Business Review - Vol. XXIX No. 3 - April - May 2013 Issue (Preview)

EDITORIAL

EU FIRMS GET READY FOR “AEC 2015’ Henry J. Schumacher Vice President for External Affairs

IT is important to get ready for the Asean Economic Community (AEC), which is scheduled to start in 2015. The Association of Southeast Asian Nations (Asean) has achieved world-wide recognition for being one of the most dynamic and integrated regions. The growing purchasing power of the 600-million consumer market and the ongoing progress of the regional agenda as discussed in Brunei last week are offering an integrated market and production base for both business and consumers.

The European chambers of commerce in Asean, including the European Chamber of Commerce of the Philippines (ECCP), are taking this development seriously. We formed an EU-Asean Business Council (EABC) already in 2011 and launched the first Asean-EU Business Summit in Jakarta that year. The success of the summit in Jakarta in 2011 and of the second and third in Phnom Penh in 2012 and Hanoi in 2013, respectively, have shown that these events are a unique chance for the business communities of Asean and EU to interact and directly convey their views, concerns and wishes to economic leaders of the two regions.

Understanding the importance of AEC (Asean’s total gross domestic product is estimated at $2,339 billion in 2012; total Asean trade was $2.4 trillion in 2011), the European chambers in Asean and European businesses active in many of the Asean countries decided in Hanoi to strengthen the EABC and establish its own secretariat by early 2014. The tasks of the council are: •

It will act as a platform between European businesses and European chambers of commerce in Asean with a view to advocate European business interests in the region;

•

The council will identify through regional working groups the key regulatory issues and barriers that affect or may affect European businesses operating and investing in the Asean region;

• It will undertake advocacy in Asean on behalf of its members (multinational companies and European chambers) and liaise with EU and Asean administrators (EU Commission, Asean Secretariat, member-states, etc.), business groups and related parties by originating, promoting, supporting, anticipating or addressing key policies, laws, regulations or developments which would affect its members; •

It will build networks and develop awareness within Asean and the EU by organizing relevant events; and

•

It will assist Asean businesses, interested to invest or to do business in the EU, along the same lines stated above.

The EABC will organize every year an Asean-EU Business Summit, parallel to the yearly Asean-EU Senior Officials Meeting. The summit brings together hundreds of local (Asean) and international high-level decision-makers and business leaders to discuss some of the key trade and investment issues. In the summit, business leaders interact with trade and investment ministers from Asean and the EU, in an effort to forge stronger business ties between the two regions.

During the summit in Hanoi on April 8 and 9, 2013, EABC members handed over to Asean and EU leaders position papers on: Agri-food, Automotive, Financial services, ICT, Infrastructure /Connectivity, Pharmaceuticals.

Leaders of the European chambers in Asean and the representatives of European business found the interactions in Hanoi extremely useful, including the business matching between Vietnamese and European businesses.

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FEATURE

Zero sum or Win-win?

By Art Villasanta

The Philippines faces up to the ASEAN Economic Community Will the Philippines be a winner or a loser with the advent of the ASEAN Economic Community (AEC) in 2015?

For 2008 to 2009 which is also described as Phase 1, the Philippines’ implementation rate stood at 94.55% as against the regional implementation rate of 86.7%. The Philippines met 91 of the 105 measures it set out to accomplish.

Clues that might yield a final answer to this key question can be found in two Scorecards published over the last three years by the ASEAN Secretariat based in Jakarta, Indonesia. The scorecards track the Philippines’ readiness for the AEC and those of the nine other ASEAN member states. There will be four scorecards until 2015.

For 2010 to 2011 or Phase 2, the Philippines’, implementation rate was 65.92% versus the ASEAN implementation rate of 56.4%.

So far, the Philippines did its part to ensure the free trade that underpins the AEC. It performed quite well by ASEAN integration standards in the second scorecard, which is for the period 2010 to 2011.

The checkered performance for 2010 to 2011 reflects the increasingly difficult nature of the remaining integration challenges faced by the Philippines as it approaches December 2015.

Of the 19 categories that grade progress in this monitoring mechanism, the Philippines implemented all its targeted measures in nine categories and implemented half of the targeted measures in a further nine.

