Contents
Business Review
www.eccp.com
March 2012
Volume XXVIII No. 2
LGUs in Business Development: Nurturing the goose that lays the golden eggs
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editorial
Towards a more constructive dialogue with Local Governments
Energy Committee Meeting with USec. Layug of the DOE
Investment & Business Environment Committee Meeting with ASec Sy
National Competitiveness Council (NCC) Anti-Corruption Working Group
Breakfast with German Delegation
Legislative Tracker
5 CHAMBERS@WORK
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Meeting with Senator Ferdinand Marcos Jr. – 15 Feb Meeting with PEZA Dir. General Lilia de Lima – 17 Feb
12 EUROPE NEWS Europe’s crisis: The keywords are
18 FEATURE
LGUs in Business Development: Nurturing the goose that lays the golden eggs
25 MEMBERS’ CORNER
TNT Express Celebrates 30 years of service excellence in the Philippines
British School Manila Chairman Awarded MBE in Queen’s New Year’s Honour List”
Triple i Consulting Inc., the First and Only ISO registered Management Consultancy in the Philippines
Integrity Initiative – Report on Forum with Palma-Angeles
Meeting with Chairperson Manzala of the PRC
Meeting with the Department of Finance - USec. Jeremias N. Paul and ASec. Teresita Habitan on Sin Taxes
European Commission proposes faster access to medicines for patients
IESF and StraSearchAsia
Innovation partnership to overcome Europe’s raw materials shortages
CIE Offers British Education for Global Relevance
EU Energy Policy Dialogue with DOE Sec. Almendras
Strategy for sustainable bioeconomy in Europe
29 RETIREMENT AND HEALTHCARE
House Ways & Means Committee Hearing on Sin Taxes
Barriers To Trade EU assesses progress of its strategy to dismantle Trade Barriers
Retirement & Healthcare Committee Meeting
Guide to EU support programs for SMEs
COA Heidi Mendoza
16 INTEGRITY INITIATIVES
Meeting with Department of Transportation and Communication (DOTC) USec. Limcaoco
Do Headhunters have a Code of Ethics?
Regional business groups and sme’s comment on draft compliance framework
March 2012
responsibility and visions for future growth
BUSINESS REVIEW
2nd Philippine Retirement & Healthcare Summit 2011 (PRHS)
30 SMART CEBU
Successful in AMBIENTE 2012.
SMART Cebu at the Hub
32 IMPRESSUM
Chamber@Work
Meeting with Senator Ferdinand Marcos Jr. – 15 Feb
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CCP met with Senator Marcos on issues concerning mining and energy. Marcos who served as Governor of Ilocos for three consecutive terms, is all too familiar with issues concerning the local government units (LGU’s). ECCP on its part reiterated its concern on national vs. local interests concerning the mining and energy sector, the timely payments of local taxes, and the long-term investment security of the LGU’s vs. the (three year) short-term changes proposed. The meeting proved to be advantageous as the Senator is also chairing committees handling the following bills:
• • • •
Direct remittance of LGUs share from National Wealth Taxes Bills regarding non-working holidays BOT Law Amendments Land Use Code.
Meeting with PEZA Dir. Integrity Initiative – Report on General Lilia de Lima – 17 Feb Forum with Palma-Angeles
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epresentatives of ECCP’s Energy Efficiency Committee met with PEZA Director General Leila de Lima and presented its ideas on how energy efficiency can be introduced for both government-owned and privately owned PEZA zones. Director General de Lima agrees that at present, PEZA locators are enjoying a power subsidy and should move towards exploring investments in energy efficiency to help mitigate power costs and reduce consumption. ECCP will be drafting a proposed guideline which in turn, will be discussed with PEZA officials soonest.
Feed-In-Tariff Hearings
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CCP attended hearings of the Energy Regulatory Commission (ERC) on the Adoption of the Feed-In Tariff (FIT) for electricity generated from Biomass, Ocean, Run-of-River Hydropower, Solar and Wind Energy Resources proposed by the National Renewable Energy Board (NREB). On the first day, biomass was debated; on the second day, solar power was discussed.
