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PEZA to surpass growth target


  • pg 1
									Volume 22 No. 04                                                                                      April 2011

             PEZA to surpass growth target

                                      Exports                  Employment


Banking on the bright investor         growth target but will most likely    The biggest jump in exports, he said,
confidence in the Philippine           surpass it," President Aquino said    was registered by the information
economy under the Aquino               in his speech.                        technology (IT) sector, which posted
administration, the Philippine                                               a 45-% expansion in January to
Economic Zone Authority (PEZA)         The new investments that came         US$432M from US$297M in the same
is optimistic of exceeding its 10-%    in the first two months this year     month in 2010.
growth target this year.               were mostly in the supporting
                                       industries that are part of the       Notably, PEZA has generated P1.7T
"We assure you that for 2011,          supply chain.                         in cumulative investments and
we will surpass our triple-double                                            US$400.6B in exports since 1995.
target," PEZA Director General         “Tourism investments are also         And in 2010 alone, 792,524 jobs
Lilia B. de Lima said during           making some headway in the first      were generated.
the agency’s 16th Anniversary          two months,” said, PEZA Promotion
and Investors’ Recognition Night       and Public Relations Group Manager    De Lima said PEZA achieved this
held recently.                         Elmer San Pascual.                    feat by continuing to attract export-
                                                                             oriented investors to its various
De Lima was referring to the           In terms of exports and               economic zones including three
10-% growth set for investments,       employment, San Pascual said          government-owned economic zones
exports and employment, which          they have no problem meeting the      in Baguio, Bataan, and Mactan.
translates to a total of P224B in      growth targets also.
investments, US$44.5B in exports                                             There are now 243 operating
and 809,239 direct jobs this year.     “The indication is we are growing     economic zones in the various
                                       between 15% to 20% for our            ecozones administered by PEZA.
President Benigno S. Aquino            exports although our target
III, who graced the event, said        is only 10-% growth,” he said.        During the first eight months of the
dividends remitted by PEZA have                                              Aquino administration, PEZA created
allowed the government                 Exports in January this year          19 new ecozones with 109 new export
to frontload expenditures and          was up 8.3% to US$3.3B from           locators and 186 expanding companies.
speed up the implementation            US$3.1B in the same month             In the period, a total of P138.2B
of its anti-poverty programs.          in 2010. Employment in PEZA           worth of investments and 95,337
                                       zones was also up 21.9%, or a total   direct jobs were generated. Some
"I am confident that for 2011,         of 777,882 as against 637,759 in      US$27.1B of exports was also
you will not only reach your 10-%      January last year.                    recorded in the period.

April 2011                                                                                                         1
                                                The IPP is an annual list of preferred   performance in 2009. In the first
                                                activities that are expected to drive    month of 2011, PACCI assembled

                                                growth for the domestic economy          and sold 4,932 units.
                                                and are therefore entitled to tax
                                                and fiscal incentives.                   The five assemblers also said
          TReNDS                                Projects listed in the IPP
                                                                                         they account for around 90% of the
                                                                                         whole auto manufacturing sector
                                                are granted a maximum of eight           in the country.
2011 IPP list trimmed                           years ITH, zero duty on importation
The government has trimmed down                 of capital equipment, additional         BPO demand drives
from 13 to 12 the list of sectors               tax deduction on expenses                office leasing market
qualified for incentives in the 2011            for training and labor, and allowed      With an average annual demand
Investment Priorities Plan (IPP).               to employ foreign nationals,             of 250,000 sqm. of office space,
                                                among others.                            the business process outsourcing
The Board of Investments (BOI)                                                           (BPO) sector continues to drive
has removed the creative                        Aside from the preferred sectors         the office leasing market
industries including the business               and export activities headings, the      in Metro Manila and other large
process outsourcing (BPO)                       other headings are mandatory listing     cities in the country.
under the preferred activity                    and the Autonomous Region in
of IPP, a move that is in line with             Muslim Mindanao (ARMM) list.             Lindsay Orr, Jones Lang LaSalle
their program of streamlining                                                            Leechiu (JLLL) Chief Operating
investment incentives.                          Auto, parts exports reach                Officer (COO), said a number of
                                                $3.1B in 2010                            locations outside the large business
The investment promotion agency                 The country’s motor vehicle              districts are benefiting from the
has decided to lump the creative                assemblers and auto parts                robust growth of the BPO sector.
industries together with the                    manufacturers exported a total of
BPO-information technology                      US$3.1B and produced 67,951 units        “BPOs are looking for locations that
(BPO-IT) industries under                       in 2010, the Philippine Automotive       can offer them more such as retail
the Export List of the 2011 IPP,                Competitiveness Council, Inc.            amenities for employees, access
making these sectors ineligible                 (PACCI) reported.                        card system, and a modern intrusion
for a package of tax and fiscal                                                          detection system,” said Orr.
incentives unless they export their
products or services.                                                                    “With the growth of the BPO sector,
                                                                                         office developments are certain to
This means that investments                                                              improve in quality, thanks to strong
in IT, film, and performing arts                                                         demand and healthy competition,”
production that are for domestic                                                         she said.
use will no longer enjoy income tax
holidays (ITH).                                                                          PPP spurs expansion in mining,
                                                                                         quarrying business
Projects that have been identified                                                       Encouraged by the government’s
under the Preferred List are                                                             public-private partnership (PPP)
domestic-oriented enterprises                                                            projects focusing on infrastructure,
that are granted with a package                                                          an increasing number of local firms
tax and fiscal incentives. The Export                                                    plan expansion programs in the
List, on the other hand, comprises                                                       second quarter.
of activities that are entitled
to the same incentives as long                                                           Most of these optimistic
as they export.                                 PACCI, an association of the             entrepreneurs come from the
                                                country’s top five car assemblers        mining and quarrying business,
The preferred sectors were chosen               and the Motor Vehicle Parts              hoping to cash in on an upsurge
based on their high local value                 Manufacturers of the Philippines         in the demand for minerals and
content as well as their potential              (MVPMAP), said that growth in auto       metals by factories in China and
to generate jobs and exports.                   parts exports in 2010 was 20% higher     elsewhere where economies have
                                                than in 2009.                            recovered from the recession.

