The budget deficit has been a perennial problem of past presidents. During the time of FVR, aside from loans, the budget deficit was addressed by selling government assets. Proceeds from the sale were then available for appropriation. Also, the collection rate of the Philippines during the 90s went up to 19% from the usual 15%. That was the time of FVR. When Erap assumed office, BIR collection went down gradually from 19% to 18% to 17% until the time when GMA took over, the collection rate was down to 14% and 13%. She mentioned this in her speech to a businessman's conference at that time. That means, less and less people and businesses were paying their taxes. Thus, aggravating the budget deficit problem.

The E-Vat was not started in the administratin of GMA. As early as 1993, the VAT was already proposed in Congress as law. The E Vat is a practical tax law since it simplifies the tax structure on business transactions thus also making it easy for the tax authorities to collect taxes. The VAT system is effective that a lot of countries in Southeast Asia are implementing the law as far back as the early 90s. At that time, Congress was already drafting the law. The VAT law was then called EVAT to mean Expanded VAT to cover a wide range of goods and service.

From a perspective of tax compliance and collection, the VAT law is good and that is why Congress passed such law and not because it will address the budget deficit. Its timing just became relevant to the country's fiscal position now because its implementation addressed the deficit.

As to cha-cha, that initiative has been at the back of the minds of people even before the 2004 elections. But it gathered steam only when it was placed on the table by FVR at a time when we thought GMA would resign in July 2005. To say that the reason for cha-cha was to keep herself in power is not necessarily correct. Even before that, thoughts about charter change were already floated. They were just looking for the proper time. FVR thought then that was the appropriate time. But i agree with you in that, charter change should not happen at this time. I myself do not want her to extend her term. After 2010, she has to go.

Personally, elections to the Senate has become a popularity contest where name recall is more important than track record. And many have so much inflated egos. Remember Pimentel during the canvassing of votes? I cannot remember but i think he said something like "I will speak until kingdom come" and then spoke for 4 hours. Was he helping expedite the process?

Even before the 2004 elections and after, what has the opposition done? Have they been a helpful fiscalizer? Remember the 2003 Oakwood mutiny? They were doing everything to remove GMA from office because according to them, ERAP was the legal president. The Supreme Court has already affirmed the presidency of GMA in 2001. If you do not agree, then let us agree to disagree on this.

The performance of the opposition does not inspire confidence for me to vote for them. And have they even united themselves and agreed on who among them should lead? No, kasi kanya kanya silang interest. I have this fear that if they take over, there will be a new set of corrupt officials who will suck our country dry. So, this 2007, i will vote with the future of the country in mind.

Pag na balance na ang budget hopefully in 2008

I am looking forward to this.

The budget deficit has been a perennial problem of past presidents. During the time of FVR, aside from loans, the budget deficit was addressed by selling government assets. Proceeds from the sale were then available for appropriation. Also, the collection rate of the Philippines during the 90s went up to 19% from the usual 15%. That was the time of FVR. When Erap assumed office, BIR collection went down gradually from 19% to 18% to 17% until the time when GMA took over, the collection rate was down to 14% and 13%. She mentioned this in her speech to a businessman's conference at that time. That means, less and less people and businesses were paying their taxes. Thus, aggravating the budget deficit problem.

The E-Vat was not started in the administratin of GMA. As early as 1993, the VAT was already proposed in Congress as law. The E Vat is a practical tax law since it simplifies the tax structure on business transactions thus also making it easy for the tax authorities to collect taxes. The VAT system is effective that a lot of countries in Southeast Asia are implementing the law as far back as the early 90s. At that time, Congress was already drafting the law. The VAT law was then called EVAT to mean Expanded VAT to cover a wide range of goods and service.

From a perspective of tax compliance and collection, the VAT law is good and that is why Congress passed such law and not because it will address the budget deficit. Its timing just became relevant to the country's fiscal position now because its implementation addressed the deficit.

As to cha-cha, that initiative has been at the back of the minds of people even before the 2004 elections. But it gathered steam only when it was placed on the table by FVR at a time when we thought GMA would resign in July 2005. To say that the reason for cha-cha was to keep herself in power is not necessarily correct. Even before that, thoughts about charter change were already floated. They were just looking for the proper time. FVR thought then that was the appropriate time. But i agree with you in that, charter change should not happen at this time. I myself do not want her to extend her term. After 2010, she has to go.

Personally, elections to the Senate has become a popularity contest where name recall is more important than track record. And many have so much inflated egos. Remember Pimentel during the canvassing of votes? I cannot remember but i think he said something like "I will speak until kingdom come" and then spoke for 4 hours. Was he helping expedite the process?

Even before the 2004 elections and after, what has the opposition done? Have they been a helpful fiscalizer? Remember the 2003 Oakwood mutiny? They were doing everything to remove GMA from office because according to them, ERAP was the legal president. The Supreme Court has already affirmed the presidency of GMA in 2001. If you do not agree, then let us agree to disagree on this.

The performance of the opposition does not inspire confidence for me to vote for them. And have they even united themselves and agreed on who among them should lead? No, kasi kanya kanya silang interest. I have this fear that if they take over, there will be a new set of corrupt officials who will suck our country dry. So, this 2007, i will vote with the future of the country in mind.

Exactly. The opposition and their party-list members did nothing but wanted to gamble their political ambitions for their selfish interests. Philippines were able to repay its debt to World Bank and IMF for the first time in so many years so therefore, something right was probably done. Although OFW remittances are significant in having its share on the economy, the figure shows that even exports, direct investments, property investments, infrastructure development, tourism and decentralized developments (evidenced by the photos taken by our forumers from cities other than Manila) are on a positive trend as well. It will all trickle down to long-term poverty alleviation through human developments if this would be kept sustainable for many more years to come.

Bir’s banner year
HIDDEN AGENDA By Mary Ann LL. Reyes
The Philippine Star 01/14/2007
http://www.philstar.com/philstar/NEWS200701140704.htm

It was the triumph of silent hard work over wishful thinking.

We refer to the 2006 story of the Bureau of Internal Revenue (BIR). Throughout the past year, the agency, under the leadership of erstwhile private sector legal taxation luminary Jose Mario Buñag, labored arduously to achieve its collection goal. And while the BIR did so, a phalanx of hecklers sat by the fence-side, indulging in wishful thinking — that the BIR would fail.

We read from newspaper accounts recently that the BIR posted revenue collections of P610 billion for 2006. Based on what is called a "fair" goal of P600 billion, that translates into an excess of P10 billion. Indeed, there is cause for celebration. Given the volume of brickbats thrown at the agency in 2006, the collection record is no mean feat. The P610 billion in revenues collected overshadowed what the BIR collected in 2005 by more than P100 billion.

Keep in mind that the BIR achieved the feat without adding more people or equipment, and despite the incessant boos and catcalls it got from some quarters. And after three years, the BIR exceeded its target collection again. It was a banner year for the agency and the wishful thinkers better come to their senses and admit this reality.

The 2006 feat hopefully brings to a close a year-long agonizing practice of subjecting the BIR to a "monthly" review of its performance based on "monthly" targets. The public saw through the futility of the exercise and the malice in the motive of those instigating it after hysterical shouts of "shortfall" echoed when the "monthly" output did not match assigned goals.

Keen observers pointed out that the "monthly" review was patently misleading since the "monthly" goal was being scrutinized outside the context of the overall annual target. Keener observers saw that the "monthly" review and hysterical cries of "shortfall" was being maliciously used by those lusting after the plum posts of Finance Secretary and BIR Commissioner.

This year is an election year which means political bashing would be the order of the day in a few more weeks. It is good, therefore, to savor the positive developments a little while longer before the smear syndrome engulfs the public opinion landscape when the political pot starts to simmer.

In the meantime, let’s incise the 2006 BIR performance from an angle different from that of the catcall brigade. Consider this: the agency beat its 2005 record by 22.3 percent. It also collected P142 billion more than it did in 2004. It overshot its 2006 target, a feat last achieved in 2003 and for only the third time within the last 10 years.

We came across the collection tally of the agency since 1997, and was surprised to note that annual collection "shortfalls" were more the order of the day rather than the exception. In 1997, it was short by 19.75 percent; by 17.89 percent in 1998; by 12.31 percent in 1999; and by a whopping 36.96 percent in 2000.

In 2002, the agency missed its mark by a record 53.01 percent. It outdid the set performance target in 2001 (0.62 percent) and in 2003 (1.34 percent). So, going by the record, the 1.66 percent target excess of 2006 is a significant achievement.

Question: why is it that during those "shortfall" years, meaning 1997 to 2000, there were no catcalls, no booing the BIR Commissioner? We don’t remember media going into hysterics over such shortfalls, nor do we recall political personalities urging the President to replace the BIR Commissioner. That exercise in hysterics happened only in 2006.

The logical answer: there appears to have been an orchestrated smear drive against Finance and BIR officials in 2006. Somebody out there (some bodies, perhaps) stood to profit from a negative public perception of the performance by the BIR. The scheme was obvious: portray the Finance Secretary and the BIR commissioner as incompetent, clamor for their replacement and create a bandwagon for the appointment of the wannabes to the posts.

But the ruse could have worked only if the public did not see through the malice in the hysterics over the alleged monthly "shortfall" in BIR collection. So, the ruse fell flat on its face. The wannabes have to invent another scheme. The old one just wouldn’t work anymore.

But let’s look at the 2006 BIR saga from the positive side. At least, the debate was on agency performance, not on personalities. Before, the agency was the butt of jokes on graft and corruption. That does not seem to be the case last year. In fairness to the catcall brigade, they harped on performance. That was also their waterloo.

While we salute Secretary Gary Teves and Commissioner Buñag for the 2006 feat, we will not give them all the credit for the record collection. There are two groups who must be congratulated. The first are the men and women of the BIR who worked hard while silently enduring the catcalls and heckling from the gallery.