ASEAN has announced an AEC Blueprint achievement rate of 80% for this period and admitted difficulty implementing the remaining 20%.

This April, President Benigno Aquino III said ASEAN’s efforts to create the single market are now in their hardest phase owing to protectionist muscle-flexing by sensitive sectors such as agriculture.

The Philippines, however, “failed” in one category—food, agriculture and forestry—where it implemented less than half of all targeted measures.

Ominously, agribusiness has been identified by Filipino experts as one of two key problem areas (the other being manufacturing) that might suffer gravely because of ASEAN integration.

“They have finished with the easy parts but the accomplishments will not be as fast as in discussing the hard parts. When you reach that point, there can be some protectionist measures taken by each economy,” Aquino said.

Food, agriculture and forestry includes food security; the free flow of safe and qualified products; improving competitiveness in international markets and the development of national good agriculture practices.

Among the key challenges within ASEAN identified by Aquino were creating a framework to open up the services sector, which includes banking, telecommunications, retail and insurance.

The Philippines’ scorecard saw it “pass” in the free flows of capital, skilled labor, and priority integration sectors; competition policy; intellectual property rights; minerals; ICT; taxation and e-commerce.

To do list

However only half was done in the free flow of goods, investment and capital; consumer protection; transport; energy; SME development; initiative for ASEAN integration and external economic relations.

But these achievements fell short of those from 2008 to 2009 when the Philippines implemented all but two of the 19 targeted measures. The laggards were the free flow of services and transport.

Unimplemented measures for both the Philippines and ASEAN are in trade facilitation and customs regulations; standards and conformance; services and investment liberalization; agriculture and forestry cooperation and consumer protection and transport.

The Philippines also needs to implement six measures that affect increased foreign equity and improved market-access in services and transport. A South Korean study submitted to the ASEAN Secretariat showed that the Philippines’ restrictive cabotage rule remains a major stumbling block to achieving the ASEAN integration of shipping services.

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ECCP CEBU

7th ECCP Football Cup CEBU ECCP Cebu organized the 7th ECCP Football Cup on May 26th at the Cebu International School. 26 participating teams, representing all professional levels in the company (from CEO to messenger), fought for the championship title.

The event was part of ECCP’s annual campaign to promote the increasingly popular sport and encourage strong ties between companies and among employees of the participating firms.

The day’s festivities also included minor events-the juggling contest and the CAMERADERIE photo contest-- which further livened up the crowd. As afternoon set in, several thrilling games had spectators holding their breath. Team after team was eliminated, until finally Convergys and Accenture seized the men’s and women’s championship trophies (respectively) provided by platinum sponsor A. Suarez Sterling. MVPs from the championship teams -- Kim Arcenas from Accenture and Antonio Yap, Jr. from Convergys -were awarded Havaianas gift certificates.

1st place is Carter Binarao

2nd place is Irwin Isidro

Special thanks to our platinum sponsor for this cup, A. Suarez Sterling Corporation, and our silver sponsors Habagat, Havaianas, Tobys Sports, Virginia Food Inc., Perpetual Succour Hospital, St. James Water and Nature’s Spring (PSWRI).

It was an overall success and surely an exciting and fruitful event for both players and supporters alike!

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3rd place is Juneden Bugtai

EVENTS

ECCP Golf Challenge 2013 The European Chamber of Commerce of the Philippines recently concluded the 14th run of its With exciting prizes up for grabs from sponsors such annual Golf Challenge last May 20, 2013 at the Sta. as Shinagawa Lasik & Aesthetis, Skyjet Air, Makati Elena Golf Club.

Medical Center, Forth & Tay, The Immigrant News, Hospitality International Inc., The Y2 Residence The event had more than 125 golfers out on the Hotel, Ambassador in Paradise Resort Boracay, BSI greens traversing on one of the most challenging Medicated Spray, The Bellevue Manila, Megafibre, golf courses in the country. Executives from the top Perskindol, Philippine Sundt, Savoy Bistro, Philippine-European business organizations were Vivere Hotel & Resort, Manny O Wines, Custom all in attendance for the event. clubmakers, Curves , The Crimson Resort and Spa, Hotel Centro, Intercare and Zeritext. The event was The event was made possible by AGS Fourwinds, also covered by Business Mirror, the official Media Banco De Oro, KMC Mag Group, Liquigaz, RCBC, Partner for the event.

