...the PH world class gateway

Philippines prepares for world-class airport

Ai Ballesteros
ASEAN Economist
30 November 2019

The Philippines is set to get its own world-class gateway after the National Economic and Development Authority (NEDA) on Friday cleared the consortium’s proposal to revamp the Ninoy Aquino International Airport (NAIA).

The NEDA’s green light was the last approval that needed to be obtained by the consortium, after which it will undergo a competitive bidding or Swiss challenge, where the government will invite more private companies to top the proposal.

The consortium is composed of Ayala Corp., Aboitiz Group’s Aboitiz InfraCapital Inc.,  Andrew Tan’s Alliance Global Group Inc., Lucio Tan-led Asia’s Emerging Dragon Corp., the Gotianuns’ Filinvest Development Corp., the Gokongwei Group’s JG Summit Holdings Inc. and Metro Pacific Investments Corp.

Should there be no bidder within the given time frame, the NAIA consortium will be paved the way for the construction so long as it secures the Department of Transportation’s notice to proceed. The consortium will be given a 15-year concession period.

“This will mainly for the enhancement of the passenger experience, improving the movement of people in the terminal buildings as well as the movement of planes,” NEDA chief Ernesto Pernia told the Philippine media.

In September this year, a high official from NEDA who declined to be named said Swiss challenge is likely to happen within the end of the year.

In July this year, NEDA returned the consortium’s offer to rehabilitate NAIA and required another round of revision.

The consortium was told to follow the operations and maintenance template of the Clark International Airport in Pampanga.

Prior to NEDA, the Department of Transportation already gave its go-signal saying the offer “was acceptable.”

The rehabilitation of NAIA was one of the Duterte administration’s priorities after suffering from worsening congestion in the past few years. It is servicing 40 percent more than its designed capacity.

Last year, listed construction firm Megawide Construction Corp. expressed its interest in participating in the Swiss challenge for NAIA rehabilitation.

Megawide, in partnership with Bangalore-based GMR, developed and currently operates the Mactan-Cebu International Airport.

...the expat builders of the nation

Expat Pinoy engineers to come home to build Metro Manila Subway: DOTr

ABS-CBN  News | 3 October  2019

MANILA - Dozens of Filipino engineers who are currently working on rail projects abroad are willing to go back to the Philippines to help build railways, particularly the Metro Manila Subway, the country's transportation secretary said on Thursday.

More than 60 Filipino railway engineers and technicians currently employed in Bahrain, Qatar and Denmark agreed to work on rail projects in the Philippines, Transportation Secretary Arthur Tugade told senators. 

The engineers said that they want to help build infrastructure in the Philippines, as well as be closer to their families.

"Pumirma ho sila ng mga application form. Basta maumpisahan lang yung subway project, given a reasonable time, they are ready to come back," Tugade said during a Senate hearing on his Department's budget. 

(They signed application forms. When the subway project starts, and they are given a reasonable time, they are ready to come back.) 

The Metro Manila subway broke ground in February this year but actual drilling of the subway tunnels is not expected to begin until November or December this year.

The underground rail system, which is the country's first, is among the flagship projects under President Rodrigo Duterte's P8 trillion infrastructure program.

The 36-kilometer subway will stretch from Valenzuela on the capital's northern end to the Ninoy Aquino International Airport, promising as fast as 30 minutes of travel time from end to end.

The government earlier said it hopes to open the first 3 stations in Valenzuela, Tandang Sora, and North Avenue before Duterte's term ends in 2022.

Kyodo News, however, reported that contractors and people familiar with the project said the government's target timeline may increase the total cost, while the acquisition of land for its stations could take longer than estimated

..the Asia's friendliest cities

Travel website recognizes Manila, Cebu as among Asia's friendliest cities


Alec Go
Manila Bulletin
25 September 2019

Manila and Cebu ranked 4th and 15th, respectively, in Big 7 Travel’s list which was released recently.

The travel website described Manila residents as “famously welcoming,” and the city a “friendly place to spend some time in.”

Roxas Boulevard, Manila (supplied)

“It’s a place where locals have a buzzing attitude and an eagerness to show off their city to out-of-towners,” the article stated.

Cebu City, on the other hand, was recognized for its “exuberant vibe” and the presence of multiculturalism among its residents.

Ayala Center, Cebu City

Kuala Lumpur, Taipei, and Chiang Mai were the hailed the top three friendliest cities in Asia.

Big 7 Travel said they surveyed their “social audience of 1.5 million” for the list.

There were no specific criteria given to respondents, but factors such as where they felt the most welcome and how easy they navigated the area either with the help of locals or not were considered.

Big 7 Media is a travel website that features content on food, travel, and hotels around the world.

...the China's Belt & Road biggest beneficiaries

Property development poised to win big with belt and road


RI investments in Southeast Asia are giving rise to huge oppurtunities in construction and real estate sectors.

