Volume 26 No. 06 June 2015 Boracay Action Agenda on MSMEs supported The Philippine-led Boracay Action Agenda to Globalize MSMEs (micro, small, and medium enterprises) received an overwhelming support from the 21 ministers who Cooperation (APEC) Ministers Responsible for Trade (MRT) Meeting held in Boracay, Aklan on 23-24 May.

The Philippine-led initiative calls among APEC economies to provide MSMEs wider opportunities in the global or regional trade, Boracay Action Agenda either through global value chains Action Points 1. Facilitate the access of MSMEs to foreign programs (TTP) to include MSMEs in goods and services. trade agreements and regional trade order for them to contribute to security, agreements (FTAs/RTAs) by simplifying integrity, and resiliency in supply Department of Trade and and streamlining rules of origin chains. Industry (DTI) Secretary Gregory (ROO) procedural and documentary L. Domingo said the requirements and harnessing information 5. Support measures to widen options received “very good suggestions” technology (IT) to ease documentation from APEC trade ministers for and procedures. the infrastructure to facilitate lending the Boracay Action Agenda, which will be endorsed during the APEC 2. Streamline customs-related rules 6. Expand internationalization opportunities Economic Leaders' Meeting (AELM) and regulations and assist in the for MSMEs, providing goods and in November. compliance of MSMEs. services through information and communications technology (ICT) “That’s quite an accomplishment 3. Provide timely and accurate information and e-commerce. for the chairmanship of the on export and import procedures and requirements. 7. Strengthen institutional MSME support. Philippines. It’s very popular as 4. Widen the base of Authorized Economic 8. Strengthen focus on MSMEs led Operators (AEO) and trusted trader by women. Secretary Domingo said. The APEC has been pushing for They also called for the support “We are expecting it will be of the APEC Business Advisory in the past have focused on Council in pursuing action he said. improved participation of those to advance MSMEs’ participation already part of global value chains in global trade. !"!# and not on MSMEs. $ Secretary Domingo said the Philippines has proposed the setting areas for cooperation such as trade up of a trade repository and services % DTI-Bureau !!"! framework for APEC. of Import Services (BIS) Director and institutional support to address Luis M. Catibayan said. business barriers. June 2015 1 economic zones this year as the he said. country remains as an attractive location for business due to its INDUSTRY Even if markets in Europe, United favorable economic conditions and TRENDS States (U.S.), and China are sluggish, young talent pool, de Lima said. Ortiz-Luis is optimistic that the second-quarter growth could Last year, PEZA-approved FDIs rise 18% in February grow higher on the back of strong #:?+*XY! Foreign direct investments (FDIs) Association of Southeast Asian &+#;#:[+&7Y#$&7+ that entered the Philippines grew Nations (ASEAN) and Japan markets. by 18% in February 2015 from PHL signs global trademark deal the comparative month last year, “The electronics sector has been /\] indicating the continued operations performing well. It can carry the of the Philippines (IPOPHL) " $)*) has signed a Memorandum of in the country, the &" Understanding (MOU) with ng Pilipinas (BSP) said. ) Ortiz-Luis said. the International Trademark Association (INTA), a global Growth prospects for other sectors association of trademark owners such as metals, mining products, and and professionals, to promote and services are also getting brighter. protect trademarks.

Philippine exports in 2014 reached The agreement, signed at the FDIs rose to USD 359M in February USD 61.8B, or 9% growth over 2013. sidelines of the INTA Annual Meeting from USD 305M in the same month held in California in May, commits #$&*+/"67:; PEZA positive of drawing more the two parties to collaborate in better than the USD 263M recorded investments the areas of promotion, protection in January this year. The Philippine Economic Zone Authority and enforcement of trademarks, (PEZA) is optimistic it could restore research and information, as well Fresh investments made by foreign investments that were put on hold last as capacity-building. year with the continuing improvements =>&:?@ at the Port of . The agreement is expected to from USD 63M a year ago. create a stronger link between the About P25B worth of investments government and the private sector Bulk of these investments went at the country’s ecozones were as INTA represents the world’s top into the following sectors: lost last year due to congestion at global brands. # " the Port of Manila. However, PEZA # O!!" Director General Lilia B. De Lima “The Philippines is playing an supply 6" increasingly important role in # @ will lure new investments this year. # /" INTA President J. Scott Evans said. # !! PEZA plans to talk to existing technical activities. economic zone locators and +!,/ convince them to proceed with their 2 FDIs came mainly from the United expansion plans given the reported 2 States (U.S.), Spain, the United easing of the port congestions  Kingdom, Japan, and Singapore. in the Port of Manila. &$ '&$ Exports may reach 8%-10% Malacañang said the port congestion $ growth target issue has been resolved earlier Philippine public to help us The country’s exports could this year, owing to measures hit between 8%-10% expansion, implemented both by the $&& Philippine Exporters government and the private sector. & Confederation, Inc. (PhilExport) Evans said. President Sergio Ortiz-Luis Jr. said. To recover the investments, PEZA is also set to hold outbound investment For his part, Exporters are sticking it out with missions to Japan and Europe this Charge and Deputy Director General the growth targets set under the year, particularly in countries where Allan B. Gepty said the cooperation Philippine Export Development Plan is important as more global brands (PEDP), Ortiz-Luis said. in investing in the Philippines. are entering the Philippine market.

