Tuesday, November 25, 2014

Signals of success


New network testing application to make setting up cell sites easy, cheap and quick 

Thai start-up company Freewill FX has launched a 3G/4G network testing application that enables operators to verify a mobile phone mast's signal at a cost of up to 10 times lower than traditional testing... 

Developed by a team of six developers, the network testing application, called Azenqos, works on the Android platform — the first time such an application has been adapted and adopted for smartphones.... 

It also provides deep-level 3G/4G protocol data that the operator needs to analyse and fix technical issues. 

The team has worked with Ericsson Thailand who implemented the telecommunications network. Azenqos has also been recommended to Ericsson India. 

The evolution of the application goes back to 2007, when the Freewill FX team developed the testing tools for AIS to gauge the signal between the client and mast using the Symbian operating system. The... 
As technology became more open, the team began to study Android and the next-generation mobile technologies of Qualcomm programmes to consider ways in further optimising networks. The Azenqos network testing... 

Don Plooksawasdi, business development manager of Azenqos, explained that a few years ago, 3G/4G testing tools were dominated by vendors from US, Europe and South Korea, all of which were expensive and... 

"They don't really answer the challenges we have in this region, that is, how to test a wide swathe of area with relatively unskilled technicians and affordable test tools," said Don. 

He noted that Azenqos helps address these problems by providing comparable 3G/4G testing applications that can run on cheap local phones. It is very easy to use and highly automated to a degree that users... 

In order for the operator to analyse certain technical problems they need access to more information than just a signal bar on a phone; they need deep signalling information, protocols and radio signals... 

Azenqos can access that information and display it for the engineer so they can analyse and fix the problem. 

"The ability to access the chipset is what makes our application unique. We are the only company in the Asean Economic Community [AEC] to do so," he said, noting that the application is for an off-the-shelf... 

India has already adopted the application in a significant way and subsequently cut a great deal of cost, while also helping utilise the country's technicians in a much more efficient way. Currently, all... 

In Africa, the application has been deployed in South Africa, Gabon and Ghana, with a trial run in Zimbabwe. The company is also in discussion with operators in Vietnam, Indonesia, Chile and Nigeria. 

"India and South Africa share a similar challenge, as they are large countries with not so much money, but they need a testing system for a huge area that supports a great deal of users. Both lack technical... 

The team plans to expand into the aforementioned regions in the near future and is currently looking for investors that can take the intellectual property forward 

This model seems to work in many parts in the world, not just in this part of Asia. 

"We hope that our successful project with AIS will allow us to expand into the AEC and neighbouring countries," said Don. 

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Friday, November 21, 2014

Doing business in India to get easy,registration in just a day

Doing business in India to get easy, registration in just a day




















During the launch of 'Make in India' campaign, PM Narendra Modi had announced that his government would take steps to bring the country’s ranking on the "Ease of doing business” index among the top 50. (File photo)

NEW DELHI: In order to make India a better place to do business, the government is working to cut down the time forregistering a business from 27 days to a single day. Towards this end, it has readied a raft of measures, such as, single registration for all labour laws, overhaul of tax systems, reduction in the number of permits required, easing up property registration, quick electricity connection and property registration - measures that are expected to make the country a friendlier investment destination.

Currently, India has the reputation of being a notoriously difficult place to do business. According to The World Bank's "Ease of doing business" index, India ranked 134 out of 189 countries in 2014, behind China (ranked 96) and behind neighbours Pakistani (110) and Bangladesh (130). During the launch of the 'Make in India' campaign, Narendra Modi had announced that his government would take steps to bring the country's ranking among the top 50.

