MINUTES OF THE ANNUAL GENERAL MEMBERSHIP MEETING
Held on 23 June 2011, Thursday, 8 – 10 am
Ballroom A, Dusit Thani Hotel, Makati City
I.
Call to Order
The Treasurer, Mr. Cyril Rocke, chaired the meeting in the absence of the President and
called the meeting to order. Atty. Leslie Anne T. Cruz, Acting Corporate Secretary, recorded
the minutes thereof.
II.
Proof of Quorum
The Acting Corporate Secretary certified that there was a quorum, in person or represented
by proxy, to transact business.
III.
Adoption of Minutes of the 2009 Annual General Membership Meeting
The minutes of the 2010 Annual General Membership Meeting was circulated to the
members of the Chamber. Upon motion made and duly seconded, the same was approved.
IV.
Report of the President
The Report of the President, Mr. Hubert d’Aboville, was read by Mr. Cyril Rocke. He reported
on the business environment and specific activities of ECCP in 2010, to wit:
The Business Environment
The year 2010 was a special year in that the Philippines had its first automated national
elections which led to what many considered as the most credible elections ever in
Philippine history. Also, the same elections brought forth a new administration under the
leadership of President Benigno Simeon Aquino III.
The installation of the Aquino Administration presented an opportunity for ECCP to engage
the government in the Integrity Initiative program given the call of President Aquino to stop
corruption and to end poverty in the country. ECCP saw this also as an opportunity to make
the Philippines competitive again.
In 2010, ECCP focused most of its efforts towards making the Philippines competitive so that
the country can become a more attractive trade and investment partner of Europe. Some of
ECCP’s Highlights in 2010 are as follows:
Integrity Initiative
The Philippines has been rated by international organizations as among the most corrupt
countries in the world and this is the number one factor of the Philippines’ inability to
compete globally for investments.
Given that it takes two to tango in corruption, ECCP launched the Integrity Initiative with the
objective of encouraging the private sector to withdraw from the dance floor.
Corruption is not a problem with government alone but also something that companies
likewise practice. Bribery, for example, increases the cost of doing business and this makes
the country uncompetitive and an unattractive investment destination because of the lack of
fair market conditions.
Moreover, corruption has also robbed us all, especially the poor ,from receiving good quality
infrastructure and government services. This inefficiency has led to the Philippine economy
falling behind its ASEAN neighbours.
To address corruption, ECCP launched the Integrity Initiative in 2010 and partnered with the
Makati Business Club to spearhead a campaign to create a level playing field or fair market
conditions in the country.
ECCP started roundtable discussions in 2010 to get companies to sign an integrity pledge.
ECCP encouraged companies to commit to integrity in order to start a collective action
among private enterprises that will push to make integrity the norm and corruption a totally
unacceptable practice.
Following a call for proposal by Siemens, ECCP and MBC jointly submitted a proposal to
Siemens to obtain funding for the Integrity Initiative in 2010 and this was successfully
approved with a USD 1 million financial grant. ECCP, MBC and Siemens officially launched
the Integrity Initiative or SHINE Project on 16 December 2010.
The Integrity Initiative aims to make ethical companies competitive by working to create a
business environment where companies adopting integrity standards and control measures
are given preference during project tenders and biddings. In this manner, the parties want to
see Integrity as a competitive edge for doing business in the Philippines.
Since Integrity Initiative started, more than 500 companies and organizations have signed
the Integrity Pledge. Government agencies will soon be signing the Integrity Pledge starting
with the Department of Justice.
The companies present at the meeting and that have not signed the Integrity Pledge were
invited to sign the Integrity Pledge.
After signing the Integrity Pledge, the next step is to present the draft Unified Business Code
or Conduct and accompanying integrity standards as well as control measures to all the
signatories, which should begin the implementation of the said standards and control
measures.
Advocacy Efforts
While corruption is the biggest challenge, there were also plenty of major issues or irritants
in 2010 that affected business performance, created barriers to doing business, or made
doing business in the Philippines difficult.