' PEZA is sticking to its 8-% growth The country needs a more strategic the 8%-10% growth target this target for investment pledges in and sophisticated enforcement

2 Philippine Business Report against trademark infringement On the same note, Wong and The Next Wave Cities™ will be for both the physical and online Bernstein Group Company Business selected by the DOST-ICTO market, Gepty said. Senior Adviser Enrique M. Soriano and IBPAP based on the following III criteria: , demand to the country’s robust # 2 economy. # / # " & + of telecommunications networks &$ # he said. $"!#< # Y!" = vulnerability to natural disaster “With the accession of the result we have seen the emergence and issues related to security 2!2 $) and safety && $ %> In 2014, it was reported that the & country’s Next Wave Cities™ were Soriano said. the following: +4) # Y" a new platform of ensuring Meanwhile, the Department of # > $$& Science and Technology-Information # >" Gepty added. and Communications Technology # \ ]~>]/\/]}!" # ‚ @&X:X!_6`j with the IT and Business Process # Y~Y"! INTA comprises more than 6,500 Association of the Philippines Calumpit, Malolos City, Marilao, organizations from 190 countries, (IBPAP), is pushing for more and Meycauayan City) including the Philippines. locations in the country to be # ~Y! considered preferred outsourcing Dasmariñas City, and Imus City) PHL continues to be an attractive destinations. # ‚"~! outsourcing site Los Baños, and Sta. Rosa City) The Philippines continues to be The DOST-ICTO is grooming the # _"~_"} an attractive outsourcing destination “next wave cities” to become part # ƒ„~!  of Tholons’ Top 100 Outsourcing Cainta, and Taytay) "!{ Destinations. Lang LaSalle (JLL) Philippines Inc. In Tholon’s 2015 ranking, said. /" three cities in the Philippines that prepares an annual list ranking moved up several notches. * the best cities for outsourcing These are the cities of Bacolod, 6,7,9 worldwide. Baguio, and Iloilo. : $ /_( From its 93rd position in 2014, excludes , Metro Cebu, Bacolod rose to 86th in the ranking Metro Bacolod, and Metro Clark that Tholons began in 2006. JLL Research, Consulting and in Pampanga, since these are the From 99th, Baguio City is now ranked Valuation Head Claro dG. Cordero country’s “centers of excellence” 95th, while Iloilo City rose to 91st Jr. said. (COEs), having developed from 95th in the 2014 ranking. a mature information technology + and business process management of the Philippines as an outsourcing (IT-BPM) industry. on PPP, BPO Canadian companies have expressed optimism in putting * Centers of Excellence $& up capital in the Philippines ) Metro Manila particularly in the areas of  Metro Cebu public-private partnership (PPP) $ Metro Clark projects and business process 4"#4# Metro Bacolod outsourcing (BPO). ; Cordero said. President Benigno S. Aquino III He said new urban areas are being ?$$?$ $ drew these investor interests developed to accommodate will announce the top 10 next wave during his three-day state visit the expansion of the O&O ICT Industry Development :?" and BPO (business process closer diplomatic and economic "}+ of the DOST-ICTO said. ties between the two countries.

