Philippines climbs five notches in IMD's world competitiveness ranking

MANILA - (UPDATED 9:26 a.m.) After dropping two steps last year, the Philippines climbs five notches in the International Institute for Management Development's (IMD) 2013 World Competitiveness rankings.

The Philippines went up from 43 to 38 in the World Competetiveness Yearbook as investments in telecommunications, foreign direct and portfolio investments, real gross domestic growth (GDP) per capita and real GDP growth improved.

It also helped that the country's direct investments abroad, social cohesion, and its international image or branding got better, the yearbook said.

The Philippines also benefitted from a benign consumer price inflation; shrinking government subsidies, improved scientific research, researchers and scientists; narrowing interest rate spread; and easing protectionism.

Still, it was not all high marks. The Philippines was seen to have weaknesses in several areas of the economy, specifically:

• high-tech exports
• real short-term interest rates
• employer's social security contribution rate
• water transportation
• government budget deficit
• relocation threats of production
• direct investments in stocks abroad
• communication technology
• current account balance
• state ownership of enterprises
• foreign investors
• employee training
• social responsibility
• investment risk
• start-up procedures

Overall, however, the Philippines was graded to remain attractive to investors. A big pool of skilled workers was on top of investors' lists of things to like about the country, IMD's Executive Opinion Survey showed.

The country has to hurdle several key issues this year to be able to lift it from its present ranking. High up on the priority list, the IMD said: improving and expanding infrastructure.

"Many roads remain unpaved and the main airport is operating beyond capacity," the Yearbook says.

The Aquino administration also needs to step up its anti-corruption drive as the country still ranked 105th out of the 174 by Transparency International.

Despite the stellar growth posted over the past few years, unemployment in the country is still the highest among the ASEAN 5 group, which counts Singapore, Malaysia, Thailand, Indonesia, and the Philippines.

Moreover, the country still has to contend with an undeveloped financial system and it should work to improve access to financing - the biggest challenge facing small and medium enterprises.

Additionally, it was noted, while this may be beyond the government's control, the Philippines suffers regularly from natural disasters. An average of 20 typhoons hit the Philippines in a year, causing billions of pesos in damages. The government must mitigate against the risks these calamities bring.

The 2013 World Competitiveness Rankings is released by IMD in partnership with the AIM Policy Center and the Konrad Adenauer Stiftung.

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PH opens new fishing ground: Benham Rise

It's off-limits to Chinese, Taiwanese fishermen

MANILA - As China asserts its presence in the West Philippine Sea, Filipino fishermen are actively avoiding Scarborough Shoal in the waters just off Zambales province.

Amid the tension in the western sea board, the Philippines has announced the opening of a new fishing ground in the east -- the Benham Rise.

Benham Rise, a 13-million hectare undersea region that has untapped potentially rich mineral and gas deposits, is located off the coast of Aurora province, opposite the disputed waters of South China Sea.

Bureau of Fisheries and Aquatic Resources (BFAR) Director Asis Perez said more than 60 fish-aggregating devices will be installed at Benham Rise starting May 30.

According to BFAR, the area is rich in marine resources.

"Maraming tuna, merong blue fin tuna, pinakamahal na isda. May galunggong, lapu-lapu, isdang bato," Perez said. 

The government is confident the new fishing ground will not be a subject of a territorial dispute in the future.

"Sinisiguro ko po sa inyo, wala ng aagaw," Perez said.

But fisherfolk group Pamalakaya said while opening of Benham Rise is a welcome development for fishermen, they have information that a fishing ban will be implemented in 10 fishing grounds.

BFAR said Pamalakaya's information is untrue, as there is no fishing ban at all in the whole country. 

Philippine ownership 

Under the United Nations Convention on the Law of the Sea (UNCLOS), Benham Rise, also known as Benham Plateau, is part of Philippine territory. 

It is the Philippines' first successful validation of a claim in accord with the 1982 Law of the Sea Convention.

Presidential spokesperson Edwin Lacierda earlier said the area is off-limits to Chinese and Taiwanese fishermen. 

"There are no Chinese poachers in Benham Rise. Also there are no reports of Taiwanese fishing activities there," he said.

"We are the only country that was allowed to fish blue fin tuna. There's a regional Pacific management body in charge of fishing in the Pacific waters," he added. - with ANC

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Goodbye 'Filipino time'! PNoy signs PH standard time law

MANILA, Philippines - Filipinos can now expect punctuality from the government workforce after President Benigno Aquino III recently signed a law setting the Philippine standard time.

