PH’s tourism industry more competitive – WEF survey · 2015-07-16 · Philippine ANALYST May...

Philippine ANALYST May 2015

36

BUSINESS

PH’s tourism industry more competitive – WEF surveyThe Philippines’ ranking in the World Economic Forum’s (WEF) Travel and Tourism (T&T) Competitiveness Index 2015 improved to 74th out of 141 countries from 82nd. However, infrastructure and business regulatory environment barriers need to be addressed if the Philippines is to break into the top one-third of economies surveyed.

And although the country’s ranking improved in the latest biennial survey, the Philippines did a better performance in 2013 when it advanced 12

notches from its standing in 2011 (see table 1). It can be noted that 2012 is believed to be the turning point of the local tourism industry as the Department of Tourism (DOT) launched the “It’s More Fun in the Philippines” marketing campaign, which has become well-known internationally.

WEF economist Roberto Crotti cautioned against “strictly” comparing this year's results to those of 2013, saying the methodology has been revised. The T&T Competitiveness Index primarily ranks countries across 14 pillars, showing how well countries could deliver sustainable economic and societal benefi ts through their travel and tourism sector. "While conceptually the 14 pillars…have remained substantially unchanged [in the 2015 survey], some measurement and methodological aspects have been reviewed," Mr. Crotti explained (see table 2).

Of the 4 sub-indices in the 2015 T&T Competitiveness Index, the Philippines ranked high in the T&T policy and enabling conditions and natural and cultural resources dimensions.

Among the 14 key tourism indicators, the country’s comparative advantage lies in price competitiveness, government prioritization of the tourism sector and international openness.

Price competitiveness includes all factors directly infl uencing the cost of travel – ticket fares, hotel prices, etc. Majority of the

Philippine-based airlines offer competitive air ticket prices while many hotels nationwide offer affordable accommodation prices.

In terms of prioritization, tourism is one of the priority programs of the national government this year. Out of the P2.6-trillion national budget this 2015, the government has set aside P35.2 billion (Tourism Development Program) to boost the potential of the Philippines as a premiere tourist destination. The government has also declared 2015 as “Visit the Philippines Year” to promote the country’s tourist spots.

37BUSINESS


TABLE 1

T&T COMPETITIVENESS INDEX 2009 (OUT OF 133 COUNTRIES)

2011 (OUT OF 139 COUNTRIES)



PHILIPPINES 86(65%)

94 (up 8 notches)(68%)

82 (up 12 notches)(59%)

74 (up 8 notches)(52%)

TABLE 2

T&T COMPETITIVENESS INDEX 2015 (PHILIPPINES) T&T COMPETITIVENESS INDEX 2013 (PHILIPPINES)

SUB-INDICES (A-D); KEY PILLARS (1-14) GLOBAL RANKING SUB-INDICES (A-C); KEY PILLARS (1-14) GLOBAL

RANKING

A. Enabling Environment 90 A. T&T Regulatory Framework 70

1. Business Environment 60 1. Policy Rules and Regulations 53

2. Safety and Security 128 2. Environmental Sustainability 83

3. Health and Hygiene 91 3. Safety and Security 103

4. Human Resources and Labor Market 62 4. Health and Hygiene 94

5. ICT Readiness 86 5. Prioritization of Travel & Tourism 15

B. T&T Policy and Enabling Conditions 17 B. Business Environment and Infrastructure 89

6. Prioritization of Travel & Tourism 27 6. Air Transport Infrastructure 69

7. International Openness 29 7. Ground Transport Infrastructure 89

8. Price Competitiveness 24 8. Tourism Infrastructure 92

9. Environmental Sustainability 122 9. ICT Infrastructure 96

C. Infrastructure 82 10. Price Competitiveness in the T&T Industry 24

10. Air Transport Infrastructure 67 C. T&T Human, Cultural and Natural Resources 64

11. Ground and Port Infrastructure 93 11. Human Resources 82

12. Tourist Service Infrastructure 82 12. Affi nity for Travel & Tourism 42

D. Natural and Cultural Resources 56 13. Natural resources 44

13. Natural resources 49 14. Cultural Resources and Business Travel 83

14. Cultural Resources and Business Travel 62

TABLE 3

ASIA PACIFIC COUNTRIES REGIONAL RANKING (ASIA PACIFIC) 2015 GLOBAL RANKING 2015 REGIONAL RANKING (ASIA

PACIFIC) 2013 GLOBAL RANKING 2013

Australia 1 7 2 11

Japan 2 9 4 14

Singapore* 3 11 1 10

Hong Kong 4 13 5 15

New Zealand 5 16 3 12

China 6 17 10 45

Malaysia* 7 25 8 34

South Korea 8 29 6 25

Taiwan 9 32 7 33

Thailand* 10 35 9 43

Indonesia* 11 50 12 70

India 12 52 11 65

Sri Lanka 13 63 14 74

Philippines* 14 74 17 82

Vietnam* 15 75 16 80

Bhutan 16 87 Country not included in 2013 survey

Laos 17 96 Country not included in 2013 survey

Mongolia 18 99 19 99

Nepal 19 102 22 112

Cambodia* 20 105 20 106

Pakistan 21 125 24 122

Bangladesh 22 127 25 123

Myanmar* 23 134 Country not included in 2013 survey*Southeast Asian countries included in the 2015 WEF survey on travel and tourism competitiveness

38 BUSINESS


Graph 1.

Graph 2.

39BUSINESS


In te rna t iona l openness meanwhi le measures the ease of obtaining visa requirements. Based on the latest T&T Competitiveness Index, the Philippines was the second most open country in the world.

However, the Philippines got poor marks in the enabling environment and infrastructure sub-indices. Also, the country remains in the bottom half of globally-competitive Asia Pacifi c countries, while it ranked 5th among the 9 Southeast Asian countries included in the survey (see table 3).

In 2014, the government logged 4.83 million foreign tourist arrivals, below the government’s target of 5 million and only a modest increase (3.21%) from the international tourists recorded in 2013. And while the infl ux of foreign tourists into the country has increased quite signifi cantly over the last 5 years, the growth in tourist arrivals is slowing down (see graph 1). Moreover, the Philippines is still lagging well behind its regional peers in terms of the volume of foreign visitors (see graph 2).

The DOT is target ing 5-5.5 mil l ion foreign tour is t arr ivals th is year, but get t ing them to come here in the first place still has to be addressed.

Aside from attracting foreign visitors, getting foreign investors into the country is also a challenge.

According to the WEF, investments are needed in digital connectivity and infrastructure to further boost the tourism competitiveness of the country. The Philippines currently ranks poorly in these 2 categories.

The establishment of a Department of Information and Communications Technology (DICT) is vital in developing the digital infrastructure of the Philippines. It is already in its fi nal stages as the Senate recently passed on third and fi nal reading a bill seeking the creation of a DICT while the House has reportedly assured the passage of its version of the DICT bill into law.

In terms of physical infrastructure, the government has allocated P16.2 billion to construct and upgrade 966 kilometers of roads and 1,228 lineal meters of bridges. However, the government needs to speed up construction and focus on implementing key infrastructure projects as more tourist arrivals are expected, especially with the upcoming ASEAN economic integration.

