Australia's SomnoMed finds Philippines ideal Manufacturing hub

SomnoMed is seen as an "employer of choice" by the Philippine government. Jessica Hromas

SomnoMed finds Philippines ideal hub for its sleep devices

-by Mark Eggleton

For sleep device manufacturers SomnoMed, the decision to manufacture in the Philippines was based on having a historic connection to the country. The company's Australian-designed non-invasive oral appliances were being manufactured by a third party in the Philippines when in 2009 it took the decision to set up its own operation.

Neil Verdal-Austin, executive vice president for Asia-Pacific, said once the decision was made it took until February 2010 before SomnoMed flicked the switch on its own facility.

"We stayed in the Philippines because we knew the country and its infrastructure from our existing relationship so we set-up a separate business, acquired premises, imported equipment and employed a number of locals," he said.

As to why the company chose the country as its manufacturing hub, Verdal-Austin cites the Philippines location in Asia and reach and access into other markets.

"You're looking at distribution into Asia very quickly as well as good access into the United States and one stop into all the major hubs of Europe," he said.

The Philippines' strong reputation as a business processing hub works well for an advanced manufacturer such as SomnoMed. Mr Verdal-Austin said as the company's SomnoDent product has evolved into an intelligent device that monitors sleep patterns, the Philippines' already strong IT infrastructure has proved a boon.

Suitable workforce

"We also have access to a workforce that's well-educated with proficient English skills and an easy to manage cost base," he said. Moreover, as more companies move some operations into the country, business clusters are developing with SomnoMed's facility now in close proximity to a number of global pharmaceutical companies.

Mr Verdal-Austin said before establishing the manufacturing operation the company was aware of the potential pitfalls through their previous relationship with a third party manufacturer.

"There were a lot of hoops and hurdles to get going and little bit of time-wasting but we're aware of our responsibilities and ensure we're on top of all our regulatory requirements and the renewal periods for permits and licenses. We're seen as an employer of choice by the Philippine government and our employees are well-paid and offered a health plan."

SomnoMed's biggest markets remain Japan and South Korea but the company has a distributor in Singapore looking after the ASEAN nations.

"All of these countries are at different stages on the curve of medical treatment but it's a very exciting region and [as each country becomes more affluent] we know we'll penetrate even further into these markets," Mr Verdal-Austin said.

"For a company like ours it's about educating the medical fraternity to change their prescribing behaviour and getting medical associations to accept and adopt the treatment." - The Australian Financial Review

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Immigration Lookout for De Lima, Baraan, Bucayu, Villasanta, Dayan, Sanchez, Adricula and Cristobal issued

Sec. Aguirre says Sen. De Lima pocketed billions. Photo: CNN Philippines

DOJ issues immigration lookout bulletin for De Lima, 8 others

The Department of Justice (DOJ) issued an Immigration Lookout Bulletin Order (ILBO) against Sen. Leila De Lima and five other persons for their alleged involvement in the New Bilibid Prison's (NBP) illegal drug trade. The lookout order prevents them from leaving the country without corresponding travel authority from their heads of offices.

Those covered in the ILBO include De Lima, former DOJ Undersecretary Francisco Baraan III, former Bureau of Corrections Chief Franklin Jesus Bucayu, former Presidential Anti-Organized Crime Commission Director Reginald Villasanta, and De Lima's former aides, Ronnie Dayan and Joenel Sanchez. On Monday, the NBI added Mark Noemin Adricula, Warren Cristobal, and Jose Adrian Dera to the list.

In a memorandum addressed to the Bureau of Immigration dated October 7, Friday, DOJ Secretary Vitaliano Aguirre II instructed immigration officers to "be on the lookout for" and to quickly relay to the DOJ, NBI, and Office of the Security information about the named individuals. Those subject to an ILBO can still leave the country, but require travel authorization from their heads of offices.

"Considering the gravity of the possible commission of any offense, there is a strong possibility that they may attempt to place themselves beyond the reach of the legal processes of this Department by leaving the country," the memorandum said. "We thus deem the issuance of an ILBO against the subject persons prudent in order to at least monitor the itineraries of their flight, travel, and/or whereabouts."

De Lima questioned the basis of the ILBO since no charges were filed against her. However, she added that she has no international engagements and no intentions of leaving the country soon.

"Huwag ho kayong mag-alala dahil wala po akong kabalak-balak na umalis ng Pilipinas para iwasan yung ihahain niyo sa akin na mga kaso," she said on Monday. "Inosente po ako. Ang guilty lang po ang tumatakas."

[Translation: You don't have to worry since I have no plans of leaving the Philippines to avoid the cases. I am innocent. Only the guilty try to escape.] – CNN Philippines

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HSBC upgraded Philippine Economic Growth Forecast 6.3 - 6.5 Percent

HSBC hikes anew Philippine growth forecast to 6.5%

The Hongkong and Shanghai Banking Corp. Ltd. raised anew the country’s economic growth forecast as the Philippines continued to stand out as one of the strongest performers in Asia.