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he Integrity Initiative concluded its 5th forum run. Held last February 17, the forum was deemed a success with 60 representatives comprising the top corporations in attendance signing the Integrity Pledge. The forum is part of a succession of runs with the aim of promoting ethics, integrity, and good governance to the private sector. The forum has with it the ultimate goal of continuously educating and advocating the importance of integrity as a critical business practice in today’s competitive business environment. Dr. Antonette Palma-Angeles, Center Director of the Gov. Jose B. Fernandez Jr. Ethics Center of the Ateneo de Manila University argued that certain local and cultural traits drive and fuel corruption. Dr. Angeles identified these detrimental traits and discussed how these hamper the practice and implementation of ethics in corporations. The forum also identified the many ways in which an organization can begin to build a more integrity-focused and ethically driven organization in the Philippine setting. Presentation outline is available for download at www.integrityinitiative. com
BUSINESS REVIEW
March 2012
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Feature
LGUs in Business Development: Nurturing the goose that lays the golden eggs By Art Villasanta
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h, Boracay, the world’s fourth best island destination in 2011, said readers of Travel + Leisure Magazine, a leading international travel magazine.
Boracay’s revenues, however, were close to 30% higher than Quezon City’s, an LGU 1,560 times larger in land area and 22,000 times greater in population.
Ah, Boracay, whose White Beach was voted Asia’s best beach and the world’s second best by travelers who took part in a survey by TripAdvisor.com, a leading online travel site, also in 2011.
Makati City, by the way, ended 2011 with revenues of P11 billion, a tenth higher than in 2010.
European backpackers re-discovered Boracay for the world in the 1980s. Their word-of-mouth advertising of this then unknown, exotic Philippine Paradise with its pristine talcum-powdery white sand beaches unlike any other set in train a series of events leading directly to the praises—and the unbelievable economic bounty—Boracay enjoys today. An ever rising flood of Filipino and foreign tourists has made Boracay the richest local government unit (LGU) in the Philippines. Only 7.5 kilometers long and a scant kilometer wide at its narrowest, this fortunate slice of real estate accounted for record-setting revenues of P16.7 billion in 2011, up a sizeable 17% over the P14.3 billion it earned in 2010. It easily beats Quezon City, the Philippines’ richest city and arguably its most business friendly, which registered record revenues of P12.9 billion last year, a 13% improvement over P11.4 billion in 2010.
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March 2012
Recall that Boracay is only a “barangay” (or village) and one is left all the more astounded by how this “flyspeck-of-an-island” can consistently generate more income than any Philippine city, town or barangay. It is one of more than 370 barangays in the province of Aklan to which it belongs. Not by Mother Nature alone Boracay didn’t become this Golden Island by leaving Mother Nature to nurture its world famous White Beach all by herself. Mother Nature’s only good at growing wild grasses and causing wildlife population explosions in areas where she’s left unchecked. Boracay became Boracay because the local community and its LGU, the town of Malay, early on rightly decided that one of the paths to prosperity was to welcome investors without overburdening them with petty taxes imposed to generate “quickie revenues.”
BUSINESS REVIEW
Retirement and Healthcare
The Retirement & Healthcare Coalition (RHC), composed of the American, European, Japanese and Korean Chambers of Commerce, is organizing the
The Retirement & Healthcare Coalition (RHC), composed of the American, European, Japanese and Korean Chambers of Commerce, is organizing the
Competing the Global Silver Market 2nd for PhiliPPine RetiRement & h:ealthcaRe Summit 2012 Competing for the global Silver market Positioning the Philippines as a Top Retirement & Healthcare Destination in Asia poSitioning the philippineS aS a top retirement & healthCare DeStination in aSia 26 JUNE 2012 | Whole Day Conference & Exhibition | Grand Ballroom Dusit Thani Manila 26 JUNE 2012 | Whole Day Conference & Exhibition | Grand Ballroom, Dusit Thani Manila This event is set to recognize the Philippines’ potential as the top retirement destination in Asia and to be capable of providing quality service to the silver market.
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his summit will tackle the challenges in enabling Philippines to compete globally by strategizing every key player’s approach to retirement & healthcare. It will be beneficial for all business development officers, real estate developers, contractors, lifestyle and wellness providers, tourism operators, healthcare providers, researchers, government and the academe. The event will have a combined conference and exhibition program to maximize the marketing impact and exposure of companies involved in the event. Sponsorship and booth exhibition for this event is now open. For inquiries, please do not hesitate to call 845-1324 and look for Ms. Chen Pilar or email her at chen@rhc.com.ph.