June 2015 3 During his visit, President Aquino Devonshire-Ellis said the Philippines Sales of commercial vehicles (CV) met with Canada Governor General enjoys a number of advantages &7;‡$!:‡? David Lloyd Johnston and Prime compared to China, including having January to April this year, while Minister Stephen Joseph Harper. more competitive operational costs. passenger car (PC) sales grew by 34.5% to 33,382 units. Aquino and Harper exchanged notes Another advantage, Devonshire-Ellis on the promotion of micro, small, said, is the Philippines’ membership “This continuing increase in and medium enterprises (MSMEs) in the Association of Southeast Asian which Canada has also vigorously Nations (ASEAN). supported. >+ @$ also consistent with economists’ Department of Trade and Industry : (DTI) Secretary Gregory L. in business process outsourcing growth will remain strong as per Domingo, who was with President 62,94 capita income hopefully reaches Aquino and other Philippine & /"ABCCCDCEF ""! CAMPI President Rommel R. shared the country’s experience &$4 Gutierrez said. in setting up roving academies and $%); training workshops as well as in 4"#4 O„6 establishing shared service facilities Devonshire-Ellis said. would pick up in the coming months (SSFs) for start-up enterprises. to hit the sector’s sales target In addition, English is spoken of 310,000 units for 2015, up by 15% The two leaders welcomed a across the lower and middle classes from the 269,058 units sold in 2014. number of key initiatives to deepen of the Philippines, especially in the Philippines-Canada bilateral the larger cities and tourist spots, New markets relationship: enabling the country to attract a for PHL franchisers cited # j6 great deal of BPO on a global scale, Filipino franchisers should explore trade agreement (FTA) Devonshire-Ellis said. other Southeast Asian markets # "" such as Myanmar, Viet Nam, existing Foreign Investment <2= and Cambodia where they can Promotion and Protection '%$ expand their reach, Philippine Agreement Franchise Association (PFA) # \""6 $ Chairman Emeritus Samie " & Lim said. with the Philippines, as a priority $ for Canada’s economic growth means the Philippines is a viable !G; # @6j $ N&$ accountability for development he added. so I’ll tell our people to stop cooperation outlining the & commitments of both Car sales up by 20.7% & Lim said. governments to work together as of April in reducing poverty in Vehicle sales in the country grew Only a few American brands are the Philippines. #$+:;X*!&*& in Myanmar due to United States January-April period this year (U.S.) trade sanctions and this is a PHL viewed as alternate Asia compared to the same period @ trade hub in 2014, combined data from before the American brands start The Philippines is well positioned the Chamber of Automobile to come in, he explained. to become an alternative site Manufacturers of the Philippines "" Inc. (CAMPI) and the Truck ,$ to set up a manufacturing or Manufacturers Association (TMA) $% services base in Asia and serve as showed. there. But there is no intellectual a re-export hub to the region $ and the rest of the world, Hong caveat. The key is to have a partner Kong-based Professional Services & >„ $ reported. Lim said, as he also urged local businessmen to check franchising In an article titled “The Cost prospects in Viet Nam. of Business in the Philippines For April alone, total vehicle sales Compared With China,” Dezan Shira grew by 18% year-on-year to 21,259 The Center for International Trade Founding Partner and Chair Chris units. Expositions and Missions (CITEM),

4 Philippine Business Report the export promotion arm of the operations to better serve its of 15,000 units in one shift, and Department of Trade and Industry customers. 30,000 units on double shift. (DTI), supports PFA in its campaign to export Filipino brands through &!":$$! IPC production for this year is seen participation in franchise shows completed covering the stockyard to reach around 12,000 units, of + warehouse, parts warehouse, and which 4,000 are expected to be a portion of the planned training trucks. ' academy. A'$ Japan aircraft component maker EC Phase 2, costing P500M which will expands Clark plant ;+#! start early next year, covers the Japanese manufacturers of aircraft he said. &#! interiors and components have a car museum, a center for climate invested an additional P106M to change, and a training academy. further expand their operations at the Clark Freeport in Pampanga. TRADE AND The logistics center can Of the amount, P96.16M came from accommodate 5,000 vehicles Jamco Philippines Inc. (JPI) while equivalent to a two-month INVESTMENTS the remaining P10M would be from inventory. It will house imported Show Aircraft Industry Philippines Hyundai vehicles coming in through MANUFACTURING Inc. (SAIPI). the Batangas port before delivery CEMEX inaugurates P3-B Apo to dealers nationwide. Cement mill in Cebu JPI manufactures commercial aircraft interior components and CEMEX Philippines inaugurated its Last year, HARI’s total sales reached sub-assembly parts for Jamco P3-B Apo Cement Plant in Naga City, #7!$&?+ˆ America and Jamco Corp. of Cebu as part of its comprehensive of this year, HARI has sold 5,364 Tokyo. The new facility at the expansion plan in the country. units. Philexcel Business Park in Pampanga Isuzu considers local assembly 6] of trucks panels for Boeing planes. Isuzu Philippines Corp. (IPC) is considering the local !{\#&: assembly of Category 5 trucks employees and plans to increase (weighing at least 25 tons) at its employment to 300 in the next The new 3,433-sqm facility manufacturing plant in Laguna, two years. increases CEMEX’s production in anticipation of the estimated capacity by 1.5M metric tons (MT) 25-% surge in demand for heavy per year or an additional 40% ECONOMIC AND LOW- duty vehicles. in total capacity. COST HOUSING IPC Senior Vice President for Sales The project currently employs Division Arthur A. Balmadrid said 8990 to add P10B worth around 950 regular and direct the demand for this truck category of housing units to market contract personnel. During the has been rising by 20% to 30% as Mass housing developer 8990 construction phase, 800 workers more companies choose brand new Holdings Inc. will infuse P10B were employed. trucks over second-hand units. worth of new housing units this year, mostly in the Visayas and Aside from the cement mill Buying new trucks proved to be Mindanao regions. in Cebu, CEMEX Philippines has ! 6 taking into consideration the The new housing inventory distribution terminals located in the looming implementation of a will come from nine new cities of Manila, Iloilo, and Davao. government policy that will put a and 10 ongoing projects that 15-year age cap for trucks, will provide a total of 11,083 Hyundai to build P1.2-B logistics \+ housing units this year. center in Laguna Hyundai Asia Resources, Inc. (HARI), For the assembly of Category 5 The ongoing projects worth P6.1B the local distributor of Hyundai trucks, IPC can use the plant’s will provide 6,598 units. vehicles, is spending P1.2B for its existing Category 3 and 4 new logistics center in Calamba assembly line. Nine projects worth P4B to be City, Laguna. launched this year will be in the At present, IPC assembles the cities of Muntinlupa, Cavite, Cebu, The new logistics center will D-Max, Crosswind, and trucks at the Iloilo, and Davao to produce 4,486 6 Laguna facility, which has a capacity housing units.