The second group are the taxpayers themselves. Meaning, us. More Filipinos paid the right taxes, and paid it on time. The 22.3 percent jump in collection was not just the triumph of revenue generation mechanisms. That was an hour of glory for Filipino patriotism.

We paid our taxes because, despite its foibles and failures, we still love our country. And no amount of catcalls and heckling would stop us from doing so.

Congratulations, taxpayers. 2006 was our banner year.

^Maybe the government should also temporarily outlaw labour unions for now since they are a problem most of the time and easily penetrated by trouble makers. Once the economy is strong then the government will have more resource to monitor them.

also outlaw freedom of the press, and all opposition parties and groups.

see what will happen :lol: :lol:

The Philippine Star 01/14/2007

Malacañang expressed confidence yesterday the country would exceed its growth targets for the year because of the continued strong performance of the economy.

Press Secretary Ignacio Bunye said the country’s "cycle of stability and investments has already been set in motion "with the implementation of unpopular fiscal reforms that was supported by the international financial and investor community.

"We have seen the strong performance of the economy and we are more than confident of achieving our goals beyond target because of the market’s agility and resiliency on the back of good governance and strong popular enterprise," Bunye said in a statement.

He said the fruits of the fiscal reforms, which included the imposition of the 12 percent value-added tax, are now being felt by the public through an increased spending on health, education and other social services and more jobs and infrastructure projects.

Bunye issued the statement as government economic managers raised the growth forecast for the year from 5.7 to 6.5 percent Gross Domestic Product (GDP) to 6.1 to 6.7 percent due to the strong performance of the peso and lower inflation.

The interagency Development Budget Coordination Committee (DBCC) said projections were bolstered by the approval of the P1.126 trillion national budget, strengthening peso and the improving fiscal position.

The DBCC also forecast the average exchange rate to P48 to P50 to the dollar and scaled down inflation projection to an average of 3.3 percent from the original four percent.

The deficit projection for 2007 is P63 billion but foreign analysts are expecting it to be as low as P58 billion, Presidential Management Staff head Cerge Remonde said.

The peso earlier reached its highest level vis-à-vis the US dollar in almost six years while the local stock market, spurred by favorable economic prospects earlier hit a 10-year high.

The DBCC said the newly approved budget would realize the government’s massive pump-priming program to jumpstart the economy.

Bunye said President Arroyo’s "super regions" program or dividing the Philippines into Northern Luzon, Metro Luzon, Central Philippines, Mindanao and Cyber Corridor, would be the vehicle to pump up the economy.

Budget Secretary Rolando Andaya Jr. meanwhile said the budget would fund some P83.8 billion worth of infrastructure projects including 3,251 kilometers of roads and P12.4-billion worth of infrastructure geared to jumpstart the economy.

The budget would also fund the hiring of 10,000 teachers and 3,000 policemen, establishment of 2,200 "Botika ng Barangays" or small village drugstores and other pro-poor initiatives.

Andaya said the approved budget would allow the government to spend more on education and health and public works after years of underspending. — Paolo Romero

By Jess Diaz
The Philippine Star 01/14/2007

The government collected a total of P38 billion in income taxes from businessmen and professionals like doctors and lawyers last year, Quezon Rep. Danilo Suarez reported yesterday.

"It was the first time the Bureau of Internal Revenue (BIR) raised such a huge amount from this group of taxpayers who are known to cheat on their tax obligations," he said.

Suarez heads the House oversight committee, which monitors the performance of revenue agencies, principally BIR and Customs.

He said the P38 billion paid by businessmen and professionals last year was about eight times more than the average amount the BIR collected from this group in previous years.

"This group of taxpayers contributed less than P5 billion, or less than five percent, to the total income tax take of the government. The 95 percent of about P100 billion in income taxes came from salaried workers," he said.

Suarez said it was ironic that businessmen and professionals, who can afford to pay more, were not contributing their commensurate share to the tax burden.

He pointed out the phenomenal increase in collections was the result of strict regulations enforced by the BIR and of the enactment of a law limiting the tax-deductible expenses of this group of taxpayers.

Suarez urged the BIR and Customs to maintain their "good" revenue collection performance.

He said the BIR should improve its record since it fell slightly short of target last year, while Customs exceeded its collection goal.

"Keep up the good work," Suarez added.

In a related development, Isabela Rep. Rodolfo Albano lll urged Suarez and his oversight committee not to meddle in the job of the Attrition Board, the body created under the Attrition Law to evaluate the performance of revenue collectors.

The inter-agency board, chaired by the secretary of Finance, will determine who gets fired or reassigned among revenue officials for failure to meet their collection targets.

Albano said lawmakers should leave the board alone in doing its job, lest they be suspected of placing their protegés in lucrative posts or influencing its decision to favor certain BIR and Customs personnel.

"We will be suspect if we meddle in the job of the evaluation board. We should not do that," he said.

"What we can do is call the attention of these agencies, in very general terms, if they are performing poorly. We can praise them for good performance. But we cannot determine who gets what posts, who gets reassigned, demoted or promoted," he stressed.

Suarez had announced that he would recommend who among key BIR and Customs personnel would be sacked, kept in their present posts, be reassigned, or promoted.

DUE TO STRONG PESO
Gov’t readies safety net for exporters


The government is mulling a number of temporary mitigating measures to help small exporters cope with the strong peso, according to trade secretary Peter B. Favila.

Favila the safety net will be on top of a proposed P300-million fund for capacity-building.

"Big exporters know the dynamics of the market but it is the small ones which we are trying to protect," Favila said. Small exporters account for 30 percent of total exports.

Favila said he had discussed with transport secretary Leandro Mendoza, Philippine Port Authority head Oscar Sevilla and Metro Manila Development Authority chair Bayani Fernando on the measures, mostly involving discounts on logistics and transportation.

Favila said wharfage fees can be scrapped.

He said government is also encouraging consolidation of shipments of small exporters to save on costs.

He said the Philippine Exporters Confederation Inc. and the Philippine International Trading Corp. could act as consolidators.

One other measure being proposed is for shipments of raw materials and inputs be able to pass through directly on various ports.

Favila explained that currently, the Cabotage Law provides that products for domestic use could only be transmitted via domestic ports from an international port. This diversion translates to cost of money for exporters.

With government’s proposal, shipments would no longer have to be diverted to the Port of Manila and could be shipped directly to say, the Port of Cebu.

With Fernando, Favila said government is discussing how the MMDA could shorten truck ban to ease the flow of goods.

Favila said the government is also packaging at least P300 million in contingency fund for the needs of exporters in product design, packaging, training and other capacity-building measures to make them more competitive.

Favila said the fund would be managed by the Export Development Council (EDC) which would evaluate the projects.

The seed capital is to be provided by the Department of Budget and Management, P100 million; Department of Trade and Industry, P100 million; BSP, P50 million; Philexport, P10 million and the National Economic and Development Authority through the Industrial Guarantee Loan Fund, P20 million.

Favila said Philexport has been seeking a number of measures with the Bangko Sentral ng Pilipinas (BSP), including a further reduction of the rediscounting rate.

He said BSP governor Amando Tetangco is lukewarm to the idea because current rates are already below market rates.

"They (exporters) say 1 percent is a good support," he said.

From January to October, shipments totaled $39.3 billion, a 16.4 percent growth, topping the 10 percent export growth target for 2006.

Morgan Stanley sees '07 boom in Philippine bank lending


Inquirer
Last updated 04:44am (Mla time) 01/15/2007


THE era of “lazy banking” in the Philippines is over, says a US-based investment bank.

Morgan Stanley analysts say they expect a boom in Philippine credit activity for the first since the 1997-98 Asian financial crisis as the economy enters a new credit cycle fueled by falling interest rates, a healthier banking sector and a rosier economic picture.

Over the next 12 months, commercial bank lending may expand 15-18 percent given the country’s restructured economic fundamentals and bank balance sheets, Chetan Ayha and Deyi Tan said in a Jan. 3 commentary titled “Philippines Economics: The Beginning of a New Credit Cycle.”

The report says a combination of structural changes implemented by the government and increased global appetite for emerging market assets had brought about a significant reduction in risk premium in the Philippines over the last three years.

“Following the sharp decline in government bond yields, banks’ lending rates have also started to decline over the past three months, triggering the first credit cycle after nine years,” it says.

The restructuring of the banking sector’s balance sheet, resulting in a decline in non-performing loans (NPLs) and comfortable capital adequacy ratios, promises to kick-start a new credit cycle, the report says.

In previous years, risk aversion toward loan assets, caused by the large level of NPLs in the banking system and attractive yields on government bond yields resulted in some degree of “lazy” banking, it says, referring to a focus on risk-free investing in government bonds instead of on corporate or retail loans.

“However, with the further sharp decline in government bond yields over the last 12 months and a flattening government bond yield curve, banks are being forced to look into loan asset growth,” it says.

“Banks are likely to cut lending rates further. The magnitude of the cuts is likely to be higher for consumer loans, where the spreads have been significantly higher,” it adds.

“After nine years of sub-par credit growth, we believe the Philippines is about to see a major credit cycle driven by a sharp decline in the cost of capital,” the analysts say in the report. Doris Dumlao, with INQUIRER.net



http://business.inquirer.net/money/breakingnews/view_article.php?article_id=43417

'06 budget deficit likely a low P62B

Gov't sees exchange rate at P48-P50 to $1

By Doris Dumlao
Inquirer
Last updated 03:46am (Mla time) 01/15/2007


THE national government likely ended 2006 with a budget deficit of about P62 billion, way below the target ceiling of P125 billion, according to a full-year financial performance assessment presented at a meeting of the inter-agency Development Budget Coordination Committee (DBCC) Friday.

