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Business Review

April 2011

Volume XXVII No. 4

Philippine Retirement and Healthcare Sector

Servicing the Global Silver Market 4


Business Climate Action Summit

Making the Philippines a Retirement Destination

Human Capital Club 2nd Executive Roundtable

Materials R&D Awarded 1M Funding for 2011



Meeting with Executive Secretary Ochoa

ECCP Partners with Business Mirror and Philippines Graphic

Materials Library’s new Road Show System at CFIF’s Cebu Next 2011

28 Special Feature

Meeting with the PRC

Social Media – Listening, Engaging, and Improving the Customer Experience

Meeting with Executives of DOLE

Meeting with DOF

Meeting with SC Chief Justice Corona


Integrity Initiative Talks with Government

Meeting with CSC Senior Officers

Bringing the Initiative Down South

Meeting with BIR Commissioner Henares



Meeting with Budget Sec. Abad



ECCP, CBC, MCCI hold Money and Investment Forum

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April 2011

14 ECCP Management The new man at the 19th floor

Will you still need me? Will you still feed me? When I’m 104?

24 Green Business

SCP: The Bankers’ Perspective


Data leaks Can They be Avoided?

29 Europe News

Medical Devices & the EU Market

30 Internship

ECCP / DLSU’s Applied Corporate Management – A unique internship program

34 Fairs & Exhibition 36 IMPRESSUM


ECCP Management

The new man at the 19th floor By Rodel Alzona From his office at the 19th floor of the Philippine AXA Life Centre in Makati City, Michel Miloda has a very good view of the hustle and bustle inside the country’s premiere financial district. Miloda is the new Vice President and General Manager of the European Chamber of Commerce of the Philippines (ECCP). He is replacing Henry Schumacher, the man who has long been associated as the face of the chamber. However, Schumacher will remain at ECCP for the chambers advocacy work and special projects, as Vice President for External Affairs. “I see tremendous growth when I look out there. It is a city that offers a lot of opportunities,”Miloda said in describing what he sees outside his windows.


April 2011

The Swiss-born Miloda is now heading the ECCP’s operations and charting its future directions.

cific, said that for heavy volumes of investments to come into the country, a predictable business environment must be established.

Undersold The 57 year old Miloda is no stranger to the Philippines having been in and out of the region from 1974 to 1984 and then again from 1992 to 2001. His last stint in the country was with the Zuellig Group of Companies as general manager of one of its subsidiaries. “The Philippines has been undersold internationally. In Europe, the country is primarily seen as a holiday destination,” Miloda said. Miloda, who was a former Osec Business Network Switzerland Senior Consultant for Asia Pa-


“There must be a fair chance for a return for the investor,”Miloda said. The on-going Integrity Initiative and the recently presented Arangkada Philippines 2010 roadmap are steps in the right direction. He cited the country’s electronics, food, furniture, gifts / home décor, tourism, household- and BPO industries as those with the highest potentials in Europe. He said the country has to address two concerns to be competitive – infrastructure, and a stable supply of quality workforce.


Will you still need me? Will you still feed me? When I’m 104? By Art Villasanta


he 1st Philippine Retirement and Healthcare Summit held April 12 at the Dusit Thani Hotel rekindled the determination among stakeholders to push the Philippines as the preferred international retirement destination. Input from the summit will result in the drawing-up of a high-level roadmap leading to a comprehensive retirement program.

Summit partner was the Philippine Retirement Authority (PRA); the RHC cooperated with the Philippine Retirement, Inc. (PRI) in this endeavor. PRA is a government owned and controlled corporation whose job is to attract foreign nationals and former Filipino citizens into investing, residing and retiring here.

Critical to this roadmap’s success, however, is a tectonic shift in the process of managing retirement programs. In this new paradigm, stakeholders will veer away from a business model where “Silver Aristocrats” are treated by some as gold mines to be exploited and instead adopt an approach that treats retirees with dignity.

PRI is a non-stock and non-profit company that supports this sunrise industry; the main shareholders are the leading real estate conglomerates.

The 10 speakers at the summit talked about the international retirement market; the importance of retirement villages; healthcare services and the regulatory environment affecting the retirement industry. The summit was organized by the Retirement and Healthcare Coalition, Inc. (RHC), an organization consisting of the European Chamber of Commerce of the Philippines; the American Chamber of Commerce of the Philippines; the Korean Chamber of Commerce Philippines and the Japanese Chamber of Commerce and Industry of the Philippines.

These chambers of commerce united in the RHC represent the major markets targeted by the Philippines’ international retirement industry. RHC aims to promote and win recognition of the Philippines’ value as a retirement haven, and as a center of excellence for medical and managed care services for retirees from all over the world.

RHC: committed to seniors care RHC is promoting the Long Stay Visitor program as a successful market entry strategy to gain credibility and trust in the Philippines. This program is developed jointly with the Department of Tourism. Successful ‘long-stay visitors’ will eventually buy 2nd homes in the country and will hopefully later retire here.


April 2011


Green Business

Materials R&D Awarded 1M Funding for 2011


CCP Cebu’s Materials R&D program won 1 Million funding from the Department of Science and Technology Region 7 (DOST 7) and the Foundation for A Sustainability Society (FSSI) for research and development programs for 2011.

Under the DOST funding, the Materials R&D Program will be re-opening the Materials Library together with DOST and the Cebu Furniture Industries Foundation at a new location. Situated together with the Cebu Gifts, Toys and Housewares Foundation’s Showroom at DOST 7’s Banilad Science and Technology Complex, the project partners envision the new location to attract more visitors and sponsors, particularly from the universities. Included in the 2011 line-up of events for the Materials Library are seminars on Sustainable Design and Materials and special material exhibitions. A teaser of the new Materials Library was showcased at CFIF’s Cebu Next last March 5-8, 2011 at the Waterfront Hotel and Casino to give a preview of the Library’s new Road show system and its offering of local eco-friendly paints.

