Philippines Fp12 Pages Finalx

7/31/2019 Philippines Fp12 Pages Finalx

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S P E C I A L A D V E RT I S I N G S EC T I O N

The

Philippines

Discover The Philippinesat worldfolio.co.uk

Ready for any challengeHaving weathered therecession better than most,

the Philippines has renewedconfidence in its economy,its government, and itself

Philippine President Benigno Aquino III

Voters in the birthplace of People pow-er united at the ballot boxes in May2010 to overwhelmingly back a new

government for the Philippines. The No cor-ruption, no poverty campaign led by Benig-no Aquino III clearly struck a chord with theelectorate, and the new administration has heldfirm to its pledge to encourage socio-econom-ic growth through accountability, as the presi-

dent believes greater transparency goeshand-in-hand with poverty alleviation.The new administration immediately took

steps to demonstrate the courage of its con-victions to increase institutional transparencyby introducing zero-waste budgeting, oblig-ing all government agencies to justify their pro-

jected expenses, thereby reducing the potentialfor overspending or corruption.

New investment laws have been designedto provide better guarantees for investors andPresident Aquino has highlighted key areaswith prime investment potential: logistics, min-ing, shipbuilding, tourism, agro-industry, busi-

ness process outsourcing (BPO) and informationtechnology (IT), electronics and semiconduc-tors, and energy and electricity.

We have streamlined business registration,improved power supply, instituted reforms andissued policies to fight corruption, and estab-lished closer coordination between the nation-al and local governments to improve theinvestment climate, even in the countryside,says President Aquino.

With regard to the private sector, many ofAquinos ministers have orchestrated a moreenterprise-friendly and results-based edge togovernment policy.


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S P E C I A L A D V E RT I S I N G S EC T I O N2 The Philippines

In the private sector, if you do not pro-duce, you do not eat. We are focused on mak-ing things happen and letting our actionsspeak for themselves, says Secretary of

Finance, Mr Cesar V. Purisima. The workstyle of President Aquino is designed foraction, not for show. He is really focusingon making sure we are able to execute ourprograms and ensure optimum performanceof cabinet members. Those who do not per-form are asked to move on.

Mr Purisima recently won the 2011Emerg-ing Markets Finance Minister of the YearAward for Asia in recognition of his strongpolicy track record and steadfast commitmentto maintaining economic stability over thepast 12 months.Emerging Markets editorTaimur Ahmad said: Secretary Purisimasdecisive action upon taking office to enforcegreater fiscal discipline allowed the econo-my to grow strongly last year and to insulateit from heightened market sensitivity to sov-ereign indebtedness.

President Aquinos plan, which is oftenreferred to as Aquinomics, is underpinnedby four pillars: fiscal sustainability, infra-structure, investing in people, and improv-ing the way business is done in the Philippines.

On the fiscal and the macroeconomicside we are doing very well, says Mr Purisi-ma. We are a net creditor country; our

reserves are greater than our debt. We are aBOP (Balance of Payments) surplus coun-try: we make more dollars than we spend.

We have streamlined business

registration, improved power supply,instituted reforms and issued policiesto fight corruption, and establishedcloser coordination between thenational and local governments

President Benigno Aquino III

Paquito JojoOchoa

The Executive Secretary isthe highest-ranking officialin the current government.The former city administra-tor of Quezon City, andAquino family friend, has

served as Noynoys legalcounsel since 1998.

Roberto V.Ongpin

The President and CEO ofISM Communications is aformer Minister of Trade andIndustry. Ongpin also partlyowns holding company TopFrontier which controls a

large stake in the San MiguelCorporation.

Cesar V.Purisima

The current Philippine Sec-retary of Finance held thesame position under theMacapagal-Arroyo gov-ernment. He also representsthe Philippines as a gover-

nor in the Asian Develop-ment Bank.

Albert Ferrerosdel Rosario

The Foreign Affairs Secre-tary secured US$1.2 billionin U.S. funding in his for-mer role as ambassador. Healso has vast business expe-rience, ranging from insur-

ance and banking to telecomsand pharmaceuticals.