The final figure will be officially announced on Feb. 14.

The DBCC also approved a revision in its exchange-rate assumption to factor in the peso’s recent surge to six-year highs against the dollar. For this year it assumes a rate of P48.00-P50.00 to the dollar, compared with its earlier forecast of P50.00-P52.00.

The national government kept its deficit in check last year largely due to underspending, especially as it operated on a rolled-over 2005 budget after Congress failed to pass the budget proposal for 2006. In October, Congress approved a supplemental budget of P46.9 billion, but officials said it came too late for line agencies to spend on their programs for 2006.

The latest official data show a January-November budget deficit of P58.32 billion, 52 percent below the target limit of P123.0 billion for that period.

At the meeting Friday, the DBCC agreed to slash the 2007 revenue collection targets of the Bureau of Internal Revenue (BIR) and Bureau of Customs to factor in reduced interest rates and a stronger peso exchange rate against the US dollar, although it kept the total revenue target for 2007 at P1.12 trillion and the target limit for the budget deficit at P63 billion.

The government also expects to generate P25 billion from the sale of its remaining stake in Philippine Long Distance Telephone Co. by April, the DBCC documents showed.

The BIR target collection is trimmed to P765 billion from P784 billion, and customs bureau target to P228 billion from P235 billion, the documents also showed.

One reason for cut in the BIR target is the fall in interest rates, which results in reduced collection of withholding tax on yields on government securities.

The DBCC forecasts 2007 interest rates based on the benchmark 91-day Treasury bills at 4.0-4.5 percent from the 5.5-6.5 percent projected during a review of economic assumptions last November.

The DBCC also noted, according to documents, “decelerating inflation, ample liquidity in the system and the sustained improvements in the national government’s fiscal position and the strong demand for government securities.”

“Strong foreign exchange inflows will continue to drive the expansion in domestic liquidity. Inflows are expected to come from overseas Filipino workers’ remittances as well as from foreign investments as a result of fiscal reform and improving economic fundamentals,” it added.

A reason for the cut in the customs bureau's target is the continued strengthening of the peso, which results in a lower peso equivalent of the bureau’s dollar collections of import duties.. With INQUIRER.net

http://business.inquirer.net/money/breakingnews/view_article.php?article_id=43414

Gov’t raises current account forecast to $ 5.4 B this year



By LEE C. CHIPONGIAN

The country’s current account is expected to be higher at $ 5.4 billion this year than original projection of $ 3.5 billion because of strong exports but lower imports.


The $ 5.4 billion is 54 percent higher than earlier assessments (November 2006) of $ 3.5 billion.

For 2006, the Bangko Sentral ng Pilipinas projects a current account of $ 4.9 billion from earlier estimates of $ 3.8 billion.

The revised external sector, according to the BSP, "shows a stronger current account (due) largely to higher exports of goods in 2006-2007 and lower imports in 2007."

Current account, which consists of transactions in goods, services, income and current transfers, measures the net transfer of real resources between the domestic economy and the rest of the world.

Based on the latest BSP numbers, current account surplus rose by more than threefold to reach $ 3.30 billion for the first nine months of the year, representing four percent of GDP.

BSP said this was driven by higher inflows in current transfers as well as lower deficit in the trade-in-goods and services accounts, which negated the higher deficit in the income account. The net inflows in the current transfers account increased by 13.7 percent to $ 9.60 billion due mainly to the robust inflows from remittances of non-resident OFWs.

Meanwhile, the trade-in-goods balance registered a narrower deficit of $ 5.15 billion, or an improvement of 15.2 percent from the year-ago level as the export growth of 16.9 percent exceeded that of imports at 11.4 percent. The key export drivers were manufactured goods such as electronics, garments, chemicals, mineral and petroleum products.

The net outflow in the services account narrowed by 52.6 percent to $ 507 million from $ 1.07 billion in the same period last year following the higher net inflows from travel, communication, computer and information and other business services.

Overall balance of position surplus in 2006 is expected to reach $ 2.8 billion from $ 2 billion earlier estimated due to strong current account and capital and financial account inflows.

The current account was upgraded to $ 3.8 billion because of OFW remittances, strong exports of goods (electronics, garments and mineral products) and services (travel and receipts from business process outsourcing and other IT-enabled services).

http://www.mb.com.ph/BSNS2007011584662.html

Banks’ bad loans ratio improves to pre-Asian crisis levels
By Des Ferriols
The Philippine Star 01/15/2007

[/URL]The Bangko Sentral ng Pilipinas (BSP) said there was a continued improvement in the reduction of bad loans by universal and commercial banks, with ratios improving to levels prior to the 1997 Asian financial crisis.

The BSP reported that at the end of November last year, the proportion of non-performing loans (NPLs) to total loans granted by universal and commercial banks (U/KBs) dropped to 6.96 percent from 8.76 percent in the same period a year earlier.

The banking industry’s bad loan ratio has declined substantially since several lenders took advantage of a law providing tax and investment perks to companies buying banks’ soured assets.

The NPL ratio peaked at 18.81 percent in Oct. 2001 after the Asian financial crisis.

Data from the BSP indicated that the decline in the NPL burden of the industry resulted from the 2.02-percent growth in the total loan portfolio and the decline in the actual volume of bad loans from P164.25 billion in 2005 to P140.98 billion in 2006.

The total loan portfolio, on the other hand, increased from P1.874 trillion at the end of Nov. 2005 to P2.026 trillion over the same period in 2006.

Excluding interbank loans, the BSP said the industry’s non-performing loans ratio likewise improved to 8.47 percent from 8.62 percent with regular loans marginally increasing by almost one percent.

Moreover, the BSP said there was also a decline in restructured loans against the total loan portfolio, with the ratio dropping to 4.63 percent compared with 4.75 percent the previous month and 5.53 percent a year ago.

Total non-performing assets (NPAs) of U/KBs also dropped from P348.79 billion to P309.2 billion last year, bringing the ratio to total assets down from 8.8 percent to 7.15 percent.

This means that the asset quality of the U/KB sector actually improved with a higher proportion of performing assets against non-performing assets.

The improvement was due both to the decline in NPAs and the growth in the gross assets of the sector from P3.963 trillion to P4.323 trillion last year.

[URL]http://www.philstar.com/philstar/NEWS200701150715.htm (http://www.pinoyexchange.com/forums/forumdisplay.php?f=252)

wohoo lots of good news for 2007 .

Yes, a lot of good news really. Ureshii desu yo! I'm really happy.

The projected GDP growth next year of 6.1% to 6.7% is indeed welcome. Since the 90s, growth has not exceeded 7% on an annual basis. The highest i think was the third quarter of 1996 (during Ramos's time) at 7.7%. A lot of things are needed to achieve this. I envy Vietnam and China whose economies have been growing at an average of 8% and 10% respectively year after year. This is because their economies are investment driven while ours is consumer driven (70% of our GDP). Mahirap talaga mag lure ng investors if our infrastructure remains as it is now.

Since now we have extra funds, maybe it is about time for the government to spend those on infrastructure, roads and additional access and diversion roads, bridges, ports and port facilities and review investment policies. And i hope Congress stops legislating wages and instead let market forces decide appropriate wage levels. Pag nag grow ang economy, natural lang naman na tataas ang sahod. Instead, government should review why the cost of doing business in our country is so high. Ayusin na nila infrastructure natin para mas mura ang cost of moving goods.

Well, if you drive to the countryside, you will see numerous projects being built. One of the brightest infrastructure being built is the clark-subic highway with a total of 92 kilometers. It is set to be finish within 2007. The big port in subic which is being reclaimed is ongoing...this will compete and decongest Manila port, and trucks going in and out of Manila will lessen going to the North, if the cargo will be dock at Subic instead of Manila to cover northern luzon. They should replicate this for the south bound cargos...and a good site would be the Batangas Port.

Of course in terms of air cargo, the subic and clark airport can greatly take over Manila runway which couldn't be expanded anymore. The new jumbo jets which will be operating next year will need a longer runway comparable to clark airport. Hopefully, the bullet train project from fort bonifacio to clark airport will be implemented soon. So people in Manila, will just check in fort terminal.

The government is doing everything, but the biggest hindrance are the businessmen themselves protecting their business interest. The primary concerns of expats are high cost of electricity, bureaucracy, infrastructure, NPA taxes, and political stability.

I think most of the above problems is being address by GMA...ang hirap lang talaga na hindi maayos is bureaucracy...kasi...key government officials appointed by her is the root cause of the problem..

There is a bullet train in the pipeline?

If key govt. officials, appointed by her ,are hindering implementation of projects why doesn't she fire them?

There is a bullet train in the pipeline?

If key govt. officials, appointed by her ,are hindering implementation of projects why doesn't she fire them?

well, you have to balance gratitude, politics, and implementation...which is hard sometimes...

The stock market is expected to resume its upward momentum this week, with the trading range expected to be between 2,850 points and 3,000 points as investors expect no negative catalyst that could strongly pull share prices lower.

AB Capital Securities said the market fundamentals remained positive as shown by the steady decline in interest rates and the strength of the peso against the dollar.

“We believe that positive catalysts that will eventually influence the market’s uptrend are slowly being realized. The latest drop in local rates will force investors to look for higher yielding assets such as equities,” AB Capital Securities said.

The peso’s continued strength will also augur well for the government’s coffers as every P1 appreciation against the dollar reduces the country’s debt by P5 billion.

“This effectively allows the potential savings to be channeled to more government infrastructure programs or for further cutdown in debt,” it said.

The government prepaid last year some of obligations such as the $575-million Brady bonds and a $70-million loan with the Asian Development Bank.

Stocks that have gained since the start of the year include Chemrez Technologies Inc., 2 percent; SM Development Corp., 26 percent; EEI Corp., 21 percent; and Jollibee Foods Corp., 5 percent.