Deputy Presidential Spokesperson Abigail Valte announced on Thursday that Aquino signed Republic Act 10535 on May 15, ordering government offices and agencies to synchronize all their timepieces to follow a standard time.

"Lahat po ng ahensya ng pamahalaan ay minamandatuhan na sundan na po ang Philippine Standard Time," said Valte.

The Philippine standard time will be determined by the state weather bureau Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA)..

"Sila po ang naatasan na mag-set ng network time protocol para po sa ating bansa," Valte said.

Under the new law, all government offices and agencies shall coordinate with PAGASA once a month to synchronize official timepieces and devices.

Senator Miriam Defensor-Santiago, who authored the new law, said this aims to synchronize the functions of government agencies through a single time reference.

"Filipinos are notorious for their tardiness such that being late has become synonymous to Filipino time. A definite time reference would remove inefficiencies brought about by different interpretations of time, particularly among government offices," Santiago said in an earlier press statement.

"Discrepancies in time between government agencies have led to unnecessary friction brought about by the disparate interpretation of schedules and their observance," she added.

The senator said the government will be able to provide more efficient services by ensuring that their offices open and close at the same time due to having a unified time reference system.

"It has been a perennial problem for citizens to get the most out of government services because government offices allegedly close earlier than office hours," the feisty senator also said.

The public can see the Philippine standard time on the PAGASA website (http://kidlat.pagasa.dost.gov.ph/ourtime.shtml).

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Search on for top PH farmers

MANILA, Philippines—Milagros Ong How, executive vice president of top fertilizer manufacturer and distributor Universal Harvester Inc., says she did not learn about the complex field of agriculture from books or in classrooms.

Rather, she says, she developed her knowledge with the help of the best teachers, the farmers who tirelessly work the land, and fishermen who go out to sea so that Filipinos will have food on their table.

Their knowledge and skills are invaluable, says How. Unfortunately, they do not get enough credit for the vital role that they play in Philippine society.

She says this desire to elevate the status of Filipino farmers made it easy for her to support the program of the Philippine Jaycees (JCI Philippines) to search for outstanding Filipino farmers.

The recognition program is entering its second year, and How says she and JCI Philippines want to identify more of the unsung heroes and, hopefully, encourage more Filipinos, especially the youth, to venture into agriculture.

The search for The Outstanding Farmers of the Philippines (TOFARM) was revived last year to acknowledge the important contribution of the massive agriculture sector to the economy.

The awards also seek to recognize the best among fisherfolk, animal raisers, cooperatives, farm communities, organizations, agriculture scientists, academe, local government units and public employees, as well as private firms in rural and urban areas that contribute to the agriculture sector.

This year, TOFARM Project chairman Rommel Cunanan says an award will go to the country’s best woman farmer to recognize the growing number of women who are making a difference in agriculture.

This is part of an effort to improve the awards program and encourage more people to go into farming.

“This is a really rewarding and lucrative field, and if our young are really the hope of the fatherland, as Dr. Jose Rizal said, they should go into farming to ensure the steady flow of generations who will ensure us adequate and sustainable food supply,” Cunanan says.

The nomination period for Outstanding Farmer candidates began in March and will end in September. Awarding will take place in December. Nominations may be submitted as hard copy or sent online to www.tofarm.org.

How is confident that this year’s awards will generate even more interest than last year’s event.

“TOFARM 2012 only scratched the surface in identifying farmers with best practices and extraordinary achievements. In TOFARM 2013, we want to explore new territories and discover other achievers who have not yet been recognized for their contributions to our country,” says How.

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The world’s best wines can be found in a Philippine-owned vineyard in France

In Southwest France, there’s a pinoy-owned vineyard which carries some of the world’s best wines. With a Philippine banner hoisted outside, this estate has been visited by the likes of former President Gloria Arroyo, former Cabinet member Vince Perez and banker Aurelio Montinola III.

Located in the wine epicenter of the Bordeaux region, Chateau Siran is run by winemaker and businessman Edouard Miailhe (pronounced mee-EYE). For several generations, the Miailhes ran a trading company in Manila. Today, the younger Miailhe shuttles between the Philippines and France to look after the family business.

“My father traded less in the Philippines but he kept our real estates in Binondo, Escolta and Santa Ana that were left over from the 19th century,” he says.

