BusinessMirror September 05, 2019

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NCR ECOZONE BAN HURTS I.T.-BPM FIRMS By Elijah Felice E. Rosales @alyasjah

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HE information-technology and business-process management (IT-BPM) industry will struggle to grow by 8 percent this year, as firms are having difficulty expanding their operations due to the ban on economic zone development in Metro Manila. Rey E. Untal, president of the IT and Business Process Association of the Philippines (Ibpap), said ITBPM firms are scrambling for the remaining office spaces in Metro Manila. President Duterte in June issued Administrative Order 18, which

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mandated a moratorium on the processing of applications for economic zones in the nation’s capital. As such, the Philippine Economic Zone Authority (Peza) was directed to no longer accept, process or evaluate proposals to put up new economic zones in Metro Manila, resulting in an office space crunch for the IT-BPM industry. “There is AO 18 that we need to account for. Our concern there is there is very little space to utilize for a substantial annual growth that we typically see,” Untal told reporters on Tuesday. Citing data from consultancy firms, Untal disclosed available of-

fice space in Metro Manila is down to 115,000 to 120,000 square meters, as competition gets tighter due to the influx of online gaming operators. The IT-BPM industry expanded 420,000 square meters last year, and requires 450,000 square meters this year to accommodate expansions and new operations. With a labor force of 1.23 million workers as of last year, the industry accounts for at least 32 percent of office spaces in the Philippines. Under its road map, the industry is projected to create 100,000 jobs annually to employ a total of 1.8 million workers by 2022. See “IT-BPM firms,” A2

BusinessMirror A broader look at today’s business

www.businessmirror.com.ph

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Thursday, September 5, 2019 Vol. 14 No. 330

PHL improves ranking in WEF tourism index

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By Cai U. Ordinario

@caiordinario

ETTER ground and port infrastructure allowed the Philippines to improve its performance in the 2019 edition of the World Economic Forum’s (WEF) Travel & Tourism Competitiveness Index.

In the 2019 Travel & Tourism Competitiveness Report (TTCR), WEF said the Philippines now ranks 75th out of 140 countries with a score of 3.8 in the index. The overall scores range from 1 to 7, with 1 being the lowest and

7 being the highest. The Philippines was considered the most improved when it comes to Ground and Port Infrastructure in Asia and the Pacific. WEF also regarded the Philippines as the most improved in terms of its overall

performance in the region. “The Philippines had the fastest rate of improvement, moving up four places to rank 75th globally. The country showed impressive improvement on overall infrastructure [90th to 80th] and

The country showed impressive improvement on overall infrastructure [90th to 80th] and ICT [information and communications technology] readiness [86th to 82nd], but still faces challenges when it comes to safety and security [135th].” —WEF 2019 Travel & Tourism Competitiveness Report

ICT [information and communications technology] readiness [86th to 82nd], but still faces challenges when it comes to safety and security [135th],” the report read.

@BNicolasBM

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griculture Secretar y William D. Dar promised to disclose by Friday the confirmatory test results on whether African swine fever (ASF) has indeed infiltrated the country and caused the hog deaths in several backyard farms. The Department of Agriculture (DA) earlier sent blood samples to three foreign laboratories in the United Kingdom, Spain and Australia. Government officials said the laboratories are World Organization for Animal Health reference laboratories, which were regarded as the most competent authorities in relation to specific diseases. Dar said he will also be reporting to the Cabinet on Wednesday about the mystery hog disease but he declined to give further details. “Wag muna natin pag-usapan yong swine kasi bukas, ngayong gabi ire-report ko sa gabinete and as I have said, Friday we will disclose what that disease is, kung positive o negative. Sa Friday idi-disclose na natin kasi, hoping na ’yung last component ng confirmatory lab test will be out, we will receive by tomorrow and by Friday, we