Tourism is the 4th largest source of foreign exchange earnings in the country. But to sustain this and to further develop the local tourism sector, the current administration and the next administration have to improve the country’s business climate, particularly on easing local business procedures, to entice more investors into the country.

Topping this year’s list was Spain, followed by France, Germany, the United States, the United Kingdom, Switzerland, Australia, Italy, Japan and Canada.

Based on the 2015 Ease of Doing Business Index survey of the World Bank, the Philippines has climbed 13 notches to 95th from 108th in the previous survey. However, in terms of ease of starting a business, the country fl unked at 161st – the worst among its regional peers (Malaysia ranking 13, Thailand 75, Vietnam 125, Laos 154, and Indonesia 155).

40 BUSINESS


Business confi dence improves in 2Q2015

The central bank reported that business confi dence in the country in 2Q2015 improved to 49.2% from 45.2% in 1Q2015. This growth indicates that businesses are more optimistic on the country’s economic prospects for the second quarter of the year compared to the previous quarter.

According to the Bangko Sentral ng Pilipinas or central bank, the overall Business Confidence Index (BCI) is computed as the percentage of fi rms that answered in the affi rmative minus the percentage of fi rms that answered in the negative with respect to their views on a given indicator.

The central bank attributed the improvement in business sentiment to the following:

Robust consumer demand during the secondary harvest and fi shing seasons, graduation and enrolment periods, and expected infl ux of local and foreign tourists during the summer season;

Increase in activities in the construction sector, particularly infrastructure-related government projects;

Increase in orders and new contracts/projects; Expansion of businesses and launch of new product lines and; Continuing confi dence in the Aquino administration.

Such factors were also lifted by sustained foreign investment infl ows, steady remittances from overseas Filipino workers, and expectations of more favorable microeconomic conditions such as stable infl ation and low interest rates.

Among all sectors, the construction industry was the most bullish. Construction fi rms are optimistic that the industry’s growth will be sustained as more public infrastructure projects were started during the second quarter. Construction activities related to power generation were also reported to be on the rise last quarter.

The services sector was also more upbeat generally on account of better economic prospects in the country. The positive outlook for the wholesale and retail trade sectors stemmed from respondents’ expectations of a surge in consumer demand

during the summer and enrolment periods, good harvest season, continued business expansion with new product lines and infrastructure development (both public and private), low oil prices, and a favorable business climate. Respondents from the industry sector attributed their optimism to the favorable weather conditions, the onset of the fi shing season, and expected increase in electricity consumption during summer.

For 3Q2015, businesses are less optimistic with 47.3%, lower than the 58.2% in the previous survey. Interruption of regular business activities during the rainy season, lower output (which leads to lower trade activities) during the planting season, increased market competition with the establishment of new businesses which could hurt existing small- and medium- scale businesses (e.g., shopping malls, hospitals), and lower consumer demand as households prioritize enrolment expenses were the respondents’ reasons for the less optimistic outlook.

In line with the more bullish overall business confi dence on the macroeconomy, the outlook of fi rms about their own business operations was more upbeat for 2Q2015 compared to a quarter ago. Notably, the outlook of fi rms across sectors and sub-sectors was more buoyant, except for those in the hotels and restaurants, and community and social services sub-sectors. Similarly, the outlook on volume of total orders was more robust across sectors and sub-sectors, except for those in the mining and quarrying; hotels and restaurants; and community and social services sub-sectors.

Despite staying in the positive territory, the number of businesses with expansion plans in the industry sector slightly fell to 29.1% from 32.5% in the previous quarter. On the other hand, capacity utilization — the relationship between their ideal and actual output — was marginally the same at 77.2% compared to 76.8% a quarter ago.

The 2Q Business Expectations Survey was conducted between April 1 and May 13, 2015. The respondents consisted of 606 companies in Metro Manila and 916 companies in areas outside Metro Manila. Respondents were drawn from the combined list of the Securities and Exchange Commission’s Top 7,000 Corporations in 2010 and BusinessWorld’s Top 1,000 Corporations in 2013. The response rate was 84.2%.

BUSINESS CONFIDENCE INDEX

Source: Bangko Sentral ng Pilipinas, Business Expectation Survey

41BUSINESS


MINING, OIL, & GAS

Davao city council bans mining

The Davao city council passed on third and fi nal reading last May 5 an ordinance banning mining activities in the city. Industry observers opposed the Davao mining ban as it contravenes the national law, and will push away potential investors thus depriving the local government of much-needed revenue.

The local resolution, known as “An Ordinance Closing off the City of Davao to Mining Operations,” disallows any entity to engage in any business involving mining operations within Davao. Nine voted in favor of the resolution while 2 voted in the negative and 5 abstained.

Section 5 of the local law states that "no approval shall be granted or issued by the city through its Sangguniang Panglungsod (City Council) to any person, natural or juridical, to undertake any and all forms of mining operation in any area within the territorial jurisdiction of Davao City.”

Anyone found guilty will be charged with administrative, civil or criminal cases with 1 year of imprisonment or a fi ne of P5,000.

However, the ordinance still allows quarrying in the city except in prohibited areas covered by the Davao City Watershed Ordinance, which includes the following rivers in Davao: Sibulan, Lipadas, Talomo, Tamugan, Cugan, Suawawan, Matina, and Bunawan. Quarrying is extracting “any common rock or other mineral substance that the Mines and Geosciences Bureau may declare as quarry resources,” and other nonmetallic minerals such as clay, limestone and sand.

In an earlier report, the Mines and Geosciences Bureau (MGB) reminded the Davao city council that a local ordinance on mining cannot be superior to the national law on mining or the Philippine Mining Act of 1995.

Echoing the same sentiment is the Joint Foreign Chambers (JFC) saying that pending House bills banning mining in certain provinces, including a bill that bans mining in Davao, are “inconsistent” with the Philippine Mining Act.

According to Vicente Lao, president of the Alliance of Responsible Miners in Region 11, the “Supreme Court has the power to declare the local ordinance unconstitutional.”

Mayor Rodrigo Duterte, on the other hand, maintains his anti-mining stance. Earlier, he said that mining not only destroys the environment but also causes confl ict in the communities. However, he agreed that the legal aspect “is a gray area” since the local government cannot overrule national policy.

Under the Philippine Mining Act of 1995, all mineral resources in public and private lands within the Philippine economic zone are owned by the State and therefore the State reserves the right to explore, develop and utilize the resources.

MGB Regional Director Edilberto Arreza said their agency cannot contest the Davao mining ban because MGB has no authority over Davao City. He added that it is now up to the private companies affected to question the mining ban.

The JFC meanwhile said it is important to respect the Mining Act as it “was enacted to resuscitate the industry” and to open “the doors to potential developers of mining projects.” The group added that the Mining Act must be properly implemented so as not to miss the probable benefi ts the law could provide. “The law is considered to be a model legal framework for sustainable development and among the best in the world,” it noted. But this ban plus the uncertainty EO 79 has introduced have put all new mining activity into question.

Mr. Lao, who is also the chair of the Mindanao Business Council, said the Davao city council made a mistake in banning mining because mining is an “economic activity which can bring employment and economic benefi t to the city". He added that mining “provides very substantial revenue” to the city.

The Davao mining ban is expected to affect a number of mining companies attempting to explore the rich mineral deposits

42 BUSINESS


The Aquino administration, through the issuance of Executive Order (EO) 79, has already issued a de facto moratorium on the approval of new mining contracts.

