Philippines to Attract Billion Dollars FDI with Halal Industry Road Map

Halal food processing to help attract investments from Qatar to Philippines

Developing the halal market, including the agro-industrial and food processing sectors, could further stimulate FDI inflow into the Philippines, particularly Qatari investments, a Qatari entrepreneur has said.

The Philippine government wants to tap opportunities in the halal market, touted as a growing billion-dollar global industry, and is currently building a roadmap for its halal industry.

To do this, the Philippines’ Department of Trade and Industry is working with other agencies like the Mindanao Development Authority (MDA), National Commission for Muslim Filipinos (NCMF), and the Department of Agriculture (DA).

Qatari businessman Farhan al-Sayed lauded the Philippine government’s plans to develop the southern island of Mindanao, which, he said, “has a huge, untapped potential.”

“Halal is a very interesting market… in the case of Malaysia and Indonesia, they are already making billions of dollars from the industry. As their Asean (Association of Southeast Asian Nations) neighbour, the Philippines should also benefit from this.

“And I think Mindanao would be the ideal location to setup these businesses and this is going to help the growth of the region, which is eight times larger than Qatar and it’s going to settle and bring up not just businesses but also peace and order in the area,” al-Sayed told Gulf Times.

Aside from the halal industry, al-Sayed said Mindanao would be “an ideal location” to develop agro-industrial and food processing facilities, which could help attract Qatari investments to the country.
Following his state visit to Brunei Darussalam last year, Philippine President Rodrigo Roa Duterte said the trip would benefit the country’s halal industry. He said Brunei has expressed its commitment to help develop Mindanao’s halal industry in the areas of certification and capacity building.

Aside from grooming Mindanao into a production and export hub for halal-certified products, Duterte also underlined the island’s potential as a potential producer of tuna, sardines, banana, coconut, fruits, and poultry and livestock products. In the recently-held ‘Philippine Investments Conference’ in Doha by the Philippine Economic Zone Authority (Peza), Mindanao Development Authority (MDA) chief of staff Abdul Alonto also underlined Mindanao’s capability to export processed halal meat.

During the event, Philippine Business Council-Qatar (PBC-Q) chairman Greg Loayon also cited other investment opportunities in the Philippines aside from the halal market.

“Other than economic zones, manufacturing, tourism, furniture export, and healthcare are other investment opportunities that Qatari investors can look into the Philippines both from an outbound and inbound perspective such as Qatari investments in the Philippines or business opportunities in the Philippines that can be brought to Qatar,” he said. - Gulf Times

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Malaysian Eyes to Construct 23 Buildings: $2.4 Billion USD For New Federal Government Capital Offices in Clark

Putrajaya Luxury Residence. Photo:worldarchitecturenews.com

AlloyMtd eyes RM11bil Philippine ‘Putrajaya’ job

AlloyMtd Group has submitted a bid to build a new administrative centre for the Philippines Government at an estimated project development cost of $2.4 Billion US Dollars.

Located in the city of Clark, approximately 96 kilometres from Manila, the proposed 1,000-hectare Clark Administrative City project will house the executive, legislative and judicial bodies of the Philippines federal government.

It replicates Malaysia’s Putrajaya and will serve as the centralised site for the national government.
Under AlloyMtd’s proposal, the project will consist of 23 buildings encompassing some 273,000 square meters. The estimated project cost will be around US$2.4bil (RM10.62bil).

Speaking to reporters during the inauguration of the Palayan City Government Centre and Central Business Hub in Nueva Ecija province, AlloyMtd president and chief executive officer Tan Sri Azmil Khalid (pic) said the proposal represented a gigantic leap for the company, which has had a substantial presence in the Philippines over the past 11 years.

“We have had success in creating ‘mini Putrajayas’ in the country, or new centralised administrative and business centres to spur growth. But with a project of this magnitude, we can build a ‘real Putrajaya’ for the Philippines government,” he said.

The proposal to relocate and centralise the country’s Government entities has been mooted for a long time.

The consolidation of national Government offices away from the congested Metro Manila city centre will enhance efficiency, while at the same time the new location would also become a new centre of operations in times of natural disasters.

The project would be overseen by the Bases Conversion and Development Authority (BCDA), a Government agency created to manage the conversion of former military bases into income-generating facilities.

AlloyMtd was invited by the BCDA to submit the proposal for the development of the project. A presentation of the master development plan was made to the BCDA chairman and board executives on Feb 2.

Azmil added that funding for the project would likely come from a sukuk issuance in Malaysia.
“We are seeking the backing of the Philippines Government in regards to the sukuk so the terms are more favourable for investors,” he said.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed, who was the guest of honour at the Palayan City project inauguration, lauded the proposal as it is wholly supportive of the Malaysian Government’s intention to boost economic and business relationships with its Filipino counterparts.

AlloyMtd has a track record in creating centralised business and administrative centres for local Governments in the country. Its projects include the Calabarzon Regional Government Centre and the ongoing Palayan City project, as well as the Bataan Government Centre.

The Malaysian conglomerate, which has a presence in 16 countries, has an entrenched presence in the Philippines in the infrastructure, institutional facilities and property development segments.

Building on the success of its RM1bil South Luzon Expressway project, the company is preparing for another major undertaking, as it had submitted an unsolicited bid for the Manila Mass Rapid Transit (MRT) Line 8 project last month.

The project, which was submitted by a consortium comprising AlloyMtd and East-West Rail Corp, spans about nine kilometres of elevated and depressed guideways with 11 stations along the route.
It runs from Quezon City to Lerma St. in Manila and the estimated project cost for the venture is around US$1bil (RM4.4bil).

The proposal is currently under review by the Philippines Department of Transportation and the National Economic and Development Authority (NEDA).

The MRT project is also the first project proposal from the private sector that was resubmitted to NEDA under the new Duterte administration, Azmil confirmed. - The Star Online

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Philippines' hits $7.93 Billion USD Foreign Direct Investments (FDI) in 2016

Philippines' hits $7.93 Billion USD Foreign Direct Investments (FDI) in 2016

Philippines’ FDI inflow hits record high in 2016

THE PHILIPPINES received a record $7.93 billion in actual foreign direct investment (FDI) last year, as sound macroeconomic fundamentals overshadowed the uncertainties brought about by leadership changes within and outside the country.
The net inflow of foreign direct investments (FDIs) soared 40.7% above the $5.64 billion recorded for 2015, according to preliminary data released by the Bangko Sentral ng Pilipinas (BSP) on Friday.

The yearend result surpassed by 18.4% the $6.7 billion projected by the central bank. The forecast represented a new high in itself.

Intercompany borrowings accounted for more than 65% of last year’s net inflow, as foreign firms placed $5.19 billion -- 68.6% over the $3.08 billion recorded in 2015 -- in debt instruments of Philippine subsidiaries and affiliates.