June 2015 5 8990’s New Housing Projects Green Light, will inject USD 180M worth of investments in photovoltaic Project Area Project Cost No. of Units (PV) solar farm developments that (in Php million) would yield an aggregate capacity of 100 megawatts (MW). Urban Deca Homes Campville Muntinlupa City 414 488 Deca Homes Tanza, Cavite 267 594 / Deca Homes Guadalupe Cebu City 442 408 and sites for the three initial Deca Homes Talisay 3 Cebu City 390 410 Iloilo City 1,510 1,680 projects that will be ready for Deca Homes Resort Residences Davao City 955 906 commercial commissioning before Residences Prime year-end to early part of 2016, Deca Homes Resort Residences Davao * * which include: Commercial Phase 11 # #$6 Clark Freeport Zone in Pampanga Deca Homes Catalunan Grande Davao * * # *$! *Data not available Tarlac ENERGY Likewise, Alsons Power is interested # *$>"! to participate in the privatization Davao del Sur Alsons Power Group eyes initial of the Agus-Pulangi hydroelectric The company hopes to avail investments of P2B for RE power plants in Mindanao. ~@\/}+ venture The Energy Regulatory Commission Alsons Power Group, the holding Both based in Mindanao, Agus (ERC) has set March 15, 2016 as the hydropower plant in Lanao del Sur has ˆ Resources, Inc.’s power assets, seven units that generate a total of for the P8.69 per kilowatt-hour plans to invest P2B for its renewable :$$!6"6 (kWh) FIT. energy (RE) venture, which involves plant in Bukidnon generates 255 MW. "6 The FIT, however, is not the only in Mindanao this year. The Power Sector Assets and option for the company. It also Liabilities Management Corporation eyes bilateral contracts with To date, Alsons Power Group (PSALM) currently operates the electric cooperatives (ECs) and has service contracts to build plants which, according to an capacity trading via the Wholesale a combined RE capacity of 94 earlier estimate, could cost as much Electricity Spot Market (WESM). megawatts (MW) spread out across as USD 1B. The WESM establishes the basic + rules, requirements, and procedures Nickel Asia to invest P920M that watches the operation of the @ƒ!6 Philippine electricity market. is currently on the preparation Nickel Asia Corporation (NAC) stage for the development of the is investing P920M to acquire a 66-% Lopez group expanding solar Suguil hydroelectric power project j6"~ƒ} capacity in Ilocos in Maasim, Saranggani. The power Emerging Power Inc. (EPI) which is The Lopez conglomerate Energy plant is projected to cost USD 40M developing the Montelago geothermal Development Corporation (EDC) to USD 50M and generate 15 MW project in Oriental Mindoro. is initially planning an expansion to 16 MW of power. of 30 megawatts (MW) for its solar The project can generate capacity and hopes to expand it The company will start 30 megawatts (MW) of power over to 150 MW and 200 MW. construction by the last quarter a 25-year period, and expand of this year. It will take about production with further drilling. The initial 30 megawatts of 36 to 40 months to build. photovoltaic solar facility will be The investment is expected to help installed adjacent to a site of their \j6 address the short supply of power in existing 4-MW capacity project to South Cotabato II Electric the country by focusing on RE sources. in Burgos, Ilocos Norte. Cooperative, Inc. (Socoteco 2). The fund will be used for drilling The installation cost per MW is The company is planning of additional wells and related seen at USD1.8M, thus the 30 MW to build a combined amount production facilities within the development would need a P2-B of 164 MW of hydro power projects in "+ capital outlay. Mindanao over the next few years. It has pending service contract EDC Vice President for Corporate applications to the Department in solar projects Finance Erwin O. Avante of Energy (DOE) involving additional /Y" mentioned that the planned :$+ !"6 expansion is a challenge for there

