PH global competitiveness basically unchanged
based on WEF data
The World Economic Forum’s (WEF) Global Competitiveness Report 2017-2018 ranked the Philippines
56th out of 137 countries from 57th out of 138 countries in 2016-2017. Its score fell marginally to 4.35
from last year’s 4.36, on a 1-7 scale indicating the worst to the best grade.
T
he score of the countries were measured based on
the 12 pillars of competitiveness (see figure on
Global Competitiveness Index). These pillars were
further divided into 3 sub-indices “to provide unique
insight into the drivers of their productivity and prosperity.”
Based on the Global Competitiveness Report 2017-2018,
Switzerland got the highest rank out of 137 countries. This was
followed by the U.S. (2nd), Singapore (3rd), Netherlands (4th), and
Germany (5th). Hong Kong (6th), Sweden (7th), United Kingdom
(8th), Japan (9th), and Finland (10th) completed the list (see table
on Global Competitiveness Report 2017-2018: Top 10 Countries).
Among the 17 East Asia and Pacific countries included in
the report, Indonesia and Brunei recorded the most significant
improvements. On the other hand, Singapore, Cambodia,
and Laos are the only countries that posted a decrease
in their standings (see table on Global Competitiveness
Report 2017-2018: East Asia and Pacific Countries). The
Philippines fell to 7th from 5th among 9 Southeast Asian states.
Despite the slight decrease in the Philippines’
overall competitiveness score, it climbed up a notch
in its ranking. According to the WEF, it only suggests
that “other countries’ scores are falling faster.”
The country performed well on some pillars –
macroeconomic environment; market size; higher
education and training; and labor market efficiency.
In terms of macroeconomic environment, although the pillar was
down to 22nd in 2017-2018 report from 20th in 2016-2017, it was
the country’s highest rank among all the pillars. This is attributed
to its favorable economic indicators (such as gross domestic
product (GDP) and foreign direct investments), country credit
rating, inflation management, government debt as a percentage
of GDP, and government budget balance as a percentage of GDP.
The market size pillar posted an increase to 27th from 31st in
last year’s report. According to Mr. Guillermo Luz, private sector
co-chairman of the National Competitiveness Council (NCC),
this is because of the improved purchasing power of consumers.
In higher education and training pillar, the country
rose to 55th from 58th due to the improvements in
higher education, including the implementation of the
K to 12 program and the technical-vocational training.
As for the labor market efficiency, it slightly increased
to 84th from 86th. “Labor is often overlooked by many
“The country cannot advance to the next stage unless our public institutions are
strengthened by addressing corruption and improving our legal
and regulatory frameworks."
GLOBAL COMPETITIVENESS INDEX
SUB-INDICES PILLARS 2016 RANKING 2017 RANKING 2016 SCORE 2017 SCORE
Basic Requirements 65 67 4.6 4.6
Institutions 91 94 3.6 3.5
Infrastructure 95 97 3.4 3.4
Macroeconomic Environment 20 22 5.9 5.8
Health and Primary Education 81 82 5.6 5.6
Efficiency Enhancers 58 61 4.2 4.3
Higher Education and Training 58 55 4.6 4.6
Goods Market Efficiency 99 103 4.1 4.0
Labor Market Efficiency 86 84 4.0 4.0
Financial Market Development 48 52 4.2 4.2
Technological Readiness 83 83 3.6 3.8 Market Size 31 27 4.9 5.0 Innovation and Sophistication Factors 53 61 3.8 3.7 Business Sophistication 52 58 4.1 4.1 Innovation 62 65 3.4 3.3
In contrast to these, the country also posted decrease
in some pillars – business sophistication; goods market
efficiency; financial market development; institutions;
innovation; infrastructure; and health and primary education.
The business sophistication pillar had the most significant
decrease with a 6-point drop to 58th from 52nd in last year’s
report. Notably, according to the report, the 5 most problematic
factors for doing business in the country are inefficient
government bureaucracy; inadequate supply of infrastructure;
corruption; tax regulations; and tax rates (see figure on Most
Problematic Factors for Doing Business in the Philippines).
In the goods market efficiency pillar, the Philippines
posted a decrease to 103rd from 99th in 2016-2017. This pillar
includes the number of procedures to start a business, in which,
the country ranked 136th, the second to the worst globally.
Also included in the pillar is the burden of custom procedures
in which the country placed 125th among 137 countries.
The financial market development pillar declined by 4 spots
to 52nd from 48th. According to Mr. Luz, this is because the
“banks' credit exposure has been placed under tight watch
despite (the) sound financial system.” Despite the decrease,
this was the country’s 3rd highest pillar based on the report.
Source: World Economic Forum’s (WEF) Global Competitiveness Report 2017-2018 & 2016-2017
The Philippines ranked 56th out of 137 countries in the World
Economic Forum’s Global Competitiveness Report 2017-2018, but
its score slightly fell to 4.35.
Among the 12 pillars of competitiveness measured in the report, the
country performed well on macroeconomic environment; market size;
COUNTRY GLOBAL RANK Switzerland 1 U.S. 2 Singapore 3 Netherlands 4 Germany 5 Hong Kong 6 Sweden 7 United Kingdom 8 Japan 9 Finland 10
GLOBAL COMPETITIVENESS REPORT 2017-2018: TOP 10 COUNTRIES
COUNTRY GLOBAL RANK
Singapore 3 Hong Kong 6 Japan 9 New Zealand 13 Taiwan 15 Australia 21 Malaysia 23 South Korea 26 China 27 Thailand 32 Indonesia 36 Brunei 46 Vietnam 55 Philippines 56 Cambodia 94 Laos 98 Mongolia 101
GLOBAL COMPETITIVENESS REPORT 2017-2018: EAST ASIA AND PACIFIC COUNTRIES
As for the institutions pillar, it went down by 3 rankings to 94th
from 91st in the last year’s report. Meanwhile, innovation was cut
to 65th from 62nd; infrastructure decreased to 97th from 95th; and
health and primary education declined slightly to 82nd from 81st.
According to Mr. Luz, to better develop competitiveness
in the country, improvements in the next 1-2 years is needed
in the areas of government bureaucracy, ports and airports,
as well as in primary education and health. This was backed
up by Makati Business Club (MBC) executive director Peter
Perfecto, explaining that “implementing the plans under
the Build, Build, Build infrastructure program is critical for
the effective functioning of a growing Philippine economy.”
Furthermore, investment in technological readiness,
higher education, innovation, and science and technology
will also be needed in the next 3-5 years, as per Mr. Luz’s
recommendation. He explained that "the way the economy
is structured is that 3-5 years from now, investors will be
thinking of technological readiness. They would ask, how
is your innovation? How is your technological readiness?"
The passage of priority bills identified by the business
sector (such as the Comprehensive Tax Reform Program)
must be given focus by the Congress, instead of the various
political maneuvers. MBC chairman Edgar Chua said "(the
country) cannot advance to the next stage unless our public
institutions are strengthened by addressing corruption
and (improving) our legal and regulatory frameworks."
Gov’t to ease foreign limits in retail trade
industry
The government is planning to decrease the foreign capital
entry requirement in the retail trade industry in order
to allow more participation from foreign traders which
would enhance further competition. This is in line with the
Duterte administration’s goal to liberalize the 11th Foreign
Investment Negative List (FINL). However, an amendment
in the Retail Trade Liberalization Act of 2000 is required,and
may be hard to get.
