Professional Documents
Culture Documents
EDIT PNF Sept 26 2014
EDIT PNF Sept 26 2014
EDIT PNF Sept 26 2014
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Local and foreign investors are encouraged to set up businesses in the new economic
zone in General Santos City and take advantage of economic benefits.
FULL STORIES
1. Build and design a competitive Homestyle industry for the ASEAN
integration
While ASEAN Economic Community (AEC) integration exposes the Philippines to
intense and tougher competition, it also provides market access and diversification for
local stakeholders.
Federico M. Macaranas of the Asian Institute of Management (AIM) said that the
favorable prospects for the Philippine home style industry is rooted on strong
government support and the booming construction industry.
He gave the presentation during the 1st Philippine Homestyle Congress held yesterday
at the SMX Convention Center in Pasay City.
Also projected to benefit the industry are creative workers and design and larger
"focused" markets like the Do-It-Yourself (DIY). At the same time however, he stressed
that the Philippines must be more conscious about related issues like Intellectual
Property Rights (IPR), free trade areas (FTAs) and continuous upgrading of
management skills.
Gross domestic product growth (GDP) is now expected to grow by 6.2% in 2014, down
from the forecast of 6.4% in April, and by 6.4% in 2015, compared with 6.7% in April,
according to an update of ADBs Asian Development Outlook (ADO) 2014, its annual
economic publication released in April.
Still, comparative statistics show the country still has the highest GDP growth forecast
among the Association of Southeast Asian Nations-6 (ASEAN-6) members for 20142015.
The slight deceleration comes with the slowdown in Philippine government spending,
partly reflecting cautious spending by government agencies amid concerns over the
misuse of public funds. Higher inflation and associated monetary tightening are also
expected to adversely impact on growth.
In the first half of 2014, the economy grew 6% on the back of export recovery and
private consumption and investment expansion. Growth for the rest of this year and in
2015 hinge on expectations that post-typhoon reconstruction picks up, government
fiscal disbursement improves, and exports benefit from brighter prospects in the major
industrial economies.
Consumption and investment remain strong, and exports are recovering, said Richard
Bolt, ADB country director for the Philippines. Accelerating infrastructure projects,
taking measures to strengthen competition, and increasing access to finance can boost
growth and create jobs.
Exports of goods and services in the first half of the year reversed a contraction in the
first half of 2013 to rebound by 11.8% by volume. Export gains were notable in
electronics including semiconductors. Imports of goods and services also recovered, but
at a slower pace of 5.7%.
Foreign direct investment, though low compared with other countries in the region,
jumped 77% in the first half of 2014 to US$3.6 billionand almost doubled in 2013 to
$3.8 billion from an annual average of about $2 billion in 2008-2012. Central bank
surveys show business sentiment is generally positive.
But despite strong GDP growth averaging 6.3% since 2010, job generation is
insufficient, said the update.
Underemployment remains high at 18.3% of those employed because new jobs are
largely part time or informal. A stronger manufacturing sectorwhich currently
generates 8% of total employmentand further expansion of tourism and other service
industries, would create more and better-paid jobs, it added.
The Philippine economy mirrors a parallel slowdown in the main economies of
Southeast Asia.
The report noted that except for Malaysia, aggregate growth is moderating in 2014,
slowed by stabilization policy and weaker commodity export prices in Indonesia, political
disruption in Thailand, a government spending slowdown in the Philippines, and soft
domestic demand in Vietnam.
Updated aggregate growth in the ASEAN-6 is now expected to be 4.6% in 2014 from
5% forecast in April, and 5.3% in 2015 from 5.4%.
Indonesias growth has been reduced to 5.3% from 5.7% for 2014, and 5.8% from 6%
for 2015; Singapore to 3.5% from 3.9% in 2014 and to 3.9% from 4.1% in 2015;
Thailand to 1.6% from 2.9% in 2014 and to stay steady at 4.5% next year; and Vietnam
to 5.5% from 5.6% in 2014 and to 5.7% from 5.8% in 2015.
In contrast, Malaysias GDP is seen to accelerate in 2014 to 5.7% from the April
forecast of 5.1% and to 5.3% from 5% for 2015.
Further, the study outlined the significance of streamlining the customs and trade
procedures which were found to benefit the SMEs.
...Actively seek to simplify and increase transparency of the business environment in
general and trade procedures in particular, including through but not limited to implementation of measures included in the WTO trade facilitation agreements, it said.
Duval and and Utoktham further noted that a reduction in customs and trade clearance
times was found to increase SMEs likelihood of participation in export or IPNs relatively
more than that of larger enterprises.
five-percent special tax on gross income and exemption from all national and local taxes
upon expiry of the ITH and allows 100-percent foreign ownership of enterprise.
Strategically located in the heart of Gensans industrial zone, GEZ is within five
kilometers to key ports and has two functional seaports -one of which is one of the
alternate commercial ports of the Philippine Ports Authority.
Also ongoing are the construction and upgrading of vital infrastructure support facilities
and utilities.
With these advantage and benefits, a number of foreign companies have already
expressed serious interest to locate in the zone.
One of them is an American company that has already secured the approval of the
PEZA Board to locate in the ecozone for its food and beverage processing business
using organically grown fruits as raw materials.
Ho explained that because Philippine ports lack the necessary equipment, domestic
liners are forced to buy craned ships, which are more expensive than non-craned
ships and not easily available in the market.
