mb.com.ph | Philippine News | Archive | Business News | 6
Home  » Business » Business News

Business News

BPO seeks Malacañang clarification

The $22 billion IT-business process management (IT-BPM) industry is seeking clarification on President Duterte’s pronouncements for “separation” of economic relations with US, the Philippines’ long-time ally. In a speech during his four-day state visit to China, the President declared to break from the economic and military relations from the US. The IT-BPM industry, which is largely represented by the Business Process Association of the Philippines (IBPAP), generated $22 billion in  services exports last year. Of the $22 billion revenues, majority or 80 percent originate from US-based clients. The industry employs 1.1 million skilled Filipinos. “We continue to monitor the developments given President Rodrigo R. Duterte’s pronouncement Thursday regarding our military and economic ties with the US. IBPAP has formally reached out to the Office of the President to secure an audience with him …

Read More

US readies 2nd MCC compact for PH agri

Despite unsavory rhetoric by President Duterte against the United States, the country’s long-time ally instead turned the other cheek as it readies a grant that will help develop the Philippine agriculture, a key component of the government’s 10-Point Economic Agenda. A statement to the media by the Philippine Embassy in Washington D.C. said that officials of the Millennium Challenge Corporation. (MCC) and Philippine government officials discussed the second compact program and its relevance to improving Philippine agriculture at a recent forum on World Food Prize in Iowa.  MCC is an independent U.S. Government foreign aid agency. Earlier this year, the Philippine government completed the first 5-year compact, a $433-million MCC program focused on road rehabilitation, community development, and revenue administration reform. The second compact, now under development, is proposed to focus on increasing …

Read More

P80-B subsidy needed to lower PH power rates

The government will need to shell out at least P80 billion in annual subsidy for the power sector to gain that leverage of lowering rates to the level of the subsidized energy markets of Asian neighbors. This has been the assessment of Australian consulting firm International Energy Consultants (IEC) and its prescription on the never-ending debate if there are measures that can be done to bring down power rates similar to those enjoyed by other countries. Filipinos are incessantly complaining about perceived high electricity tariffs, despite recent result of the IEC survey indicating that power rates in the franchise area of Manila Electric Company (Meralco) had already been down 28 percent (excluding the value-added tax component) compared to 2012. IEC Managing Director John Morris said “government subsidies continued to play to make power …

Read More

PNOC-RC could take over Agus-Pulangui operations

Instead of decommissioning the Philippine National Oil Company-Renewables Corporation (PNOC-RC), the Department of Energy (DOE) is proposing that it be positioned to takeover the operations of the 982-megawatt Agus-Pulangui hydropower complex in Mindanao in case the final decision is to retain these assets under government ownership. Energy Undersecretary Felix William Fuentebella said this is an option they are seriously considering at this point – and also a proposal that the department would lodge to Congress relative to the future of the Mindanao hydropower facilities. “Instead of creating a new company, our course of action is to align PNOC-RC for the operations of Agus-Pulangui assets, after all, it’s already an existing entity,” he said. It must be noted that stakeholders in Mindanao have been proposing the creation of a new entity to assume the …

Read More

DOE asked to define energy mix

The Department of Energy (DOE) is now being asked the tough questions as to the specific parameters of the proposed energy mix policy so investors can be properly guided on ongoing and future projects. AC Energy Holdings President ad Chief Executive Officer Eric T. Francia said the energy mix “is clearly the big picture” when it comes to policy agendas that the current administration must work on, but until now, the details have been blurry. He said investors, especially in the power sector, have been batting for clarity and a lot of the specifics that must go with that proposed policy. “When you say energy mix, it’s not only the high level goal but implications on the how. And do you do it by technology? What is really their (government) stand, what’s the …

Read More

A first trimester assessment of the Duterte administration’s performance

President Duterte was elected with an overwhelming mandate as the majority pined for a leadership that was both strong and magnanimous. We hoped he would do for the Philippine what Lee Kwan Yew did for Singapore. Different people have different views on President Duterte’s performance. This is my assessment as a businessman, living in Manila. I consider the enactment of the Freedom of Information Act (FOI) as this administration’s greatest triumph. Long overdue, the executive order on FOI mandates full transparency among agencies of the executive branch. It brings us one step closer towards curbing corruption in government. Another milestone is the ratification of an indefinite ceasefire between government, the Communist Party of the Philippines and the National Democratic Front. A substantive accomplishment, too, is the launch of the 8888 portal to receive people’s …

Read More

Strong foundations of PH-US relations (Part 1)

The laudable efforts of the Duterte Administration to foster stronger relations (economic, political, social and cultural) with China should in no way diminish our resolve to continue building on the strong foundations built by former Administrations in PH-US relations.  Former President Fidel Ramos, who has recently publicly criticized PDu30’s anti-American tirades, incarnates the very healthy attitude of being friendly to all countries that can contribute positively to the objective of Philippines sustainable and inclusive development. As a West Point graduate and subsequently President of the Philippine Republic, he did much in strengthening  economic, political and military ties between the two countries. At the same time, he is highly appreciated by the Chinese Government for leading the initiative to establish  the Boao Forum which has put China in the forefront of …

Read More

US firms share P480-M in CSR for PH

Member firms of the American Chamber of Commerce of the Philippines (AmCham) have contributed some P480 million or USD10 million worth of Corporate Social Responsibility (CSR) activities in the country. A survey on CSR was conducted by AmCham to determine how its member companies institutionalize their CSR projects contributing to the welfare of the society. The survey showed that AmCham members’ CSR activities were focused in areas of education, poverty and hunger alleviation, women and youth empowerment, environment and climate protection, reducing inequalities, indigenous community development, persons with disabilities and elderly welfare, and other training workshops. “I was surprised and touched on the interest of our members to greatly contribute for the welfare of the Filipino people,” AmCham Executive Director Ebb Hinchliffe said. “This means that a large number of American businesses in the …

Read More

Foreign investors’ demand for Samsung BioLogics IPO shares is high

Samsung BioLogics Co., the biopharmaceutical business arm of South Korean conglomerate Samsung Group, has drawn more than double the estimated 2 trillion won ($1.76 billion) worth of its planned initial public offering (IPO) from foreign institutional investors during road shows, raising expectations for the success of this year’s blockbuster IPO in the main Korean bourse. According to multiple sources from the investment bank industry on Friday, Samsung BioLogics has invited overseas institutional investors to its IPO roadshows held in Hong Kong and Singapore from October 17 to present the company’s IPO plans and growth potential to attract investment funds. Over the past week, offshore institutional investors are said to have shown strong appetite for the company’s upcoming IPO, offering a total of $5 billion. Considering that more road shows are planned …

Read More

Reebok starts making shoes in US again

Sports equipment manufacturer Reebok is bringing some of its shoemaking back to the United States, unveiling plans to open a new manufacturing lab next year using innovative liquid material and 3D drawing. Some parts of the 300 pairs of shoes planned will come from Asia, but the most technical components will be manufactured in Wixom, Michigan, the company said Saturday. German chemical giant BASF developed with Reebok a liquid material that is drawn across the outsole of the shoe for a three-dimensional fit with the help of 3D drawing. The material helps absorb shock. "This is the very first use of this process to make athletic footwear. We borrowed and enhanced it from a process we found in the automotive industry," said Bill McInnis, Head of Future at Reebok. "The Liquid Factory concept is …

Read More