: http://www.meteoweb.eu/ ImplementtheClean AirAct (RA8749).Clean Manila’s air faster by removing Cleanuppolluted rivers andbays, especially ManilaBay. Compel all condominium Compeland all commercial buildingsto have rain catchments, Implement the Solid Waste Management Act (RA 9003). Build sanitary landfills Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Publications of Commerce andIndustry (PCCI) G.I.A.N.T. S.T.E.P.S by PhilippineChamber business, commerce,and the Arangkada Philippinesandthe Philippinesandthe

Page 85 Page 86 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

of worsening natural calamities. Recommendation 15: Create aDepartmentofDisaster Resilience and Response to address the threat development, andeducation. Recommendation 14: Incorporate disaster prevention,disasterjust not reaction, into planning, and increase reforestation indamagedwatersheds. Recommendation 13: enforceon illegal theban logging, encourage responsible commercialforestry, and educationofcoastalcommunities. Recommendation 12: Continue to fight illegal fishing methods and expand reef restoration programs reduce thewidespread useofplasticthatpollutes themarineenvironment andclogswaterways. Recommendation 11:Educateto thepublic usereusableconsider and lawsbags non-plastic to RecommendationWaterthe Clean 10:Implement Act districts, LGUs, andsites maintainedby theprivate sector. commercialand industrial wastewater treatmentfacilities inwater Recommendation 23:Improve wastewaterby management increasing thenumberofdomestic, Recommendation 22: transport system, use ofcleanerfuels,andconversion to fuel-efficientengines. Recommendation Promote 21: environmentally-sustainabletransport, the mass including emission testing. RecommendationStrengthen 20: enforcementthe of theantismoke vehicleand campaign belching including agroforestry. Recommendation 19:Promoteforest-based sustainable (timberandnon-timber) industries Recommendation 18: forestlands includingcriticalwatersheds andstrengthened protection ofremaining natural forests. Recommendation 17:Reverse the lossofforest cover through sustainedrehabilitationof degraded ridge-to-reef approach andsustainableintegrated area development. Recommendation 16:Intensifyof naturalmanagement sustainable resources through adoptionof water treatment plantsinallcitiesandmunicipalitiesorder to reduce water pollution. Source:rappler.com Philippinesandthe ImplementtheNational Sewerage andSeptageManagementProgram. Enhancegreen spacesinurban areas. (RA 9275) to increase sewagesystems and PDP 2017-2022 Arangkada Publications C. B. A. (Points 8) and Arts Science, Technology Chapter 6:

Manufacturing Promote Industries Promote Creative technology Promote scienceand 94 91 88 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 87 Page 88 (51), andVietnam(47)butaheadofIndonesia(87) advanced asrapidly, thesuccessofpoliciesimplemented underPoint 8willbecritical. researchand development. and orderIn tomore be competitiveworld ina where technology hasnever highly unlikely to not become a high income industrialized economy without astrong basefor innovation as creativemarket outputs, should alsobenotedIt sophistication,andinstitutions. the Philippinesis that A. PromoteA. scienceandtechnology entitled “Vigorously Advancing Science,Technology andInnovation.” technology intheten-pointas wellagenda as thechapter devoted toin thePDP, thesubject appropriately technology for theirgrowthcompetitiveness.and JFC Hencethe welcomesof scienceand inclusion the 4), BPM the Sevenamong Winner Sectors Big the core at oftheadvocacy. Sowere Agribusiness technologyscience, and are underdeveloped. In the creative capacity towards self-sustaining, inclusive development. and innovation enhance to arts creative the and technology science, Promote 8: Point Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Innovation Index. AmongtheASEAN-6, thePhilippinesin2017 behind Singaporeplaced (7), Malaysia (37),Thailand Looking at the indicators,Looking at thePhilippinesranks lowest (95 Table 18 shows the Philippine overall Philippine ranking at73 While itis generally recognized Filipinos that are very artistically talented, the areas of innovation, (see chapter 5),andManufacturing (inthischapter), three sectors depend that on science and Philippinesandthe 100 Figure o1. Global Innovation Index, ASEAN 80 60 40 20 Source: World Intellectual World Source: - Table 18.GlobalInnovation Index, PhilippinesScore andRank,2017 Figure 54.GlobalInnovation Index, ASEAN-6, Percentile, 2011-2017 (n=127) 2017 Global 127) Innovation of Index (out To1. Global Innovation Index, Philippine and Score Rank, 2017 Institutions Human Capital andResearch Infrastructure Market Sophistication Business Sophistication Business nwledgeInputs andTechnology Know Creative Inputs Source: Global Innovation Index 2017 Index Innovation Global Source: (n=128) 2016 Property Organization Property (n=141) 2015 (n=143) 2014 ArangkadaCreative2010 the Industriessector was (see Figure 54). -

6, Percentile, 2011 Percentile, 6, (n=142) Score (0-100) Score 2013 32.50 50.00 22.30 44.60 41.30 36.90 28.30 22.80 (n=141) 2012 th ) in human capital and researchcapital ) inhuman aswell rd of127 countries inthe2017 Global - (n=125) 2017 2011 Rank 73 89 95 72 92 45 42 94 Indonesia Vietnam Singapore Thailand Malaysia Philippines (see chapter in 2011, the Philippinesadvanced impressively to 67 WEF Quality of and Science Math WEF QualityEducation asshown inFigure 55. From alowly 115 Educationranking the ASEAN-6.of thePhilippineswithin Aparallelimprovement hasoccurred inthe report.

n hpe 5 Fgr 4 soe te infcn ipoeet ic 21 i te E Qaiy of Quality WEF the in 2011 since improvement significant the showed 45 Figure 5, Chapter In innovation inthePhilippines. to includemore collaborationsthe private with sector to encourage technologicaldevelopment and as The Philippine Councilfor Industry, Energy, Emerging Technology Research andDevelopment) Recommendationand strengthen 2:Expand the role oftheInnovationCouncil (formerly known Education measure to become3 Recommendation Continueto 1: improve rankScience and of Math thecountry’s Quality in theWEF Source: Trading Economics Figure o2. Quality of Math and ScienceEducation, Rank, ASEAN 133 (2009), 139 (2010), 143 (2011), 144 (2012), 148 (2013), 144 (2014), 140 (2015), 140 148 (2015), 138 144 (2016)144 (2012), (2014), 139 (2013), 143(2011), 133 (2009), (2010), Source: WEF Source: 140 120 100 80 60 40 20 0 Table 19.Research andDevelopment Expenditure, %ofGDP, ASEAN-6 Figure 55.QualityofMath andScienceEducation, Rank,ASEAN-6 2009-10 • • • • • • ; Country Total number of countries of number Total Vietnam Philippines Indonesia Thailand Malaysia Singapore 2010-11 rd bestinASEAN andinthetop 25%globally. 2011-12 R&D expenditure evaluated: evaluated: (% ofGDP) 2012-13 0.48 % 0.19% 0.14% 0.08% 1.26% 2.19% Ten-Point Socio-Economic Agenda oftheDuterte Administration 2013-14 th of140 countries inthemostrecent 2015-16 2014-15 (latest available data) 2015 2014 2013 2012 2014 2013 - Year 2015-16 6 Singapore Philippines Malaysia Indonesia Vietnam Thailand Arangkada Philippinesandthe 2016-17 Arangkada Publications th of 143countries Philippinesandthe

Page 89 Page 90 71 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe 72

and initiatives whichincludethe creation ofa new interagency National Innovation Council. as a vital component of the country’s development and use it to promote the growth of MSMEs, through programs a year) andnon-resident patents (over 3,000). the World Bank.There isalarge gap between resident patents (lessthan500 implement neededreforms for more competitionandbetter Internet speed. Recommendation7: Improve necessary infrastructure andfacilities for the ICT sector and and more resident patenting. Recommendation 6:Improve regulatory frameworkon property rights to encourage competitiveness geared towards innovation. Recommendation 5: technology/innovation driven ventures. Recommendationand encourage 4:Support toMSMEs movethe value up chain towards more Recommendation 3: Index. ratingsfor (1)Innovation,(2) Technological Readiness, (3) University-Industry and Collaboration Recommendation 11: 0.5% in2022. Recommendation Increase 10: R&Dexpenditurespercentage asa of GDP from 0.14% in 2013 to technology, andinnovation. Recommendation 9: deploying better ICTinfrastructure andaddressing gaps indigitalconnectivity. are available, accessible,reliable,trusted and affordable. Putinplacearobust ICT infrastructure, Recommendation 8:Government ICTinfrastructure shouldensurethe country’s that andservices The Senate has approved on third reading S. B. 1355 the Philippine Innovation Act, Resident patent applications in the country have been consistently low throughout the years according to data from Philippinesandthe Source:DepartmentofScienceand Technology (DOST)(www.dost.gov.ph/) EnactthePhilippineinnovation Act. Improve curriculaintheSTEMto encouragethe youth to pursuecareer paths There shouldbemore initiative to foster a culture thatvalues arts,science, Improve thePhilippinerankingthe ASEANamong economies in theWEF 72 71 which seeks to adopt innovation PDP 2017-2022 Arangkada Publications 73 media, andthelimitof25%foreign equityinadvertising. development,full the practice suchaslimiting offoreign professionals,on foreign the ban equityin Philippine Creativedeveloped.and mapped Industriesshouldbe There are legalworkissues that against arts, fine film, design, activities, cultural/heritage arts, literature, music,newmedia, performing arts,publishing,andvisualarts. culinary crafts, development, content arts, B. 74