Leading figures in business and politics in the Philippines

Our reserves are on a historical high and theincrease in reserves, which has proven to besustainable, is structural rather than hot mon-ey inflows driven by the BPO industry andoverseas remittances.

Investing in its people is of paramountimportance: better educated individuals havehigher employment rates and earnings, andproduce more relative to those with less edu-cation. Therefore, governments have to investsubstantial portions of their resources in edu-cation with the expectation that benefits willaccrue over time, and the Philippinesgov-

ernment is very anxious to pursue this tack to have a highly educated workforce goingforward.

To improve the countrys infrastructure, thegovernment is targeting public-private part-nerships (PPPs) in its bid to become a region-al logistics hub. An improved transportnetwork and energy provision would alsospur growth in the tourism sector, which hasample room for development given the coun-trys spectacular natural blessings, and the factthat Chinas burgeoning tourist market is vir-tually next door.

We have an ambitious PPP program,says the finance secretary, but we are mak-ing sure we are doing it properly. We have

launched the first project already a toll roadcalled Daang Hari.Continued on page 4


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S P E C I A L A D V E RT I S I N G S EC T I O N The Philippines 3

In recent years the Philippinemining industry has achievedremarkable growth, as gold andcopper prices have reached all-time highs. Correspondingly,large-scale mining companieshave increased investment, pro-duction and tax payments tothe Philippine Government up by 296% to PhP1.8 billion(US $41.4 million) in 2010.

Philex Mining Corporationstrives for excellence in mineralresource development while tak-ing its social and environmentalresponsibilities seriously. It iscommitted to the continualimprovement of its operations inorder to minimize adverse envi-ronmental impacts, to complywith applicable legislation and

other requirements, and to pro-mote environmental awarenessamong its workers at all levels.

By adhering to the philoso-phy of doing business the rightway, Philex earned US $89.7million in 2010, the secondhighest income in its 53 yearsof operation. And it mined thehighest annual ore tonnagesince 1987 - 9.4 million tonesin 2010, equivalent to anincrease of 14 per cent on 2009.

Continued growth and expan-

sion are on the agenda. Philexhas a number of new projectsin the pipeline, such as extend-ing the mine life in Padcal andadvancing the Silangan Projectin Surigao del Norte. It is alsolooking to consolidate and fur-ther develop its coal operations,and oil and gas prospects. Itplans to spin-off all the energyassets into a subsidiary com-pany, Philex Petroleum, to belisted on the Philippine StockExchange.

Philex has also made strongcommitments to the communi-

Philex Mining Corporation profits froma modern approach to the ancientbusiness of digging for gold

Buried Treasureties it works with. Its opera-tions at the Padcal mine sitehave delivered around US$850,000 of value in health, edu-

cation, livelihood and infra-structure projects, under theSocial Development and Man-agement Program (SDMP). In2010 alone, Philexs SDMP

delivered better healthcare to7,144 people, afforded qualityeducation to 611 students, andimproved 2,300 meters of

roads. And on top of this, Philexis helping to support develop-ing communitiessurvival longafter any given mine ceasesoperation.


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A steady shipCareful work by the Central Bank has helped thePhilippines make progress through stormy watersThe Philippines continues tobe a growth economy asinvestments in good gover-nance and infrastructure con-tinue to gain momentum.

While growth is predomi-nantly below-par in mostadvanced countries, growthprospects in emerging eco-nomies like the Philippines aregetting brighter and are attract-ing more foreign investments.

In the first six months of 2011,net foreign direct investmentsrose 16.4% to US$779 million.Net foreign portfolio invest-ments, on the other hand, grewby 230.2% to US$3.1 billionfrom January-August this year.

Fifty consecutive quartersof positive growth and thefocus of President Benigno S.

Aquino on transparency andaccountability draw muchinterest from investors to investin the Philippines.