43BUSINESS


in the city. According to the MGB, there are at least 2 known mine exploration projects in Davao districts, namely the Alberto Mining Corp. in Paquibato District, and the application of Pensons Mining Corp. in Calinan District. MRC Allied, a mining company owned by businessman Benjamin Bitanga and Lucio Tan Jr., is also known to be interested in exploring Paquibato.

In a talk delivered at the PIDS Philippine Business and Economic Outlook seminar held on May 19, Philippine Stock Exchange (PSE) President and Chief Executive Offi cer Hans Sicat said the mining sector is one of the “sad” stories in the Philippine economy “given its very small contribution.” MGB data show that mining has only contributed less than 1% to the country’s total gross domestic product (GDP).

The mining sector can be a viable industry that would help create more job opportunities, support local communities and promote inclusive growth, if the policy environment supports it. With the possible benefi ts that mining could provide for the country’s economic growth and the people’s well-being, banning mining is not the solution. Local governments could regulate mining so as to promote responsible mining, but not ban it.

ISO 14001 Certifi cation required for mining operations

The Department of Environment and Natural Resources (DENR) has mandated all mining contractors to secure an International Organization for Standardization (ISO) 14001 Certifi cation through Department Administrative Order (DAO) No. 2015-07 to ensure that local mining operations comply with international standards.

The DAO effectively institutionalizes environmental management to ensure compliance of mining companies. It covers all mining operations with Mineral Agreements (MAs) and Financial or Technical Assistance Agreements (FTAA), but not the ones that most need it, the small-scale miners. These companies are required to secure the ISO certifi cation 1 year from the receipt of approval of the Declaration of Mining Project Feasibility (DMPF), while those engaged in non-metallic operations should

secure the certifi cation within 1 year of receipt of the DAO. Failure to have an ISO 14001 Certifi cation will lead to the suspension of the Environmental Compliance Certifi cate (ECC) and non-issuance of the Ore Transport or Mineral Export Permit. The ECC is a documentary proof before developing a mine that the project will be able to address adverse impacts of the project to the environment. It is also required for the approval of the DMPF, which is the fi nal requirement to be allowed to operating a project.

ISO 14001 Certifi cation “sets out the criteria for an environmental management system” and “maps out a framework that a company or organization can follow to set up an effective environmental management system.” According to ISO, 75% of those with this certifi cation “found it valuable for meeting legal requirements and improving the organization’s environmental performance,” while 75% also said that the standard gave them a competitive advantage. There are 17 elements that should be met by companies to gain the certifi cation (see box).

DENR said that it will be conducting a “periodic review” of the mining operations of those with MA and FTAA to ensure that they are complying with environmental standards. The department will create an assessment team to do the review and provide recommendations.

The DAO has been negatively received by the Chamber of Mines because its issuance seemed to be hasty and was done without public consultation, which is usually done before the issuance of administrative orders that have serious implications, particularly to new operations. The Chamber of Mines, composed of large scale metallic mining companies, said that the department should review the DAO because it does not cover small scale mining operations. The Chamber of Mines also said that “large scale metallic mines already implement a credible and effective environmental management system as set forth in their Environmental Protection and Enhancement Programs.” It added that “a number of members have been ISO certifi ed and many others also voluntarily embarked on the process of getting ISO certifi cation in spite of implementing an effective EMS through their Environmental Protection and Enhancement Programs.” The group reiterated that the mining industry is one of the most heavily regulated industries in the world.

The Philippine mining industry is currently suffering from overly strict regulations opposition from a number of antagonistic groups.

44 BUSINESS


17 ELEMENTS REQUIRED FOR ISO 14001 CERTIFICATION

1. An environmental policy supported by senior management;

2. The identifi cation of environmental aspects and impacts, and the identifi cation of signifi cant environmental impacts that the organization may cause;

3. Identifi cation of environmental compliance requirements;

4. The development of objectives and targets, and their environmental management programs;

5. Defi ned resources, roles, responsibilities, and authorities for environmental management;

6. The development of competence, training, and awareness procedures;

7. A communication process of the EMS to all stakeholders and interested parties;

8. The development of EMS documentation as required by the standard;

9. The development of document control procedures;

10. The development of operational control procedures;

11. The development of emergency preparedness and response procedures;

12. The development of procedures to monitor and measure operations that can have signifi cant impact to the environment;

13. An evaluation of compliance procedure;

14. Procedures developed for the management of non-conformance, corrective, and preventative actions;

15. The development of a records management procedure;

16. A program for completing internal EMS audits and corrective actions;

17. The development of procedures for management review by senior management.

The DAO covers all mining operations with Mineral Agreements and Financial or Technical Assistance Agreements, but not the ones that most need it, the small-scale miners.

I.T. UPDATE

BPO revenues to overtake OFW remittances in 2017

Revenues from the Business Process Outsourcing (BPO) industry are expected to overtake OFW remittances as the country’s main source of dollar income in 2017.

The BPO industry recorded a revenue of $18.9 billion in 2014, up 24% from the $15.3 billion recorded in 2013. Meanwhile, overseas Filipino workers’ (OFW) remittances reached $26.9 billion in 2014 up 6% from the $25.4 billion recorded in 2013 (see chart). According to BSP Deputy Governor Diwa Guinigundo, it was only a matter of time before the BPO industry would replace OFW remittances as the “main economic engine” of the Philippine economy.

The 2013 Survey of Information Technology-Business Process Outsourcing (IT-BPO) Services conducted by the Bangko Sentral ng Pilipinas (BSP) or central bank showed that revenues are continuously increasing in all sub-sectors of the BPO industry. The transcription sub-sector grew the most at 113%, followed by software development at 20%, contact centers at 11%, animation at 9%, and other BPOs at 9%. Contact centers are still the largest revenue generator of the industry and

contributed 6 percentage points to the growth of the BPO industry (see chart). The United States remains the top export market for the local IT-BPO industry at 72.6%, followed by Europe (13.3%), Australia-New Zealand (4.5%), and Japan (3.7%), among others.

Mr. Guinigundo said that BPO revenues are expected to grow by at least 15% to $21.2 billion in 2015, $25 billion in 2016, and $28.9 billion in 2017. OFW remittances, meanwhile, are expected to grow by at most 6%, with a projection of $28 billion in 2017. However, even with the shift, Mr. Guinigundo said that remittances “would stay as a vital pillar for the domestic economy,” and that the demand for OFWs remains high.

The remittances have helped keep the peso stable even in times of volatile fi nancial market conditions, but it does not contribute to inclusive growth. Meanwhile, employment of the local IT-BPO industry reached 851,782 in 2013, with several initiatives from the government and private sector to develop the skills of prospective workers in the industry. These include:

The training program of the IT and Business Process Association of the Philippines (IBPAP) and the Technical Education and Skills Development Authority (TESDA) in partnership with the government of Korea to educate Filipinos in software programs as well as in design and construction.

45BUSINESS


46 BUSINESS


Activities organized by the DOST-ICTO and the Game Developers Association of the Philippines related to strengthening the competitiveness of the game development industry.