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Indonesia wants more foreign investors in manufacturing

JAKARTA – Indonesia’s investment authority wants to attract more foreign investment into manufacturing and other value-added industries to wean the economy off the volatile resources sector, its chairman said.
A series of rules introduced this year that are aimed at giving the government more revenues from Indonesia’s key resource sector have deterred foreign direct investment, as has political uncertainty as Indonesians voted for a new president, who is due to take office in October.
Mr Mahendra Siregar, chairman of the Indonesia Investment Coordinating Board, told Reuters he expects foreign direct investment to grow 15 per cent this year and around 18 per cent in 2015, a slowdown from the 22 per cent growth in 2013.
Mr Siregar said he expected some of this investment to come from companies in the consumer and manufacturing sectors in several countries including Japan, South Korea and China as they had expressed interest in investing in Southeast Asia’s largest economy.
He declined to give details. Companies that have so far announced plans to invest in Indonesia include Samsung Electronics, Philippine fast food chain Jollibee Foods and Thai green tea maker Ichitan Group.
Taiwan’s Foxconn Technology Group, a major supplier for Apple, is also considering a US$1 billion (S$1.25 billion) manufacturing project in Indonesia.
“There’s no sustainability (in FDI flow) if we have to, on and on again, face the boom-and-bust growth of the resources or commodities sector,” Mr Siregar said.
“That’s why for us, it’s important to see value-added processing activities also taking place in Indonesia,” he added.
Investor sentiment has since improved after Jakarta governor Joko Widodo was elected president, but FDI growth is likely to pick up slowly as the current parliament and the government will remain seated until October, when Mr Widodo’s new administration takes over.
Mr Siregar said the investment board would recommend to the new government introducing tax incentives for foreign investors to develop new sources of energy such as geothermal, hydropower and biofuels due to the high costs.
It will also propose setting up a “one stop unit” to reduce overlapping bureaucracy and cut the time it takes to get an investment permit to 4 months from more than a year now, he added.

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Monday, November 17, 2014

Word Bank Says Will Fund IT Application In Agriculture

The World Bank (WB) will fund US$200-250 million to support the application of information technology (IT) in agricultural development of Vietnam, Victoria Kwakwa, Country Director of the WB in Vietnam, said on October 30.
So far, the WB has funded around US$100 million for the IT application in Vietnam’s agriculture, Kwakwa told the Daily on the sidelines of the closing session of the Asian-Oceanian Computing Industry Organization information and communications technology, or the ASOCIO ICT summit.
The global lender has supported Vietnam to apply IT in agro and aquatic development, and deploy the information system for the agriculture sector to raise output.
Speaking at the session in Hanoi on October 30, Kwakwa said agriculture is a key sector that has helped Vietnam build a successful economy in the past two decades.
Therefore, the country should improve output and efficiency of the sector, and IT can help do that.
IT will play a major part in agricultural restructuring in Vietnam and help the sector develop to a higher level, she said.
Le Quoc Doanh, Deputy Minister of Agriculture and Rural Development, said agriculture is being restructured to raise its output and competitive capacity, and IT application is important for Vietnam to reach the goal.
Pham Kim Son, head of the Institute of Policy and Strategy for Agriculture and Rural Development, said Vietnam’s economy depends much on agriculture, and developing agriculture means developing the country’s economy.
Since 2010 to date, Vietnam has led the world in exporting some agricultural products and if agricultural restructuring goes along with the application of IT, the country will see some breakthroughs in the future, Son said.
Deputy Prime Minister Vu Duc Dam told the event that IT brings more opportunities for farmers and Vietnam will lose those chances if it does not enhance the application of IT in agricultural development. – Saigontimes
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Palm oil import: focus gradually shifting from Malaysia to Indonesia

The import of palm oil is gradually shifting from Malaysia to Indonesia where import of the said product has surged to 68 per cent of the total imports during last six months under Indonesia-Pakistan Preferential Trade Agreement (IPPTA). Industry sources told Business Recorder here on Tuesday that keeping in view the import potential of Palm Oil, Malaysia signed Preferential Trade Agreement (PTA) with Pakistan namely Malaysia Pakistan Closer Economic Partnership (MPCEPA) with 15% Margin of Preference (MoP) in customs duty. 

Resultantly, the Malaysian Palm Oil import to Pakistan has touched 1.9 Million Metric Tons ie 95% of total imports. The imports from Malaysia remained persistent till end of 2012, when an Indonesia-Pakistan Preferential Trade Agreement (IPPTA) with similar Margin of Preference was also inked. Consequently, the major shift in favour of Indonesia was observed and as of now the imports of palm oil products from Indonesia surged to 68 percent whereas share of Malaysia stood at 32 percent. 