First and foremost, thePhilippine economy has stablemacroeconomic conditions.There is a solid fundamentalbase supportive of sustained

economic growth. says Aman-do M. Tetangco Jr., Governor ofthe Bangko Sentral ng Pilipinas(BSP), formerly known as Cen-tral Bank of the Philippines.

Second, the Philippine bank-ing system remains sound andstable. This has been broughtabout by the series of financialsector reforms that we haveimplemented over the years.Most of these reforms seek toimprove risk management prac-tices of banks (e.g. increasedcapitalization of banks, adop-tion of international accountingstandards for financial reporting,enhanced corporate governanceand bank supervision, etc.).

According to Mr. Tetangco,most foreign direct investmentscame from the U.S., Japan, Hong

Kong, Singapore, and the Nether-lands, and were largely placed inreal estate, manufacturing, min-ing and quarrying, financial andinsurance services, utilities, andwholesale and retail trade sectors.

In recent years, the skills ofcentral bankers around theworld have been strenuously

tested. Nevertheless, for thethird time in six years Gover-nor Tetangco was lauded as one

of the worlds top six centralbankers earlier in 2011 in theannual survey by New York-based Global Finance on theperformance of central bankheads. During the global eco-nomic slowdown, the BSP,under the guidance of the Gov-ernor, ensured that credit con-

A Philippine national hero is born.His literary works denounced theconditions of the local population

under Spanish rule, inciting revoltagainst the authorities.

1861Jose Rizal Birthday

The independence of the PhilippineIslands from rule by Spain isdeclared by revolutionary forces

under General Emilio Aguinaldofrom his home

1898Independence Day

Amando Tetangco,Governor of the CentralBank of the Philippines

Additionally, the Philippinesis geographically located at theheart of what is expected to be

one of the fastest growing regionsof the next 20 to 30 years. It ison track to be a part of the ASEANalliance by 2015, an integratedcommunity of more than 600 mil-lion people, boasting a GDP inexcess of $1.7 trillion. We willbe the northern and Pacific gate-way to ASEAN, adds Mr. Purisi-ma.

Billionaire Roberto V. Ong-pin, president and CEO of ISMCommunications and a formerMinister of Trade and Industry,has vowed to attract more for-eign investment into the coun-try. I have brought in so muchinvestment into this country, andI will keep doing it, said Ong-pin, who heads five publicly-listed companies.

Meanwhile, the Philippineslong-standing relationship withthe United States was strengthenedin June this year, when Secretaryof Foreign Affairs Albert Ferrerosdel Rosario met with Secretary of

State Hillary Clinton.Mrs Clinton opened the meet-ing, affirming: Whether we areworking together to combatextremism, help victims of nat-ural disaster, or stand up forhuman rights, the people of ourcountries share a vision of a bet-ter world and a mutual desire to

Continued from page 2
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As food and fuel prices rise,the global economy falters, andtyphoon devastation increases,more Filipinos are being pushedclose to the poverty line.

The Department of SocialWelfare and Development(DSWD), is tasked with revers-ing this trend. Hon. CorazonJuliano-Soliman, Secretary ofDSWD, explains: Were com-mitted to addressing inter-gen-erational poverty by ensuringchildren go to school 85 per centof the time, families go to healthcenters once a month; and thepoorest get fuel and rice subsi-dies. Weve already reached amillion families and aim toincrease this to 1.3 million in2011. But to go further, we needforeign investment in the coun-try and economic growth to lift

Filipinos out of poverty.Hon. Vida T. Chiong, DeputyCommissioner of the Philip-pine Insurance Commission(IC) believes all Filipinosshould have the opportunity tosecure insurance protection by2020. However, key challengesinclude lack of affordability,

and a lack of awareness ofinsurance amongst Filipinos.

Ms Chiong continues: Wefocus on educating Filipinosabout the value of insuranceand promoting microinsurancefor the poor. We aim to fosteran environment of increasedinsurance penetration androbust insurance industrygrowth.


A clean profit

By adhering to a triple bot-

tom-line policy financial andoperating performance, envi-ronmental stewardship andempowerment of communi-ties Philex Mining Corpo-ration has prosperedfinancially, yet not lost sightof its role as a social and envi-ronmental steward.