Subic Bay International Terminal Corporation, Werdenberg Corporation, International Container The event will have its 15th run next year and talks Terminal Services, Inc. and RCW Construction & to expand the event to include a Cebu tournament Development Corporation. is currently in the pipeline.

THANK YOU TO ALL OUR SPONSORS OFFICIAL FUN HOLE PRIZE Sponsor

Hole Sponsors

  Mulligan PRIZE Sponsor

DRINK Sponsor

MEDIA PARTNER

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ADDENDUM

New Members AMROP PHILIPPINES

INFOR PSSC, INC.

MASCHINEN & TECHNIK, INC.

1704 Antel Corporate Centre, 121 Valero Street Salcedo Village, Makati City Tel. No. (632) 750-3333; 750-3335; 752-5663 Fax No. (632) 750-3334; 325-0461 e-mail: amrop@amrop.ph www.amrop.com

9th, 10th and 14th Floors, Net Square Center, Bonifacio Glocal City, Taguig, Metro Manila, 1634 Tel. No. +63 2 860 8000 Fax No. +63 2 856 0292 www.infor.com

Tech Center, Buencamino St. Alabang Muntinlupa City Tel. No. 850-6450 to 52 Fax. No. 850-3631

Main Representative: JUN GIL Founder & Chairman jun.gil@amrop.ph

Main Representative Mariphel “Chie” Raza HR Director Chie.raza@infor.com

Alternate Representative: PATTY GALLARDO Senior Partner & Managing Director patty.gallardo@amrop.ph

Alternate Representative Ferdinand “Ferdy” Go IT Director ferdinand.go@ infor.com

OFFICERS Jun Gil, Founder and Chairman; Patty Gallardo, Senior Partner & Managing Director; Marissa Navarro-Banaynal, Partner & Consultant; Raymond P. Cruz, Partner & Consultant; Eliza E. Bravo, Partner & Consultant

OFFICERS Finance Ronald Lee ronald.lee@infor.com

BACKGROUND Amrop is a top 10 global executive search network of 91 offices in 57 countries. It ranks among the “Top Ten” in the world in terms of revenue and geographic reach. In the Philippines, Amrop is the only Top 10 firm with on-the-ground presence to better serve the requirements of its clientele.

In 2012, Amrop marked its 17th year in the Philippines, maintaining a record high of 94% repeat business!

Amrop Philippines is a co-founder of the Philippine Association of Executive Search Professionals (PAESPI). Its mission is to help professionalize the industry and curb malpractices that have victimized clients and candidates alike.

NATIONALITY Filipino ACTIVITIES/SERVICES Executive Search: Local, Regional and International ASSOCIATIONS Philippine Association of Executive Search Professionals, Inc. (PAESPI) Association of Executive Search Consultants, USA (AESC) Management Association of the Philippines (MAP) People Management Association of the Philippines (PMAP) European Chamber of Commerce of the Philippines (ECCP)

I.T. Ferdinand Go Ferdinand.go@infor.com

Main Representative Dr. Guenter G. Matschuck President g.matschuck@matec.com.ph Alternate Representative Caldwell S. Hoey Admin and Finance Manager re.admin@matec.com.ph OFFICERS Dr. Guenter G. Matschuck, President/CEO; Rolando S. Manalo (Sales and Marketing), Caldwell Hoey (RE) Board Of Directors Atty. Eduardo F. Hernandez, Dr. Guenter Matschuck, Federico V. Borromeo, Axel O. Schroeder, Dr. John Benjamin Schroeder, Rizalina S. Matschuck, Charmaine Bondoc Officers Dr. Guenter G. Matschuck, President/CEO; Rolando S. Manalo (Sales and Marketing), Caldwell Hoey (RE)

HR / OD Mariphel “Chie” Raza Chie.raza@infor.com Purchasing Vanessa Salameda Vanessa.salameda@infor.com Board Of Directors Patricia Ann Elias, William Lee, Ma. Adelina S. Gatdula, Recaredo C. Borgonia, Jr., Anne Marjorie Magaipo Officers Chie Raza, HR Director; Ferdy Go, IT Director; Vicente Dino, Services Director Lorraine Banzon, Support Director; Paul Jason Reyes, Product Development Director, S3; Edwin Martinez, Product Development Director, M3; Eden Molina, Facilities Manager Background Infor PSSC, Inc. is a subsidiary of Infor Global Solutions, Inc. an American corporation with head office in New York, USA. Infor PSSC, Inc. is engaged in the business of designing, developing, exporting and licensing all kinds of software applications and IT Solutions and providing services related thereto.

