Contents
Business Review
www.eccp.com
August 2011
Volume XXVII No. 6
Synergizing Partnerships for an Energy Efficient and Competitive Philippines
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editorial
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EU - Philippines News
24 MEMBERS’ CORNER
From Energy Efficiency to Renewable Energy
The highest in 10 years - EU-Philippines Trade in 2010 increased by +34%
50 years and beyond: FPH adopts new logo
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CHAMBER@WORK
10 Europe News
Meeting with Immigration Commissioner David
Linking ties, strengthening communities at the Vue Bar - By: Johnny Litton, The Philippine Star
Meeting with Finance Sec. Purisima, BIR Comm. Henares and Customs Comm. Alvarez
15 FEATURE
GET International Joins 2nd PEEF in Soft Launch
BPI - Let’s Make It Easy
Synergizing Partnerships for an Energy Efficient and Competitive Philippines
Senate President Enrile on Competition Legislation
Anti-business Labor Bills in Congress Countermeasures Needed
EU Switch Asia {rojects Offer Free EcoAssessment
Launch of Arangkada Interactive Website
SMART CEBU presented in Philippine Forums
22 Green Business
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Helping EU industries to speed up carbon efficiency
August 2011
15 BUSINESS REVIEW
29 FAIRS EXHIBITION 30 ERRATUM 32 IMPRESSUM
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Editorial
FROM ENERGY EFFICIENCY TO RENEWABLE ENERGY By: Hubert d’Aboville
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t the risk of sounding obvious, business is impossible without electric power. The reason I’m bringing this up is because I continue to be amazed and alarmed by the quite expensive cost of power in the Philippines—which became the highest in all of Asia earlier this year. This is a “reputation” no country desires for the simple reason it scares off potential foreign investors (a prime source of economic growth) and can raise the cost of doing business to unprofitable levels. One easily sees a correlation between power rates and foreign investment. Vietnam which has power rates about one-sixth of the Philippines’ has consistently attracted more foreign investments that the Philippines. And I probably won’t be faulted if I restate the widespread view that local power rates have a good chance of again increasing in the near-term. That will mean much more pain for business firms, which consume three-fourths of all the electricity produced in the Philippines. Biting the bullet in the face of Asia’s most expensive power rates is no longer a must-do option for a growing number of businesses. You can only cut so much here and there. A more active or proactive approach beyond the knee jerk reaction of turning off lights not in use is now mandatory. The European Chamber of Commerce of the Philippines (ECCP) in 2010 launched the 1st Philippine Energy Efficiency Forum (PEEF) in Manila to raise
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August 2011
awareness that energy efficiency is indeed a potent but underutilized tool with the power to cut electricity costs from 10 to 70 percent. 1st PEEF was a forum for shared ideas: firms with successful energy efficiency programs talked about why they succeeded; international energy efficiency experts explained what was possible with technologies available while bankers, surprisingly, said they had new loan facilities specifically for energy efficiency and renewable energy projects. 2nd PEEF held this July in Manila was more of the same but on a grander scale. The focus this year was on bringing together stakeholders implementing energy efficiency programs, thus the theme, “Synergizing Partnerships for an Energy Efficient and Competitive Philippines.” This year also, ECCP organized the 1st PEEF-Cebu City on July 26, thereby initiating the move to make the PEEF anationwide program. ECCP has developed very close links with Cebu businessmen extending back decades, and we are happy to note the enthusiasm with which Cebuanos received the message that energy efficiency is the most important fuel of the future. The success of 1st PEEF brought more companies to the 2nd PEEF and validated our position that energy efficiency is key to enhancing business competitiveness and profitability while allowing companies to be more protective of the environment for the benefit of future generations. Promoting energy efficiency, renewable energy
BUSINESS REVIEW
and sustainable lifestyles and business practices have long been ECCP advocacies in the Philippines. These reflect the prevailing view in the European Union (EU) that protecting the environment makes sense, both socially and in terms of business sustainability. A new ECCP initiative seeks to advance the Philippines further along the path of renewable energy. That path is already a familiar one since the Philippines is the world’s second largest producer of geothermal energy after the USA, and offers many opportunities for renewable energy. “Renewables-Made in Germany” is an export initiative from DIHK (the Association of German Chambers of Industry and Commerce) that focuses on developing other countries’ potentials in these areas: solar/photovoltaic; biogas/biomass; wind and water. ECCP has chosen to champion the solar/photovoltaic and biogas/biomass areas in the Philippines. ECCP has submitted project proposals to DIHK for these two areas for this year and next year. Should renewable energy fulfill its promise of lower power rates, this plus a stronger energy efficiency effort by the private sector could be the lifesaving electric jolt the Philippines needs to sustain her projected high-end economic growth—much like a defibrillator causes a weakening heart to find its beat. ECCP believes it is time to begin administering this life-saving electric jolt.