Equity and investment fund shares accounted for $2.75 billion, a 7.1% increase from the $2.56 billion booked in 2015. Net equity infusion rose 12% to $2.04 billion from $1.82 billion, making up for the 4.9% decrease in reinvestment of earnings to $710 million from $747 million.

In December alone, the net FDI inflow more than doubled to $669 million from the $272 million registered in the comparable 2015 period.

More than half or $415 million of the net inflow in December came from placements in debt instruments. Lending to Philippine subsidiaries or affiliates almost tripled from the $139 million reported a year earlier.

Investments in equity and investment fund shares nearly doubled to $254 million from $133 million. Net equity capital infusion surged 2.7 times to $206 million from $77 million, offsetting the 16.1% drop in reinvestment of earnings to $47 million from $56 million.

Investors from Japan, Hong Kong, Singapore, the United States and Taiwan made most of the equity infusions largely to financial and insurance; arts, entertainment and recreation; manufacturing; real estate; and construction activities.

“FDI inflows remained robust, supported by strong investors’ confidence in the country’s solid macroeconomic fundamentals,” the BSP noted in a statement accompanying the data.

“NO FLUKE”

In separate e-mail interviews, economists noted how the growth story of the domestic economy cancelled out concerns over possible changes in policy direction both in the Philippines and its major trading partner, the US.

“It is clear that the Philippine economic growth story is intact despite all the uncertainties of US policies and the continuous noise of domestic politics,” Ruben Carlo O. Asuncion, chief economist of the Union Bank of the Philippines, noted in an e-mailed correspondence.

Mr. Asuncion had expected net FDIs to the Philippines to grow slower and reach at least $7 billion toward the yearend.

“This significant growth, I believe, is on the back of solid macroeconomic fundamentals for the past 18 years or 72 quarters. This clearly means that the Philippines’ growth story is no fluke. Foreign investors recognize this observation with the 40.7% FDI growth for 2016,” Mr. Asuncion said.

Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines, cited the bright prospects for the Philippine economy as well.

“Last year, FDI inflows were affected by the country’s political transition and the US presidential election. These factors, however, were not enough to overshadow the country’s strong economic prospects,” Mr. Dumalagan said.

Foreign investors have nevertheless raised concerns over inefficient government bureaucracy, inadequate supply of infrastructure, corruption and tax regulations last year, another economist noted, citing The Global Competitiveness Report 2016-2017 of the World Economic Forum (WEF).

“I also cite infrastructure as one of the most compelling reasons why it’s difficult to commit to investing in the Philippines,” the economist said.

“Imagine setting up a manufacturing plant here only to find out we have one of the most expensive and unreliable electricity, highways are bogged down in traffic, airports have only 1.5 runways and flooding is a problem in the region’s worst port system,” the economist added.

The economist further noted the retreat of the Philippines by 10 notches in the Global Competitiveness Index, ranking 57th out of 138 economies covered in the report released by the WEF three months after President Rodrigo R. Duterte took office in end-June 2016.

“Investors now have a stark concern about the level of institutions in the country going forward. This moves hand in hand with the upholding of the rule of law, which can get foreign players a little bit concerned,” the economist said.

Landbank’s Mr. Dumalagan, however, expects the Philippines to continue registering net FDI inflows this year on the sustained strength of the domestic economy along with the improving economic conditions abroad.

“Japan and the US, two of the country’s major sources of FDIs, are expected to show stronger growth this year, suggesting potentially ample investable funds from these economic giants despite possibly lesser monetary accommodation from the Bank of Japan and the US Federal Reserve,” Mr. Dumalagan said.

“The protectionist stance of the new US administration, however, poses a risk, as it could potentially reduce the amount of capital inflows from the US.”

FDIs in the Philippines, by Reuters’ reckoning, are minuscule compared with that in regional peers due to poor infrastructure, high power costs and foreign ownership restrictions in key industries. - Business World Online

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Philippine Export Rose Up 22.5% to $5.1 Billion USD - Fastest in 3 Years

Electronics Export in the Philippines Rose up 22.5% January to $5.1 Billion US Dollars

Exports from the Philippines grew at their fastest clip in three years in January as shipments of electronics took off.

Exports rose at their quickest pace in three years in January on demand for technology goods and commodities, while continuing strong imports underlined a buoyant domestic economy.

The Southeast Asian economy is one of the fastest growing in the world and strengthening global trade could complement robust domestic consumption as President Rodrigo Duterte's government aims to sustain annual growth above 7 percent during his six-year term.

Exports in January rose 22.5 percent from a year earlier, gaining for a second month in a row, while imports jumped 9.1 percent, data from the Philippine Statistics Authority showed on Friday.

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Country’s exports jumped 22.5 per cent year on year to $5.1bn in January, coming in above a median forecast from economists compiled by Bloomberg of 10.5 per cent growth.

Shipments of electronics, the country’s top export accounting for 46.1 per cent of total export revenue in January, increased 10.4 per cent year on year to $2.4bn.

Japan remained the Philippines’s largest export destination accounting for 17.3 per cent of total exports or $887.7m with the US its second largest market accounting for $847m.

Imports rose 9.1 percent year on year to $7.4bn, which was slightly below economists’ median estimate of a 10 per cent increase.

This resulted in the trade deficit of$2.3bn, coming in below estimates of $2.9bn and improving on the $2.56bn deficit in December.

Vishnu Varathan, senior economist at Mizuho Bank, said the spike in exports was largely in line with the strength in shipments elsewhere in Asia.

"There is a confluence of low-base effect and also seasonal uptick that went into the end of last year," he said.

Eight of the country's top 10 export products rose in January, with electronics up 10.4 percent from a year earlier. Electronics remained the country's No. 1 export, accounting for 46.1 percent of total revenue in January.

The country's biggest imports for the month were electronics, mineral fuels, transport equipment, industrial machinery, and iron and steel.

Exports to the country's top trading partners such as the United States and China increased 21.2 percent and 23.6 percent, respectively, in January from a year earlier. Shipments to Japan, the biggest export market, fell 6.6 percent.

While the Philippine economy is largely driven by domestic consumption, Varathan said it would also be buffeted by any change in external trends.

"We want to see how trade negotiations between the U.S. and China pan out and the corresponding knock-on effect that you'll see in Asia," Varathan said. With reports from Financial Times and Reuters 

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President Duterte at the Ground Breaking of ₱27 billion Cebu-Cordova Link Expressway in Cebu Philippines

Ground Breaking of Cebu-Cordova Link Expressway

Around 300 officials in Central Visayas joined with  President Rodrigo Duterte in the groundbreaking ceremony for the ₱27 billion Cebu-Cordova Link Expressway.

