68 BUSINESS

APEC members adopt initiative on MSMEs

The 21 member countries of the Asia Pacifi c Economic Cooperation (APEC) recently adopted the APEC Iloilo Initiative – a guiding framework in integrating Micro, Small and Medium Enterprises (MSMEs) in international trade and global value chains (GVCs). The initiative is intended to provide “a bigger voice and better opportunities” through the following: increased focus on the potential of the internet, digital economy, and electric commerce (e-commerce).

he “APEC Iloilo Initiative: Growing Global MSMEs for Inclusive Development” is a framework that Tresulted from the series of meetings of APEC SME ministers and offi cials. It was put in place to monitor the development and integration of MSMEs in the regional and global markets. And its goal is to provide MSMES a major boost by laying down strategic actions through dialogues among MSMEs, large businesses and policy makers. MSMEs in the Asia-Pacifi c region account for over 97% of all enterprises, employ more than 70% of the workforce, and contribute at least 20-50% to the total GDP. The sector, however, fails to achieve greater participation in the global trade, making up less than 35% of annual global exports. Among the challenges faced by the MSMEs are the following: underdeveloped facilities; inadequate information regarding market opportunities across boarders; the lack of ability to develop globally competitive, market driven products and solutions; pushing for small entrepreneurs to be at the center of discussions and the inability to fully leverage on the benefi ts provided by during the forums leading up to the APEC leader’s summit. the digital economy. There is, indeed, a need for an ‘ecosystem’ The emergence of the Iloilo Initiative recognizes the that will support enterprise creation as well as increase the importance of e-commerce as a platform in facilitating the entry of innovation capabilities of MSMEs. Over the years, there were MSMEs in the exchange of goods and cross border transactions, numerous initiatives proposed in APEC to promote free and open Trade Undersecretary Zeinada Maglaya noted. “We acknowledged trade and investments, and to further deepen regional economic that MSME’s participation in the international market is enhanced integration. The Philippine government had been actively when they leverage on the benefi ts of e-commerce.” The most

Micro, Small and Medium Enterprises in the Asia-Pacifi c region account for over 97% of all enterprises, employ more than 70% of the workforce, and contribute at least 20-50% to the total GDP.

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 69

THE 3 pillars of the APEC MSME MARKETPLACe

FaFacic liitat te Ennhhancance MSMSMME Impmmpprovve mmechahah nnisismms for bbuusis nenessss awwaarrenenesss annd feedbadbbaack onn trraade knoowleedgedge sshaaring neetwtwororkik ng reguulaatiotions iin order on trradee ffacilii taation, and matchhinng for MMSSMEsM too acccess busineinnenesss supppoport, iinnvolvvining inforrmmatiationo ono new partnenershs ipss, and MMSMMEs nonono -tatarriff capacicity buibu lddding meae sururese actctiviv ttiei s for MMSSMEsMEM

 The 1st pillar allows MSMEs to leverage on the opportunities off ered by international market. This pillar intends to strengthen MSME’s participation, not only in local supply chains, but through GVCs as well. To support this, APEC economies will contribute by providing relevant information on MSMEs and Large enterprises (LEs) which will include listings and/or website to encourage business networking.  The 2nd pillar caters to the need of MSMEs for information on trade-related measures and standards by economy. Among the sources for this are the following: APEC Trade Repository (APECTR), the World Trade Organization International Trade Information Portal (WTO I-TIP), and the International Trade Centre’s Market Access Map (MacMAP).  The 3rd pillar provides a platform for information sharing on key development and experiences of MSMEs in the context of GVCs, production and cross-border supply chains. This portal will serve as an avenue for partnerships, innovation and linkages between MSMEs and LEs, which could increase the potential for MSME internationalization.

Source: Asia-Pacific Economic Cooperation (APEC)

"The APEC Iloilo Initiative: Growing Global MSMEs for Inclusive Development recognizes the importance of e-commerce as a platform in facilitating the entry of MSMEs in the exchange of goods and cross border transactions."

Philippine ANALYST BUSINESS October-November 2015 70 BUSINESS

notable component of the Initiative is the creation of the APEC IFC has provided advisory services to CARD Bank since MSME Marketplace, which is set to be implemented in 2017. 2007, when it helped develop an SME lending platform, The Marketplace will be a one-stop-shop online portal that allows which was later implemented by CARD SME Bank in 2009. MSMEs to participate in international trade and be part of GVCs. It In 2013, IFC also helped CARD SME design an agri-fi nance also enables partnership through information sharing (e.g. market strategy, which was expanded in early 2015 to reach more regulations, proposed initiatives/programs, and trade promotion regions and farmers. The international lender is also currently assistance packages provided by APEC) among member helping in establishing a comprehensive credit information economies since it will serve as an “interactive repository” of system for small borrowers nationwide. The improved credit APEC activities. According to Usec. Maglaya, “(the) Marketplace information would provide suffi cient information and encourage will be a rich source of knowledge and information,” and it banks to lend to small borrowers with good credit histories. will focus on 3 pillars (see graph and table on previous page). According to Jane Xu, the country manager of IFC , Inclusion of MSMEs in the economy remains vital if IFC had so far poured around $140 million worth of investments a country is to achieve inclusive growth. Trade Secretary into the country from August to November 2015. She said the Gregory Domingo said local MSMEs must be competitive amount was used to fi nance various projects in the country. and “to (be able to) succeed internationally, they need Aside from MSMEs, IFC also provides and mobilizes capital access to open, transparent, and efficient markets.” to encourage private investments in other underfi nanced sectors like renewable energy, energy effi ciency, water and agriculture. Ms. Xu said that while IFC has a country exposure limit, IFC invests P700Mn for MSME fi nancing “the Philippines is still far away from that limit.” “We have project exposure limit but it’s more like a percentage Micro, small and medium enterprises (MSMEs), especially of total project fi nancing. We don’t really have an absolute those in rural areas, are set for a big fi nancial boost as the number,” she added. For fi scal year 2015, IFC’s long-term investment arm of the World Bank, International Finance investments in developing countries rose to nearly $18 billion. Corp. (IFC), committed to lending up to P700 million ($15.7 million) to 2 MSME-oriented fi nancial institutions.

Card Bank, the largest microfi nance institution in the Philippines with a customer base of 1.4 million, will receive a loan of up to P540 million ($12.1 million) to grow its microfi nance client base and to establish new branches in provinces. Meanwhile, Card SME Bank, a thrift bank servicing 228,000 clients, will receive up to P160 million ($6.3 million) to further help its customers, who are primarily those who have “graduated” from the microfi nance bank (CARD Bank), in their transition from micro-entrepreneurship to small businesses. The multi-million IFC loan particularly targets to benefi t the MSME sector in rural communities. According to the international lender, “almost three-quarters of the poor in the Philippines live in rural areas. Poverty among farmers is 3 times higher than in other sectors. Without access to formal fi nancial institutions, a majority of the population borrows from informal sources.” IFC Financial Institutions Group Global Director Marcos Brujis said “making loans more aff ordable to people and MSMEs through formal fi nancial institutions quickens the pace at which people are lifted out of poverty.” The MSME sector is the lifeblood of the local economy as it accounts for 99.6% of the registered enterprises in the Philippines and comprises 61.2% of the country’s total employment. However, the “lack of access to fi nancing remains the biggest roadblock for the growth of MSMEs in the country since the existing requirements for credit do not consider the nature of micro and small businesses,” Sen. Paolo Bam Aquino, chairperson of the Committee on Trade Commerce and Entrepreneurship, said. Giving MSMEs the access to aff ordable fi nance will help "Giving MSMEs the access to aff ordable enable the sector to create jobs as well as meet the capital needs fi nance will help enable the sector to of the poor, IFC said. MSMEs also need the fund to invest in create jobs as well as meet the capital innovation, which is crucial for them because they leverage on innovation as a competitive edge against big businesses. needs of the poor, IFC said."