Syed Ameen Kader
Zawya
16 September 2019 


China's ambitious Belt and Road Initiative (BRI) embarked on a new phase with the unrolling of BRI 2.0 by Chinese president Xi Jinping during 2nd BRI Forum in April. As China promises to address transparency concerns and open BRI to wider participation, one of the regions that can immensely benefit from this revamped programme is Southeast Asia.

BRI investments in new ports, railroads and highways in the region are expected to drive construction and real estate (CRE) developments in logistics, manufacturing and industrial sectors along those routes.

The biggest beneficiaries in BRI-related investments over recent years have been Thailand, Malaysia, the Philippines and Cambodia, said real estate consultancy Knight Frank in its report 'New Frontiers 2019.'

"For these markets and China, a capital injection brings mutual benefit: with infrastructure funding, the host country speeds up its economic expansion, while China gains new trading partners," said Justin Eng, Associate Director at Knight Frank Asia Pacific.

The report noted, over the past five years since the BRI's launch, $59.25 billion in Chinese-linked capital has been invested across the Southeast Asian transportation, real estate and logistics sectors; almost 3.5 times the $17.1 billion invested in the five years prior to BRI.

Accounting firm KPMG agrees that countries across Southeast Asia are experiencing rapid economic growth and high levels of public infrastructure expenditure.

"These dynamics are leading to an attractive and diverse range of opportunities in the construction and real estate sectors," said Andrew Weir, Regional Senior Partner, KPMG Hong Kong and Vice Chairman, KPMG China.

He said specific countries which are expected to see strong volumes of real estate development and construction activity in coming years include Vietnam, Thailand, the Philippines and Indonesia.

Within the real estate sectors, the logistics and industrial sectors will be the biggest initial beneficiaries, according to Knight Frank.

When a new port is built, Eng explained, there is a corresponding rise in demand for warehouses to store incoming goods prior to being transported inland.

"We are witnessing an uptick in client interest - especially from the global 3PLs - in exploring build-to-suit opportunities within these markets, especially around current major BRI projects," he said.

Trade connectivity

A major theme that is being observed right now in several Southeast Asian markets is investment in infrastructure that enhances people and trade connectivity to increase the scope for growth in domestic trade as well as industrial and agricultural exports.

"Thailand and the Philippines are good examples of this dynamic," said Michael Camerlengo, Partner, Infrastructure Advisory at KPMG Transaction Advisory Services.

In Thailand, he said, the Eastern Economic Corridor (EEC) is a special economic zone development initiative that is attracting a lot of attention. There are plans underway to connect the country with China, via Laos through high-speed rail infrastructure as well as the expansion of the U-Tapao airport and Laem Chabang Port.

"These connectivity projects will lead to significant industrial and logistics development and construction opportunities along the corridor," said Camerlengo.

Whereas, in the Philippines, he said the government has been embarking on its 'build, build, build' programme which is directed at improving and expanding infrastructure across the country. This includes a high volume of expressway and bridge projects related to better connecting the archipelago as well as reducing flood-related risks across the country.

"Similar to Thailand, these projects will lead to increasing transaction volumes in industrial and agricultural real estate in areas that are proximate to these enhanced and new networks," said Camerlengo.

Real estate investment

Over the last couple of years, Chinese real estate investors have shifted their focus away from the US to Europe and Asia as the country's economy and currency gained strength.

Chinese investment in US property assets dropped 64 percent in 2017 from 2016, to $5.9 billion, according to Real Capital Analytics (RCA) data, highlighted by Colliers in its report titled: The Dragon Spreads its Wings over Asia, released last year.

Conversely, the report added, Chinese investment in Asian property assets increased 34 percent to $12.5 billion, while Chinese investment in European property assets surged 336 percent to $18.7 billion, during the same period.

The report further noted that Chinese investment in Southeast Asia and South Asia reached $2.5 billion in 2017, nearly four times the level of 2016 and the second highest level ever (after $4.1 billion in 2013).

Looking ahead over five years, Colliers said China's ambitious "One Belt, One Road" project, coupled with the firm Chinese economy and RMB (Renminbi) strength, ought to drive Chinese investment in emerging Southeast and South Asian markets.

This was reflected in CBRE's China Investor Intentions Survey 2019 which revealed that Chinese buyers retain strong intentions to invest within Asia, partly due to opportunities to purchase assets in sectors expected to benefit from the BRI.

"Emerging Asian countries, such as Vietnam and Thailand, registered increasing interest from Chinese investors. The survey found 46 percent of respondents chose Emerging Asia as a most preferred investment region, 4 ppts higher than last year," said Sam Xie, Head of Research at CBRE China.

He said Southeast Asia continued to benefit as labour intensive manufacturers relocate supply chain out of China.

"Riding on this trend, Chinese logistics developers and investors continue to develop logistics infrastructure and build supply chains in emerging Southeast Asia in anticipation of growing demand," said Xie.

Meanwhile, he added, the residential markets in many Belt and Road countries are emerging to be preferred destinations for Chinese investors.

