SECOND ANNIVERSARY ASSESSMENT
ARANGKADA PHILIPPINES FORUM
Realize the Potential!
2013FEBRUARY 26
RIZALBALLROOM
MAKATISHANGRI-LA
A PROJECT BY THE JOINT FOREIGN CHAMBERS OF THE PHILIPPINES
Philippine Copyright 2013
Published by:
The Arangkada Philippines Project (TAPP) The American Chamber of Commerce of the Philippines, Inc. (AmCham)
2nd Floor, Corinthian Plaza, 121 Paseo de Roxas, Makati City, Philippines
Tel. No. : +63 (2) 751-1495
Fax : +63 (2) 811-3081
E-mail : [email protected]
Website : www.arangkadaphilippines.com
All rights reserved. This assessment publication may not be reproduced in whole or in part, in any form, for commercial purposes. It is, however, an advocacy publication and its use for economic policy advocacy is highly encouraged with or without attribution.
The views expressed in the Second Anniversary Assessment are those of the experts who cooperated with The Arangkada Philippines Project administered by the American Chamber of Commerce of the Philippines, and not necessarily those of the many private and public sector sponsors listed elsewhere in the document. Some of the activities reviewed in this assessment are made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of the Second Anniversary Assessment represent the opinion of the persons who drafted the Second Anniversary Assessment as organized under The Arangkada Philippines Project administered by the American Chamber of Commerce of the Philippines and do not necessarily reflect the views of USAID or the United States Government.
2013 Arangkada Philippines Second Anniversary Forum: Assessment of Year 2012
Printing and color separation by : Corces Printing
TABLE OF CONTENTS
1 Part 1: Growing Too Slow
8 Part 2: Becoming More Competitive
Part 3: Big Winner Sectors
13 Agribusiness
22 Business Process Outsourcing
36 Creative Industries
44 Infrastructure Policy
54 Airports
62 Power
70 Roads & Rails
78 Seaports
87 Telecommunications
93 Water
100 Manufacturing
109 Logistics
118 Mining
129 Tourism, Medical Travel, & Retirement
Part 4: General Business Environment
142 Business Costs
150 Environment & Natural Disasters
159 Foreign Equity & Professionals
165 Governance
173 Judicial
180 Labor
188 Legislation
195 Local Governance
203 Macroeconomic Policy
216 Security
225 Social Services Education
234 Health & Population
240 Poverty
LIST OF ABBREVIATIONS
3G Third Generation
4Ps Pantawid Pamilyang Pilipino Program (conditional cash transfer program)
ACT Alcohol, Cigarettes, and Tobacco
ADB Asian Development Bank
AFTA ASEAN Free Trade Area
AO Administrative Order
ARMM Autonomous Region of Muslim Mindanao
ARTA Anti-Red Tape Act
ARTFF Anti-Red Tape Task Force
ASEAN Association of Southeast Asian Nations
ASEAN-6 Indonesia, Philippines, Malaysia, Singapore, Thailand, and Vietnam
ASTI Advance Science and Technology Institute
BEST Basic English Skills Training
BBC British Broadcasting Corporation
BI Bureau of Immigration
BIR Bureau of Internal Revenue
BOC Bureau of Customs
BOI Board of Investments
BOT Build-Operate-Transfer
BPAP Business Processing Association of the Philippines
BLPS Business Process and Licensing System
BPO Business Process Outsourcing
BSP Bangko Sentral ng Pilipinas
CA Court of Appeals
CAAP Civil Aviation Authority of the Philippines
CAO Customs Administrative Order
CALA Cavite-Laguna
CALABARZON Cavite, Laguna, Batangas, Rizal, and Quezon
CARP Comprehensive Agrarian Reform Program
CCT Common Carriers Tax
CEO Chief Executive Officer
CECP Creative Economies Council of the Philippines
CHARDO Chassis RORO
CHED Commission on Higher Education
CICT Commission on Information and Communications Technology
CIDA Canadian International Development Agency
CIQ Customs, Immigration and Quarantine
CITEM Center for International Trade Expositions and Missions
CMO CHED Memorandum Order
CNN Cable News Network
COA Commission on Audit
COE Centers of Excellence
CSC Civil Service Commission
CTMA Customs and Tariff Modernization Act
DBM Department of Budget and Management
DCP Design Center of the Philippines
DENR Department of Environment and Natural Resources
DepEd Department of Education
DICT Department of Information and Communications Technology
DILG Department of Interior and Local Government