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 71

Iron and steel industry primed for growth says SEAISI chairman Roberto Cola says despite the upward NEDA trend in demand, “The restructuring and consolidation of the domestic steel industry had wiped out the Philippines fl at products The National Economic Development Authority (NEDA) production base of hot rolled coils and plates, cold rolled coils and sheets and tinplates, [and now] in crude steel terms, the has identifi ed the iron and steel industry as a potential Philippines imports around 80% of its steel requirement.” sector for growth that could support the development of the The iron and steel industry has strong forward and backward country’s infrastructure and manufacturing sectors. The linkages that could generate much-needed jobs and revenue industry has yet to recover from the 2008 fi nancial crisis, in the country in addition to bolstering local industries. The but with the current construction boom, the iron and steel local shipbuilding sector, for example, is now 4th largest in industry is in a strategic place to meet rising demand for the world and shipyards in the Philippines are now building locally-produced steel products. more ships of larger tonnage capacities like bulk carriers, container ships and passenger ferries. But while it’s clear that As a major component of infrastructure development, the there is strong domestic demand for steel, what is necessary growth of the local iron and steel industry is a crucial support to the is an integrated steel mill (ISM) that will enable the sector to country’s attainment of its national development goals and initiatives, convert iron ore into semi-fi nished or fi nished steel products. according to NEDA Deputy Director-General Rolando Tungpalan. In a study that compared the 6 countries within the ASEAN, The offi cial said that the Philippines can anticipate a possible the OECD noted that, like the Philippines, most countries in rise in demand for locally-produced steel products as the the region are net importers of their steel requirements, but government ramps up spending on big-ticket infrastructure projects, unlike its neighbors, what the country lacks are integrated steel and as the real estate and shipbuilding sectors continue to grow. plants that could increase its over-all steelmaking capacities In the 1st half of 2015, the Philippines’ steel demand (see ASEAN-6 steelmaking capacity chart for comparison). picked up by 9% year-on-year to 3.8 million tonnes, while Moving forward, the country, as is the ASEAN region, is imports surged by 36% in the same period. According to primed to continue its strong demand for steel. The domestic steel the Southeast Asia Institute of Iron and Steel (SEAISI), the industry though should be wary of oversupplying that demand Philippines’ apparent steel consumption (ASC) has been as it pushes for some measure of steelmaking self-suffi ciency. registering robust growth since 2010 (see Philippines’ ASC between 2007-2013 chart), but the local iron and steel industry, for the most part, has yet to recover from the 2008 fi nancial crisis that wiped out the country’s fl at products production base and halved the number of long products steel manufacturers.

Long and Flats Total

Philippine ANALYST BUSINESS October-November 2015 72 BUSINESS

ASEAN-6: Change in steelmaking capacity (in million tonnes)

2015 CHANGES 2007 2009 2011 (A) 2012 2013 2014 (B) (B-A) (B/A %) Indonesia 5.8 5.8 5.8 5.8 10.0 10.0 10.0 4.2 72.7

Malaysia 9.0 9.2 9.2 9.2 9.9 10.0 10.0 0.8 8.7

Philippines 1.8 1.8 1.9 1.9 1.9 2.4 2.4 0.5 25.9

Singapore 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.0 0.0

Thailand 8.6 8.6 9.0 9.0 9.2 9.2 9.2 0.3 2.8

Vietnam 3.4 4.4 6.9 8.2 9.7 11.7 18.7 11.8 170.3

ASEAN-6 29.4 30.6 33.6 34.8 41.5 44.1 51.1 17.5 52.1

Source: Organization for Economic Co-operation and Development (OECD)

Insurance Commission made in charge of  Approve, amend, renew, decline, suspend or revoke any HMO regulation license, registration or certifi cate of authority issued in favor of HMOs; The Insurance Commission (IC) is set to take over the  Fix, assess, collect, and utilize feed and/or charges as it may regulation of health maintenance organizations (HMOs) fi nd reasonable in the exercise of regulatory powers; and from the Department of Health (DOH), in accordance with  Issue orders to prevent fraud and injury to the HMBO plan Executive Order (EO) No. 192. holders and industry stakeholders. The move is generally considered to be a welcome one as The presidential order, signed by President Aquino on the transfer of responsibility is in line with the IC's specialized November 12, 2015, transfers the regulation and supervision of expertise. The Commission will take charge of issuing licenses HMOs to the IC from the Health department. According to the to operate but will also honor clearances to operate issued by decree, “There is a need to streamline and consolidate functions the Health department prior to the implementation of EO 192. related to the regulation of HMOs to eliminate redundancy, Meanwhile, issues related to medical matters, such as the practice simplify the organizational structure of the executive departments, of the medical profession, medical procedures and standards, health improve accessibility and accountability, provide effi cient procedures, policies, and services, will still be referred to the DOH. use of specialized expertise, realize savings in administrative “The Insurance Commission is ready to take on this transfer costs, and promote effective sharing of best practices.” of responsibility,” said Insurance Commissioner Emmanuel Dooc. Under the new ruling, the IC will be tasked to: “We have championed good corporate governance among  Issue rules and guidelines with respect to the establishment insurance companies for the benefi t of everyday Filipinos availing of HMO minimum capitalization, net worth, reserve funds of insurance products...We have promoted the solvency and and security deposit requirements, as well as the criteria for stability of the insurance and pre-need industries to protect the qualifi cation and disqualifi cation of directors, offi cers, and interests of the consumers [and] we intend to apply the same personnel; principles in regulating HMOs,” said the IC Commissioner.

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 73

An oversight committee will be created in order to ensure the Filipinos score low on fi nancial literacy eff ective transfer of the jurisdiction over HMOs. The Committee will be composed of the Secretary of Finance as chairman, the Secretary Results from Standard and Poor’s Global Financial Literacy of Health and the Insurance Commissioner as members. According Survey show that Filipino adults, on average, are among to EO 192, the oversight committee will exist until June 2016. the least fi nancially literate in the world. At present, there are at least 23 duly licensed HMOs operating in the country, with the HMOs classifi ed as either investor-based, According to the results of Standard and Poor’s fi nancial community-based or cooperative. The following companies are literacy survey, only 25% of Filipino adults can be the registered members of the Association of Health Maintenance considered fi nancially literate. This puts the country near Organizations of the Philippines (AHMOPI), Inc.: the bottom of global results, which ranged from as high  Blue Cross Health Care, Inc.; as 71% (Denmark, Norway, and Sweden) to as low as  Caritas Health Shield, Inc.; 13% (Yemen), and well below the 36% global average. Standard & Poor’s survey consisted of 5 basic questions which  Cocolife Health Care; measure 4 fundamental concepts for fi nancial decision-making,  Fortume Medicare, Inc.; namely, risk diversifi cation, infl ation, basic numeracy (interest),  Health Maintenance, Inc.; and compound interest. To be considered fi nancially literate, a  Health Plan Philippines, Inc.; respondent must answer questions in 3 out of the 4 concepts correctly. The survey found a wide variation in fi nancial literacy  Insular Health Care, Inc.; rates around the world, with Scandinavian countries at  Intellicare; the top of the list and mostly South Asian countries at the  Maxicare Healthcare Corp.; bottom. Not surprisingly, results show that fi nancial literacy  Medicard Philippines, Inc.; is highest in advanced economies, with an average of 55% fi nancial literacy rate in major advanced economies (Canada,  Medocare Health Systems, Inc; France, Germany, Italy, Japan, UK, and US). But even among  Philhealth Care, Inc.; these advanced economies, a wide variation was observed,  Star Healthcare System, Inc.; and with Italy (37%) and Japan (43%) hovering near the global  Value Care Health Systems, Inc. average, and Canada (68%) and the UK (67%) close to the top. Of the ASEAN countries surveyed, the Philippines bested only Vietnam (24%) and Cambodia (18%), falling well behind

"According to the results of Standard and Poor’s fi nancial literacy survey, only 25% of Filipino adults can be considered fi nancially literate."