Chamber@Work ECCP working closely with the Aquino Administration
Meeting with Immigration Commissioner David
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uly 12 - ECCP met with Immigration Commissioner David and raised the issue of immigration overtime charges at international air- and seaports. He said the Bureau of Immigration (BI) has deployed additional staff, but still not enough for 24/7 operations; he added that for the time being he will not charge overtime, as the BI is using the income from the ‘express’ lanes. He agreed that raising his budget would be the safest way to solve the issued; we promised to see DOJ Sec. de Lima to raise the budget for Immigration.
Meeting with Finance Sec. Purisima, BIR Comm. Henares and Customs Comm. Alvarez Senate President Enrile on Competition Legislation
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uly 21 - ECCP attended the dialogue on Competition Legislation organized by the Ramos Foundation. All speakers were in favor of opening the economy and amend the economic provisions of the Constitution: Notes on the remarks of Senate President Enrile: • Open economy to FDI; • Take the economic provisions limiting foreign investments out of the Constitution; Congress will control as needed to be flexible; he said: why can’t foreigner own reclaimed land and build high rises; • Economic provisions are a roadblock to progress; • He received revised SB1 from DOJ Asec Sy and will move it in Senate but will reduce the penalties.
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uly 12 - Finance Sec. Purisima invited the leading business organization to a briefing on changes in tax administration. He emphasized that tax collection needed to be improved by at least 2% of GDP; focus will be on the individual taxpayers (professionals – lawyers, doctors, accountants, etc; sole proprietor establishments). Purisima also stated that the SEC, BIR and Customs are working closely together by exchanging data. The business organizations were requested to assist in this compliance drive by encouraging their members to pay proper taxes – as laid down in the Integrity Initiative Pledge. We requested for a statistical presentation on tax payments by industries, sectors, professions in order to be better equipped to deal with our members. Purisima invited feedback where companies or individuals are treated unfairly by the agencies / by the assessors. We reiterated our request for super green (Customs) and super blue (BIR) lanes, requesting for clear rules how to get onto those ‘lanes’.
BUSINESS REVIEW
Feature
Synergizing Partnerships
for an Energy Efficient and Competitive Philippines By Art Villasanta
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he truism that energy efficiency is the cheapest form of power undoubtedly resonated louder among more business firms last February when the Philippines gained the unpleasant reputation as the country with Asia’s most expensive power rates. That citizens of a nation with a per capital GDP of just $3,700 in 2010 should pay more for electricity than Singapore, Asia’s wealthiest with a per capital GDP of $57,000, is a stern indictment of Philippine power producers. It again sheds a disquieting light on the government’s perplexing inability to ease the plight of power consumers, both residential and commercial. Unfortunately, Philippine businesses are even worse off than residential power consumers having to pay more for power than ever before. This infuriating fact now makes it a matter of sheer survival for businesses to trim power rates more energetically than before.
Hence, a growing interest in energy efficiency not only as a short-term solution but as a strategic competitive advantage over the long-term. No one seriously expects power rates to fall dramatically to the level of Vietnam’s ($0.03 per kWh against the Philippines’ $0.18 per kWh for residentials) any time soon—if at all.