A fifth-generation vine grower, Miailhe took over Chateau Siran, which was acquired by his family in 1859. Chateau Siran lies in the town of Labarde in the Margaux Appellation. To the wine uninitiated, he explains, “An appellation is a piece of land which answers to certain characteristics in soil, climate and type of grapes,” says Miailhe. In the Margaux Appellation, the soil is embedded with silica and white gravels from the mountains transported from the river. The wines from this region are known for their delicate flavors.

The 88-hectare estate includes 36 hectares of vineyards which are open to the public. Visitors come to sample and buy the Margaux wines.

“When you walk around, you see the various grapes; the ages of the vines; the way we plant, grow and prune; the canopy management on how to manage the leaves and the grapes. What you see will depend on the season of your visit. The growing season is from April to October. From November to April, we prune the vines. In April, the buds start to come out,” he says.

The vineyard cultivates the grape varieties of Cabernet Sauvignon, Merlot and Cabernet Franc.

Main products

Petit-Verdot, a variety of red wine grapes, adds color and spices up the wines. Its main products are Chateau Siran which is famous for its “perfect balance of tannins, fruit and sharpness”; S de Siran, the second wine, which is noted for its roundness; and the sweet Saint-Jacques de Siran.

The chateau’s wines are locally found in Premium Wine Exchange, Wine Story, Terry’s and Santi’s.

As Vice Maître (second master) of La Commanderie de Bordeaux Manila, Miailhe invites Filipino friends over to his chateau and entertains them.

Chateau Siran offers a modern cellar, a tasting room and a large hall, both of which can be rented out for special events. To get a sweeping view of the estate, there is a terrace that overlooks the vineyards. The nuclear bunker is host to the vintages, the oldest of which dates to 1870.

Preselling event

Unique to Bordeaux is the Future Sales which runs from April 15 to June 15, before the Vinexpo or wine exposition. It is the ultimate preselling event for wines before they are bottled. The wines are priced according to what the market is willing to dole out.


CHATEAU reception hall can be booked for special events.

“When you are part of the 150 most famous brands in the world, you sell your wines in the future. You sell even if they are still in the barrels for aging. If the grapes have been harvested in October 2012, they are stored in the barrel in January 2013 for 12 months. By January 2014, I remove them, put the wines in the tank, clarify them and bottle them. The wines are sold through the wine selling system, the Bordeaux Negociants,” explains Miailhe. Negociants is a group of wholesalers who contract to buy an allotment of an estate’s harvest every year.

In April, the world’s most prominent wine writers come to Bordeaux to rate the wines. “Depending on the ratings and the market, you release the wine. You will allocate the wines to the different buyers. We have 45 buyers—some take 800 cases, some 10 or 20 cases. In two days, you release the wines for the same price and same payment conditions. This is what the buyers have to pay for what will be allocated to them. The buyers confirm and pay in six months. The wine is delivered at the end of the year,” explains Miailhe.

Most visitors stay at the charming hotels in Bordeaux City. Still there’s Chalet Siran, a cottage good for six, in the estate. Guests can dine at Miailhe’s restaurant La Gare Gourmande, a former 50-square-meter train depot in the village. Consisting of seven tables, it serves traditional French fare including poultry, magret confit and pork from the Southwest which complement the red wines.

Best-kept secret


CHATEAU Siran’s front door welcomes guests.

“Many customers are winemakers who bring their own wines,” he says. The Trip Advisor described La Gare Gourmande as the best-kept secret in Bordeaux, and gave the meal of cold pasta with salmon, roast quail with vegetables, and a warm apple strude, a thumbs up.

Then there are the tours of the neighboring subregions of Bordeaux. “If you love architecture and wine, Bordeaux (region) is the place,” says Miailhe. Médoc is famous for the châteaux, some 1,500 vineyards, the ocean, beaches and pine forests filled with animals. Saint Emilion is a World Heritage Site, famous for its Romanesque cathedrals, limestone houses and a viticulture that dates back to the Middle Ages.

Wine tours

Wine lovers will appreciate the wine tours at Sauternes and Pessac, where travelers can learn more about the nuances of Bordeaux wine in the famous chateaux such as Yquem, Rothschild, Gironde and Sancerre.

“Keep one day for the city of Bordeaux. It’s gorgeous. The new mayor cleaned it up, put in the tramway and overhauled the riverbank. It’s the second most preferred city of France. We are proud of what the mayor has achieved. It looks like Disneyland but more real,” says Miailhe.