Analysts, however, said political jitters ahead of the elections might cause investors to be wary and stay on the sidelines.

“With no fresh positive leads and considering that the market has had a strong run last year and that we are near the resistance level or upper band of the uptrend channel, we may see a negative bias prevail,” AB Capital Securities said.

The market fell 0.1 percent last week on profit-taking on blue-chip companies that experienced strong runup before the end of 2006. Weakness in regional markets mid-week also partly contributed to the market’s decline despite favorable local developments.

Power-related firms like PNOC-Energy Development Corp., First Philippine Holdings and Aboitiz Equity Ventures, however, outperformed last week, boosted by bullish investor interest in the government’s power asset privatization program.

EDC, First Philippine Holdings and Aboitiz attained new 52-week highs of P5, P73 and P9, respectively. Aboitiz Equity said its 100 percent subsidiary, Aboitiz Power Corp., planned to go public. The company plans to raise money for potential greenfield developments and join government assets bidding.

http://www.manilastandardtoday.com/?page=business3_jan15_2007
By Jenniffer B. Austria

also outlaw freedom of the press, and all opposition parties and groups.

see what will happen :lol: :lol:

Exactly. This is the price we pay for having more freedom. Other countries were under more repressive regimes, wherein they achieved economic advancement before fully tasting political freedoms, while we Filipinos opted to have political freedom first - it's like putting the cart before the horse, as a shrewd political analyst once observed. However that may be, we have to deal with it and make it work as best we can, balancing our freedoms and not letting the same overwhelm our efforts towards economic progress.

Well, if you drive to the countryside, you will see numerous projects being built. One of the brightest infrastructure being built is the clark-subic highway with a total of 92 kilometers. It is set to be finish within 2007. The big port in subic which is being reclaimed is ongoing...this will compete and decongest Manila port, and trucks going in and out of Manila will lessen going to the North, if the cargo will be dock at Subic instead of Manila to cover northern luzon. They should replicate this for the south bound cargos...and a good site would be the Batangas Port.

Of course in terms of air cargo, the subic and clark airport can greatly take over Manila runway which couldn't be expanded anymore. The new jumbo jets which will be operating next year will need a longer runway comparable to clark airport. Hopefully, the bullet train project from fort bonifacio to clark airport will be implemented soon. So people in Manila, will just check in fort terminal.

The government is doing everything, but the biggest hindrance are the businessmen themselves protecting their business interest. The primary concerns of expats are high cost of electricity, bureaucracy, infrastructure, NPA taxes, and political stability.

I think most of the above problems is being address by GMA...ang hirap lang talaga na hindi maayos is bureaucracy...kasi...key government officials appointed by her is the root cause of the problem..

On the other hand, she has also made many good appointments to government posts - like those in the DOT, AFP, PNP and other government departments. Her appointees to the Supreme Court are of unquestionable competence and integrity. I guess no one is beyond making some poor choices.

From the PDI:

November remittances rise 27.8%

Reuters
Last updated 06:25pm (Mla time) 01/15/2007


MONEY sent home in November by Filipinos working abroad rose 27.8 percent from a year ago, taking accumulated remittances to an annual record and putting the Philippines on course to surpass its 2006 target.

The central bank said on Monday Filipinos sent back $1.14 billion through official channels in November.

That took the total for the January-to-November period to $11.44 billion, up 17.63 percent from a year earlier and topping 2005's record total of $10.7 billion.

The central bank said November's remittances lead "to a strong possibility that the total flows for 2006 will exceed the whole year" projection of $12.3 billion.

"The strength of remittances during the eleven-month period may be attributed to the continued preference for Filipino workers by host countries and improved financial services made available by banks and other non-bank channels to remitters and their beneficiaries," it said in a statement.

More than eight million Filipinos work overseas and remittances form a large part of foreign exchange inflows.

The increase in remittances has been a factor behind the strength of the peso, which rose more than eight percent against the dollar in 2006...

http://business.inquirer.net/money/breakingnews/view_article.php?article_id=43533

Exactly. This is the price we pay for having more freedom. Other countries were under more repressive regimes, wherein they achieved economic advancement before fully tasting political freedoms, while we Filipinos opted to have political freedom first - it's like putting the cart before the horse, as a shrewd political analyst once observed. However that may be, we have to deal with it and make it work as best we can, balancing our freedoms and not letting the same overwhelm our efforts towards economic progress.

it is true. more freedom means more troubles sometimes.

Agriculture Secretary Arthur Yap yesterday said the government is set to sign 19 farm agreements with China involving investments worth P240.1 billion over the next five to seven years.

The deals, to be signed during the state visit of Chinese Premier Wen Jiabao , included the development of 1.2 million hectares for rice, corn, sorghum and other crops in the Philippines.

The biggest of the deals will be a memorandum of agreement that will allow the Fuhua Group Ltd. to invest $3.83 billion in one million hectares of land in the Philippines for higher-yielding corn, rice and sorghum, Yap said.

Yap said two agreements with total investments worth P43.4 billion will also be signed with the Beidahuang Group, the corporate state farm of the Hei Long Jiang province.

One of the agreements with the Beidahuang Group will be for the development of 200,000 hectares for rice, corn and other crops in Luzon.

Beidahuang is also expected to sign another agreement to set up a $120 million agro-industrial project with all-weather greenhouses for the production and export of flowers and off-season vegetables and fruits to Japan, Hong Kong and Taiwan.

Yap said five ethanol projects will also be signed, three of them involving Nanning Yongkai Industry Group.

One of the joint venture projects involving Nanning will produce 150,000 liters per day of ethanol. The production estimates of the two other projects were not immediately available.

Yap said an agreement would also be signed with the Agricultural Department of Guangxi Zhuang Autonomous Region to develop an initial 40,000 hectares for cassava and sugar in the Philippines to produce ethanol for export to China.

China and the Philippines, which are both trying to cut dependence on imported oil, are turning to crops that they grow in abundance such as sugar, cassava, corn and coconut oil to produce alternative bio-fuels.

Yap said a deal that would allow Filipino exporters to enter China’s more than $1-billion fruit market would also be signed during the visit of Premier Wen.

In an agreement to be signed with the Jiangnan Wholesale Market, the Philippines will be allowed to sell fruits such as papaya, bananas, pineapples and mangoes in the largest fruit and vegetable area in China.

"These agreements are expected to further reinforce existing trade and investment ties between Manila and Beijing and herald what China has described as the golden age of bilateral relations between our countries," Yap said in a statement. -Reuters

Originally Posted by heathcliff


[QUOTE=intramuros;11313656]it is true. more freedom means more troubles sometimes.

Some forumers saying that freedom means more troubles so we need an authoritarian government.

Implying that we must have a government like Singapore, a leader like Lee Kuan Yew. Or even compared our country to Malaysia.

But we cannot compared the Philippines to Singapore or to Malaysia, we have a different beginnings.

First about Singapore. The people who struggled to have a good life and good government were mostly the Chinese and the Indians. I have worked and lived in Singapore from 1970 to 1985. My Chinese friends there relate that their parents, always related to them that they experienced extreme hardship in China, and later when they migrated to Singapore. And they were glad to have a bowl of rice even once a day just to calm their stomachs. Lee Kuan Yew was one of the sons of those poor chinese migrants. Because of their experiences they don't mind to be under an authoritarian government knowing that it will results to food and jobs for them. Malaysia with their Chinese and Indians migrant citizens were more or less has the same situation with Singapore.

After the racial riotings in the late 60s in both Malaysia and Singapore, their government leaders strive to have a good government and strong economy so that their succeeding generations will not suffer the hardship they have experienced. And their citizens just followed their authoritarian government knowing that they were generally honest, not corrupt, and working for the good of their nation.

About the Philippines, though the peoples have suffered extreme hardship during the 2nd world war, however the moral fibers were also damaged to great extent. After the war the government since the time of Pres Roxas was paralysed by corruptions in the government, then the Marcos dictatorship, were the government tried to instill discipline to the people, imprisoning or killing their political opponents, while at the same time Marcos and his cronies plundered the government.

Corruptions during Cory's time was not abated either, another elite who want others to make the supreme sacrifice while their landed family don't even want to follow the Land Reform Law. Then the Ramos govt also stink with corruptions, behest loans by high government officials from government owned banks like DBP that never get paid, Amari land deal, and the billion pesos Expo Filipino at Clark. The Estrada govt was also a joke, an elite who used and fooled the poor masa while he engaged in plundering the govt.

And now with our present govt of PGMA, the Garci Tape with the alleged vote rigging in the last election was not fully explained, then the Bolante Fertilizer, the mysterious killing of some member of the Press and the Leftist organizations, who will believe them now. (Btw, I don't believe either the opposition parties who were just the birds of same feather like the rest of all politicians.)

With the above reasons you cannot say to put the Cart before the horses, or limit the freedom and have an authoritarian government. Who will lead the authoritarian government ? the same kind of elite group and the same traditional politicians who were all tainted by corruptions ?

No it cannot be done, knowing Pinoy has rebellious mentality especially if they know that those who will govern them in an authoritarian government were the same bunch of corrupt politicians and bureaucrat from whatever political groups. It will be an endless coup détat and mini revolt that will greatly affect our economy and the livelihood of the poor. If anything goes wrong in our country the elite and the very rich will just fly out of the country. And the middle class and the poor will suffer the consequence of bad governance.

Perhaps the only way to change our country is by radical change. However even a rightist coup d'etat may not result to a peaceful and good government since their opponents will fight to the bitter end.

A revolution from the radical Left may not come at all since the leftist group were as divided like the other group in our society. The stupid purges by a dogmatic leader greatly weakened the group. The moderate Left cannot succeed either without the support of the masa. But some masa were mostly controlled by trapos, some were Artista worshipper, and others just don't care like the rest of Pinoys from whatever social classes.