The Skill Standards for IT Professionals (ITSS) framework, a career model of the Philippine Software Industry Association and IT Promotion Agency of Japan that aims to support IT and software organizations in talent development to help make the skills level of IT professionals be globally recognized.

The Medical Coding and Billing Training and Certifi cation Project of the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) that trains scholars from the Healthcare Information Management sector and further develops their skills. The participants are given the Certifi ed Professional Coders Certifi cation Exam by the American Academy of Professional Coders. IBPAP president Jose Mari Mercado said that there are currently

150,000 available jobs for potential workers in the industry. The biggest challenge in the BPO industry remains the shortage of skilled workers, and it’s now up to the schools to build competent “graduates that can support the growth needed by the industry.”

DOJ endorses IRR of Cybercrime Prevention Act

The Department of Justice (DOJ) recently announced that it has completed its review of the implementing rules and regulations (IRR) of Republic Act (RA) No. 10175 or the Cybercrime Prevention Act of 2012. The measure would address the legal issues concerning online interactions as well as penalize crimes done in the realm of cyberspace. Among the cybercrime offenses included in the law are cybersquatting, cybersex, child pornography, identity theft, illegal access to data and libel.

The IRR of the Cybercrime Prevention Act of 2012 has undergone numerous revisions in the past. When the Supreme Court (SC) upheld the constitutionality of the law in February 2014, the Offi ce of Cybercrime (OOC) under the DOJ spearheaded the formulation of the IRR by forming a technical working group (TWG) and conducting a series of meetings and public consultations with stakeholders, industry partners and concerned government agencies. The Cybercrime TWG was composed of the following: DOJ, Department of Science and Technology – Information and Communications Technology Offi ce (DOST-ICTO), Department of Interior and Local Government (DILG), National Bureau of Investigation (NBI) and Philippine National Police (PNP). Among those who participated in the drafting were representatives from business, academe, non-governmental organizations, legal profession, media, ICT groups and internet

service providers. According to DOJ Secretary Leila De Lima, “after extensive series of consultations with the key stakeholders and the legal groundwork, the IRR of our cybercrime law is now ready for endorsement to our partners as stated in the law – the DILG and DOST.” The IRR was completed more than 3 years after the measure was signed into law.

The ineffi ciencies of the government’s policies with regard to cybercrime suppression, investigation and prosecution were exposed during the onset of the “LOVE BUG” or “I love you” virus in 2000. Hence, Asec. Geronimo Sy pointed out that rules on cybercrimes have to be updated constantly to avoid future threats. The accessibility and affordability of internet connection as well as the increasing usage of electronic commerce (e-commerce) calls for a sensible Cybercrime Prevention law.

The DOJ has also provided guidelines for prosecutors in specifying bail for those to be charged for violating the Cybercrime law. Since the law’s passage, numerous complaints of cybercrime have been received and investigated by law enforcement authorities. In 2014, the PNP – Anti-Cybercrime Group (ACG) reported 614 cybercrime incidents. Given this, Sec. de Lima said fi ling of criminal cases requires the provision of bail. The factors for this include the following: fi nancial ability of the accused to pay for bail; nature and circumstances of the offense; penalty for the offense charged; character and reputation of the accused; age and health of the accused; weight of evidence; and probability of the accused appearing in trial. For cyber-libel, the lowest bail bond would be P10,000 while violators of child pornography and other related offenses would be as high as P200,000. A bail of P200,000 is also set for offenses committed against “critical infrastructure,” which the law defi nes as computer systems/networks, computer programs/data important to the nation, and interference with such system and assets that would lead to a devastating impact on security, national/economic security and national public health/safety.

The issuance of the Cybercrime law’s IRR also bodes well for the local Information and Communications Technology-Business Process Outsourcing (ICT-BPO) sector as it helps protect highly confi dential data being processed by local BPO companies. In fact, the measure is among the 3 bills that are expected to further advance the competitiveness of the ICT-BPO sector, the other 2 being the Data Privacy Act and a Department of Information and Communications Technology (DICT). The former has been signed into law but its IRR has yet to be fi nalized while the latter has been approved on third and fi nal reading by the Senate but its counterpart bill in the House of Representatives is still pending on fi rst reading. Without President Aquino’s support, the DICT bill is unlikely to be approved in the administration-dominated lower chamber in this 16th Congress unless the President can be convinced of its need, something The Wallace Business Forum is working on. The DICT bill has been languishing in Congress for more than a decade.

Revenues are continuously increasing in all sub-sectors of the BPO industry

47BUSINESS


CYBERCRIME STATISTICS

Cybercrime is one of the fastest growing crimes worldwide, and this could be attributed to the increasing dependence on Information and Communication Technology. Go-Gulf estimated that cybercrime victims reach 556 million per year. As of 2014, Mcafee reported that the annual cost to the global economy from cybercrime could reach up to more than $400 billion.

According to the annual Symantec Internet Security Threat Report (ISTR), the top growing trends that organizations in the Philippines should watch out for in today’s threat landscape are the following: advanced targeted attacks, mobile threats, malware attacks and data breaches.

From April to December 2014, the National Center for Missing and Exploited Children (NCMEC) listed 12,374 reports of child exploitation in which either the offended party or the offender is located in the Philippines.

Source: various news clips; DOJ-OOC 2014-2015 Cybercrime Report

SOME RECORDED CYBER -ATTACKS IN THE PHILIPPINES

YEAR DESCRIPTION

2012Occupy Philippines hacked into the China University Media Union website. It was seen to be an act of retaliation for an earlier incident wherein Chinese hackers attacked the University of the Philippines website over the Scarborough Shoal.

2012 Various government websites were attacked to protest the controversial provisions of the Cybercrime Prevention Act of 2012.

2013 Anonymous Philippines attacked several government websites in protest over the Cybercrime Prevention Act of 2012. They changed the home page of several websites like the BSP and the PNP websites.

2013“AnonTAIWAN” hacked into the Philippine government website asking for a formal apology for an incident between the Philippine Coastguard and Taiwanese fi shermen. The cyberattacks occurred 2 days before the 2013 mid-term general election, and signifi cantly slowed government websites.

2013 Anonymous Philippines hacked 115 government websites in protest of the PDAF scam.

Source: various news clips

The issuance of the Cybercrime law’s IRR bodes well for the local ICT-BPO sector.

48 BUSINESS


PEZA APPROVED PROJECTS -FIRST QUARTER 2015

INDUSTRY ACTIVITY EQUITY LOCAL/FOREIGN ZONE

APPAREL AND TEXTILE MANUFACTURES

K-2 CORPORATION PHILIPPINE BRANCH Manufacture of branded sportswear 100% - American Carmelray Industrial Park II - SEZ

SUN-PLEATS CEBU CORPORATION

Manufacture of men's jacket, tie, coat, pants, vest, t-shirts, shirts, polo shirts, warmer, blouson, stole and other similar or related men's wears and accessories

Mactan Economic Zone

CHEMICAL AND CHEMICAL PRODUCTS

XIN KWAN CORPORATION Manufacturing/processing of chemical products, i.e., nickel solutions Carmelray Industrial Park II - SEZ

ELECTRONICS

BROTHER INDUSTRIES (PHILIPPINES), INC. Manufacture/assembly of BH15 Multifunction Printer First Philippine Industrial Park - SEZ

CAMEL-V ELECTRONICS MFG., INC. Manufacture and assembly of various capacitors 51% - Filipino 49% - Chinese Light Industry & Science Park I - SEZ

CIRTEK ADVANCED TECHNOLOGIES AND SOLUTIONS, INC.