H1-B visarecipients (2009-2011). chemistry, education, engineering, mathematics, medicine/health, and science. India, China, and Canada had more largest external source ofworkers for technology industries intheUS,includingarchitecture, biotech, business, priority billsof theLEDAC at itsAugust 29,2017meeting Filipinos enjoywell-deserved a reputationfor creativity. However, to better understandthesector, Creative Industries are extremely diverse, advertising,including architecture, animation, broadcast Recommendation 22: academia andindustry. Recommendationshared Enable 21: R&D infrastructure, which requires adirectbetween link Recommendation 20: and servicesindustriesthrough investment inR&Dandproduct development. Recommendation 19:Encourageand supportinnovation export-orientedin thecountry’s goods Recommendation 18: their knowledge andexpertise to beutilizedfor thedevelopment ofthePhilippines. overseas Filipino scientists,experts,highlyand trained professionals abroad to returnshareand Recommendation 17: industries aswell asfor healthcare andtechnological developments. Recommendation 16: commuting public. Recommendation 15: mainly inthefieldsofblockchain,artificialintelligence, logistics,biometrics,etc. Recommendation 14: start ups. Recommendation 13: by 2022 Recommendation 12:Increase thenumberofresearchersfrom population per million 270to 300 Promote Creative Industries According to theMay 2017USAID StridePhilippine Innovation NeedsAssessment, thePhilippinesis fourth The Strengthening theBalik-Scientist Program bill was includedinthelist of28 Enable links to professionals to advise andsupportstart-ups. Attract more foreign industrypartnersto dotheirR&DinthePhilippines, Enact thebillonStrengthening the Balik-Scientist Program. Encourage innovative Filipinostart-upsto pursuenewareas of innovation Encourageventure to capitalists pursueinvestmentsinnovativein Filipino Collaboratethe private with sector to conductR&D programs onvarious Implement brainImplement gain initiatives to bespearheaded by DOST to encourage Utilize technology to improve transportfor and thebetterment ofthe Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Arangkada Publications PDP 2017-2022 Philippinesandthe 74 73

Page 91 Page 92 Philippines Inc.TheDesign Center isamember. is intheprocess oforganizing anassociationtheCreative Economy Development Council ofthe responsible for implementing thelaw. ADesign Advisory Council hasbeenappointed. Theindustry development ofthesector anditsIRRs issuedinlate 2015.TheDesignCenter under theDTI is the to CBIs industries based copyright of national economy. contributions significant the shows 56 Figure persons. Marchpredicted2016 valuethe of thesector couldreachbillion by11 $ 2016 andemploy million 5.7 contributed over 11%oftotal The employment. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe The landmark Philippine DesignCompetitiveness Act was enacted in2013to spurfurther A UNESCO Creative IndustryReport in2010estimated thattheseindustriesinthePhilippines Source: PhilippineInternationalFurnitureShow(PIFS) Philippinesandthe Figure 56.Economic Contribution ofCopyright BasedIndustries Arangkada policynote onCreative Industriesin

a consistent policyframework for thesector. industry should develop andstepsmust betaken that towards its goals.The Mastercreatewill Plan Recommendation 2:Create aPhilippineCreative IndustriesMasterwheredetailing Plan the the sector. TheDesignCenter andallsubsectors shouldbeincluded. effectivean association/organization.Similar to IBPAP, tokey identifyandplan strategies to improve Recommendation 1:To best implementitscreative industries initiative, theindustry should have consciousness asthefoundation ofaglobally-competitive knowledge economy. Recommendation 9:Aculture of creative excellenceneeds to permeate various levels ofpublic to beabsorbed inculture industries (e.g.media,tourism, performing art) artistic andculturalworkers developedbe will andpromoted to provideopportunities citizens with Recommendation 8:Promote thecreative arts byforcourses curricula including and developing practitioners to sellwhat they create abroad. Recommendationdomestic marketthe small 7:Expand by supporting Philippinecreative industry as distinctively Filipino Recommendation 6:Re-brand creativethe country’s productscoherently and marketabroadthem creative professionals to work inthePhilippines. Recommendation 5: the Philippines. and EuropeanAmerican, Asian, design ideas,while informing potentialinvestors of opportunitiesin lecture andadvanced training fordesigners local isprovided.promote will It interchange of RecommendationRecreate 4: Design Center the Philippines, whereof the internationaldesigners only create laws andrulesbutalsoimplementenforce them. Recommendation 3:Domore to protect Philippineintellectualproperty. Government shouldnot Source: PreviewMagazine( Remove restrictions on foreign equityinadvertising to attractmore foreign www.preview.ph) Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe PDP 2017-2022 Arangkada Publications Philippinesandthe

Page 93 Page 94 the first ten months of the Duterte Administration. About half of the zones are IT zones and half are half and zones IT are manufacturing zones. zones the of half About Administration. Duterte the of months ten first the 1,360,342 employees, and totalexportsannual ofgoods and services was worthin US$42.10 billion have grownrapidly; asof2017 there were 372 PEZA zones operating.There were 3,995 locators, with the lowest in12 monthsandithasbeenmoving closeto contracting below 50.0. than Vietnam a rate above theASEAN average, asmeasured by theNikkei Purchasing Managers’Index, slightly faster Figure 57). over severaldecades: in the1990s by 2.5%; in thenextdecade by 4.1%,andfor 2011-2017 by 6.9% imported materials, parts,andsub-assemblies. complete manufacturing for suchindustry inthePhilippinessincemostproducts are assembledfrom automotive, assembledelectronics, andsemiconductors. However, assembly isabetter term than and furniture, towards higher value-added, more complex manufacturing sincethe1980s,suchas import substitutionandexport inthe1960sand1970s,products suchasgarments, footwear, C. Promote Manufacturing Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Under the PhilippineEconomic Zone Authority (PEZA),employment andexports from PEZAzones During thetwelveAugust monthsendingin 2017, Philippine manufacturing expandinghas been at Manufacturingin thecountryterms of gross valueadded has grown a slowlyat increasing rate The Philippineshasevolved from predominantly low-cost, labor-intensive manufacturing for that willstreamline servicesandactivities mustbeestablished. Recommendationreforms 11:Pursueinstitutional for culturaldevelopment. Acoordinatingbody stakeholders, supporttheirproducts, anddevelop theindustry. encouragewill that institution theproduction ofcreative works, investdevelopment inhuman of its Recommendationof creativity 10:Theagents shouldbe empowered andsupported by an Figure o4. Philippines'Manufactured Goods Export, 1990 Source: PSA Source: 10 20 30 40 50 60 Philippinesandthe 0

(see FigureThe index61). rate for thecountrywas 52.8inJuly50.6 inAugust and 2017, 1990 1991 1992 Growth USD) billion Value (in 1993 Figure 57.Philippines’Manufactured GoodsExport,1990-2016 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 - 2010 2016 2011 2012 2013

PDP 2017-2022 2014 2015 2016 -30% -20% -10% 0% 10% 20% 30% 40% (see 76 75 in pursuitof even lower costs inBangladesh of total employment. globally competitive manufacturingsector contributes that 30%ofthePhilippines’totalGVA 18% and Arangkada in GVA, sluggishemployment growth,slowlybut improving laborproductivity subsectors inorder to enhanceinclusive growth should beimplemented. and more young peopleentering every year, policies to regain andexpandlabor-intensive manufacturing extremely high combinedrate ofunemployed/underemployedaround Filipinosat 25%oftheworkforce Alarge numberoflow-skilledworkers lost their jobs when low-cost manufacturingleft thecountry wage is40% higherthanVietnam, whichhasfewer paidholidays andsubsidizes electricity Factories in Vietnam employing 320,000 workers make shoes and garments for Nike. The Philippine minimum after China.ThePhilippineminimum wage is2.5timeshigherthanBangladesh. With four millionworkers ingarments, Bangladeshhasbecome theworld’s second largest garments exporter The manufacturingsector’s performancerecent in years characterized hasbeen bysteady growth Project ina2013 policy brief recommended thegoalforthat the sector should be to create a 1980 level. engaged ILO, Source:s Figure o6. Mfg Labor Productivity (1980=100), 1980 (1980=100), Productivity Labor Mfg o6. Figure Figureo5. Distribution ManufacturingGVA of in the Philippines Source: Beverage Food and Food 1200 1000 200 400 600 800 52% 0 Figure 59.Manufacturing LaborProductivity (1980=100),1980-2014 at constant 2005 $US, This measure shows the level of productivity changed relative to to relative changed productivity of level the shows measure This $US, 2005 constant at PSA Figure 58.Distribution ofManufacturing GVA inthePhilippines UNSD, ADB and author's calculations author's and ADB UNSD, Vietnam Thailand Singapore Philippines Malaysia Indonesia Others 75 , Cambodia,Indonesia, and Vietnam 11% Ten-Point Socio-Economic Agenda oftheDuterte Administration Chemical Products Chemical Chemical and Chemical Notes: This is based on Mfg on based is This Notes: Furniture and Furniture Fixtures 13% 1% - 2014 Radio, Television, Television, Radio, Equipment Communication Communication Mineral Products Mineral Metal Products Metal Non Basic and Other Other and Basic Wearing Apparel Wearing and - 2% Metallic Textile and Textile Petroleum and Petroleum GVA Products 10% Other Fuel Fuel Other 4% Arangkada Philippinesandthe per person per person 3% 4% 76 (see Figure59). The . With the country’s . Withthecountry’s . Philippinesandthe

Page 95 Page 96 export hub. could soon surpass Malaysia and possibly even Thailand,which has become the regional automotive overtaken by bothIndonesia and Vietnam.The phenomenal growth of Vietnam’s exports indicates it of the ASEAN total (seeFigure. Since1999 60) the Philippines has lostitsfourth placeposition and been Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe

Philippine exports ofmanufactured goods are theweakest oftheASEAN-6, measuredpercentage asa eliminate overlaps and duplication, as well as address conflicting rules. Utilize online and digital and online technologies to establishthemaximume-governance.Utilize rules. conflicting address as well as duplication, and overlaps eliminate Recommendation 3: permitting andfinally operate atrueSingle Window onliensystem astheBOC. manufacturing.as manyPut procedures andtheirfee paymentSimplify importandexporton line. Recommendation 2: licensing, permits,andcertificationfor manufacturers. Recommendation 1:Government agencies should review andstreamline existing processes for which have thepotential to be bigwinnersandmake ithappen. the ones with the highest potential,such as electronics, aerospace, and automotive parts.Decide Recommendation 8:From the 30-plusindustry roadmaps thatwere developed by theDTI, prioritize minimum wages, free factory spaceanddormitories for workers. Recommendation 7: near majorairportsandseaports. Recommendation6: Encourage theclustering of manufacturing inonly afew areas inthecountry from the12%VAT. should consider allowingcost ofpower credittax asa and/orexemptpower usedfro manufacturing RecommendationAddress 5: high the costs ofpower throughcreditstax discounts. Government and means farmers cannotmeetdemandfor raw materials. move upthevaluechain. Inthecase of food and beverage manufacturing, low agricultural productivity Recommendation 4: Philippinesandthe Figureo6. Sharein ASEAN Source: 10% 15% 20% 25% 30% 35% 40% 45% 50% 0% 5% WTO; Note: No data for Vietnam before 1997 before Vietnam for data No Note: WTO;

1990 Figure 60.Share inASEAN-6 Total Manufactures Exports Improveof backward thequality andforward linkages tocompanies to enable Facilitate collaboration amonggovernment agencies involved to identify and Support labor-intensive manufacturers through wage subsidies, waiver of Conduct regulatorylawsrules and all assessments on impact related to 1991 1992 1993 1994 1995 1996 -

1997 Exports Manufactures Total 6 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2011 Nam Viet Thailand Singapore Philippines Malaysia Indonesia 2012 Arangkada Publications 2013 2014 2015 77

turing workforce of18%thetotal workforce. that nocountry hasreached theindustrialization stage withoutamanufac- about 10millionemployees. Recommendation13: poorer provinces orfor specificcategories ofmanufactured goods. more domesticmarket manufacturers, in accordance withprovisions either in in thePEZAAct, Recommendationcurrent 12:Maintain incentives for PEZAlocators andexpandzones to include jobs. The PEZAhasdemonstrated greatsuccess in attracting investment in manufacturing creatingand incentives, tax zones with long-termgovernmentwith assistance indealing leases, and land agencies. Recommendation 11:Supporttheestablishmentof more industrial domestic and export economic Increase financingprograms. their increase Moreover, standards. access to technologies trigger innovationthat andcreativity inproduct development export and production. including certifications, and standards product meet Recommendation 10:Upgrade/improveof products thequality offered byHelp enterprises MSMEs. of theindustryinwhich he/orsheisanexpert in. forBOI eachpriority product. Eachexpertguide governmentcan aspects ofdevelopment inmultiple Recommendation9: Embedaseasoned industry expert withinternational experience in theDTI/ Recommendation 20: Recommendation 19: infrastructure a comparative advantagein labor, raw materials, and technology as well asadequate soft and hard Recommendation 18:Develop globally competitive andinnovative manufactured products with value chains. Recommendation 17:Strengthen forward and backward linkages toward more efficient supply and OFWs. Recommendationaccess to Expand 16: economic opportunities forcooperatives, MSMEs, and Recommendation 15: from 8.3%in2016to 11.8%in2022. Recommendation 14:Increase manufacturing employment as a percentage of total employment This target was chosenbasedoninformation from Dr. Jesus Felipe at ADB Implementthecomprehensive nationalindustrialstrategy. Institutionalize theindustrycluster approach. Support linkages between MSMEsandlarge corporations. Target of18% of thetotalworkforce inmanufacturing byto 2030 amount 77 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe PDP 2017-2022 Arangkada Publications Philippinesandthe

Page 97 Page 98 Source: Nikkei,HIS ASEAN Manufacturing. As citedinBusinessWorld onSeptember5,2017. Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Philippinesandthe Figure 61.ASEAN Manufacturing Purchasing Managers’ Index, August 2017 PDP 2017-2022 (Points 9) Social ProtectionProgram and Poverty Alleviation Chapter 7: Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 99 Page 100 national disasters, and better political and policy stability than the Philippines. national disasters, andbetter politicalandpolicystabilitythanthePhilippines. (to varying degrees) have hadmore economic growth,more investmentjob creation, andquality fewer developmentthe Philippines(see Figure than with 63 latestdata) WB . These countries in pastdecades daya intheircountries,while IndonesiaandVietnamhave madebetter progress inthisindicator of (see Figure 62) fasterratepoor.a as at classified decline severaltobegan last povertyhas the years,the incidence In natural disasters, andweak economicgrowth created aconstantly high proportion ofthepopulation challenge inthePhilippines.Ahigh populationgrowth rate combinedwithpoorgovernance, frequent Cash Transfer program, to protect thepooragainst instability andeconomic shocks. Conditional government’s the including programs, protection social Improve 9: Point Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Within theASEAN region, Malaysia and Thailand have nearly eliminated poverty below $1.25 highThe ratepoverty of andthehighnumber ofpoorcitizenshasbeenapersistent development 10% 20% 30% 40% 50% 60% Figure a2. Povertyrate at $1.90/day (PPP) benchmark, %of population, 1991 Source: World Bank; World Source: Philippinesandthe 0% Figure 63.Poverty Rate at $1.90/day (PPP)Benchmark,%ofPopulation, 1991-2012 . 1991-1994 Source: families/individuals. of number total the to threshold poverty capita per the than less income capita per with families/individuals of proportion the is Incidence Poverty Note: Figure a1. Poverty in the Philippines, 2006 Philippines, the in Poverty a1. Figure % 10 15 20 25 30 0 5 PSA The plotted data represent the latest data given the indicated time interval. Gaps indicate absence of of data. absence indicate Gaps time interval. the given data indicated the latest represent data The plotted Figure 62.Poverty IncidenceinthePhilippines,2006-2015 2006 26.6 1995-1998 1999-2002 2009 26.3 - 2003-2006 2015 2012 25.2 Malaysia Thailand Vietnam Indonesia Philippines 2007-2010 - 2012 2015 21.6 2011-2012 78 equivalent to some three millionfamilies -claimingto have hadnothingto eatatleast onceinthepast respondents ifthey haveThe September tocounted hadnothing 2010 poll eat. 16%ofhouseholds - stunted. The Social Weather(SWS) measures Stations self-rated moderate andsevere hungerby asking stated: so thatthepercentage ofFilipinosinpoverty in2022willdeclineto 17%. poverty rate isdeclining.The targeted rate ofreduction oftheDuterte Administration is1.5% per year higher domestic andforeign investment, better governance,growth andadecliningpopulation rate, the country: The poorare often hungry.Their diet is inadequate. Their children are frequently malnourishedand 17 percent.” the next “Over sixyears, ourgoal is to reduce the rate poverty from the currentpercent 26 to just in WashingtonSpeaking D.C. inJanuary2016, the credit ratingagencies DOF Secretary Dominguez recentIn years, however, thePhilippinesisdoingbetter.consistent With stronger economic growth, According to the Philippine Statistics Authority, farmers and fishermen are among the poorest in the This isillustrated inFigure 64below. incidencehad higherpoverty than the general populationestimated at21.6%in2015.” families,poor tobelonging workers,women, family children, and unpaid self-employedfishermen, and thehighest incidence poverty Also,and 2012. 2009 in2006, theof 5 basic sectors9 consistingfarmers,of respectively.and 31.4%, 34.0% 34.3%, These sectors consistently registered asthe three sectors with at 2015 in incidences poverty highest the posted families poor or threshold poverty official the below Source: PhilippineStatistics Authority October 2016 “Among the nine basic sectors, farmers, fishermen and children belonging to families with income with families to belonging children and fishermen farmers, sectors, basic “Amongnine the 78

Figure 64.Poverty Incidencefor BasicSectors, 2006,2009,2012and2015 Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 101 Page 102 Php79 billioninthe2017 budget. toTotalchildhood diseasesmalnutrition. and combat funding increased fromin 2010 to Php10billion recipientstheir children onthecondition that are inoculated andparticipate inschoolfeeding programs nowhouseholds totalingmillion assists 4.4 Filipinos. Thetransfers20 million areprovided directlyto Pantawid PamilyangPilipino Program (4Ps) initiated by President Macapagal-Arroyo in2007. CCT population compared to otherpopulousAsianeconomies and Cambodiabutlower thanthe“moderate” rankings ofMalaysia, Thailand,andVietnam. it isstillconsiderably higher thantherate 15years before. three months, down from 21% in theJune2010 survey Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe The Aquino Administrationgreatly expandedConditional CashTransferthe (CCT) programor the Among theASEAN-6, thePhilippinesholds the highestas apercentagepopulation slum of urban The Hunger IndexGlobal rated the Philippines in 2015 as “serious,” inthesamecategory as Indonesia Philippinesandthe Figure 66.SlumPopulation as%ofUrban Population, SelectAsianCountries, 1990-2014 select Asian countries, 1990 countries, Asianselect Figurea5.SlumPopulation % Urbanof as Population, 10% 20% 30% 40% 50% 60% 70% Source: MDGS UN Statistics Division; Gaps indicate absence of absence indicate Gaps Division; Statistics UN MDGS Source: 0% Source: SWS Source: Figure a4. Degree of of self Degree a4. Figure 25% 10% 15% 20% 0% 5% 1990 Figure 65.Degree ofSelf-Rated Hunger inHouseholds,1998-2016 Severe Moderate Total 1995 - rated hungerrated in households, 1998 - 2014 2000 2005 (see Figurethis seemstoWhile 65). progress, be (see Figure 66). 2007 data. - 2016 2009 Indonesia Thailand China India Vietnam Philippines 2014 79