The National Economic Development Authority (NEDA)
is currently reviewing the final draft of the 1st FINL (labeled
as “among the most liberalized”) to be signed by President
Rodrigo Duterte. NEDA Secretary Ernesto Pernia said that one
of the changes in this year’s list is to cut the foreign capital limit
to $200,000 from the current $2.5 million. This would result in
greater participation of foreign traders in the industry, as well
as to encourage more local traders to innovate and create better
products, Sec. Pernia explained. “The purpose (of the FINL) is
to make consumers happier,” he added. However, the Congress
should be tapped to amend the Retail Trade Liberalization Act of
2000 (or Republic Act 8762) in order to liberalize the industry.
On the other hand, European Chamber of Commerce of
the Philippines (ECCP) President Guenter Taus argued that
“there shouldn’t even be a paid-up capital at all, citing other
countries where foreign investors who plan to set up their
business would only need to register their company and start
building their business from there.” In comparison with other
Note: From the list of factors, respondents to the World Economic Forum's Executive Opinion Survey were asked to select the 5 most problematic factors for doing business in their country and to rank them between 1 (most problematic) and 5. The score corresponds to the responses weighted according to their rankings.
ASEAN countries, the Philippines is noted to have one of
the highest minimum paid-up capital for foreign retailers.
In Singapore, there is no minimum capital required for any
foreign retailers while in Thailand, a minimum capital of
$598,890 is needed to own a retail business. Given this, the
easing of the restriction is believed to bring the Philippines at
par with its Southeast Asian neighbors in the retail industry.
Although foreign chambers and the country’s economic
officials had lauded the easing, the Philippine Retail Association
(PRA) stated its opposition. PRA Vice Chair Roberto Claudio
argued that “this move to liberalize the retail industry would put
small Filipino enterprises at a disadvantage, while giving foreign
firms the upper hand.” Mr. Claudio also noted that the $2.5
million threshold intends to protect the micro, small and medium
enterprises (MSMEs) in the retail sector – the most accessible
point of entry to doing business. “So, instead of helping Philippine
entrepreneurs, we give them an undue and unfair competition
which may be detrimental. One foreign retailer who would succeed
would result to one Filipino retailer who would fail,” he claimed.
Taking this into consideration, Department of Trade and
Industry (DTI) Secretary Ramon Lopez explained that the
liberalization on some industries would create opportunity
for employment as well as more outlets where SMEs
could deliver their products. He also noted that a “floor
requirement” must be established prior to the liberalization
of the retail industry in order to protect the local traders.
As to approval of the FINL, the easing of restriction
might take a while since Sec. Lopez remarked that it
“does not appear to be a priority for the legislators.” But
nonetheless, the government is also planning to introduce
the amendments in the Constitution with regard to easing
foreign ownership in selected industries by next year.
Various stakeholders stand against compressed
workweek
The Employers Confederation of the Philippines (ECOP),
the Philippines Exporters Confederation Inc. (PhilExport),
as well as the Tripartite Industry Peace Council (TIPC) have
expressed their opposition towards the newly approved House
Bill (HB) 6152. The stakeholders argued that this would
sacrifice workers’ health rather than improve productivity.
Last August, the House of Representatives passed on
3rd and final reading HB 6152 or “An Act Increasing The
Normal Work Hours Per Day Under a Compressed Work Week
Scheme.” The bill intends to reduce the number of workdays
(from 5-6 days a week to 4 days a week) while increasing
the number of working hours (up to 12 hours) per day to
encourage balanced work life; business competitiveness; work
efficiency; labor productivity and cost efficiency; and to give
employers the option to apply the appropriate flexibility in
fixing hours of work in line with their business environment.
HB 6152 was introduced by 25 legislators (see House Bill 6152
Authors). Under the bill, employees are also entitled to obtain
overtime pay if they have worked for more than 48 hours, as well
as up to 3 days off from work every week. In addition, the DOLE
is mandated to issue the implementing rules and regulations.
Baguio Representative Mark Go, one of the authors of the bill,
stated “this won’t penalize companies who will not implement
a 4-day work week since this is only optional.” Meanwhile, in
the Senate, a similar bill (Senate Bill 1571) has been filed by
Senator Joel Villanueva but it is still pending at the Committee
on Labor, Employment and Human Resources Development.
ECOP, PhilExport, as well as the TIPC led by DOLE
have expressed their opposition to HB 6152. DOLE
Undersecretary Dominador Say argued that no legislation
is needed for a compressed workweek as the DOLE could
impose several mechanisms such as issuing department
orders similar to the objective of the bill. USec. Say also
enumerated the following consequences if the law is pursued:
One of the changes in this year’s FINL is to cut the foreign capital
limit to $200,000 from the current $2.5 million.
This would result to a greater participation of foreign traders in the industry, as
well as to encourage more local traders to innovate and create better products.
However, PRA Vice Chair Roberto Claudio argued that the $2.5 million threshold
intends to protect the MSMEs in the retail sector.
Upon approval of the FINL, the easing of
restriction might take a while since Sec. Lopez
remarked that it “does not appear to be a
priority for the legislators.”
House Bill 6152 intends to reduce the number of workdays while
increasing the number of working hours per day.
HOUSE BILL 6152 AUTHORS
Baguio City District Rep. Mark Go
Ilocos Sur 1st District Rep. Deogracias Victor Savellano
Apayao Rep. Eleanor Bulut-Begtang
Isabela 4th District Rep. Ma. Lourdes Aggabao
Pangasinan 1st District Rep. Jesus Celeste
Pangasinan 4th District Rep. Christopher De Venecia
Ilocos Norte 1st District Rep. Rodolfo Farinas
Benguet Rep. Ronald Cosalan Isabela 3rd District Rep. Napoleon Dy
Pangasinan 2nd District Rep. Leopoldo Bataoil
Cavite 2nd District Rep. Strike Revilla
Pangasinan 6th District Rep. Marilyn Primicias-Agabas
Nueva Vizcaya Rep. Luisa Cuaresma Nueva Ecija 2nd District Rep. Micaela Violago
Cagayan 3rd District Rep. Randolph Ting
ANAKAPAWIS Party List Rep. Ariel Casilao AASENSO Party List Rep. Teodoro Montoro
Negros Occidental 2nd District Rep. Leo Rafael Cueva
Northern Samar 2nd District Rep. Edwin Ong
Leyte 3rd District Rep. Vicente Veloso
Albay 1st District Rep. Edcel Lagman
Misamis Oriental 1st District Rep. Peter Unabia
Leyte 1st District Rep. Yedda Marie Romualdez
Batangas 6th District Rep. Vilma Santos-Recto
A TEACHER Party List Rep. Julieta Cortuna
h
Add risk to employees that are not organized as it could be
forcibly implemented by unscrupulous employers since their
workers do not have the power of representation;
h
Lay-off of workers, such as those in a 3rd shift since the first 2
shifts with extended working hours can already cover for them;
h
Decline in work productivity and efficiency due to the expected
fatigue factor; and
h
Greater threats to workers’ health as they could be prone to
hypertension, stress, over fatigue, and injuries, among others.
Furthermore, ECOP chairman Donald Dee cited a 4-day
work week experiment conducted by ECOP members 10 years
ago. Wherein from the experiment, they had encountered
workers who were fainting due to fatigue resulting in
“negative effect on work productivity and efficiency.”
Concurring with ECOP and DOLE’s position, TPIC, a
council composed of representatives from various companies and
labor unions, stated that the worldwide trend is gearing towards
shorter number of working hours rather than prolonging them.
