Japan Terra Motors launches electric tuk-tuk for the Philippines 100,000 units in 2016

Terra Motors' e-tricycle can carry six and travel 31 miles per charge. (Credit: Terra Motors)

"E-trikes" are part of a movement to cut CO2 emissions and fuel costs in Asian cities. Manila wants 100,000 by 2016.

Tuk-tuks are a common way to get around in many Asian cities, but they contribute to urban pollution and high fuel costs.

Tokyo-based startup Terra Motors wants to put more non-polluting vehicles on the streets with an electric tuk-tuk unveiled this week for the Philippines.

The blue and white "e-tricycle" is powered by a lithium-ion battery and can carry six people including the driver. It's just under 11 feet long and is steered with handlebars.

It can travel some 31 miles per 2-hour charge, according to the firm, which is hoping to become the world's top electric tuk-tuk maker.

"There is no single company in Asia that mass-produces electric bikes or tricycles," president Toru Tokushige was quoted as saying by AFP.

"I think it could have a big impact if a Japanese company is the pioneer in the market with products of such a futuristic design."

The tuk-tuks will go on sale in fall 2013 for about $6,300 apiece.

Terra Motors is gunning for a Philippine government plan, funded by a $300 million Asian Development Bank loan, to replace 100,000 gas-powered tricycle taxis with "e-trikes" by 2016.

The average tuk-tuk driver in the Philippines earns less than $10 a day, but e-trikes will save him $5 a day in fuel costs, according to the bank. The trikes will be introduced to Manila and other cities under a lease-to-own system.

"Replacing 100,000 gasoline-powered trikes will enable the Philippine government to save more than $100 million a year in avoided fuel imports, while decreasing annual CO2 emissions by about 260,000 tons," the bank said in a release. http://cnet.co/172FfHx

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Philippines, Brazil sign pact on sports cooperation

Brazilia

THE Philippines and Brazil have inked a memorandum of understanding (MOU) that will improve sports cooperation between the two countries.

The Department of Foreign Affairs said that Philippine Sports Commission (PSC) Chairman Ricardo Garcia and the National Secretary of Brazil's Ministry of Sports, Toninho Nascimento, signed a MOU on Sports Cooperation at the Ministry of Sport in Brasilia, Brazil on March 22.

"The MOU between the PSC and Brazil's Ministry of Sport will open doors to cooperation between both countries in the area of sports," Garcia said.

The MOU will provide the Philippines and Brazil with a framework for sports cooperation through the exchange of expertise in areas such as institutional cooperation; science and technology applied to sports; sports medicine; combating doping; using sports as a tool for social inclusion; and training of sports specialists and practitioners.

The signing of the MOU was preceded by a meeting between the Philippine delegation and Brazil's Ministry of Sports and Ministry of External Relations.

During the meeting both sides discussed ways by which the MOU can be implemented. A key aspect of the cooperation program will be in the form of technical support from Brazil, particularly in the areas of football and beach volleyball. The initial step will involve assessment and consultations by both sides in order to identify needs and requirements.

"We need to know first what needs to be done so that we can develop a specific project or program in that area. Once we have developed a specific proposal or program, we then proceed to implementation in partnership with our Brazilian counterparts," Garcia said.

"Our collaboration with Brazil will focus in two areas, high performance training and using sports as a tool for social inclusion. We would like to concentrate these efforts at the youth levels and the grassroots. Brazil and the Philippines both share the view that sports is a powerful tool in nation-building and an effective mechanism in addressing social issues such as criminality, drugs, gangs, homelessness and out of school youths," he added. (SDR/Sunnex)

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Rating Agencies 'Behind the Curve' on Philippines - the fastest growing economies in ASEAN

One of Southeast Asia's fastest growing economies - the Philippines - got a ratings upgrade last year, but its finance secretary Cesar Purisima told CNBC the agencies were still "behind the curve" and the Philippines deserved a higher credit rating.

All three agencies Fitch, Moody's Investors Service and Standard & Poor's have kept the Philippines at one notch below the coveted investment grade. The latter two agencies upgraded the rating to that level only last year.