6 Philippine Business Report is a perfect formula wherein it The company plans to invest P2.8B DOTC earlier noted that the system needs to have the following: high this year, P3.1B in 2016, and P2.1B was patterned after the BRT irradiance, good site close to a #$&:Œ systems in Bogota in Columbia, transmission line, and low-cost land. and Batangas Port. Curtilba in Brazil, Seoul in South More companies are aggressive on Korea, and Guangzhou in China. solar investments since the Energy Capital outlay over the next three Regulatory Commission’s approval years would be sourced from The Cebu BRT is expected to run of the second wave of solar feed-in- internally generated funds. through 15.5-km. bus-ways from ~@\/}6"" Bulacao to Talamban in Cebu, P8.69 per kilowatt hour. ATI deployed six empty container with a link to Cebu’s South Road handlers last February and added Property. PUBLIC "~ƒ/O} cranes in the middle of the year It is expected to serve around INFRASTRUCTURE AND to support faster and safer 330,000 passengers per day. LOGISTICS operations at the Manila South Harbor. NAIA-1 Expressway phase one DMCI and EEI bag Stage completion seen in November 3 project contract ATI’s expansion will include the San Miguel Corp. (SMC) will Citra Central Expressway Corporation, increase of container storage areas complete the P15.5-B Ninoy a unit of San Miguel Corporation, within the Manila South Harbor Aquino International Airport (NAIA) has awarded to D. M. Consunji, expanded port. Their automation Expressway toll road in time for the Inc. (DMCI) and EEI Corporation the program, meanwhile, includes the 32-month engineering, procurement, upgrading of its terminal and (APEC) Leaders’ Summit and construction (EPC) contract for resource management systems at in November 2015. the Metro Manila Skyway Stage 3 Manila South Harbor and its Vehicle project. Booking System (VBS) which will Undertaken under the the become online toward the latter Public-Private Partnership (PPP) DMCI will undertake Stage 1 and 2 part of the year. arrangement, the four-lane project of the Skyway project, which is :+:‡j+6 a six-lane elevated toll expressway. Like airline booking systems, and 2.2-km. feeder road to provide The building of the project will start the VBS would speed up port access to NAIA Terminals 1, 2, and at the end of Skyway Stage 1 located processes by aligning demand and 3. It would also connect to the along Buendia in Makati City. capacity on a 24-hour basis without Skyway system, the Manila-Cavite "+ Toll Expressway (Cavitex), and the DMCI said Section 1 of the project Entertainment City of involves the construction ! state-run Philippine Amusement 7+:j+"6Y The Department of Transportation and Gaming Corporation (PAGCOR). to Nagtahan in Manila. and Communications (DOTC) 6=>#+?[:+X /‘ Section 2, meanwhile, covers detailed engineering design and which would link NAIA 1 and 2 to the 3.5-km. stretch from Nagtahan construction supervision contract Entertainment City (formerly PAGCOR to Ramon Magsaysay Boulevard, for the bus rapid transit (BRT) City, a gaming and entertainment also in Manila.  complex located at the Manila Kunhwa Engineering & Consulting. Bay Reclamation Area), started EEI, on the otherhand, will undertake in January 2014. Sections 3 and 4 covering the 14.82-km. elevated expressway Meanwhile, the second phase linking project from Buendia to Balintawak the Metro Manila Skyway, NAIA in . Terminal 3, and the intersections of Domestic and NAIA Roads is likely to This will link the South Luzon be completed in March 2016. Expressway (SLEX) and North Luzon The World Bank will shoulder USD Expressway (NLEX) through eight 2.9M of the total contract price, AVIATION strategic interchanges. while the government will provide the "[:+X+ "#$&' Asian Terminals unloads P8B @/ for expansion The Cebu BRT is the country’s Avionics is considering expansion Port operator Asian Terminals Inc. ! of its Philippine operations while (ATI) has earmarked P8B for its which is also one of the major other French companies mull three-year expansion program transport projects under the Aquino investing in the country.  Administration. of its facilities. June 2015 7 Thales Avionics has been tapped up to 8,000 nautical miles for 4th foreign bank gets BSP nod since 2013 by Philippine Airlines (PAL) a non-stop service from Manila State-owned Industrial Bank of Korea for an extensive range of equipment to Europe or North America. (IBK) was granted the authority for the airline’s A321s and A330s to branch out in the Philippines including the Flight Management ‚!!„" last 30 April, Bangko Sentral ng System (FMS) Landing System and a long-term plan involving a foreign Pilipinas (BSP) Deputy Governor Instrument Landing System. strategic partner that could acquire Nestor A. Espenilla Jr. said. a 40-% stake in PAL within the next +& three years. IBK is the fourth foreign bank & to be given the go-signal to set up & BANKING shop in the Philippines this year $) Ambassador following the liberalization of France to the Philippines Gilles Manulife doubles investment of the banking sector. Garachon said of Thales’ operations \@ in the Philippines. is planning to double its investment The three other BSP-approved in the Philippines in a bid to achieve banks were Shinhan Bank (South Department of Trade and Industry double-digit premium growth Korea), Cathay United (Taiwan), (DTI) Secretary Gregory L. this year. and Sumitomo Mitsui (Japan). Domingo and French Ambassador Garachon recently held a dialogue Manulife President and Chief BSP aims to make the local industry to discuss improving trade relations ! more competitive. The presence between the two counties. Charland said the increase of more foreign banks also promises ] to facilitate the entry of more The Philippines imports French of their outlook on the Philippine foreign investors as lenders bring aircraft and exports furniture, economy. their clients to the country. agricultural products, and electronics to France. 'S& HEALTH & WELLNESS France, on the other hand, & Swedish cancer care expressed to buy raw materials ) ($&' from the Philippines to complement 'ELDM Scandinavian Care AB will invest its aircraft manufacturing sector. FCDCEN Charland said. in the Philippines to establish a cancer research and care center facility. @"" Manulife will open 10 new branches Public-Private Partnership (PPP) this year and eight more next year. projects like the Light Rail Transit (LRT) 1 extension, the Subic-Clark- Metrobank plans expansion Tarlac Expressway, and the Cebu j" bus rapid transit. consumer-banking capabilities and is targeting entrepreneurs, middle- Since 2014, France has been market commercial clients, and looking for opportunities to develop small and medium enterprise (SME) The health care company’s expansion cooperation on aerospace entities, Metropolitan Bank & Trust 6+\ and MRO (management, repair, Co. (Metrobank) President Fabian operates in Manila, Makati City, and operations) with the Philippines. S. Dee said. Pasay City, and Pasig City.