In relation with ECOP’s experiment, TPIC noted it sacrifices the
employees’ health rather than increasing productivity. They also
argued this would decrease the workers’ family time, taking into
consideration the worsening traffic situation in Metro Manila.
PhilExport also stand against the bill remarking that “the
status quo (should) be maintained by leaving it to employers
to determine the best working hours for their respective
companies, subject to their particular needs, location and
employee situations.” The stakeholders also noted that the
compressed workweek is not feasible for work (such as in
construction, manufacturing, banking and logistics industries)
that requires heavy physical work and strict office hours.
Sluggish PH auto sales in August 2017
Automotive sales posted an increase by 8.7% to 35,309 units
in August 2017 from 32,472 units in August 2016, according
to the latest report jointly released by the Chamber of
Automotive Manufacturers of the Philippines Inc. (CAMPI)
and Truck Manufacturers Association (TMA). Despite the
increase in sales, this is the slowest in 4 months since the
recorded 29,038 units sold in April 2017.
The sluggish sales were due to the recent restriction by
the Land Transportation Franchising and Regulatory Board
(LTFRB) on Transport Network Companies (TNCs) Grab
and Uber. CAMPI and TMA officials also attributed the
sales to the “seasonal decline,” as well to the traditionally
low sales for the month of August due to the “ghost month”
phenomenon – wherein buyers postpone their business
decisions. Hence, the 35,309 units of automotive sales in
August 2017 were 4.4% lower than the 36,951 units sold in July.
For August 2017 alone, the sale of passenger cars
increased by only 1.1% to 11,258 units from the 11,136
units sold in August 2016. Meanwhile, commercial
vehicle (CV) sales rose to 24,051 units, 12.7% higher
compared to 21,336 units sold in the same month last year.
Among the CV sub-segments, the light commercial
vehicles (LCV) were the lead, comprising 64.44% of
CV sales with 15,499 units sold, 3.3% higher than July
2017’s 15,000 units sold. On the other hand, the Asian
utility vehicle (AUV/MPV) sales posted a decrease by
11.6% to 6,864 units compared to last month’s 7,764 units.
Truck and bus sales continued to post positive figures. Light
truck sales rose by 22.8% to 1,041 units from 848 units in July
2017. In addition, Category 4 heavy duty truck and bus sales
also reported an increase to 404 units, 3.3% higher than last
month’s 418 units, while category 5 heavy duty truck and bus
sales was up by 10.5% to 243 units from last month’s 220 units.
AUGUST 2016 AUGUST 2017 % CHANGE AUGUST 2016JANUARY- AUGUST 2017JANUARY- % CHANGE
Total Industry 32,472 35,309 8.7% 229,919 268,424 16.7%
Passenger Cars 11,136 11,258 1.1% 84,926 91,139 7.3%
Commercial Vehicles 21,336 24,051 12.7% 144,993 177,285 22.3%
For the first 8 months of 2017, total vehicle sales remained
optimistic with 16.7% increase to 268,424 units from last
year’s 229,919 units. Passenger car sales also grew by 7.3%
to 91,139 units from 84,926 units, while CV sales posted
an increase by 22.3% to 177,285 units from 144,993 units.
As for the top performing manufacturers for January to August
2017, Toyota Motor Philippines Corp. had the biggest market share
with 44.1% share, followed by Mitsubishi Motors Philippines
Corp. with 17.7%. Ford Motor Company Philippines Inc. ranked
3rd with 8.5%, Isuzu Philippines Corp. finished 4th with 6.8%,
and Honda Cars Philippines Inc. trailed behind in 5th with 6.7%.
“August sales result remained stable, driven by the good
sales performance of key models from major manufacturers.
In addition to this is the competitive promotional support and
marketing activities,” CAMPI president Rommel Gutierrez
said. CAMPI still expects total vehicle sales to surpass its
2017 target of 430,000-450,000 units despite the downturn
of sales in August. This is based on the hopes of continued
motorization in the country; attractive financing options for car
buyers; and a probable boost in sales as people will hasten to
buy cars in order to avoid the proposed hike in auto excise tax
under the Tax Reform for Acceleration and Inclusion (TRAIN).
The Philippine automotive sales in August 2017 reached 35,309
units. This is the slowest in 4 months since 29,038 units
sold in April 2017.
The slowdown of sales was due to the recent restriction
by the LTFRB on TNCs, as well as to the traditionally low sales
due to the “ghost month” phenomenon.
CAMPI still expects total vehicle sales to surpass its 2017 target of
430,000-450,000 units despite the turnout of sales in August.
MINING, OIL, & GAS
PH 1st country to meet global extractives
transparency standard
The Philippines was cited as the 1st country to meet all
the requirements in the governance standards set forth by
the Extractive Industries Transparency Initiative (EITI)
for the extractive sector – the oil, gas, and mining sectors.
The country obtained a “satisfactory progress” rating in
implementing the 2016 EITI standard
1.
According to the Validation report of the EITI, the
Philippines exceeded the minimum requirements set
by the EITI standard. These areas include disclosing
information on the legal and fiscal framework, disclosing
contracts, revenue management, revenue expenditure and
social expenditures (see figure on PH EITI Requirements).
The report also stated that the engagement of the PH-EITI
2in formulating recommendations for reform and driving these
proposals in the sector, including the distribution of mining
revenue from central to local levels and revenue management
within local governments, “has ensured the EITI has had tangible
impact, particularly in terms of reform of government systems.”
The EITI Board noted that, “the Philippines presents a dynamic
case of EITI implementation, with its fast-paced and innovative
multi-stakeholder group (MSG) engaging in strategic discussions
linking the EITI to national priorities for the extractive sector.”
The EITI Board also noted that the Philippines has achieved
the broader objective of revenue transparency despite challenges
in covering the coal sector, where further work is needed to ensure
full transparency. EITI Chairman Fredrik Reinfeldt said meeting
all the EITI requirements was a milestone for the EITI and, more
importantly, a significant achievement for all the stakeholders
in the Philippines that have supported EITI implementation.
The Philippines underwent the EITI validation process
beginning January this year. Last May 2017, the country earned
several citations for best practices in the implementation of
global standards on the management of mining resources
during the 37th board meeting of the EITI in Oslo,
Norway (see PH recognized for best mining practices).
The Philippines will be revalidated by the EITI in 2020.
Meanwhile, DOF Assistant Secretary and PH-EITI Chair,
Teresa Habitan, said that ‘’working through differences but with
a singular goal in mind has been the framework of PH-EITI. All
stakeholders in the multi-stakeholder group value transparency
in the manner by which the development and management of the
extractive sector must move forward. What has been validated
for the Philippines is the perseverance of all stakeholders to
do what is right and what is best not only for the extractive
industries but more importantly for the country and our people.”
The Chamber of Mines of the Philippines (COMP) also
lauded the EITI decision, saying the industry has worked
hard over the past years. “This validation of our efforts at
transparency reporting could not have come at a better time.
The mining industry is under strict scrutiny by government, and
this recognition that the mining industry is fully transparent in
its payment and reporting of revenues to government will be of
great help,” COMP executive director Ronald Recidoro said.
All stakeholders in the multi-stakeholder group value transparency
in the manner by which the development and management of the
extractive sector must move forward.
The country obtained a “satisfactory progress” rating in
implementing the 2016 EITI standard.