The 2nd Philippine Energy Efficiency Forum (PEEF) held on July 26 at the SMX Convention Center was well attended and covered more ground than its predecessor. Energy efficiency is increasingly being seen by businesses as an effective tool in breaking the deadly stranglehold of punishing power rates. It was also the case at the 1st Philippine Energy Efficiency Forum 2011 in Cebu City held a week later. Cebuano businessmen were also as enthusiastic and as receptive to PEEF, whose main goal is to contribute to the national effort towards energy security and a low carbon future through energy efficiency. Sabino Dapat, Chairman of the ECCP Cebu Council welcomed the participants while the keynote about “Energy Efficiency-Philippine Perspective” at 1st PEEF Cebu was delivered by Loreta Ayson, Undersecretary of the Department of Energy (DOE). With PEEF now nationwide in reach, the message that energy efficiency is a proven and potent tool that can grow businesses in a tougher marketplace has opened more minds to this largely ignored strategy for corporate growth.
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August 2011
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Green Business
EU Switch Asia Projects Offer Free Eco-Assessment
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CCP is inviting its members to avail of the FREE Eco-Assessments of your company (i.e. office building, production processes and facilities, etc.) to determine opportunities to save on energy, water and other resources as well as to reduce waste and pollution in your company. Improving your resource efficiency and reducing wastes will help your company increase your competitiveness and contribute to a lower carbon footprint. This special opportunity is made possible through the EU funded Switch Asia Projects: 1.
For the Metro Manila and Calabarzon based members, the free eco-assessments will be delivered by the team of the Green Philippines Islands of Sustainability (GPIOS) project. The GPIOS is co-implemented by Ostrava University in the Czech Republic, in cooperation with ECCP ASSIST, PBE, PCCI in the Philippines and GRaT, STENUM and Austria Recycling in Graz, Austria. (http:// greenphilippines.com.ph)
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For Cebu-based companies, mainly in the furniture, fashion accessories, and gifts/toys/housewares industries, the ecoassessment will be delivered by the SMART Cebu Project which is a project implemented by SEQUA Germany in cooperation with ECCP, ADFIAP, Cebu FAME, CFIF, Cebu GTH, and EFA and in partnership with DOST 7, DTI 7, DBP and LBP. (www.smartcebuproject.com)
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For Palawan based companies, mainly in the tourism sector, the eco-assessment will be delivered by the ZeroCarbonResorts Project which is implemented by GRAT in cooperation with ASSIST, PCSD, PhilGBC, CIE (MAT and in partnership with DOT, DENR, DOE and NIT. (http://www.zerocarbonresorts.eu)
For more information or if interested to join, kindly contact Gerry Constantino at constantino@eccp.com.
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SMART Cebu presented in Philippine Forums
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he SMART Cebu Project was recently presented in three important events in Metro Manila and in Cebu.
Mr. Matthieu Penot, Attache of the EU Delegation to the Philippines presented the SMART Cebu project together with the other 2 on-going EU funded Switch Asia Projects during the 2nd Philippine Energy Efficiency Forum (PEEF) on 19 July 2011 at the SMX Convention Centre. Mr. Penot noted that the EU has made available (SCP) Euro 90 million until 2011 to fund projects promoting sustainable consumption and production in the Asian region. More than 30 Switch Asia projects are now on-going in various Asian countries and 3 of these are being implemented in the Philippines, namely, SMART Cebu, Green Philippines Island of Sustainability and Zero Carbon Resorts. Mr. Penot made a presentation to close to 500 participants during the PEEF 2011 in Manila. Mr. Gerry Constantino of ECCP also gave a SMART Cebu briefing to the 200 participants of the 1st PEEF in Cebu on 26 July 2011 at the Waterfront Hotel. Mr. Constantino highlighted the resource efficiency and cleaner production (RECP) opportunities that the SMART Cebu project is promoting among the SMEs in order to improve their competitiveness. Mr. Constantino also explained that SMART Cebu SMEs have been provided with eco-design training and technical assistance so they can launch new lines of eco-friendly products which will be launched in trade shows in Europe. Mr. Thomas Ritter of sequa gGmbH, the Project Director of SMART Cebu, presented the SMART Cebu project also in the GP3 Conference held on 18 August 2011 at the SMX Convention Center. Mr. Ritter highlighted in its presentation the important partnerships that the SMART Cebu has cultivated in the course of implementing the SMART Cebu project particularly in dealing with the 3 industry associations, namely, Cebu FAME, CFIF and Cebu GTH as well as with government namely, DOST Region 7, DTI Region 7, DBP and Landbank.