So I don't know.. we Pinoys have only 2 choices, The Devil or the deep blue sea. :)

Just joking ....



from the Devil's Advocate..

Global house prices continued to rise rapidly in 2006, but at a slower pace than in 2005. Northern Europe leads the house price boom.

Northern European countries saw the highest house price rises in 2006, among the 40 countries monitored by the Global Property Guide (which maintains the world's single biggest collection of house price indices).

Leading the charge was Estonia with an impressive 54% house price increase in 2006. This followed average dwelling price rises of 57% in 2005, and 25% in 2004.

Estonia was followed by Denmark which experienced 23% house price rises in 2006, then by Norway (14%) and Ireland (13%). Other countries in northern Europe also had impressive house price increases, including Sweden, UK, and Finland.

Early indicators suggest that Latvia's strong house price growth will continue in 2006, following 27% house price rises in 2005. This will be verified as soon as official statistics come in.

Outside Europe, South Africa, 2004's star performer, continues to experience strong house price growth, with 2006 house price rises of 12.7%. However, this is a far cry from the 33% increases recorded in 2004, and the 17% rises of 2005.

Countries attracting immigrants are also experiencing strong property price increases, particularly Canada (11%), New Zealand (10%) and, to a certain extent, the US (8%) and Australia (6.5%).

Central Europe lags behind

Southern Europe, the favorite destination of second home buyers and holidaymakers, is also experiencing strong house price increases.

France experienced a 12.5% house price increase from 3Q 2005 to 3Q 2006, while Spain registered a 10% rise in 2006 and Italy 6.6%. However property prices in Portugal dipped marginally (-0.4%), following a lackluster recent past.

Austria's housing renaissance continued, with 6.8% price increases in Vienna, after 8% price rises during 2005.

Most countries in Central Europe, however, remained unexciting. 2006 saw very small price increases in Switzerland (2.9%), Luxembourg (2.9%), Germany (2.8%) and Poland (2.2%).

Philippines leads Asia

The Philippine real estate market registered the highest price growth in Asia during 2006 at 11.6% (Philippine property prices had dropped most after the 1997 Asian Crisis).

Indonesia's house prices rose 8.76%, from 3Q 2005 to 3Q 2006. However Indonesian inflation was high in 2006 at 13%, so in real terms Indonesian house prices actually fell.

Singapore's residential property price index rose 7.6% y-o-y to 3Q 2006, the city state's highest price increase since 2000.

Malaysia and Taiwan are still muddling through, and saw only marginal price increases of 1.4% and 1.1%, respectively.

The previous strong house price growth in Thailand during 2004 and 2005 came to an end, as the political crisis spilled over to the economy, and 2006 saw house price falls of almost 1%.

Japan has not seen the end of more than a decade of property price falls. Commercial property values are rising in Tokyo and some major cities, but in the rest of the country property prices are still static.

The global property boom is slowing

Many more countries experienced nominal house price increases in 2006, than price falls. Yet the pace of housing price increases in 2006 was generally down on 2005.

Several countries experienced quite significant slowdowns in their housing markets, without seeing actual price falls. Countries in this category, where the price rise rate dropped by more than five percentage points, include Poland (6.6 percentage point reduction on previous rate of house price rise), US (5.6% reduction on previous rate of house price increase) and New Zealand (5.02% reduction on 2005's price-rise rate).

However, US house prices showed no actual decline in 2006, either during the year, or from one quarter to the next, according to the OFHEO house price index, despite some press reports to the contrary.

It is tempting to attribute the slowdown in many countries to interest rate rises, especially in Europe and the US.

However, other forces came into play in some countries. Israel (typically not included in most "global" house price reports) experienced price declines in 2006 (-4%), after a recovery in 2005. The price fall can be attributed to the war with Hezbollah in Lebanon, and other political troubles.

The dramatic upsurge of Hong Kong property prices in 2003 and 2004, and sudden cooling down in 2005 and 2006, also deserve a better explanation than the usual speculative bubble theory.

The Global Property Guide (http://www.globalpropertyguide.com/)is a research publication and web site for the high net worth investor in residential property.


More details about THE GLOBAL PROPERTY BOOM IS SLOWING BUT WILL A BUST FOLLOW? (http://www.globalpropertyguide.com/) (opens a new window)

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=3664&cat=44-0-0

On the other hand, she has also made many good appointments to government posts - like those in the DOT, AFP, PNP and other government departments. Her appointees to the Supreme Court are of unquestionable competence and integrity. I guess no one is beyond making some poor choices.

Yes, she made good choices too...I did not say that all her appointments were bad eggs. Sometimes, I just don't know how she can handle all the details of every government agency and check their performances...I'm running a small business and yet, there are times that one of my people is doing something that I'm not aware off...

Some forumers saying that freedom means more troubles so we need an authoritarian government.

Implying that we must have a government like Singapore, a leader like Lee Kuan Yew. Or even compared our country to Malaysia.

But we cannot compared the Philippines to Singapore or to Malaysia, we have a different beginnings.

...

With the above reasons you cannot say to put the Cart before the horses, or limit the freedom and have an authoritarian government. Who will lead the authoritarian government ? the same kind of elite group and the same traditional politicians who were all tainted by corruptions ?

No it cannot be done, knowing Pinoy has rebellious mentality especially if they know that those who will govern them in an authoritarian government were the same bunch of corrupt politicians and bureaucrat from whatever political groups.



Um, we were just discussing why things are the way they are; we are neither advocating an authoritarian form of government nor implying that we need it.

Yes, she made good choices too...I did not say that all her appointments were bad eggs. Sometimes, I just don't know how she can handle all the details of every government agency and check their performances...I'm running a small business and yet, there are times that one of my people is doing something that I'm not aware off...

True. The president is not supposed to micromanage; department heads are appointed precisely for this purpose, being deemed to have the necessary expertise for their respective fields of work, expertise that the president does not possess. The task of the president is simply to oversee and if necessary, substitute her judgment for that of her alter ego, or correct mistakes committed by the latter, in order to ensure that what they are doing is consistent with her governance agenda.

Unfortunately, many people expect the president to know everything about everything and blame her for everything that goes wrong.

From the Philippine Star:

Guarantor
FIRST PERSON By Alex Magno
The Philippine Star 01/16/2007

The economist Noel de Dios pointed out something the other day that I hadn’t realized: for the first time in its recorded economic history, the Philippines has posted a 3% per capita growth for five continuous years.

In the past, our economy moved through short cycles of boom and bust. We have a short spurt and then descend into one crisis or the other. Which is why, over the long stretch, our average growth in per capita income was dismal. So dismal that the rest of Asia just breezed past us.

Recall that, after the 1986 Edsa Revolution, the economy roared on the strength of excess production capacity and pent-up consumer demand after the long recession in the waning years of the Marcos dictatorship. Then the power shortages happened. The bloody 1989 coup attempt led by Gringo Honasan torpedoed whatever investor confidence was built up by the surge of good will after a peaceful revolution.

Crippled by a power shortage, mounting debts, glaring economic mismanagement and unending political turbulence, the economy again went into a tailspin.

After power sufficiency was restored, the economy began to stir once more in 1994 on the back of basic policy reforms introduced by the Ramos administration. The battlecry of achieving a tiger economy by year 2000 actually resonated across a large swath of the population.

Then, by the second half of 1997, the full weight of the Asian financial crisis came crashing down on us. The peso’s value was halved. Inflation swept across the land. Businesses shut down. Unemployment spiraled. Misery multiplied ceaselessly.

A confused and disappointed population rejected the usual politics that constantly seemed to lead us to failure. A large number of desperate Filipinos turned instead to a movie actor who preached instant relief from poverty. Joseph Estrada, the chief executive with no work ethic to speak off, presided over an economy that became more anemic by the day.

It was like Nero’s Rome. The former president drank the most expensive wine, tolerated the most scandalous cronies and observed no discipline in attending to the duties of his office while the poor became more miserable and the nation’s coffers drained.

True, the stupid constitutional order put together by Cory Aquino’s "revolutionary government" condemns every chief executive to minority president status and the bicameral legislature to chronic gridlock. But that does not excuse the quality of work Estrada put in while he was there.

No president has been put as severely under siege as Gloria Macapagal Arroyo. She has had to work with a dysfunctional legislative branch that had the gall to indulge in endless political carnivals but not the guts to push the economic reform measures with promptness.

It has been the President who accepted the political toll to enforce the painful but indispensable reforms. The most notable has been the expanded VAT, the keystone to a regime of fiscal discipline that involved closing the deficit, cutting the debt and holding back on public spending.

A tightwad government earns no rave reviews from the populists and those who make careers out of moaning and groaning. But the vital building blocks for sustained economic expansion are being put in place.

Last Friday, I listened to a briefing on the investment outlook for 2007 done by the economists of Lehman Brothers. The briefing was comprehensive and competent, done by the best in the business. It looked at the risk, opportunities and disposition of the financial markets and emerging economies across the globe.

The economists of Lehman Brothers were extremely bullish about the Philippines’ prospects this year. They note the strength of our banking system due to adept regulation.

The economists of Lehman Brothers were particularly impressed by the new fiscal regime in the country. They note the strength of the currency, the low inflation regime, the encouraging interest rate situation and the fact that the public debt dynamics is working to our favor with nominal GDP growth well above the cost of government borrowing.

They believe that the Philippines deserves a credit rating upgrade. They are confident that should be forthcoming this year. An upgrade will encourage a surge in direct investments in our economy that should help boost our growth. That surge in investments is made even more likely by the fact that there is excess liquidity in the global economy and not enough investments sites with as encouraging prospects as the Philippines.

The record five years of continuous growth in our per capita income noted by Noel de Dios is not about to end this year. To the contrary, the better bet is that the growth will rapidly escalate, helping us to bring down to even more manageable levels our debt-to-GDP ratio – on top of already substantial improvements the past two years.