Combined annual trade between The bank plans to roll out 200 /! the two countries is placed cash-accept machines, Internet planning of cancer treatment at USD 2.2B last year. banking portal, and mobile apps, centers, and start-up services which to expand its branch network include construction and equipment PAL, Cebu Pac eye new Airbus and sales force, particularly for its planning and training programs. Philippine Airlines Inc. (PAL) commercial banking, branches \+~} and wealth-management segments, IT-BPM are looking at Airbus’ new aircraft Dee said. as both airlines push for expansion Tech Mahindra expands Cebu of their long-haul operations. It will put up 30 branches every year operations and will add 1,000 to the sales force India-based information technology "6 in the next two to three years. (IT) services provider Tech Mahindra 7‡$ has expanded its operations for new long haul destinations. The Metrobank has total branches in Cebu City. 7[?] of 920 nationwide as of end-2014.

8 Philippine Business Report / MINING Venture Development Corp. and at eBloc 3 inside the Cebu IT Park involves building a mixed-use in Barangay Lahug with 500 seats OceanaGold’s Didipio was top leisure and resort community. for voice services. 2014 metals producer OceanaGold Philippines Inc.’s Meanwhile, the 15-ha. city center /!#$&$! Didipio Copper Gold Project is the in Mandaue will feature is in Jeza Building along General biggest contributor to the country’s residential developments and Maxilom Avenue. It currently has metals output in 2014, producing commercial spaces with retail 400 seats, occupying two and a half P13.68B worth of copper, gold, and + ]"+ silver, Department of Environment and Natural Resources-Mines and Cebu Holdings, Inc. President Tech Mahindra Group Delivery Geosciences Bureau (DENR-MGB) Aniceto V. Bisnar, Jr. said the Head for Business Services reported. planned investment is more than Anand Achuthan said at least half the amount the group had 800 employees will be employed The Didipio Project is situated already put in Cebu City since it by year-end, aside from in the provinces of Nueva Vizcaya "#:"+ the part-time workers and Quirino. for seasonal jobs. Federal, Alveo investing P2.5B Red Mountain gets new funding Federal Land Inc. and Alveo Land Regus puts up add’l centers Red Mountain Mining has secured are allotting P2.5B for the joint Global workspace provider Regus additional USD 220,000 in funds development of a 45-ha. property plans to expand operations outside for its Batangas Gold Project in Biñan, Laguna. Metro Manila in the next three to in the Philippines, bringing their + total investments in the country The property, which will involve to USD 500,000. the sale of residential lots to the The company is considering, among middle to high-end market, will be others, the cities of Zamboanga, The investment will be allocated launched third quarter of 2015. General Santos, and Davao as the j> potential locations for its expansion, Feasibility Study and permitting The property is a few kilometers Regus Philippines Country Manager inputs for completion by the third from the planned Laguna Boulevard Lars Wittig said. quarter of 2015. interchange of the proposed Cavite- Laguna Expressway and in the +2 The Batangas project has already general vicinity of Ayala Land’s is extremely big that is why we are been endorsed by all directly Ayala Westgrove Heights and ) Wittig said. involved local government barangay Nuvali projects. councils. Top 8 mining projects in 2014 based on mineral production output REAL COMPANY Company Project Location Output value ESTATE (In billion Pesos) NOTES OceanaGold. Didipio Copper Nueva Vizcaya 13.68 Ayala unveils P25-B Cebu Gardenia invests P1B Philippines Inc Gold and Quirino provinces expansion plan in Laguna factory Ayala-owned Cebu Gardenia Bakeries Philippines Inc. Toledo Copper Carmen and Cebu 11.90 Holdings, Inc. will roll out P2B for its expansion Operations Lutopan province is allotting program in 2015. Platinum Group Cagdiano Nickel Surigao del Norte 11.27 P25B worth Metals Inc. province investments for /"S Coral Bay Nickel Coral Bay HPAL Palawan province 11.23 will be the P1-B bakery plant’s Corp. years for its construction at Laguna International developments in Industrial Park in Biñan, Laguna. Philex Mining Corp. Padcal Copper Benguet province 10.67 -Gold Mactan Island and Mandaue City. According to Gardenia Philippines Philippines Gold Masbate Gold Masbate province 10.20 President Simplicio P. Umali, Jr., Processing and the new plant can produce 6,000 The 13-ha. proposed loaves an hour to cater to the Taganito HPAL Nickel Taganito HPAL Surigao del Norte 9.08 development in demands of the market. Corp. province Mactan is a joint Taganito Mining Corp. Claver Nickel Surigao del Norte 8.79 venture with Another P1B is allotted for a plant province Gaisano-owned that will be located in the Visayas- Source: MGB Taft Property Mindanao area. This will support its