ECCP actively represented its members in raising business concerns to the Government and
in resolving the issues, which included:
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Issues relating to the Tax Credit Certificates to the rationalization of fiscal incentives;
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The lack of a competition law to updating the sector scope of the Investments priorities
plan;
The need for flexible work arrangements to the issue of holiday economics;
Oil smuggling to price controls on medicines;
The use of the EU digital system to the EU ban on Philippine flag carriers and
Issues relating to energy supply shortages to the establishment of feed-in-tariffs for
renewable energy
ECCP worked with its sector committees to come up with position papers on this wide range
of issues. It also worked closely with the EU MAT or EU Market Access Team chaired by the
EU Delegation and attended by European embassies as well as European National Chambers.
Likewise, in many issues, ECCP cooperated with the Joint Foreign Chambers as well as other
business and international organizations.
With the strong representation of ECCP, DOLE continued to support the policy on Flexible
Work Arrangements which allowed BPO companies to organize the work schedules of their
staff so that these are aligned with the time zone of the foreign markets they serve.
On holiday economics, the Aquino Administration heeded the call of ECCP and other
chambers to reduce the number of holidays in the Philippines as well as to avoid the
issuance of short-notice and ‘moving’ holiday schedules, given that the Philippines already
has the highest number of holidays in ASEAN and this has disrupted company operations too
often as well as contributed to the high cost of operations of companies.
Since 2010, ECCP has been advocating for the passing of a Competition Law or Anti-Trust
Law to keep monopolies and cartels in check. Last June 9, 2011 we saw the first sign of
success with the signing of Executive Order 45 which created the Office for Competition
under
the
Department
of
Justice
(“DOJ”).
In effect, the Secretary of Justice will now serve as the country's "competition authority" to
prevent monopolies, cartels and other corrupt business practices. The said Executive Order
aims to protect consumers from abusive and fraudulent business practices, promote
transparency, and level the playing field in the market, and strengthen the country's trade
relations with other countries. The DOJ will push for legislation to eventually replace the
said Executuive Order and meet its objectives.
There are other examples to show that ECCP advocacy efforts are yielding important results.
We trust that you are receiving and reading the eccp@work circular that we send out
practically every two weeks to bring to you the latest news on our advocacy efforts.
7 Big Winners
On industrial policy, ECCP as part of the JFC, worked with the Aquino Administration
economic team to provide new directions for the industrial development of the Philippines
by promoting and developing fast growth industries dubbed as the 7 Big Winners in order to
bring in more foreign investments and to generate more jobs that will help alleviate poverty.
The sectors that are called the 7 Big Winners are Agribusiness, IT and BPO, Creative
Industries, Infrastructure, Manufacturing and Logistics, Mining, and Tourism, medical travel
and retirement.
ECCP is working closely with the ARANGKADA team comprising of the Joint Foreign Chamber
members to progress in this area.
We are happy to report that the JFC policy recommendations to government have been
considered by DOJ in its 2011-2016 roadmap. DOJ called on the JFC to continue giving
feedback to the agency. We are also receiving good feedback from other government
agencies with regard to the 7 Big Winners.
Green Business Initiatives
In 2010, ECCP started to focus on sustainable development strategies to promote the triple
bottom-line approach or a business strategy that considers profits, people and planet as key
and integral to sustainable business and competitiveness.
The year 2010 also saw ECCP launching several Green Business Initiatives, namely, SMART
Cebu, Green Philippines and Energy SMART Program. The projects and programs are
designed to make companies more competitive through resource efficiency as well as
cleaner production strategies.
ECCP launched the EU Switch Asia SMART Cebu project in February 2010. It is a 1.2 million
euro project with a 1 million euro financial support from the EU and a 200,000 euro support
from the German Federal Ministry of Economic Cooperation. The objective of the project is
to make Cebu SMEs belonging to the furniture, fashion accessories and
gifts/toys/housewares sectors more competitive by making them more resource efficient
and minimizing wastes and pollution. We are almost complete with the walk through
resource efficiency and cleaner production assessment of 150 SMEs and around 60
companies are now receiving free training on eco design and green product marketing.
ECCP is also part of the consortium of partners implementing another EU Switch Asia project
called Green Philippines Islands of Sustainability. This is a 2.4 million euro project that is
focused on assisting enterprises based in Metro Manila and the Calabarzon area in
encouraging more environmentally friendly operations. Through this project we have
assisted ECCP members by offering free initial environmental assessments which offer
opportunities for enterprises to become efficient and competitive.