While listening to the economists of Lehman Brothers heap praises on our achievements in building fiscal discipline and establishing solid ground for sustained economic expansion, I could not help thinking how our chaotic politics could possibly become the bullet by which we shoot ourselves in the foot again – as we have habitually done for generations.

In the bad old days, the short cycles of boom and bust discouraged long-term investments attracted only carpet-baggers. The unpredictability of our policy architecture resulted in adverse selection in our economy, favoring hustlers over serious builders of enterprise.

As we have corrected our fiscal regime and brought currency stability back to our lives, will we be able to attract long-term investors?

When one takes out a loan, it is either the lenders are secured by collateral or by guarantors. In the case of what Lehman Brothers calls a "virtuous cycle" of fiscal discipline and investment attractiveness, who will guarantee the continuation of this regime of prudential fiscal management into the long term?

It could not be individual Cabinet members who serve at the pleasure of presidents elected in a constitutional order that gives them tremendous responsibility but little means to get things done. It could not be the weak political parties nor the Supreme Court that has consistently shown very little grasp of economic principles. It could not be a whimsical electorate that chooses leaders on the basis of the least common denominator nor populist movements seduced by the politics of instant gratification.

From the Philippine Star:

Guarantor
FIRST PERSON By Alex Magno
The Philippine Star 01/16/2007

The economist Noel de Dios pointed out something the other day that I hadn’t realized: for the first time in its recorded economic history, the Philippines has posted a 3% per capita growth for five continuous years.

In the past, our economy moved through short cycles of boom and bust. We have a short spurt and then descend into one crisis or the other. Which is why, over the long stretch, our average growth in per capita income was dismal. So dismal that the rest of Asia just breezed past us.

Recall that, after the 1986 Edsa Revolution, the economy roared on the strength of excess production capacity and pent-up consumer demand after the long recession in the waning years of the Marcos dictatorship. Then the power shortages happened. The bloody 1989 coup attempt led by Gringo Honasan torpedoed whatever investor confidence was built up by the surge of good will after a peaceful revolution.

Crippled by a power shortage, mounting debts, glaring economic mismanagement and unending political turbulence, the economy again went into a tailspin.

After power sufficiency was restored, the economy began to stir once more in 1994 on the back of basic policy reforms introduced by the Ramos administration. The battlecry of achieving a tiger economy by year 2000 actually resonated across a large swath of the population.

Then, by the second half of 1997, the full weight of the Asian financial crisis came crashing down on us. The peso’s value was halved. Inflation swept across the land. Businesses shut down. Unemployment spiraled. Misery multiplied ceaselessly.

A confused and disappointed population rejected the usual politics that constantly seemed to lead us to failure. A large number of desperate Filipinos turned instead to a movie actor who preached instant relief from poverty. Joseph Estrada, the chief executive with no work ethic to speak off, presided over an economy that became more anemic by the day.

It was like Nero’s Rome. The former president drank the most expensive wine, tolerated the most scandalous cronies and observed no discipline in attending to the duties of his office while the poor became more miserable and the nation’s coffers drained.

True, the stupid constitutional order put together by Cory Aquino’s "revolutionary government" condemns every chief executive to minority president status and the bicameral legislature to chronic gridlock. But that does not excuse the quality of work Estrada put in while he was there.

No president has been put as severely under siege as Gloria Macapagal Arroyo. She has had to work with a dysfunctional legislative branch that had the gall to indulge in endless political carnivals but not the guts to push the economic reform measures with promptness.

It has been the President who accepted the political toll to enforce the painful but indispensable reforms. The most notable has been the expanded VAT, the keystone to a regime of fiscal discipline that involved closing the deficit, cutting the debt and holding back on public spending.

A tightwad government earns no rave reviews from the populists and those who make careers out of moaning and groaning. But the vital building blocks for sustained economic expansion are being put in place.

Last Friday, I listened to a briefing on the investment outlook for 2007 done by the economists of Lehman Brothers. The briefing was comprehensive and competent, done by the best in the business. It looked at the risk, opportunities and disposition of the financial markets and emerging economies across the globe.

The economists of Lehman Brothers were extremely bullish about the Philippines’ prospects this year. They note the strength of our banking system due to adept regulation.

The economists of Lehman Brothers were particularly impressed by the new fiscal regime in the country. They note the strength of the currency, the low inflation regime, the encouraging interest rate situation and the fact that the public debt dynamics is working to our favor with nominal GDP growth well above the cost of government borrowing.

They believe that the Philippines deserves a credit rating upgrade. They are confident that should be forthcoming this year. An upgrade will encourage a surge in direct investments in our economy that should help boost our growth. That surge in investments is made even more likely by the fact that there is excess liquidity in the global economy and not enough investments sites with as encouraging prospects as the Philippines.

The record five years of continuous growth in our per capita income noted by Noel de Dios is not about to end this year. To the contrary, the better bet is that the growth will rapidly escalate, helping us to bring down to even more manageable levels our debt-to-GDP ratio – on top of already substantial improvements the past two years.

While listening to the economists of Lehman Brothers heap praises on our achievements in building fiscal discipline and establishing solid ground for sustained economic expansion, I could not help thinking how our chaotic politics could possibly become the bullet by which we shoot ourselves in the foot again – as we have habitually done for generations.

In the bad old days, the short cycles of boom and bust discouraged long-term investments attracted only carpet-baggers. The unpredictability of our policy architecture resulted in adverse selection in our economy, favoring hustlers over serious builders of enterprise.

As we have corrected our fiscal regime and brought currency stability back to our lives, will we be able to attract long-term investors?

When one takes out a loan, it is either the lenders are secured by collateral or by guarantors. In the case of what Lehman Brothers calls a "virtuous cycle" of fiscal discipline and investment attractiveness, who will guarantee the continuation of this regime of prudential fiscal management into the long term?

It could not be individual Cabinet members who serve at the pleasure of presidents elected in a constitutional order that gives them tremendous responsibility but little means to get things done. It could not be the weak political parties nor the Supreme Court that has consistently shown very little grasp of economic principles. It could not be a whimsical electorate that chooses leaders on the basis of the least common denominator nor populist movements seduced by the politics of instant gratification.

Business (as of 2:59 PM today)

RP stocks hit highest level in nearly a decade

Stocks on Tuesday rose to their highest level in nearly a decade, led by the country's biggest business group Ayala Corp., boosted by hopes of faster economic growth this year, analysts said.

The Philippine Stock Exchange composite index rose 1.7 percent, or 51.23 points, at 3,070.29, its highest close since April 3, 1997.
In the broader market, gainers beat losers, 71 to 32, with 61 stocks unchanged.

Volume was 2.53 billion shares valued at P4.43 billion.

Harry Liu, president of Summit Securities, said the market will likely sustain its gains in the coming sessions.

"We should expect the market to reach 3,100 before the weekend," he said. "I also expect the market on the first quarter to reach 3,250 before the Chinese New Year," he added.

Last week, the government raised its target for economic growth this year to 6.1-6.7 percent from an earlier 5.7-6.5 percent due to an expected hike in government capital spending, higher exports and sustained remittance inflows.

The government's economic managers were banking on increased spending on infrastructure, healthcare and education to boost the economy after lawmakers agreed last week on a higher-than-anticipated version of this year's proposed P1.126 trillion budget.

Ayala Corp., which is engaged in banking, telecommunications, and property development, gained 4.3 percent or P25 at P610.

EEI Corp. rose P0.35 to P4.15. The construction firm announced that it has sold its property assets in Quezon City and Batangas for P1 billion to pay debts, boost its capital, and modernize its contruction equipment.

SM Investments Corp. went up P17.50 to P340.

Metropolitan Bank and Trust Co. (Metrobank), the country's biggest lender, climbed P1 to P56.

Ayala Land. Inc., the nation's biggest property developer, rose P1 to P16.50

First Gen Corp. jumped P1 to P56.

ABS-CBN Broadcasting Corp., the country's largest media conglomerate, rose 6.7 percent, or P1.25, to P20 after it confirmed that its ABS-CBN Global unit was planning to list on the Singapore Stock Exchange. - Judith Balea

It seems that the 6.1 to 6.7% target growth rate this year is achievable. :cheers:

we need more FDI's to achieve that growth target.

we need more FDI's to achieve that growth target.

As much as Tourism continue to grow, OFW remittances, agriculture output we can achieve that. IMO

^^or even be outperformed! (Oooh, would that mean a 7++ per cent growth?)

8 - 10% growth could be achieve if we discount all the problems the country now faces. However, though I believe that sooner or later, our country would grow at that rate too just as how most other asian countries have in the past and now.

GMA had no choice but to impose E-VAT to hold back a budget deficit that started and went berserk during her administration. So when she got into power, she created a huge problem that she is now trying to solve. So hurray for a president for solving a problem she created.

To solve the problem she created she had to get the backing of a used to be united political groups under the administration coalition. Don't forget that it was under Sen. Frank Drilon that the coalition pushed and passed the EVAT bill in the Senate. Sumingaw ang hello Garci and it divided the nation. The Senate turned opposition and she tried to abolish it via Cha-cha. Now who is to blame for the legislative gridlock? Sino pa kundi kundi yung nag-hello kay garci at tapos nag-sorry.

GMA inherited the culture of corruption but instead of fighting it, she had no choice but to perpetrate it to keep herself in power. Result: Good people who fight corruption gets booted out of public service.

But hey, in a democracy the way to punish bad performance is through elections. My single vote will help one opposition congressman and I hope he wins. If we get 80 of them elected in May then GMA is toast.

Even if GMA is the worst president, I wouldn't trade her with anybody right now? more of Erap...I would vote for Aling Mameng against Erap who is a drunkard, gambler, etc...