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Member’s Corner New mEMBERS JOBSDB PHILIPPINES INC. Suite 905-907 Taipan Place, Emerald Avenue, Ortigas Center Pasig City Tel. No. : 914-8000/ 637-3333 Fax. No. : 914-8001 Primary Contact : Ms. Jayjay Viray Managing Director Services : Online Job Portal
ACACIA HOTELS MANILA 5400 East Asia Drive cor. Commerce Avenue Filinvest Corporate City, Alabang Muntinlupa City Tel. No. : 842-3711 Fax. No. : 403-8847 Email : anne.devera@acaciahotelmanila.com Primary Contact : Ramon E. Martinez General Manager Services : Hotel Service, Food and Beverage ACE HARDWARE PHILIPPINES SM Corp. Office Building B JW Diokno Blvd. MOA Complex Pasay City Tel. No. : 552-7217 Fax. No. : 552-7212 Email : www.acehardware.com Primary Contact : Johnny O. Cobankiat Services : Retail Sale APHROCHEM INTERNATIONAL TRADING No. 44 Tupoz St. Pasig City Tel. No. : 861-5736 Fax. No. : 642-2001 Primary Contact : Nathalie Choy Business Development Director Services : MD Sterilizing and Disinfecting Solutions, ZAPP, Alcogel ; Retail and General Merchandise DE VERE & PARTNERS PHILIPPINES LTD. Suite 1006, 88 Corporate Center Sedenu Street, CBD Salcedo Village Makati City Tel. No. : 846-2545 Fax. No. : 552-2837 Email : paul.thompson@devere-group.com Website : www.devere-group.com Primary Contact : Paul Thompson Manager Services : Independent Financial and tax saving advice FILINVEST PREMIERE SALES GROUP Rizal Drive cor 29th St. Bonifcio Global City Taguig , Metro Manila Tel. No. : 856-7321 Primary Contact : Alvin A. Bobadilla VP - Sales and Marketing Services : Real Estate JAMILA AND COMPANY SECURITY SERVICES 81 JCI Corp. Center, Lantana St. Cubao Quezon City Tel. No. : 411-9000; 722-9516 Fax. No. : 414-9798 Email : info@jci.com.ph Website : www.jci.com.ph Primary Contact : Sergio S. Jamila President Services : Security Services Provider
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JS PHILIPPINES GLOBAL CORPORATION Unit 3 #88, Amang Rodriguez Jr. Avenue, Santolan Pasig City Tel. No. : 681-8228; 682-2881 Email : jscpg@plftdsl.net Website : www.jspgc.com Primary Contact : Jordan S. Pascual President/ CEO Services : Import/Export/Distribution KSEARCH ASIA CONSULTING INC. 22/F Corporate Center Building 139 Valero St., Salcedo Village Makati City Tel. No. : 817-0322; 894-1350; 810-0821 Fax. No. : 893-6259 Email : jobs@ksearchasia.com Website : www.ksearchasia.com Primary Contact : Manuel R. Guillermo President and Managing Director Services : Executive Search Services M2.0 COMMUNICATIONS 94 Scout Castor Brgy. Laging Handa Quezon City Tel. No. : 332-1031; 376-6643 Fax. No. : 332-1031 loc 108 Email : stella.capinpuyan@m2comms.com Website : www.m2comms.com Primary Contact : Magtangol A. Roque Managing Director Services : Advertising NOKIA (PHILIPPINES), INC. 20/F & 40/F Philamlife Tower 8767 Paseo de Roxas 1227 Makati City, Metro Manila Tel. No. : 754-1500: 754-1600: 754-1777 Fax. No. : 754-1576 Website : www.nokia.com Primary Contact : Benoit Michael Marie Nalin General Manager Services : Importer, Sales & Marketing, System & Service Integration & Training Services UNISON COMPUTER SYSTEMS 120 E. Rodriguez Jr. Ave. cor Ortigas Ave. Brgy. Bagong Ugong Pasig City Tel. No. : 620-2988 Fax. No. : 638-2885 Email : info@unison.com.ph Website : www.unison.com.ph Primary Contact : Willy O. Sy President Services : authorized and certified HP and Dell PC service center
BUSINESS REVIEW
Impressum