In fact, principles of sustain-ability have long guided Philexsoperations: its first tailings pondwas constructed in 1967, longbefore the Pollution ControlLaw of 1976 required it. Philexwas also the first mining com-pany in the country to haveachieved ISO 14001 certifica-tion for environmental man-agement.

Government agencies andindustry associations have com-mended the companys activi-ties. Philexs reforestationprograms at the Padcal minesite and at the Silangan Projectwere placed in the 2010 Best

Mining Forest Awards of theDENR - Mines and Geo-sciences Bureau. In November,the Silangan Project received acitation from the PhilippineMine Safety and EnvironmentAssociation for overall excel-lence in environmental, safety,and health management.

Vida T. Chiong, DeputyCommissioner of the PhilippineInsurance Commission

The safety netSocial welfare and insurance can help alleviate the worsteffects of natural disasters and poverty
http://www.worldfolio.co.uk/reports/the-philippines/antonio-g-de-rosas-president-and-ceo-of-pru-life-uk-philippines


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Both public and private sectors are pulling together to raise livingstandards for Filipinos through several projects designed to supportmarginalized sectors of society. Corporate social responsibility(CSR) initiatives from the 100% government-owned and controlledgaming firm, the Philippine Amusement and Gaming Corporation(PAGCOR), address education, nutrition, health, humanitarian andenvironmental issues.

PAGCOR has earmarked P1 billion ($23 million) for the Matuwidna Daan sa Silid-Aralan Project to construct 1,000 new classroomsnationwide in partnership with the Department of Education. It hasalso allocated PhP100 million for the P-Noy Bayanihan Project,which will fast-track the production of school furniture made fromconfiscated, illegally-harvested logs. We fund the conversion of theselogs into chairs and tables for donation to public schools nationwide,says PAGCOR Chairman and CEO Cristino L. Naguiat Jr. The com-pany also ingeniously converts old slot machine stands from its Casi-no Filipino branches into school desks. PAGCORs feeding programfor undernourished children, health service missions, Christmas giftgiving project and disaster relief efforts are other valued CSR acesup the companys sleeve.

Elsewhere, one of the worlds largest providers of customer careoutsourcing services is also playing a role in raising living standards.Sitel has a network of over 120 customer contact centers in 26 coun-tries, and in the Philippines seven call centers make up its largestoffshore contact center operation. Clearly it has an important role in

the regions prosperity. Steve Barker, Sitels General Manager forAsia and the Pacific says: We are the largest employer in Baguio.We have comprehensive medical insurance coverage for employ-ees and their dependents. At many of its operations in the Philip-pines, Sitel provides Baby's Havenfacilities where working motherscan nurse their infants, or spend time with them during breaks.

Petron Corporation has been governed by CSR commitment sinceits inception nearly 80 years ago. Chairman and CEO Mr. RamonS. Ang feels these policies are essential. In carrying out its CSR

mission Petron counts on strategic partnerships with government insti-tutions, businesses, international agencies and civil society groups,as well as its employees, who regularly use their time and talents tohelp make a difference in the lives of others.

Finally, Sagittarius Mines Inc. (SMI) is developing one of the worldslargest copper-gold deposits at Tampakan, and its General Manag-er Mark Williams is aware of his companys responsibilities. Webelieve that it will make a significant difference to our communities,well beyond the life of the project. SMI has been chosen to providefinance and technical assistance to the country to research and explorethe countrys mineral wealth. However, the minerals belong to thepeople and the country. It is important to stress that this is actuallythe countrys project. We are spearheading the project, but the pro-

ject is the countrys, and we are a contractor.

Big companies spreading the wealth

A history of helping the people

Philippine Prudential Life Insurance Company, Inc. (PPLIC)

has a long history of developing low-cost products and CSR ini-tiatives which benefit Philippine society. Gregorio D. Mercado,President and CEO of PPLIC, explains: As far back as the1980s we were providing micro-insurance. Back then, we werethe only provider to offer cooperative members policies withaffordable premiums. And in the early 1990s we formed a poolof insurance companies so we could secure the life insurancecoverage of overseas Filipino workers.

