Volume 22 No. 04 April 2011
PEZA to surpass growth target
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,
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
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.
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
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.
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
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%
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 (%)
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
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
43.5 2 4.2
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
Building, 385 Sen. Gil J. Puyat Avenue, Makati City 1200, Philippines • Phone (+632) 895.3611 • Fax (+632) 895.6487 • To subscribe, e-Mail: firstname.lastname@example.org
Philippine Business Report
April 2011 Philippine Business Report