Business Review Published by European Chamber of Commerce of the Philippines (ECCP) Main office: 19/F Philippine AXA Life Centre Corner Sen. Gil Puyat Ave. and Tindalo St., Makati City, Philippines Tel: (02) 845 1324, 759 6680 Fax: (02) 845 1395, 759 6690 Cebu branch: 3/F C. L. Center 14 Juana Osmeña St., Cebu City, Philippines Tel: (032) 253 3389 254 3765 254 3767 Fax: (032) 253 3387 E-mail: info@eccp.com ECCP is on the World Wide Web at: http://www.eccp.com
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ECCP Board of Directors Hubert d’Aboville - President Erik Moeller Nielsen - Vice President Michael Raeuber - Vice President Cyril Rocke - Treasurer Edgar Chua - Director Anthony Cripps - Director Richard Eldridge - Director Consuelo Garcia - Director Rico Gonzales - Director Bernard Krueger-Sprengel - Director Guenter Matschuck - Director John Miller - Director Bernard Poplimont - Director Jose Luis Romero-Salas - Director Ernst Wanten - Director
Honorary Auditors KPMG Manabat Sanagustin & Co.
Submissions Articles and other materials of interest to the general membership are actively solicited and may be sent to the Chamber All materials submitted for publication become the Chamber’s property and are subject to editorial review and revisions.
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reasons why you should join the ECCP
1.
Business support – Receive comprehensive and effective business support from industry and support committees and a team of dedicated government relations staff.
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Business advocacy – Take advantage of the chamber’s more than 30year track record in successfully addressing business issues with the Philippine government – both national and local.
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Reproduction No part of the Business Review may be reproduced or transmitted in any form or by any means, electronic or mechanical without prior written permission. Circulation 1,000 copies of the Business Review are distributed free of charge on a bi-monthly basis to ECCP members, friends of ECCP, as well as to industry associations and government officials with whom the Chamber has dealings.
communication, business continuity, soft skills, HR management, and quality management. We also provide local and international coaches. 8.
Business promotion – Promote your business to a targeted audience of senior business executives through the introduction of potential business partners, sponsorship of high-profile events, and promotion through the chamber’s publications and websites.
9.
Trade fair participation – through its affiliate fairs&more, the chamber offers a wide range of trade fair services, from booth / pavilion design to stand construction, from marketing collaterals to pavilion management, from product selection to design support – in Asia, Europe, the Middle East and the United States.
10. Social & community activities – Enjoy high-quality social and sports events, organized and managed by the chamber, for members and third parties, including golf events, soccer tournaments, fashion shows or wine tasting. 11. Corporate Social Responsibility – Be part of the chamber’s CSR activities, from ‘English is Cool’ to ‘Retirement & Healthcare’, from ‘OneFilipino.Net’ to the promotion of creative industries.
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7.
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14. Consulting services – Consult with experts for advice concerning the selection of partners and on handling specific business issues vis-à-vis the government.
August 2011
12. European Chamber network – Tap into the expertise and experience of European Chambers and European Business Organizations in surrounding markets and around the world.
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