Experts also said that although ghee and cooking oil industry import palm oil to the tune of US $1.6-1.8 billion per annum, but the exports from Pakistan could not increase significantly despite the fact that 15% Margin of Preference (MOP) was granted by both countries to Pakistani exporters of Rice, Sea-food, made up textile articles, cotton yarn, man-made filament and yarn in addition to many other tariff lines and even on trade in services and Economic Co-operation. Despite the fact that Malaysia and Indonesia has offered MoP wide range of items to Pakistan but still cumulative exports are struggling around US $430 per annum. The huge trade gap is indeed cause of great concern for the Ministry of Commerce in general and Pakistani industry in particular. The FPCCI and Pakistan-Malaysia and Pakistan-Indonesia Joint Business Councils can play effective role in reducing the trade imbalance. 

The importers of palm oil has provided an exceptional opportunity for Pakistani export-oriented industry by arranging 15% MoP, if still exports do not grow with this incentive then re-visiting the National Industrial Policy is recommended. Recently, Pakistan Vanaspati Manufacturers Association (PVMA) delegation visited Malaysia to discuss the price & trade barriers and allied issues causing declining trend of palm oil imports to Pakistan on the side-lines of international price out-look conference held in Kuala Lumpur. 

The PVMA delegation led by Sheikh Abdul Razzak arranged a meeting with representatives of Palm Oil Refiners Association of Malaysia (PORAM), Malaysian Palm Oil Council (MPOC) and Government of Malaysia subsidiaries such as Malaysian Palm Oil Board (MPOB) and Ministry of Plantation, Industries and Commodities (MPIC). For the duration of talks, it was resolved to address key issues in sequence to promote bilateral trade specially export of Palm Oil to Pakistan. The important issues are system abuse by local legal firm with respect to out-turn weight discrepancy, frequency of shipping service between Pakistan and Malaysia, revival of Palm Oil Credit Payment Arrangement (POCPA) and export duty imposed by Malaysia on crude palm oil. 

They added that the ghee/cooking oil industry of Pakistan is performing extra-ordinarily by fulfilling 100% national requirement of around 3.2 Million Metric Tons, besides contributing Rs 100 Billion to national exchequer directly and indirectly in the shape of duty, taxes and other levies. The existing 4.5 Million Metric Tons of installed production capacity can be utilised by enhancing exports to Afghanistan and Central Asian Republics provided the government should remove restrictive measures on export of products. 

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Genetically-modified corn allowed in Vietnam

The first four genetically-modified (GM) maize varieties have been licensed for both human consumption and as animal feed in Vietnam.
The Vietnamese Ministry of Agriculture and Rural Development (MARD) granted licenses to four GM corn varieties, including Bt 11 and MIR162 developed by Syngenta Vietnam Co., Ltd as well as MON 89034 and NK603 by Monsanto’s Dekalb Vietnam Co., Ltd.
Of these patented GMO products, MON 89034, NK603 and Bt 11 are insect-resistant, while NK603 is designed to be resistant to the herbicide glyphosate, and was first brought to the US market in the 70's under the trade name Roundup Ready.
MARD has granted certifications to these four GM maize varieties after careful consideration and the approval of the country’s Council of Food Safety for GM Food and Animal Feed.
These are first GMO products to be approved for both human consumption and animal feed in the country. The licensing agencies say they have determined to their satisfaction that the products have no harmful health effects.
The licensing is considered a first step in the creation of a legal framework regarding GM foods, and the government is in the process of speeding up the application of such technologies in agriculture. This is in line with the plan for sustainable agriculture through 2020.
The hope is that the introduction of GM products will, not only foster sustainable agriculture in a country that is still largely rural, but also increase the quality of produce as well as the incomes of farmers.
In addition, the new policy is aimed at reducing corn imports, which reach into the billions of USD per year.  
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Tuesday, November 11, 2014

