Business News:
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Philippines slips in World Bank ranking on doing business
By Richmond S. Mercurio (The Philippine Star)
Updated October 29, 2015 - 12:00am
MANILA, Philippines - The Philippines slipped six notches in the World Bank’s latest report gauging economies in terms of ease of doing business despite reforms made by the government in expediting ways of starting businesses.
In the World Bank Group’s Doing Business 2016 report released yesterday, the country’s ranking dropped six notches to 103rd from last year’s 97th spot across 189 economies. The Philippines ranked 95th from the original report published last year but was revised to 97th to reflect a change in methodology.
The decline in the latest rankings likewise pulled the Philippines down one place to the 5th spot from the previous 6th among the Association of Southeast Asian Nations (ASEAN).
Singapore, which emerged on top of the ease of doing business list for the 10th consecutive year, Malaysia (18th), Thailand (49th), Brunei Darussalam (84th), and Vietnam (90th) were the top five Asean economies where doing business is easier than the Philippines.
Aside from Singapore and Malaysia, other countries in the East Asia and Pacific which were in the top 20 rankings are New Zealand (2nd), Republic of Korea (4th), Hong Kong (5th), Taiwan (11th) and Australia (13th).
East Asia and the Pacific is the second most represented region in the Doing Business 2016 report after Europe in the world’s top 20 economies.
Despite slipping in the rankings, the Philippines was recognized by the World Bank Group for making starting a business easier by streamlining communications between the Securities and Exchange Commission and the Social Security System and thereby expediting the process of issuing an employer registration number.
“A majority of economies in East Asia and the Pacific are undertaking reforms to further improve the regulatory environment for small and medium-sized enterprises. During the past year, 52 percent of the region’s 25 economies implemented 27 reforms to make it easier to do business,” the World Bank said.
The Doing Business ranking provides an idea on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations.
The report measures and tracks changes in regulations affecting 11 areas in the life cycle of a business namely, starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation.
It does not, however, measure all aspects of the business environment such as macroeconomic stability, corruption, level of labor skills, proximity to markets, as well as regulation specific to foreign investment or financial markets.
The World Bank said this year’s Doing Business report completes a two-year effort to expand benchmarks that measure the quality of regulation, as well as the efficiency of the business regulatory framework, in order to better capture the realities on the ground.
NCC expresses disappointment
The National Competitiveness Council (NCC), however, is not too pleased with this year’s ease of doing business outcome, saying the report has undergone methodological changes in four of the last five years which made it confusing and unreliable for measuring change.
“Despite our efforts to introduce reform projects to improve the ease of doing business in the Philippines, the International Finance Corp. shows different sets of scores and rankings every year due to a change in methodology,” NCC co-chairman Guillermo Luz said.
“The changes are applied retroactively so even prior years’ results are changed without our knowledge. This makes it difficult to tell whether we are on the right track or not using this instrument. It has become unreliable,” Luz said, questioning the relevance of the report’s diagnostic tool moving forward.
According to Luz, the NCC has made steady improvements by streamlining processes and introducing reforms across a wide range of the indicators.
“We have done so much to improve doing business in the Philippines. However, the Doing Business report doesn’t capture these initiatives and the constant methodology change and recalculation of ranking every year is of no help. We need consistency in the diagnostic tool to monitor ourselves, and better measure our performance,” Luz said.
“We’re not junking a too just because it tells us it’s getting worse. What we want is a tool that tells us accurately if we did well or worse,” he added.
With the Philippines’ five-spot plunge in this year’s ranking, World Bank official said the country remains a good place as far as doing business is concerned but it needs to step up further its game to address the tougher competition.
“I want to emphasize the Philippines has risen and you are now in a much tougher, much competitive environment. Even Hong Kong which is third ranked had four reforms last year. The top is moving all the time, therefore we have to move faster for the Philippines to gain ground,” World Bank Philippines country director Motoo Konishi said.
“There are questions on methodology, but one thing to emphasize though is the Philippines has been doing reforms, it simply needs to accelerate to compete with others in the neighborhood,” Konishi said.
IFC operations officer Roberto Galang said the Philippines going forward should be able to seize momentum by concentrating on a number of regulatory reforms in which many do not require the passage of new laws.