In its latest Asian Economics report for the fourth quarter, HSBC economist Joseph Incalcaterra said the country’s gross domestic product (GDP) growth projection has been revised upwards to 6.5 percent instead of 6.3 percent this year due to the stronger-than-expected expansion in the first half.

The country’s GDP growth accelerated to seven percent in the second quarter of the year from 6.8 percent in the first quarter amid the strong boost from election related spending.

This brought the GDP expansion in the Philippines to 6.9 percent in the first half from 5.5 percent in the same period last year.

“The Philippines continues to stand out as one of Asia’s strongest performers. Following the strong outturn of growth in the first half of 2016, we recently raised our full-year forecast from 6.3 percent to 6.5 percent,” he said.

The bank sees the country’s GDP growth easing to 6.4 percent in the third quarter and to six percent in the fourth quarter.

“Although growth will moderate in year-on-year terms through the second half as the impact from the elections and budget front-loading wears off, overall domestic demand will nonetheless remain resilient as government spending continues to fuel growth,” Incalcaterra said.

Likewise, HSBC retained the GDP growth forecasts for 2017 and 2018 at 6.3 percent and 6.4 percent, respectively.

“This isn’t to say there aren’t challenges to growth. After all, exports have been contracting rather sharply as of late – while imports of capital equipment surged – and the trend growth of remittances has also moderated to approximately 3.5 percent,” he said.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances contracted 5.4 percent in July, bringing down the growth in the amount of money sent home by Filipinos abroad to three percent in the first seven months of the year.

Authorities believe the growth in receipts from the business process outsourcing (BPO) as well as tourism sectors would cushion the slowdown in the cash remittances.

“While remittances may not provide the same boost to consumption as before, we think that the improvement in domestic employment opportunities, mostly from construction, BPO and tourism, are more than able to offset the effect for now,” he said.

The economist noted long-term issued such as the structural trade deficit as well as the not too bright outlook for manufacturing exports outside of electronics.

He pointed out the Philippines would remain highly vulnerable to weather trends with the onset of La Niña after the bout with El Niño. - philSTAR

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Malaysian Terrorist Mohamas Amin Captured - Bombing Plans in Manila Condo Mall Revealed

Filipino soldiers stand guard next to a poster of Philippine President Rodrigo Duterte.PHOTO: EPA

Philippines thwarts terror attack with arrest of Malaysian bomb expert planning strike in Manila

The Philippine National Police (PNP) has thwarted an attempt by a terrorist bomb expert to stage bombing attacks right in the heart of Manila.

Malaysian terrorist Mohamas Amin, who had a 600,000 Philippine peso (S$17,020) bounty on his head, was presented in a press briefing by Chief Supt Roel Obusan, acting director of the PNP-Criminal Investigation and Detection Group (CIDG) on Monday (Oct 10).

Amin was arrested at 4am on Saturday (Oct 8) by joint operatives from the Anti-Transnational Crimes Unit (ATCU) of the CIDG and the PNP Intelligence Group during a raid in Quezon City.

Also arrested were Bilal Taalam, the owner of the house where Amin was staying, and Adnan Malangkis. Eight other tenants in the house were also being investigated.

The CIDG believed all three had links with the Abu Sayyaf Group in Sulu. A fragmentation grenade, several rounds of ammunition, various identification cards, a blue print of a condo mall in Quezon City and a cellular phone were recovered during the raid.

Chief Supt Obusan said that aside from the documents, the results of the police interrogation on the suspects further strengthened their belief about Amin's plot to stage bombing attacks in Manila.

"Our operatives confiscated a blue print of a building, a condo mall (in Quezon City), so it's surprising that they are doing some casing on the area," Chief Supt Obusan said, refusing to name the condo mall to avoid panic.

Amin, who also goes by the names Asman, Akman Amin and Amin Aklam, is a bomb expert and is a subject of an arrest warrant for a murder case filed at the Regional Trial Court (RTC) in Jolo, Sulu.

Other Abu Sayyaf members are also facing the same charges in the same court. Amin and Malangkis were subjected to inquest proceedings for violations of the Comprehensive Firearms and Ammunition Regulation Act and Illegal Possession of Explosives Act before the Quezon City Regional Trial Court.

Amin will also be charged with violations of Article 78 of the Revised Penal Code for concealing his true identity. On the other hand, Taalam was charged with obstruction of justice and harbouring a fugitive or wanted person.

Chief Supt Obusan said Amin had an alliance with the three suspected suppliers of arms to Abu Sayyaf and other political warlords in Zambasulta (Zamboanga, Basilan, Sulu, Tawi-Tawi ) areas. They were Hja Risdimona Isa, Aljamer Akarab Mandin and Hurbin Sahibul, who were arrested in West Crame, San Juan City, last month. – Strait Times

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Philippines' AboitizPower to buy power plant stakes for $1.2 Billion US Dollar

ABOITIZ Power Group. Photo: Rappler.com

Philippines' AboitizPower to buy power plant stakes for $1.2 bln

The Philippines' Aboitiz Power Corp said on Tuesday it will acquire stakes held by funds managed by Blackstone Group LP in a local coal-fired power plant and another power project under construction for about $1.2 billion.