           2011 IPP preferred sectors           The auto parts and components            The Bangko Sentral ng Pilipinas
                                                exports by MVPMAP consist largely        (BSP) said 33.9% more business
                                                of wiring harness, transmissions,        firms were planning expansion
    •	   Agriculture/agribusiness	and	fishery   instrument clusters, aluminum            programs in the second quarter,
    •	   Shipbuilding                           wheels, tires, ABS modules, and          a big leap from the previous
    •	   Mass	housing                           semiconductor assemblies. It             quarter’s 25.7%.
    •	   Energy                                 also includes batteries, forgings,
    •	   Infrastructure                         stampings, and cast products.            “Consistent with the more positive
    •	   Research	and	development                                                        outlook of the industry sector about
    •	   Green	projects                         MVPMAP members account for an            their own operations, more firms
    •	   Strategic	projects                     estimated 80% of the total auto          indicated expansion plans for Q2
                                                parts and components industry.           2011,” the BSP reported.
    •	   Private-public	partnership	projects
    •	   Tourism                                In terms of local production, PACCI      These businesses are some of the
    •	   Mining	                                reported that their members              largest and most profitable, having
    •	   Motor	vehicles/transportation          assembled and sold 67,951 units          come from the ranks of the top
                                                in 2010 or 18% higher than their         7,000 companies in the country.

2                                                                                                       Philippine Business Report
The BSP said mining and quarrying       have come up with three options           for Marketing and Product
firms were the most bullish and         on the income tax holiday (ITH)           Planning of HMC Asia & Pacific
posted far more expansion plans         and gross income earned (GIE)             Regional Headquarters.
than those into agriculture or in       incentives for registered export-
various utilities firms.                zone companies as they prepare a          Last year, HMC’s Philippine distributor
                                        unified position on the proposed          Hyundai Asia Resources Inc. (HARI)
New sunrise industries eyed             Fiscal Investments Reform bill.           posted sales growth of 82% to 20,172
to generate 500,000 jobs                                                          units from 11,086 units in 2009.
The government is considering           The first option is to grant ITH for      There were a total of 4,596 units of
the development of new “sunrise         six years, extendable for two years       Accent units sold in that year or 375%
industries” that could readily          for those who will locate in the less     higher than its 967 units sold in 2009.
employ at least 500,000 people          developed areas and thereafter, 5%
directly and follow the path            on GIE for the remaining years.
of the business process outsourcing     The second option is a 2% to 5% GIE       AVIATION
(BPO) sector.                           for a period of 25 years and the
                                        third option is a reduced ITH of 15%      PAL taps Air France-KLM
                                        for 25 years.                             for engine maintenance
                                                                                  Philippine Airlines (PAL) has entered
                                        For registered export enterprises,        into a 12-year contract with
                                        both government agencies have             Air France Industries (AFI) KLM
                                        agreed to impose a sunset clause          Engineering and Maintenance (E&M)
                                        on incentives of a maximum                for the maintenance and support
                                        of 25 years.                              of GE90 engines for its Boeing
                                        This move is aimed at harmonizing
                                        incentives and to remove any              The carrier said the agreement covers
                                        location bias in favor of ecozones        “on-site and on-wing maintenance,
                                        or freeports. At present, enterprises     shop visits, component support, spare
Department of Trade and Industry        registered with the Philippine            engines and engineering support for
(DTI) Secretary Gregory L.              Economic Zone Authority (PEZA)            PAL’s extended range Boeing 777s.”
Domingo said some of the initial        enjoy a maximum of 8-year ITH
sectors they were looking at were       and perpetual 5% GIE upon expiry          With hubs in Manila and Cebu and
automotive, coconut, and tourism.       of the ITH.                               a network of 20 domestic points
                                                                                  and 25 international destinations,
“We would like to find the new          Other investment promotion                PAL has been tapping the services
BPO, the new sunrise industries         agencies Clark Freeport Zone, Subic       of AFI KLM E&M for CF6-80E engine
that can eventually contribute          Bay Freeport, Poro Point, Bataan          maintenance and airframe and
directly to half-million employment     Technology Park and Camp John Hay         support services.
or more,” Domingo said.                 enjoy perpetual 5-% GIE.
                                                                                  Cebu Pacific seeks partnership
Domingo said while the creative         Locators inside the Cagayan Ecozone       with flight training center
industry may qualify as a sunrise       and Freeport, Zamboanga Ecozone           Cebu Pacific is seeking partnerships
industry, its scale might not be able   and Freeport, Aurora Ecozone and          with flight training institutions
to provide 500,000 direct jobs.         Freeport, and Bataan Ecozone              approved by the Civil Aviation
                                        and Freeport enjoy a maximum of           Authority of the Philippines (CAAP)
“Tourism has the biggest potential      8-year ITH and perpetual 5-% GIE.         after announcing that it is sourcing
because we already have the natural                                               high quality personnel for its
resources and we just have to put                                                 growing workforce by creating a
in the infrastructure,” Domingo said.                                             sustainable crew resource program.

He also said outside of the airports,
the other requirements on the                TRADe AND                            Cebu Pacific opens the doors for
                                                                                  partnerships with flight training

infrastructure side can be addressed                                              organizations. According to CAAP,
by the private sector.                                                            there are some 50 registered flight
                                                                                  training institutions in Clark, Subic,
Coconut also has strong potentials,                                               Pasay, Bacolod, Zambales, Lapu-
which is why the government is now      AUTOMOTIVE                                Lapu, and Manila, among others.
organizing a Coconut Summit.
                                        Hyundai cites RP as most                  The airline has already received four
As for automotive, he said, this can    important country                         brand-new Airbus A320 from October
also generate the employment level      Korea’s Hyundai Motor Company is          2010 to January 2011. By the end of
being sought by the government,         eyeing to put up an Association of        2011, CEB will be operating a fleet
similar to what Thailand                Southeast Asian Nations (ASEAN) hub,      of 37 aircraft with an average age of
experienced when it developed its       citing the Philippines as its ‘most       less than 2.5 years. Between 2012
1-ton pickup-truck program.             important country’ in the region          and 2014, Cebu Pacific will take an
                                        because of its significant performance.   additional 16 Airbus A320 aircraft.
DTI has set a target of generating at
least 1M jobs each year up to 2016.     “The Philippines is the most
                                        important country to us not only          BPO
Tax incentives schemes                  because it attained the highest
to be harmonized                        sales growth rate but also the            Convergys expands in PHL
The Departments of Trade and            highest in terms of volume,” said         Convergys Corp. announced that it
Industry (DTI) and Finance (DOF)        Jin Young Park, General Manager           would expand its operations in the