1The 2016 EITI Standard provides a set of requirements for data disclosure or transparency in the
industry, from the awarding of licenses and contracts to monitoring production, revenue collection, and allocation, as well as socio-economic contribution of the industry. EITI is being implemented worldwide by 52 countries to date, including the Philippines, in a bid to be found compliant with the EITI Standard after a rigorous Validation process.
2The Philippines established the Philippine Extractive Industries Transparency Initiative (PH-EITI)
3
PH EITI REQUIRMENTS
COMP chairman Gerard Brimo added that the cooperation
shown by all groups in the multi-stakeholder group, the
leadership of the DOF and the dedication of the National
Secretariat have all contributed to this successful outcome.
Given this, there are legislative bills filed in the
House of Representatives (House Bill No. 4116) and
in the Senate (Senate Bill No. 1125) to institutionalize
the PH-EITI. As of February 2017, the 2 bills are being
considered at the committee-level in each of the 2 houses.
The recognition of EITI in the Philippines shows that the
country is ensuring its transparency and accountability in the
mining sector and its compliance to global standards. This
sends a positive signal in encouraging investors and current
players to pursue further expansion plans. If the Duterte
administration prioritizes institutionalizing the PH-EITI,
it will be a strong indication that the current government
is committed to full transparency and accountability.
Suspension order vs Lepanto Mining lifted
The Office of the President (OP) has lifted the 8-month
suspension order on Lepanto Consolidated Mining Company.
The mining firm was among the 27 mining firms that has
been ordered closed or suspended by former Department
of Environment and Natural Resources (DENR) Secretary
Gina Lopez in February 2017 in a crackdown against illegal
mining in the country.
Lepanto said that it has received the OP’s decision dated
Oct. 12 wherein the firm was given 6 months to implement
appropriate mitigating measures and was ordered to pay fines
of P27,275 to the Mines and Geosciences Bureau (MGB) and
P100,000 to the Environmental Management Bureau (EMB).
The MGB and EMB are also directed to conduct a monthly
inspection on Lepanto’s compliance with the directives,
as well as submit a monthly report to the OP regarding the
progress of the corrective measures. The OP decision also
stated that in the event the company fail to comply with the
above conditions, the suspension order will be reinstated.
Lepanto communication head Salvador Mendizabal
said it was “considering its options vis-a-vis the decision.”
The company has filed its notice of appeal before the OP
last February 14 — the same day it received the DENR’s
suspension order — and appeal memorandum on March 15.
The mining firm was suspended as the DENR audit team
found Lepanto’s mine in northern Benguet province “has
unregistered treatment, storage and disposal facility for the
detoxification process for the mine tailings". Four other mining
firms were also suspended on the grounds that its mining
sites were situated inside a watershed. These were the Berong
Nickel Corp., CitiNickel Mines and Development Corp.,
OceanaGold Phils., and Strong Built Mining Development Corp.
Meanwhile, the Chamber of Mines of the Philippines (COMP)
welcomed OP’s favorable response to one of its members, saying
the suspension order issued by Ms. Lopez really had no basis.
“This sends a positive signal that the government is starting to act
on these pending matters which have largely caused uncertainties
in the industry,” COMP executive director Ronald Recidoro said.
The Office of the President’s decision came before the
results of a separate review being conducted by the Mining
Industry Coordinating Council (MICC) on the country’s
existing mines. DENR Secretary Roy Cimatu said his
policy direction would heavily rely on the findings of MICC
that are expected to be completed by the end of the year.
The lifting of the suspension will have a positive impact
in the mining sector particularly those large-scale mining
operations affected by former DENR Sec. Lopez’s suspension.
Mining firms would definitely show considerable interest
in the sector, if the government continues to advocate
sustainable and long-term solutions to the sector. Prolonged
suspension and closure of mining operations in the country
would strain the mining firms’ potential investments, as
well as affect the sector’s growth and production capability.
I.T. UPDATE
This sends a positive signal that the government is starting
to act on these pending matters which have largely caused
uncertainties in the industry.
BPO investments slowdown in 1H2017
New investment pledges in the Information Technology
and Business Process Management (IT-BPM) sector in the
Philippines continued to decline in the 1st half of 2017, due
to the current move of the government to modify the sector’s
tax policy, as well as the looming uncertainty on U.S. policy.
According to the latest data from the Philippine Statistics
Authority (PSA), investment commitments in the business
process outsourcing (BPO) sector totaled P9.08 billion in the
1st semester of 2017, a 28% drop from P12.6 billion in the same
period last year. For the 2Q2017 alone, IT investments reached
P4.9 billion, falling 22% from P6.27 billion registered in 2Q2016.
Notably, the growth rate of BPO pledges has been declining
since 3Q2016 (see figure on ICT Investments), despite the 35%
increase in pledges during 2Q2016. In 2016, IT investments posted
a 22.6% decline to P30.74 billion from P39.73 billion in 2015.
Department of Trade and Industry (DTI) Secretary Ramon
Lopez said the IT-BPM firms perhaps are just taking time in
due diligence as well as a wait-and-see approach on the U.S.
policy for companies locating offshore. The international
perception of the Philippines engendered by the President's
outspokenness would also have had an impact. Sec. Lopez
added that there were still “anchor accounts expanding using
innovative operating models,” noting that they were retooling
the workforce of the IT-BPM industry to use new technology
such as systems equipped with artificial intelligence (AI).
According to the Investment Promotion Agency (IPA),
IT investment pledges have also been sluggish under the
Philippine Economic Zone Authority (PEZA). From January
to June 2017 period, BPO investments posted a 33% drop
to P8.5 billion in 1H2017 from P12 billion in 1H2016,
while IT investments under the Board on Investments (BOI)
registered a 285% increase to P67.9 million from 17.6
million. Out of all the IPAs, PEZA accounted for the biggest
share in pledges or more than 93% of overall commitments
in the 1st semester of this year (see table on Total Approved
Foreign Investments in the ICT Industry.)
h
The IT-BPM sector attributed the weak BPO investments to
the following factors:
h
U.S. President Donald Trump’s America First policy;
h
Security concerns due to the Duterte administration’s war
on drugs;
h
Martial law in Mindanao;
h
The slow presidential proclamation of new PEZA-registered
economic zones; and
h
The uncertainty surrounding the comprehensive tax reform
program of the Duterte administration that comprises 5
packages that include proposals to broaden the base of the
value-added tax and to rationalize fiscal incentives.
1Q2016
2Q2016
3Q2016
4Q2016
1Q2017
2Q2017
Series 1 6,340.10
6,270.10
2,802.11
15,332.60
4,184.70
4,896.50
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
18,000.00
ICT Investments 1Q2016-2Q2017
The growth rate of BPO pledges has been declining since 3Q2016.
IT investment pledges have been also sluggish under the Philippine
Economic Zone Authority (PEZA).
for the industry. Mr. Untal added that any reduction in the
current tax perks would dampen the country’s competitiveness
compared to rival markets, which, in their own capacities, are
aggressively working to attract more foreign direct investments.
The Senate Tax Reform for Acceleration and Inclusion
(TRAIN) bill version or Senate Bill (SB) 1592 ensured that
the zero-rating would not be removed through the insertion of
specific provisions relating to sales to entities registered with the
ecozones and freeport zone authorities. Senator Juan Edgardo
“Sonny” Angara explained that foreign investments are crucial
in sustaining the country's economic growth and in providing
jobs for millions of Filipinos. "We value such contribution
that's why the government has been very supportive of the
industry by granting them various incentives. We will ensure that
such incentives will remain intact,” Sen. Angara emphasized.