Lessons from Asia SME Finance Monitor

The Asian Development Bank recently released the results of its review of the SME sector and the state of finance in 14 countries from the five ADB regions of Central Asia, East Asia, South Asia, Southeast Asia and the Pacific through the inaugural volume of the annual Asia SME Finance Monitor 2013. While snippets of said report have been released and published, this writer is not sure if Philippine policymakers and SME finance players have fully digested how said report should wake up the Philippine system especially when viewed in the light of the forthcoming Asean integration in 2015. Like it or not, the picture it paints is that of the country being relatively unprepared compared to our Asean counterparts.
Measly growth
ASM: “SME loans made up 25 percent of total bank lending in Asia and the Pacific on average in 2012, down from 27 percent in 2011. SME loans grew at 10 percent year-on-year in 2012, down from 19 percent in 2011.”
Comment: Philippine SME loans only make up 12 percent of total banking sector lending portfolio. The total bank lending in the country has grown tremendously in the past years, suggesting solid growth prospects for the economy. Unfortunately, bank lending to SMEs has not kept in pace. In a 2012 review by this writer, the 10-year loan portfolio growth of the Philippine banking sector was registered at 121.7 percent. In the same period, small enterprise lending growth was a measly 10.6 percent, even as medium enterprise lending growth registered a more respectable 77.5 percent.
Only average
ASM: “SMEs are the backbone of the economies of Asia, accounting for 98 percent of all enterprises and 66 percent of the national labor force on average during 2007-2012.”
Comment: Philippine statistics show that micro, small and medium enterprises constitute 99.6 percent of the total number of registered establishments. Total gross value added is 35.7 percent and the labor force contributes 65 percent. On this metric, we are situated in the average pool.
No metric available
ASM: “While the lending to SMEs is relatively large in the Republic of Korea (38.9 percent of GDP in 2012), Thailand (33.7 percent of GDP in the second quarter of 2013) and Malaysia (20.1 percent of GDP in 2012), it is still small in Cambodia (7.8 percent in the third quarter of 2013), Bangladesh (6.7 percent in 2012), Indonesia (6.4 percent in 2012), and Kazakhstan (4.7 percent in 2012). The ratio of SME loans to GDP is not available in other ASM countries.”
Comment: Interestingly, there are no gathered statistics on this particular metric for the Philippines. But if the percentage share of SME lending to total bank lending is any gauge, we expect to be situated in the single-digit percent of SME lending to GDP category.
Low accessibility
ASM: “Nationally, there are two levels of SME access to bank lending in participating ASM countries: (i) relatively high accessibility, where the provision of SME credit stands at around 30 percent to 40 percent of total loan provision, as in the PRC, the Republic of Korea, Solomon Islands, and Thailand; and (ii) low accessibility, where the provision of SME credit is less than 20 percent of total loan provision, as in Cambodia, Indonesia, and Kazakhstan. Other ASM countries have no similar statistics.”
Comment: On this score, while the data was not captured by the ADB review, there is evidence to suggest that the Philippines belong to countries in the low accessibility range. This is despite RA 9501, which requires banks to allocate 10 percent of their loan portfolio to SMEs. The micro and small enterprises are even entitled to 8 percent, and yet the compliance here is below the mandate with the big banks, in particular, opting to pay a small penalty rather than comply.
Still time to catch up
Overall, the Asia SME Finance Monitor 2013 report acknowledges the gradual improvement of SME access to banks among ASM participating countries through various support measures such as mandatory lending and credit guarantees. This is particularly vital as SMEs serve as the backbone of the national economies of countries in Asia and the Pacific. The report, however, cautions that deepening global economy complexities may put the growth of Asian economies at risk. It cites the development of the SME sector in the region as the key for resilient national economies. 
This is all the more crucial for the Philippines as we continue to lag behind our Asian counterparts, many of which have been more aggressive in the development of their respective national SME sectors. The lessons from the ADB review present Philippine policymakers and SME finance players an opportunity to focus and double their efforts and resources while there is still time to catch up. The country cannot afford to be complacent and must ensure that the necessary components and measures for a national level SME sector development are in place especially with regional integration just a year away.