“Our rise from the 130s to our present position has put us in a very competitive neighborhood. The World Bank Group will intensify our cooperation with the NCC in further streamlining the ease of doing business in the country,” Galang said.
Purisima calls survey erratic, unsound
The Philippines lambasted yesterday the World Bank after its ranking in an annual gauge of business environment slumped to one of the lowest in Southeast Asia, calling the measure an “inappropriate” reflection of the country’s business climate.
Calling the World Bank-International Finance Corp.’s Doing Business (DB) Report “erratic” and “unsound,” Finance Secretary Cesar Purisima expressed dismay on the country’s six-notch slip— to 103rd from 97th— in the survey.
“The Philippines firmly believes that the Doing Business survey methodology of collecting sample data from one or only two cities makes it inappropriate to present the report as reflective of the state of doing business for an entire economy,” Purisima said.
“Countries, especially developing ones like the Philippines, will have bright spots of promise in some areas and not in others,” he added.
A case in point are the country’s special economic zones, which the finance chief said are not being captured by the survey. These locators, managed by the Philippine Economic Zone Authority (PEZA), are granted numerous fiscal incentives in their operations.
The World Bank, for its part, has recognized this as one of the “limits” of the survey, which focuses only on each economy’s “largest business city.” Survey questionnaires were sent to businesses in covered areas.
A total of 14,233 respondents participated in the global survey in the latest report. In the Philippines, the survey was conducted in Quezon City.
“With this methodology, the DB survey should be more aptly titled as ‘Doing Business Across Cities’ to provide a better representation of the results of the report,” Purisima said.
Purisima, who is the country’s governor in the World Bank Group, also criticized the survey’s “erratic methodological changes year after year” which tended to affect even the previous years’ results.
An example is the Philippines’ place last year, which changed to 97th in the current report from 95th when it was first reported. The country ranked 134th in 2011, the first full year of the Aquino administration. –
with Prinz Magtulis
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Philippines slips in World Bank ranking on doing business | Business, News, The Philippine Star | philstar.com
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PAL revives talks with strategic investors
By Louella D. Desiderio (The Philippine Star)
Updated October 29, 2015 - 12:00am
MANILA, Philippines - Philippine Airlines (PAL) is in talks to bring in a strategic investor to support the company’s expansion plans.
PAL president and chief operating officer Jaime Bautista told reporters that while the carrier is not in a hurry to get a strategic investor, its financial adviser is currently in talks with potential investors.
“We are considering some,” he said, but declined to name the parties being considered citing confidentiality agreements.
PAL is looking for a strategic investor as it looks to expand its operations in the international markets.
“As we expand, as we take delivery of more airplanes, as we compete in Asia, the US, Europe, we will need that (investor),” Bautista said.
According to Bautista, PAL is aiming to be the preferred carrier in all the markets where it operates and so, it would need the help of a partner in growing its presence in certain areas. “(We need) companies that will help us grow our market,” he said.
For instance, partners from Europe who can carry PAL’s passengers from London and beyond would be welcome as the carrier wants to serve more passengers in that region.
While PAL would also want to grow in the domestic market, Bautista said there is limited capacity to expand operations given congestion in the airport.
PAL is spending about $500 million to $700 million next year to take delivery of five Airbus A321 aircraft as well as two Boeing 777-300ER in line with its plan of expanding its services.
For this year, the carrier has already taken delivery of five new A321 aircraft.
The company is also evaluating a plan to purchase new aircraft for long-haul flights to replace its Airbus A340s which consume more fuel and are costlier to maintain.
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PAL revives talks with strategic investors | Business, News, The Philippine Star | philstar.com
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Stocks take breather ahead of US Fed meet
By Iris C. Gonzales (The Philippine Star)
Updated October 29, 2015 - 12:00am
MANILA, Philippines - Share prices took a breather yesterday, declining 36.50 points as investors took their cue from regional slump ahead of the US Fed meeting.
The Philippine Stock Exchange index (PSEi) settled lower at 7,289.26 points, while the broader All Shares index slid 12.29 points, or 0.29 percent, to end at 4,189.25.
Total value turnover reached P39.152 billion in a session that saw a close race between decliners and advancers, 87 to 84, in favor of advancers. Thirty eight stocks were left unchanged.