April 2011                                                                                                                 3
Philippines with a new state-of-the-     SMK first opened in Clark               The company said the new plant
art contact center in Baguio City, its   in 2001 with 190 employees.             would allow it to export green
first in northern Luzon.                 With the expansion, it will employ      technology products
                                         a maximum of 3,500 workers              that will displace harmful
Currently under construction, this       at full capacity.                       petrochemical-based products.
new facility in Baguio City is the
14th location and will serve to          SMK is a known supplier of touch        It is expanding its product line to
strengthen Convergys’ presence in        panels, universal remote controls,      include oleochemical specialty
the Philippines.                         IR receivers/blasters for consumer      products and derivatives for the
                                         electronic products like automated      export market.
Convergys occupies 13 additional         teller machines (ATMs), cellphones,
facilities throughout the country,       copiers, car navigation systems,        Unioil to embark on P240-M
eight throughout Metro Manila,           electronic dictionaries and other       expansion
three in Cebu City, one in Bacolod       applicable products and new             Oil player Unioil Petroleum
City, and one in Sta. Rosa, Laguna.      generation gadgets.                     Philippines Inc. may spend around
                                                                                 P240M for its retail expansion and
8 more IT parks                          Toshiba Corp. contributes               terminal modernization this year.
soon to rise in Davao City               connectivity to Filipino
Eight information technology (IT)        high schools                            Unioil President Kenneth Pundanera
park projects are currently in the       Toshiba Corporation has given           said they plan to construct
pipeline in Davao City, ICT Davao        away 140 new notebook personal          20 additional retail stations
Inc. President Bert                      computers (PCs) to 14 public high       in Metro Manila.
Barriga announced.                       schools in Laguna Province as part
                                         of its continuing support for the       Each station is estimated to cost
Barriga identified the new projects      “Gearing up Internet Literacy and       around P10M. Construction cost
as M. Piazza Oro, Panacan IT Park,       Access for Students” (GILAS) project.   varies depending on the site and
Mamay IT Building, First Mindanao                                                size of the station.
Industrial Park, Georgetown
Cybermall, Centerpoint Plaza,                                                    Unioil currently has a total of
Felcris IT Park, Abreeza Mall, and                                               around 40 stations mostly located in
Filandia IT Center.                                                              Metro Manila.

He said Davao City has an existing                                               eastern Petroleum plans to put up
18 contact centers which started                                                 300-MW coal plant
in 2009.                                                                         Oil player Eastern Petroleum Corp.
                                                                                 is looking at diversifying to the
                                                                                 power sector by putting up a 300-
ELECTRONICS                                                                      MW coal-fired power plant in Luzon.
Epson to construct new P4.5-B                                                    Eastern Petroleum President Fer
plant in Batangas                                                                Martinez said the planned coal
Epson will build a new projector and                                             facility will be constructed together
inkjet printer manufacturing plant                                               with a joint venture partner.
in the country for an investment
cost of P4.5B.                                                                   "We are thinking of crossing over
                                         The company has supported the           to the power sector. We are now
The company will construct the           program for the last three years        looking to be a total energy
new plant next to an existing inkjet     with annual donations of 100            company. We're looking at putting
printer facility at Epson Precision      notebook PCs, 10 to each of 10          up a merchant power plant,"
(Philippines) Inc., located in Lipa      selected high schools. In its fourth    Martinez said.
City. Full-scale production at the       year, Toshiba has increased its
new plant is scheduled to begin in       donation and handed over 140 new
October 2011.                            notebook PCs for 14 schools.            FOOD
SMK electronics to open                  GILAS is being promoted by the          Foodsphere launches
P800-M project                           Ayala Foundation to improve             food service unit
Japanese firm SMK Electronics            computer literacy among students        Foodsphere Inc., maker of the CDO
Industries Corp. will open its P800-M    in public high schools. The program     brand of canned and refrigerated
expansion project in Clark Freeport      has already provided internet           meats and the San Marino tuna
Zone, the Clark Development Corp.        access to 3,040 schools to enhance      brand, launched its foodservice unit
(CDC) reported.                          information literacy by bringing        during the 2011 Chefs on Parade
                                         public high schools in the              held at the SMX Convention Center
CDC President Benigno N. Ricafort        Philippines online.                     in Pasay City.
said the expansion program of SMK
in Clark will double the current                                                 Foodsphere Vice President for
output of electronic products and        ENERGY                                  Corporate Sales George Syyap
components when this project                                                     said the company established CDO
becomes fully operational                Chemrez to invest P368.7M               Foodservice as an integral part
by this year.                            in new plant                            of its sales division composed of
                                         Biodiesel, resins, and oleochemicals    food specialists, and research and
Ricafort said the expansion of SMK is    producer Chemrez Technologies           development professionals who have
a testament to the continuing jobs       Inc. is planning to invest P368.7M      been specially trained to provide
and investments generation in Clark      for the construction of a new           products and solutions to the
by local and foreign investors.          manufacturing plant.                    institutional market.

4                                                                                               Philippine Business Report
“We established CDO Foodservice          “We are here to personally extend        great help to his constituents
to help businesses, big or small,        our modest intention to invest in        and residents of neighboring
conceptualize and develop products       your municipality not only because       barangays because it shortens the
that are ideal for their growth          of the land’s suitability, but more      time in bringing their products to
strategy,” Syyap said.                   so because of the stable peace and       the market.
                                         order in your area,” Sopronio told
Agro-industrial company ventures         Constantino during their meeting.        Subic port expansion set this year
into beekeeping                                                                   The Subic Bay Metropolitan
Bounty Fresh Food, Inc., one of                                                   Authority (SBMA) is all set for the
the top poultry producers in the         HEALTH AND WELLNESS                      promotion of the Port of Subic as
country, is venturing into the                                                    a one-stop logistics center, now
beekeeping business this year.           Beverly Hills 6750 invests P30M          aiming to establish and expand
                                         to expand aesthetic facilities           more facilities at the Subic Bay
The agro-industrial firm aims to         Beverly Hills 6750, one of the           Freeport to accommodate virtually
make the Philippines self-sufficient     aesthetic and beauty facilities          all types of maritime cargo.
in honey in the next 10 years.           in the country, is expanding its
                                         operations in Quezon City with           This would entail the complete
Bounty Fresh President and Chief         an investment of P30M for a new          privatization of the New Container
Executive Officer (CEO) Tennyson         facility that would cater to its         Terminal-2 (NCT-2) and the Naval
G. Chen said the beekeeping              growing clientele.                       Supply Depot (NSD), the expansion
venture will make use of contract                                                 of oil depots and the grain terminal
farmers as well as new bee farmers       Chief Executive Officer (CEO)            in Subic, and the development
and will involve a production of         Suzette Hahn-Lopez said this             of a floating logistics center
queen bees in Visayas.                   would be the company’s first branch      for mineral transshipment.
                                         out of its Ayala Avenue facility
Zuellig Group planning to enter          in Makati City.                          “We’re all set to do all these
corn production                                                                   this year so that we can promote
The Zuellig Group, one of the            MPIC’s hospital group                    more cargo traffic for Subic. I
largest privately held conglomerates     to fasttrack expansion                   think that after we have built all
in the world, wants to put up a          The hospitals group of Metro Pacific     the cargo terminals and related
30,000-ha. corn plantation in the        Investments Corp. (MPIC) will            infrastructure, what remains
Philippines to secure its feed milling   fasttrack its expansion from the         now is the challenge to build up
requirements.                            current five hospitals to 15 within      volume,” SBMA Administrator/Chief
                                         the next three years, faster than        Executive Officer (CEO) Armand C.
                                         the original 10-year timetable.          Arreza said.
                                         MPIC Hospitals Group President           Arreza said the SBMA would pursue
                                         Augusto Palisoc Jr. said Chairman        this year the privatization of the
                                         Manuel V. Pangilinan has instructed      NCT-2, which has an annual capacity
                                         them to acquire or manage 10 more        of 300,000 twenty-foot equivalent
                                         hospitals within three years.            units (TEUs), and the NSD wharves
                                                                                  which are ideal for break-bulk and
                                         Palisoc said the five hospitals they     general cargo.
                                         now operate took about three years
                                         to acquire.
It would be the first time for the       “A big number of the 10 new              Monheim Group to invest P300M
diversified group to engage in           hospitals will be in Luzon,” he added.   in home care products
massive corn production amid                                                      German brand Henkel has assigned
surging commodity prices.                INFRASTRUCTURE                           the manufacturing and marketing
                                                                                  license for its laundry and home
The Zuellig Group might also bring       P63-M Jamindan bridge                    care business in the Philippines to
in its agriculture equipment business    inaugurated                              the Monheim Group of Companies,
in addition to pharmaceutical            The inauguration of the P63-M            which committed to invest P300M
distribution, insurance and property     bridge in Barangay Pangabat in           in putting up the production facility
business in the country.                 Jamindan town, Capiz is expected         for Henkel products here.
                                         to facilitate travel and transport of
Investors eyeing Malungon                products to markets.                     Henkel sells Vernel liquid detergent,
Malaysian investors are keen on                                                   Perwoll special detergent and Dutch
investing a multi-million-peso                                                    cleanser, among others. Monheim
venture in developing some 30,000                                                 has been the distribution partner
ha. of land for palm and castor oil                                               of Henkel in the Philippines for
production in Malungon, Sarangani.                                                eight years.
Green Castor Oil Philippines, Inc.
(GCOPI) President Allan Sopronio                                                  MINING
and Kuala Lumpur-based Ashada
Properties Company Director K.                                                    Philex, Manila Mining revive deal
Diega Miega met with Malungon                                                     for joint development of mine sites
Mayor Reynaldo Constantino                                                        Two of the country’s biggest
after their surveyors reported the                                                mining companies are nearing an
suitability of the land for palm and     Pangabat Punong Barangay Lino            agreement to jointly explore and
castor oil production.                   Calixterio said the bridge will be a     develop certain properties.