While there's currently no forecast or projection in terms of investment volumes (as all outbound investment activities are subject to state approvals), Zhang of Cushman & Wakefield pointed out that China outbound real estate investment into belt and road averaged around $3 billion (excluding infrastructure) for the past six years.

Daniel Yao, Head of Research East China at JLL agreed that there are increasing interests from Chinese developers (but not many from domestic institutional funds so far) seeking opportunities of buying land plots over the past couple of years in Southeast countries, including Vietnam, the Philippines, Cambodia, and Indonesia.

According to RCA data, Chinese real estate investment volume for development sites in Malaysia and Thailand has been $73.84 million and $25.78 million respectively in the first half of 2019.

This comes after Chinese investors spent $87.69 million and $27.62 million in Cambodia and Indonesia respectively for real estate transactions for the whole of 2018, according to RCA.

"China, and its key cities, in particular, are growing connections with other countries and cities, not only under the umbrella of BRI but also in more organic ways," said Yao.

For Chinese developers, he said, residential and commercial (especially for office-use) land plots in both mature and emerging locations are the most sought-after.

Mitigating risks

While most of the concerns about BRI including debt trap are primarily related to mega infrastructure projects involving government entities, real estate projects executed through joint ventures (JV) between Chinese and local companies are also prone to risks.

"One major risk we see is political in nature such as a change in government," said Eng of Knight Frank.

Richard Fu, Senior Associate Director, Belt and Road Outbound Consulting Team, Consulting Department, Cushman & Wakefield, said political risks are difficult in BRI investments.

"Getting China investors and local partner to reach an effective partnership is also difficult. To ensure economic feasibility, we would suggest investors to have deep and systematic study before conducting actual investment," he said.

Eng pointed out that the 'debt trap' concern mainly involves local governments who undertake the project with a Chinese state-owned enterprise partner.

In order to safeguard themselves, he suggested that local companies undertaking BRI projects should conduct their proper due diligence before making major capital expenditure decisions.

"While major projects are unlikely to be cancelled once announced, they could face major delays in completion which in turn will lower returns to investors," warned Eng.

KPMG's Weir pointed out that there are always risks associated with development projects, BRI included.

"Whether construction-related, regulatory, commercial or people related, all risks need to be carefully identified, assessed, quantified and mitigated before proceeding with a new development," he said.

By way of example, Weir said, a common people-related risk on BRI projects includes navigating cultural differences and similarities as a foreign investor into a new market.

When it comes to commercial risks, he said identifying the customer demand profile for the project is key - whether it be office, residential, hotel or retail development, adding that identifying who the end-users will be, what their requirements are and expected demand levels will ultimately determine the prospects for financial success and key risk factors to address.

"Once this dynamic is well understood, assessing the optimal debt and capital structure that will be sustainable in the long run becomes a more straightforward proposition," said Weir.

From an investment perspective, said Zhang of Cushman & Wakefield, forming a JV with the local developer seems to be a most effective way of adapting to local markets and mitigating potential risk in planning, construction and sale/lease.

Additionally, Knight Frank's Eng said they are starting to see greater scrutiny now on how the BRI label is being used on projects across the region and how their structures (both debt and partnerships) are being assembled.

(Reporting by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

...the role of NGO in Philippine infrastructure development

How NGOs are Improving Infrastructure in the Philippines



Sean Galli
Borgen Magazine
06 September 2019

SEATTLE, Washington — The Southeast Asian nation of the Philippines, an archipelago of approximately 108 million people, has recently become quite economically viable. From 2017 to 2018, its global competitiveness score jumped from rank 68 to 56 out of 140 nations indexed by the World Economic Forum. However, the country’s infrastructure lacks the vitality of its overall economy, ranking at 92 out of 140 in the same report.

Improvements in infrastructure would lift the Philippines’ average global competitiveness score. With the U.S. Trade Representative reporting $29.6 billion in 2017 U.S.-Philippines trade, there are also lucrative American opportunities if infrastructure capable of supporting businesses were to grow. Fortunately, infrastructure in the Philippines is a focus of President Rodrigo Duterte’s administration. Unfortunately, financial difficulties accompany this initiative, which is why more NGOs are shifting their focus to infrastructure aid for long-term growth.

Build, Build, Build

President Duterte plans to make his mark on Filipino history with his “Build, Build, Build” campaign, an aggressive infrastructure development plan that includes 75 projects and costs $180 billion. It is part of a larger platform of economic development that President Duterte hopes will reduce poverty to 17 percent by 2022.

The effort mobilized a large part of the Filipino economy, and even prominent Filipino billionaires are pitching in. Forbes described a 7 percent GDP growth in 2017. Ramon Ang, one of the aforementioned tycoons and the largest shareholder of the San Miguel Corporation, offered to build the $13.8 billion Manila Bay Airport in a proposal approved by the government in late 2018.