"The market rates are two notches above investment grade already, so we're borrowing at a much cheaper cost than our credit rating. So I think they [the credit rating agencies] are way behind the curve," said Cesar Purisima.

The Southeast Asian economy has benefitted from strong growth in recent years. It grew by 6.6 percent in 2012 and the government is targeting similar growth in 2013.

Answering a question on why the Philippines was "obsessively" pursuing a credit ratings upgrade Purisima said: "No it is not obsessive. It's just making sure that they recognize what is the proper rating of the Philippines."

The finance secretary also said he was planning to develop the local bond market by trying to encourage more corporates to borrow from the market rather than from banks.

"Economies have cycles. And in a down cycle if the majority of borrowing is through banks, then you risk creating problems in the banking system. But if you have a big share in the bond market then it is just asset prices," he said.

Purisima said Philippines' turnaround has been fueled by a transformation in the quality of governance.

"Good governance equals good economics. Basically that is what held back the Philippines in the past - bad governance," he said.

However, unemployment levels remain a sticking point for the growing economy. The Philippines' unemployment rate increased to 7.1 percent in the final quarter of 2012 from 6.8 percent in the third quarter.

The government is directing resources into the tourism, agriculture, business process outsourcing (BPO) and infrastructure sectors to create more jobs, said Purisima.

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Philippines cited as Standout - 74% led over all ASEAN countries

Philippines cited as standout

THE PHILIPPINES is poised to be the standout in Southeast Asia yet again, leading the pack in terms of economic growth and investor confidence, Standard Chartered Bank has projected.

In a survey of more than 900 investors in the Association of Southeast Asian Nations, Manila emerged as the frontrunner among other key cities in the region, the British banking giant said in a report yesterday.

"The Philippines was the standout country in terms of the strength of on-the-ground sentiment… We expect the Philippines to see stronger investment growth this year, sustaining the strong momentum from 2012," Standard Chartered said.

Some 74% of investor-respondents in Manila expect to see better business prospects in 2013 compared to the year before, dwarfing scores in Jakarta (46%), Bangkok (44%), Singapore (44%) and Kuala Lumpur (41%).

The survey also found that investors in Manila are most worried about the European, American and Chinese markets this year. No one cited the Philippines as a concern. In comparison, 47% of investors in Kuala Lumpur said their own country worried them, followed by 43% in Singapore, 35% in Jakarta and 19% in Bangkok.

The peso is expected to get stronger, with 86% of investors in Manila saying they expect to see their currency appreciating against the dollar in 2013. Only 67% of investors in Bangkok, 52% in Kuala Lumpur, 50% in Singapore and 35% in Jakarta thought the same.

"We are optimistic that the Philippines will outperform the region and enjoy another year of strong growth momentum in 2013," Standard Chartered said.

It forecast that the country could grow by 5.8% this year and 6.1% next year, beating its 10-year average of 5.2%. The estimates, however, fall below the government targets of 6-7% and 6.5-7.5%, respectively. This follows the banner performance in 2012 when the gross domestic product (GDP) growth hit a stunning 6.6%, beating market expectations and the official goal of 5-6%.

According to Standard Chartered, the economy will likely be driven by domestic consumption yet again. Public and private investment should pick up too but exports could remain weak, acting as a "negative but limited drag on growth."

It also expected further progress in the public-private partnership (PPP) program, after eight projects -- mainly in infrastructure, transport and power -- were rolled out last year and others lined up for launch this year.

PEACE TO PROVIDE LIFT

Another upside to growth is the peace deal with the Moro Islamic Liberation Front, it added. Citing its studies, the peace deal could add 0.1 percentage point to GDP in its first year of implementation, increasing to 0.3 percentage point by the fifth.

Standard Chartered also expects the Bangko Sentral ng Pilipinas (BSP) to keep policy rates on hold for now, then raise it by as much as 50 basis points by yearend. Rates could then be kept steady at that level next year.

Policy rates -- the benchmark for interest rates -- are at record lows of 3.5% and 5.5% for overnight borrowing and lending, respectively.

The rate hike could be prompted by an increase in the pace of inflation, it said. Higher energy and food prices, robust consumer spending and base effects could combine to push up inflation rate to 3.6% this year and 4% in 2014. These are well within the BSP target of 3-5% but much higher than the forecast full-year averages of 3% and 3.2% for 2013 and 2014, respectively.