Nationality American Activities / Services IT Services, IT Consulting

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Background Established in 1979 as a Filipino-German joint venture, Maschinen & Technik, Inc. (MATEC) is an affiliate of Coutinho Caro International Trading and belongs to the Muenchmeyer Petersen Group of Companies in Hamburg.

Nationality German ASSOCIATIONS GPCCI, ECCP, MBC, PSPA, ENMAP, IIEE, PETEF, ITESAP, REAP, PMAP Affiliates Coutinho Caro International Trading, Philippine Electronic Industries, Inc. (PEI) Activities / Services Developer for infrastructure and industrial projects; international trading, engineering and consulting; system integrator and import financing In cooperation with reputable manufacturers such as Voith Siemens Hydro, MAN Turbomaschinen AG, Burckhardt Compression AG, Klein Schanzlin und Becker AG (KSB), Bauer Kompressoren, Egger GmbH, Voith Turbo, Ferrostal, Broquet, Dinauer, Lorentz, Panel & SMA Inverters.

The Business Digest of the European Chamber of Commerce of the Philippines

Business Review Published by European Chamber of Commerce of the Philippines (ECCP)

ECCP Board of Directors Michael Raeuber - President Erik Moeller Nielsen - Vice President Cyril Rocke - Vice President Head office: Consuelo Garcia - Treasurer 19/F Philippine AXA Life Centre Cesar Cruz - Secretary Corner Sen. Gil Puyat Ave. and Tindalo St., Makati City, Philippines Ed Chua - Director Tel: (02) 845 1324, 759 6680 Richard Eldridge - Director Fax: (02) 845 1395, 759 6690 Bodo Goerlich - Director E-mail: info@eccp.com Guenter Matschuck - Director John Miller - Director Visayas office: Bernard Poplimont - Director 3/F C. L. Center 14 Juana Osmeña St., Philippe Reveilhac - Director Cebu City, Philippines Jose Luis Romero Salas - Director Tel: (032) 253 3389, 254 3765, 254 3767 Guenter Taus - Director Fax: (032) 253 3387 Fabia Tetteroo-Bueno - Director E-mail: visayas@eccp.com Wick Veloso - Director Mindanao office: 2F DCCCII Bldg., JP Laurel Avenue, Submissions Davao City, Philippines Articles and other materials of interest to the Tel: (6382) 271-0635 general membership are actively solicited Fax: (6382) 226-4433; 221-4148 and may be sent to the Chamber All E-mail: mindanao@eccp.com materials submitted for publication become ECCP is on the World Wide Web at: the Chamber’s property and are subject to editorial review and revisions. http://www.eccp.com

Ipressum

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reasons why you should join the ECCP

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.

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.

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 30-year track record in successfully addressing business issues with the Philippine government – both national and local.

3.

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, Cebu and Davao.

4.

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

11. Corporate Social Responsibility – Be part of the chamber’s CSR activities, ‘Retirement & Healthcare’; promotion of creative industries; energy efficiency; etc.

5.

Business Information and Advisory Services – Receive frequent updates and analysis on the business and regulatory environment through e-mail, eccp@work, and the Business Review.

12. European Chamber network – Tap into the expertise and experience of European Chambers and European Business Organizations in surrounding markets and around the world.

6.

Alternative conflict resolutions – Make use of our network of partners in resolving disputes without going to court.

7.

Training – Attend tailor-fit seminars and training courses with world-renowned experts covering areas such as leadership, management, project management, negotiation and presentation skills, cross-culture communication, business continuity, soft

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.

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.

14. Consulting services – Consult with experts for advice concerning the selection of partners and on handling specific business issues vis-à-vis the government.

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