Minor Development Issues

Despite the economic reinvigoration, billionaires cannot fund everything, and massive government investments spawn fiscal difficulties. Specifically, the Philippines suffers from a growing deficit, growing inflation and difficulty starting and operating businesses. The Asian Development Bank noted that the Philippines’ deficit jumped from 0.7 percent of GDP in 2017 to 2.4 percent in 2018. Growth in spending on infrastructure in the Philippines also contributed to inflation, which rose to 5.2 percent in 2018. However, it is expected to drop down to 3.5 percent by 2020.

All of this affects business development, which has suffered amid rising costs. Out of 190 nations, the World Bank ranked the Philippines at 124 on its 2018 Ease of Doing Business score. It is particularly difficult to start a business in the Philippines because of building permits, registering property and rising taxes. In the effort to enhance business development with infrastructure, progress has actually stalled. Fortunately, there are NGOs working to amend the problem at the local and national level.

The Local Road

The Asia Foundation is one NGO currently improving infrastructure in the Philippines outside of the major cities. Established in 1954, its initial program, Books for Asia, ensured that Filipino college students received textbook donations. The organization has concentrated on education throughout Asia for most of its history. However, today, it is concerning itself with creating more democratic societies by means of fair elections and infrastructure.

The Asia Foundation with the Australian Embassy created Coalitions for Change (CfC) in 2012. Is the centerpiece of the NGO’s Philippines program. It addresses road connectivity issues under the advice of local businesses and provincial governments to allow ease of access and increased economic activity. By February 2018, it had partnered with 15 provinces and used $1.9 billion for 298 new roads.

Provincial governments also saved money on planning new roads after CfC orchestrated a memorandum signing between the Philippines’ national mapping service and the interior ministry. According to a CfC report, this memorandum opened opportunities for provincial governments to use GPS technology to construct maps. Without the cost of 6,000 Philippine Pesos (roughly $117) per map sheet for an accurate 11,000 sheet map, local governments have more economic freedom when it comes to infrastructure in the Philippines.

The National Stage

The Asian Development Bank (ADB) uses a nationally based financing strategy to help its home country of the Philippines. Starting in 1966, it worked to implement its agenda of infrastructure and human development throughout the Philippines. ADB has completed 682 lending and assistance projects worth a total of $19.3 billion to date. Similar to The Asia Foundation, transportation comprises a significant chunk of their assistance. They devoted $2.05 billion and 79 projects to transportation alone.

Transportation infrastructure is a priority going forward as well. The ADB’s May 2019 announcement of a $2.75 billion loan for the Malolos-Clark Railway Line that will connect Clark in the Central Luzon region to Manila in order to reduce immense congestion on the roads into the capital. This type of assistance can drop rapid government spending on large projects. The ADB already predicts a 0.1 percent drop in the deficit in 2019 and 2020.

Despite the financing issues, the future of infrastructure in the Philippines looks bright. The work of The Asia Foundation and the ADB promises more sustainable solutions for infrastructure development. Cost-effective methods ensure that the Philippines does not make business more difficult while it simultaneously attempts to improve it. With more fiscally wise future aid, the Philippines’ roads and railways can propel more Filipinos to success.

...the PH growth punch

Philippines jabs for growth after Yolanda knockout

 

By Carmina Reyes,

ABS-CBN News

03/26/2014

 

 

MANILA – Like its boxing icon Manny Pacquiao, who was shockingly knocked out by an opponent but found redemption in his next fight, the Philippines should bounce back in 2014 after a deadly blow by typhoon “Yolanda” last year.

Three foreign institutions in separate reports said they expect the Philippines to maintain a strong growth rate this year, boosted by the government’s infrastructure projects and reconstruction program in the aftermath of the typhoon.

But for the Philippines to finally advance to another boxing division like Pacquiao, the Philippines must quicken its pace of project implementation.

“Our Philippines research highlights that the greatest single threat is disappointment with the administration due to slow pace of implementation,” said Australia’s Macquarie, which two years ago had set up with Philippines’ Government Service Insurance System (GSIS) a AUS$625-million fund to invest in infrastructure projects in the country.

Macquarie sees the Philippines maintaining a 6%-6.5% growth rate this year, while World Bank forecasts growth domestic product (GDP) growth rate at 6.6 percent.

DBS, Southeast Asia’s largest bank by assets, even raised its GDP growth forecast to 6.6% for 2014 from the previous estimate of 6.5%.

“The economy is largely unhurt from the devastating typhoon at the end of last year. If anything, the reconstruction efforts taking place in the first-half of 2014 will likely provide another boost to GDP growth momentum,” DBS economist Gundy Cahyadi said.

The country’s full-year GDP in 2013 grew 7.2%, higher than the government’s expectations of 6-7%, despite being struck by the one of the strongest typhoons to ever make landfall.

Construction of the 15-kilometer Metro Manila Skyway 3 project has started, but there are other transportation infrastructure that need to be implemented: the NLEX-SLEX connector road of the Metro Pacific group, and the Integrated Transport System (ITS) terminals.