Transfer part of its operations, i.e., Surface Mount Technology (SMT), Microwave Integrated Circuit (MIC) and Teledyne Cougar manufacturing operations, together with a portion of its warehousing and Vendor Managed Inventory (VMI) from its company owned facility

Laguna Technopark - SEZ

CITIZEN FINEDEVICE PHILIPPINES CORP. Manufacture of Crystal Blanks and Devices 99.99% - Japanese First Philippine Industrial Park II - SEZ

EATON INDUSTRIES (PHILIPPINES), LLC, PHILIPPINE BRANCH

Manufacture of electronic and electrical components including inductors, fuses and super capacitors Light Industry & Science Park III - SEZ

EMS RESOURCES TECHNOLOGY INC.Provides engineering and technical support services for semiconductor and other electronic manufacturing companies

100% - Filipino Laguna Technopark - SEZ

GF MICRO OPTICS PHILIPPINES, INC. Design and manufacture of Multilayer Integrated Photo Detector Laguna Technopark - SEZ

GF MICRO OPTICS PHILIPPINES, INC. Manufacture/assembly of PON (Passive Optical Network) Reach Extender Laguna Technopark - SEZ

HGST PHILIPPINES CORP. Production of tested and characterized Sliders (Slider DET Project) Laguna Technopark - SEZ

LITTELFUSE PHILS., INC. Manufacture of Reed Switch Lima Technology Center - SEZ

M. UBIS INC. Manufacture/production of infrared optic fi lter Cavite Economic Zone

MOATECH MANUFACTURING PHILS., INC. Assembly of In-Car Sensor First Philippine Industrial Park - SEZ

OPTIS PHILIPPINES, INC. Manufacture and assembly of IR Changer for CCTV Camera Gateway Business Park - SEZ

SAMSUNG ELECTRO-MECHANICS PHILIPPINES CORPORATION Manufacture of Chip Inductor Calamba Premiere International Park

- SEZ

SAMYOUNG ELECTRONICS PHILS., INCORPORATED. Engage in coil winding and fl exible fl at cable Cavite Economic Zone

SMART ELECTRONICS MANUFACTURING SERVICE PHILIPPINES, INC.

Manufacture of Ultra Slim Neo/External Ultra Slim Neo Carmelray Industrial Park II - SEZ

TECHTUIT PHILS., INC. - PEZA DIVISION Manufacture of Counting Machine Sensor First Philippine Industrial Park - SEZ

YUMEX PHILIPPINES CORPORATION Manufacture of FOG (Flexible Printed Circuit on Glass) First Cavite Industrial Estate - SEZ

FOOD AND BEVERAGE MANUFACTURES

FIRST COCONUT MANUFACTURING INC.

Producer of crude coconut oil, refi ned, bleached and deodorized coconut oil, copra meal and other coconut-derived by-products

100% - Filipino CIIF Agro-Industrial Park - Davao

HOTEL, RESTAURANT, AND LEISURE SERVICES

MJC INVESTMENTS CORPORATION Development and operation of tourist, leisure and entertainment facilities, such as hotels 100% - Filipino San Lazaro Tourism and Business Park

SURESTE PROPERTIES, INC. Construction, development, management and operation of additional facilities (Phase 1A) Bagong Nayong Pilipino – Entertainment

City Manila

49BUSINESS


IT AND IT-ENABLED SERVICES

KUSAKABE & MAENO TECH INC. Provides detailing and drafting services through 3D modeling and related technical services

86% - Japanese 14% - Filipino First Cavite Industrial Estate - SEZ

SHUKOBUILD PHILIPPINES INC. Engage in Computer-Aided Design (CAD) 99.99% - Japanese Philamlife I.T. Tower

MACHINERY AND EQUIPMENT

FITC LED LIGHT MANUFACTURING CO. AND GENERAL SERVICES CORP. Manufacture and repair of LED light 99.99% - Filipino Cavite Economic Zone

SUNGEUN ELECTRONIC PHILIPPINES MANUFACTURING INC.

Manufacture, processing, assembly sale of heater assy, injection molding products, Lead Wire (L/W) assy and Sheet assy

100% - Korean Calamba Premiere International Park - SEZ

TRANSCENDTECHNOLOGIES INC.

Manufacture of Test Socket Laser Cleaner; upgrade, repair and maintenance of semiconductor advance test and assembly equipment; and Worldwide Field Engineering Support Center for semiconductor assembly and test equipment

91% - Singaporean 9% - Filipino Laguna Technopark - SEZ

METAL INDUSTRIES

B/E AEROSPACE B.V. - PHIL. BRANCH Manufacture, sale, distribution and marketing of beverage makers and rails for aircraft First Philippine Industrial Park - SEZ

AIR WATER PHILIPPINES, INC.Engage in subcon arrangement for heat treatment, i.e., Nitriding, Carburizing, Quenching, Tempering, Die-casting, among others

Laguna Technopark - SEZ

ICHIKAWA KOGYO PH INC.

Manufacture, process, design components of all kinds of machines, machine-tools, equipment and mechanisms, instruments, apparatuses and appliances

99.99% - Japanese Cavite Economic Zone

KPPC PRECISION PARTS CO. Assembly Process and Parts Finishing and Inspection Process Laguna International Industrial Park

- SEZ

MAGIS ROVER MANUFACTURING INC. Manufacture and assembly of automotive exhaust systems for different vehicles 100% - Filipino First Cavite Industrial Estate - SEZ

MINATECHNOLOGY PHILIPPINES, CORPORATION

Production and assembly of parts for precision machine and amusement machine, and manufacture of plastic mold and maintenance

99.99% - Japanese Laguna Technopark - SEZ

MIXNUS PHILIPPINES PRECISION, INC.Design, fabricate, treat and fi nish precision metal cutting parts and components of electronic parts and accessories

99.98% - Japanese Laguna Technopark Annex - SEZ

SHOKO ELEC PHILIPPINES INC. Manufacture of wire harness 99.99% - Japanese Laguna Technopark - SEZ

TOHO PRECISION MOLDS PHILIPPINES, INC.

Manufacture of molds for plastic, stamping, die-casting, etc. 99.97% - Japanese Greenfi eld Automotive Park - SEZ

MISCELLANEOUS MANUFACTURES

JMS HEALTHCARE PHL, INC. Manufacture of medical devices and disposables, specifi cally AV Fistula First Philippine Industrial Park - SEZ

OPTICAL TECHNOLOGY SPECIALISTS PH, INC.

Manufacture and processing of condenser lens for electronic, medical, optical, photographic, communication and general industrial applications

100% - Japanese Mactan Economic Zone II - SEZ

TOKAI MEDICAL PRODUCTS PHILIPPINES INC.

Manufacture/assembly of medical catheter (Intra-Aortic Balloon Catheter and Intra-Aortic Balloon Occlusion Catheter)

99.99% - Japanese First Philippine Industrial Park - SEZ

EPSON PRECISION (PHILIPPINES), INC.