The government’s intent to rationalize the fiscal incentives for
BPO companies would weaken the country’s competitiveness as
one of the most attractive IT sites globally, as well as hinder the
sector’s growth. Prospective investors would possibly put on hold
its expansion plans in the country and could shift investments to
other destinations that do prioritize BPO as an industry driver.
AGENCY 1H2017 1H2016 GROWTH RATE
AFAB 240.8 6.6 ** BOI 67.9 17.6 285.0 BOI ARMM - - -CDC 141.2 52.4 169.6 CEZA 26.2 103.3 -74.6 PEZA 8,055.2 11,953.6 -32.6 SBMA - 0.9 -TOTAL 8,531.3 12,134.5 -29.7
TOTAL APPROVED FOREIGN INVESTMENTS IN THE ICT INDUSTRY (IN MILLION PESOS)
Source: Philippine Statistics Authority (PSA)
Sources of basic data: Authority of the Freeport Area of Bataan (AFAB), Board of Investments (BOI), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), Clark Development Corporation (CDC), Cagayan Economic Zone Authority (CEZA), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA).
LIST OF BOI-REGISTERED PROJECTS - OCTOBER 2017
INDUSTRY ACTIVITY (IN PHP MILLION)PROJECT COST LOCAL/FOREIGNEQUITY AGRICULTURE, FORESTRY, AND FISHERY
Exclusive Al Rubi, Inc. Producer of broilers (Contract Growing Scheme) 72.00 100% Filipino CONSTRUCTION
SMC Mass Railway Transit 7 Inc. Public Private Partnership (PPP) Project (MRT Line 7 Project) - North Avenue, Quezon City to San Jose del Monte, Bulacan 79,191.02 100% Filipino Eagle Cement Corporation Producer of cement (Line 3) located in Brgy. Akle, San Ildefonso, Bulacan 6,500.00 100% Filipino South Western Cement Corp. Producer of cement in Brgy. Looc, Malabuyoc, Cebu 12,500.00 100% Filipino ELECTRICITY, WATER, AND GAS
Hedcor, Inc. Renewable energy developer of hydropower resources (1.2 MW Irisan 3 Hydroelectric Power Project) in Benguet - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (0.3 MW Talomo2b Hydroelectric Power Projects) in Tugbok, Davao City - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (0.65 MW Talomo 2a Hydroelectric Power Projects) in Tugbok, Davao City - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (8 MW Ampohaw Hydroelectric Power Projects) in Sablan, Benguet 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (1.92 MW Talomo 3 Hydroelectric Power Projects) in Pequeno, Davao City - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (4.5 MW Bineng 3 Hydroelectric Power Projects) in La Trinidad, Benguet - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (0.6 MW Talomo 2 Hydroelectric Power Projects) in Tugbok, Davao City - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (2.4MW Salangan Hydroelectric Power Projects) in Sal-Angan, Itogon, Benguet - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (2.4 MW Lower Labay Hydroelectric Power Projects) in Bakun, Benguet - 100% Filipino
Hedcor, Inc. Renewable energy developer of hydropower resources (3.6 MW Lon-oy Hydroelectric Power Projects) in Bakun, Benguet - 100% Filipino Solar Philippines Commercial Rooftop Projects,
Inc. Renewable energy developer of solar energy resources (100 MW - Medellin Solar Power Project) in Medellin, Cebu 5,975.77 100% Filipino Solar Philippines Commercial Rooftop Projects,
Inc. Renewable energy developer of solar energy resources (100 MW - Iba-Palauig Solar Power Project) in Iba and Palauig, Zambales 5,975.77 100% Filipino Alson's Energy Development Corporation Renewable energy developer of hydropower energy resources (15.1MW Siguil Hydroelectric Power Projects) in Maasim, Sarangani City 3,524.15 100% Filipino
FOOD AND BEVERAGE MANUFACTURES
Universal Robina Corporation Producer of raw sugar and its by-products Brgy. Caloocan, Balayan, Batangas 610.60 67% Filipino 33% Various
HOTEL, RESTAURANT, AND LEISURE SERVICES
Capitol Central Hotel Ventures, Inc. Operator of tourist accommodation facility (Seda Capitol Central - Lacson St. cor. North Capitol Road, Bacolod City) 661.90 100% Filipino
888 Subic Inc. Operator of tourist accommodation facility (Central Park Reef Resort) located at 888 National Highway, Barrio Barretto, Olongapo City 197.00 34% American66% Filipino
UC-1 Corporation Operator of theme park (Seven Seas Waterpark and Resort) in Barra, Opol, Misamis Oriental 267.00 100% Filipino MISCELLANEOUS MANUFACTURES
Liciada Innovations, Inc. Producer of fortified compressed soil (FCS) bricks in No. 9024 Brgy. Liciada, Bustos, Bulacan 41.69 100% Filipino OFFSHORING AND OUTSOURCING
Cloudengine Room, Inc. Services export provider (BPO - Remote staffing services) 36.43 99.95% British Virgin Islander PAPER AND PARE PRODUCTS
PETROLEUM PRODUCTS
Phoenix Petroleum Phils., Inc. Bulk marketing of petroleum products (Tayud, Consolacion, Cebu Oil Depot with 16.70 Million liters combined capacity of 6 storage tanks in
Consolacion, Cebu 470.00
91% Filipino 9% British UK REAL ESTATE AND PROPERTY DEVELOPMENT
8990 Housing Development Corporation Developer of economic and low-cost housing project (Deca Homes Mulig - Horizontal) in Brgy. Mulig, Toril District, Davao City 763.15 100% Filipino
Bleaushea Properties Corporation Developer of economic and low-cost housing project (Torie Place - Horizontal) in Brgy. Lambakin, Marilao, Bulacan 267.50 100% Filipino
Micara Land Inc. Developer of economic and low-cost housing project (Micara Estates - Tanza Phase 1) in Brgy. Sahud Ulan, Tanza, Cavite 162.58 100% Filipino
Micara Land Inc. Developer of economic and low-cost housing project (Micara Estates - Tanza Phase 2) in Brgy. Sahud Ulan, Tanza, Cavite 174.65 100% Filipino
Cumberland Development Corporation Developer of economic and low-cost housing project (Mondello Homes - Horizontal) in Brgy. Guitnang Bayan I, San Mateo, Rizal 255.35 20% Chinese80% Filipino