World Bank country director Motoo Konishi said the $8 billion reconstruction program launched recently by the government will reduce the negative impact of typhoon Yolanda.

“The disruption to economic activity in the affected areas will pull down growth through lower consumption, but a speedy implementation of the Reconstruction Assistance on Yolanda (RAY) program would partially offset the decline in consumption and keep GDP growth strong at 6.6% in 2014 and 6.9% in 2015,” World Bank said.

Punches and headbutts

World Bank, however, warned that a slower global recovery and the end of quantitative easing in the US could release a torrent of punches to the economy.

Slower growth in high-income countries and in China would translate into lower demand for Philippine export products. China accounted for 12% of Philippine exports in 2012.

As to how America’s quantitative easing could impact the Philippines, here’s a quick recap: The US Federal Reserve began its asset buying program in November 2008, purchasing US Treasury notes and mortgage-backed securities, and issues credit to the banks' reserves to buy the bonds.

The purpose of this expansionary monetary policy is to lower interest rates and spur economic growth.

The program is now on its sixth year and since January, instead of buying $85 billion a month in bonds, as it has been doing since September 2012, the Fed has lowered its purchases to $75 billion in bonds each month.

The Fed is expected to gradually cut back on the bond purchases throughout this year so it can completely wind down its stimulus program. The rise in rates will likely pick up pace when the Fed finally raises its key overnight lending rate, which has been near zero since late 2008.

Last week, Fed Chair Janet Yellen, in a press conference following the first policy meeting that she chaired, said the Fed will probably end its bond-buying program next fall.

Kendrick Chua, World Bank senior economist for the Philippines, said the scaling back of quantitative easing in the US could result in higher borrowing costs in the Philippines.

This can impact on those who borrowed money to purchase houses or real estate assets. In case the interest rates rise sharply, some people may not be able to pay the amortizations and their properties may end up getting foreclosed.

The Bangko Sentral ng Pilipinas (BSP) is scheduled to hold a policy meeting March 27. Last week, BSP Governor Amando Tetangco told reporters an "early" and "gradual" adjustment in monetary policy stance rather than "discreet movements" would be less disruptive to businesses.

The BSP’s overnight rate has been at a record low of 3.5% since October 2012 when it was cut by 25 basis points.

Chua said that while businesses and households may be affected, the overall impact on the Philippines is expected to be manageable.

"The country continues to benefit from strong macroeconomic fundamentals, characterized by low and stable inflation, healthy external balances, and improving government finances. These strong fundamentals will continue to shield the economy," Chua said.

Going the distance: Tourism, Sciences

Will be the Philippines mirror Pacquiao, who started as a brawler, but later emerged as a skilled ring warrior?

To remain competitive, Macquarie said the Philippines must avoid or at least minimize the tendency of losing competitiveness in one segment before building competitiveness in other areas.

“The Philippines should improve competitiveness in a number of key agribusiness and metals/mining sub-sectors while maintaining and improving competitiveness in electronics,” Macquarie said.

“In addition to merchandising trade, the Philippines has in our view a significant untapped potential in services exports beyond BPO.”

In the context of IT-BPO (business process outsourcing), the industry continues to expand rapidly. IT-BPO revenues increased by 17% in 2013 and have reached $15.5 billion.

Although the growth rates are likely to taper-off, there is no doubt that the industry has multiple avenues of expansion.

The challenge is to continue diversifying away from voice and into faster areas of growth such as: back-office IT services; engineering & healthcare services; and higher value-added applications, such as animation, Macquarie said.

While the Philippines control almost 30% of the global voice BPO market, the country’s overall share of IT exports remains at around 1%, with clearly significant room for growth.

Fortunately, the current administration, which will be in power until June 2016, remains popular, according to Macquarie.

“Although net ratings are down somewhat, they remain considerably ahead of two other long-lasting administrations and there is an overall feeling of popular consensus for reform," Macquarie said.

 

...the ASEAN trade hub

Purisima wants Phl to become Asean trade hub

 

By Zinnia B. dela Peña

The Philippine Sta

February 2, 2013

 

 

                                                                     Purisima

MANILA, Philippines - The government is stepping up the development of the country’s infrastructure as it positions the Philippines as a trade hub between the Association of Southeast Asian Nations (ASEAN) members and the markets they serve, a top economic manager said.
  
Speaking before the French business delegation yesterday, Finance Secretary Cesar V. Purisima said improving the infrastructure, sustaining financial and macroeconomic stability and Filipinos’ per capita income are the priorities of the Aquino Administration as the country seeks new heights in its economic transformation.
  
“We need to make a leap in terms of infrastructure. If we don’t invest, we’ll not be able to harness the potential that’s before us. We need to attract private capital and technology to help us improve our infrastructure, tourism and agriculture,” Purisima said.