Philippine ANALYST BUSINESS October-November 2015 74 BUSINESS

QUESTIONS ASKED IN STANDARD AND POOR'S FINANCIAL LITERACY SURVEY RISK DIVERSIFICATION Suppose you have some money. Is it safer to put your money into one business or investment, or to put your money into multiple businesses or investments? INFLATION Suppose over the next 10 years the prices of the things you buy double. If your income also doubles, will you be able to buy less than you can buy today, the same as you can buy today, or more you can buy today? NUMERACY INTEREST Suppose you need to borrow 100 US dollars, Which is the lower amount to pay back: 105 US dollars or 100 US dollars plus three percent? COMPOUND INTEREST Suppose you put money in the bank for two years and the bank agrees to add 15 percent per year to your account. Will the bank add more money to your account the second year than it did the first year, or will it add the same amount of money both years? Suppose you had 100 US dollars in a savings account and the bank adds 10 percent per year to the account. How much money would you have the account after five years if you did not remove any money from the account?

Source: Standard and Poor's Global Financial Literacy Survey

of Singapore (59%), Malaysia (36%), Indonesia (32%), An interesting fi nding noted in the report on the survey’s Thailand (27%), and Myanmar (52%), which surprisingly results is that while rates of fi nancial literacy are higher in had the second-highest fi nancial literacy rate in the region. high GDP per capita countries, for poorer economies (GDP per The survey, also not surprisingly, found that fi nancial capita of $12,000 or less) such as the Philippines, variations literacy is low among the poor, and that a gender- in fi nancial literacy rates among countries are associated gap exists, even within advanced economies. less with higher income than they are with other, national- The report on the results of the survey notes that “without an level policies, such as education and consumer protection. understanding of basic fi nancial concepts, people are not well What this means is that the country shouldn’t just stand pat. equipped to make decisions related to fi nancial management.” Proper education, rational and eff ective regulation, and responsible Adding that “people who are fi nancially literate have the corporate practices by fi nancial institutions can help improve ability to make informed fi nancial choices regarding saving, fi nancial literacy in the country and enable Filipinos to make full investing, borrowing, and more.” Going by those statements, use of fi nancial instruments available to them while simultaneously majority of Filipino adults are ill-equipped to make wise and guarding them from scams and bad financial decisions. informed fi nancial decisions – a troubling thought not just for individuals and families, but for the economy in general as well. The importance of fi nancial literacy cannot be stressed enough. "The report on the results of the survey Apart from enabling the use of numerous fi nancial instruments, it also helps prevent individuals from making unwise, potentially notes that “without an understanding disastrous, fi nancial decisions. In recent years, there have been of basic fi nancial concepts, people are many reports of investment scams which have duped hard- not well equipped to make decisions working Filipinos into “investing” their life-savings through the promise of returns that were just too good to be true – a situation related to fi nancial management.” that would be far less common with proper fi nancial knowledge. Philippine ANALYST BUSINESS October-November 2015 BUSINESS 75

I.T. UPDATE IP peering is a process wherein the networks of internet service providers (ISPs) such as Globe and PLDT are directly connected to each other, allowing local traffi c, meaning internet Major telcos begin discussions on IP Peering traffi c which begins and ends in the Philippines, to remain within local networks and infrastructure. The absence of an IP peering Despite apparently hitting an early snag, reports indicate that arrangement between 2 of the country’s major telcos means talks are ongoing between the country’s two major telcos for that at least 70% of local traffi c has to pass through undersea an agreement on IP peering, a measure which proponents cables and transit through Hong Kong, Singapore or some have long claimed would help improve the notoriously poor other country before fi nding its way back to the Philippines internet service in the Philippines. resulting in additional costs, delays, not to mention security risks. To illustrate, imagine fl ying from Metro Manila to Davao but Internet in the Philippines is notoriously slow, unreliable, having to take a connecting fl ight in Hong Kong to do so. The and expensive. A study early this year by Ookla, an internet present setup can lead to a head-scratching situation, which has metrics company, found that, on average, broadband internet in fact happened in the past, where damage to cables connecting speed in the Philippines ranked 21st out of 22 countries studied outside the country cuts access not just to sites hosted abroad, but to in Asia, besting only Afghanistan and making it the slowest in sites hosted locally as well, critical government sites among them. ASEAN, behind even less developed neighbors like Cambodia IP peering, by allowing local traffi c to travel through the and Laos. While there are a multitude of issues that have caused most direct route possible, reduces reliance on international the poor internet service in the Philippines (i.e. insuffi cient cables and, theoretically, cuts down on unnecessary delays infrastructure, powerlessness of the regulatory agency, large and costs. Proponents likewise argue that IP peering would consumption of foreign-hosted content, the country’s archipelagic encourage more foreign websites to host copies of their content geography etc.), a measure which proponents have claimed in local servers as doing so would make more sense and be would help improve the situation is once again gaining traction. less costly if all local networks were interconnected locally. In a report released through its website early in October, To achieve IP peering, the common practice is to connect the Philippine Long Distance Telephone Company (PLDT), to an internet exchange, a facility where the networks of the country’s largest provider of broadband internet, ISPs are physically connected to one another. Ideally, these revealed that it has initiated talks for an internet protocol (IP) internet exchanges are managed by a neutral third-party so as peering agreement with its main rival, Globe Telecom Inc. to prevent confl icts of interest, which may arise if the facility were handled by one of the ISPs or entities connected to them.

"…on average, broadband internet speed in the Philippines ranked 21st out of 22 countries studied in Asia, besting only Afghanistan and making it the slowest in ASEAN."

Philippine ANALYST BUSINESS October-November 2015 76 BUSINESS

AVERAGE BROADBAND DOWNLOAD SPEED OF SELECT ASIAN COUNTRIES

RANK COUNTRY DOWNLOAD SPEED

1 Singapore 122.43 Mbps 2 Hong Kong 102.96 Mbps 3 Japan 82.12 Mbps 4 South Korea 59.77 Mbps 5 Macau 50.66 Mbps 6 Taiwan 50.59 Mbps 7 Thailand 19.82 Mbp 8 Mongolia 17.92 Mbps 9 Vietnam 17.70 Mbps 10 Bangladesh 9.86 Mbps 11 Cambodia 9.04 Mbps 12 Nepal 8.63 Mbps 13 Brunei 7.99 Mbps 14 Bhutan 7.82 Mbps 15 India 7.04 Mbps 16 Malaysia 7.03 Mbps 17 Laos 6.92 Mbps 18 Indonesia 6.68 Mbps 19 Myanmar 6.54 Mbps 20 Pakistan 4.00 Mbps 21 Philippines 3.64 Mbps 22 Afghanistan 2.52 Mbps

"IP peering, by allowing local traffi c to travel through the most direct route possible, reduces reliance on international cables and, theoretically, cuts down on unnecessary delays and costs."

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 77

In the Philippines, the only operating neutral internet local internet speeds due to concerns about the reliability and exchange is the Philippine Open Internet Exchange (PHOpenIX), security of the government-operated internet exchange while also managed and operated by the Department of Science and protesting the lack of compensation provisions which, according Technology’s Advanced Science and Technology Institute to PLDT, would create disincentives for private investment in (DOST-ASTI). Globe and a number of smaller ISPs have internet infrastructure and allow smaller ISPs to “free-ride” on already connected to the PHOpenIX, while PLDT, which the infrastructure which larger ISPs have heavily invested in. just recently connected to the exchange, currently limits PLDT has since softened its position. “Local peering will help the extent of its participation to direct access by PLDT improve the web experience of Internet users in the country by subscribers to government websites hosted in PHOpenIX. keeping local traffi c local. That is why we struck an agreement Days after PLDT revealed the initiation of talks, Globe, also with DOST and why we are pursuing another one with Globe,” through a report released on its own website, confi rmed that Ernesto Alberto, PLDT executive vice president for Enterprise and discussions on an IP peering agreement were ongoing while also International Business, was quoted in PLDT’s report as saying. revealing a main point of contention between the parties. Globe’s While details released so far indicate that there is still a long Chief Operating Offi cer Gil Genio was quoted saying that “the way to go before an agreement can be reached, the fact that the proposal does not go far enough even to meet the defi nition of country’s two major telcos are engaged in discussions on IP peering.” Mr. Genio added that the proposal, as is, would be peering, and that the initiative is coming from the telcos themselves, ineff ective because it does not provide for direct access to content is a positive development. Additional measures beyond IP peering and applications hosted by PLDT without exceptions. The report should, however, be implemented in order to suffi ciently upgrade also stated, however, that Globe welcomed the initiation of talks internet services in the Philippines to global standards. In and was optimistic given that PLDT, which just years earlier was addition to IP peering, the next government will be tasked with opposed to the measure, is the party which initiated negotiations. creating the just agreed upon Department of Information and Back in 2011, Globe supported the idea of IP peering through Communications Technology (it’s too late for this government mandate by the National Telecommunications Commission (NTC). to do it), an agency that would have more power to regulate PLDT at the time opposed the proposal, questioning whether the and develop the IT sector, while also increasing investment and then proposed IP peering measure, which would have mandated ensuring a conducive environment for the sector’s development. all ISPs to connect to the PHOpenIX, would truly improve

"Additional measures beyond IP peering should, however, be implemented in order to suffi ciently upgrade internet services in the Philippines to global standards."