The peso should remain strong, the bank said, underpinned by strong economic fundamentals. The local currency could climb to P39 against the dollar this year and P38 the year after.

The peso appreciated by some 6.8% against the greenback in 2012 -- one of the strongest performers in the region -- closing at P41.05 on the last trading day. So far this year, it has traded within the P40-to-a-dollar territory, much stronger than the P42-45 exchange rate assumed by the BSP.

Lastly, Standard Chartered said that reduction of the fiscal deficit is on track, especially with the recent increase in excise taxes on liquor and cigarettes, propelling the Philippines to bag its first ever investment grade credit rating.

The bank anticipates the deficit to fall to 1.8% of GDP in 2013 and 1.6% in 2014 -- against the cap of 2% for both years -- roughly equivalent to P238 billion and P266.2 billion, respectively.

"We expect at least two of the three main credit rating agencies to upgrade the Philippines to investment grade by end-2013…" it said.

"The case for investment grade is supported by a number of factors, including a resilient economy, a current account surplus, stable fiscal policy and the narrowing of the budget deficit."

The Philippines currently stands at one notch below investment grade with the three major credit rating agencies. It has a Ba1 rating with Moody's Investors Service and a BB+ rating with Fitch Ratings and Standard & Poor's. –

Read more in Business World Online 

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WEF lists Philippines as one of tourism sector's “rising stars”

(Updated 11:54 a.m.) The World Economic Forum reported on Thursday that the Philippines now one of the world's "rising stars" and the most improved Asian nation in terms of travel and tourism.

The Philippines "is the most improved country in the region," WEF said in its "Travel and Competitiveness" report, noting the country's "comparative strengths" in natural resources, price competitiveness, and a "very strong" prioritization of the sector.

In the WEF ranking of 140 countries, the Philippines placed 82, up from 94 in the WEF 2011 list that  covered 139 countries.

"Government spending on the sector as a percentage of GDP (gross domestic product) is now first in the world, and tourism marketing and branding campaigns are seen to be increasingly effective," the WEF report read, referring to the Aquino administration's tourism initiatives and branding—"It's more fun in the Philippines"—campaign.  

"In addition, the country has been ensuring that several aspects of its policy rules and regulations regime are conducive to the development of the... sector," it added.

WEF listed better protection of property rights, more openness toward foreign investments, and few visa requirements for foreign visitors as areas where the Philippines fared well in terms of policy.

In a statement on the report's release, WEF called the Philippines along with Panama—whose ranking jumped to 37 from 52—as the world's "rising stars" due to " policy improvements supporting the [travel and tourism] industry."

The report noted the Philippines should improve on other areas to further raise its ranking.

"However, other areas—such as the difficulty of starting a business in the country, in both cost and length of the process—remain a challenge," the report  read.

"Moreover, safety and security concerns; inadequate health and hygiene; and underdeveloped ground transport, tourism, and ICT (information and communications technology) infrastructure are all holding back the potential of the economy's competitiveness," it added.

Last month, Tourism Secretary Ramon Jimenez said his department is targeting a bigger contribution of  tourism to the GDP and partnering with other agencies in improving travel infrastructure and policies.

The government wants to attract 10 million foreign tourists in the country. Last year, there were 4.3 million foreigners who traveled to the Philippines.

The WEF report, meanwhile, noted that Switzerland remained as the world's most competitive travel and tourism destination in 2013.

Germany maintained its second best ranking, while Austria inched up to the third spot from fourth place.

Conceived in 1971 by European business leaders, WEF is an independent international organization that aims to engage business, political, academic and governments to shape global, regional and industry agendas.

The Travel and Tourism Competitiveness Report 2013 assessed 140 economies based on the extent of  factors and policies in place to develop and make the sector more attractive. — Siegfrid Alegado/VS,

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OFWs urged: Come home more often, join FB, invite all

Rob Schneider- Hollywood Actor said: To be a Filipino, It's just fun anywhere 

Add a few more Facebook friends and earn the title "new tourism ambassadors" in the process.