Materials Library’s new Road Show System at CFIF’s Cebu Next 2011


he Materials Library and Cebu GTH Showroom will formally open on the 6th of May, 2011.

Likewise, FSSI granted the Program additional funding for the continuation of its Bohol Weaving Project together with the Department of Trade and Industry Region 7, Department of Trade and Industry – Bohol and the weaving centers of Inabanga and Tubigon. Phase 2 of the Bohol Weaving Project will focus on apprenticeship trainings for the centers to address sustainability concerns of the industry. Out of school youth and design students from the local universities will be trained on weaving and a curriculum will be designed at the end of the program. Likewise, Phase 2 will also continue with its market and trend based material development, marketing and promotions. The Materials Research and Development (R&D) Program aims to promote eco-friendly production, creativity and competitiveness through new material manipulation, reinvention and rejuvenation of designs and indigenous materials. The Program also helps exporter companies from the three creative sectors of furniture, home decors and fashion accessories in their design, material and product research and development. For questions and interested partners, please contact Project Manager Ingrid Haufe at


April 2011


Economic Indicator VISTIOR ARRIVALS TO THE PHILIPPINES BY COUNTRY OF RESIDENCE JAN. 2011 ASIA Asean East Asia South Asia Middle East AMERICA North America South America AUSTRALIA/ASIA PACIFIC AFRICA EUROPE Western Europe Northern Europe Southern Europe Eastern Europe Eastern Mediterranean Europe OTHERS TOTAL

FEB. 2011


JAN-FEB 2010


23,483 161,999 5,640 3,758

26,151 156,024 4,528 4,288

7.42% 47.56% 1.52% 1.20%

43,652 255,854 5,935 6,568

13.70% 24.30% 71.32% 22.50%

77,494 433 18,067 338

59,561 297 16,017 294

20.50% 0.11% 5.10% 0.09%

120,930 662 29,260 458

13.33% 10.27% 16.49% 37.99%

14,954 15,522 3,235 3,775 800 4,809 334,307

15,197 14,646 2,814 2,520 610 4,163 307,110

4.51% 4.51% 0.90% 0.94% 0.21% 1.34%

27,801 26,953 5,285 4,754 1,410 9,264 538,786

8.45% 11.93% 14.46% 32.41% 0.00% -3.15%


VISITOR ARRIVALS TO THE PHILIPPINES - EUROPE JAN. 2011 EUROPE Western Europe Austria Belgium France Germany Luxembourg Netherlands Switzerland Northern Europe Denmark Finland Ireland Norway Sweden UK Southern Europe Greece Italy Portugal Spain Eastern Europe Eastern Mediterranean Europe TOTAL

FEB. 2011

14,954 1,422 791 3,000 5,645 35 1,934 2,127 15,522 1,609 690 491 1,714 2,439 8,579 3,235 174 1,857 80 1,124 3,775 800 71,997

15,197 1,277 875 3,314 6,021 42 1,645 2,023 14,646 1,571 498 385 1,735 2,197 8,260 2,814 162 1,451 239 962 2,520 610 68,444

JAN-FEB 2010 27,801 2,448 1,461 5,751 11,145 90 3,042 3,864 26,953 2,833 999 908 2,960 3,731 15,522 5,285 341 3,029 164 1,751 4,754 1,410

GROWTH RATE (%) 8.45% 10.25% 14.03% 9.79% 4.67% -14.44% 17.65% 7.40% 11.93% 12.25% 18.92% -3.52% 16.52% 24.26% 8.48% 14.46% -1.47% 9.21% 94.51% 19.13% 32.41% 0.00%



April 2011



Building Leadership Confidence with ECCP

Royal Cargo has enhanced its image and brand recognition, and has built leadership confidence in our companies, through a trustful cooperation with ECCP. ECCP has provided us a platform to present our unique service propositions to clients. � Michael Raeuber President and CEO Royal Cargo Combined Logistics, Inc. ECCP member since 1984, Manila

For more than 30 years, the European Chamber of Commerce (ECCP) has provided its members the opportunity to showcase their brands, products and services through numerous print and online publications. Boost your company image today, call 845-1324 or email


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: ECCP is on the World Wide Web at:



ECCP Board of Directors Hubert d’Aboville - President Erik Moeller Nielsen - Vice President Michael Raeuber - Vice President Cyril Rocke - Treasurer Edgar Chua - Director Richard Eldridge - Director Neil Elias - Director Rico Gonzales - Director Peter Labrie - Director Guenter Matschuck - Director John Miller - Director Bernard Poplimont - Director Jose Luis Romero-Salas - Director Bernhard Krueger-Sprengel - Director Richard Strollo - 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.

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.

reasons why you should join the ECCP


Business support – Receive comprehensive and effective business support from industry and support committees and a team of dedicated government relations staff.


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.


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.

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.


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.


Government relations – Interact with senior government officials of relevant departments at meetings, round tables, and social events.


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.


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.


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.

April 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.


Business Review - Vol. XXVII No. 4 - April 2011 Issue (Preview)  

The 1st Philippine Retirement and Healthcare Summit held April 12 at the Dusit Thani Hotel rekindled the determination among stakeholders to...

Business Review - Vol. XXVII No. 4 - April 2011 Issue (Preview)  

The 1st Philippine Retirement and Healthcare Summit held April 12 at the Dusit Thani Hotel rekindled the determination among stakeholders to...