Philippine ANALYST BUSINESS October-November 2015 78 BUSINESS

PEZA APPROVED PROJECTS -Third Quarter 2015

EQUITY INDUSTRY ACTIVITY LOCAL/ ZONE FOREIGN APPAREL AND TEXTILE MANUFACTURES Calamba Premiere AMPLUS TECHNOLOGIES, INC. Manufacture of Baby Diapers International Park - SEZ AUTOMOTIVE TRADE CONTINENTAL TEMIC ELECTRONICS Light Industry & Product validation and material failure analysis testing services (PHILIPPINES), INC. Science Park II - SEZ FURUKAWA ELECTRIC AUTOPARTS Laguna Technopark Manufacture of Battery Statement Sensor (BSS) PHILIPPINES, INC. - SEZ ISUZU AUTOPARTS MANUFACTURING Laguna Technopark Manufacture/assembly of MVL Transmission CORPORATION - SEZ

LAGUNA AUTO-PARTS MANUFACTURING Laguna Technopark Manufacture of Xe Stator CORPORATION - SEZ

CHEMICAL AND CHEMICAL PRODUCTS 50% - British Virgin Islander 19% - Swiss 18% - PAN CENTURY SURFACTANTS, INC. Manufacture of glycerin Panamanian Jose Panganiban - SEZ 13% - Hong Kong, Malaysian, Indian PAN CENTURY SURFACTANTS, INC. Manufacture of Crude Glycerin Jose Panganiban - SEZ Cocochem Agro- STEPAN PHILIPPINES, INC. Engage in Amine Oxide (Peroxidation) Process Industrial Park - SEZ ELECTRICITY, WATER, AND GAS

PETROSOLAR CORPORATION 50 MW Solar Facility project 100% - Filipino Central Technopark

Construction and operation of a Bulk Gas Supply Facility (MG6600 Nitrogen Generator Laguna Technopark TAIYO NIPPON SANSO PHILIPPINES, INC. Plant, Oxygen Tank and Argon Tank) - SEZ

ELECTRONICS

Manufacture of semiconductor equipment (Software and Hardware), assembly of ASIAN SEMICONDUCTOR ELECTRONICS Calamba Premiere materials and semiconductor components, inspection services for semiconductor and 100% - Filipino TECHNOLOGIES CORPORATION International Park - SEZ electronics components, PWB design, diagnostics and repair CHUANSHUN ELECTRIC (PHILIPPINES) First Cavite Industrial Molding and Wire Extrusion INCORPORATED Estate - SEZ Manufacture and production of electronic parts, components and audio amplifiers 50% - Chinese GOLDEN EAGLE COIL AND PLASTC such as, micro or miniature voice coil, bobbin/ferrite coil, plastic injection parts and 49.99% - Mactan Economic Zone () INC. electronic metal parts for electronic products Singaporean Laguna Technopark GF MICRO OPTICS PHILIPPINES, INC. Design and Manufacture of High Density Fiber Patch Panels - SEZ Assembly of innovative multi-pet care system including pet care room, multi-care unit, IZU NOBLELINK INC. Cavite Economic Zone air cleaner, grooming kit, pet kennel (bag) parts and accessories Lima Technology Center KINPO ELECTRONICS (PHILIPPINES), INC. Manufacturer of calculators and other electronic products - SEZ

Manufacture and assemble power brushless DC motor, press parts and magnets, chip 99.99% - First Philippine MINEBEA PHILIPPINES, INC. mounting for PC board and die-casting Japanese Industrial Park - SEZ

Manufacture of any and all kinds of electrical switches for machineries, equipment, 99.99% - Mactan Economic Zone NKK SWITCHES MACTAN, INC. tools and other industrial and other uses Japanese II - SEZ

Manufacture of WiBUtler using its full design process with local Research and Light Industry & IONICS EMS, INC. Development inputs Science Park I - SEZ

Manufacture of Electronic Door Lock System using its full design process with local Light Industry & IONICS EMS, INC. Research and Development inputs Science Park I - SEZ

Light Industry & IONICS EMS, INC. Production of LCD Projector with Power Supply Science Park I - SEZ PENTAX CEBU PHILIPPINES Manufacture and assembly of Cube assemblies and components Mactan Economic Zone CORPORATION Production of Electro-Mechanical Products, such as Election Machines, Medical Devices, Greenfield Automotive PIVOT-HAWKS MANILA INC. Printed Circuit Assemblies Park - SEZ

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 79

SUMI PHILIPPINES WIRING SYSTEMS Hermosa Ecozone Manufacture of wiring harness CORPORATION Industrial Park Laguna Technopark TDK PHILIPPINES CORPORATION Manufacture of Inductor - SEZ TEMCOLINE PHILIPPINES INC. Manufacture of micro-speaker Cavite Economic Zone

SAMSUNG ELECTRO-MECHANICS Calamba Premiere Manufacture of Chip Resistor PHILIPPINES CORPORATION International Park - SEZ

SHIMEI OPTOELECTRONICS Manufacture/assembly of video camera module parts 99.9% - Korean Cavite Economic Zone TECHNOLOGY INC. RF POWER COMPONENTS PHILIPPINES Light Industry & Development, manufacture, assembly and testing development of RF Power devices 99.99% - Dutch INC. Science Park I - SEZ

WELGAO ELECTRONIC TECHNOLOGY First Cavite Industrial Manufacture of Heatsinks (PHILIPPINES) INCORPORATED Estate - SEZ

FOOD AND BEVERAGE MANUFACTURES CARMEN'S BEST INTERNATIONAL DAIRY Laguna Technopark Manufacture of super premium ice cream 100% - Filipino COMPANY, INC. - SEZ Bukidnon Agro- NICE FRUIT S&W PHILIPPINES INC. Engage in Fruit De-Hydro Freezing Operations 100% - Filipino Resources Export Zone VUQO, INC. Manufacture of Vodka (from coconut nectar) or Green Palm Vodka Victoria Wave - SEZ

HOTEL, RESTAURANT, AND LEISURE SERVICES

Establishment of an Amanpulo Villa consisting of four (4) hotel rooms - villas or casitas, 60% - Filipino Pamalican Island KAMANSI HOLDINGS, INC. living room pavilion, service building, and swimming pool 40% - British Tourism Ecozone

IT AND IT-ENABLED SERVICES Laguna Technopark AUDIOWAV MEDIA INC. Audio Content Service (CAPS) and Video Content Service (DMC) 100% - Filipino - SEZ LATTICE SEMICONDUCTOR (PH) Knowledge-based and computer enabled support services Northgate Cyberzone CORPORATION LOGOS CREATIVE OFFICE PHILIPPINES 99.99% - Provide Computer Aided Design (CAD) Planning Services for Buildings PBCom Tower INC. Japanese MOL INFORMATION PROCESSING Engage in data processing, preparation, analysis and reporting of worldwide company 99% - Hong Aeon Centre SERVICES PHILIPPINES INC. records, documents, statistics, reports, etc. Kong MACHINERY AND EQUIPMENT Manufacture and after-sales service of Underwriter Laboratories (UL) safe products MATRIX MECHATRONIX TECHNOLOGY 99.99% - specifically automated teller machines (ATM) safe and teller cash recycle (TCR) Cavite Economic Zone (PHILIPPINES) CORP. Singaporean machines METAL INDUSTRIES