The catchy campaign come-on was pitched by Tourism Secretary Ramon Jimenez Jr., who urged more than 9 million overseas Filipinos to "go into the social network and begin to connect with everyone else in the world."

"No matter how many kinds of Filipinos are in the world today—Filipino-Americans, Filipino-Chinese, Filipino-Italians, Filipino-Japanese, Filipino-Singaporeans, Filipino-French, Filipino-Arabs, Filipino-Germans, Filipino-Canadians and Filipino-Swedes, among others—there will always be only one type of fun. It's called Filipino fun," Jimenez said in a speech during the closing program of the Second Global Summit of Filipinos in the Diaspora on Feb. 27 in a Makati City hotel.

He said that kind of fun comes from an openness, which happens to be a common Filipino trait.

"To build a nation, one can only begin with the most basic of all ingredients—national pride. Your self-esteem, your confidence is what will make people sit up and take notice. They will praise you for your hard work, your perseverance, your intelligence, your discipline," he said.

"But if you are great fun, if you are confident in yourself, they will follow you in the Philippines," he added.

Come home

In his remarks, Jimenez also urged overseas Filipinos to come home to the Philippines more often.

Last year, a record 4.27 million tourists visited the country, a 9.07-percent increase over the 3.92 million visitors in 2011.

Jimenez expressed confidence that the 2012 figures could be surpassed this year with the help of the Filipino diaspora, which he said was "not just a spreading out of Filipinos."

"Because if all we did was to spread out, it could be the beginning of a separation, which is what makes this gathering very crucial, some important and so necessary," he said.

Common view

Jimenez said the tourism slogan "It's more fun in the Philippines" is an invitation to the world that Filipinos share more than a language.

"We share a common view of our world. We remind each other of the things that matter most—family, friendship and God," he added.

For his part, Foreign Secretary Albert del Rosario said the government was encouraging the active participation of overseas Filipinos and their involvement in national issues.

"Our foreign service posts are partners of the Commission on Filipinos Overseas  in communicating with and mobilizing overseas Filipinos to participate in various programs," including, among others, the Business Advisory Circle, which assists Philippine nationals abroad in setting up business partnerships in the country; the Alay Dunong program, which systematizes the skills and technology exchange between overseas Filipinos and the Philippines; and the Return and Reintegration Program, which assists balikbayans to successfully reintegrate into local life.

Proactive approach

Del Rosario said the country's embassies and consulates abroad were also taking a proactive approach to urge overseas Filipinos to join the country's overseas absentee voting and dual citizenship programs.

The government also puts the welfare and protection of the rights of Filipinos abroad in its top priorities, he added.

"In cooperation with other government agencies and international organizations, the DFA (Department of Foreign Affairs) has repatriated a total of 14,203 OFWs (overseas Filipino workers) from areas affected by civil strife or natural disasters, from 2011 up to the present. In particular, a total of 3,457 Filipinos were repatriated from war-torn Syria since the uprising began in 2011. Despite the ongoing crisis in the middle eastern country, the Philippine Embassy in Damascus continues its operations in order to evacuate the OFWs who remain there and ensure their safety and well-being," he reported.

Del Rosario said during the past eight years, 746 Filipino seafarers who fell victims to piracy had been released and repatriated through the joint efforts of the country's embassies abroad, manning agencies and the sailors' principals.

Last year, 122 Filipino victims of human trafficking and illegal recruitment were assisted by the DFA, he said.

In 2011, a total of 28 OFWs facing the death penalty were provided legal assistance by the agency. Last year, at least 40 of 130 OFWs with death penalty cases were commuted to life or fixed imprisonment, he said.

To further intensify efforts to promote and protect the rights of Filipino migrant workers, the DFA head said the Philippines had adopted a new qualification framework containing sets of training regulations for Filipinos that prescribe competency standards for various qualifications.

"The country also ratified in August 2012 the International Labor Convention (ILO) No. 189 on decent work for household service workers," said Del Rosario, noting the Philippines was the "first Asian nation to commit itself to the respect and implementation of the new ILO labor standard that was adopted on June 16, 2011, during the ILO conference in Geneva."

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