April 2011                                                                                                               5
Philex Mining Corp. (PMC) and           In a disclosure to the Philippine,      some P3B for the mall’s expansion,
Manila Mining Corp. (MMC) already       Stock Exchange (PSE), First Gen         which will be completed in 2013.
have a “meeting of the minds”           said its subsidiary, First Gen Luzon
on the basic commercial terms for       Power Corp., signed a memorandum        It will house a mix of luxury
the joint exploration/survey of         of agreement with the province of       signature brands, fashion
certain properties adjacent             Nueva Ecija and the municipality        forward brands, information
to Philex’s Boyongan property           of General Tinio for the proposed       technology outlets, techtronics,
in Surigao del Norte, in particular     development of the Balintingon          home furnishing, and
the Kalayaan copper-gold project        Reservoir Multi-Purpose Project.        lifestyle concepts.
of PMC Chairman Manuel V.
Pangilinan said.                        The project will involve the            The development will include four
                                        development, construction, and          levels of retail outlets, three levels
Pangilinan said that while the          operation of a new reservoir and        of an anchor store, three levels of
agreement between the two               a new hydroelectric power plant         basement parking, a multi-purpose
mining companies is still in the        in General Tinio, Nueva Ecija, for      hall, a cinema, and gardens at the
documentation stage, it would most      purposes of power generation,           fourth level.
likely involve a joint venture, with    irrigation and domestic water supply.
Philex having a 60% stake and Manila                                            The four-level structure will
Mining, 40%.                            P700-M hydro projects                   have a total of 36,000 sqm.
                                        to rise in Ifugao                       of leasable spaces.
The Kalayaan property is north of       The construction of the proposed
the Boyongan property. Pangilinan       Tinoc III Mini-Hydro Power Plant        Empire East to launch 4,700
said their participation would most     Project in Tinoc, Ifugao is set to      residential units in first half
likely be in the form of a farm-in      begin following the finalization        The Empire East Land Holdings Inc.
agreement, with Philex shouldering      of the feasibility study and            will launch 4,700 residential units
the initial exploration/survey and      Memorandum of Agreement (MOA)           in the first half this year with an
Manila Mining as the owner              between concerned government            estimated sales value of P12B.
of the property.                        agencies and the affected
                                        communities.                            “Our confidence level in the
                                                                                real estate sector is very high.
POWER                                   The project is estimated to cost        Our new projects will enable
                                        P700M and will be implemented           Filipino families to own quality,
Meralco to invest over US$2B            in a series of construction at the      budget-friendly homes in the
in power gen facilities                 Tinoc River with Barangay Eheb          very best locations,” Empire
Power distributor Manila Electric       as first and called Tinoc I,            East President Anthony
Co. (MERALCO) plans to spend            Binablayan as Tinoc II, and             Charlemagne Yu said.
US$2B for the construction of power     Poblacion as Tinoc III.
generation facilities with a capacity
of 1,500MW from 2012 to 2016.                                                   The units will come from new
                                        REAL ESTATE                             projects which include The
                                                                                Rochester in Pasig City, The Sonoma
                                        Las Vegas firm to invest US$2.5B        in Sta. Rosa, Laguna and Kasara
                                        in Batangas                             Resort Towers located near C-5 Road
                                        Las Vegas-based The Lovett              in Bagong Ugong, Pasig City.
                                        Companies has announced
                                        plans to invest US$2.5B to transform    Others will come from new phases
                                        a huge track of land in Batangas        in ongoing projects across Metro
                                        into what it calls a “Green Factory     Manila – Green Club Towers
                                        City of the Future” development         in Little Baguio Terraces, Maple
                                        that is anchored on                     Heights in Pioneer Woodlands,
                                        an international seaport.               Madison Plaza Towers in San Lorenzo
                                                                                Place and Central Park
“We remain bullish about the            Vice-President for Sales and            in Cambridge Village.
promising opportunities – our           Marketing Peter John T. Rosetase
re-entry into power generation          said the project proponent,             SM Land launches BPO center
initially with a peaking                together with its international         in MOA complex
plant and subsequently into             partners Safe Harbour, Alpine           The SM Land of SM Investments
baseload and mid-merit plants,”         Reserves, Tiger Global and Pantheon     Corporation (SMIC) has launched
Meralco President and Chief             One, has completed the agreements       the opening of its P2.7-B Two
Executive Officer (CEO) Manuel V.       with over 200 owners of 125 parcels     E-comCenter, a business processing
Pangilinan said.                        of land, once known as the Phase 3      outsource (BPO) center at the Mall
                                        of the Batangas port for its project.   of Asia (MOA) that will open in the
Pangilinan said Meralco wants to                                                first quarter of 2012.
influence the electricity prices,       Ayala Center Cebu’s P3-B
thus the company decided to put up      expansion to complete CBP’s             The Two E-comCenter is a
power generating facilities.            9-hectare centerpiece                   twin-tower project that will have
                                        Ayala Center Cebu’s P3-B,               an approximately 68,000 sqm. of
First Gen to build                      four-level expansion is set to          office and retail space.
multipurpose dam                        complete the retail development
Power firm First Gen Corp.,             within the nine-hectare centerpiece     SM Land said this will be the second
through a wholly owned subsidiary,      of Cebu Business Park (CBP).            in a series of four office buildings to
is putting up a multipurpose dam                                                rise within the 67-ha. MOA Complex
and hydroelectric power plant in        Cebu Holdings Inc., an affiliate of     along a reclaimed portion of the
Nueva Ecija.                            Ayala Land Inc., is setting aside       Manila Bay.