An AIM-MBM and Harvard MPA graduate, Mr. Benel Lagua is in the faculty of the De La Salle Ramon V. del Rosario College of Business teaching courses in financial management.  He is likewise executive vice president and chief development officer of the DBP.
The views expressed above are his own and does not necessarily reflect the official position of the De La Salle University, its administration and faculty.


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Monday, November 3, 2014

Key reforms in Philippines seen at risk due to politics

The 2016 presidential election season may have inadvertently come early for the Philippines, putting President Aquino’s remaining reform agenda at “serious” risk, according to New York-based think tank Global Source.

“At a time of slowing growth, rising inflation and visible signs of infrastructure constraints, an adjudged bend in the administration’s “daang matuwid (righteous path)” has left the President not only with reduced degrees of freedom to invigorate the economy but also dented his corruption-fighting image,” Global Source said in a report “A Bend in the Road” dated Aug. 6.

Global Source has scaled down its 2014 gross domestic product (GDP) growth forecast for the Philippines from 6.1 per cent to 5.8 per cent, lower than the market consensus forecast of 6.3 per cent. For 2015, Global Source has likewise pared down its GDP forecast from 6.4 per cent to 6.2 per cent against the market consensus of 6.5 per cent.

The report written by Filipino economists Romeo Bernardo and Marie Christine Tang also said that on the much-awaited structural reforms, while the administration continued to keep the rationalisation of fiscal incentives in its priority legislative measures, there was not much hope that it would be passed by 2016 in the current political environment.

Global Source’s slower GDP growth forecast, on the other hand, factored in the likely “midyear hiccups” from a combination of cautious public spending, drags to production due to Manila’s truck ban and resulting port congestion, as well as some scrimping by households facing higher food prices.

While available indicators of economic activity suggested a quite robust second-quarter growth, Global Source said a number of accompanying bad news were hard to ignore.

“Inadequate rice and other basic food supplies as well as pressure on oil prices following the turbulence in the Middle East raised domestic consumer prices. Manila’s truck ban, imposed end-February and resolved by a compromise 24-hour truck lane in June, had by then taken its toll not only on logistics costs but more importantly, on trading activity that still lingers as the resulting port congestion led to significant delays in sending out exports and releasing imports,” the report said.

The problem was compounded by a stricter enforcement of rules against unfranchised truck operations and new Bureau of Customs rules, Global Source said, citing latest import statistics showing an almost 10-per cent drop in May imports, which it said might be a reflection of this bottleneck alongside an increased clampdown on smuggling.

“There were also reminders along the way of the economy’s vulnerability to breakdowns in any of the major power plants, with the energy secretary now urging the President to seek emergency powers to deal with foreseen shortages by the summer of 2015. Moreover, the latest court ruling on the illegality of the administration’s Disbursement Acceleration Program (DAP) puts in question the government’s ability to meet spending targets for the year,” the research said.

Considering that Aquino was elected on a platform of good governance and had kept his image “squeaky clean,” Global Source said it was understandable that the President would take offence at a judgment from the Supreme Court presuming bad faith on the DAP. 

Hence, the report said it was important for the Presidential Palace to file its motion for reconsideration if only to remove this obiter to the main decision that, if left unchallenged, could indeed have a “chilling effect” on all future action of the executive department.

“Moreover, it was important for the President to sharply draw the distinction in the mind of the public between an arguable constitutional issue like the DAP and plunder and graft cases for ghost projects, which three senators and several other officials have been charged with. With these moves, he is able to retain the moral high ground under the “daang matuwid” slogan and halt a further drop in his popularity ratings,” the research said.

Global Source said it was not clear that the President’s falling satisfaction, trust and performance scores were due to the DAP rulings, noting that the survey dates had ended either a day before or a day after the ruling came out. 

“There were a lot of things happening in the run-up to the surveys, most notably the arrest of the three opposition senators, which opened the administration to criticisms of only going after the enemies among the over 100 names tagged in the scandal. That particular period was also a time of rising food prices, rice being the most sensitive item,” it said.

As such, Global Source said data suggested that rising inflation might be the “bigger culprit” for the President’s poorer scores.