The company has also been involved in CSR programs thatinclude building homes for the poor. Mr. Mercardo says: Werecently launched the PPLIC AMPAPVillage and were doingour share. All insurance companies shoulddo this because the biggest expense inone's household is rent. If that is covered

then you have a little money left for oth-er necessities like insurance.

Corporate responsibility, Philippines style
http://www.worldfolio.co.uk/reports/the-philippines/froilan-a-tampinco-president-of-national-power-corporation-napocor-philippines-n834


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A massive fully integrated leisure andentertainment complex is set to take tourismto a whole new level in the Philippines.The $4 billion brainchild of the PhilippineAmusement and Gaming Corporation(Pagcor), Entertainment City Manila willbe developed over the next five years ona 254 acre plot of reclaimed land along thecoast of Manila Bay.

Four licensees Travellers Internation-al Hotel Group Inc., SM Group, Bloomber-ry and Aruze will each build a total of250,000 square meters of mixed leisurespaces. A maximum of 7.5 per cent of thefloor area at the site will be dedicated togaming, opening up the vast majority ofthe estate to a variety of resort amenitiesand family-friendly attractions, such asshopping, dining and entertainment venues.

Pagcor is committed to creating a mul-tifaceted leisure and entertainment centerthat is internationally benchmarked. Wewill also continue to emphasize the strength

of our human resources, says Cristino L.Naguiat Jr., Chairman and CEO of Pagcor.

Pagcor expects to transform the Philip-pines into one of the premier tourist des-tinations in the world. A10 per cent sharein the $115 billion global gaming pie willgive the Philippines $11.5 billion in rev-enue, making the country an even biggerdestination than Las Vegas in terms ofearnings, says Mr. Naguiat. If we suc-ceed, we will generate an additional one

million jobs and bring in a million moretourists.

Developed by Cristino L. Naguiat Jr.,Chairman and CEO of Pagcor, the

complex will feature more

than 10,000,000 sq. ft.of leisure space

Entertainment CityA spectacular investment in leisure and gaming

I am not just promoting theCasino, I am promoting thewhole of the Philippines.Its not just about the gaming its the scenery, and all thenatural wonders youcan see in these islands.

Cristino L. Naguiat Jr.Chairman and CEO of Pagcor


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Increased greenpower gener-ation from geothermal, windand hydro sources can reducedependency on costly import-ed fossil fuels thereby mak-ing the benefits financial as wellas environmental.

Currently, the Philippines reliesheavily on foreign energysources: imported coal and crudeoil accounted for 50 per cent ofthe total energy supply in 2007.Yet the country has rich renew-

able energy potential, includingrobust wind energy sites, idealsolar conditions, and many geot-hermal and biomass resources.In fact, it is already second onlyto the U.S. in terms of geother-mal energy production.

The country wants to furtherreduce air pollution, with Ramon

Paje, Secretary of Department ofEnvironment and NaturalResources (DENR) aiming topopularize the use of electric tri-cycles. The ultimate aim is forour country's five million tricy-cles, of which 2.8 million are inMetro Manila, to become zero-emission vehicles, he said.

Another plan is to convert cur-rent diesel-run jeepneys amajor public vehicle in the Philip-pines into electric vehicles.

This, Paje said, would keepthe cultural identity of the jeep-ney as uniquely Filipino, whileat the same time increasing reduc-ing emissions.

Prompted into action by the2008 fuel crisis, the Departmentof Energy created the Renew-able Energy Act. Its aim is to pro-

mote the development and com-mercialisation of renewable ener-gy resources to achieve nationalenergy security, reduce green-house emissions, be of better val-ue to the consumer, and reduceenergy imports. Fiscal and non-fiscal incentives to private sectorinvestors, equipment manufac-turers and suppliers are beingoffered to help reach these targets.