Figure a6. Social Services Expenditure Program, % of National Budget, 2014 Budget, of %National Program, Expenditure Services Social a6. Figure work dismissal. and (b)cushioningindividuals andtheirfamilies from theimpactofinvoluntary Recommendation 5: families. Recommendation 4: Recommendation 3: Recommendation 2: population. Recommendation 1: leakage. government agenciesto provide more targeted socialservices, and preventor double-counting allow will that system ID national a institute to need pressing the identified Participants services. RecommendationID system of national Implementation 11: for improved targetingof social Recommendation 10: sector. agriculturaland service sectors facilitatedbe will by government, incollaborationthe privatewith Recommendation 9: assistance financial provide linked to active and labormarket programs. unemployment, sudden during security income guarantee jobs, meaningful provide to system benefit separation involuntary an Recommendation 8:Implement Recommendation 7: and to helpchildbeneficiaries andtheirfamilies to becomemore self-sufficientandself-reliant.. Recommendation 6:EnhanceCCT program to ensurethe rights that ofpoor children are upheld This program will address income insecurityby: (a)facilitating re-employment 10% 20% 30% 40% 50% 0% Figure Expenditure 67.SocialServices Program, %ofNational Budget, 2014-2018 2014 37% Successfully implementexpanded CCT program to6.9 million poor include all Expandinsurance coverage to includemore poor. Continue to reduceabsoluteof poorin number termspercentageas and of Implement unemployment Insurance asa socialsafety net. Continue to reduce theincidenceofhunger. Establishunemployment insurance. 2015 37% Review oftheconditionalcashtransfer (CCT) program Create jobsandeconomic opportunities. Jobcreation intheindustrial, 2016 37% Ten-Point Socio-Economic Agenda oftheDuterte Administration 2017 40% 2018 38% 79

- Total social services social Total Education Health Employment and Welfare Security, Social Development Community and Housing Distribution Land Services Social Other 2018 Arangkada Philippinesandthe Sulong Pilipinas PDP 2017-2022 Arangkada Publications Source: Philippinesandthe DBM BESF DBM

Page 103 Page 104 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe Source:Rappler.com Philippinesandthe

Sponsors List Bibliography Annexes Ten-Point Socio-Economic Agenda oftheDuterte Administration Arangkada Philippinesandthe Philippinesandthe

Page 105 Page 106 Ten-PointTen-Point Socio-Economic Socio-Economic Agenda Agenda oftheDuterte oftheDuterte Administration Administration Arangkada Philippinesandthe 75% oftherated recommendations garnered atleastfourstars(started) six-starusing a system. Basedonthecollective evaluation doneby 35publicandprivate sector experts, Project’s The JointForeign Chambers ofthePhilippines ispleasedto sendyou acopy ofThe Your Excellency: San Miguel,Manila PalaceMalacanang President oftheRepublic ofthePhilippines His Excellency Benigno S.Aquino III March 7,2016 event. Over 600delegates, speakers from bothgovernment andprivate sectors, andthemediaattended thisyear’s Fifth Anniversary Forum, which carried thetheme The FifthAnniversary Assessmentwas unveiledMarch on Hotel theMarriott 1,2016at during ouradvocacy’s the DepartmentofTrade andIndustry. contained inArangkada Philippines: ABusiness Perspective Annexes Out ofthe471recommendations distributed among29 policyareas oftheadvocacy, 462were rated Philippinesandthe (TAPP) 10% 20% 30% 40% 50% 60% 70% 80% 0%

Fifth AnniversaryAssessment Started 2011 to Substantial Progress Completed 2012 Arangkada Completed Started Recommendations2011 Summary: 2013 , thelastinseriesofassessmentsrecommendations Arangkada Philippines: ABolderandMore Inclusive Decade! 2014 publishedinDecember2010andlaunchedwith Not Backward / Backward Regression Ongoing to 2015 - 2015 0% 10% 20% 30% 40% 50% , andwere thusconsidered Arangkada Philippines Dormant, lhs Dormant, lhs Active, rhs Started, rhs Progress, Substantial rhs Completed,

Sincerely, improve theinvestment climate to stimulate more investment, jobgrowth, andlesspoverty. agenda andattaining and encourage them to study andpartner withtheprivate all sector intheirimplementation. important reforms for thedecadeahead.We willshare eachnote withtheresponsible government department evaluate therecommendations for eachoftheSeven BigWinner Sectors madein2010andrecommend to keep thecountrymoving forward twiceasfast andto achieve inclusive growth. mining, power, seaports, water, businesscosts,foreign equityandprofessionals, andhealth. legislation, security, andpoverty. education, environment andnatural disasters, governance, labor, judicial, governance, local macroeconomic policy, business process outsourcing, tourism, infrastructure policy, airports,roads andrails, telecommunications, recommendations. active51% only had which AnniversaryAssessment, First improvementthe overreflect These dormant. as to beactive or moving, while theremaining 25%were rated three ortwo stars,thereby categorizing them Annexes European Chamber ofCommerce American ChamberofCommerce Thank you andbestregards. In thespirit ofastronger public-private partnership,theJFC looks forward to continuedcollaboration to We hope you find this document a valuable source of insights into furthering your administration’s reform Following thisyear’s theme,eachoftheseven foreign chambersproduced onePolicy Note, which re- The experts recommendations ofall detailedthestatus inthebookaswell asthecontinuingchallenges Eleven sectors/subsectors were rated aslessactive/moving: creative industries,logistics,manufacturing, Eighteen sectors/subsectors were rated as of the Philippines, Inc. of the Philippines, Inc. Guenter Taus Rick Santos President President inclusive growth! Companies Regional Headquarters, Inc. Philippine AssociationofMultinational Australian-New ZealandChamber of and Industry ofthe Philippines, Inc. and Industry Commerce ofthe Philippines, Inc. Japanese ChamberofCommerce Yoshio Amano more active/moving Tom Grealy Dan Molloy President President President Ten-Point Socio-Economic Agenda oftheDuterte Administration : growth, competitiveness, agribusiness, Canadian Chamber ofCommerce Korean Chamber ofCommerce of the Philippines, Inc. of the Philippines, Inc. Arangkada Philippinesandthe Julian Payne Ho-Ik Lee President President Philippinesandthe

Page 107 Page 108 Annexes Annexes

Page 109 Page 110

Status of JFC-PBG Legislative Priorities Annexes

JFC-PBG Legislative Priorities PDP* CLA** PLA*** Status Senate: UnderConstitutional Amendments Committee Constitutional Amendments Ch 9 X 7 1 (foreign equity restrictions) Deliberation House: Pending Second Reading Comprehensive Tax Reform Senate: Under Ways and Means Committee Deliberation 2 Ch 15 4 4 Package House: Approved on Third Reading (HB 5636) Senate: Pending Second Reading (Interpellations) 3 Apprenticeship Program Reform Ch 10 X X House: Pending in Labor and Employment Committee Senate: Pending in Public Works Committee 4 BOT Law amendments Ch 15 22 33 House: Public Works Committee TWG deliberation Senate: Pending Second Reading (Interpellations) 5 Freedom of Information Ch 5 X 15 House: Approved by Public Information Committee Senate: Pending Second Reading (Amendments) 6 Corporation Code amendments Ch 5 X X House: Pending in Trade and Industry Committee Senate: Pending in Public Services Committee 7 PublicService Act amendments Ch 9, 16 12 X House:Period of Interpellations and Amendments Senate: Pending in Science and Technology Committee 8 Telecom reforms Ch 5, 19 X X House: Under ICT Committee deliberationTWG Senate: Pending in Public Services Committee Ch 19, 9 Water Sector Reform Act X 50 House: Under Government Enterprises Joint with Public Works 20 Committee deliberation Senate: Under Banks Committee deliberation 10 Bank Secrecy Law amendments Ch 15 X 36 House: Pending in Banks Committee (includedin Tax Reform Bill) Senate: Pending Second Reading (Interpellation) Emergency powers to address X 5 6 11 traffic and transportation crises House: Approved by Transportation and Appropriations Committee Senate: Not Yet Filed 12 Retail Trade Act amendments Ch 9 X X House: Pending in Trade Committee *Philippine Development Plan- 20222017 **LEDAC-ApprovedCommon Legislative Agenda of the Congress of the PhilippinesAugust (as 29, of 2017 ) ***President’s LegislativeAgenda (as ofJuly 28, 2017)

Prepared by: Yves Aguilos, Government Liaison, AmCham

Updated as Septemberof 4, 2017 Page 110

Status of JFC-PBG Legislative Priorities Annexes

JFC-PBG Legislative Priorities PDP* CLA** PLA*** Status Senate: UnderConstitutional Amendments Committee Constitutional Amendments 1 Ch 9 X 7 Deliberation (foreign equity restrictions) House: Pending Second Reading Comprehensive Tax Reform Senate: Under Ways and Means Committee Deliberation 2 Ch 15 4 4 Package House: Approved on Third Reading (HB 5636) Senate: Pending Second Reading (Interpellations) 3 Apprenticeship Program Reform Ch 10 X X House: Pending in Labor and Employment Committee Senate: Pending in Public Works Committee 4 BOT Law amendments Ch 15 22 33 House: Public Works Committee TWG deliberation Senate: Pending Second Reading (Interpellations) 5 Freedom of Information Ch 5 X 15 House: Approved by Public Information Committee Senate: Pending Second Reading (Amendments) 6 Corporation Code amendments Ch 5 X X House: Pending in Trade and Industry Committee Senate: Pending in Public Services Committee 7 PublicService Act amendments Ch 9, 16 12 X House:Period of Interpellations and Amendments Senate: Pending in Science and Technology Committee 8 Telecom reforms Ch 5, 19 X X House: Under ICT Committee deliberationTWG Senate: Pending in Public Services Committee Ch 19, 9 Water Sector Reform Act X 50 House: Under Government Enterprises Joint with Public Works 20 Committee deliberation Senate: Under Banks Committee deliberation 10 Bank Secrecy Law amendments Ch 15 X 36 House: Pending in Banks Committee (includedin Tax Reform Bill) Senate: Pending Second Reading (Interpellation) Emergency powers to address 11 X 5 6 House: Approved by Transportation and Appropriations traffic and transportation crises Committee Senate: Not Yet Filed 12 Retail Trade Act amendments Ch 9 X X House: Pending in Trade Committee *Philippine Development Plan- 20222017 **LEDAC-ApprovedCommon Legislative Agenda of the Congress of the PhilippinesAugust (as 29, of 2017 ) ***President’s LegislativeAgenda (as ofJuly 28, 2017)

Prepared by: Yves Aguilos, Government Liaison, AmCham

Updated as Septemberof 4, 2017 Annexes Infrastructure Flagship Projects As of 27 June 2017

Co- Total Project Implementing Ground- Funding Feasibility ICC/NEDA Board No. Implementing Project Title Region Cost (PhP Start End Remarks Agency breaking Source Study Processing/Approval Agency Million) NEDA Board Approved I. 1 DOTr PNR North 2 (Malolos-Clark Airport-Clark Green NCR,City Region III Mar-18 Japan 211,460.00 2018 TBD Completed NEDA Board approvedThe Pre-Feasibility Study for the project was submitted by Rail) JOIN to the DOTr last March 2017. The Project is also among those being considered for possible pledging by the GOJ by November 2017.