Tanza Properties II, Inc. Developer of economic and low-cost housing project (Prima Clove Tanza Phase 2A - Horizontal) in Brgy. Tanuan, Tanza, Cavite 431.12 100% Filipino
Tanza Properties II, Inc. Developer of economic and low-cost housing project (Prima Clove Tanza Phase 2B - Horiozntal) in Brgy. Tanauan, Tanza, Cavite 478.06 100% Filipino
P.A. Alvarez Properties and Development
Corporation Developer of economic and low-cost housing project (St. Joseph Village 7 Phase 5-A - Horizontal) in Brgy. Marinig, Cabuyao, Laguna 88.00 5% Canadian95% Filipino STORAGE AND WAREHOUSING
ECA Resources, Inc. Operator of cold storage facilities in Brgy. Tambler, General Santos City 110.00 100% Filipino South Pacific Inc. investments through the construction of Calaca, Batangas LPG Terminal Phase 2 with 10,000 MT LPG Storage Tanks 1,763.00 100% Filipino
PEZA APPROVED PROJECTS -2nd QUARTER 2017
INDUSTRY ACTIVITY LOCAL/FOREIGNEQUITY ZONE APPAREL AND TEXTILE MANUFACTURES
DCT MFG. INT'L. INC. Manufacture of men's and women's underwear such as brassieres and panties 98% - Korean 2% - Filipino Golden Mile Business Park - SEZ AUTOMOTIVE TRADE
GOSHI PHILIPPINES, INCORPORATED Assembly of K89 muffler 100% - Japanese Laguna Technopark - SEZ
CHEMICAL AND CHEMICAL PRODUCTS
PHILI BIO PEAT, INC. Manufacture and export of coco fiber and peat products 28% - Emirati 58% - Syrian
14% - Filipino Gensan Economic Zone
ELECTRICITY, WATER, AND GAS
FDC RETAIL ELECTRICITY SALES
CORPORATION Economic Zone Utilities Enterprise-Retail Electricity Supplier (RES) 100% - Filipino Northgate Cyberzone SARANGANI ENERGY CORPORATION Coal-fired power plant facilities by another 105MW 100% - Filipino Kamanga Agro-Industrial Economic Zone
ELECTRONICS
AM SWISS MICROTEC INC. Manufacture and processing of micro electro-mechanical components 99.94% - Korean Mactan Economic Zone DECA TECHNOLOGIES INC. (PHIL. BRANCH) Engage in M-Series system for advanced semiconductor packaging technology 100% - American Laguna Technopark - SEZ EMS COMPONENTS ASSEMBLY, INC. Manufacture, repair and rework of other related gadgets of LED Luminaires 100% - Filipino Laguna Technopark - SEZ
GLOBAL MOULDING TECHNOLOGY, INC. Assembly of mobile communication equipment; manufacture of radio transceivers; pager units; and assembly and repair of
DC-DC converter 99.99% - Japanese Cavite Economic Zone HARVESTAR TECHNOLOGIES INC. Remanufacture, repair, assembly, test and export of various wireless mobile devices, products, components, systems and
related accessories 100% - Hong Kong Light Industry & Science Park III - SEZ IONICS EMS, INC. Manufacture of LCD and touch panel for mobile phone 98.12% - Filipino Light Industry & Science Park I - SEZ KYUNG IL MANUFACTURING PHILS. INC. Engage in assembly, manufacturing of transformer, AC DC reactor, inductor, etc. 99.89% - Korean Angeles Industrial Park - SEZ OPTOWAVE MANUFACTURING PHILIPPINES
INC. Manufacture of computer periphiral 99.8% - Korean Cavite Economic Zone PTW PHILIPPINES PRIVATE CO. LTD. Engage in repair of semiconductor equipment and parts and maintenance services 99.9% - Singaporean Pampanga Economic Zone STMICROELECTRONICS, INC. B800 project 99.99% - Dutch Light Industry & Science Park II - SEZ STMICROELECTRONICS, INC. Manufacture of DAM and Fill - D18 99.99% - Dutch Light Industry & Science Park II - SEZ TAOLIGHT PHILIPPINES INC. Manufacture of LED Lights, Lighting Luminaires and other related products 99.90% - Hong Kong Laguna Technopark - SEZ TSUKIDEN ELECTRONICS PHILIPPINES, INC. Engage in Ink jet printer control board assembly 99.99% - Japanese Laguna Technopark - SEZ
FOOD AND BEVERAGE MANUFACTURES
FULL CIRCLE CRAFT DISTILLERS CO., INC. Engage in the production of high quality artisanal spirits 100% - Filipino DASOLand: A Family Adventure and Leisure Park MACHINERY AND EQUIPMENT
JIO MHW GLOBAL CHANNEL
MANUFACTURING CORP. Fabrication of metal parts and assembly & development of automated machines 99% - Korean 1% - Filipino People's Technology Complex - SEZ
METAL INDUSTRIES
ASAM INDUSTRIES INC. Manufacture of CNC machined and fabricated metal parts 92% - Taiwanese 8% - Chinese Carmelray Industrial Park I - SEZ Bessup, Inc. Fabrication of heat transfer equipment 99.99% - Singaporean Hermosa Ecozone Industrial Park GC GENTECH METAL FABRICATION INC. Fabrication of pressure vessel and accessories, piping, machining semicon parts and tooling parts 100% - Filipino Filinvest Technology Park Calamba - SEZ GLOBAL MOULDING TECHNOLOGY, INC. Manufacture of snap ring plier for electronic mechanical parts 99.99% - Japanese Cavite Economic Zone GLOBAL MOULDING TECHNOLOGY, INC. Fabrication of jigs 99.99% - Japanese Cavite Economic Zone LU JUN PRECISION INDUSTRIAL CORP. Manufacture of precision metal work pieces and metal parts 100% - Taiwanese Golden Mile Business Park - SEZ MKP, INC. Manufacture of fabricated metal and aluminum parts 99.99% - Japanese Cavite Economic Zone THREE BRIGHT SUN DIAMOND CORPORATION Engage in component assembly of bill dispensing unit for automated teller machines (ATM) 99.99% - Japanese Laguna Technopark - SEZ
MISCELLANEOUS MANUFACTURES SQUAREONE MANUFACTURING
CORPORATION Manufacture of handcrafted ceramic tiles 60% - Filipino 40% - Italian Laguna Technopark - SEZ
OFFSHORING AND OUTSOURCING
ACCENTURE, INC. IT security and IT service management services 99.99% - Dutch Uptown Bonifacio ALORICA PHILIPPINES, INC. Call center operations 99.99% - American SM City Lipa ARVATO CORP. Business process outsourcing (BPO) services and call center operations 99.99% - German Northgate Cyberzone CATAPULT INTERNATIONAL, LLC PHIL.
