INVESTMENT CLIMATE IMPROVEMENT PROJECT NEWSCLIPS Economic Reform News from the Philippines and Elsewhere May 13, 2011 Philippines BOI investments surge 262% in Jan-AprThe New SEC chief to focus on reforms to protect Philippine Star, May 9, 2011 investors Ma. Elisa P. Osorio The Philippine Star, May 9, 2011 Zinnia B. Dela Pena MANILA, Philippines - Investments approved by the Board of Investments (BOI) surged by MANILA, Philippines - As she takes over the 262 percent to P148 billion during the first four reins of the country’s corporate watchdog, months of this year from only P41 billion a year former ACCRA lawyer Teresita Herbosa’s ago. priority will be to revitalize the Securities and Exchange Commission’s (SEC) enforcement Biomass developers plan to invest $1.3 B efforts, make it a paperless organization in five Manila Bulletin, May 11, 2011 years, and bring other changes to bolster investor Myrna M. Velasco protection. MANILA, Philippines — From the initially- Metro wage board approves P22 ECOLA hike recommended installation target of 250 The Philippine Star, May 10, 2011 megawatts, biomass power developers are Mayen Jaymalin gearing up for up to $1.3 billion (P55.9 billion) worth of investments to help shore up the MANILA, Philippines - The Department of country’s power capacity by 433 megawatts. Labor and Employment reported yesterday that the regional wage board of Metro Manila had Health for all bankable approved an additional P22 daily emergency Philippine Daily Inquirer, May 8, 2011 cost-of-living allowance (ECOLA). Fernando A. Melendres, M.D. THE INSTITUTIONALIZATION of a more rational and less burdensome healthcare system for all Filipinos is possible, and providing comprehensive and accessible health services to all Filipinos is bankable. DOF to spend $1.1-B China concessional loan on infrastructure projects Business Mirror, May 10, 2011 VG Cabuag MANILA, Philippines - The Department of Finance may use the remaining amount of the Johnson & Johnson opens finance hub for country’s concessional loans secured from China Asia-Pacific to fund some of the government’s priority Business Mirror, May 10, 2011 projects and boost the economy. Dexiene Valera JOHNSON & Johnson launched on Tuesday its $13.5-million Global Finance Service (GFS) facility in Parañaque City that will serve as the company’s central hub for financial transactions and services across the Asia-Pacific region. MNTC to raise P6.5B for road projects Business Mirror, May 11, 2011 Lenie Lectura THE Manila North Tollways Corp. (MNTC) is going to raise P6.5 billion this year to fund ongoing road projects, its president said on Monday night. Divergent Paths Philippine Daily Inquirer, May 10, 2011 Cielito F. Habito Hanjin delivers three new bulk carriers Some years back, I wrote about how the Business Mirror, May 8, 2011 economies of Thailand and the Philippines had Henry Empeno been virtual identical twins in 1970, but have since dramatically parted ways. SUBIC BAY FREEPORT—Korean shipbuilder Hanjin Heavy Industries and Construction Corp.- A question of effectiveness at NEDA Philippines delivered on Friday three capesize The Philippine Star, May 9, 2011 bulk carriers to Belgium-based shipping Roberto Romulo / Filipino World View conglomerate Compagnie Maritime Belge (CMB), sealing a business deal made in 2009 It must now be said. There are serious that pushed through despite the global economic bottlenecks in the public-private partnership crisis. program of the Aquino administration. And one laggard is the National Economic & Living on $1.25 a Day Won’t Win an S&P Development Authority (NEDA), which is Upgrade: William Pesek charged with drawing up the program, setting the Bloomberg Businessweek, May 1, 2011 rules and evaluating the key projects that will be William Pesek put up for competitive bidding among interested investors. If President Benigno Aquino wonders why the Philippines isn’t shaking its junk-bond status, a BPO firm seals $550-M US acquisition visit to the local supermarket might set him Philippine Daily Inquirer, May 10, 2011 straight. Paolo G. Montecillo Philippine port handler sees gold amid turmoil MANILA, Philippines—Genpact Ltd., a firm Google News Philippines, May 9, 2011 listed on the New York Stock Exchange, has Mynardo Macaraig completed its $550-million acquisition of Boston-based Headstrong Corp. in a bid to MANILA - Violent protests in the Middle East expand its footprint in the world’s booming may have shaken the world economy but outsourcing sector. Philippine port operator ICTSI sees opportunity amid the turmoil. Aquino urged to honor Arroyo deals with Korean shipbuilder The Philippine Daily Inquirer, May 10, 2011 LRT, MRT privatization to benefit Robert Gonzaga commuters Philippine Daily Inquirer, May 10, 2011 SUBIC BAY FREEPORT—Businessmen and Paolo G. Montecillo local leaders are urging President Aquino to honor the government’s agreements providing MANILA, Philippines—The Department of incentives to a Korean shipbuilder that the Transportation and Communications (DoTC) has previous administration had supported. assured the public that the private sector