6                                                                                               Philippine Business Report
Anchor Land builds                       for construction this year are in      a 5,364sqm. lot into 75 low-cost or
7 property projects                      Pangasinan, Palawan, New Manila,       economic housing units.
Anchor Land Holdings Inc. is gearing     and Cebu.
up to launch seven new projects                                                 EEI to build BSP branch
from commercial developments             RLC plans to put up a total of 30      in Zamboanga
to luxury residential suites and         Gohotels in and outside Metro          EEI Corporation will build the
the expansion of its mid-rise            Manila over a five year period.        Bangko Sentral ng Pilipinas (BSP)
condominium project at the ASEANA        Programmed for opening this year       Zamboanga branch at a cost
Business Park in Parañaque City.         are in Bacolod and Dumaguete.          of P312.3M.
                                         The next sites will rise in Palawan,
                                         Iloilo, Cebu, and Tacloban for         The proposal to award the
                                         2012 and Pangasinan, Ilocos Norte,     construction contract has
                                         Zamboanga, Batanes, and General        already been noted by the BSP
                                         Santos in 2013.                        Monetary Board.

                                         The company has offered                Last year, BSP also approved several
                                         to develop the 103-ha. Food            proposals to put up new branches
                                         Terminal Inc. (FTI) property           across the country in a bid to
                                         in Taguig into a modern, world-class   expand its regulatory presence.
                                         mixed-use development.
                                                                                Versace enters Philippine
                                         RLC has four integrated large-scale    real estate
                                         mixed use developments in Ortigas,     Versace has marked its entry into
                                         Manila, Mandaluyong, and in the        the Philippine real estate market
Anchor Land Chairman Stephen             future Magnolia Complex                through a high-rise residential
Lee Keng said construction works         in Quezon City.                        condominium in Makati City being
in four projects are in full swing,                                             built by Century Properties Group.
namely The SoleMare Parksuites           Vista Land allots P7B for projects
Phase I near Macapagal Blvd. at the      Vista Land and Lifescapes Inc.         The 53-storey project called
ASEANA Business Park; Two Shopping       has earmarked P7B this year            Milano Residences will again test
Center along Cuneta Ave. in Pasay        for the construction of new            the Philippine market’s appetite
City; the Anchor Skysuites along         medium-rise building (MRB) projects    for ultra-luxury residences amid a
Ongpin St. in Binondo; and the           to be undertaken by its newly-         real estate industry dominated by
Wharton Parksuites along Masangkay       created brand Camella Residences.      middle income to affordable homes.
St., also in Binondo.
                                         Vista Land President and Chief         The P3-B project is slated for
Anchor Land has recently broken          Executive Officer (CEO) Benjamarie     completion by 2015.
ground with its Admiral Baysuites        N. Serrano said Camella Residences
project under subsidiary Admiral         is building seven new MRBs located     BOI approves P2.6-B Marco Polo
Realty Co., Inc. as well as with         in key urban locations throughout      hotel project in Ortigas
SoleMare Parksuites Phase II while       the country.                           The Board of Investments (BOI) has
a seventh project, Clairemont                                                   approved the P2.6-B Marco Polo
Hills Parksuites under the parent        These projects are in addition to      Hotel project along the Meralco
company will be launched by the          six existing MRBs worth P 7.6B         Avenue in Ortigas Center.
second quarter of the year.              which form part of Vista Land’s
                                         current portfolio of 22 vertical       The proposed Marco Polo Hotel
Robinsons Land to expand                 developments totaling P12.5B.          would be a 40-storey building on a
on all fronts                                                                   1,749-sqm. lot.
Robinsons Land Corporation (RLC)         The existing MRBs are:
is accelerating expansion across all     • Pinecrest and Madison in             The project is expected to start
its business segments with capital           Quezon City                        commercial operation in
expenditures seen to rise by almost      • Marfori and Presidio at              September 2011.
40% this year to P9B.                        Lakefront in Paranaque City
                                         • Pacific Residences in Taguig         Primary Homes lines up P2-B
RLC President and Chief Operating            City, and                          housing projects
Officer Frederick Go said the            • Northpoint in Davao City.            Real estate developer Primary
programmed capital budget, which                                                Homes Inc. has lined up at least
is significantly higher than the P6.5B   Bulacan housing project                four projects for the year, including
spent last year, excludes special        granted perks                          a seaside community.
land acquisitions that the company       The Board of Investments (BOI)
intends to pursue to capitalize          granted tax incentives to the P27-M    Primary Homes President Stephen
on strong demand for residential         housing project of Central Luzon       Charles Liu said these will be a
properties. The company is looking       Basic Homes, Inc.                      mix of condominium, subdivision
to acquire two parcels of land in                                               and townhouse units with a capital
Metro Manila to be developed for         The project would be entitled          expenditure of about P2B.
office space.                            to four years of income tax holiday
                                         incentives because it is new and       P350-M condo to rise in midtown
Go said the company is building four     is located in Region 3, one of the     Cebu City
malls and two office buildings this      identified less-served areas           Cebu Landmasters Inc. and Riasjac
year to take advantage of a growing      for mass housing.                      Development Corp., owners of
economy and steady inflows from                                                 Baseline Complex, signed a contract
Filipinos living and working abroad.     The development called Ylang Ylang     to develop a new residential
Among the new malls scheduled            Homes involves the development of      condominium in midtown Cebu.