The event will take place in Cordova town at 3 p.m. but prior to that, Duterte will hop on a chopper to inspect from the air the site in Cebu City where the other end of the bridge will land.

Jonjie Gonzales, chief of staff of Presidential Assistant for the Visayas Michael Lloyd Dino, said Dino will join the President during the aerial inspection.

During the groundbreaking, Secretary Adelino Sitoy, the Presidential Adviser on Legislative Matters, will deliver the welcome message, which will be followed by speeches from Cebu City Mayor Tomas and Manuel Pangilinan, chairman of the Metro Pacific Tollways Development Corporation.

From Cordova, Duterte will proceed to Waterfront Mactan Airport Hotel and Casino to induct the new officers of the Cebu Chamber of Commerce and Industry at 5 p.m. The President is expected to speak at the gathering.

He is scheduled to fly to Davao after the event.
Meanwhile, Pangilinan together with Rodrigo Franco, president of MPTDC, Osmeña, Cordova Mayor Mary Therese Sitoy-Cho and former Cordova Mayor Adelino Sitoy are expected to media briefing on the bridge at Radisson Blu in Cebu City.

Pilipog Bridge
(Pilipog is a binisaya term which means "small kind")

Because the groundbreaking ceremony is just a few meters away from the Pilipog Bridge in Cordova, the bridge will be closed to all vehicles from 12 noon until 4:30 p.m., said the Cordova Response Emergency And Traffic Enforcement (CREATE).

The bridge connects Cordova and Lapu-Lapu City.

All vehicles from Lapu-Lapu City can travel up to the Tacan market area in Babag 2 while those coming from Cordova town proper can travel to the corner of Barangay Ibabao.

Motorists going to and from Cordova are advised to take the Gabi Bridge in going to and from Lapu-Lapu City.

New Route

Spanning eight kilometers, CCLEX will connect Cordova to Cebu City and will serve as an alternate route in going to and from the Mactan Cebu International Airport.

Being a toll bridge facility to be built under a private-public partnership (PPP) scheme, the project will enable the LGUs of Cebu City and Cordova to provide its constituents badly needed infrastructure with private sector funding.

The MPTDC, through its subsidiary, the Cebu Cordova Link Expressway Corporation will design, build and operate the bridge.

MPTDC is one of the Philippines’ investment holding companies with proven track record in designing, constructing, financing, and operating toll facilities and expressways.

It currently operates some of the countries’ major expressways such as the North Luzon Expressway, Subic-Clark-Tarlac Expressway and Manila Cavite Toll Expressway, paving the way for faster and more efficient movement of transportation, goods and services in central areas of the Philippines. (FREEMAN)

Where to Stay in Cebu?

Book the cheapest to the most elegant hotel in cebu in a very affordable prices. 

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US-Asean Business Council upbeat on Philippine Economic Prospects

In Photo: Members of the US-Asean Business Council (US-ABC) hosted a roundtable for Trade Undersecretary Nora K. Terrado on February 22 in Washington, D.C.Photo: Business Mirror

‘FOR the first time in three years, the Philippines made it to the worldwide list of top 20 investment destinations of multinational enterprises,” Trade Undersecretary for Industry Promotion Group Nora K. Terrado told participants in a roundtable organized by the US-Asean Business Council (US-ABC) on February 22 in Washington, D.C.

Terrado said with the country’s 6.8-percent GDP growth in 2016, the Philippines continues to be one of Asia’s fastest-growing economies, exhibiting resilience amid external shocks.

This message highlighted Terrado’s presentation about the country’s improving global competitiveness ranking.

Terrado discussed the current administration’s 10-point socio-economic agenda, which aims to sustain improvements in the Philippine investment climate, support rural development, and further enhance the country’s infrastructure, human capital and social-protection programs.

“The whole government is tasked to continue to improve the ease of doing business in the Philippines,” Terrado said.

As chair for Asean 2017 Summit, the Philippines is poised to highlight the region’s strengths by engaging the international business community, foreign governments and investors through the Asean Business and Investment Program (Abip).

As chairman for the Asean Committee on Business and Investment Promotion, Terrado urged the US-ABC and its members to participate in the business activities to be held in the Philippines, focusing on themes, such as regulatory coherence, micro, small and medium enterprises (MSMEs), women and youth entrepreneurship, and innovation.

Marc Mealy, vice president for policy of the US-ABC, expressed positive feedback after the dialogue with Terrado.

“With the Philippines serving as the current Asean chairman and having one of the highest GDP growth rates in Asia, the representatives from the 13 American multinational companies who participated were keen to receive the undersecretary’s update on current business trends in the Philippines and the economic priorities of the Duterte administration,” Mealy said. “The Council looks forward to conducting our 2017 senior executives business mission to the Philippines later this year.”

The US-ABC members that participated in the dialogue were Coca-Cola, Fluor, Citi and Philip Morris, among others. - BUSINESS MIRROR

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1 BTC - USD Hits 1,120 and Continue Rising for the coming USA SEC ETF Decision March 11

Bitcoin hit 1,120 USD. Source: Blockchain

Friday, February 24, 2017 11:30 PM UTC +8GMT

BTC/USD hit an all-time high of 1220 level on Friday and is currently trading at 1209 levels at the time of writing (Bitstamp).

Philippine Peso - BTC Exchange rates : ₱60,277.64

Coins.ph exchange rate:  Buy: ₱60,737 PHP | Sell: ₱58,875 PHP

Buybitcoin  rate:  Buy: ₱61,581 PHP | Sell: ₱58,529 PHP

The recent upswing is possibly being driven by the upcoming decision on bitcoin ETF by the US Securities and Exchange Commission (SEC). Traders seem to be largely bullish on the bitcoin ETF getting the approval, CoinDesk reported. The SEC has until March 11,2017 to approve or disapprove the ETF.

According to Bloomberg, President Trump’s policy uncertainties might be the reason behind the recent rally. It explains that investors are looking to hedge against potential global uncertainty in the wake of President Trump’s policies and are speculating relaxation of digital currency regulations under his leadership.

On the upside, the pair will now run into resistance at 1245 (127.2% retracement of 1139.89 and 751.34) and a break above would see it testing 1280 (113% extension of 751.34 and 12.20)/1347.

Momentum studies remain bullish. Any dips could be taken as an opportunity to go long. However, caution is advised as RSI and stochs are in the overbought zone.

On the flipside, support is seen at 1200 (psychological) any violation would drag it to 1140 (trend line joining 941.81 and 1074.69)/ 1115 (5-DMA). A break below 5-DMA could see further weakness in the pair.

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DO YOU WANT TO START EARNING BITCOIN WITHOUT SPENDING EVEN A CENT? 
   