ATLANTIC GULF AND PACIFIC COMPANY Design, detailing, fabrication, and assembly of one (1) set Gas Turbine Control Room AG&P Special Economic OF MANILA, INCORPORATED "Bangladesh NWPGCL-L&T Bheramara GT Control Project" Zone First Philippine B/E AEROSPACE B.V. - PHIL. BRANCH Manufacture of Refrigeration and Chiller Equipment for Aircrafts Industrial Park - SEZ GOJI INDUSTRY PHILIPPINES Shim and Bit-Press Assembly Mactan Economic Zone CORPORATION Laguna Technopark ISHIDA SEISAKUSHO PHILS. CO. INC. Maintenance and repair of tool and die services - SEZ

65% - Filipino Light Industry & METALS ENGINEERING RESOURCES CORP. Engage in Automotive Parts/Conventional and Investment casting and Machining 35% - Chinese Science Park III - SEZ

NIDEC PRECISION PHILIPPINES Laguna Technopark Physical Vapor Deposition (PVD) Project CORPORATION - SEZ Leyte Industrial PHILIPPINE ASSOCIATED SMELTING & Lnclude "Copper Reverts" Development Estate REFINING CORPORATION (PASAR) - SEZ READORE TECHNOLOGY PHILS. Metal stamping and manufacture of transformer, screw and wire harness Cavite Economic Zone CORPORATION

RFC CEBU INC. Cebu Light Industrial Manufacture of building components made of light steel products 100% - Filipino (Formerly: RFC Steel Cebu, Inc.) Park - SEZ

MISCELLANEOUS MANUFACTURES 99.93% - Hong First Cavite Industrial 3D FAB LAB PHILS., INC. Manufacture and assembly of 3D printers Kong Estate - SEZ 99.99% - First Cavite Industrial ACCUTHERMTECH PHILIPPINES INC. Manufacture of Thermistor Temperature Sensor Taiwanese Estate - SEZ 99.99% - Light Industry & CAC PHILIPPINES, INC. Manufacture of wheel speed sensors Japanese Science Park II - SEZ BROTHER INDUSTRIES (PHILIPPINES), First Philippine Manufacture/assembly of P-touch Tape M INC. Industrial Park - SEZ

Philippine ANALYST BUSINESS October-November 2015 80 BUSINESS

FITC LED LIGHT MANUFACTURING CO. Manufacture of lighting fixtures and metal fabrication Cavite Economic Zone AND GENERAL SERVICES CORP. Carmelray Industrial MAY & CHRISTE PHILIPPINES INC. Manufacture of Lighting Fixtures Park II - SEZ First Philippine NIKKOSHI PHILIPPINES CORPORATION Currency Discrimation Counter Industrial Park - SEZ

OFFSHORING AND OUTSOURCING

ACCENTURE, INC. Business process outsourcing (BPO) and software development services Cebu I.T. Park

ACCENTURE, INC. Business process outsourcing (BPO) and software development services Gateway Tower

ACCENTURE, INC. Business process outsourcing (BPO) and software development services Uptown Bonifacio

ADVANTAGE BUSINESS COMPUTER Provides inventory control and monitoring, creating online multi-media, data entry, and 99.99% - Robinsons CyberPark SOLUTIONS, INC. online training services American

AGR OPERATIONS MANILA, INC. Business process outsourcing and information technology services Aeon Centre 99.99% - Hong APEX BGC UPTOWN, INC. Business process outsourcing (BPO) services Uptown Bonifacio Kong Robinsons Summit CHAMP Cargosystems Philippines, Inc. Software development, marketing, customer services functions Center 100% - CHOCOLATEBOX INC. Development of cellphone application software BPI Buendia Center Japanese COMPASS OFFICES SERVICES PHILIPPINES 99.83% - Hong Business process outsourcing and call center operations V-Corporate Centre LIMITED INC. Kong CONCENTRIX DAKSH SERVICES Business process outsourcing and call center operations PHILIPPINES CORPORATION CONCENTRIX DAKSH SERVICES Business process outsourcing and call center operations Spark Place PHILIPPINES CORPORATION

CONVERGYS SERVICES PHILIPPINES, INC. Call center operations SM City Clark IT Park 60% - Filipino 6750 Ayala Avenue CORTEXPH INC. Software development, BPO, KPO, Call Center management and managed services 40% - Indian Bldg. DREAMSCAPE NETWORKS INC. Provides technical support for web hosting and domain registration CBP-IT Park 99.99% - ELEVATE PHILIPPINES INC. Legal process outsourcing (knowledge process outsourcing), legal transcriptions services E-Square I.T. Park Belgian F21 CALL CENTER SERVICES 99.99% - Call center services and shared services SM iCITY 2 CORPORATION American FAIRCHILD SEMICONDUCTOR Business process outsourcing (BPO) shared services Mactan Economic Zone (PHILIPPINES), INC.. 100% - GO GAME PTE. LTD. Helpdesk business process outsourcing and customer support management and operation E-Square I.T. Park Singaporean 99.97% - GROWTHTECH INC. Business process outsourcing (BPO) services Crown 7 I.T. Center American HINDUJA GLOBAL SOLUTIONS LIMITED Call center operations and business process outsourcing (BPO) services Iloilo Technohub

IBM BUSINESS SERVICES, INC. Business transformation outsourcing services Lakeside Evozone Naga City Technology IBM BUSINESS SERVICES, INC. Business transformation outsourcing services Park IBM SOLUTIONS DELIVERY, INC. IT Application Management CBP-IT Park Light Industry & IVOCLAR VIVADENT, INC. After Sales - Service - CADCAM Science Park I - SEZ KLAVENESS SHORE SERVICES, INC. Business process outsourcing (BPO) services SM iCITY 2

KMC MAG SOLUTIONS, INC. Offer the lease of its facility to Compass Offices Services Philippines Limited Inc. V-Corporate Centre

KYOCERA DOCUMENT SOLUTIONS Provides software development and application, including programming and adaptation Cebu I.T. Park DEVELOPMENT PHILIPPINES, INC. of system softwares and middlewares 99.99% - LIBERTY MEDICAL PHILIPPINES, INC. Engage in IT-enabled contact center solutions and services Estancia Mall American 99.99% - LOTUSLABS, INC. Technology and software consultancy services E-Square I.T. Park Malaysian 60% - Filipino Business process outsourcing (BPO) services such as, the preparation of detailed MEP SOLUTIONS CORPORATION 40% - E-Square I.T. Park drawings using computer-aided design (CAD) and new technologies Australian

MSG GLOBAL SOLUTIONS PHILIPPINES, 60% - Filipino Pacific Star Building Provide onsite and offshore SAP development services INC. 40% - Swiss Condominium

Engage in Business Process Outsourcing and exporting knowledge-based and computer- 99.99% - One San Miguel Avenue MSP INTERNATIONAL SERVICES, INC. enabled services such as draughting and materials estimating services using various Australian Condominium technologies including CAD and Pryda 56% - NOODLE SOUP HEALTH Provide marketing intelligence, strategic services, and commercial assets to American Keppel Center COMMUNICATIONS INC. pharmaceutical industry and healthcare-related sectors 44% - Filipino