Manufacture of Label Writer (LW) and its integral activities such as in-house parts production, in-house production and exportation of optional incidental devices and the exportation of its after-sales service parts and knock-down parts

Lima Technology Center - SEZ

EPSON PRECISION (PHILIPPINES), INC.

To include exportation of after-sales service parts and knock-down parts as integral part of the REGISTRANT's Head Mount Display (HMD) registered activity

Lima Technology Center - SEZ

GLORY (PHILIPPINES), INC. Manufacture of BRM (Cash Recycler) Cavite Economic Zone

SHINSEI INDUSTRIES PHILS., INC.

Engage in the repair of the REGISTRANT's sold manufactured products, such as labeling machines and bar code printing machines and to perform I.T. services, such as enhancement/revision of programs and systems for bar code printers and other manufactured products sold

Light Industry & Science Park I - SEZ

REPSOLUTIONS PHILIPPINES INC. Manufacture/assembly of Expandable Packaging (ExPak) Boxes

60% - Filipino 40% - Singaporean Laguna Technopark - SEZ

OFFSHORING AND OUTSOURCING

ADP (PHILIPPINES), INC. IT-enabled Call Center/BPO services Aeon Centre

50 BUSINESS


AESTREA SOFTWARE DEVELOPMENT INC.

Software development services such as enterprise application development, mobile application development and embedded systems

100% - Filipino Burgundy Corporate Tower

AIDA HOME DESIGN PHILIPPINES INC. Business process outsourcing (BPO) services 99.99% - Japanese Zuellig Building

ALLIANCE SERVICE CENTRE LIMITED Business process outsourcing (BPO) services 100% - Chinese Robinsons-Equitable Tower

AMEC OPERATIONS LTD

BPO services for general administration and planning, helpdesk IT support services, transactional processing services, human resources, compliance,etc.

100% - Guernsey (Channel Islands) Northgate Cyberzone

AMERICAN EXPRESS INTERNATIONAL, INC. Business process outsourcing (BPO) services 100% - American E-Square I.T. Park

AMMEX ISUPPORT INTERNATIONAL CORPORATION Business process outsourcing (BPO) services 99.99% - American Cyberscape Alpha

BACK OFFICE BOSS INC.

Virtual assistant services that help clients worldwide with the completion of short, everyday tasks, focusing on logistics, billing, web management, and contact management services

99.94% - American Northgate Cyberzone

BDS RESOURCE MANAGEMENTBack end support operation in the area of Information Technology and Human Resource Management

100% - Singaporean One San Miguel Avenue Condominium

CALLTEK CENTER INT'L., INC. Call center operations JY Square I.T. Center III

CITIUS SOLUTIONS CORPORATION Call center operations, data encoding, transcribing and other back offi ce support services 100% - Filipino Cebu I.T. Park

CONCENTRIX DAKSH SERVICES PHILIPPINES CORPORATION

Business Process Outsourcing and call center operations Spark Place

CONCENTRIX DAKSH SERVICES PHILIPPINES CORPORATION

Business Process Outsourcing including call center operations SM Cyber West Avenue

CONVERGYS PHILIPPINES INC.

Provides site-hosting services such as build-to-suit offi ce space; IT services and asset management; facilities services; and outsourced back offi ce services (administrative, training, and recruitment) to Encore Receivable Management, Inc. (ERMI)

Northgate Cyberzone

CONVERGYS SERVICES PHILIPPINES, INC. Call center business operation. 99.99% - Filipino SM City Clark IT Park

CONVERGYS SERVICES PHILIPPINES, INC. Call center operations SM City Clark IT Park

CWT PHILIPPINES, INC. Additional Call Center Capacity for Global Travel Reservations Zuellig Building

ECC FOREIGN LANGUAGE INSTITUTE OF THE PHILIPPINES INC. Business Process Outsourcing - Online Tutorial 99.99% - Japanese GAGFA IT Center

EXLSERVICE PHILIPPINES, INC. Call Center Operation CBP-IT Park

ING GLOBAL SERVICES AND OPERATIONS, INC. To include the 20th Floor for its operations W Fifth Avenue

KMC MAG SOLUTIONS, INC. Business Process Outsourcing Services (Customer Service, Copywriting Services & SEO Services) Cebu I.T. Park

MCN FREEDOM! TECH INC. Software development and customer support services 99.99% - Chinese Eastwood City Cyberpark

MOBILEPAID INC. Back Offi ce Support Service 99.8% - French GAGFA IT Center

ONE LUNA GLOBAL CONNECTIONS INC.

Provide services through fi nance, accounting, medical billing, transcription and other back offi ce operations to its clients abroad

60% - Filipino 40% - American Eastwood City Cyberpark

OPENCOAT PHILIPPINES, INC.Business Process Outsourcing activities using e-commerce such as web development, web design and web consulting and other IT-enabled services

99.99% - Japanese Cebu I.T. Park

RDC INTERNATIONAL (MANILA), INC. Business process outsourcing and exporting knowledge-based and computer-enabled services 99.99% - Australian Robinsons Summit Center

RYOMO PHILIPPINES INFORMATION CORPORATION

Provides technical support for System, Applications, Products (SAP) 99.99% - Japanese Pacifi c Star Building Condominium

SEVEN SEVEN GLOBAL SERVICES, INC. Software Development and Business Process Outsourcing (BPO) Orient Square I.T. Bldg.

SPi CRM INC. Call Center operations LP Information Technology Park

SPi CRM INC. Call Center Operations PLDT Garnet Building

STARTEK PHILIPPINES, INC. Call Center operations Silver City 3

TECHLOG CENTER PHILIPPINES Business Processing Outsourcing (BPO) services 100% - American Carmelray Industrial Park II - SEZ

TELEDIRECT TELECOMMERCE (PHILIPPINES) INC.

Information and Communication Technology and Business Process Outsourcing services 99.95% - Singaporean Cyberscape Beta

51BUSINESS


TELEPHILIPPINES INCORPORATED Call Center Operation Fairview Terraces Corporate Center

TELUS INTERNATIONAL PHILIPPINES, INC.

Call Center operations and Business Process Outsourcing (BPO) Services McKinley Exchange Corporate Center

TOWERS WATSON GLOBAL BUSINESS SERVICES, INC. Technology/software development-benefi ts solutions Philamlife I.T. Tower

vCustomer Philippines (Cebu), Inc. Sales support, customer support, technical support, shared services Cebu I.T. Park

VIATECHNIK INC. IT Services that include 3D modeling and software development 99.99% - American DPC Place Building

VISAYA KNOWLEDGE PROCESS OUTSOURCING CORPORATION

IT-Enabled services and Software Development and Application SGI Technology Center

PAPER AND PAPER PRODUCTS

PHILBOOK CONSUMER PRODUCTS INC.