June 2015 9 Cebu operations and may come on “My goal is certainly to see our + bilateral trade levels grow much more quickly than we’ve seen in INTERNATIONAL/ San Miguel ventures into snacks, the past,” Canadian Minister of condiments International Trade Edward D. REGIONAL WATCH San Miguel Corp. through Purefoods Fast said. will further diversify its product PHL pushes APEC to expand portfolio by investing in new types Both countries agreed to aim on trade, investment to reduce of food-related products such as negotiating for a trade agreement poverty branded snack food and instant 6 The Philippines urged other Asia- noodles, condiments, and sauces. ~} eliminated,there will be a possible member economies to expand The company plans to acquire " trade and investment which will be " ]6+ "" in the manufacturing of such growth and poverty reduction products instead of introducing “We believe there is tremendous across the region. a new brand of its own. opportunity here to put in place a framework agreement that will “So far, San Miguel’s food business serve our respective interests and is already the biggest with P100B drive additional prosperities in our plus of sales revenue,” Purefoods countries.” Fast said. Vice Chairman Ramon S. Ang said. PHL and Canada’s bilateral trade Department Trade and Industry Pepsi-Cola PHL ventures in 2014 stood at USD 915.51M. to snack food biz (DTI) Secretary Gregory L. Domingo said APEC needs to take Pepsi-Cola Products Philippines PHL, Japan ink deal """ Inc. (PCPPI) will manufacture and for dev projects in Mindanao on being an important regional distribute PepsiCo’s popular snack The Philippines and Japan, bloc and a major player food products in the Philippines. through National Economic in international trade. This new venture targets a and Development Authority 100-M consumer market. (NEDA) Director-General FC Arsenio M. Balisacan and Japan $ “This development presents an International Cooperation Agency $+ exciting opportunity for PCPPI to "#$%%'$* ) further its vision of becoming a Representative Noriaki Niwa, premier food and beverage company signed an agreement for community in the Philippines,” PCPPI President development in Mindanao. Secretary Furqan Ahmed Syed said. Domingo said. Under the Japan-Bangsamoro PCPPI’s engagement in snack Initiatives for Reconstruction He urged economies to focus on and beverage franchise operations Development (J-BIRD), Japan developing small and medium is part of PepsiCo’s goal to 6"{`&+&#Y enterprises (SMEs) to be more participate across multiple or almost P500M to assist the globally competitive for they platforms, including manufacturing rehabilitation and construction of play an important role in poverty and go-to-market execution. farm-to-market roads in Bumbaran, alleviation and for long-term Lanao del Sur; Datu Paglas, growth of APEC economies This will also strengthen the company’s Maguindanao; and Alamada, Cotabato. and the entire region. partnership with South Korea- based multinational food and retail J-BIRD’s goal is to support O> conglomerate Lotte Group, which is the peace process between  also PCPPI’s largest shareholder. the Philippine government and the $"!# Moro Islamic Liberation Front (MILF) important parameter in pursuing by giving them assistance in the area of reconstruction and development. $ COUNTRY-TO- Secretary Domingo said. COUNTRY The J-BIRD operation has three types of assistance namely, APEC needs more women’s PHL, Canada explore bilateral FTA the technical cooperation, grant economic empowerment Canada aims to rapidly expand its aid, and loan aid that would Department of Trade and Industry bilateral trade with the Philippines greatly help the residents of the (DTI) Secretary Gregory L. through a free trade agreement (FTA). + Domingo and present Chairman of

