briefs

Row in Philippines over tax breaks for CP project 

To balance incentives for local and foreign investors, the Federation of Philippine Industries (FPI) is asking that country’s Board of Investments (BOI) to reconsider its decision to grant tax breaks to a 2.3-billion-peso (Bt1.7-billion) integrated livestock project by Thai-owned Charoen Pokphand (CP).

This would put local producers at a huge disadvantage in the domestic market, The Manila Bulletin reported.

The newspaper reported that Jesus Arranza, chairman of the FPI, said swine and chicken production was already an area well invested by large and small Philippine companies, so it was not proper to grant CP’s project pioneering status.

 He noted that in a consultation with stakeholders organised by the Swine Development Council last week, it came out that more than 300 billion pesos had been invested in the industry by Philippine companies, including San Miguel Corp and Bounty Fresh.

He said the FPI would support local players in seeking a reversal of the BOI’s decision, including legal options, particularly in questioning how the project was given pioneer status. “How can it be a pioneering project when swine and feed production are already well invested in by Filipinos? Will there be a transfer of technology? Integrated does not mean there will be new science or technique that will be used,” Arranza said.

 

Vichet replaces Prin as PTT director 

PTT’s board of directors appointed Vichet Kasemthongsri as an independent director in replacement of General Prin Suwannathat, a director who is resigning. 

The appointment shall be effective to, the company’s president and CEO Pailin Chuchottawom said in a press release yesterday.

 

MICE players eye Asean

More and more companies are setting up offices in Asia as they note the economic rise of this region, said David Levin, CEO of British-based media company UBM.

In a speech titled “UBM and the Changing Media World as the Economy Shifts from West to East”, he said the Asean Economic Community would attract business sectors all over the world as a new market. 

When the AEC is established in 2015, its population will be 600 million. Moreover, several countries in Asean such as Myanmar, Vietnam and Indonesia still need to develop their infrastructure and industry. 

Thus the need for commodities and company expansion is rising. Now is the time for business to seek more market share so they can extend their base in the future, he said. 

The MICE (meetings, incentives, conventions and exhibitions) industry is playing a more important role in the economy. 

MICE entrepreneurs from various countries have made it a priority to penetrate the Asean market. UBM is also paying attention to the MICE industry in Southeast Asia, especially trade fairs and exhibitions, which are considered its main activities. 

UBM foresees that the trade-fair industry in Asean will expand by about 10 per cent or more per year. 

One of the key factors helping market growth is the association of 10 Asean countries, united as one like the European Union, Levin said. This will attract more investors as buyers and sellers see the potential of this expanding market. 

During past 18 months, besides its existing offices in Singapore and Thailand, UBM has established a number of new offices in Southeast Asia to support the growth of the MICE industry and the coming of the AEC.