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 81

OAMPI INC. IT Enabled Services Filandia IT Center 6780 Ayala Avenue OAMPI INC. IT-enabled services/activities such as call center Bldg. 99.92% - ONEASTON INC. General Business Process Outsourcing (BPO) services SM iCITY 2 Australian ORICA SINGAPORE PTE. LTD. – 100% - The Rockwell Business Provides shared services, support solutions and business process outsourcing services PHILIPPINES BRANCH Singaporean Center Engage in development of Java software, highly complicated software for SW-Tools as 80% - Filipino PARANOR CEBU, INC. CBP-IT Park well as design, development and application software 20% - Swiss 99.99% - Philplans Corporate PROBEGROUP PHILIPPINES, INC. Business process outsourcing and call center operations Australian Center PSG GLOBAL SOLUTIONS, INC. Business process outsourcing (BPO) services BTTC Center REED ELSEVIER SHARED SERVICES Business process outsourcing and call center operations (PHILIPPINES) INC. RESULTS MANILA, INC. IT call center services The Mactan Newtown

RMH TELESERVICES ASIA PACIFIC, INC. Inbound and outbound call center and back office services Matina IT Park ROCOCO GLOBAL TECHNOLOGIES Provide system development Cebu I.T. Tower CORPORATION

SAILING PARTNER CONSULTING 60% - Filipino Mactan Economic Zone Knowledge process outsourcing business PHILIPPINES CORPORATION 40% - Italian II - SEZ

SCHENKER MANILA ADMINISTRATIVE 99.99% - Back office support services Ecotower COMPETENCE CENTER INC. Singaporean

SITEL PHILIPPINES CORPORATION Call center operations Robinsons Luisita

99.92% - One San Miguel Avenue SYNIC RESEARCH CORP. Software development and consulting, research, and licensing American Condominium TATA CONSULTANCY SERVICES Eastwood City Information technology (IT) and business process outsourcing (BPO) services (PHILIPPINES) INC. Cyberpark TATA CONSULTANCY SERVICES Information technology (IT) and business process outsourcing (BPO) services Ecotower (PHILIPPINES) INC. Carmelray Industrial TECHLOG CENTER PHILIPPINES Business process outsourcing (BPO) services Park II - SEZ Alphaland Southgate TELEPHILIPPINES INCORPORATED Call center operations Towers TELETECH CUSTOMER CARE Business process outsourcing / call center operations Gateway Tower MANAGEMENT - PHILIPPINE BRANCH 99.25% - TF TECHNOLOGY SERVICES INC. Software development, software testing and support services CBP-IT Park Australian 99.99% - RCBC Savings Bank TMJP BPO SERVICES, INC. Business process outsourcing (BPO), Online English lesson service and consulting services Japanese Corporate Center THREATTRACK SECURITY PHILIPPINES, Customer Technical Support McKinley Hill Cyberpark INC. 99.99% - TOSE PHILIPPINES, INC. Game developer Ecotower Japanese UBIQUITY GLOBAL SERVICES PHILIPPINES Negros First Customer support, back-office work, and general business process fulfillment operations INC. Cybercentre UBIQUITY GLOBAL SERVICES PHILIPPINES Provisioning of customer support, back-office work, and general business process E-Square I.T. Park INC. fulfillment operations 99.99% - UP Science and UMS GROUP PHILIPPINES INC. Onsite and offshore SAP development services American Technology Park (North) UNITEDHEALTH GROUP GLOBAL Information Technology Services, Call Centre Services and Back Office Operations Cebu I.T. Park SERVICES, INC. 99.7% - UTILIBILL PHILIPPINES INC. Business process outsourcing (BPO) services HDMF-WTCI IT Tower Australian 99.99% - VALUELABS (PHILIPPINES), INC. IT Services, Call Centre, and BPO Cebu I.T. Tower Singaporean vCustomer Philippines (Cebu), Inc. Additional sales support, customer support, technical support, shared services Cebu I.T. Park Knowledge-based and computer-enabled support services and business process 99.9% - VELOSI PHILIPPINES, INC. Cebu I.T. Tower outsourcing Luxembourger Enterprise Software and Application Development; and Techops and Digital Process WORKFORCESYSTEMS INC. Zuellig Building Outsourcing WORKFORCESYSTEMS INC. Engage in Innovation Platform Development Orient Square I.T. Bldg.

WSP ASIA PHILIPPINES, INC. Business outsourcing that will provide software and database Hanston Square IMS HEALTH OPERATIONS CENTER 99.99% - Engage in production and other data processing services BPI Buendia Center PHILIPPINES, INC. American Establishment of a test facility in the Philippines to augment the capacity of the testing Laguna Technopark TAKATA (PHILIPPINES) CORPORATION facility in Japan for sled testing of seatbelts and airbags to measure the crashworthiness - SEZ of the product and ensure the dynamic performance of the seatbelt and airbag tested

Philippine ANALYST BUSINESS October-November 2015 82 BUSINESS

PAPER AND PAPER PRODUCTS

Manufacture and supply of self-adhesive labels, insulators, in mold decorations and 99.99% - IMAGE LABELS PHL. INCORPORATED Cavite Economic Zone plastic components Indian

99.97% - First Cavite Industrial KOU FU PACKAGING CORPORATION Manufacture of printed packaging materials Taiwanese Estate - SEZ Laguna Technopark MAJESTIC PACKAGING PRODUCTS CORP. Manufacture of paper and paperboard-based packaging products 100% - Filipino - SEZ 99.98% - First Philippine OKUDAPHILS CORPORATION Manufacture of paper products Japanese Industrial Park - SEZ

REAL ESTATE AND PROPERTY DEVELOPMENT

BIGLIFT PROPERTIES AND DEVELOPMENT Hermosa Ecozone Registration of its additional warehouse building CORPORATION Industrial Park

CHIAO LIN ELECTRONICS PHILS. CORP. Maintain and operate its existing warehouse/factory building 100% - Filipino Cavite Economic Zone

DUPONT CIRCLE DEVELOPMENT CORP. Construction of two (2)-bay factory/warehouse building 100% - Filipino Suntrust Ecotown Tanza Carmelray Industrial ECOZONE PROPERTIES, INC. Registration of its additional warehouse building Park I - SEZ GREATWALL REALTY DEVELOPMENT Maintain and manage its existing warehouse facilities (Buildings 1, 2 & 3) 100% - Filipino Cavite Economic Zone CORPORATION HI-SPEED PROPERTIES & DEVELOPMENT, Registration of its additional project, particularly to construct a factory/warehouse Cebu Light Industrial INC. building Park - SEZ JOMEE REAL ESTATE COMPANY Light Industry & Construction of and management of a 6-unit factory/warehouse building INCORPORATED Science Park III - SEZ People's Technology MESCOTECH PHILIPPINES, INC. Construction of five (5) warehouse buildings 100% - Filipino Complex - SEZ First Cavite Industrial MITSUBA PHILIPPINES REALTY CORP. Registration of its additional warehouse building Estate - SEZ 60% - Filipino First Philippine POFUCON REALTY CORPORATION Construction of a warehouse facility 40% - Industrial Park II - SEZ Taiwanese

60% - Filipino Calamba Premiere SANS FIN HOLDINGS CORP. Construction of two (2) units factory buildings 40% - International Park - SEZ Malaysian 60% - Filipino Greenfield Automotive STARTSFacility Philippines Inc. Construction of a factory/warehouse building 40% - Park - SEZ Japanese RUBBER AND PLASTIC PRODUCTS CHANGHONG TECHNOLOGY PHL 99.99% - First Philippine Manufacture of tooling, do molding plastic parts and assembly of electronic parts CORPORATION Seychellois Industrial Park - SEZ GOJI INDUSTRY PHILIPPINES Increase in the capacity of plastic molding project Mactan Economic Zone CORPORATION PROTEK AUTOMOTIVE PRODUCTS, INC. Include plastic molding for automotive parts and components Cavite Economic Zone

Manufacture of rubber products such as grommets, connector caps, rubber rings, rubber People's Technology SEIEN RUBBER PHILIPPINES, INC. mounts, plug cups and silicon sheets Complex - SEZ

80% - Korean Calamba Premiere SEUNG JIN PRECISION PHILIPPINES INC. Manufacture of High Quality Injection Molding of plastic parts and its components 20% - International Park - SEZ Japanese

STORAGE AND WAREHOUSING

Provide warehousing, importation, selling and distribution of Industrial and Specialty 99.99% - First Cavite Industrial CIGC CORPORATION. Gases in Cylinders, Pallets, Drums and other packaging accessories German Estate - SEZ