April 2011                                                                                                              7
The 16-storey condominium will          Additional developments include          the US$430M Asia Submarine-
have 168 units.                         installation of cargo-handling           cable Express (ASE), a fiber optic
                                        facilities and key infrastructure.       underwater cable system.
One Baseline Place, a P350-M
investment, will be in between          Aboitiz Transport System gets            The 7,200-km. ASE system will link
the Sideline Garden restaurant and      BOI incentives                           Japan, Philippines, Hong Kong, and
the main Baseline building and will     The Board of Investments (BOI)           Singapore which will also connect to
consist of studio and one-bedroom       has given tax breaks to the P1.5-B       Malaysia and potentially to Mainland
units.                                  shipping project of Aboitiz Transport    China as well as other Southeast
                                        System Corp. (ATSC).                     Asian countries.
Fil-Estate, Megaworld to develop
1,149-hectare land in Tagaytay          The project will employ a labor          The system is envisioned
Fil-Estate has teamed up with           force of 208 workers during              to provide seamless interconnection
Megaworld Corporation to develop        operation and generate a total           with other major cable systems
more than 1,149 hectares of land        investment of P1.5B covering             connecting the Middle East, other
in Tagaytay into a world-class          pre-operating cost, lease of capital     parts of Asia, Europe, and the
tourism-oriented community to be        equipment and working capital            United States.
called Twin Lakes.                      which will be funded by 75% loan
                                        and 25% equity.                          Digitel spending to stay
The real estate company has just                                                 at US$350-M level this year
commenced the master-planning           The project involves the acquisition,    Digital Telecommunications Phils.
of Twin Lakes, a project set to         rehabilitation and operation             Inc. (Digitel) will allot US$350M this
offer resort estates overlooking        by ATSC of two second hand               year for its capital expenditures
panoramic views of its very own         RORO vessels to be named M/V             (capex) to boost its wireless mobile
waterway as well as Taal Lake.          Super Ferry 20 and Super Ferry 21        services network nationwide.
                                        acquired from Japan at a total cost
Initial phases of the development       of P697.5M.
will host a luxury hotel, residential
villas and condominiums, a shopping     Terminal operators to implement
village, botanical garden, sports and   port decongestion projects
country club and plantation estates.    South Harbor Asian Terminals, Inc.
                                        (ATI) and International Container
The project cost of the initial phase   Terminal Services, Inc. (ICTSI)
is estimated to exceed P5B.             have announced they would
                                        implement a number of projects
Succeeding phases will offer a          this year meant to help resolve
golf course, international hotels,      port congestion.
boarding schools and a retirement
village complete with wellness and      ATI said it will build the P15-B
medical amenities.                      offsite container yard (CY), 6kms.
                                        from South Harbor near its Manila
                                        South Harbor concession, and
SHIPPING                                will likely double the current
                                        CY capacity of 120 containers            “The company’s mobile brand Sun
ATI to spend $85M to improve            per month.                               Cellular aims to end 2011 with
South Harbor concession                                                          8,500 to 9,000 cellsites,” Digitel
Asian Terminals Inc. (ATI) said it      ATI added it is also extending           President James Go said.
will be spending US$85M to further      Pier 3 by 120m., expanding Pier 9,
develop its South Harbor concession     and demolishing two Philippine           Globe to expand wireless landline
in an effort to gain more cargo         Ports Authority (PPA) buildings          service in rural areas
traffic from its customers.             to give way to a bigger and              Globe Telecom’s (Globe) DUO
                                        expanded CY.                             has expanded presence to eight
                                                                                 more provinces in Luzon, Visayas
                                        ICTSI expressed its commitment to        and Mindanao.
                                        expand its Berth 6 by 320m.,
                                        Berth 7 by 300m., as well as its         DUO is a two-in-one service that
                                        CY in the Manila International           uses one subscriber identification
                                        Container Terminal (MICT).               module (SIM) so a subscriber gets to
                                                                                 carry around just one mobile phone
                                        It is also eyeing a truck-holding area   to make unlimited calls from Globe
                                        outside the port zone.                   to any landline number and from
                                                                                 any landline to Globe.
                                        PLDT to build $430M underwater
                                        cable system                             Giordano distributor
                                        The Philippine Long Distance             to open 14 stores
                                        Telephone Co. (PLDT) said it signed      TFB Inc., the master franchisee
The upgrade, which will run until       a construction and maintenance           and exclusive distributor of Hong
2013, is 28% of its original US$300-M   agreement (C&MA) with Nippon             Kong-based Giordano International
investment commitment to the            Telegraph and Telephone (NTT)            Ltd, wants to open 14 new stores
Philippine Ports Authority (PPA)        Communications of Japan                  at an investment of P5M per store
until 2038.                             and StarHub of Singapore to build        up to next year in new malls.
8                                                                                               Philippine Business Report
“We became more active in the
past three years. Last year, we                                                  (HTP), through the Honda
opened three shops. We are looking                                               Foundation recently conducted an

at opening eight to 10 stores this                                               executive briefing and consultation
year and four next year,” TFB Inc.                                               among the participating government
Assistant Operations Manager                                                     agencies for its green program.
David O. Magat said.                           NOTeS                             For a period of eleven months
New stores will open this year in SM                                             starting 23 February 2011, Honda
                                          Water firm expands                     will share with government fleet
Iloilo, Abreeza of Ayala Land, Inc.,      franchising program
in Davao City, SM City Bacolod, and                                              operators its technical expertise
                                          AquaHealth Pure Drinking Water         and facilities for a whole day
SM City North EDSA.                       is expanding aggressively not          of fuel efficient and safe driving
                                          just through individual franchises     training.
The kiosk concept that came from          but through the appointment
Giordano branches in the Middle           of area master franchises (AMF)
East will be smaller than the 120 to                                             This project is an evolution of
                                          responsible for the development of     HCPI’s fuel efficiency driving
200-sqm. full stores costing P5M.         franchises and grow the brand in       competition program called the
                                          their assigned areas.                  Honda Challenge Cup. Established
Kiosks will occupy 20 to 24sqm. and
require about P500,000 for fixtures                                              in 1996, the Honda Challenge Cup
                                          AMFs develop franchises in their       advocates fuel economy under
and initial merchandise.                  assigned areas, supervise them         normal driving conditions
                                          and grow the business. They have       by teaching a simple formula.
                                          a formula on how to distribute the
                                          profit between the head office,        Present during the meeting were
                                          the AMF and the franchisee.            personalities from different
                                                                                 government agencies including
                                          A single franchise for AquaHealth      the Departments of Trade and
      PROJECTS                            will have an all-in cost of P495,000
                                          while an AMF is P2M.
                                                                                 Industry (DTI), Transportation
                                                                                 and Communications (DOTC),
                                                                                 Energy (DOE), and House of
Gov’t launches first batch                Honda green program gets               Representatives.
of PPP projects                           government support
The government launched the first         The Honda group of companies           Honda’s clean fleet management
five projects under its public-private    consisting of Honda Cars               program is in partnership with
partnership (PPP) initiative during       Philippines, Inc. (HCPI), Honda        the Philippine Business for the
the inauguration of the PPP Center        Philippines, Inc. (HPI), Honda Parts   Environment (PBE), Clean Air
Satellite Office and its website.         Manufacturing Corporation (HPMC)       Initiative for Asian Cities (CAI-Asia),
                                          and Honda Trading Philippines          and the DOE.