The deal, the biggest acquisition in the local power sector since the industry was deregulated and a government monopoly dismantled in 2001, would be financed through internally generated cash and a $650 million loan, AboitizPower said.

The acquisition involves a 66.1 percent indirect interest in the 604-megawatt GNPower Mariveles Coal Plant and a 40 percent stake in the 1,336-MW GNPower Dinginin Project, both in Bataan, north of Manila.

AboitizPower has signed a loan agreement with The Bank of Tokyo-Mitsubishi UFJ Ltd, DBS Bank Ltd, The Hongkong and Shanghai Banking Corporation Ltd, Maybank Kim Eng Securities Pte Ltd, Mizuho Bank Ltd, and Standard Chartered Bank.

Standard Chartered was the financial advisor to AboitizPower on the deal, a source said.

The company said the acquisition, which is subject to Philippine regulatory approvals, was in line with its target to increase its attributable net sellable capacity to 4,000 MW by 2020.

"We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion," CEO Erramon Aboitiz said in a statement.

The first of two units at the GNPower Dinginin Project is due to be switched on in 2019.

(Reporting by Enrico dela Cruz; Additional reporting by Anshuman Daga in Singapore; Editing by Richard Pullin) - Reuters

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World Bank keeps Philippine growth forecasts

WORLD BANK ECON UPDATE: World Bank lead economist Birgit Hansl answers queries from the press after giving an economic update on the Philippines. Also in photo is economist Kevin Chua. MIKE AMOROSO. Photo: PhilStar

MANILA, Philippines - The World Bank has retained its three-year economic growth forecasts for the Philippines, but stressed these projections can be exceeded if the government can ramp up its infrastructure spending as planned and provide clarity on its economic policies.

Drawing from its earlier forecast in April, the multilateral lending institution said it still expects the Philippine economy to grow 6.4 percent this year and 6.2 percent in the next two years.

In its October update on the domestic economy titled “Outperforming the Region and Managing the Transition,” the World Bank said the country has weathered the challenging global economy and grown at a rapid pace over the past five years, “supported by strong macroeconomic fundamentals and a highly competitive workforce.”

Domestic consumption is seen to prop up the economy driven by increased purchases from an expanding middle class, remittances from overseas Filipino workers, and increased employment.

“The economic outlook is optimistic with risks tilted to the upside,” said the report, noting “substantial” improvements in macroeconomic stability by way of low and stable inflation rates, prudent fiscal management, and comfortable level of foreign reserves.

The proposed budget for 2017 would increase infrastructure spending to 5.4 percent of gross domestic product (GDP) in order to address infrastructure bottlenecks and “enhance connectivity between the country’s wealthier and poorer areas.”

“This can boost a large segment of the economy including industrial activities, real estate, construction and tourism,” said the report.

The world bank said while the new administration’s 10-point socioeconomic agenda has been generally well-received as it signals continuity of the existing macroeconomic framework, the government still needs to dispel lingering uncertainty on the part of investors by providing clarity on it development priorities.

“The preliminary agenda is intended to bolster the government’s current, fiscal, monetary and trade policy stances, while prioritizing tax administration reforms. Despite these reassurances, however, a degree of uncertainty remains regarding the ultimate direction of macroeconomic policy. The short-term challenges is how to successfully manage the economic transition and providing the right signals to investors and businesses,” said the report.

In a briefing yesterday, World Bank lead economist Birgit Hansl said the completion of the 2017-2022 medium term development plan for the country is expected to provide investors with direction.

“Many reforms are being unveiled, specifically on tax policy and administration, the tracking of government spending, security of land tenure, ease of doing business, and restrictions on foreign participation,” she said.  “But as policy details are still being discussed, some businesses might remain cautious. The completion of the new Philippine Development Plan this year will provide more clarity on the government’s development priorities and further improve the country’s growth prospects.”

The government is also pursuing a comprehensive tax reform effort that promises to make the tax system more equitable and efficient.

Hansl said that while the country’s macroeconomic fundamentals remain strong, the government should also pay attention to microeconomic reforms such as improving the ease of doing business in the Philippines to sustain growth.

“So here it will be really important to see what will be the priority of the new administration. Will it be trade facilitation, will it be changing how businesses operate. These involves also labor market issues,” she said.

She declined to comment on prevailing labor issues but said the bank is encouraged by the ongoing dialogue on issues such as contractualization and minimum wage setting.

In a statement, World Bank country director Mara Warwick said macroeconomic stability puts the Philippines in a position to accelerate inclusive growth that benefits all Filipinos.

“Poverty will decline faster if the returns from economic expansion are invested in building human capital by strengthening health, education, and social protection,” she said. - PhilSTAR

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