KYORITSU ELECTRIC TECH Warehousing/logistics support services Cavite Economic Zone (PHILIPPINES), INC. LGC LOGISTICS, INC. Warehousing/logistics support services Mactan Economic Zone 100% - MACTAN STEEL CENTER, INC.. Warehousing/logistics support services Mactan Economic Zone Japanese 99.99% - Laguna Technopark MORIMURA BROS. (PHILIPPINES) INC. Inventory management system and logistics service Japanese Annex - SEZ Logistics services particularly the establishment of a warehousing facility for storage, OTKM SERVICES PHILS. INC. Cavite Economic Zone deposit, safekeeping of goods 99.97% - Greenfield Automotive STT PHILIPPINES, INC.. Warehousing/logistics support services Japanese Park - SEZ Calamba Premiere VIEWSOURCE PHILS. CORP. Establish a warehouse facility for the storage and safekeeping of goods 100% - Filipino International Park - SEZ TOBACCO MANUFACTURES JT INTERNATIONAL ASIA Lima Technology Center Manufacture of tobacco products 99.99% - Dutch MANUFACTURING CORP. - SEZ

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 83

LIST OF BOI-REGISTERED PROJECTS - (September-October 2015)

PROJECT COST EQUITY INDUSTRY ACTIVITY (IN PHP MILLION) LOCAL/FOREIGN

AGRICULTURE, FISHERY AND FORESTRY

DBSN Farms Agriventures Corp Operator of AAA Poultry Dressing Plant & Further Processing Plant 170.0 100% Filipino

60% Filipino Agri Exam Global Philippines Inc. Producer of Virgin Coconut Oil, Coco Flour and other Coconut derived Products 13.8 40% Indian Grand Asia Integrated Natural Coco 90% Filipino Virgin Coconut Oil 214.3 Products Corporation 10% Chinese

CONSTRUCTION

75% Filipino Citra Central Expressway Corp. Operator of Tollways (Metro Manila Skyway Stage 3 Project) 29,505.00 25% Indonesia

ELECTRICITY, WATER, AND GAS

Southeast Asia Renewable Power Corp RE Developer of 1.1 MW Hydroelectric Power Project 167.55 100% Filipino

SPARC-Solar-Powered Agri-Rural 60% Filipino RE Developer of 5MW Solar-Power Plant (Bataan) 321.25 Communities Corporation 40% Singapore

SPARC-Solar-Powered Agri-Rural 60% Filipino RE Developer of 4MW Solar-Power Plant (Bulacan) 249.75 Communities Corporation 40% Singapore

SPARC-Solar-Powered Agri-Rural 60% Filipino RE Developer of 5MW Solar-Power Plant (Zambales) 321.25 Communities Corporation 40% Singapore

95% Filipino Sunasia Energy Inc. RE Developer of Solar Energy Resources (60MW Toledo Solar Power Plant) 3,951.41 5% German

Renewable Energy Developer of Solar Energy Resources (30MW Victoria Solar Power Plant 90% Filipino Sunasia Energy Inc. 2,833.00 (Phase I) 10% German

YH Green Energy Incorporated RE Developer of Solar Energy Resources (14.5MW Hermosa Solar Power Plant) 1,035.00 100% Filipino

E & P Green Energy, Inc. RE Developer of 25.3 MWp Solar Power Project 2,131.72 100% Filipino

RE Developer of Biomass Energy Resources (FFHC 21MW Bagasse – Fired Biomass First Farmers Holding Corporation - 100% Filipino Cogeneration Plant)

Raslag Corporation RE Developer of 13 MWp Solar Power Project (Phase II) 900.00 100% Filipino

San Jose City I Power Corp. RE Developer of 12 MW (Phase II) Biomass Power Plant Project 1,090.21 100% Filipino Renewable Energy Developer of Solar Energy Resources (18MW DC (15.3 MW AC) Monte Monte Solar Energy Inc. 1,287.3 100% Filipino Solar Energy Project) 51% Filipino San Buenaventura Power Ltd. Operator of 500 MW Coal Fired Power Project 49,954.9 49% Dutch

Sta Clara Power Corporation RE Developer of 1.2 MW Hydroelectric Power Project 187.5 100% Filipino

Renewable Energy Developer of Solar Energy Resources (34.3MWp Solexar Solar Power 75% Filipino Solexar Energy International, Inc. 3,114.7 Plant) 25% American

Enfinity Philippines Renewable Resources Renewable Energy Developer of Solar Energy Resources (24.55 MWp Clark Solar Power 66% Filipino 1,846.9 Inc. Project) 34% Chinese

Renewable Energy Developer of Solar Energy Resources (18MW DC (61.33 MW dc SACASUN 60% Filipino San Carlos Sun Power Inc. 4,769.2 Project) 40% Dutch

Cleangreen Energy Corporation RE Developer of Biomass Energy Resources (12MW Bataan Boimass Power Plant) 1,546.0 100% Filipino

FOOD AND BEVERAGE MANUFACTURES

Rombe Philippines, Inc. Provider of Toll Processing Services (Hotdog Production) 68.37 100% Filipino

Pilmico Foods Corporation Producer of Animal Feeds 550.5 100% Filipino

HOTEL, RESTAURANT, AND LEISURE SERVICES

Sentera Hotel Ventures Inc. Operator of Tourist Accomodation Facility / Tourist Inn (Seda Atria Hotel) 494.50 100% Filipino

Data Land Inc. Operator of Hotel (Best Western The Ivy Wall Hotel) 865.0 100% Filipino

Eskaya Beach Resort Corp. Tourism ( Resort) 200.2 100% Filipino

MISCELLANEOUS MANUFACTURES

Sogod Bay Coco Active Carbon Activated Carbon 24.1 100% Filipino

OFFSHORING AND OUTSOURCING

Music Group Services PH Group Call center and business processing operations (BPO) services 82.0 100% Hongkong

Philippine ANALYST BUSINESS October-November 2015 84 BUSINESS

OTHER BUSINESS SERVICES

SAS Shipyard Inc. Ship repair Facility 36.46 100% Filipino

REAL ESTATE AND PROPERT DEVELOPMENT

8990 Housing Development Corporation Economic and Low Cost Housing ( Urban Deca Homes Tisa) 546.45 100% Filipino

8990 Housing Development Corporation Economic and Low Cost Housing ( Deca Homes Our Lady of Guadalupe) 208.37 100% Filipino

8990 Housing Development Corporation Economic and Low Cost Housing ( Deca Homes Our Lady of Guadalupe) 208.37 100% Filipino

Amaia Southern Properties, Inc. Economic and Low-Cost Housing (Amaia Steps Bldg.) 404.61 100% Filipino

Avida Land Corp. Developer of Economic and Low Cost Housing Project (Avida Towers Prime Taft Tower2) 816.54 100% Filipino

Bellavita Land Corp. Developer of Economic and Low Cost Housing Project ( Bellavita San Pablo) 189.55 100% Filipino

Borland Development Corp. Economic and Low-Cost Housing (RCD Celina Plains Imus Phase 2A) 45.14 100% Filipino

Borland Development Corp. Economic and Low-Cost Housing (Berkeley Heights Subdivision) 70.43 100% Filipino

Kenrich Development Corp. Developer of Economic and Low Cost Housing Project (Las Casa De Naga ) 114.34 100% Filipino

Lynville Realty and Development Corp. Developer of Economic and Low Cost Housing Project (Lynville Residences Lipa) 342.28 100% Filipino

Lynville Realty and Development Corp. Developer of Economic and Low Cost Housing Project (Lynville Homes ) 92.16 100% Filipino

SM Development Corporation ELCH (Cool Suites Tower A at Wind Residences) 574.49 99.95% Filipino

81% Filipino Axeia Development Corporation Developer of Economic and Low Cost Housing Project (Le Moubreza Phase II) 199.5 19% American 81% Filipino Axeia Development Corporation Developer of Economic and Low Cost Housing Project (Valle Verde Dasmarinas Phase 3) 289.1 19% American