Bordeaux underwent a beautification program, starting with the removal of soot from its Medieval churches and old buildings and a reclaimed dockland. It has been modernized with galleries, concept stores, restaurants and wine-bars.

Aside from the châteaux, visiting the markets are enough reason to travel to France. The variety of cheeses, terrines, meats and breads astounds travelers. Miailhe cites coffee, foie gras, fresh produce and the famous classified rosé from Medoc as some of the popular things to shop for. “Food is important for the French and people in the Southwest,” says Miailhe.

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PH stock index breaches 7,300 for first time in history

MANILA, Philippines — Investors loaded up on stocks of big local companies on Tuesday in the aftermath of the country’s mid-term elections, bringing the main index beyond the 7,300-mark for the first time.

The main-share Philippine Stock Exchange racked up 51.08 points or 0.7 percent to close at a new all-time high of 7,313.46, led by banking and gaming stocks. A new intra-day high was likewise hit at 7,349.95.

PSE chairman Jose Pardo said: “7,500 here we come. New highs can be expected after a credible and honest election.”

This marked the PSEi’s 30th record breakout for the year and the 91st under the Aquino administration.

“The market rallied on the back of relatively smooth elections and good first quarter earnings results so far. Top three banks — Metrobank, BPI and BDO — contributed half of the day’s PSEi gain,” said Gonzalo Ordonez, president of First Metro Securities.

Metrobank, BDO and BPI respectively surged by 3.42 percent, 2 percent and 1.46 percent. The top three banks recently reported record-high first quarter results, with strong trading gains adding to net interest earnings.

Gaming stocks Bloomberry (+2.79 percent) and Belle (+2.76 percent) were likewise among the top index gainers.

Joseph Roxas, president of local stock brokerage Eagle Equities, said this was due to discussions towards a “win-win” compromise on gaming. He said hopes for a favorable resolution on gaming taxes alongside the reaffirmation of support for candidates under the Team PNoy banner boosted the market.

Biz Buzz reported on Monday that the gaming industry was seeing the “light at the end of the tunnel” on this gaming taxation issue.

Meanwhile, a big win for Team PNoy administration candidates, particularly in the Senate, is seen as crucial for the government to pursue the reforms that have boosted investor confidence in the last three years.

Total value turnover at the market stood at P10 billion.

Despite the overall index gain, there were just as many decliners as there were advancers (81) while 50 stocks were unchanged. This was as investors focused on large-cap stocks.

Index heavyweight PLDT (+2.62 percent) also contributed to the day’s gains alongside Ayala Land Inc., Ayala Corp., SM Investments, Megaworld and URC.

Outside the index stocks, LTG, GT Capital, TransAsia and Cosco also gained in heavy volume.

On the other hand, the companies whose stocks fell in heavy volume were MPIC, Security Bank, Semirara and ICTSI.

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Manila hosts Fast & Furious 6 red carpet premiere

MANILA, Philippines — The Philippines continues to capture Hollywood’s interest as Manila plays host to the red carpet premiere of Universal Pictures’ Fast & Furious 6 at SM Mall of Asia. The event is set to gather foreign press from Asia and other cities outside of the region to promote the major Hollywood release. The film’s lead action star, Vin Diesel, along with fellow stars Michelle Rodriguez, Gina Carano and Luke Evans, producer Neal H. Moritz, and director Justin Lin will be coming to the Philippines to grace the movie event.

Manila is part of a talent world tour that includes stops in other global cities including London, Seoul, and Cabo San Lucas. This bit of good news comes on the heels of Manila receiving global exposure in 2012 as one of the main location backdrops for the Hollywood action‐thriller The Bourne Legacy.

Supported by GBX Philippines, Fast & Furious 6 continues in the tradition of thrilling fast‐paced car chases, action, and suspense that has made the movie franchise a worldwide sensation. Vin Diesel, Paul Walker and Dwayne Johnson lead the returning cast of all‐stars as the global blockbuster franchise built on speed races to its next continent. Reuniting for their most high‐stakes adventure yet, fan favorites Michelle Rodriguez, Jordana Brewster, Tyrese Gibson, Chris “Ludacris” Bridges, Sung Kang, John Ortiz, Gal Gadot, and Elsa Pataky are joined by badass series newcomers Luke Evans and Gina Carano.

Fast & Furious 6 is a United International Pictures Release through Solar Entertainment Corporation. The film will be released in theaters across the Philippines on May 24, 2013.

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