Tourism & Hospitality Hotels & Resorts Finance & Investment Real estate developers
Who should attend?
Retirement village operators & investors
Government & NGO
Marketing & Advertising companies
Why Attend? •
Define the key areas where Philippines can compete globally and ways on how to avert the demand into a sustainable and profitable business
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Create alliances and strengthen the synergy and collaboration among the hospitality, healthcare and retirement industries;
•
Implement and develop a pro-active roadmap for the Philippines as a retirement haven and managed-care for international retirees;
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Present business opportunities in key growth areas of the retirement sector that will be at par with other South East Asian Retirement Program.
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Learn how healthcare, community and lifestyle is important in building a retirement destination
BUSINESS REVIEW
Healthcare & Wellness including hospitals, pharmaceuticals, clinics and professional spas
Retirees and Investors who want to identify locations or areas for living, retirement and investment purposes.
RegiSteR now! Fees: P4,300 - Local Delegates P3,600 - RHC Members, Members of Endorsing Organizations, Academe & Government
To register, please fill up the form and fax it back to 845-1323 or 759-6690
to RegiSteR and know moRe about thiS event contact: Ms. Chen Pilar +63 845-1324 loc 242 or email chen@rhc.com.ph
March 2012
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Smart Cebu
SMART Cebu at the Hub
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MART Cebu (SMEs for Environmental Accountability, Responsibility and Transparency in Cebu) project managers Gerry Constantino (ECCP) and Ruby Salutan (CFIF) represented the project during the recent Manila FAME/Cebu Next event at the SMX.
Gerry Constantino made a presentation on The SMART Cebu project at the Hub to explain what the EU Switch Asia project is accomplishing in Cebu. He highlighted that SMART Cebu is not only helping clean up production processes but is all together introducing a new business model that is based on SCP or sustainable consumption and production. The SCP business model not only helps take care of people and the planet but more importantly enhances the profitability of SMEs thus making them more competitive. Competitiveness is achieved through a combination of business strategies that promotes eco-design, sustainable materials, resource efficiency, cleaner production and smart positioning in the growing global green markets. Ruby Salutan is optimistic that with SMART Cebu project’s focus on sustainable production and consumption principles, growth in the local furniture industry over the next few years is achievable. She said the SMART Cebu project has already organized the players in the industry, conducted several eco-assessment exercises and audits, and conducted eco-design production trainings. The SMART Cebu project has also given Cebu furniture makers access to international trade fairs to showcase their products. Ms. Salutan confirmed that SMEs have started joining expos abroad. CFIF members have been to Cologne and Shanghai. The reaction was tremendous with many potential buyers and serious inquiries. Through the efforts of CFIF, the special setting that was displayed by SMART Cebu in IMM Cologne was remounted and presented during the Manila FAME/Cebu Next event.
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March 2012
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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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.
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.
2.
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.
3.
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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 Guenter Matschuck - Director John Miller - Director Bernard Poplimont - Director Jose Luis Romero-Salas - Director Ernst Wanten - Director
Networking & business opportunities – Meet and exchange views with some 700 local and foreign senior business executives that are active in various business and social activities each year, in Manila and Cebu.
www.eccp.com
Honorary Auditors KPMG Manabat Sanagustin & Co. 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. Subscription service Subscriptions from non-members are also accepted: in the Philippines: Pesos 1,500 (6 issues); Individual copies may be purchased locally at Pesos 220 (members) and Pesos 250 (non-members); and for companies outside the Philippines at US$25.00.
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.
4.
Government relations – Interact with senior government officials of relevant departments at meetings, round tables, and social events.
5.
Relevant, up-to-date market information – Receive frequent updates and analysis on the business and regulatory environment through e-mail, eccp@work, and the Business Review.
6.
Alternative conflict resolutions – Make use of our network of partners in resolving disputes without going to court.
13. Special member services – Make use of our special services in visa and work permit support through our close working relationship with the Bureau of Immigration.
7.
Training – Attend tailor-fit seminars and training courses with worldrenowned experts covering areas such as leadership, management, project management, negotiation and presentation skills, cross-culture
14. Consulting services – Consult with experts for advice concerning the selection of partners and on handling specific business issues vis-à-vis the government.
March 2012
12. European Chamber network – Tap into the expertise and experience of European Chambers and European Business Organizations in surrounding markets and around the world.
BUSINESS REVIEW