STEP 1: 

FOR PHILIPPINE CUSTOMERS (INCLUDING OFW ABROAD): 
You must download the Coins.ph App below and register. This app would serve as your wallet to store your collected bitcoins.

FOR OUTSIDE PHILIPPINE CUSTOMERS OR FOR NON-FILIPINO CUSTOMERS

You must have a bitcoin wallet and bitcoin address through blockhain or at  Coinbase.com  You may download the Coinbase.com App below to begin.

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STEP 2: 
FOR Coins.ph Follow the steps 1 to 3 to get the Bitcoin address and save this as you need this address.

In order for you to have a new Bitcoin address using the Coins.ph , You must follow the 3 steps above as shown in the screen captured photo. 3DkAZ2o2pypqs7KgZq5LbtEQEhgovg9iy8 is a sample of a bitcoin address.

Note: Coins.ph would ask you to download aswell the Google Authenticator as the second security verification to make sure that you are the owner logging into the account. Every time that the Coins.ph app would ask for verification, you must open the Google Authenticator as it would display a new code. Such code would change everytime you make a new transaction.

FOR  Coinbase.com if you could not find the button that would provide a new bitcoin address then proceed to  blockhain, register and get your new Bitcoin address.

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STEP 3: 

With your bitcoin in your wallet, now you could start trading  at live trading platform by joining the fast and easy simpleFX Bitcoin trading platform.  . It is risky but if you want to take the risk and know how to see the trend up and down then you could make your $100 USD into $1,000 USD in just a day. The platform will provide you educational video tutorial if you are a n00b in currency and stocks trading.

Current exchange rate for 1 BTC to USD is $1,1888 or check Google echange rate for updates

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Automakers boosting output in the Philippines -Nikkei

Mitsubishi Motors' new pressing plant under construction in the Philippines. Photo: Nikkei Asian Review 

Automakers boosting output in the Philippines

Mitsubishi Motors, Toyota taking advantage of government incentives
The Philippines' auto manufacturing sector is kicking into higher gear as Japan's Mitsubishi Motors prepares to launch a new production line on Friday. An underdeveloped local supply network, however, still detracts from the country's appeal.

The Mitsubishi example

Located in Laguna Province south of the capital Manila, the Mitsubishi plant currently assembles two vehicle models, one of which is the L300 service van. Daily production is 50 units combined. The additional assembly line will add Mirage subcompacts to its repertoire, with a goal of producing 30,000 units a year.
The Japanese automaker is also spending roughly 10 billion yen ($88.1 million) to construct an on-site pressing plant. The facility is due to start up as early as the end of the year. There, Mitsubishi will fabricate roofs, engine hoods, trunks and other large parts that are currently being imported from Thailand. The main plant will eventually procure 50% of its parts locally.

"The steel sheet [for the Mirage] is significantly thinner than the type used for pre-existing vehicle models, which will require advance technological capabilities," explained Yosuke Nishi, first vice president of Mitsubishi Motors Philippines.

Mitsubishi also recognized about 30 outside parts makers as tier-one suppliers. Several, such as Denso, which has manufacturing operations in the Philippines, are fellow Japanese companies. Roughly 10 are local firms, including Manly Plastics and Valerie Products Manufacturing.

The Mitsubishi operation is even attracting other Japanese parts manufacturers to the Philippines. Shizuoka Prefecture-based Usui has established a new production site at a rented warehouse. There, three technicians will perform final bending work on components shipped from Japan.

Subsidizing growth

Last year, the Philippine auto market expanded 25% to 402,461 vehicles -- or quadruple the sales tally of a decade ago. However, imports made up the bulk of that growth, with the share of domestically made autos declining to 26%. In 2010, six members of the Association of Southeast Asian Nations, including the Philippines, all but eliminated reciprocal import tariffs. That opened up the Philippines to a flood of finished vehicles from Thailand and other places.

Looking to erase the resulting trade deficit and boost employment, the Philippines last year rolled out a 27 billion peso ($540 million) government incentive scheme aimed at automakers that build plants onshore. Mitsubishi's two Mirage models and Toyota Motor's Vios sedan have made the cut for the program, which requires a specific level of local procurement.


Toyota assembles the Vios and the Innova minivan in the Philippines, and it will begin manufacturing the new Vios model covered by the incentives in mid-2018. The Japanese car manufacturer is also installing large pressing equipment to make auto body parts in-country instead of importing them from Thailand. In addition, the automaker will procure more parts locally, such as center consoles.

Cost handicaps



But unlike in Thailand, where automakers can procure core components like engines, the number of parts that can be made in the Philippines is limited. It costs roughly 1.7 million yen to produce one vehicle here, a nearly 200,000 yen premium over Thailand, according to the Philippine Department of Trade and Industry. Expenses associated with imported components account for 49% of the total. That ratio is only 7% in Thailand.

Currently, it is more affordable to import finished cars, even when considering transport and labor costs. Mitsubishi and Toyota have committed to onshore production because the cost savings from expanding local procurement, and the roughly 100,000 yen per vehicle in government subsidies, will offset the handicap.

"We are starting to have prospects for Philippine production to cost less" than imports, said Satoru Suzuki, president of Toyota Motor Philippines.

A model for the rest?

Vietnam, another latecomer to auto manufacturing, could learn from the Philippines. As a member of the ASEAN Economic Community, Vietnam's tariffs are due to be abolished next year. That would likely open the floodgates for vehicles assembled in Thailand and other places.

But the Philippines could also turn out to be a cautionary tale. Ford Motor shuttered its production plant in the country, for one. In addition, one condition for receiving government incentives is production of 200,000 vehicles within six years. Over 30,000 units of the Vios were sold last year, but reaching the threshold with Mirages will be no easy task considering that the model's sales were only about 20,000 units. Mitsubishi will expand its network of dealerships from 48 to 70 by 2020.

Furthermore, the government plans to raise taxes on new vehicle starting in 2018, a potential headwind for sales. - JUN ENDO, Nikkei staff writer +Nikkei Asian Review 

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Pantawid Gutom Cash Transfer in the Philippines Lauded by World Bank as world's best

Conditional cash transfer beneficiaries PHOTO FROM BLOGS.ADB.ORG

PH cash transfer program among world’s best–World Bank

The World Bank gave the country’s conditional cash transfer (CCT) program high marks, saying it was one of the “largest and best-targeted social safety net programs in the world.”

Ruslan Yemstov, World Bank’s leading economist on social protection and labor, presented on Wednesday the results of the bank’s “The State of Social Safety Nets 2015” report which showed that 82 percent of the benefits of the Philippines’ CCT program went to the bottom 40 percent of the population and noted that it was “way superior” to previous social programs.