                                         DPWH plans P250-M road                  Otero at the Board of Investments
                                         to protect Aurora’s Diayo dam           (BOI) to discuss possible business
                                         The Department of Public Works and      opportunities between the
                                         Highways (DPWH) will spend P250M        two countries.
                                         for the construction of a 7-km. long
                                         diversion road network along the        The Argentinian government
                                         section of Baler-Pantabangan Road       expressed its interest in agro
                                         (BPR) to bypass the Diayo Dam in        technology. Ambassador Otero
The five projects include the            Canili, Maria Aurora.                   urged the Philippine Chamber of
operation and maintenance                                                        Commerce and Industry (PCCI) to
of Metro Manila's main rail systems      The project includes the                organize a trade mission to South
- the Light Rail Transit (LRT) 1 and     construction of a modern bridge         America specifically to Argentina,
Metro Rail Transit (MRT) 3; the          traversing barangays Canili and San     Brazil, and Chile.
Ninoy Aquino International Airport       Juan in Maria Aurora town.
Expressway (Phase II); NLEX-SLEX                                                 Domingo welcomed the
Link Expressway; and Daang               The new road network was designed       ambassador's proposal to explore
Hari-SLEX Link Road Project.             to carry heavy and cargo trucks.        investments in the three countries
The government plans to start
bidding these projects. Department                                               PHL, Spain discuss aid
of Finance (DoF) Secretary Cesar                                                 to shipping
Purisima said they will go full swing
in 2012.
                                             BILATeRAL                           Department of Trade and
                                                                                 Industry (DTI) Secretary Gregory

President Benigno S. Aquino III              AGREEMEnT                           L. Domingo met with Spanish
                                                                                 Ambassador Carlos Salinas
said these projects will not only                                                to discuss issues regarding the
stimulate the economy but also                                                   shipping industry.
have direct benefit to the people.       PHL to strengthen
                                         South America trade missions            A former Vice President and
The projects are expected                Department of Trade and Industry        Chairman of the Filipino
to create jobs, boost economic           (DTI) Secretary Gregory L.              Shipowners’ Association, Domingo
growth, and allow more budgets for       Domingo met with Argentinian            discussed issues that need to be
social services.                         Ambassador Joaquin Daniel               addressed by the government to

April 2011                                                                                                                 9
advance the Philippine shipping          Investments (BOI), Philippine        at a seminar in Jakarta.
industry and craft a national            Economic Zone Authority (PEZA),      The seminar also marked the
legislation. He pointed out the need     Subic Bay Metropolitan Authority     conclusion of the ASEAN-EU
for more in-bound missions.              (SBMA), and Clark Development        Programme for Regional Integration
                                         Corporation (CDC) showed a           Support, Phase II (APRIS II).
PHL, namibia to boost trade,             marked growth in Japanese
investment inflows                       foreign direct investments to the    APRIS directly supports ASEAN in
Department of Trade and                  Philippines from P16B in 2008        the implementation of its ASEAN
Industry (DTI) Secretary Gregory         to P70B in 2009 specifically in      Economic Community Blueprint,
L. Domingo met with Namibian             areas in construction, finance,      in particular helping with practical
Ambassador Gebhard Benjamin              real estate, manufacturing, and      steps for establishing the ASEAN
Kandanga for possible collaboration      transportation.                      single market and production base.
between the two countries.
                                                                              “Over the last eight years, the
Ambassador Kandanga expressed                                                 APRIS support from the EU has
their country’s desire to increase                                            been successful and helpful to
their trade and investments with
the Philippines. Namibia and the
                                             ASeAN                            ASEAN. The new phase of support
                                                                              opens a new and exciting chapter
Philippines share the common
characteristic of being rich                 WATCH                            for economic cooperation with the
                                                                              EU. I look forward to working in
in non-fuel minerals.                                                         closer partnership with the EU in
                                                                              advancing economic integration,”
PHL, Viet Nam renew 3-year rice          EU funnels €15M                      Secretary-General of ASEAN
supply agreement                         for ASEAn's 2015                     Dr. Surin Pitsuwan said.
The Philippines renewed an               single market goal
agreement with Viet Nam                  The Association of Southeast Asian
for the supply of up to 1.5M metric      Nations (ASEAN) and the European
tons (MT) of rice annually               Union (EU) dawned with a larger
until 2013.                              funding of €15M that is expected
                                         to directly help ASEAN realize
Department of Agriculture (DA)           its targets for a single market
Secretary Proceso J. Alcala              by 2015.
said the renewal was made upon
the recommendation of the                A new phase of ASEAN-EU economic
National Food Authority (NFA)            cooperation through the ASEAN
in the face of an increasing             Economic Integration Support
global concern over another              Programme (AEISP) was unveiled
food crisis following a series of
climate-related calamities affecting
food producing countries.                                                     "We will also reiterate the Supreme
                                                                              Court decision upholding EO 156
PHL benefits from PJEPA
The Philippines has benefited from            POLICY                          and banning the importation the
                                                                              importation of right hand drive
the implementation of the                                                     used vehicles," Leaño said.
Philippines-Japan Economic
Partnership Agreement (PJEPA)                                                 Leaño explained that the new IRR
in terms of trade and investments         BOI crafts IRRs on imported         on used motor vehicle imports for
as the government reviewed the            used vehicles, motorcycles          EO 877-A cannot outrightly ban the
country’s first bilateral free trade      The Board of Investments (BOI)      importation of used motor vehicles
agreement in preparation for the          has come up with the implementing   because there are exemptions
renegotiation process scheduled           rules and regulations on the        provided under the previous MVDP
this year.                                importation of second hand motor    or EO 156, but said the new EO
                                          vehicles and motorcycles, two       has put more safeguards this
Department of Trade and Industry          components in the Motor Vehicle     time like requiring the imported
(DTI) Undersecretary Adrian               Development Program (MVDP).         used vehicles to pass through
S. Cristobal, Jr. said indicative                                             roadworthiness tests and other
statistics provides favorable positive    BOI Executive Director Efren V.     compliance requirements on safety
results of PJEPA to the Philippines.      Leaño said the Implementing         and environmental standards
                                          Rules and Regulations (IRR) on      making it more difficult for used
Cristobal further said that despite       used motor vehicle importation      motor vehicles to come in.
Japan’s economic situation,               will reiterate the provisions of
several Philippine export products        previous MVDP under Executive       “The Department of Trade and
attained high growth rates with the       Order (EO) 156 and the new MVDP     Industry-Bureau of Product
implementation of PJEPA. Examples         under EO 877-A.                     Standards (DTI-BPS) and the Land
were semiconductors (126%);                                                   Transportation Authority, the
apparel and clothing accessories          Under EO 877-A, importation         government agencies directly
(110.13%); and ceramic products           of second hand vehicles will be     handling these requirements,
(107.41%.)                                allowed subject to exemptions       just have to implement the rules.
                                          provided under EO 156 which         These requirements were not
He also cited Japan’s increased           provisions on used motor vehicles   specifically stated under EO 156 so
investment performance in the             have been carried over under        we have to reiterate it under EO
Philippines after PJEPA took effect       EO 877-A.                           877-A,” he said.
in 2008. Data from the Board of