will do a better job in operating the Light Rail Transit SM group earmarks P750M to build hotel in (LRT) line 1 and Metro Rail Transit (MRT) Davao City systems—leading to better services for The Philippine Daily Inquirer, May 10, 2011 commuters. Doris C. Dumlao Exclusive: MetroPac must pay for right-of- MANILA, Philippines—(UPDATE) Tycoon way Henry Sy’s SM Investments Corp. is expanding Business Mirror, May 10, 2011 its hotel business by building a new 200-room Lenie Lectura hotel in Davao City’s Lanang district adjacent to its shopping mall. The Metro Pacific Group may have to shell out more than the P17.77 billion it has earmarked for Frank Baker to export cocowater to a plan to build a connector road between the USBusiness North Luzon and South Luzon expressways Mirror, May 10, 2011 following a legal opinion issued by the Romy Elusfa Department of Justice, which turned down the group’s proposal for the government to assume MANILA, Philippines — Wholly-owned the road right-of-way cost. Filipino firm Franklin Baker Company of the Philippines (FBCP) has asked for tax incentives Metro Pacific mulls JV for MRT-3 bid for its project as new export producer of Business World, May 10, 2011 cocowater concentrate. Kathleen A. Martin Purisima on graft raps: It's harassment METRO PACIFIC Investments Corp. (MPIC) The Philippine Star, May 10, 2011 yesterday said it was mulling a partnership with a Delon Porcalla foreign railway operator for its plans to bid for the government contract to operate two existing MANILA, Philippines - Finance Secretary Cesar trains serving Metro Manila. Purisima yesterday described as mere “harassment” the graft charges filed against him A bad FIT before the Office of the Ombudsman, ostensibly Business World, May 9, 2011 by purported smugglers affected by the Romeo Bernardo / Introspective - Opinion government’s vigorous anti-smuggling campaign. There have been numerous publicity releases from advocates and developers of renewable Auction of LRT1 extension set; Romero's bid energy projects in connection with the dumped forthcoming release of the Feed-in-Tariff (FIT) Manila Standard Today, May 10, 2011 recommendations by the National Renewable Jeremiah F. De Guzman Energy Board (NREB). From here, it will be subject to public hearings by the Energy The government will bid out the extension of Regulatory Commission. Light Rail Transit Line 1 to Cavite province early next year immediately after awarding the P15-billion operation and maintenance contract of Metro Rail Transit Line 3 and LRT Line 1 $1.1-b China concessional loans eyed Manila Standard Today, May 10, 2011 Elaine R. Alanguilan The government is studying the possibility of tapping $1.1 billion worth of concessional loans from China to bankroll Philippine infrastructure projects. Church withdraws from talks Business World, May 11, 2011 EDITORIAL - Growth without development The Philippine Star, May 10, 2011 JPDP Economic managers of the previous THE CATHOLIC Church has withdrawn from administration, who took pride in the country’s talks with Malacañang on the issue of economic performance despite unending political Reproductive Health (RH) with the perceived turbulence, acknowledged that the fruits of nonnegotiable stance of the President on the growth did not trickle down to the masses. They issue, a Palace official said yesterday. also acknowledged what many quarters have often pointed out: economic growth could not keep pace with population growth. Global / Regional Noy to issue order creating chief of staff post for Mar The Philippine Star, May 10, 2011 Coach to shift manufacturing from China Delon Porcalla Financial Times, May 12, 2011 John Gapper and Barney Jopson MANILA, Philippines - President Aquino will issue an administrative order creating the Coach, the US accessories brand, is planning to presidential chief of staff office for former Sen. shift up to half of its manufacturing out of China Mar Roxas to be accommodated in the Cabinet to escape rising labour costs at the same time as when the ban on appointing losing candidates it moves aggressively to expand its slaes in the lapses tomorrow. country. MILF peace proposal 'doable, acceptable; India struggles to cap wage inflation bishop says Financial Times, May 12, 2011 Business Mirror, May 10, 2011 James Lamont Romy Elusfa India’s industrialists are fighting a sharp rise in MANILA—The proposal that the Moro Islamic salary demands as they strive to hold on to scarce Liberation Front submitted to the government talent in the world’s fastest growing large panel is “very doable” and “acceptable” because economy after China. the MILF’s comprehensive compact does not suggest secession of a Moro-ruled region from the national government. -------------------------------------------------------------- For inquiries regarding ICIP, please contact: Investment Climate Improvement Project The American Chamber of Commerce of the Philippines, Inc. 7th Floor, Corinthian Plaza Bldg., Paseo de Roxas, Makati City Tel.: (632) 751-1495; 818-7911 to 13 / Fax: (632) 751-1496; 811-3081 Email: [email protected] Website: www.amchamphilippines.com .