BRANCH OFFICE Software development, global support and managed services 100% - American Norkis Cyberpark CITIGROUP BUSINESS PROCESS SOLUTIONS
PTE.LTD. IT-enabled services, encompassing call centers, data encoding, transcribing and processing 100% - Singaporean W North COGNIZANT TECHNOLOGY SOLUTIONS
PHILIPPINES, INC. Customer services, by handling inbound/outbound calls, IT infrastructure services 99.98% - American McKinley Hill Cyberpark CONCENTRIX SERVICES CORPORATION Business process outsourcing (BPO) services and call center operations 100% - British Virgin Islander Bridgetowne DIAGEO ASIA PACIFIC SHARED SERVICES
CENTRE LIMITED, INC. Business process services (BPO) services 99.99% - Dutch McKinley West DIAGEO ASIA PACIFIC SHARED SERVICES
CENTRE LIMITED, INC. Business process services (BPO) services 99.99% - Dutch Uptown Bonifacio DOVER BUSINESS SERVICES PHILIPPINES
CORPORATION Business process services (BPO) services 99.99% - Dutch Cebu I.T. Park
DWG INK INTERNATIONAL CORPORATION Concept sketches and renderings and development drawings; CAD/REVIT drawing documents; CGI or 3D renderings; and VR and animation production
44% - Filipino 28% - Singaporean
28% - British Summit One Office Tower
EMAPTA VERSATILE SERVICES INC. Business process outsourcing (BPO) services using e-commerce 96% - Australian 3% - Filipino
1% - Japanese Eastwood City Cyberpark ESSILOR SHARED SERVICES PHILIPPINES
INCORPORATED Software development and application services 99.96% - Dutch One Global Place ESSILOR SHARED SERVICES PHILIPPINES
INCORPORATED Software development and application services 99.96% - Dutch Capella IT Center FPT SOFTWARE PHILIPPINES CORP. Managed services for Helpdesk support for Customer Solutions 99.99% - Vietnamese Cebu I.T. Park HARBOUR IT ASIA - PHILIPPINE BRANCH Software development, web-based creative development and IT administration services 100% - Australian E-Square I.T. Park KNOWLES ELECTRONICS (PHILIPPINES)
CORPORATION Business process outsourcing (BPO) services using e-commerce 99.99% - Singaporean Cebu Light Industrial Park - SEZ KORN FERRY FUTURESTEP (THE
PHILIPPINES) INC. Business process services (BPO) services 99.99% - Singaporean BGC Corporate Center MICROSOURCING PHILIPPINES INC. Business process services (BPO) services 99.99% - Hong Kong Eastwood City Cyberpark OMEGA HEALTHCARE MANAGEMENT
SERVICES INC. Business process services (BPO) services 99.99% - American Avenir PMAXGLOBAL PHILIPPINE BRANCH Business process services (BPO) services 100% - American Robinsons Galleria Cebu REST SOLUTION CORP. Call center operations 60% - Filipino 40% - French Northgate Cyberzone RMS COLLECT PHILS. INC. Business process services (BPO) services 99.99% - American Two Sanparq S&P GLOBAL PHILIPPINES INC. Business process outsourcing (BPO) services and call center operations 99.99% - American 6750 Ayala Avenue Bldg. S&P GLOBAL PHILIPPINES INC. Business process outsourcing (BPO) services and call center operations 99.99% - American MSE Center SC RESERVATIONS (PHILIPPINES), INC. Partial transfer of operations (BPO services) 100% - American V-Corporate Centre SUPERGENE GLOBAL SERVICES, INC. BPO-digital content production outsourcing services 99.99% - Korean Robinsons-Equitable Tower SYKES ASIA INC. Call center operations 99.993% - Dutch Robinsons Galleria Cebu SYNCHRONY GLOBAL SERVICES PHILIPPINES,
INC. Call center operations 99.99% - American CBP-IT Park
TAKENAKA CORPORATION PHILIPPINE CAD
CENTER Engage in preparation of building information modeling, 2D & 3D shopdrawing 100% - Japanese The Enterprise Center TECHLOG CENTER PHILIPPINES. Business process services (BPO) services 100% - American Lakeside Evozone TERADYNE PHILIPPINES LTD... Business process services (BPO) services 100% - American Cebu Light Industrial Park - SEZ TFI SOLUTIONS PHILIPPINES INC. Business process services (BPO) services 100% - Filipino Burgundy Corporate Tower WESERV SYSTEMS INTERNATIONAL, INC. Software development services 99.99% - Singaporean E-Square I.T. Park WESERV SYSTEMS INTERNATIONAL, INC. Software development services 99.99% - Singaporean Ecotower
OTHER BUSINESS SERVICES
GLOBAL 3D SYSTEMS, INC. Manufacture of 3D Printers 99.99% - American Cavite Economic Zone TERUMO (PHILIPPINES) CORPORATION Product sterilization using ethylene oxide (EtO) 100% - Japanese Laguna Technopark - SEZ OZ EXPORT SUPPORT SERVICES
CORPORATION Authorization to lease from Northern Operating Services Asia, Inc. a 1,966.86 sq. m. office area 60% - Australian 40% - Filipino Uptown Bonifacio SAFEWAY PHILTECH INC. Disaster recovery / business continuity office 99.99% - American Lakeside Evozone
PAPER AND PAPER PRODUCTS
DYNAPAC AND MALINTA (PHILIPPINES) INC. Manufacture of offset printed laminated cartons, any and all types of cartons and boxes, molded pulp products and other
subsidiary materials. 99.99% - Japanese Lima Technology Center - SEZ HEAVY DUTY PACKAGING CORPORATION Manufacture of heavy-duty packaging materials and other container boards, papers and packaging solutions 100% - Filipino Alviera Industrial Park SAKURA LABELS AND PACKAGING
INCORPORATED Manufacture self-adhesive label 40% - Chinese60% - Filipino Light Industry & Science Park III - SEZ
REAL ESTATE ANFD PROPERTY DEVELOPMENT
AJUL ECOZONE PROPERTIES CORP. Registration of its additional warehouse building 20% - Chinese80% - Filipino Cavite Technopark-Special Economic Zone
AMPLEFIELD DEVELOPMENT, INC. Maintaining and operating the newly constructed 12 units warehouse/factory buildings 98% - Singaporean 1.2% - Malaysian
1% - Filipino Lima Technology Center - SEZ ATLANTICA INDUSTRIAL RESOURCES CORP. Registration of its additional warehouse facility (Atlantica Building 6) 100% - Filipino Cavite Economic Zone CENTRAL BLOCK DEVELOPERS, INC. Operation of 2 office/BPO towers: Central Bloc 1 and Central Bloc 2 Towers 100% - Filipino Cebu I.T. Park CONTAINERBOARD AND PACKAGING
COMPANY INC.. Operating and maintaining an existing 3-warehouse buildingg 100% - Filipino Laguna Technopark - SEZ FIRST PHILEC, INC. Operating an existing factory/warehouse building 100% - Filipino First Philippine Industrial Park - SEZ JEPPAMAN BUILDERS CORPORATION Establish and operate a factory/warehouse building 100% - Filipino Golden Gate Business Park-Cavite Export Processing Zone
ORO PRIME MERIDIAN VENTURES INC. Construct a factory/warehouse building 100% - Filipino Calamba Premiere International Park - SEZ TYPING MEDIA INC. Establishing a 4-storey office building to be known as Typing Media Inc. Building 99.99% - Hong Kong Baguio City Economic Zone
RECYCLING AND WASTE MANAGEMENT
ECO GREEN RISING PHILS. CORP. Engage in collecting, buying and sorting of used battery and other precious and non-ferrous metal scraps 80% - Filipino 20% - Korean Suntrust Ecotown Tanza
RUBBER AND PLASTIC PRODUCTS
AIYOH INDUSTRIES PHILIPPINES, INC. Manufacture and assembly of Plastic Injection Molding Products 99.99% - Japanese Lima Technology Center - SEZ ARMSTRONG WESTON ASIA INC. Manufacture of die-cutting, packaging, expanded polyfoam, printing & manufacturing of all kinds of foam, plastic, rubber,
and adhesives materials 99.99% - Singaporean Light Industry & Science Park III - SEZ CLOVERPACK CORPORATION Manufacture of packaging materials and other related products 100% - Filipino Victoria Wave - SEZ MYBRUSH TECHNOLOGY (PHIL.) INC. Manufacture and assembly of brushes, plastic parts and other parts for vacuum cleaners and home appliances 99.99% - Malaysian First Philippine Industrial Park - SEZ
STANDARD UNITS SUPPLY PHILIPPINES
CORPORATION. Engage in injection molding production, snets (switch box) assembly and creation of CAD drawing / designs 99.99% - Japanese First Philippine Industrial Park - SEZ TEMA DESIGN PHILIPPINES INC. Manufacture and export of decorative items, props, etc. 99.76% - Danish Pampanga Economic Zone TACCA PHILIPPINES INC. Manufacture of extruded plastic part/sheets 99.98% - Australian Filinvest Technology Park Calamba - SEZ
STORAGE AND WAREHOUSING
AIYOH INDUSTRIES PHILIPPINES, INC.. Logistic services 99.99% - Japanese Lima Technology Center - SEZ CLAYMOUNT ASSEMBLIES PHILIPPINES, INC.. Warehousing and logistics services 99.99% - Dutch Calamba Premiere International Park - SEZ DRAKA PHILIPPINES, INCORPORATED. Warehousing and logistics services 99.99% - Dutch Mactan Economic Zone II - SEZ JINGYE MANUFACTURING PHILS., INC.. Warehousing and logistics services 100% - Chinese Filinvest Technology Park Calamba - SEZ KOSAKA PHILIPPINES CORPORATION Warehousing and logistics services 99.99% - Japanese Cavite Economic Zone NIPPON PULSE TEC PHILIPPINES INC.. Warehousing / logistics support services 99.99% - Japanese Cavite Economic Zone NTW PHILIPPINES, INC. Warehousing, inventory management, direct sale, resale, consignment services 99.99% - Japanese Laguna Technopark - SEZ
RENKYO INDUSTRIAL (PHILIPPINES) INC.. Import electronic consumables/supplies for temporary storage and distribution
50% - Taiwanese 42% - Japanese 6% - Filipino 2% - Chinese
Laguna Technopark - SEZ
SUNPOWER PHILIPPINES MANUFACTURING
* The BSP adopted the Balance of Payment, 6th edition (BPM6) compilation framework effective 22 March 2013 with the release of the full-year 2012 and revised 2011 BOP statistics. In BPM6, net FDI flows refer to non-residents’ equity capital (i.e., placements less withdrawals) + reinvestment of earnings + debt instruments, net (i.e.,net intercompany borrowings).