“Hopefully, efforts to stabilise inflation and the widely seen as favourable State of the Nation Address (Sona) of the President will hold the line on his ratings. In any event, the scores now still compare most favorably versus his predecessors past mid-term, where the pattern has been predictably south,” the research


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Sunday, November 2, 2014

Philippines eyes universal health care law — now what?

A doctor examines an infant in Legazpi City, Philippines. Benigno Aquino, the country's president has signed into law the long-awaited revisions to the National Health Insurance Act. Photo by: Kenneth Pornillos / World Bank / CC BY-NC-ND
Philippine President Benigno Aquino signed into law in June the long-awaited revisions to the National Health Insurance Act, which now places the country’s most vulnerable citizens under the umbrella of the government’s cash-strapped national health insurance program.
The amended law now technically puts universal health coverage within reach of 95 million Filipinos, a goal shared with other Asian neighbors like Indonesia and India.
Republic Act 10606 creates a socialized health insurance program offering free health care services to indigents and prioritizing the needs of the underprivileged, elderly, persons with disabilities, women and children under PhilHealth, the government’s national health insurance scheme.
Funds will come from the so-called “sin tax” revenues from cigarette and alcohol sales.
The vision: To attain all health-related Millennium Development Goals in the country, especially curbing maternal mortality and raising contraceptives use and births attended by skilled health works, where the Philippines has been lagging behind according to official statistics.
“It looks to be a good thing from the point of view of protecting the health and finances of disadvantaged groups in the Philippines by subsidizing health coverage through PhilHealth for those unable to pay premiums, and for those in the informal sector who would have difficulty paying premiums,” Marty Makinen, managing director of the Results for Development Institute, told Devex.
However, the future of universal healthcare coverage in the Philippines is still not set in stone while the government mulls over its implementing rules.
Challenges, prospects
Yvonette Serrano Duque, World Vision’s child well-being programing manager in the Philippines, told Devex that while the new policy is a good start, challenges remain for its implementation, like popularization and advocacy, possible politicization and eligibility issues.
“What budgets are we talking about to support the poorest of the poor? How are we able to categorize and ensure [that they are indeed the] poorest of the poor?,” she asked.
Other universal health coverage schemes around the world have faced the same problem of finding the best way to enroll beneficiaries, according to Makinen, who added that physical access to services can also be a barrier.
“This subsidization, while very important, might not yet make the use of health services completely equitable,” he said.
Management Sciences for Health president and CEO Jonathan Quick agreed that on its own, expanding social health insurance does not guarantee equity in health.
“UHC isn’t just about financing. Nobody gets better until service delivery improves,” said Quick, who in an earlier exclusive opinion for Devex urged that UHC be included as a goal in the U.N. post-2015 development agenda.
Quick called for better monitoring by the government to confirm that the beneficiaries are indeed using services, that those services are being delivered well and, ultimately, that people’s health is improving. This entails, he said, enhanced systems for data collection and management.
From her experience working on the field, Duque urged the government to:
  • Create more health facilities reaching far-flung areas within the country and provide trained personnel to manage them
  • Boost the sanitation of health facilities
  • Ensure that there are available licensed health service providers in every health facility
  • Make medical instruments and supply of medicines available
  • Extend the coverage of illnesses and diseases in the policy
  • Include preventive care in the coverage of the insurance.
‘Sin taxes’
Funding for the new universal health coverage plan in the Philippines will come from national revenues in tobacco and alcohol excise tax — a controversial approach that has its own share of proponents and critics.
“It is good to have a protected source of funding, but might be better if the funding were protected within general revenues rather than depending on the continuation of behaviors that it would be better to moderate or stop altogether like smoking and the consumption of alcohol,” said Makinen.
Quick, on the other hand, believes that progress towards UHC always requires more public spending on health, often translating into a hike in tax revenues from any available source.
“Sin taxes can be regressive, but in this case the funding is going towards better coverage for vulnerable groups. I think we’ll see more and more countries turn to these targeted taxes as they realize how much they have to increase resources to address the epidemic of chronic diseases related lifestyle factors,” he said.

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