20 March 2017 Letter from DOTr on the "PNR Luzon System Development Framework (Phasing, Funding Source and Implementation Mode) indicates that the project cost for the build component amounts to PhP150 billion.

2 MWSS DPWH New Centennial Water Source - Kaliwa Dam ProjectNCR, Region IV-A Sep-17 China 10,857.00 2017 2023 Completed NEDA Board approvedThe NEDA Board confirmed ad referendum the proposed change in financing of the project from PPP to ODA Project was approved by ICC and confirmed by the NEDA Board in 2014 for PPP financing and implementation.

The ICC, on March 21, 2017, confirmed the proposed change in financing of the Project from PPP to ODA.

Taking off from the 03 April 2017 ICC Action Letter to MWSS, the latter, through its 06 April 2017 letter, provided

a copy of its Board of Trustees Resolution No. 2017-040-CO dated 05 April 2017 endorsing the Project and confirming the new estimated cost of PhP10.857 billion.

3 DOTr BCDA Clark International Airport New Terminal BuildingRegion III Jun-17 GAA 15,354.48 2017 2020 Completed NEDA Board approvedThe ICC-CC, during its 17 May 2017 meeting, reaffirmed its Project previous approval of the project on April 23, 2015.

The ICC-CC reaffirmation of its approval is with the understanding that the submission of the project for NEDA Board confirmation is contingent on the BCDA submission of the DOF-Corporate Affairs Group (CAG) review of the

project and updated information on the demand projection for the project in terms of number of passengers per annum.

4 DPWH to Road LinkNCR Jun-17 GAA 1,857.30 2017 2020 Completed NEDA Board approved Project , Phase I, IIA & IIB (Sta Monica-Lawton Bridge) 5 DOTr MRT-LRT Common Station Project NCR Dec-17 GAA 2,800.00 2017 TBD Completed NEDA Board approvedNEDA Board confirmed ad referendum the new configuration and cost 6 DOTr Metro Manila BRT - Line 1 (Quezon Avenue) NCR Q1 2018 WB/AFD 4,789.08 2018 2021 Completed NEDA Board approvedManila City Hall - Quezon Memorial Circle Bidding Q4 2017 7 DOTr Metro Manila BRT - Line 2 (EDSA/Central) NCR Q1 2018 ODA 37,760.00 2018 2021 Completed NEDA Board approvedPartner in ODA to be determined Monumento - SM MOA 8 DPWH Cavite Industrial Area Flood Management Project Region IV-A 2018 Japan 9,990.00 2019 2022 Completed NEDA Board approvedBased on PIPOL, the total project cost is PhP8,918.00 Million and the project is expected to start in 2019. II. Rest of Luzon 9 NIA Chico River Pump Irrigation Project CAR, Region II Sep-17 China 2,696.00 2017 TBD Completed NEDA Board approvedThe ICC, on March 21, 2017, confirmed the proposed change in financing of the Project from GAA to ODA. III. Visayas 10 DOTr Iloilo Airport RegionVI 2017 GAA 30,400.00 2017 2025 Completed NEDA Board approvedThe ICC-CC, in its 17 May 2017 meeting, noted the decision of DOTr to suspend the bidding of the five unbundled airports. DOTr will undertake the development of the five airports using the General Appropriations Act.

11 DOTr New Cebu International Container Port Region VII Dec-17 Korea 9,200.00 2017 TBD Completed NEDA Board approvedNB approved cost 9.2 billion (not indicated in PIPOL)

Page 111 Page 112 Annexes Infrastructure Flagship Projects As of 27 June 2017

Co- Total Project Implementing Ground- Funding Feasibility ICC/NEDA Board No. Implementing Project Title Region Cost (PhP Start End Remarks Agency breaking Source Study Processing/Approval Agency Million) 12 DOTr New Bohol Airport Region VII 2017 GAA 4,570.00 2017 2025 Completed NEDA Board approved The ICC-CC, in its 17 May 2017 meeting, noted the decision of DOTr to suspend the bidding of the five unbundled airports. DOTr will undertake the development of the five airports using the General Appropriations Act.

13 DOTr Bacolod Airport NIR 2017 GAA 20,260.00 2017 2025 Completed NEDA Board approved The ICC-CC, in its 17 May 2017 meeting, noted the decision of DOTr to suspend the bidding of the five unbundled airports. DOTr will undertake the development of the five airports using the General Appropriations Act. IV. Mindanao 14 NIA Malitubog-Maridagao Irrigation Project, Phase II ARMM, Region 2011 Japan 5,444.84 2011 2019 Completed NEDA Board approved NEDA Board endorsed the change in scope, cost, and XII financing of the ongoing project. 15 DPWH Panguil Bay Bridge Project Region X Sep-17 Korea 4,858.99 2017 2020 Completed NEDA Board approved 16 DOTr Laguindingan Airport Region X 2017 GAA 14,620.00 2017 2025 Completed NEDA Board approved The ICC-CC, in its 17 May 2017 meeting, noted the decision of DOTr to suspend the bidding of the five unbundled airports. DOTr will undertake the development of the five airports using the General Appropriations Act.

17 DOTr Davao Airport Region XI 2017 GAA 40,570.00 2017 2025 Completed NEDA Board approved The ICC-CC, in its 17 May 2017 meeting, noted the decision of DOTr to suspend the bidding of the five unbundled airports. DOTr will undertake the development of the five airports using the General Appropriations Act.

18 DOTr Mindanao Rail Project (Phase 1) - Tagum Davao DigosRegion XI Q1 2018 GAA 35,257.00 2018 2019 Completed NEDA Board approved FS for Tagum-Davao-Digos (TDD) segment to be submitted Segment to ICC in April 2017 Sub-Total (NEDA Board Approved) 462,744.69

ICC Approved/For NEDA Board Confirmation I. Mega Manila 1 DOTr PNR South Commuter Line (Tutuban-Los Baños) Region IV-A, NCR TBD ODA 134,000.00 TBD 2022 Completed ICC approved 20 March 2017 Letter from DOTr on the "PNR Luzon System development Framework (Phasing, Funding Source and Implementation Mode)" indicates that, for the PNR South Commuter (a.k.a. NSRP South Line), the selection of formally committed ODA partner for the build component costing PhP134 billion is being determined; Single O&M PPP Concessionaire for the North and South Commuter Lines

II. Mega Manila and Rest of Luzon 2 DOTr PNR Long-haul (Calamba-Bicol) Region IV-A, Dec-17 China 151,000.00 2017 2024 Completed ICC approved 20 March 2017 Letter from DOTr on the "PNR Luzon Region V System Development Framework (Phasing, Funding Source and Implementation Mode)" indicates that PNR South Long- haul (a.k.a. NSRP South Line) is from Los Baños to Matnog with spur line from Calamba to Batangas; Total project cost for the build component is PhP151 billion committed for China ODA funding. Sub-Total (ICC Approved) 285,000.00

Pipeline for ICC Processing/Approval I. Mega Manila 1 DPWH Mindoro - Batangas Super Bridge Region IV-A, 2020 China 30,883.40 2020 3 and BeyNo F/S To be submitted to ICC Region IV-B 2 DPWH Aqueduct No. 7 (AQ-7) Region III, NCR TBD China TBD TBD TBD No F/S To be submitted to ICC 3 DPWH Ipo Dam No. 3 Region III, NCR TBD China TBD TBD TBD No F/S To be submitted to ICC 4 BCDA Clark-Subic Rail Region III Dec-17 China 57,600.00 2017 2021 Ongoing To be submitted to ICC FS to be completed in 2017

15 March 2017 letter of BCDA to NEDA and DOF indicates that the F/S will be locally funded. Infrastructure Flagship Projects As of 27 June 2017 Annexes

Co- Total Project Implementing Ground- Funding Feasibility ICC/NEDA Board No. Implementing Project Title Region Cost (PhP Start End Remarks Agency breaking Source Study Processing/Approval Agency Million) 5 BCDA Clark Green City Government Center Region III Jan-18 GAA TBD 2018 TBD No F/S To be submitted to ICC 6 BCDA Clark Green City Mixed-Income Housing Region III Jan-18 PPP TBD 2018 TBD No F/S To be submitted to ICC 7 BCDA Clark Green City Commercial Center Region III Jan-18 PPP TBD 2018 TBD No F/S To be submitted to ICC 8 DPWH East, Phase I and II Region III Jun-18 China 44,610.09 2018 2022 No F/S To be submitted to ICCFS to start by June 2017 9 DPWH Binondo-Intramuros Bridge NCR Sep-17 China 2,300.00 2017 TBD Completed To be submitted to ICCFS to be completed by April 2017 10 DPWH Estrella-Pantaleon Bridge NCR Sep-17 China 1,200.00 2017 TBD Completed To be submitted to ICCFS to be completed by April 2017 11 DOTr Metro Manila BRT - Phase 3 (BGC-NAIA Segment)NCR Nov-17 China 40,000.00 2017 2020 Ongoing To be submitted to ICCBGC-NAIA, FS to be completed in 2017

15 March 2017 letter of BCDA to NEDA and DOF indicates that the F/S will be locally funded. 12 DOTr Manila Metro Line 9 (Mega Manila Subway ProjectNCR - Dec-18 Japan 230,000.00 2018 2022 Ongoing To be submitted to ICCThe conduct of the F/S for the project is currently ongoing Phase 1) and is expected to be completed by July 2017 per DOTr’s latest presentation. The project is expected to be submitted by DOTr to NEDA immediately after the completion of the F/S, with the view to securing ICC/NEDA Board approval by October 2017 and subsequent pledging by the GOJ at the sidelines of the upcoming ASEAN Summit meeting at Manila in November 2017.