Manufacture of paper into fi nished products such as notebooks, stationeries, offi ce and/or school supplies, albums, autograph, or photograph books or pamphlets

99.99% - Taiwanese TECO Industrial Park

SUNWOOID MANUFACTURING INC. Manufacture of paper carrier tape 100% - Korean Calamba Premiere International Park - SEZ

OTHER BUSINESS SERVICES

BOSTON SEMI EQUIPMENT PHILIPPINES, INC. Includes probers and handlers in the test systems Carmelray Industrial Park II - SEZ

eDATA SERVICES PHILS., INC. Medical History Taking sevice RCBC Plaza

eDATA SERVICES PHILS., INC. Impairment Rating service RCBC Plaza

PLASTIC PRODUCTS

APLUS PACK, INC. Manufacture of Thermoforming Vacuum Trays 99.99% - Korean Filinvest Technology Park Calamba - SEZ

DAEJIN HI-TECH PHILIPPINES, INC.Manufacture and export of Consumable Plastic tray products for electronic parts and crushing of plastic scraps

Gateway Business Park - SEZ

NIDEC SANKYO PHILIPPINES CORPORATION

Manufacture of Plastic Injection Materials for Electronics, Medical and Automotive Usages Light Industry & Science Park I - SEZ

SK PLASTIC INNOVATECH CORP. Production of plastic bags and other plastic products 100% - Filipino Laguna Technopark - SEZ

VOION PACKAGING PHILIPPINES INC. Manufacture of plastic packaging products, expanded polyethylene foam and PE bags 99.99% - Chinese Lima Technology Center - SEZ

YIKING PLASTIC PRODUCTION INC. Manufacture of computer enclosures, and printer and keyboard plastic shells 99.99% - Taiwanese Lima Technology Center - SEZ

REAL ESTATE AND PROPERTY DEVELOPMENT

GLOBAL MOULDING TECHNOLOGY, INC.

Leasing out the 2nd Floor of its building to Mocom Philippines, Inc. Cavite Economic Zone

GREENSTONE CREATIVE PROPERTY HOLDING CORPORATION Construction of a 4-unit warehouse-type buildings 84% - Filipino

16% - Taiwanese Laguna Technopark - SEZ

KOSHIN PHILIPPINES CORPORATIONLeasing out an 800.50-sq.m. building space at its existing facility to Optical Technology Specialists PH, Inc.

Mactan Economic Zone II - SEZ

MACEN WRAPPING AND PACKAGING CORP.

Sub-leasing a 120 sq.m. of the 500 sq.m. of its existing facility to Kanepackage Philippine, Inc. Cavite Economic Zone

MITSUWA CHEMICAL PHILIPPINES, INC.

Leasing out a 1,197 sqm area within its factory building to Oakwave (Philippines) Corporation Cavite Economic Zone

MIYOSHI TECHNOLOGIES PHILS., INC. Leasing out a 400 sq.m. portion of its 3,240 sq.m. building to Xin Kwan Corporation Carmelray Industrial Park II - SEZ

MIYOSHI TECHNOLOGIES PHILS., INC. Lease out the entire second fl oor of its new building to Belton Totoku Philippines, Inc. Carmelray Industrial Park II - SEZ

O.M. DAIZEN ENTERPRISES CORPORATION Construction of a factory building Suntrust Ecotown Tanza

ONE SP LINK INDUSTRIAL DEVELOPMENT CORPORATION

Construction of a physical plant on a 20,000-square meter. 100% - Filipino Bukidnon Agro-Resources Export Zone

ORIENT GOLDCREST REALTY, INC. Construction and management of 21-unit warehouse buildings Hermosa Ecozone Industrial Park

ORIENT GOLDCREST REALTY, INC. Construction and management of 6-unit warehouse building Laguna Technopark - SEZ

S & T REALTY CORP. Construction and managing a 2-storey standard factory building and 1-unit warehouse building Suntrust Ecotown Tanza

SAGARA METRO PLASTICS INDUSTRIAL CORPORATION

Authority to lease 1,384 sq. m. from Aquarius Ecozone Industrial Corp. as an additional area of operation to cover warehousing/storage, tube cutting and delivery of goods

Calamba Premiere International Park - SEZ

52 BUSINESS


RECYCLING

F.R.P. PHILIPPINES CORPORATION Defective Fluorescent Lamp Crushing Laguna Technopark - SEZ

STORAGE AND WAREHOUSING

AOISEIKI PHILIPPINES CORPORATION Conducting the trade in wholesale of machinery and equipment. 99.98% - Japanese Laguna Technopark - SEZ

CONTAINERBOARD AND PACKAGING COMPANY, INC. - WAREHOUSING DIVISION

Registration of additional warehouse site Carmelray Industrial Park II - SEZ

EPE (PHILIPPINES) CORP.

Engage in sale of packaging/warehousing materials and importing and purchasing locally raw materials, semi-fi nished products & fi nished products like carton box, polyfoam.

60% - Japanese 40% - Filipino Lima Technology Center - SEZ

HIRATA PRECISION PHILIPPINES INC. Provide Inventory Management System and Logistics Service 99.99% - Chinese Laguna Technopark - SEZ

KOSHIN KOGYO PHILS. CORP. Warehousing/logistics support services 99.98% - Japanese First Philippine Industrial Park - SEZ

LEWISTON CONCEPT INDUSTRIAL CORPORATION Warehousing/logistics support services 100% - Filipino Golden Mile Business Park - SEZ

MICROSEMI SEMICONDUCTORS-MANILA (PHILIPPINES), INC.. Warehousing/logistics support services 99.99% - American Food Terminal Inc. - SEZ

NEP LOGISTICS, INC. Engage in the warehousing operations Food Terminal Inc. - SEZ

NISSEI PLASTIC PHILIPPINES, INC. Warehousing/logistics support services 99.99% - Japanese Laguna Technopark - SEZ

RYOSHO TECHNO PHILIPPINES INC.Engage in sale of metal components, metal materials, electric components and sale of factory automation machines

99.99% - Singaporean Cavite Economic Zone

SOUTH WIN, INC. Registration of an additional warehouse facility Laguna Technopark - SEZ

SPECIALTY PULP MANUFACTURING, INC. Logistics/warehousing operations 60% - Filipino

40% - Cook IslanderNew Jubilee Agro-Industrial Economic

Zone

YUSEN LOGISTICS CENTER, INC. Warehousing/logistics support services Laguna Technopark - SEZ

WOOD AND CORK PRODUCTS

NODA KIGATA PHILIPPINE CORPORATION

Engage in the production and sale of wood pattern and chromium die steel 99.99% - Japanese First Philippine Industrial Park - SEZ

PHIL SAWDUST INC.

Manufacture and process for export pressed and blocked dried saw dust, pelletized dried saw dust, dried hay, silage, coco peat, and other wood and coconut by-products

55% - Filipino 45% - Korean

Phividec Industrial Estate-Economic Zone

53BUSINESS


LIST OF BOI-REGISTERED PROJECTS - APRIL 2015

INDUSTRY ACTIVITY PROJECT COST (IN PHP MILLION)

EQUITY LOCAL/FOREIGN

AGRICULTURE, FISHERY, AND FORESTRY

Pilmico Animal Nutrition Corp. Producer of Table Eggs and by-productions 198 100% Filipino

AUTOMOTIVE TRADE

Pilipinas Kyohritsu Inc. Producer of Tie Band Products for Automotive Wiring Harness 9 100% Japanesse

METAL PRODUCTS

SAMC Steel Inc. Domestic Producer of Steel Medium Sections 6,649 100% Filipino

Steelasia Manufacturing Corporation Domestic Producer of PNS 49 Reinforcing Steel Bar 6,018 100% Filipino

Kuang Tai Metal Philippines Corp. Producer of stainless steel wire 50 100% Taiwanese

REAL ESTATE AND PROPERT DEVELOPMENT

Avida Land Corp. Expansion Project of Low Cost Mass Housing Project (Avida Towers Altura Tower 2) 403 100% Filipino

Avida Land Corp. Expansion Project of Low Cost Mass Housing Project (Avida Towers Asten Tower 2) 666 100% Filipino

TOTAL 13,993

54 BUSINESS


BUSINESS CLIMATE INDEX

000

500

0

500

000

500

000

500

000

FDI:BOP CONCEPT US$ Million

* The BSP adopted the Balance of Payment, 6th edition (BPM6) compilation framework effective 22 March 2013 with the release of the full-year 2012 and revised 2011 BOP statistics. In BPM6, net FDI fl ows refer to non-residents’ equity capital (i.e., placements less withdrawals) + reinvestment of earnings + debt instruments, net (i.e.,net intercompany borrowings).