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will make it public. [Let’s not talk yet about swine because tonight, I will be reporting to the Cabinet and as I have said, Friday, we will disclose what that disease is, if it is positive or negative. We will disclose it on Friday because [we are] hoping that the last component of the confirmatory lab test will be out, we will receive by tomorrow [Thursday] and by Friday, we will make it public],” he told Palace reporters in an interview. Despite the pending public release of confirmatory test results, Dar said there is nothing to worry about even if the results turn out to be positive for the ASF, a disease with a nearly 100-percent mortality rate for swine. Asked if there is a cause for public concern, the agriculture chief quickly replied there is “none.” Even if the result were positive, “but better if it’s negative, it’s okay,” he said, because “we have already put in place quarantine and food safety measures all over the country.” Dar also confirmed there were five areas placed under quarantine by the department but did not identify them to discourage people, especially the media, from going there and possibly spreading the disease. See “Hog killer,” A2

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All-out trade liberalization vs trade-production calibration? Rene E. Ofreneo

laborem exercens

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n the Senate hearing on the adverse impact of the rice tariffication law on domestic palay producers, Sen. Cynthia Villar kept explaining that the liberalization of rice trade is part of the Philippine commitment to the World Trade Organization (WTO). Meaning, the country cannot suspend or repeal the law, as demanded by virtually all the farmer leaders and rice farmers who are hurting from the low, low prices of palay. The message: for the Filipino rice producers to survive and win in the liberalized global rice trading order, they have no choice but to keep upgrading their productive capacity. Hence, the rice tariffication author continues to harp on the central role of the P10-billion twin productivity-enhancement programs the Senate appended to the tariffication law: The propagation of high-yielding rice varieties and the distribution of new agricultural machinery.

See “Tourism index,” A2

Continued on A7

Friday’s the day: Dar expects test results on mystery hog killer By Bernadette D. Nicolas

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DOLE sees AEP take above ₧200M By Samuel P. Medenilla

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vate corporation under the Marcos administration in 1977, Duty Free Philippines came under government control in 1986, and was overseen by the Philippine Tourism Authority, a unit of the DOT. It was reorganized into a government-owned and -controlled corporation when Republic Act 9353, or the Tourism Act of 2009, was signed into law.

HE Department of Labor and Employment (DOLE) said on Wednesday it expected to earn more than P200 million this year from its issuance of work permits for foreign nationals (FN). During budget deliberations at the House of Representatives, labor officials said DOLE was able to generate P166 million from fees imposed on applicants for Alien Employment Permits (AEP) from January to July. The process fee for AEP is P9,000. “We expect it will be higher than last year because we got more applications. We noticed a spike in the AEP applications from those who previously have an SWP [Special Work Permit],” Labor Assistant Secretary Benjo Benavidez told the BusinessMirror in an ambush interview. In August, the Bureau of Local Employment (BLE) confirmed it already had 52,450 AEP applications for the first half of the year, a number nearly approximating the 54,251 AEP applications for 2018. In 2017, DOLE revenues from AEP were only at P190 million. This

See “Duty Free,” A2

See “DOLE,” A8

RONALD’S FOR OLD FOLK McDonald’s President and CEO Kenneth Yang (left) joins Manila Mayor Isko Moreno and Atty. Erwin Narag Aquino, assistant regional director of the Department of Labor and Employment-NCR (right) during the MOA signing between the Local Government of Manila and Golden Arches Development Corp. for the employment of PWDs and Senior Citizens in 40 McDonald’s stores in Manila. The signing was held at Manila City Hall’s Bulwagang Bayan. ROY DOMINGO

DOT chief: Duty Free firm’s privatization possible By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

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HE Department of Tourism (DOT) is eyeing the privatization of the Duty Free Philippines Corp. (DFPC) despite the latter’s profits being a source of funds for government’s tourism promotion programs.

In an interview with the BusinessMirror, Tourism Secretary Bernadette Romulo Puyat said she has secured the Department of Finance’s backing in the plans to let go of DFPC. “We’re studying the possibility of privatizing Duty Free. I’ve spoken with Finance Secretary [Carlos G.] Dominguez, and he told me to go ahead [and privatize it].” Although initially set up as a pri-

@sam_medenilla

US 52.2580 n japan 0.4934 n UK 63.1695 n HK 6.6623 n CHINA 7.2795 n singapore 37.5903 n australia 35.3107 n EU 57.3584 n SAUDI arabia 13.9336

Source: BSP (4 September 2019 )


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