“We are accelerating our efforts to build our infrastructure such as our ports, airports, power, mass transit because infrastructure is important to make sure we’re as efficient as our neighbors...We want to be a hub of Asean trade,” Purisima said as he noted that more Asean countries are becoming strong contenders

Purisima underscored the need for the country to aggressively position itself as the destination of choice of both investors and tourists as well as to continue to find ways to show the world that the Philippines can deliver more than just fun.


The Philippines, with a growing population, is a good source of manpower in the global market, Purisima noted.

Purisima said the Philippines needs to integrate with the Asean and improve its business climate for it to become a hub in the region.

 

He noted that the Department of Finance (DOF) will continue to provide more funds for government projects aimed at pump-priming the economy while at the same time addressing the delivery of basic services and limiting the country’s budget deficit to only two percent of gross domestic product starting this year until 2016.

The Southeast Asian region, with a population of over 600 million people, is seen to become a major economic growth force in Asia when the planned regional common market of Asean countries is established by 2015.

This will significantly reduce the cost of production for the businesses and economic growth of member-countries and of the entire region will accelerate.

Under the Asean integration plan, tariffs on most goods coming from member-countries will be brought down to zero or near-zero, their financial systems will be integrated, and employment restrictions will be eased.

The integration is seen to open more regional cooperation and will improve the scale efficiencies, dynamism and competitiveness of Asean members. It wll enable easier movement of goods, services, investment, capital and people and will ultimately offer new ways of coordinating supply chains, or access to new markets for established products.

...the Philippines rebranded

“Philippines is worth the price of admission”

published by asingh

Asian Pacific Post

Tue, 01/29/2013

 

 

President Benigno Aquino III has pitched to the international investor community the Philippine story of transformation from being a “sick man of Asia” into one dynamic country bucking a global economic downturn.

 

“What we offer you today is a Philippines where change has set in. That, perhaps, is the single most compelling reason to come in and invest in our country,” Aquino said in a roundtable meeting with global business executives at the World Economic Forum recently..

 

The President invited investors to participate in three rapidly growing sectors in the country-agriculture, tourism and infrastructure.

 

“Those who have already bet on the Philippines have not been disappointed; they have seen the sincerity of our commitment to restoring integrity and leveling the playing field.

 

“This is a commitment we intend to keep with all who want to conduct honest, fair business in the Philippines,” he said in the business forum organised by Credit Suisse.

 

Aquino told prospective investors he couldn’t promise a completely risk-free environment, noting that any worthwhile endeavour was not without its risks.

 

Nevertheless, he said the “sick man of Asia is now revitalized, more dynamic than it ever was in its history, marching toward equitable progress.”

 

Contrasting his administration from that of his predecessor’s, when he said decisions were based on political factors-mainly, on the desire to stay in power-he said the government was now earnestly refocusing efforts toward leveling the playing field, minimizing regulatory risks and investing in people.

 

He said the government was empowering the Filipino through health, education and conditional cash transfer programs that would aid their transition from being below subsistence living toward gainful employment.

 

“We already know that, given the right environment, the Filipino is able to thrive; how many of you have ridden cruise ships or stayed in hotels manned by Filipinos? How many have been awed by the creativity, loyalty and professionalism of our workers in the business process outsourcing industry?”

“In a world increasingly dominated by uncertainty and pessimism, is it not refreshing to witness a country full of optimism, experiencing positive, meaningful change and inviting everyone in to ride its momentum?”

 

The President again referred to his administration’s thrust of eliminating corruption as a means to drastically reduce poverty and open opportunities for both the Filipino people and business, thereby allowing the Philippines to achieve inclusive growth.

 

On efforts to level the playing field, the President said that when contracts are no longer awarded arbitrarily, and when the rule of law applies to all, a sense of justice and fairness naturally takes over.

“Among investors, in particular, this instills confidence: That the Philippines is worth the price of admission,” he said.

 

In the first three quarters of 2012, the domestic economy has grown by an average of 6.5 per cent, much faster than the 4.9-per cent trend growth during the nine-year Macapagal-Arroyo administration. The stock market has trebled in the last four years to record highs.

 

“These are truly exciting times for our country. We are realizing the long-untapped potential of our country and we are here to invite you to join us,” he said.

 

On the priority areas for investment, Aquino said tourism and agriculture were crucial because they play into the key strengths of our country-an abundance of natural resources-and because they tend to spur growth all over the archipelago, not merely in urbanized areas.

 

Since he came into office, he said the government had been working towards rice self-sufficiency by going back to the basics and helping our farmers through improved irrigation systems and a genuine certified seeds programme.

 

“As we focus on the basic needs of our farmers, we have not lost sight of the value of innovation, and of moving up the value chain,” Aquino said.

 

“For example, coco coir and coco water used to be considered as waste. Today, they are the reasons behind the revitalization of our coconut industry,” he said.

 

In 2009, Aquino said the Philippines exported a total of 483,862 liters of cocowater.

 

By 2011, this has increased exponentially to more than 16.7 million liters of cocowater.