10 Philippine Business Report #'% of the Internet and digital economy, the transparency and common (APEC) Ministers Responsible %*+#' understanding in the environmental for Trade (MRT) reiterated that (DFA) Undersecretary and goods commitments in economies’ the 21-member economies are SOM 2015 Chair Laura Q. del S+ committed to take concrete Rosario said. policies and innovative measures to further enhance women’s economic ICT is used in transporting ideas empowerment during its meeting and services in the same way ON THE held in May in Boracay, Aklan. traditional infrastructure has moved goods in the past noting that CALENDAR The ministers believed that technology makes the world smaller women’s economic empowerment and enlarges presence in the global Audit on Hazard Analysis and will be seen through improved economy, del Rosario said. Critical Control Points (HACCP) access to capital, assets and The course allows participants markets, as well as to innovation The Internet economy needs to to learn auditing, managing an and technology, educational and audit program, and conducting health services, and promoting legal and economic frameworks, HACCP system audits’ principles. women’s leadership in public and she said. The training will also guide the private sector. participants on the competence of Developments in this these HACCP system auditors. Participants “We welcome the establishment frameworks, she said, can help who would attend this course should $42#;' empower more businesses especially already have working knowledge #A the small and medium enterprises of HACCP and the documentation & (SMEs) that are trying to have involved prior to joining this course. barriers in women’s economic global identities. The course will be held on $$ 23-24 July 2015 at Philippine Trade Domingo said. APEC-CTI supports Regional Training Center (PTTC) Sen. Gil Economic Integration, SMEs Puyat Ave. cor. Roxas Blvd., They also guaranteed to integrate / Pasay City. gender considerations across Cooperation Committee on Trade and APEC activities including through Investment (APEC-CTI) discussed the Business Strategy cross-fora collaboration such as committee’s extensive on-going work Participants can learn how the “Healthy Women, Healthy program during the 2nd APEC Senior Economies” initiative. ]S"~]#}ƒ development strategies through Meetings on 15-16 May at Shangri- integrated marketing approaches Furthermore, the MRT also La’s Boracay Resort & Spa. and improved product development recognized persons with disabilities initiatives. The course targets to (PWDs) in the workforce, by /#& focus on the business strategy welcoming them to participate economies conferred about advancing development’s framework which in the workforce, and giving them the APEC Leaders’ instructions for the is relevant in today’s competitive equal access to education @/S business environment. The seminar so they can fully participate (FTAAP) realization and the APEC 6:"#$&‡ to the economy. Strategic Blueprint for Promoting at Philippine Trade Training Center Global Value Chains Development and (PTTC) Sen. Gil Puyat Ave. APEC promotes Internet economy Cooperation. cor. Roxas Blvd., Pasay City. for inclusive growth \ Also, the leaders will strengthen Economic Cooperation (APEC) ]" (SOM) and Ministers Responsible reduction commitments by end-2015. for Trade (MRT) Meeting, participants cited the Internet /j economy’s important role in to let the small and medium promoting inclusive growth. enterprises (SMEs) join in the trade S APEC members target to enable further develop the region’s trade policy and regulatory environment ]6" " integration. connectivity.

Furthermore, the CTI Friends of Philippine Postal Permit No. 504 Information and communications the Chair on Environmental Goods technology (ICT) is the freeway and Services also guaranteed

June 2015 11 GNI Growth Rate (%) GDP Growth Rate (%) 10 8 ECONOMIC 7 8 6 6 5 INDICATORS 4 4 3 2 2 1 0 0 4Q (2013) 1Q (2014) 2Q (2014) 3Q (2014) 4Q (2014) 1Q (2015) 4Q (2013)1Q (2014)2Q (2014)3Q (2014)4Q (2014)1Q (2015)

Consumer Price Index Exports Imports (In USD Billion) (2000 base year) (In USD Billion) 6000 5,400.00 141.4 5,200.00 141.3 5000 141.2 4000 5,000.00 141.1 3000 4,800.00 141 2000 4,600.00 140.9 1000 140.8 4,400.00 0 4,200.00 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15

Inflation Rate (%) Interest Rate (%) Peso per US Dollar Rate Lending Regular As of 07 July 2015 (1994 base year) 7 As of 02 July 2015 46 3 6 45 5 2 45 4 3 1 44 2 1 44 0 0 Dec-14 Feb-15 Feb-15 Mar-15 Apr-15 Jul-15 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15

Sources: Bangko Sentral ng Pilipinas (BSP) Philippine Statistics Authority (PSA) Photos: Courtesy of google.com

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