ECCP also pioneered the organization of the 1st Philippine Energy Efficiency Forum and the
launch of the Energy Smart program in July 2010. The aim of the Forum and the Energy
Smart Program is to help companies enhance their competitiveness through energy
efficiency. About 400 companies participated in the 2010 event. We had almost 20 speakers
sharing best practices and case studies in energy efficiency. It was a very successful event
despite the typhoon that hit Metro Manila the night before and we thank our major
sponsors Philips, First Gen, Meralco, Schneider Electric and Shell for supporting the 1st
Philippine Energy Efficiency Forum in 2010.
Another Green Business Initiative is the Materials Research and Development (R&D)
program which ECCP created to promote eco-friendly production, creativity and
competitiveness through new material manipulation, reinvention and rejuvenation of
designs and indigenous materials. The program helps exporter companies from the three
creative sectors of furniture, home decors and fashion accessories in their design, material
and product research and development.
In relation to Materials R&D, a Materials Library was set up with ECCP, the Cebu Furniture
Industries Foundation and the Department of Science and Technology Region 7 as partners.
The Materials Library houses a modest collect of local and imported material swatches as
well as books on materials, design and technology.
Membership
On membership, ECCP strengthened its membership team by hiring a full-time membership
officer to liaise more closely with members and focus on recruiting more companies to
become members. The number of members in attendance at today’s Annual General
Membership meeting is a testament that membership is now steadily growing.
Business Development
On business development, ECCP continued to assist European companies that would like to
set up operations or be represented in the Philippines. ECCP helps European companies find
business partners such as agents, distributors or investment partners in the Philippines.
ECCP also helps them with business contacts and in preparing market studies.
Fairs and More Inc.
As far as Philippine exporters are concerned, ECCP assists them through its subsidiary
company, Fairs and More Inc. ECCP organized the participation of Philippine exporters in
various trade shows, namely, Christmasworld, Paperworld and Ambiente in Frankfurt as well
as imm in Cologne.
The first Philippine participation at the House & Gift Fair in Sao Paulo Brazil proved to be a
promising undertaking to penetrate the South American Market provided that FIFA 2014
and Olympics 2016 will be staged in Brazil.
As far as local events are concerned, FMI continued to become the event manager of PTAA’s
Travel Tour Expo 2010. FMI also managed the 15th Phlippine International Golf Show of
GDAP last September 2010.
ECCP is availing of every opportunity to create positive changes in the Philippines in order to
improve the business environment for all its Members. It is particularly trying to make the
country an attractive investment destination and trade partner for Europe.
It was emphasized that ECCP is a bilateral foreign chamber serving the interest of European
businesses in the Philippines as well as European businesses interested to enter the
Philippine market. We are also serving the interest of Philippine and non-European
companies that have interests in doing business in Europe and with Europeans here or
abroad. In short, we listen to the concerns of the business community that cares about
Europe and that would like to strengthen Europe-Philippine business relations. ECCP is to be
Voice of the European Business Community in the Philippines.
ECCP will remain active in launching advocacy programs to make doing business in the
Philippines better and more exciting for European and Philippine companies alike.
While 2010 provided an excellent opening for ECCP to take hold of new opportunities to
make positive changes by addressing integrity, business and environmental issues, in 2011
to 2012 ECCP will work on institutionalizing these changes and encouraging more
stakeholders to become involved to make its efforts sustainable.
V.
Report of the Treasurer
ECCP
ECCP’s external auditor, KPMG – Manabat Sanagustin & Co., certified the year 2009
accounts without qualifications. The accounts were submitted to the membership for
approval. Mr. Peter Labrie read the report of the Treasurer.
Income
The year 2010 was a good year for ECCP. Revenues for the year 2010 increased by 20% to
Pesos 25.5 million, compared to Pesos 21.2 million in 2009; ECCP gains were contributed by
revenues from chamber events and special projects.
Expenses
The expenses of ECCP increased by 12% to Pesos 26.5 million in 2010 from Pesos 23.8
million in 2009. This increase is related to revenues in Special Projects and also due to
foreign exchange losses due to a weaker Euro vis-à-vis the Peso.