 

“Coco coir fiber, transformed into geotextile materials, has among others, been found effective in erosion control,” he said.

 

The Department of Publics Works and Highways (DPWH) is already using this technology in their projects, and investments into the coco coir industry reached P293.75 million pesos(C$8.85 million) in 2012.

 

On tourism, the President mentioned the Department of Tourism’s “It’s More Fun in the Philippines” campaign and noted favourable tourism reviews from publications like Conde Nast Traveller, the New York Times, and Travel + Leisure Magazine.

 

In 2012, he said there were 4.3 million tourists that visited the country, a little short of the 4.6 million target which he said was a consequence of some political tension in the region, referring to the territorial dispute between the Philippines and China.

 

“In spite of this, though, China’s Oriental Morning Post named my country the ‘Best Tourist Destination’ in its annual World Travel - Special Trips awards, and the Shanghai Morning Post identified the Philippines as the “Most Romantic Destination” in the world-an award surely inspired by the magnificent sunsets over our numerous white sand beaches, or the pristine, secluded coves dotting our many islands,” he said.

 

The hotels that have been sprouting up around the Philippines in the past two years are proof positive of the tourism boom, Aquino said, noting that an additional 1,599 rooms have been built in Boracay. “So, whether you want to come to the Philippines for business or for leisure, we will gladly accommodate you,” he said.

 

Infrastructure is also seen as a prority in attracting investments. The President acknowledged that this was the key to further growth and development in tourism and agriculture, among other sectors.

“For example, a lack of paved roads or even adequate transportation hubs redounds to longer traveling time: imagine how much the quality of produce will suffer in two to three days of road travel, or even the difficulty that tourists will have in reaching the more far-flung parts of my country,” he said.

 

Aquino cited the World Economic Forum’s Global Competitiveness Report which showed that the Philippines was lagging behind Southeast Asian neighbours in terms of quality infrastructure, including the quality of roads. “This presents an opportunity, because we are committed to closing this gap and increasing our competitiveness,” he said.

 

Last year, Aquino said disbursements for infrastructure reached US$4.9 billion and another US$5.7 billion is allotted for this in 2013.

 

“Part of this allotment will go to the complete paving of our national road network by 2016. Since 2010, our DPWH has already completed 28 per cent, or 2,006 kilometers, of the 7,256 kilometers of national arterial and secondary roads that needed paving,” he said.

 

The President added that the country was seeking to boost connectivity all around our country through the following: train systems in Metro Manila; expressways that cut across the National Capital Region and reduce travel time drastically; the construction improvement of both domestic and international airports, as well as the exploration of a new nautical highway that could cut travel time between Luzon to Mindanao, from three days to 15 hours.

 

“We are exploring opportunities for the private sector to join us in these endeavours, and we hope that you will consider partnering with us in the future, towards our mutual benefit,” Aquino said.

...the PH property market

Philippines' property boom shows no sign of slowdown

By Christine Ong
Channel News Asia
28 January 2013

MANILA: A property boom in Metro Manila, described as the best in two decades, has pushed construction in the Philippines to its highest growth in at least six quarters.

The Philippines is experiencing a property boom like no other with developments covering office buildings, housing projects, hotels and new shopping districts.

This is all being fuelled by confidence in the Philippine economy which grew at a notable 7.1 per cent in 2012.

With the Philippine economy growing at an impressive pace, experts said there will be no slowdown in the demand for real property market as the country rides on strong macroeconomic fundamentals and investor confidence.

CBRE Philippines' chairman Rick Santos said: "We are seeing a very strong government. The Aquino administration is doing a very admirable job. The strong leadership and a strong cabinet have been reflected on the confidence of the foreign investors. A lot of countries around the world now are getting investment downgrades. In the Philippines, we are seeing investment upgrades so that is very positive. The Philippines is becoming this overnight success that took 20 years."

Property developers are now enjoying brisk sales with vacancy rates falling to its lowest on record.

In some cases, pre-leasing for office spaces are committed for the next two years.

The challenge now experts said is how to cope with the unprecedented success.

Jose Antonio, founder and chairman of Century Properties Group, Inc, said: "The challenge is actually not only for us as a company. The challenge for our country is how to sustain this growth. How do we sustain it? It is really to plough back all the income of both the private sector companies and the government into sustainable projects and relevant projects.

"For example, it is very important for the government to expand our infrastructure. There is a big need and we know it. (The government needs) to hasten the infrastructure program of the government."

The government has allotted a record budget of over US$9 billion this year to upgrade the country's roads, ports, bridges and airports.

Industry experts believe the aggressive infrastructure spending will further real estate growth in the country.

- CNA/fa

...the Heart of Asia

What Makes Philippines the Heart of Asia

Philippine Daily Inquirer

Saturday, January 26th, 2013

The country’s medical tourism industry is hoping to get another boost from the soon-to-be-released “Philippines: The Heart of Asia” travel guide.