DO Department Order
DOE Department of Energy
DOF Department of Finance
DOH Department of Health
DOJ Department of Justice
DOLE Department of Labor and Employment
DOST Department of Science and Technology
DOST-SEI DOST Science Education Institute
DOT Department of Tourism
DOTC Department of Transportation and Communications
DPWH Department of Public Works and Highways
DSWD Department of Social Welfare and Development
DTI Department of Trade and Industry
E2M Electronic-to-Mobile
e Electronic; Estimate
e-AdEPT Electronic Advanced English Pre-employment Training
ECCP uropean Chamber of Commerce of the Philippines
EITI Extractive Industries Transparency Initiative
EP Exploration Permit
EPIRA Electric Power Industry Reform Act
ERC Energy Regulatory Commission
EU European Union
EVAT Expanded Value Added Tax
f Forecast
FDA Food and Drug Administration
FDI Foreign Direct Investment
FINL Foreign Investment Negative List
FOI Freedom of Information
FPI Federation of Philippine Industries
FTA Free Trade Agreement
GCAT Global Competitiveness Assessment Tool
GCG Governance Commission for GOCCs
GDP Gross Domestic Product
GILAS Gearing up Internet Literacy and Access for Students
GPBT Gross Philippine Billings Tax
GPH Government of the Philippines
GPS Global Positioning System
GOCC Government-Owned and Controlled Corporation
GSIS Government Service Insurance System
HDM-4 Highway Development and Management Model
HIM Health Information Management
HLURB Housing and Land Use Regulatory Board
HR Human Resources
HUC Highly-Urbanized Cities
IACWS Inter-Agency Committee on the Water Sector
ICC Investment Coordination Committee
ICT Information and Communications Technology
ICTO Information and Communications Technology Office
IFC International Finance Corporation
IMD International Institute for Management Development
INFRACOM Infrastructure Committee
IOR Importer of Record
IP Intellectual Property
IPA Investment Promotion Agencies
IPR Intellectual Property Rights
IRCAM Integrated Risk Communication, Assessment, and Management
IRR Implementing Rules and Regulations
IRRI International Rice Research Institute
IT Information Technology
JBIC Japan Bank for International Cooperation
JDR Judicial Dispute Resolution
JFC Joint Foreign Chambers of the Philippines
JICA Japan International Cooperation Agency
JMC Joint Memorandum Circular
JV Joint Venture
JVA Joint Venture Agreement
K-12 Kindergarten to Grade 12
LBP Land Bank of the Philippines
LEDAC Legislative Executive Development Advisory Council
LGU Local Government Units
LNG Liquefied Natural Gas
LRT Light Rail Transit
LRTA Light Rail Transit Authority
MARINA Maritime Industry Authority
MAP Management Association of the Philippines
MCC Millennium Challenge Corporation
MDC Mineral Development Council
MGB Mines and Geosciences Bureau
MIAA Manila International Airport Authority
MICC Mining Industry Coordinating Council
MMDA Metropolitan Manila Development Authority
MRT Metro Rail Transit
MWSS Metropolitan Waterworks and Sewerage System
NAIA Ninoy Aquino International Airport
NCC National Competitiveness Council
NCIP National Commission on Indigenous Peoples
NCR National Capital Region
NDP National Design Policy
NEDA National Economic and Development
NGCP National Grid Corporation of the Philippine
NGO Non-Governmental Organization
NLES North Luzon Expressway
NLRC National Labor Relations Commission
No. Number
NPA New Peoples Army
NPAC National Port Advisory Council
NSSMP National Sewerage and Sanitation Management Program
NTC National Telecommunications Commission
NWC New Wave City
NWRB National Water Resources Board
NWRMO National Water Resources Management Office
ODA Official Development Assistance
OFW Overseas Filipino Worker
OJT On-the-Job Training
OMD Office of the Ombudsman
p Projection
PA Philippine Army
PAGASA Philippine Atmospheric, Geophysical, and Astronomical Services
PBG Philippine Business Group
PC Personal Computer
PCAARRD Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development
PCCC Philippine Climate Change Commission
PCI Per Capita Income
PD Presidential Decree
PDDCP Product Development and Design Center of the Philippines
PDEA Philippine Drug Enforcement Agency
PDP Philippine Development Plan
PEZA Philippine Economi