Analysts attributed the decline to the regional slump ahead of the US Federal meeting.
The US Fed is expected to issue a policy statement at the conclusion of a two-day meeting on Wednesday and is again expected to hold off its first rate hike in nearly a decade until next year.
Analysts said the Fed would have a difficult time convincing investors that it can tighten monetary policy before the end of the year in the face of US and global economic headwinds.
Many investors had expected the rate hike last September but the US Fed decided to keep rates unchanged.
Elsewhere in the region, Hong Kong’s Hang Seng fell 0.6 percent while South Korea’s Kospi declined 0.4 percent and Shanghai stocks also shed 0.7 percent.
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Stocks take breather ahead of US Fed meet | Business, News, The Philippine Star | philstar.com
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Military and Defense News:
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Philippine FA-50s to appear on AFP’s 80th founding anniversary
Philippine News Agency
October 28, 2015
There is a very high chance that the South Korean-made F/A-50 “Fighting Eagle” will be making an appearance during the 80th founding anniversary of the Armed Forces of the Philippines (AFP) in December. Department of National Defense (DND) spokesperson Dr. Peter Paul Galvez during an interview Thursday, said, “ninety percent the (first two) F/A-50s will play a role in the coming 80th AFP founding anniversary.”
Galvez said that it is very likely that the F/A-50s will play the centerpiece of this year’s celebration.
“I don’t know whether the planes will perform a high-speed pass or not but I know the aircraft will be the centerpiece of the celebration,” the DND spokesperson disclosed.
The Philippines contract with Korea Aerospace Industries is worth Php18.9-billion.
The 12 aircraft deal was signed last February 2014.
An initial two units is expected to be delivered by December this year.
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Philippine FA-50s to appear on AFP’s 80th founding anniversary | Ang Malaya Net
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Air Force expecting 6 AW-109E before 2015 ends: Acquiring spare parts
Philippine News Agency
October 26, 2015
In line with efforts to ensure the mission worthiness of all its available aircraft, the Philippine Air Force (PAF) announced that it is setting aside Php33,706,911.52 for acquisition of spare parts needed for the maintenance of the electrical systems of its AgustaWestland AW-109E “Power” attack helicopters.
Bid opening is on November 13, 9 a.m., PAF Procurement Center Conference Room, Villamor Air Base, Pasay City.
The PAF formally commissioned its first two attack AW-109Es last August 17. Another six are expected to be delivered before the end of the 2015. The Philippines signed an eight-unit attack AW-109E order with AgustaWestland in 2013 for Php3.44 billion.
The AW-109E is a three-ton class eight seat helicopter powered by two Pratt and Whitney PW206C engines. The spacious cabin is designed to be fitted with a number of modular equipment packages for quick and easy conversion between roles.
The aircraft’s safety features include a fully separated fuel system, dual hydraulic boost system, dual electrical systems and redundant lubrication and cooling systems for the main transmission and engines.
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Air Force expecting 6 AW-109E before 2015 ends: Acquiring spare parts | Ang Malaya Net
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Navy interested to acquire third Hamilton-class cutter
Philippine News Agency
October 25, 2015
The Philippine Navy (PN) is interested in acquiring another decommissioned Hamilton-class cutter from the United States Coast Guard (USGC). This was disclosed by Department of National Defense (DND) Undersecretary for Finance, Modernization and Materiel Fernando Manalo in a text message to the Philippine News Agency.
He made the statement when queried if the Philippines is interested in acquiring the services of the USCGC Boutwell, one of the 12 Hamilton-class cutters the US Coast Guard is phasing out in favor of the heavier and more modern National Security Council cutters of which five now are in service.
“I don’t know if Boutwell is the cutter the DND is proposing to acquire. What I know is the PN is interested in acquiring (an) additional cutter,” Manalo said.
The PN presently operates two ex-Hamilton class cutters, the BRP Gregorio Del Pilar (PF-15 and ex-USCGC Hamilton) and BRP Ramon Alcaraz (PF-16 and formerly the USCGC Dallas).
These two ships are the PN’s most up-to-date surface combatants and capable of patrolling the vast expanses of the West Philippine Sea.