13 DPWH Improvement of remaining sections along Pasig RiverNCR 2018 Japan 1,000.00 2018 2020 Ongoing To be submitted to ICC from Delpan Bridge to Napindan Channel 14 DA Regional Fish Port Project for Greater Capital RegionNCR 2018 GAA 10,639.99 2018 2020 Ongoing To be submitted to ICC (Upgrading / Rehabilitation of Fish Port Complex) 15 DPWH Ayala Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 16 DPWH Pandacan-Sta Ana Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 17 DPWH Blumentritt-Antipolo Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 18 DPWH Sheridan-JP Rizal Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 19 DPWH Kabayan-Katipunan Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 20 DPWH Reposo-Guatemala Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 21 DPWH JP Rizal-Yale Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 22 DPWH G Gabriel Mercury Ave Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 23 DPWH Robinson Bridge NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 24 DPWH East-west Bank Bridge 1 NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 25 DPWH East-west Bank Bridge 2 NCR Jan-18 TBD TBD 2018 TBD Ongoing To be submitted to ICCFS to be completed in 2017 26 DPWH Circumferential Road 3 (C3) Missing Link ProjectNCR 2018 Japan 10,500.00 2018 2023 No F/S To be submitted to ICCFS to start by June 2017

Request forwarded to the DOF on March 24, 2017, as part of the Nationwide Island Provinces Link Bridges for Sustained Development, for onward transmittal to the Chinese Government.

II. Rest of Luzon 27 NIA Gregorio del Pilar Impounding Project Region I 2019 China 3,452.00 2019 2023 Completed To be submitted to ICC 28 NIA Ilocos Norte Irrigation Project, Stage 2 Region I 2019 China 14,994.04 2019 2026 Ongoing To be submitted to ICCFS to be completed in 2017 29 NIA Tumauini River Multipurpose Project Region II 2019 China 4,003.30 2019 2021 Ongoing To be submitted to ICCFS to be completed in 2017 30 DPWH Pasacao - Balatan Tourism Coastal Highway Region V Mar-18 China 4,740.00 2018 2024 No F/S To be submitted to ICC 31 DPWH Camarines Sur Expressway Project (San Fernando-PiliRegion V Mar-18 China 2,251.00 2018 2023 No F/S To be submitted to ICC Section) 32 DPWH Camarines - Catanduanes Friendship Bridge (NationwideRegion V 2020 China 22,030.16 2020 3 and BeyNo F/S To be submitted to ICC Island Provinces Link Bridges)

III. Visayas 33 DPWH Panay-Guimaras-Negros (PGN) Island Bridge ProjectRegion VI, NIR Q4 2018 China 27,156.81 2018 TBD No F/S To be submitted to ICCFS to start by Sept. 2017

Page 113 Page 114 Annexes Infrastructure Flagship Projects As of 27 June 2017

Co- Total Project Implementing Ground- Funding Feasibility ICC/NEDA Board No. Implementing Project Title Region Cost (PhP Start End Remarks Agency breaking Source Study Processing/Approval Agency Million) 34 DPWH Bohol - Leyte Link Bridge ( included in the NationwideRegion VII, Region Q1 2019 China 72,061.28 2019 TBD No F/S To be submitted to ICCChina Grant: FS to start by June 2017 Island Provinces Link Bridges) VIII Request forwarded to the DOF on March 24, 2017, as part of

the Nationwide Island Provinces Link Bridges for Sustained Development, for onward transmittal to the Chinese Government. 35 DPWH Cebu - Negros Link Bridge (Nationwide Island ProvincesRegion VII, NIR Q1 2019 China 14,412.26 2019 TBD No F/S To be submitted to ICCFS to start by Sept. 2017 Link Bridges)

36 NIA Panay River Basin Integrated Development ProjectRegion VI 2018 China 19,300.00 2018 2025 Ongoing To be submitted to ICCFS to be completed by 1st quarter 2017 37 NIA Bohol Northeast Basin Multipurpose Project Region VII 2019 China 4,134.00 2019 2023 Ongoing To be submitted to ICCFS to be completed in 2017 38 DPWH Cebu - Bohol Link Bridge (Nationwide Island LinkRegion VII Q4 2018 China 56,619.58 2018 TBD No F/S To be submitted to ICCThe DPWH has yet to submit proposal for F/S. Bridges) IV. Mindanao TBD Japan TBD TBD TBD No F/S To be submitted to ICC 39 ARMM Road Network Development Project in Conflict AffectedRegion IX, Region Areas in Mindanao X, Region XI, Region XII, Region XIII 40 DOTr Mindanao Railway Project (Phase 3) Region X, Region TBD China TBD TBD TBD No F/S To be submitted to ICC XI, Region XII, Region XIII

41 DOTr Mindanao Railway Project (Phase 2) Region XI, Region TBD China TBD TBD TBD Ongoing To be submitted to ICC XIII 42 DA Rehabilitation / Improvement of the Zamboanga FishRegion Port IX 2018 GAA 1,387.17 2018 2020 Completed To be submitted to ICCDA Letter dated 22 March requests inclusion in the pipeline Complex for GOJ ODA. However, it was not discussed in the Philippine - Japan Joint Committee on Infrastructure Development and Economic Cooperation Dialogue.

43 DOE Agus 6 Unit 4 Major Rehabilitation Project Region X 2018 China 504.00 2018 2018 No F/S To be submitted to ICCSouthern Segment From N. Domingo St. in San Juan City to Buendia Ave. in Makati City

The project is currently in its preparatory stages with technical assistance from JICA. The project is targeted to be implemented in 2018.

44 DPWH Balo-i Plains Flood Control Project Region X 2020 China 2,100.00 202023 and beyNo F/S To be submitted to ICC 45 DOE Pulangi 4 Selective Dredging Phase 3 Region X TBD China 500.00 TBD TBD No F/S To be submitted to ICCPursuit of the project subject to the completion of Pulangi 4 Selective Dredging Phase 2 46 DOE Rehabilitation and uprating of all Agus-Pulangi Region X TBD China TBD TBD TBD No F/S To be submitted to ICC Hydroelectric Plant Units 47 DOE Agus 3 Hydroelectric Plant Region X TBD China TBD TBD TBD No F/S To be submitted to ICC 48 NIA Asbang Small Reservoir Irrigation Project Region XI 2019 China 1,400.00 2019 2025 Completed To be submitted to ICC 49 DPWH Expressway Project Region XI 2018 China 25,625.00 2018 2021 No F/S To be submitted to ICCRestoration of capacity from 25MW (deration) to 50MW rated capacity 50 DPWH Ambal Simuay Sub-Basin of the Mindanao River RegionBasin XII Mar-18 China 13,657.58 2018 2023 No F/S To be submitted to ICCFull FS preparation proposed for Chinese Government Flood Control and River Protection Project financing. FS to be submitted to NEDA ICC for review.

IV. Nationwide/Multi-Regional Annexes Infrastructure Flagship Projects As of 27 June 2017

Co- Total Project Implementing Ground- Funding Feasibility ICC/NEDA Board No. Implementing Project Title Region Cost (PhP Start End Remarks Agency breaking Source Study Processing/Approval Agency Million) 51 DA Nationwide Fish Ports Project (Package III) Region I, Region IV-2018 GAA 3,353.44 2018 2020 Completed To be submitted to ICCThe project consists of improvement/ rehabilitation of 5 A, Region V, regional fish ports. If the ports are to be implemented Region VI, Region, separately, it may not require ICC/NEDA Board Approval IX DA Letter dated 22 March requests inclusion in the pipeline for GOJ ODA. However, it was not discussed in the Philippine - Japan Joint Committee on Infrastructure Development and Economic Cooperation Dialogue.