Oust GMA? funny...then Noli takes over..same party...and Noli is hawak sa leeg ni GMA...waste of time and destroying the progress of this nation...what is pathetic is people who will vote for the opposition just to uproot gMA...

Even if GMA is the worst president, I wouldn't trade her with anybody right now? more of Erap...I would vote for Aling Mameng against Erap who is a drunkard, gambler, etc...

Oust GMA? funny...then Noli takes over..same party...and Noli is hawak sa leeg ni GMA...waste of time and destroying the progress of this nation...what is pathetic is people who will vote for the opposition just to uproot gMA...


Many don't like the return of Erap groups and the continuation of GMA nor
Noli.

How about if we support both the military rightist and the legal leftist,
stripped them of their ideologies and you will see that they were extreme nationalist to the bones.

That is the only alternatives in choosing between the Devil and the Deep blue sea.

Opinyon lang po.

:cheers: :cheers:

^^ :lol:

How about tying both of our hands to horses and instead of their usual ideologies (making them go right and left), we strip them of their ideologies and make them go in an endless circle? :lol: :lol: :lol:

Look what happened to thailand..very good fundamentals...nasira nung nag coup....any transformation of power is dangerous..more of a coup or leftist...

IN my opinion..dapat igisa ang mga rightist and leftist at gawing kilawin...

kilawing buwaya? hehehe

Well I like GMA to continue ....

I should have done it with FVR...but instead..my principles lead me to luneta rally against charter change lead by Cory....and look what happened when we cannot prevent Erap from taking over....nasayang nanaman 3 years and 3 years of gma fighting them...

Look what happened to thailand..very good fundamentals...nasira nung nag coup....any transformation of power is dangerous..more of a coup or leftist...

IN my opinion..dapat igisa ang mga rightist and leftist at gawing kilawin...

who said about a coup ? .... what I mean is if the military rightist and the legal left, and party list if they can get more seats in the congress and senate.

IMHO ang dapat igisa ay yaong mga supporters ng mga corrupt politicians

from both dominant parties......opinyon lang po.... :cheers:


from the devil's advocate

Did you know party list representative who get voted also receive pork barrel? Gabriela, Bayan Muna and the other one (yung kay Etta Rosales). They were asked to sign a manifesto denouncing armed means as an agent for change. Tapos ayaw nila gawin. Si Etta lang ata pumayag. Dont you realize now why those militants can afford to do ralllies almost daily? (wala ba sila hanapbuhay?) I hope you understand me if i suspect that they are funded.

i thought this was interesting
from Inquirer

Arroyo: ‘Singapore to pattern tax reform system after RP’

By Lira Dalangin-Fernandez
INQUIRER.net
Last updated 07:07pm (Mla time) 01/17/2007

MANILA, Philippines -- Impressed with the government’s revenue generation, Singapore plans to pattern its tax reform system after that of the Philippines, President Gloria Macapagal-Arroyo said Tuesday.

Arroyo, speaking at the induction ceremonies of the Financial Executives Institute of the Philippines in Makati City, said Singaporean Prime Minister Lee Hsien Loong disclosed the plan during talks at the recent Association of Southeast Asian Nations (ASEAN) and East Asia summits in Cebu.

"The prime minister of Singapore is also going to do tax reform this year immediately after the ASEAN summit; he said he's copying the Philippines," Arroyo said

Arroyo said she told Lee “about the efficiency of our VAT [Value Added Tax] collection, that we had collected more in VAT revenues than we had projected."

She said the government has achieved the 80 percent tax collection efficiency it set after the enactment of the laws on VAT and sin taxes in late 2004.

RP named Asia’s best borrower
LIKHA CUEVAS
The Manila Times Reporter


Despite a reduction in fresh foreign commercial loans last year, the Philippines was named Asia’s best borrower in 2006, for being a “disciplined” and “savvy issuer,” a Hong Kong-based financial magazine said.

“Indeed, the Philippines is now regarded as a savvy issuer, exhibiting a level of sophistication that was absent in the past. It is disciplined in not upsizing its deals and is very careful when re-opening outstanding bonds,” The Asset, which handed the awards in Hong Kong last week, said.

The magazine cited bankers’ perception that National Treasurer Omar Cruz and his team exercised good timing when on a borrowing spree.

The government tapped the international market twice last year, raising $2.85 billion as part of its foreign borrowing program to help plug the country’ projected P125 billion budget deficit.

It initially planned to raise about $3.1 billion from external sources but decided to cut back its foreign and domestic borrowing on the back of a comfortable cash position arising from the reenactment of the 2005 budget last year. Under its program, the government had to source 52% of its funding needs from local creditors, and the remaining 48% from abroad.

In January 2006 the government raised $2.1 billion from the sale of bonds, or IOUs. The transaction attracted $15 billion worth of bids from investors. This was followed by another deal in July, when the government sold $750M worth of debt papers in two tranches. Investors flocked to the auction as they were willing to shell out $12 billion for the debt papers on offer.

Apart from its fresh borrowings, the government likewise retired part of its older debt by redeeming these in exchange for new IOUs that carry lower interest rates and longer maturity dates.





http://img442.imageshack.us/img442/6553/markiibluesiggyrm7.png (http://imageshack.us)

sigh............ those were the goodoldays when we were the ones being copied. Lets turn it all around again under GMA,its a good start.

Did you know party list representative who get voted also receive pork barrel? Gabriela, Bayan Muna and the other one (yung kay Etta Rosales). They were asked to sign a manifesto denouncing armed means as an agent for change. Tapos ayaw nila gawin. Si Etta lang ata pumayag. Dont you realize now why those militants can afford to do ralllies almost daily? (wala ba sila hanapbuhay?) I hope you understand me if i suspect that they are funded.

pork barrel were suppose to be development fund which the top brass in the govt prefer to be under the control of politicians, you know why....percentage and laundered money in their pockets, which later they will stashed in their foreign bank accounts.

there were allegations that the pork barrel of the partyl list members were used in the demo rallies etc.

which is better pork barrels to end up in the foreign bank account of corrupt politicians or used as funds for holding peaceful assembly in the streeet to make the people aware of the concerned nationalistic groups against corruptions in the govt, plight of poor pinoy, and many various issues which is not published in the newspapers. ?

Those rallies by admin and opposition's political parties were of course funded, since everybody knows they make " hakot " of people from the depressed areas. Of course those poor people have to be paid, they got no money for transport and meals.

Only the rallies organized by the nationalist and leftist groups, were not funded and participants paid for their own transport and meals. During my college days I usually join those rallies and nobody paid me to join the rallies, it is my own conviction and beliefs that made me endure hunger, and risk of being hit by truncheon.

Most of the party list and nationalist rallyist were mostly students (pag asa ng bayan) and I guess they joined the rallies after their classes. Some of the rallyist maybe employed but of course I expect that they joined after their works. Some of those were unemployed and they joined the protest rallies because of nationalism and desperation of how our country is going down due to the don't care attitude of the elite and the rich in tolerating corruptions in the government.

The students activist of the 70s were no longer joining the protest rallies as they have done their share in fighting for a good cause, but when worst come to worst they will be out in the street to rejoin the fight against injustice and corruptions.

It seems that most of you have lived a shelter lives and you cannot realize that many Pinoys were still nationalistic and willing to sacrifice their lives and join rallies, the only peaceful way for them to express their grievances, the other alternatives is to go up in the hills and mountain and join the radicals.

You must be thankful that there were party list and nationalistic groups they were the safety valves between the elite/rich, traditional politicians, and the rabbles of Edsa 3 who were used by dirty politicians like Erap who wreak havoc on the eve of May Day about 5 years ago.

I was there that time in Mendiola and in San Beda compound, and I have experienced at close hand the ugly side of Peoples Power - the Mob Power.

sigh............ those were the goodoldays when we were the ones being copied. Lets turn it all around again under GMA,its a good start.

my dear Marites if you run for public office, I will vote for you... together with Mike Defensor and
Frank Escudero...

I also wish there will be technocrats and economist who will join the electoral fray and not only those disgusting politicians.

^^ :lol:

How about tying both of our hands to horses and instead of their usual ideologies (making them go right and left), we strip them of their ideologies and make them go in an endless circle? :lol: :lol: :lol:

That's a good one. :lol:

the plan of Singapore to copy the Philippines' tax reform system is indeed a good news. She said the government is expecting only an 80-percent collection rate in the implementation of the 12 percent value-added tax, but revenues collected exceeded expectations... when other countries try to do the same thing weve done for the tax system, it could be a sign that bigger countries would have more confidence to our government and economy and thus return it through more investments in the country. isn't that positive for us?:)

Rallies? Tell me about it Avenger. I joined rallies during my student days. Have you experienced being teargassed? It temporarily blinds you and induces you to throw up. At kung masobrahan ka, puwede ka mamatay. That is why we always bring water. My boardmate is a member of militant student groups. May pula pa syang banner na tinatago sa boarding house. Let us not play personal and allege other posters to be somebody based on our impressions. My convictions are based on my experiences in life and my observations of how our politicians managed our country. Like you, saya juga pergi luar negeri supaya dapat gaji lebih besar. Lebih bagus kalau saya di dalam negeri saja tapi saya jugah mau hidup yang enak.

Our country does not have a monopoly of corrupt practices in the world. Our neighbors have corrupt practices too but why are they growing fast. Because their politics is not as poisonous as ours. Inspite of their imperfect system, they are able to produce results and help lift the quality of life of their peoples. They are supportive of their leaders and they are united. Even though they have disagreements, at the end of the day, they support their government. Look at Malaysia, their UMNO is also racked by a lot of allegations. But at the end of the day, they unite for the good of their country.