“The poor and vulnerable in the Philippines benefit from what is today one of the largest and best-targeted social safety net programs in the world,” said Yemstov, who led the team that prepared the WB report, said.

Protecting families

Social safety net programs include cash and in-kind transfers to poor households with the goal of protecting families from the impact of economic shocks, natural disasters, and other crises; ensuring that children grow up healthy, well-fed and stay in school; empowering women and girls, and creating jobs.

According to the World Bank report, more than 1.9 billion people in 136 low- and middle-income countries benefit from social safety net programs.

Across the world, CCT programs account for over 50 percent of social safety net programs, and are being implemented in 64 countries—a dramatic increase from two countries in 1997.

The report also noted that CCT had positive spillover effects on the local economy of target communities. Every dollar transferred to beneficiaries generates income ranging from $1.34 to $2.52 in local communities (“multiplier effects”).

Cash transfers boost school enrollment and attendance, increase live births in safer facilities, improve prenatal and postnatal care, promote regular growth monitoring of children during critically important early ages, and enhance food security, the report said.

In the Philippines, almost 4.5 million households are enrolled in the CCT, or Pantawid Pamilya program, from only 360,000 households in 2008.

“CCT grants account for an average of 11 percent of the income of the poorest recipient households,” noted World Bank Country Director Motoo Konishi.

Keep kids healthy and in school

Evaluation studies, according to Konishi, also show that CCT in the Philippines is delivering on its objectives: keeping poor children healthy and in school.

The program increased prenatal and postnatal care by 10 percentage points and increased the delivery of babies in health facilities by skilled health professionals by 20 percentage points. Children benefited by receiving higher intake of vitamin A and iron supplementation by around 12 percentage points and by increased weight monitoring visits to health facilities by 18 percentage points.

Aleksandra Posarac, program leader of the World Bank in Manila, said the Philippines has developed a system “way superior” to previous ones.

She lauded the government’s information management system, called Listahanan,” that identifies who and where the poor are in the country.

Social Welfare Secretary Dinky Soliman, whose agency is the lead implementor of the social safety net program, said the data base, “in a way, makes it corruption-proof.” - INQUIRER

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Controversial ₱700-million Iloilo Convention Center opens for APEC Summit

PNoy opens Iloilo Convention Center

MANILA, Philippines - President Benigno Aquino III led on Monday the inauguration of the controversial ₱700-million Iloilo Convention Center (ICC).

Aquino opened the state-of-the-art convention facility located on a 1.7-hectare lot in Iloilo Business Park, Mandurriao, Iloilo City.

The ICC became controversial last year after former provincial administrator Manuel Mejorada Jr. alleged that the structure was overpriced and implicated Senate President Franklin Drilon, an Ilonggo.

Mejorada accused Drilon of conspiring with a supposedly favored contractor to rig the bidding of the project.

Mejorada alleged that W.V. Coscoluella and Associates, which designed the building, was awarded a contract without a public bidding and that construction was overpriced by ₱488 million.

President Aquino at the inauguration of the Iloilo Convention Center in Iloilo City. Official Gazette PH

Drilon was charged with graft before the Office of the Ombudsman in October 2014, but the charge was dismissed for lack of merit.

Two stories high with a floor area of 11,832 square meters, the ICC can accommodate over 3,000 guests. It will be used as one of the venues for some high-level ministerial meetings of this year's Asia Pacific Economic Cooperation Summit.

The construction of the ICC began in 2013 and was based on a design inspired by Iloilo's Dinagyang and Paraw festivals.

Aquino also joined the ceremonial launch of the Iloilo Business Park and Richmonde Hotel Iloilo. - Louis Bacani @philSTAR

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Philippines Jobless rate Alarming! 10 reasons: Many jobs but pino's doesn't want to work?

Bonifacio Global City (BGC) Taguig, Manila, Philippines - image: pilipinohomes.com

Philippine Unemployment Rate ASEAN’s Highest, but Why?

Even though recent years have seen rapid economic growth in the Republic of the Philippines,  a high unemployment rate has persisted for quite a while in this sprawling Southeast Asian nation with a population of over 100 million people.

Under President Benigno Aquino who has been in office since 2010, the unemployment rate has fallen. The last reported figure was at the rate of 6.4% during the second quarter of this year, 0.6% less than the 7% reported a year earlier. However, the progress has been slow and unstable with the Philippines still having the highest unemployment rate in the ASEAN region.

There are many reasons for this. Invest Asian citing top reasons based on research.

" Main one being that the country’s population is growing faster than the rate at which jobs are being created"

In three of the past five years, official statistics show that the number of people entering the job market has been greater than the number of jobs created.

The conundrum highlights the difficulty and complexity of spreading the benefits of economic growth and points out that they have yet to trickle down to more deprived areas of the nation.

Filipinos Just Aren’t Working

Another reason is even more alarming. There is relatively lower working population compared to neighboring countries. This means that even if the unemployment rate falls, it does not ensure maximum productivity of the country.

As mentioned, the participation in the labor force remains relatively low. But what is it in quantifiable numbers?

"Only about 65% of the population aged 15 and above is looking for work "

The number being one of the lowest in the region. To put the number into perspective, the numbers in Vietnam, Thailand, and Indonesia are 78%, 72%, and 68% respectively.

One possible explanation for this low labor force participation percentage is that there is a higher value placed on further education in the Philippines. What this means is that young Filipinos typically spend some more time in college before entering the labor market, directly contributing to the low participation rate. The citizens of the other countries in the region enter the workforce much earlier.

Not Enough Good Jobs?

Yet another alarming reason could be the low quality of jobs available. In 2014, less than half of workers – in both formal and informal employment – were in what were described as paid jobs. Of the rest, about a fourth were self-employed with no guaranteed income and a tenth were in their family business working on farms or other businesses where they typically received food and lodging but no real cash, according to official statistics.

Former budget minister and current economist at the University of the Philippines, Benjamin Diokno, says that this relatively large number of unpaid workers – about 4 million people – “bloats” the ranks of the employed and makes the unemployment rate seem less serious that it really is.

However, such unpaid workers are not the only ones feeling held back.

In a government survey, 18% of workers said that they would like to work longer hours or get an extra job. Only 35% of these worked 40 hours or more a week.

The Philippine government, in an effort to mirror the success of its Asian neighbors, is looking to improve the quality of jobs available by ramping up employment in manufacturing. But it has had little success so far, hindered by issues such as higher wages, limited infrastructure and red tape, which make the country less competitive than its ASEAN peers.

Their lack of success is proven by the fact that only 16.5% of workers were in industrial jobs in the second quarter of 2015.

The country’s uneven employment market has traditionally led millions of Filipinos to seek better-paying jobs overseas.  One out of every 10 Filipinos works abroad, sending billions of dollars in remittances home and  helping to drive the country’s consumption-driven domestic economy – but doing little to promote employment.