-600 -400 -200 0 200 400 600 800 1000 1200 J'14 M M J S N J'15 M M
FDI: BOP CONCEPT US$ Million
UNIVERSAL AND COMMERCIAL BANK'S -JUNE 2017
LOANS OUTSTANDING TO THE REAL ESTATE SECTOR (P Bn)
Jun-17 % to Total RE loan Jun-16 % to Total RE loan
Residential 338.21 24.7 279.46 24.6
Commercial 1031.94 75.3 858.59 75.4
FOREIGN DIRECT INVESTMENT
Balance of Payments Concept*; JANUARY-JUNE 2017 LEVEL (US$ million)
CURRENT YEAR-AGO LEVEL YEAR-ON-YEAR (% CHANGE)
TOTAL FDI 3,597.7 4,183.5 (14.0)
140.9 1,448.0 (90.3)
Reinvested Earnings 416.4 382.1 9.0
Debt instruments 3,040.4 2,353.5 29.2
INDUSTRIAL PERFORMANCE
(2000=100) AUGUST 2017 (INDEX)DATA YEAR-ON-YEAR GROWTH
YEAR-TO-DATE
Volume of Production Index (VoPI)
(2000=100) 145.9 2.8 -2.7
a. Food 164.2 26.3 6.7
b. Beverage 133.3 4.8 -4.3
c. Tobacco 7.1 -18.4 -4.1
d. Textile 28.6 -24.7 -26.7
e. Footwear and Wearing Apparel 21.3 -22.1 -18.8
f. Wood and Wood Products 64.7 2.3 7.4
g. Furniture & Fixtures 917.6 35.6 43.9
h. Basic Metals 221.0 28.5 30.3
i. Iron and Steel 156.7 20.1 33.8
j. Non-ferrous Metals 371.8 38.0 23.4
k. Fabricated Metal Products 481.9 89.5 68.9
l. Machinery Excluding Electrical 59.8 -3.4 -1.9
m. Electrical Machinery 118.4 16.8 5.0
n. Transport Equipment 189.2 18.6 19.0
o. Other Mfg Industries 90.5 -12.4 -7.5
p. Paper & Paper Products 82.4 12.1 1.4
q. Publishing & Printing 186.3 41.6 8.0
r. Leather Products 1.0 22.4 18.2
s. Rubber Products 273.3 -6.0 2.6
t. Chemical Products 170.8 -48.4 -50.4
u. Petroleum Products 53.1 1.3 9.8
v. Non-Metallic Mineral Products 165.5 18.7 17.1
w. Glass & Glass Products 140.1 24.7 27.9
x. Cement 239.8 32.3 29.9
y. Misc. Non-Metalic Mineral Products 49.8 -2.3 -5.0
VALUE OF PRODUCTION INDEX (VAPI)
(2000=100) 193.8 2.4 -3.4
AVERAGE CAPACITY UTILIZATION 83.8 -16.3 83.7
MOTOR VEHICLE SALES 2017 AUGUST 2017
CURRENT YEAR-AGO LEVEL GROWTH RATE (%)
MOTOR VEHICLE SALES 35,309 32,472 8.7
PASSENGER CAR SALES 11,258 11,136 1.1
BUSINESS CLIMATE INDEX
-0.5 0 0.5 1 1.5 2 2.5 3 3.5 J'13 A J O J'14 A J O J'15 A J O STRIKES DECLARED -400 -200 0 200 400 600 800 1000 1200 1400 J'13 A J O J'14 A J O J'15 A J O MAN-DAYS LOST STRIKES IN AUGUST 2017Two work stoppages were recorded in August. Meanwhile, there were a total of 147 notices of strike/lockouts handled during the period.
VISITOR ARRIVALS IN JUNE 2017
Total visitor arrivals registered in June is 474,854, up by 3.42% from 459,138 in the same month in 2016. Of this, 2.55% or 12,125 visitors were Filipinos residing abroad. Korea remained the top source of market followed by the U.S. and the China. Visitors coming from Korea amounted to 108,455 (22.84% share of the total visitors in June). The U.S. market tallied 84,676 visitors (17.83%) while the Chinese market recorded 66,066 visitors (13.91%).
SURVEY ON MONTHLY OCCUPANCY RATE & LENGTH OF STAY
JAN TO DEC JAN TO DEC GROWTH RATE
2015 2014 2015/2014
De Luxe Hotels
Occupancy Rates 71.60 71.11 0.69
Length of Stay 2.71 2.74 -0.79
First Class Hotels
Occupancy Rates 59.09 58.83 0.44 Length of Stay 2.19 2.14 2.42 Standard Hotels Occupancy Rates 62.51 63.96 -2.27 Length of Stay 2.42 2.52 -3.81 Economy Hotels Occupancy Rates 60.14 59.73 0.69 Length of Stay 1.57 1.65 -4.85 OVERALL AVERAGE 66.95 67.21 -0.39
VISITOR ARRIVALS: JANUARY-AUGUST 2017
COUNTRY 2017 2016 % CHANGE RANK
KOREA 1,069,089 976,499 9.48 1 USA 660,875 584,149 13.13 2 CHINA 641,412 484,567 32.37 3 JAPAN 405,571 367,144 10.47 4 TAIWAN 167,461 157,517 6.31 5 AUSTRALIA 166,993 161,016 3.71 6 CANADA 134,459 114,074 17.87 7 UNITED KINGDOM 125,008 117,535 6.36 8 SINGAPORE 111,468 120,241 -7.30 9 MALAYSIA 95,179 95,129 0.05 10 HONGKONG 74,489 81,332 -8.41 11 INDIA 72,381 60,091 20.45 12 OVERSEAS FILIPINO 102,772 143,972 -28.62 OTHERS 643,723 578,783 11.22 TOTAL 4,472,897 4,044,065 10.60
LABOR STRIKES (SEPTEMBER 2017)
STRIKES DECLARED WORKERS INVOLVED MAN-DAYS LOST (000)