Johndorf Ventures Corporation Developer of Economic and Low Cost Housing Project (Navona Subdivision) 471.6 100% Filipino

SM Development Corporation Economic and Low-Cost Housing (Air Residences) 2,260.2 99% Filipino

60% Filipino Yega Development Corp. Developer of Economic and Low Cost Housing Project (Smart Condominium) 55.9 40% Korean

Borland Development Corp. Developer of Economic and Low Cost Housing Project (Celina Plains Subdivision Phase 3) 299.9 100% Filipino

99% Filipino Embarcadero Land Ventures, Inc. Developer of Economic and Low Cost Housing Project (Tektone Village) 89.7 1% Chinese

Developer of Economic and Low Cost Housing Project 71% Filipino Filinvest Land, Inc. 312.1 (One Spatial Building 3 and Building 4) 29% Singaporean

71% Filipino Filinvest Land, Inc. Developer of Economic and Low Cost Housing Project (Sorrento Oasis (Building J)) 151.5 29% Singaporean

St Francis Square Realty Development Economic and Low Cost Housing ( Ponte Verde De Sto Tomas, Batangas Phase 2 & 3) 25.7 99.87% Filipino

TRANSPORT SERVICES

86% Filipino Cebu Air, Inc. Operator of Air Transport Services 2,061.0 14% Foreign

TOTAL 117,760.86

Philippine ANALYST BUSINESS October-November 2015 BUSINESS 85

FOREIGN DIRECT INVESTMENT BUSINESS CLIMATE INDEX Balance of Payments Concept*; JANUARY - SEPTEMBER 2015 LEVEL (US$ million) YEAR-AGO YEAR-ON-YEAR SOURCE CURRENT LEVEL (% CHANGE) TOTAL FDI 4,536.6 4,802.3 (5.5) Equity Capital 1,438.9 1,138.9 26.3 Reinvested Earnings 575.2 651.5 (11.7) Debt instruments 2,522.5 3,011.9 (16.2)

* The BSP adopted the Balance of Payment, 6th edition (BPM6) compilation framework eff ective 22 March 2013 with the release of the full-year 2012 and revised 2011 BOP statistics. In BPM6, net FDI fl ows refer to non-residents’ equity capital (i.e., placements less withdrawals) + reinvestment of earnings + debt instruments, net (i.e.,net intercompany borrowings).

YEAR- INDUSTRIAL PERFORMANCE DATA YEAR-TO- ON-YEAR (2000=100) SEPTEMBER 2015 (INDEX) DATE GROWTH Volume of Production Index (VoPI) 133.9 3.6 -2.3 a. Food 112.8 -18.3 -17.6 b. Beverage 135.2 0.8 -4.9 c. Tobacco 9.3 34.8 19.1 MOTOR VEHICLE SALES d. Textile 42.7 12.7 15.6 OCTOBER 2015 e. Footwear and Wearing Apparel 27.5 13.2 -7.2 YEAR-AGO GROWTH DATA LEVEL RATE (%) f. Wood and Wood Products 63.0 -14.2 -14.1 g. Furniture & Fixtures 766.3 1.3 -1.9 MOTOR VEHICLE SALES 28,667 22,278 28.7

h. Basic Metals 122.4 -5.9 2.8 PASSENGER CAR SALES 11,235 8,975 25.2

i. Iron and Steel 105.1 -3.4 13.7 COMMERCIAL VEHICLE SALES 17,432 13,303 31.0 j. Non-ferrous Metals 161.0 -11.5 -17.2

k. Fabricated Metal Products 394.4 8.4 3.3 UNIVERSAL AND COMMERCIAL BANK'S l. Machinery Excluding Electrical 48.1 12.6 -3.2 LOANS OUTSTANDING TO THE REAL ESTATE SECTOR (P Bn) m. Electrical Machinery 108.5 21.4 11.7 % TO TOTAL % TO TOTAL DECEMBER 2014 DEC-14 DEC-13 n. Transport Equipment 133.9 11.9 3.9 RE LOAN RE LOAN

o. Other Mfg Industries 115.3 11.1 6.2 Residential 234.45 28.3 195.61 29.2 p. Paper & Paper Products 80.4 9.8 10.0 Commercial 594.28 71.7 473.78 70.8 q. Publishing & Printing 126.1 -23.8 -2.1 r. Leather Products 4.4 -2.2 2.8 s. Rubber Products 297.0 -1.0 -0.5 t. Chemical Products 361.6 8.5 -11.0 u. Petroleum Products 48.8 -3.4 2.1 v. Non-Metallic Mineral Products 107.6 -19.7 -10.0 w. Glass & Glass Products 135.0 12.5 -2.3 x. Cement 178.0 3.2 15.2 y. Misc. Non-Metalic Mineral Products 45.6 -19.3 -3.7 VALUE OF PRODUCTION INDEX (VAPI) 187.5 -4.8 -8.4 (2000=100) AVERAGE CAPACITY UTILIZATION 83.4 -16.7 83.3

Philippine ANALYST BUSINESS October-November 2015 86 BUSINESS

BUSINESS CLIMATE INDEX 5 STRIKES AS OF OCTOBER 2015 LABOR STRIKES (OCTOBER 2015) One work stoppage was recorded in October, bringing the total recorded strikes MAN-DAYS from January to October to 5. Strikes for the year have involved a total of 1,450 STRIKES DECLARED WORKERS INVOLVED workers, equivalent to 3,362 man-days lost. Meanwhile, there were a total of LOST (000) 209 notices of strike/lockouts handled during the period. 2015 2014 2015 2014 2015 JAN----- FEB----- MAR----- APR----- MAY 3 - 450 - 1,362 JUN----- JUL----- AUG 1 - 200 - 1,200 SEP----- OCT 1 2 80 51 800 NOV----- DEC----- TOTAL 5 2 730 51 3,362

VISITOR ARRIVALS IN SEPTEMBER 2015 Total visitor arrivals registered in September was 393,589, up by 19.64% from 328,981 in the same month in 2014. Of this number, 2.65% or 10,433 were Filipinos residing abroad. Korea remained the top source of visitors followed by China and the USA. Visitors coming from Korea amounted to 95,386 (24.23% share of total visitors), with 51,378 visitors (13.05%) from China and 46,291 visitors (11.76%) from the USA.

VISITOR ARRIVALS (JANUARY TO SEPTEMBER 2015) SURVEY ON MONTHLY OCCUPANCY RATE & LENGTH OF STAY COUNTRY 2015 2014 % CHANGE RANK JAN TO DEC JAN TO DEC GROWTH RATE KOREA 997,135 865,950 15.15 1 2013 2012 2013/2012 USA 577,508 536,385 7.67 2 De Luxe Hotels JAPAN 380,815 349,100 9.08 3 Occupancy Rates 70.82 71.49 -0.94 CHINA 373,795 334,672 11.69 4 Length of Stay 2.87 2.92 -1.71 AUSTRALIA 170,706 156,789 8.88 5 First Class Hotels SINGAPORE 136,039 132,343 2.79 6 Occupancy Rates 60.14 58.05 3.59 TAIWAN 135,194 108,713 24.36 7 Length of Stay 2.20 2.30 -4.17 MALAYSIA 117,184 99,167 18.17 8 Standard Hotels UNITED KINGDOM 112,360 98,470 14.11 9 Occupancy Rates 65.34 64.82 0.80 CANADA 109,852 101,026 8.74 10 Length of Stay 2.46 2.38 3.47 HONGKONG 93,808 84,863 10.54 11 Economy Hotels INDIA 54,565 44,578 22.40 12 Occupancy Rates 52.15 53.44 -2.41 OVERSEAS FILIPINO 154,405 152,973 0.94 Length of Stay 1.87 2.13 -12.44 OTHERS 570,261 531,494 7.29

TOTAL 3,985,642 3,598,537 10.76 Overall Average 67.20 67.25 -0.07 Philippine ANALYST BUSINESS October-November 2015