There does not seem to be an end (at least in the near future) to the high unemployment rate problem that the Philippines faces.- Invest Asian

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Philippines inflation falls to two-decade low

Philippines, Investment in the Philippines, Asia, Economy, Inflation, Deflation

Image source: The Financial Times

 

If you need evidence that the world faces a "third deflationary wave," look no further than the Philippines.

 

Annual inflation in the Philippines was just 0.6 per cent in August, the lowest reading in more than two decades of records. Economists had forecast a 0.7 per cent reading, following a 0.8 per cent print in July.

 

The central bank targets headline inflation target at 3 per cent, plus or minus one per cent. Actual inflation has come in below that band for four months.

 

The downward trajectory in inflation across much of Asia reflects weak demand, lower commodity prices and a decline in costs for manufactured goods. Currency devaluation has done little to thwart the deflationary threat: the Philippines' peso has depreciated more than 15 per cent since March 2013 and now trades at ₱ 46.79 per dollar, about 8 per cent weaker than its five year average.

 

Core inflation, which strips out volatile items to get a better sense of underlying trends, looks a little better on the whole but its August reading was well below forecasts. In August the reading was 1.6 per cent year-on-year, versus forecasts at 1.9 per cent. The downward trajectory is clear: in March the reading was 2.7 per cent; one year ago it was 3.4 per cent.

 

A quarterly index of consumer price inflation across Asia (ex-Japan) confirms this trend is found across the continent. The second quarter reading of 2.06 per cent was about half the rate seen in 2012 and a two-thirds below the rate in 2011. As explained in the FT earlier this week, these trends are likely to intensify as the Federal Reserve lifts interest rates, causing the US dollar to rise and yield-seeking investors to take cash out of emerging markets.

 

"In sum," wrote Dominic Rossi, global chief investment officer at Fidelity Worldwide Investment, "this third deflationary wave will mean that world GDP will continue to operate at a level below potential output. Downward pressure on prices will persist and a supply-side contraction in developing nations will be required before prices stabilize. A further fall in potential global output is now unavoidable. The adjustments to GDP forecasts are still ahead of us." - The Financial Times

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Hanjin unveils first Philippine-made 180 Meters Kaprijke LPG carrier for Belguim's Savery

First Philippine Made 180 meters long LPG carrier ship. image: philSTAR

Hanjin unveils first Philippine-made LPG carrier

SUBIC BAY FREEPORT, Philippines – Korea’s shipbuilding giant Hanjin Heavy Industry and Construction Co., Ltd.–Philippines (HHIC-Phil) recently unveiled the first-ever Philippine-made Liquefied Petroleum Gas (LPG) carrier.

The LPG carrier measures 180 meters in length, 29.4m in breadth and 18m in depth.

It was ordered by Belgian shipping company Exmar Shipping BVBA and was christened as “Kaprijke” by company owner Saverys family.

Construction of the LPG carrier began in June of last year.

The project has once again affirmed the world-class craftsmanship of Filipino workers in the global shipbuilding industry.

In a statement, HHIC-Phil president Jeong Sup Shim recounted the challenges the company had to go through in putting up the state-of-the-art shipyard in the country’s premier freeport.

He attributed the company’s success to the support of the Philippine government and outstanding work ethic of Hanjin shipyard workers.

“It is our company’s earnest desire and long term commitment to catapult the Philippines as the number one shipbuilding country in the world,” Shim said.

Citing the June 2015 edition of the shipping journal published by highly authoritative Europe-based Clarksons Research, “Both the Philippines and HHIC-Phil Inc. have been making great strides in the international business scene, motivating us to push ourselves to the limit to bring more prosperity not only for our company but also for our generous host – the Filipino people,” Shim further said.

“The Philippines is currently ranked fourth in the world in terms of order book by builder country with 2.1 gross compensated tonnage (CGT) for new vessel,” Shim said.

Hanjin Subic shipyard is the 10th largest shipyard in the world in terms of order book by shipyard, accounting for 1.8 GCT or 74 percent of the Philippines’ CGT for new vessels.

The shipbuilding company still has seven LPG carriers in the company’s order book to be delivered in the immediate future.

In 2012, HHIC-Phil Inc. put the country in the worldwide spotlight with the simultaneous inauguration of two Suezmax Crude Oil Tankers first ever built on Philippine shores.

HHIC-Phil Inc. has been building huge commercial vessels ranging from container ships to bulk carriers, crude oil tankers and off-shore structures mainly for overseas clients since 2008. Its Subic shipyard boasts of one of the largest drydocks in the world today.

The company has invested around $1.7 billion so far. Its shipyard is currently home to almost 29,000 workers and still counting.

HHIC-Phil operates a Skill Development Center, a multi-million world class training facility located at the heart of the Subic Bay Freeport’s Industrial Park. - philSTAR

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The Philippines and KR big winners from China's slowdown but Fearing Investors for MARCOS Jr bid for 2016 Presidency

The Philippines and South Korea are the big winners from China's slowdown

How panicked were investors last week about China's stock market plunge? Enough to treat the Korean peninsula, a place that was teetering on the brink of war, as a safe haven.

Even as policy makers braced for renewed military confrontation between North and South Korea, the won staged a rally.

It may be time to start counting Korea as a developed nation, rather than an emerging market. 

That's made South Korean assets one of the few bright spots in a dark time for emerging markets. On August 24 alone, investors yanked $2.7 trillion out of developing nations, with Indonesia, Malaysia and Thailand especially hard hit. It matched the violent September 2008 selloff after Lehman Brothers collapsed.

Back then, Korea was battered so hard that pundits were calling it the "next Iceland" and the "Bear Stearns economy". Now, together with the Philippines, it's one of Asia's only refuges from chaos.

It's not hard to explain why many Asian economies are suffering from China's slowdown. Exporters of commodities, who depended on a humming Chinese market, have especially suffered. But why are there such big outliers among battered emerging markets?

Less like lemmings

The answer is that investors are finally basing their decisions less on herd mentality than nuanced, case-by-case analyses.

"Emerging market investors have become a lot savvier," says economist Frederic Neumann of HSBC in Hong Kong.

"Gone are the days where emerging markets were all lumped into one bucket. Today, countries with stronger fundamentals are able to resist the spread of contagion washing over global financial markets."

Along with South Korea and the Philippines, Neumann notes that even some frontier economies, like Vietnam, "have weathered global financial turmoil with apparent ease".

The common link among the success stories is they've got the basics right since Asia's 1997 financial meltdown. They have healthier financial systems, greater transparency, stronger banks, sober national balance sheets, and reasonable current-account deficits.