Foreign liners are more efficient and have bigger capacity, she added, because they
use cranes of international ports and need not maintain their own.
Michael Raeuber, president of the European Chamber of Commerce of the Philippines,
said other cost-lowering measures for domestic shipping include allowing bareboat
chartering and reviewing sulfur content requirements.
A technical working group going through the draft paper will meet again to tackle other
related matters, such as the taxes imposed on domestic liners, and how lowering or
lifting them can help cut shipping costs. www.portcalls.com
manpower, road traffic and breakdown, truck bans, floods, security and hijacking
threats, poor inventory management, full container yards, and lack of available space.
Holdups to efficient export flows are almost the same, the report stated, with the
addition of delays in production and releasing of documents from the point of
production.
These bottlenecks were brought into focus when the Manila truck ban was imposed in
February 2014, causing much complication for the supply chain, the biggest being the
congestion at Manila ports.
The report recommended a twin-track solution of intermediate and long-term action
plans that hold major potential to alleviate congestion problems on a short and longterm basis and thereby getting trade moving again.
For intermediate action plans, the following are suggested:
The combination of the immediate and long-term action plans promises to deliver
workable solutions that play a meaningful part in keeping Metro Manila moving while
maintaining the integrity of international and domestic supply chains, the report said.
Moreover, integration not separation between city and port is the lesson to be learnt
from global experience, it said.
Together, the two entities can deliver a larger critical mass of beneficial commercial
activityone feeds off the other.
The positive coexistence of both, however, requires hard work and coordinated
planning, the report added, citing two notable port-citiesMelbourne, Australia and
Vancouver, Canadaas examples.
Both have embraced new technology to optimize traffic management and
simultaneously are investing in new infrastructure to ensure peaceful co-existence
between port and city. In both cases, key port areas are in close proximity to high-end
residential and retail properties, the report further stated.
The template drawn up by the Philippine government back in the late 1980s to privatize
the main container terminals in the Metro Manila area has proved a highly successful
one, it added, noting that under normal operating conditions, the terminals should be
able to offer sufficient capacity to efficiently meet all market needs.
However, terminals cannot operate to their full potential when the supply chain is
hampered by inadequate road infrastructure resulting in extraordinary measures such
as truck bans in predetermined hours.
Other measures suggested for the free flow of import and export cargoes are to keep
the road network seamless and wide enough to accommodate truck traffic, and to
ensure flow is unimpeded by continuously reviewing and expanding the whole system
to ensure that growth is not compromised.
A direct port access road is also seen as essential for port efficiency, vessel berth stay
time, and optimum road transport.
The root cause of congestion is the lack of a dedicated port access road to the Manila
ports, the report said.
The North Luzon Expressway-South Luzon Expressway connector road proposed by
Metro Pacific Transport Corp. with a connection to the three ports will resolve the
current issues and concerns, it said.
The report added that Metro Manila has an urgent need to catch up with the delivery of
appropriate road infrastructure and lay solid plans for the future.
These plans as spelt out by transport stakeholders can build towards the ultimate goal
of adding new port capacity in tandem with supporting road system development and
are essential to obtain optimum use of the new port facilities and achieve efficient
supply chain operations to support growth in overall trade, the report said.
www.portcalls.com
8. Palace approves higher storage fees for overstaying containers
Philippine President Benigno Aquino III has approved the proposed increase in storage
fees for overstaying Bureau of Customs-cleared inbound cargoes with gate pass.
Executive Secretary Paquito Ochoa, Jr. informed the Philippine Ports Authority (PPA) of
the Presidents decision in a memorandum dated September 15.
The new rates take effect on October 1.
Under the approved rates, a twenty-foot container faces a fine of P5,000 per day
beginning the 11th day of storage. This is in contrast to the old rate of P481.30 per day
for the sixth to 10th day of storage, and P529.43 per day from the 11th to the 15th day.
Initially, the PPA intended to apply the new rates starting from the sixth day of storage
(free storage being for the first five days), but later decided to impose them from the
11th day, effectively providing 10 days of free storage for cargo owners.
Other new storage rates are as follows:
Rate by Oct 1
35 footer
P 8,750
Existing rate
(6th to 10 days)
P 842.20
Existing rate
(6th to 10 days)
P 926.42
40 footer
45 footer
P 10,000
P 11,250
P 962.60
P 1,082.90
P 1,058.86
P 1,191.19
One of the governments measures to decongest Manila ports, higher storage rates are
meant discourage cargo owners from using ports as virtual warehouses.
Transport stakeholders earlier expressed opposition to the proposed storage fee hike at
a PPA hearing in August. They said that while they recognized the need for the
immediate pull-out of containers from the congested Manila ports, the proposal was illtimed considering the less-than-ideal business conditions.
They pointed out that cargo owners were currently grappling with issues such as a
shortage of trucks, difficulties in returning empty boxes, and overcapacity of container
yards.
PPA recently said that despite the lifting of Manilas truck ban, it will push through with
decongestion measures earlier identified, which include transferring overstaying
containers to Subic and Laguna.
Batangas and Subic ports were also declared extensions of Manila ports in times of
congestion and other emergency situations, allowing vessels with Manila-bound
cargoes to berth at the north or south port to prevent further overcrowding in Manila.
www.portcalls.com