FOREIGN DIRECT INVESTMENTBalance of Payments Concept*; JANUARY-APRIL 2014

LEVEL (US$ million)

SOURCE CURRENT YEAR AGO YEAR-ON-YEAR % CHANGE

TOTAL FDI 1,377 1,829 -24.74

Equity Capital 357.26 791.33 -54.85

Reinvested Earnings 131.42 146.33 -10.19

Debt Instruments 887.99 891.64 -0.41

INDUSTRIAL PERFORMANCE (2000=100) MAY 2015

DATA (INDEX)

YEAR-ON-YEAR GROWTH

YEAR-TO-DATE

Volume of Production Index (VoPI) 118.4 13.6 -9.4

a. Food 125.7 -11.7 -15.8

b. Beverage 148.0 12.5 16.3

c. Tobacco 4.9 75.0 -2.7

d. Textile 49.3 30.1 24.6

e. Footwear and Wearing Apparel 27.1 -18.1 -15.8

f. Wood and Wood Products 55.4 -9.0 -8.3

g. Furniture & Fixtures 757.7 1.0 -4.9

h. Basic Metals 140.0 73.9 12.8

i. Iron and Steel 124.1 26.6 12.2

j. Non-ferrous Metals 177.2 316.0 12.9

k. Fabricated Metal Products 268.7 -0.6 -11.2

l. Machinery Excluding Electrical 53.7 -4.3 4.9

m. Electrical Machinery 95.3 6.0 1.8

n. Transport Equipment 130.0 4.9 6.4

o. Other Mfg Industries 112.4 -6.4 2.1

p. Paper & Paper Products 70.1 2.0 12.2

q. Publishing & Printing 117.2 17.6 -3.1

r. Leather Products 4.5 12.5 1.2

s. Rubber Products 278.0 9.9 -2.1

t. Chemical Products 231.1 63.6 -34.3

u. Petroleum Products 47.9 96.3 -5.2

v. Non-Metallic Mineral Products 140.8 6.8 13.0

w. Glass & Glass Products 141.5 -11.4 -4.7

x. Cement 180.2 7.9 14.5

y. Misc. Non-Metalic Mineral Products 43.6 -8.4 -7.3

VALUE OF PRODUCTION INDEX (VAPI) (2000=100) 171.0 7.4 -13.3

AVERAGE CAPACITY UTILIZATION 83.5 -16.6 83.4

UNIVERSAL AND COMMERCIAL BANK'S

LOANS OUTSTANDING TO THE REAL ESTATE SECTOR (P Bn)

SEPTEMBER 2014 SEP-14 % TO TOTAL RE LOAN SEP-13 % TO TOTAL

RE LOAN

Residential 234.45 28.3 195.61 29.2

Commercial 594.28 71.7 473.78 70.8

MOTOR VEHICLE SALESAPRIL 2015 DATA YEAR-AGO

LEVELGROWTH RATE (%)

MOTOR VEHICLE SALES 21,259 18,015 18.0

PASSENGER CAR SALES 8,331 6,697 24.4

COMMERCIAL VEHICLE SALES 12,928 11,318 14.2

55BUSINESS


BUSINESS CLIMATE INDEXSTRIKES IN APRIL 2015

No strikes were recorded in the fi rst 4 months of 2015. Meanwhile, there were a total of 104 notices of strike/lockouts handled during the period.

0

500

1000

1500

2000

2500

3000

3500

4000

MAN-DAYS LOST

0

2

4

6

8

10

12

STRIKES DECLARED

0

100

200

300

400

500

TOURISM ARRIVALS

VISITOR ARRIVALS IN MARCH 2015

Total visitor arrivals registered in March was 456,163, up only by 7.12% from 425,858 in the same month in 2014. Of this, 5.47% or 24,953 visitors were Filipinos residing abroad.

Korea remained the top source of market followed by the U.S. and Japan. Visitors coming from Korea amounted to 93,099 (20.41% share of the total visitors in March). The U.S. market tallied 71,831 visitors (15.75%) while the Japanese market recorded 46,885 visitors (10.28%).

LABOR STRIKES (FEBRUARY 2015)

STRIKES DECLARED WORKERS INVOLVED

MAN-DAYS LOST (000)

2015 2014 2015 2014 2015 2014

JAN - - - - - -

FEB - - - - - -

MAR - - - - - -

APR - - - - - -

MAY - - - - - -

JUN - - - - - -

JUL - - - - - -

AUG - - - - - -

SEP - - - - - -

OCT - 2 - 51 - 1,260

NOV - - - - - -

DEC - - - - - -

TOTAL - 2 - 51 - 1,260

SURVEY ON MONTHLY OCCUPANCY RATE & LENGTH OF STAY

JAN TO DEC JAN TO DEC GROWTH RATE

2013 2012 2013/2012

De Luxe Hotels

Occupancy Rates 70.82 71.49 -0.94

Length of Stay 2.87 2.92 -1.71

First Class Hotels

Occupancy Rates 60.14 58.05 3.59

Length of Stay 2.20 2.30 -4.17

Standard Hotels

Occupancy Rates 65.34 64.82 0.80

Length of Stay 2.46 2.38 3.47

Economy Hotels

Occupancy Rates 52.15 53.44 -2.41

Length of Stay 1.87 2.13 -12.44

Overall Average 67.20 67.25 -0.07

VISITOR ARRIVALS (January to March 2015)

COUNTRY 2015 2014 % CHANGE RANK

KOREA 361,480 300,239 20.40 1

USA 214,057 199,465 7.32 2

JAPAN 130,374 119,951 8.69 3

CHINA 93,043 136,731 -31.95 4

AUSTRALIA 62,899 59,473 5.76 5

CANADA 46,756 42,839 9.14 6

SINGAPORE 44,216 44,817 -1.34 7

TAIWAN 41,713 35,315 18.12 8

UNITED KINGDOM 40,071 36,459 9.91 9

MALAYSIA 37,336 31,800 17.41 10

HONGKONG 31,512 30,422 3.58 11

GERMANY 23,820 24,183 -1.50 12

OVERSEAS FILIPINO 53,744 52,595 2.18

OTHERS 210,815 195,583 7.79

TOTAL 1,393,851 1,311,886 6.25

PH’s tourism industry more competitive – WEF survey · 2015-07-16 · Philippine ANALYST May...

Documents

Transcript of PH’s tourism industry more competitive – WEF survey · 2015-07-16 · Philippine ANALYST May...