Malaysia's reckoning, by contrast, is long overdue.

The ringgit is trading near 17-year lows because scandal-plagued Prime Minister Najib Razak cares more about staying in power than modernising the country's unproductive economy.

Meanwhile, Thailand's military junta is undoing much of the progress Bangkok made since the late 1990s in strengthening the rule of law. And for all its gripes that Indonesia is being unfairly lumped in with Asia's laggards, President Joko Widodo's administration is rapidly losing the trust of investors.

While there's still time to win it back, Widodo's first 315 days in office have been a case study in timidity, drift and lost opportunities.

Korea credible

Korea, by contrast, is on the "more credible side of the spectrum," says economist Marc Chandler of Brown Brothers Harriman.

Even though China's downshift and US interest rate hikes will eventually make a dent, the won was Asia's top performer last week. Its 2.7 percent gain almost matched the drop in the Chinese yuan since August 11.

Meanwhile, Korean bond yields are falling. It turns out that the world's central banks had it right last year when they boosted their Korean debt holdings. In 2014, they made up 45.4 percent of the foreign-held portion of Korea Treasury bonds, up from 41.8 percent a year earlier.

It may be time to start counting Korea as a developed nation, rather than an emerging market. Korea still faces many challenges, not least of which are its rogue family-run conglomerates. But its macroeconomic performance deserves the recognition it's receiving from investors.

The same goes for the Philippines. Since 2010, President Benigno Aquino has steadily improved his nation's debt position (winning investment-grade ratings in the process), attacked graft and drawn in waves of foreign-direct investment.

Last month, reporters asked Philippine central bank governor Amando Tetangco if he's worried about the spectre of economic crisis haunting Asia at the moment.

"There's a herd mentality," he said, "but there'll be differentiation."

So far, he's been proven right. The country formerly derided as the "sick man of Asia" has been standing its ground amid market chaos.

Still risks

Risks abound, of course. While South Korea's economic fundamentals are stable – it's growing at a rate of 2.2 percent with a 3.7 percent jobless rate – its high household debt of $458 billion is a concern.

Manila, for its part, faces an uncertain 2016 election, in which Ferdinand Marcos Jr, son of the dictator who ravaged the nation in the 1970s and 1980s, may make a bid for the presidency. History has shown that emerging markets are often just one bad leader away from relapsing into chaos.

For now, the relative stability washing over Korea and the Philippines underscores that steady leadership and long-term thinking matter. It also shows that global investors are getting better at identifying those factors in Asia. - Bloomberg / The Sydney Morning Herald

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Texas Instruments invests $10 million to expand Philippines facility

Texas Instruments is a world leading manufacturer of Integrated Circuits (IC) used for mobiles phones and other electronic gadgets. Image: dallasnews.com

Texas Instruments Inc. has confirmed that it’s investing $10 million to expand its product distribution center in Clark Freeport, the Philippines.

A groundbreaking ceremony took place there last week, according to news reports from the Philippines.

It’s part of an overall $1 billion TI said in 2007 that it would invest in its Clark Freeport facilities through 2017, but it has been increased to $1.3 billion, according to a company spokeswoman.

“Our current product distribution center is overflowing; we do not have enough space do an efficient job on distributing,” Mohammad Yunus, president of TI Philippines, told the Pampanga Sun Times in the Philippines. Last quarter, TI shipped 1.5 billion semiconductor units from the Clark Freeport facility and plans to ship 1.9 billion units this quarter, he said.

“We are currently looking on the 2 billion units which could be a new record for any Texas Instrument site anywhere in the world,” Yunus said in the Sun Times.

TI built its first assembly and test site in the Philippines in Baguio City in 1979. In 2009, it opened a second facility in the Clark Freeport Zone,  doubling the company’s capacity in the Philippines. - The Dallas Morning News

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Philippine natural and organic products to be featured in Maryland, USA trade show September

Nine Philippine companies will be joining the Natural Products Expo East, the largest natural, organic, and healthy products event in the US East Coast, from September 17 to 19 at the Baltimore Convention Center in Maryland. STAR/File photo

MANILA, Philippines — Nine Philippine companies will be joining the Natural Products Expo East, the largest natural, organic, and healthy products event in the US East Coast, from September 17 to 19 at the Baltimore Convention Center in Maryland.

The Philippine Department of Agriculture (DA) through the DA-Agribusiness and Marketing Assistance Service (AMAS) organized the following natural product exporters to participate in this event—Brandexports Philippines, Inc., Elemie Naturals Inc., GreenLife Coconut Products Philippines Inc., Nutramedica, Inc., Orich International Traders, Inc., Prime Fruits International, Incorporated, Sweet Pacific Foodfarms Product, Team Asia Corporation, and Tropicana Food Products Inc.

A variety of coconut products will be available to the American public such as coconut water, milk, milk powder, flour, cider vinegar, coconut nutraceutical products, desiccated coconut, coconut sugar, organic extra virgin coconut oil and virgin coconut oil beauty pearls. The coconut is known as the tree of life in the Philippines because of the seemingly endless list of products and by-products derived from all its parts.

Other Philippine products to be featured in the trade show are body products made from pili, handcrafted bath soaps, topical scalp products, vinegar, dried mangoes, noodles, juices and fruit juice drinks, camote (sweet potato) and banana chips, condiments and sauces.

Philippine Ambassador to the United States Jose L. Cuisia, Jr. expressed optimism in the growing share of the Philippines in the natural products market and encouraged US buyers to take advantage of the growing demand for such products.

“The Philippines has long been producing natural, organic, and healthy agricultural products as well as nutritionally-dense foods considered ‘superfoods’ abroad. The Natural Products Expo East is the perfect venue for sellers to bring their products to the attention of the US buyers. I am glad Philippine companies, with the help of the Department of Agriculture and our Agricultural Attaché, have penetrated this market. I hope more Philippine businesses will follow soon,” said Ambassador Cuisia.

The 2014 Market Overview of Natural Foods Merchandiser, a leading media source and information provider for the healthy products industry, showed that US nationwide sales of all natural and organic products jumped 9 percent to nearly $99 billion last year.

According to Philippine Agriculture Attaché to the US Dr. Josyline C. Javelosa, this has also led to a growth in the Natural Products Expo.

“More retail buyers are walking the show floor at Expo East than ever before, looking for the newest quality products to bring back to their stores,” Dr. Javelosa said.

The trade show will reportedly bring over 22,000 attendees and more than 1,800 exhibitors, with approximately 30 percent of those exhibiting for the first time and new to the marketplace, according to Natural Product Expo East.