52 DPWH Dalton Pass East Alignment Alternative Road ProjectRegion II, Region Jun-18 Japan 4,018.00 2018 2021 Ongoing To be submitted to ICC31 March 2017 exchange rates: 1USD = PHP50.194 (East Dalton Bypass Project) III 53 DPWH Quezon-Bicol Expressway Region IV-A, Jun-18 GAA TBD 2018 TBD Ongoing To be submitted to ICC Region V 54 DPWH Luzon - Samar Link Bridge (Nationwide Island ProvincesRegion V, Region Q1 2019 China 57,649.02 2019 TBD No F/S To be submitted to ICCFS to start by Sept. 2017 Link Bridges) VIII 55 DPWH Leyte - Surigao Link Bridge(Nationwide Island LinkRegion VIII, Q1 2019 China 47,354.55 2019 TBD No F/S To be submitted to ICCFS to start by Sept. 2017 Bridges) Region XIII Request forwarded to the DOF on March 24, 2017, as part of

the Nationwide Island Provinces Link Bridges for Sustained Development, for onward transmittal to the Chinese Government. Sub-Total (Pipeline) 831,436.66 TOTAL 1,579,181.35

Page 115 Page 116 Annexes List ofWebsites of Department of Budget and Management and Budget of Department Report Competitiveness Global Japan International Cooperation Agency (JICA) Center PPP NEDA Infrastructure: Policy UNESCO Compet Design Philippine Missions and Expositions Trade International for Center Philippines the of Center Design and Development Product World Intellectual Organization Property Creative Industries Philippines the of Association Process Business and IT Business Process Outsourcing Resources Research Natural and Aquatic, Agriculture, for Council Philippine Food and Agriculture Organization Department of Ag Agribusiness 2016) (April Update Economic Philippine Performance Environmental Report Competitiveness Tourism and Travel Report Competitiveness Global Paying Ranks Taxes Investing Across Borders Rankings Business Doing of Ease E Index Development Human Index Perception Corruption Index Rights Property International Development Management for Institute by Yearbook Competitiveness World Freedom Economic of Index Fragile Index States Forbe Council Competitiveness National International Monetary Fund Authority Statistics Philippine Plan Development Philippine Confederation Exporters Philippine Industry and Trade of Department ng Pilipinas Sentral Bangko Philippine Chamber of Commerce and Industry, Inc. Philippines the of Association Management Makati Business Club Korean Chamber of Commerce of the Inc. Philippines, Japanese Chamber of Commerce and Industry of the European Chamber of Commerce of the Canadian Chamber of Commerce of the Philippines, Inc. Inc. Philippines, Australian American Chamber of Commerce of the Philippines, Inc. XX.Annex List of Websites of

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Best Country for Business List - UNDP Creative Economy Report Economy Creative UNDP - New Zealand Zealand New

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http://www.competitive.org.ph/ http://www.imf.org/en/Countries/ResRep/PHL http://psa.gov.ph/ http://pdp.neda.gov.ph/ http://www.philexp http://www.dti.gov.ph/index.php http://www.bsp.gov.ph/statistics/efs_ext3.asp http://philippinechamber.com/ http://www.map https://mbc.com.ph/ http://www.kccp.ph/xe/ http://www.jccipi.com.ph/ http://www.eccp.com/ http://cancham.com.ph/ http://anzcham.com/ http://www.amchamphilippines.com/ http://www.dbm.gov.ph/ 2016/ http://reports.weforum.org/global https://www.jica.go.jp/english/ http://ppp.gov.ph/ 2013.pdf http://www.unesco.org/culture/pdf/creative 10557/ http://www.officialgazette.gov.ph/2013/05/15/republic http://www.citem.gov.ph/ http://server2.dti.gov.ph/dti/index.php?p=183 http://www.wipo.int/portal/en/index.html http://www. http://www.pcaarrd.dost.gov.ph/home/portal/ http://www.fao.org/home/en/ http://www.da.gov.ph/ Update 838/pdf/104611 http://documents.worldbank.org/curated/en/845151468185031 http://epi.yale.edu/ report http://reports.weforum.org/travel 2016/ http://reports.weforum.org/global taxes http://www.doingbusiness.org/reports/thematic http://iab.worldbank.org/ http://www.doingbusiness.org/rankings http://www.unpan.org/egovkb/global_reports/08report.htm http://h https://www.transparency.org/research/cpi/overview http://internationalpropertyrightsindex.org/ rankings/world http://www.imd.org/wcc/world http://www.heritage.org/index/ http://fundforpeace.org/fsi/ https://www.forbes.com/best

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Department of Budget and Management and Budget of Department Report Competitiveness Global Japan International Cooperation Agency (JICA) Center PPP NEDA Infrastructure: Policy UNESCO Compet Design Philippine Missions and Expositions Trade International for Center Philippines the of Center Design and Development Product World Intellectual Organization Property Creative Industries Philippines the of Association Process Business and IT Business Process Outsourcing Resources Research Natural and Aquatic, Agriculture, for Council Philippine Food and Agriculture Organization Department of Ag Agribusiness 2016) (April Update Economic Philippine Performance Environmental Report Competitiveness Tourism and Travel Report Competitiveness Global Paying Ranks Taxes Investing Across Borders Rankings Business Doing of Ease E Index Development Human Index Perception Corruption Index Rights Property International Development Management for Institute by Yearbook Competitiveness World Freedom Economic of Index Fragile Index States Forbe Council Competitiveness National International Monetary Fund Authority Statistics Philippine Plan Development Philippine Confederation Exporters Philippine Industry and Trade of Department ng Pilipinas Sentral Bangko Philippine Chamber of Commerce and Industry, Inc. Philippines the of Association Management Makati Business Club Korean Chamber of Commerce of the Inc. Philippines, Japanese Chamber of Commerce and Industry of the European Chamber of Commerce of the Canadian Chamber of Commerce of the Philippines, Inc. Inc. Philippines, Australian American Chamber of Commerce of the Philippines, Inc. XX.Annex List of Websites of

- Government Readiness Survey Readiness Government s ’

Best Country for Business List - UNDP Creative Economy Report Economy Creative UNDP - New Zealand Zealand New

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and Development and

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http://www.dbm.gov.ph/ 2016/ http://reports.weforum.org/global https://www.jica.go.jp/english/ http://ppp.gov.ph/ 2013.pdf http://www.unesco.org/culture/pdf/creative 10557/ http://www.officialgazette.gov.ph/2013/05/15/republic http://www.citem.gov.ph/ http://server2.dti.gov.ph/dti/index.php?p=183 http://www.wipo.int/portal/en/index.html http://www. http://www.pcaarrd.dost.gov.ph/home/portal/ http://www.fao.org/home/en/ http://www.da.gov.ph/ Update 838/pdf/104611 http://documents.worldbank.org/curated/en/845151468185031 http://epi.yale.edu/ report http://reports.weforum.org/travel 2016/ http://reports.weforum.org/global taxes http://www.doingbusiness.org/reports/thematic http://iab.worldbank.org/ http://www.doingbusiness.org/rankings http://www.unpan.org/egovkb/global_reports/08report.htm http://h https://www.transparency.org/research/cpi/overview http://internationalpropertyrightsindex.org/ rankings/world http://www.imd.org/wcc/world http://www.heritage.org/index/ http://fundforpeace.org/fsi/ https://www.forbes.com/best http://www.competitive.org.ph/ http://www.imf.org/en/Countries/ResRep/PHL http://psa.gov.ph/ http://pdp.neda.gov.ph/ http://www.philexp http://www.dti.gov.ph/index.php http://www.bsp.gov.ph/statistics/efs_ext3.asp http://philippinechamber.com/ http://www.map https://mbc.com.ph/ http://www.kccp.ph/xe/ http://www.jccipi.com.ph/ http://www.eccp.com/ http://cancham.com.ph/ http://anzcham.com/ http://www.amchamphilippines.com/

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Annexes National Irrigation Administration Irrigation National , Inc. Company, Inc. Metropolitan Waterworks and Sewerage System Program DPWH DPWH Team Coordination DPWH Local Water Utilities Administration New Centennial Water Source Bulacan National Water Resources Board Water Authority Information Resource and Mapping National Project Geoportal Philippine The Center Computer National e Philippine Cloud Government Center Data Government National Government Network Services Web Hosting Government Project Philippines Government Integrated 2011 Strategy Digital Philippine Office Technology Communications Department 7925 RA Telecommunications Authority Industry Maritime Authority Ports Philippine Report Competitiveness Global Seaports Communications and Transportation of Department Highways and Works Public of Department Rail and Roads 2014 the Philippines for Roadmap Efficiency Energy An 2016- Plan Action Conservation and Efficiency Energy Philippines Energy Regulatory Commission (ERC) Philippines the of Corporation Grid National Wholesale Electricity Spot Market PSALM Power Sector Assets and Liabilities Management Corpora Energy of Department Power Clark Authority Airport International Manila Philippines the of Authority Aviation Civil PPP Projects Communications and Transportation of Department Airports Authority Development Economic National ( Fund Monitoring Development Project Highways and Works Public of Department

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National Sewerage and Septage Septage and Sewerage National Cluster Project Management Flood Integrated W

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nservation_roadmap2014 content/uploads/2015/08/Philippines_energy_efficiency_and_co http://www.investphilippines.info/ara plan2016 content/uploads/2015/08/philippines_energy_efficiency_action_ http://www.investphilippines.info/arangkada/wp http://www.erc.gov.ph/ http://www.ngcp.ph/ http://www.wesm.ph/ https://www.psalm.gov.ph/ http://www.doe.gov.ph/ http://crk.clarkairport.com/ http://125.60.203.88/miaa/ http://www.caap.gov.ph/ http://www.neda.gov.ph/ http://ppp.gov.ph/?page_id=26094 http://www.dpwh.gov.ph/dpwh/ http://www.nia.gov.ph/ http://www.mayniladwater.com.ph http://www.manilawater.com/Pages/Home.aspx http://mwss NSSMP http://www.dpwh.gov.ph/dpwh/references/guidelines_manuals/ chart/bureau/services/UPMO/FCMC http://www.dpwh.gov.ph/dpwh/org 071 resources http://www.dpwh.gov.ph/dpwh/tags/integrated http://www.lwua.gov.ph/ kaliwa http://mwss.gov.ph/projects/new project http://ppp.gov.ph/?ppp_projects=bulacan http://www.nwrb.gov.ph/ http://www.namria.gov.ph/ http://www http://www.ncc.gov.ph http://i.gov.ph/pegif/ http://i.gov.ph/govcloud/ http://i.gov.ph/ngdc/ http://i.gov.ph/govnet/ http://i.gov.ph/gwhs/ http://i.gov.ph/ 2015.pdf content/uploads/2014/06/philippine http://www.dict.gov.ph/wp ask=vie http://www.asti.dost.gov.ph/index2.php?option=com_content&t html http://www.lawphil.net/statutes/repacts/ra1995/ra_7925_1995. http://www.marina.gov.ph/ http://www.ppa.com.ph/ 2016/ http://reports.weforum.org/global http://dotr.gov.ph/ http://www.trb.gov.ph/ http://www.dpwh.gov.ph/dpwh/