10                                                                                           Philippine Business Report
ASEAn tackles commodity prices           What the government will do,
The Association of Southeast             he said, is to monitor very closely

                                                                                                                  ON THe
Asian Nations (ASEAN) is now             the producers and retailers so
in discussions on the possibility        there will be no profiteering.
of coming up with region-wide
schemes that will help address
rising commodity prices.
                                         Internet banking surges
                                         in Southeast Asia
                                         comScore, a global source of
“The issue of increasing commodity       digital intelligence, released        IFeX Philippines 2011
prices was raised so there were          a survey showing a significant        Celebrate the flavors of the
discussions to make everybody            number of Southeast Asian people      world and unlock an exciting array
aware of this phenomenon that            resorting to internet banking.        of food finds that cater
could become a potential problem                                               to the global palate at the
and ASEAN as a whole should              comScore Southeast Asia Vice          8th IFEX Philippines which
take steps on how to address it,”        President Joe Nguyen said despite     will be held on 12-14 May 2011
Department of Trade and Industry         the stellar growth numbers,           at the SMX Convention Center
(DTI) Secretary Gregory L.               Nguyen said online banking has        in Pasay City.
Domingo said.                            room to grow in the Philippines,
                                         Indonesia, and Viet Nam.
The Philippines, he said, will
be moving away from excessive            "All three markets still have
importation of rice similar to what      relatively low usage reach
it did two years ago that caused the     relative to their population,"
price of rice to spiral, affecting the   Nguyen added.
rest of the region.

                   Southeast Asian Internet Banking Survey
                                                                               Feast your taste buds and sample
                                                                               more than the usual fare of savory
                                                                               culinary pleasures in this top-of-
   Country                   Number of Users                 % Increase        the-line food event where food and
                                                                               sourcing are turned into an entirely
                    January 2010         January 2011                          superb experience.

    Indonesia	        435,	000	            749,	000	              72%          IFEX Philippines provides gainful
                                                                               business opportunities for
    Philippines       377, 000             525, 000               39%          importers, exporters, retailers,
    Viet	Nam	         701,	000	            949,	000	              35%          wholesalers, and manufacturers
    Hongkong	            1.3M	                1.5M	               18%          eyeing both the local and
    Malaysia	            2.4M	                2.7M	               16%
                                                                               international markets.
    Singapore	        779,	000	            889,	000	              14%          Evolving and expanding, this event
                                                                               features shows within a show that
                                                                               highlight fresh ideas, valuable
                                                                               industry information, and exciting
                                                                               competitions and activities.
                                         desktop computers and computer
                                         peripherals to each of 775 public
                                         high school beneficiaries.
        SPeCIAL                          DTI Secretary Gregory L. Domingo
                                         said the Department has been
                                         spearheading the implementation
                                                                               Philippine Postal Permit No. 504

                                         of the project since 2001.
  P320-M aid from Japan                  The Phases 1, 2, 3, and 4 Mindanao
  to roll off PCPS components            component of the PCPS project
  for Luzon and Visayas                  have provided 4,139 public high
  The Department of Trade and            schools with computers which
  Industry (DTI) will roll off 8,525     reduced the computer backlog in
  personal computers and computer        secondary education from 75% in
  peripherals in Luzon and Visayas       2001 to 37% at present.
  through its Personal Computers
  for Public High Schools (PCPS)         The government of Japan’s
  program.                               approval of the project shows
                                         Japan’s strong support to
  The project will receive financial     information technology (IT)
  aid from the government of             education in the Philippines and
  Japan amounting to P320M.              recognition of its major role in
  PCPS Phase 4 will provide 11           global economy.

April 2011                                                                                                                   11
                                                                            GnP Growth Rate (%)                                                         GDP Growth Rate (%)
        economic                                               10

                                                                7                                                                          6
                                                                6                                                                          5
                                                                2                                                                          2
                                                                1                                                                          1
                                                                0                                                                          0
                                                                        3Q (2009) 4Q (2009) 1Q (2010) 2Q (2010)    3Q(2010)    4Q (2010)          3Q (2009)   4Q (2009)   1Q (2010)    2Q (2010)    3Q (2010)    4Q (2010)

            Consumer Price Index                                          Exports (In US$Billion)                                                    Imports (In US$Billion)
                         ( 2 0 0 0 base year)                       6                                                                      5.4

174                                                                 5                                                                      5.2
172                                                                 4                                                                       5
170                                                                 3                                                                      4.8
                                                                    2                                                                      4.6
164                                                                 1                                                                      4.4
162                                                                 0                                                                      4.2
       Sep-10   Nov-10     Dec-10   Jan-11   Feb-11   Mar-11             Aug-10    Sep-10    Oct-10   Nov-10      Dec-10      Jan-11               Aug-10     Sep-10      Oct-10      Nov-10       Dec-10   Jan-11

       Peso per US Dollar Rate                                                    Inflation Rate (%)                                                          Interest Rate (%)
                                                                                      (1994 base year)                                     4.32
                                                                5                                                                           4.3
 45                                                                                                                                        4.28
                                                                4                                                                          4.26
                                                                3                                                                          4.24
 44                                                                                                                                        4.22
43.5                                                            2                                                                           4.2
 43                                                             1
42.5                                                            0                                                                          4.14
       Aug-10   Sep-10     Nov-10   Dec-10   Jan-11   Feb-11             Oct-10    Nov-10   Dec-10    Jan-11      Feb-11      Mar-11                Sep-10      Oct-10    Nov-10      Dec-10       Jan-11       Feb-11

                                                                                                                                                               Entered as Third-Class Mail at the
                                                                                                                                                                      Makati Central Post Office
                                                                                                                                                                           under Permit No. 504
                                                                                                                                                                   valid until 31 December 2011

Editorial Team: Anne L. Sevilla, Editor-in-Chief • Vic S. Soriano, Assistant Editor • Cresenciano P. Par, Jam A. Hourani, Ariel
B . S a l c e d o , and H a z e l M a r y a m C . D i z o n , Writers • R e n C . N e n e r i a , Design Layout • M y r n a V. d e l o s R e y e s , Circulation.	  	
Philippine Business Report is published monthly by the Communications and Media Office (CMO), Department of Trade and Industry, 4F Industry and Investments
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                                                                                  April 2011                                                                               Philippine Business Report

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