Assets / Liabilities
Total assets increased by 1.5% from Peso 47.6 million in 2009 to Pesos 48.3 million in 2010
mainly due to the reduction in net cash balance.
The net balance of ECCP’s funds dropped to Pesos 40.4 million at the end of 2010 from
Pesos 40.8 million in 2009.
With current assets of Pesos 24.4 million and current liabilities of only Pesos 7.9 million at
the end of the year, the chamber remains solvent and its financial position remains stable.
Fairs&More, Inc.
Fairs&More was also audited by KPMG – Manabat Sangustin & Co., who certified the year
2010 accounts without qualifications. The accounts were submitted to the membership for
information.
The revenues for the year 2010 amounted to Pesos 15.7 million, compared to Pesos 14.0
million in 2009. The 12.7% increase was due to the improved business of international trade
fairs and events management.
The expenses amounted to Pesos 15.0 million, 10.0% increase from the Pesos 13.6 million in
2009.
The net income after tax was Pesos 1.03 million in 2010.
Stockholders’ equity increased from Pesos 6.5 million in 2009 to Pesos 7.5 million in 2010.
The board of Fairs&More, Inc. approved an increase in authorized capital stock from Pesos 5
million in 2009 to Php 20 million in 2010.
ECCP – Retirement Benefit Plan
The plan was audited by KPMG – Manabat Sangustin & Co., who certified the year 2010
accounts without qualifications. The accounts were submitted to the membership for
information.
Net assets available for plan benefits stood at Pesos 18.8 million at the end of 2010,
compared to Pesos 21.4 million a year earlier. The decline was the result of payments to
resigning employees.
VI.
Election of Directors
The Acting Corporate Secretary presented to the membership the names of the Board
Members seeking re-election and those seeking election to the Board for 2011-2012, viz:.
1. Nominated for re-election to the ECCP Board of Directors:
NAME
COMPANY
1. Hubert d'Aboville
Paris-Manila Technology Corp.
2. Erik Moeller Nielsen
Regus
3. Michael Raeuber
Royal Cargo Combined Logistics Inc.
4. Cyril Rocke
Finacor Finance Corporation
5. Edgar Chua
Pilipinas Shell Petroleum Corporation
6. Richard Eldridge
Infinit Outsourcing Inc.
7. Rico Gonzales
Philips Electronics & Lighting, Inc.
8. Dr. Guenther Matschuck
Maschinen & Technik, Inc.
9. John Miller
Nestle Philippines
10. Bernard Poplimont
Puratos (Phils.), Inc.
11. Jose Luis Romero-Salas
Schutter Philippines, Inc.
12. Bernard Krueger Sprengel
Lufthansa Technik
2. Nominated for election to the ECCP Board of Directors:
NAME
COMPANY
1. Anthony Cripps
HSBC
2. Consuelo Garcia
ING Bank NV
3. Ernst Wanten
Total (Phils) Petroleum
Upon motion duly made and seconded, the nominees were deemed elected to the Board of
Directors for 2011-2012. The said motion was unanimously approved by all the members
present and represented by proxy.
The Chairman of the Meeting congratulated all those elected to the Board and advised the
members that the election of the officers will take place during the first meeting of the new
Board of Directors.
VII.
Other Business
The Chairman asked the members if there are other matters that they would like to discuss
and the following was agreed upon:
Appointment of External Auditor – Upon motion duly made and seconded KPMG
ManabatSanagustin & Co. was re-appointed as the external auditor for the coming year with
such compensation which shall be approved by the Board of Directors.
Upon motion duly made and seconded, all the acts of the Board of Directors and Officers of
the Chamber for the year 2010 were duly approved and ratified by the membership.
Upon motion duly made and seconded, the membership expressed its appreciation for the
work done by and the achievements of the Officers and Board of Directors during the year.
VIII.
Adjournment
Since there was no further business to transact, the meeting was adjourned upon motion
duly made.
LESLIE ANNE T. CRUZ
Acting Corporate Secretary
Attested by:
CYRIL ROCKE
Chairman of the Meeting