The National Renewable Ener-gy Program, launched in June

this year, aims to triple renewableenergy capacity to 15,400megawatts by 2030.

"Renewable energy resourcesare expensive because its emerg-ing technology, but in the longterm the price come down, mak-ing it cheaper than traditionalsources," Layug said.

The Philippines is set to hosta bio-energy conference dubbedBe Independent, Go Green Ener-gy, on January 12-13 next year,to help develop a robust and prof-itable sector in the country

It hopes to encourage moreinvestors to become involved in

biofuel feedstock production andprocessing, and renewable ener-gy production including biomassfeedstock production andbiopower generation.

President Aquino is expectedto grace the event, along with Mr.Paje and Energy Secretary JoseRene Almendras.

Already theworlds secondlargest producerof power fromgeo-thermalsources, thePhilippines istaking renewableenergy seriously

Ramon J.P. Paje, Secretaryof the Department ofEnvironment and NaturalResources (DENR)

Winds of change blow through the islands
http://www.worldfolio.co.uk/reports/the-philippines/lito-mondragon-president-and-ceo-of-pmdc-philippines-n835


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Leading from the front

Philippine GDP grew 7.3 percent in 2010 to US $188.7 bil-lion, and Petron Corporation(Petron), the largest oil refiningand marketing company in thePhilippines, believes it hasplayed a key role in boosting thecountrys economic progress.

Ramon S. Ang, Petron Chair-man and CEO explains: Sup-plying nearly 40 per cent of thecountrys oil requirements,Petron posted a US $78 millionnet income for the first quarterof 2011, generating income andtax revenue for the Philippineeconomy as well as creating more

jobs through the establishment ofmore service stations nationwide.Also, the local production of oil

and petrochemicals is essentialto the countrys growth, fuelingvital sectors such as transport,manufacturing, and power gen-eration. We also provide rawmaterials used in everyday prod-ucts such as food packaging,home appliances and car parts,among others.

Petron, a long-standing busi-ness in the Philippines estab-lished in 1933, is a major playerin the local downstream market.Petrons Integrated Manage-ment Systems-certified refineryin Limay, Bataan, has a ratedcapacity of 180,000 barrels aday. It processes crude oil intoa full range of petroleum prod-ucts including LPG, gasoline,

diesel, jet fuel, kerosene, indus-trial fuel oil and solvents, whichare distributed through itsnationwide network of 32

depots. Furthermore, throughover 1,700 service stations, itretails gasoline, diesel, andkerosene to motorists and pub-lic transport operators, and hasalso established its conveniencestore brand Treats at its ser-vice stations.

Despite the strength andgrowth of the Philippine oilindustry, however, Mr. Angbelieves there is much work tobe done. The petrochemicalindustry here in the Philippinesis very underdeveloped. Webelieve that the local market isbig enough to warrant theestablishment of a more devel-oped petrochemical industrysimilar to that of Thailand.Thailand is now self-sufficientand in fact exports petro-chemicals. It is a model that wewould should take a seriouslook at and emulate."

Petron Corporations profits havehelped the whole country but theresmore work to be done

Ramon S. Ang, Chairman and

CEO, Petron Corporation

Mr. Dinalo Tamayoand Mrs. CynthiaTamayo, thePresident and VicePresident of DDTKonstract, Inc. withdaughter AndreaMarie, the first of anew generation

of Tamayos to takethe company to newheights

A success story in the Philippineconstruction industry

DDTKonstractwas launched in 1998 with capital of just a few thou-sand dollars, made up of the Tamayos life savings and loans fromfamily. Today, DDTKonstract has a turnover of over 5 billion pesos(US $10 million).

The companys success has been built on word-of-mouth recom-mendations, and a reputation for always completing jobs to per-fection. Central to this was the use of the world-class technologyand quality materials from Sweden and the UK.

Certification as a registered U.S. contractor has helped the com-pany expand, via Guam and Hawaii, into mainland America: DDTnow have offices in San Francisco and Las Vegas. The Tamayosefforts have created a true Filipino success story.


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Philippines Fp12 Pages Finalx