Despite being armed with only a 76mm Oto Melara auto-cannon and small caliber weaponry, the Hamilton-class cutters are ideal for the PN since these are capable of sailing even in adverse weather condition and capable of housing naval helicopters aside from serving as a training platform for Filipino naval officers and crewmen expected to man the upcoming new SSVs and missile-armed frigates.
A Hamilton-class cutter has a gross tonnage of 3,250 tons, a length of 378 feet, beam of 43 feet, and draft of 15 feet. Its propulsion systems consist of two diesel engines and two gas turbine engines, giving it a top speed of 29 knots.
The ship has cruising range of 14,000 miles and a sea and loiter time of 45 days. It has a complement of 167 officers and men.
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Navy interested to acquire third Hamilton-class cutter | Ang Malaya Net
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Philippine 2016 Presidential Election News:
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Bongbong to Noynoy: Move on already
posted October 29, 2015 at 12:01
by Macon Ramos-Araneta
SENATOR Ferdinand Marcos Jr. said Wednesday that President Benigno Aquino III should move on as most Filipinos have moved on from Martial Law and forgiven his family following their election into public office.
The senator is the only son of the late President Ferdinand Marcos, who ruled the country for two decades, nine years of which were under Martial Law.
Since Marcos’ ouster in 1986 in the People Power Revolution, members of the Marcos family have been elected to public office, with the senator having served for more than 20 years. His older sister, Imee Marcos-Manotoc, is the governor of Ilocos Norte, while his mother, Imelda Marcos, is an elected representative of their province.
In an ABS-CBN public affairs program, Marcos was asked if being elected to public office was an indication that Filipinos had forgiven them, Marcos answered: “Perhaps yes. They are voting for us.”
Marcos said moving on was the key when Senate Minority Leader Juan Ponce Enrile, a key Martial Law figure that turned against the older Marcos, raised his hand when he officially announced he would run for vice president.
He said he and Enrile had talked about Martial Law, but added: “That was 30 years ago and many things have happened… Maybe we have both moved on.”
On Tuesday, the President said the Marcoses should apologize for the atrocities and transgressions committed by the late dictator against Filipinos during Martial Law.
Asked during the presidential forum of the Foreign Correspondents Association of the Philippines if the Marcoses have something to apologize for, the President replied: “ I have said that time and again for many decades, yes.” He said the Marcos children should apologize to the Filipino people.
Aquino picked on the senator for the alleged wrongdoings perpetrated during the regime of the former strongman from 1965 to 1986.
But the senator, who is running for vice president in the May 2016 elections, said he does not see why he and his family should say sorry for the horrors of Martial Law. He said his father’s administration did not intend the abuses that happened during that regime. He noted that the suffering was not a policy of the government led by his father.
“If we planned to hurt people or make them suffer, then of course, we will apologize.... If it indeed happened, that was not the plan of my father’s administration,” he said.
“What should I apologize for? Have I hurt anyone? If there is evidence that I did something which brought hardship and suffering, I am ready to apologize,” he added.
Aquino, whose father was assassinated during the Martial Law years, said he was confident that Filipinos would not return the Marcoses to Malacañang Palace.
Aquino also dismissed reports that there was a resurgence of support for Marcos in his vice presidential bid.
Aquino said the Marcoses could have told the Filipino people: “We had this opportunity to turn this country great as our father promised—it didn’t happen. We apologize. We want to make amends. That, I think, would have been acceptable. We are a forgiving people as a general rule. But they have statements that there’s nothing to apologize for.”
Marcos’s presidential candidate Senator Miriam Defensor Santiago quoted the Bible in support of her running mate: “The sins of the father should not be visited upon the son... Marcos should be given the chance to redeem himself because he won as senator.”
Santiago said this meant the greater majority did not oppose Marcos as a public servant.
“I have not seen prima facie evidence that he killed someone, raped someone or burned a house, that he violated the Penal Code. No allegation that he personally committed a crime. During the time of Martial Law, he was just a small boy,” said Santiago noting that there was no allegation that he sinned against his neighbor.
“We cannot punish someone on the basis of suspicion. I can’t support that as a lawyer,” said Santiago who was a Quezon City regional trial court judge during the Martial Law years.
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Bongbong to Noynoy: Move on already - The Standard
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