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Annexes Transfer) Cash (Conditional Program Pilipino Pamilyang Pantawid on Self Survey SWS Annual Poverty Indicator Surveys Poverty 2012 of Act Health Reproductive and Parenthood Responsible The Philhealth Organization Health World andPopulation Health &IT Business Process Fast Gearing Up Internet Literacy and Access for Students (GILAS) Department of Education Education on Higher Commission Authority Development Skills and Education Technical You.PH Future Asia Maritime Transparency Initiative (AMTI) Security Social Services: Education Governance Co Registry Business Philippine (BPLS) System Licensing and Permit Business Revenue Memorandum Circular No. 54 BIR BIR BIR Revenue Internal of Bureau Electronic Information Tax (eTIS) System Window Single National Structure Code Accounts Unified Bureau of Treasury on Audit Commission Management and Budget of Department Budget and Management Treasury System on Committee Coordination Budget Development Macroeconomic Policy Authority Zone Economic Philippine Social Weather Stations DTI Rankings Business Doing of Ease Three Compet Municipalities and Cities Local Government Center Philippines the of Senate Center Download Representatives of House Philippines the of Senate Representatives of House Legislation Authority Development Skills and Education Technical Commission Productivity and Wages National Department of Labor and Employment Labor Revenue Internal of Bureau Judicial

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Run After the Smugglers (RATS) Program Run After Tax Evaders (RATE) Program E - Year Rolling Program Infrastructure

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House Bills and Resolutions Resolutions and Bills House of CommitteesList

itiveness Index itiveness

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https://www.sws.org.ph/swsmain/home/ Joint_Circulars http://www.dilg.gov.ph/PDF_File/issuances/join http://www.doingbusiness.org/rankings orandum/BudgetCall2016/ANNEXC.pdf content/uploads/Issuances/2015/Corporate%20Budget%20Mem http://www.dbm.gov.ph/wp http://www.competitive.org.ph/cmcindex/ http://www.senate.gov.ph/lis/leg_sys.aspx http://www.co https://www.senate.gov.ph/committee/list.asp http://www.congress.gov.ph/committees/ http://www.tesda.gov.ph/ http://www.nwpc.dole.gov.ph/ https://www.dole.gov.ph/ https://www.bir.gov.ph/ transfer/ http://www.officialgazette.gov.ph/programs/conditional https://psa.gov.ph/apis http://www.doh.gov.ph/node/6971 http://www.philhealth.gov.ph/ http://www.who.int/en/ http://www.ibpap.org/ https://www.senate.gov.ph/republic_acts/ra%2010612.pdf https://www.facebook.com/GILASconnect http://www.deped.gov.ph/ http://www.ched.gov.ph/ http://www.tesda.gov.ph/ http://www.futureyou.ph/ https://amti.csis.org/ http://gcg.gov.ph/site/ 78c04e76aa6ca52f9 http://www.business.gov.ph/web/guest;jsessionid=7e0b2928bdc h C%20No%2054 https://www.bir.gov.ph/images/bir_files/old_files/pdf/87996RM http://governance.dbm.gov.ph/governance/ http://governance.dbm.gov.ph/governance/ http://www.bir.gov.ph/index.php/eservices.html https:/ ns_1/Programs/eTIS%20Updates_Feb.%202015.pdf https://www.bir.gov.ph/images/bir_files/internal_communicatio https://www.nsw.gov.ph/ accounts http:// http://www.treasury.gov.ph/ http://www.coa.gov.ph/ http://www.dbm.gov.ph/ http://www.dbm.gov.ph/?page_id=8959 http://www.dbm.gov.ph/?page_id=8959 http://www.peza.gov.ph/ ttp://governance.dbm.gov.ph/governance/ www.uacs.gov.ph/resources/issuances/95/unified /www.bir.gov.ph/ -

code

- - ngress.gov.ph/download/?d=billstext - structure 20100813 2014.pdf

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uacs

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JMCNo01_Seriesof2010.pdf

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Page 120 USAID STRIDE 2017.PhilippineIndustry Innovation Project. NeedsAssessment:Electronics, Soukamneuth, B. James,andJohnD. Forbes. 2016.Agribusiness: Policy BriefNo.5.Makati City: The Rodolfo, Maria Cherry Lyn S.2017.Airport:Policy BriefNo.6.Makati City: TheArangkada Philippines Philippine Chamber ofCommerce andIndustry. 2016.G.I.A.N.T. S.T.E.P.S. :TOWARDS ANINVESTMENT Philippine AssociationofMultinationalCompanies. 2016.BusinessProcess andOutsourcing: APolicy National Economic andDevelopment Authority. 2017.PhilippineDevelopment Plan:2017-2022.Pasig Mirandilla-Santos, MaryGrace. 2016.Broadband: Policy Brief No.4.Makati City: TheArangkada Korean Chamber ofCommerce ofthePhilippines.2016.Tourism: APolicy Note. Makati City: The Japanese Chamber ofCommerce andIndustry (PH). 2016.Manufacturing: APolicy Note. Makati City: Gozum, GianMichaelP., JohnD. Forbes, andJohnRidsdel.2014.Mining:Policy BriefNo.3.Makati City: Forbes, JohnD. 2010.ARANGKADA PHILIPPINES 2010:ABusiness Perspective. Makati City: The Evardone, Armie.2013.Legislation:Policy Brief No.1.Makati City: TheArangkada PhilippinesProject. European Chamber ofCommerce ofthePhilippines.2016.Creative Industries:APolicy Note. Makati EU-Philippines BusinessNetwork .2015.EUbusinessinthePhilippines;Supporting sustainableand Canadian Chamber ofCommerce ofthePhilippines.2016.Mining:APolicy Note. Makati City: The Batungbacal, Roberto, andJohnD. Forbes. 2013.Manufacturing: Policy Brief No.2.Makati City: The Australia-New ZealandChamber ofCommerce (PH). 2016.Infrastructure: APolicy Note. Makati City: American Chamber ofCommerce ofthePhilippines.2016.Agribusiness: APolicy Note. Makati City: Bibliography Automotive, Aerospace. RTI International. Arangkada PhilippinesProject. Project. Commerce andIndustry Secretariat Office. LED ANDPOVERTY REDUCING INCLUSIVE GROWTH. Taguig City: PhilippineChamber of Note. Makati City: TheArangkada PhilippinesProject. City: NationalEconomic andDevelopment Authority. Philippines Project. Arangkada PhilippinesProject. The Arangkada PhilippinesProject. The Arangkada PhilippinesProject. American Chamber ofCommerce ofthePhilippines,Inc. City: TheArangkada PhilippinesProject. inclusive economicgrowth. Makati City: European Chamber ofCommerce ofthePhilippines,Inc. Arangkada PhilippinesProject. Arangkada PhilippinesProject. The Arangkada PhilippinesProject. The Arangkada PhilippinesProject. Sponsors Philippine AssociationofMultinationalCompaniesRegional Headquarters, Inc. Australian-New ZealandChamberofCommerce ofthePhilippines,Inc. Japanese ChamberofCommerce andIndustryofthePhilippines,Inc. United States AgencyforInternational Development European ChamberofCommerce ofthePhilippines,Inc. American ChamberofCommerce ofthePhilippines,Inc. Canadian ChamberofCommerce ofthePhilippines,Inc. Capital OnePhilippinesSupportServicesCorporation Korean ChamberofCommerce ofthePhilippines,Inc. Joint Foreign Chambersof the Philippines Auto Philippines) NationGroup, Inc.(Jeep Hamlin-Iturralde Corporation/TeamAsia Toyota Motors PhilippinesCorporation Metro Pacific Investments Corporation DoubleDragon Properties Corporation Pilipinas ShellPetroleum Corporation First PhilippineHoldingsCorporation Leechiu Property Consultants,Inc. Bank ofthePhilippineIslands Unionbank ofthePhilippines Manila Water Company, Inc. Pacific Cross Insurance, Inc. Moog Controls Corporation Emerson ElectricAsiaLtd. Mondelez Philippines,Inc. SyCip Gorres Velayo &Co. Eastern Communications Dole AsiaCompany Ltd. Social SecuritySystem Regus PLT Centre, Inc. Resorts World Manila Platinum Sponsors Santos Knight Frank 3M Philippines,Inc. , Inc. Bronze Sponsors Patron Sponsors Coca-Cola FEMSA Silver Sponsors Royal Cargo, Inc. Gold Sponsors BDO Unibank

Page 121 Page 122 Sponsors Semiconductor andElectronics IndustriesinthePhilippinesFoundation, Inc. Federation ofFilipino-ChineseChamberCommerce andIndustry, Inc. Philippine IndependentPower Producers Association,Inc. Philippine ChamberofCommerce andIndustry, Inc. Nordic ChamberofCommerce ofthePhilippines Chamber ofCommerce ofthePhilippineIslands Financial Executives Institute ofthePhilippines Management AssociationofthePhilippines Sumitomo Corporation ofthePhilippines Hamlin-Iturralde Corporation/TeamAsia Philippine Constructors Association,Inc. Philippine Exporters Confederation, Inc. Sumitomo MitsuiBankingCorporation ABS-CBN News Channel(ANC) Philippine Resources Journal American Technologies Inc. Tourism Promotions Board Bloomberg TVPhilippines Eastern Communications Philippine Daily Inquirer Partner Organizations Oxford BusinessGroup Marriott Hotel Manila Makati BusinessClub Technology Partner Forum KitProvider The PhilippineStar Internet Provider Patron Sponsors Media Partners Venue Partner BusinessWorld Event Partner Philstar.com Inquirer.net Meralco GMA