The Philippines established its Medical Tourism Program back in 2006—and now, a little over six years later, we can say that while results have not been as quick as first envisioned, the country’s efforts to become a regional healthcare hub are slowly but surely bearing fruit.

A few years ago, the country was re-launched as a medical tourism destination under the brand “Philippines: The Heart of Asia” and the tag remains as true today as it was before. The Philippines really is The Heart of Asia in more ways than one.

As the Department of Tourism meets with success in presenting the country as one of the most desirable destinations in the region, especially through its “It’s More Fun in the Philippines” campaign—it will be recalled that the Philippines was included in several international “best destinations” lists in 2012—it can be reasonably expected that this will also help highlight the Philippines’ strong points as a medical tourism, healthcare, and wellness destination.

Hearts in the right place

Various research studies show that patients’ recover faster and feel happier when they receive compassionate care. Compassionate care, unfortunately, is often overlooked as more and more hospitals overseas struggle to save on costs and increase efficiency—this is the reason why Filipino nurses are in such demand the world over: Filipino nurses are not simply competent but also friendly, cheerful, caring, and compassionate.

Friendliness, compassion, caring, and cheerfulness are aspects of Filipino culture that every Filipino grows up with and imbibes. He or she learns it from parents, siblings, relatives and friends. This is because most Filipinos value relationships more than material possessions. Whether rich or poor, strong family bonds and smooth, mutually beneficial relationships among relatives and friends define the Filipino way of life.

Foreigners who visit the country as tourists, work here as expats, or choose it as their second home after retirement, all discover the warmth and hospitality that are unique to the Filipinos. These are attributes that medical tourism travelers discover when they receive treatment in the country’s hospitals and clinics.

English fluency

English is widely spoken in the Philippines as one of its official languages. English is the language used in education and business, and Filipinos in government agencies and the service industry are fluent in it. There are many English-language publications in the Philippines, including the major newspapers and magazines. There are also many English-language programs on television and Hollywood movies are regularly shown in theaters. Foreigners who speak English will have no difficulty relating to and transacting with Filipinos.

Top-notch healthcare facilities

Filipino doctors are expertly trained in the Western medical tradition and are up-to-date with the latest advances in medical science. Many of them have trained overseas, including the United States and Europe, and are affiliated with medical organizations in those countries.

The country’s top public and private hospitals are equipped with the latest in medical tools, machines, and technologies—the same equipment, if not better, as those found in the U.S. and Europe. The high standards of their facilities assure medical tourists that they are getting the same quality care, or better, as they would receive from their home countries.

This same high quality of care is found in the Philippines’ top specialty clinics that offer dental and aesthetic procedures.

Tropical paradise

With more than 7,000 islands in its archipelago, the Philippines is home to beaches and seaside resorts that provide relaxing, refreshing tropical paradise settings. There are natural landscapes of breathtaking beauty in the highland regions. Medical travelers will discover many picturesque places where they can enjoy their recovery.

Together with these various natural settings, the Philippines also offers all the modern conveniences needed for 21^st century living. From high-tech telecoms networks to cable TV, to Internet service, and highly urbanized, cosmopolitan areas with malls retail complexes offering local products and international brands.

World cuisine

Filipino food is a blend of Western and Eastern influences that include Spanish, American, Chinese, and Indian cuisines. With such a sophisticated palate, Filipinos easily welcomed the entry of Japanese, Korean, Thai, Italian and Continental food in the culinary scene. As a result, there are now so many different dining establishments that offer a gamut of authentic, gourmet fare.

More work ahead

As more of the country’s top hospitals make considerable investments in their personnel and facilities, the benefits to Filipino and foreign patients will also increase. There really is no other way to help the Philippines become a regional medical tourism hub except to make sure that its healthcare facilities are world-class.

One very important area that more Philippine hospitals need to get into is international accreditation. This accreditation is the most credible certification of a hospital’s, clinic’s, or wellness facility’s world-class quality standards.

When we talk about world-class healthcare certification or accreditation for hospitals and other healthcare facilities, we usually refer to accrediting bodies like JCI, NABH International, Accreditation Canada and others that are affiliated with the International Society for Quality in Healthcare (ISQua). The ISQua is the world body that accredits these accrediting bodies.

One ISQua-accredited body that has been giving generous support to Philippine hospitals is NABH International. Through its local affiliate, HealthCORE, the NABH International has been giving workshops to Filipino hospital administrators to help them learn how to meet ISQua standards, and assist them in the actual process of accreditation.

The success of the Department of Tourism’s campaign plus the increasing number of foreign patients being treated in the Philippines top hospitals prove that the country still has a bright future and great potential to be a medical, health, and wellness hub in the region.

To fulfill that potential, all stakeholders in the healthcare and travel sectors must get their acts together. Only then will the world truly realize that the Philippines is the Heart of Asia—a heart that gives care, compassion, life, love, and healing to those in need. – Ramil Digal Gulle, contributor