This year, the expo will include for the first time a Farm-to-Market Tour where attendees will have the opportunity to visit some of Baltimore’s nearby farms and retail stores that source from them. - philSTAR

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Silverpack investing ₱500 Million for Philippine plant

In an interview, a Silverpack official said the company plans to conquer Southeast Asia over the next decade through aggressive expansion of its manufacturing facilities and sales office across the region. image: philSTAR

MANILA, Philippines - Multinational packaging firm Silverpack Sdn Bhd is looking to invest ₱500 million to put up its first manufacturing plant in the country in the next two to three years.

In an interview, a Silverpack official said the company plans to conquer Southeast Asia over the next decade through aggressive expansion of its manufacturing facilities and sales office across the region.

"Our plan is to set up manufacturing plants in Asean in 10 years' time. We already have a factory in Malaysia and China. We have sales offices in Singapore, Sri Lanka and Thailand. We also need to set up sales offices in the entire Southeast Asia," Silverpack regional sales director Jeffrey Ng said.

In the Philippines, Ng said the company intends to gather a sizable market share initially before putting up a manufacturing plant in two to three years.

Ng said Silverpack is currently in talks with large food manufacturing companies in the Philippines for the export of its products.

"We are expanding because companies are also expanding. When they do well, we will do well as well," he said.

Silverpack's clients in Philippines are still mostly small and medium enterprises which import about ₱3 million to ₱4 million worth of products a month.

The company is looking to tap large Filipino conglomerates which invest in their own packaging plants for their businesses.

Ng said a candy manufacturer, for instance, spends 10 percent of its total cost for packaging alone while a high value goods manufacturer spends five to seven percent.

Silverpack's packaging materials are used by a wide range of food industries such as coffee, tea, confectionery, milk products, snacks, biscuits, instant food items, oil, seafood, pet food, sweets, jelly top seal, fruit drinks, personal care series, and moon cakes.

The Embassy of Malaysia Trade Office (Matrade) Manila said Silverpack is among the top five packaging companies in Malaysia at present.

Matrade commissioner Nyaee Ayup said Silverpack's expertise in packaging would help support a wide range of food industries in the Philippines.

"Instead of setting up their own packaging division, the food manufacturers in the Philippines can focus on their main line of business, if they will tap Silverpack for their packaging needs," Ayup said. - With Pia Lee Brago @philSTAR

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World-renowned economist Jeffrey Sachs: Philippines has much to teach world

LAUNCHING. Jeffrey Sachs, who serves as the director of both SDSN and the Earth Institute, launches SDSN's local chapter alongside NEDA Director General Arsenio Balisacan. Photos by Chris Schnabel / Rappler

Jeffrey Sachs: Philippines has much to teach world

The country should be a world leader in sustainable development, says the renowned US economist

MANILA, Philippines – World-renowned economist and bestselling author Dr Jeffrey Sachs wants the Philippines to be one of the world's leaders for sustainable development.

"The country has much to offer, so much to teach the world, and so much to benefit from,” said Sachs, who is in the country to formally launch the Sustainable Development Solutions Network Philippines (SDSN Philippines), alongside National and Economic Development Authority (NEDA) chief Secretary Arsenio M. Balisacan on Monday, August 3.

In his public lecture Monday titled "The Age of Sustainable Development,” which is also the title of his newest book, he gave a context of the SDSN Philippines and the challenge it faces.

The local chapter will have the responsibility of pulling the country’s leading thinkers to work side by side with NEDA, universities, political and business leaders, and communities to find paths to sustainable development in this country, he explained.

It also comes at a time of optimism in the country and that will be helpful, he added.

Sustainable Development Goals

SDSN Philippines is the local chapter of the United Nations SDSN Network established by UN Secretary Ban Ki-Moon in 2012.

Directed by Sachs, the SDSN’s aim is to help find concrete solutions to some of the world’s most pressing environmental, social, and economic problems to achieve sustainable development.

To achieve this, the SDSN network has set another series of goals called the Sustainable Development Goals (SDGs). These new goals will formally succeed the Millennium Development Goals (MDGs) in September of this year.

LECTURING. Jeffrey Sachs details the Social Development Goals and the challenges that the global community faces in achieving them to an audience of Philippine stakeholders.

Like MDGs, SDGs are a set of goals covering social, economic, and environmental issues spread by the UN for states and international bodies to use in planning and implementing development policy.

Their exact wording was finalized by the UN general assembly Monday.

This time the goal is to end all poverty, not just cut it in half, by 2030, Sachs said.

Unlike MDGs, Sachs explained, SDGs are universal and will need to be adopted by rich and poor countries alike.

They call on all countries to stop the dominant pattern of focusing only on the economic bottom line but to take development in a holistic manner.

Change direction

“It can’t be business as usual. It’s no longer enough to just achieve economic development. We need a change of direction,” Sachs said.

The focus is on pursuing economic development that is also socially inclusive and environmental friendly, he added.

The SDGs also put forward a shared vision of how international leaders want to see the world to be in 2030.

Education is also a huge agenda, one that will be spread over 15 years with a global knowledge base as its core, Sachs said.

Universities, research laboratories, and think tanks are the core of the SDSN, although it partners with business, government, and civil society, he said.

The idea is to think of how the world is going to do this because the scale of the challenge requires new ways of thinking, technology, and training, Sachs explained.

Universities' role

This, he shared, is why universities should play a leadership role in the project.

Educational institutions are incubators of innovation and have the ability to create solutions of a global scale – which is what's needed to solve big problems such as poverty and climate change, according to Sachs.

Sachs cited as examples the economic emergence of South Korea, which focused on a knowledge-based economy, and the creation of the Silicon Valley ecosystem in the US – both of which scaled using innovation.

Transforming the local economy into a knowledge-based one is a key step for the Philippines and other developing nations toward sustainable development, Sachs said.

FEEDBACK. Sachs, alongside Balisacan and former NEDA Director General professor Solita Monsod listen to reactions from stakeholder groups on Sustainable Development Goals.

Lessons from MDGs

With the SDGs, the Philippines needs to learn lessons from implementation of the previous MDGs, Balisacan said.

The Philippines has seen mixed results with the MDGs, with the country fulfilling targets related to universal primary education; lowering infant mortality; reducing malaria incidence; and enhancing clean water access for households, among others.

The country is not on track to meet goals for maternal mortality, AIDS/HIV prevention, reproductive health access, and completion rates for elementary schools.

"Putting timelines in place as we move to 2030, and being more conscious about assigning responsibility especially in government and the academe are some of the things we need to improve on," he explained.

Political will must also be mustered to push through institutional changes needed.

Above all, more financing for sustainable development should be planned and organized, especially in innovation through more funding for universities and research & development centers, Balisacan added.

The tasks are enormous and so are the challenges, he explained.

“The good thing is now that the economy is in good shape, we no longer have an excuse to not invest in sustainable development," Balisacan said. – Rappler.com

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