They might not be as "ang galing galing talaga" as we Filipinos. But why, inspite of their "less galing" sa atin, why are they forging ahead, and doing so really fast? If you look at their country and how they have improved themselves, mapapabilib ka talaga. Eh, tayo, ang galing galing natin, ang tali talino pero bakit hindi tayo umuusad? Sa ating kalagayan, napapa bilib ba natin ang mga dayuhan na pumunta dito sa atin?

Now, the opposition is planning to impeach Gloria. Just wait when they achieve the numbers after the elections, they will do it. That is not the kind of opposition i want. I want a responsible fiscalizing opposition. There are a lot of things GMA could have done better. But given the choice, would you place your bets on the Marcos and Erap politicians?

And the militants, sana yung pork barrel, kung interesado sana sila sa ikakabuti ng bansa, nilagay na lang nila sa developmental and community building projects. Instead of funding the NPA, nilagay na lang nila sa development. They are the ones who preach a lot, i know, because i believed in them during my student days. They should have placed it in projects that build not destroy. Diyan tayo naiiba sa other ASEAN countries. They pour money where it should be. Tignan mo pati Vietnam, mas maganda na infrastructure sa atin.

But like you, i never lose hope. This is my country and i hope what is best for it. Let us move on and help our country prosper.

GMA predicts 2007 ‘boom year’ for RP economy

By DAVID CAGAHASTIAN

President Arroyo yesterday predicted 2007 to be the "boom year" for the Philippine economy, with the new commitments for Chinese investments in Philippine industries and regional efforts towards the integration of the Association of Southeast Asian Nations (ASEAN).

Mrs. Arroyo made the prediction in a speech during the induction of officers of the Financial Executives Institute of the Philippines in Makati City.

Trade Secretary Peter Favila said Mrs. Arroyo’s optimism comes from the gains made by the Philippines during the 12th ASEAN Summit in Cebu, and the official visit made earlier this week by Chinese Premier Wen Jiabao.

"The proposed economic integration of the ASEAN will result in a lot of benefits for the Philippines because this will open up the markets of the ASEAN to Philippine industries," Favila said in a press conference in Malacañang.

The planned economic integration of the ASEAN was reaffirmed during the 12th ASEAN Summit in Cebu this week. The summit also called for the full economic integration of ASEAN members with their five dialogue partners by 2015.

"The visiting Chinese Premier has noted the golden age of partnership between the Philippines and China, and he has expressed willingness to bring about concrete benefits from this strong bilateral economic relationship," Favila said.

Wen made an official visit to the Philippines earlier this week during which he witnessed the signing of several agreements between the Philippines and China, mostly on Chinese commitments to invest in the Philippines, especially in the industries of infrastructure and agriculture.

Meanwhile, Agriculture Secretary Arthur Yap yesterday said 17 agribusiness agreements worth R196.7-billion have been signed by the Philippines and China.

Two more agreements are still pending, and the official signing of these deals may come later this year, Yap said.

The 17 agribusiness agreements covering 1.2 million hectares of farmlands were sealed by the Department of Agriculture (DA) and private Chinese corporations at the close of Wen’s state visit to the Philippines, he said.

Still pending approval are two deals with China’s largest agricultural investor, the Beidahung Heilongjiang Group, which Yap said "are worth R43.4 billion, bringing to R240 billion the value of all investment deals with Beijing in 2007."

"These investment deals and pledges buttress what Beijing has called the golden age of bilateral relations between the Philippines and China, and heralds the ascendancy of China as a strategic partner of the Philippines in its drive for agricultural modernization and global competitiveness," Yap said in a press briefing at the DA central office in Quezon City.

One of these accords allows the Fu Hua Co. of China to invest $ 3.83 billion in one million hectares of land in the Philippines for the cultivation of hybrid corn, hybrid rice and hybrid sorghum.

Another agreement with Jiangnan Wholesale Market assures the DA a 5,000-square-meters space for Philippine tropical fruits like papaya, bananas, pineapples and mangoes in China’s largest fruit and vegetable center. (with a report by Marvyn N. Benaning)

^^ I like this Dexter guy... :)

He puts into words the sentiments of the sensible majority.

Hala Bira, Migo!

the plan of Singapore to copy the Philippines' tax reform system is indeed a good news. She said the government is expecting only an 80-percent collection rate in the implementation of the 12 percent value-added tax, but revenues collected exceeded expectations... when other countries try to do the same thing weve done for the tax system, it could be a sign that bigger countries would have more confidence to our government and economy and thus return it through more investments in the country. isn't that positive for us?:)

yes we have always had the reputation of having an inefficient tax collection system discouraging investors. Now that tax collection is improving investors may think that we have turned a new leaf.

Thank you Sam.

Know what, i also realized i am not good at handling compliments. Nahiya tuloy ako.

You know what , you don't have to join any group to help in nation building and improving the PHils. you can contribute your own little way by simple things such as staying in your own lane and driving like a sane person, disposing of your garbage ,specially those ubiquitous plastics i hate so much, in the proper receptacle, dutifully paying your taxes, the unadulterated one, practicing good morals, multiply this by a million and its snowball effects will materialize. Unfortunately those who do these things are outnumbered by those who don't.

I totally agree with crappypants. Did our politician see the movie Hero Jet Li? I think our politicians need to take the moral lesson of that movie seriously.

More and more pinoys are no longer interested with the circus happening in the goverment. It is better to do our job than waste our time with political issues in the country.

I'm very very happy with the way 2006 ended for the Philippines. (Even though some of the prople who invested in USD losses some of their liquid assets :lol: - like me) I'm still very happy with our strong economy. When are we going to be a first world country??? :banana: :banana: :banana:

yeah 2006 was the push.
Let's make 2007 the year we start rolling. :rofl:

Can i get a YEEY TEAM!
:cheer::cheer::cheer:

__________________

Rallies? Tell me about it Avenger. I joined rallies during my student days. Have you experienced being teargassed? It temporarily blinds you and induces you to throw up. At kung masobrahan ka, puwede ka mamatay. That is why we always bring water. My boardmate is a member of militant student groups. May pula pa syang banner na tinatago sa boarding house. Let us not play personal and allege other posters to be somebody based on our impressions. My convictions are based on my experiences in life and my observations of how our politicians managed our country. Like you, saya juga pergi luar negeri supaya dapat gaji lebih besar. Lebih bagus kalau saya di dalam negeri saja tapi saya jugah mau hidup yang enak.

Our country does not have a monopoly of corrupt practices in the world. Our neighbors have corrupt practices too but why are they growing fast. Because their politics is not as poisonous as ours. Inspite of their imperfect system, they are able to produce results and help lift the quality of life of their peoples. They are supportive of their leaders and they are united. Even though they have disagreements, at the end of the day, they support their government. Look at Malaysia, their UMNO is also racked by a lot of allegations. But at the end of the day, they unite for the good of their country.

They might not be as "ang galing galing talaga" as we Filipinos. But why, inspite of their "less galing" sa atin, why are they forging ahead, and doing so really fast? If you look at their country and how they have improved themselves, mapapabilib ka talaga. Eh, tayo, ang galing galing natin, ang tali talino pero bakit hindi tayo umuusad? Sa ating kalagayan, napapa bilib ba natin ang mga dayuhan na pumunta dito sa atin?

Now, the opposition is planning to impeach Gloria. Just wait when they achieve the numbers after the elections, they will do it. That is not the kind of opposition i want. I want a responsible fiscalizing opposition. There are a lot of things GMA could have done better. But given the choice, would you place your bets on the Marcos and Erap politicians?

And the militants, sana yung pork barrel, kung interesado sana sila sa ikakabuti ng bansa, nilagay na lang nila sa developmental and community building projects. Instead of funding the NPA, nilagay na lang nila sa development. They are the ones who preach a lot, i know, because i believed in them during my student days. They should have placed it in projects that build not destroy. Diyan tayo naiiba sa other ASEAN countries. They pour money where it should be. Tignan mo pati Vietnam, mas maganda na infrastructure sa atin.

But like you, i never lose hope. This is my country and i hope what is best for it. Let us move on and help our country prosper.

FYI I have joined rallies in the 70s and even chased by soldiers from Mendiola to Quezon Blvd, of course I managed to keep away from tear gasses. Anyhow I joined rallies that time when I was on vacation only since
I am an OFW already that time of the 70s.

My last rallies was during the Edsa 3, and that time I was together with other former activist and the KM at Mendiola as we heeded the call of GMA to support her and prevent the Erap rabbles to reach the palace. Unfortunately or because of wrong intelligence feedback the main bulk of former activist left mendiola at about midnight.

And me instead of going back to Pampanga on that eve of May Day 2001, I chosed to stay in Mendiola. We are supposed to be the frontlines and the Police and the soldiers at our back. However before the arrival of Erap hordes at about 2AM the Police advised us to retreat to San Beda, then later they retreated also to San Beda compound.

On that dawn and early morning of May Day I have experienced the fear of being overwhelmed by the leaderless rabbles, the masa who gone bersek after harangued by the dirty politicians to attack Malacanan. The Masa who was used by Erap.

Well some of those politicians who make those fiery speeches which the Masa believed which lead to attack on the Palace by the poor masa, was now supporters of GMA. Remember the very bright woman Senator who previously run for President ?

Mga hayupak na yaon, kamuntik na akong ma dedbol sa Mendiola that time kung nakapasok ang mga Erap's rabble doon sa San Beda. Actually they started to attack San Beda after the st . . id, sob Mobile TV crew of Channel 5 who were with us in San Beda that time, broadcasted and showed us Live on TV that we were there at San Beda compound. Abalos (the present chairman of Comelec)
was with us that time together with some Catholic Nuns who gave us some sandwiches and water during the siege.

So why I should trust politicians of whatever color. They just used the poor people / the masa, for whatever dirty agenda they have.

Kawan kemungkinan yang orang Malaysia lebih nationalistik pada orang Pilipin, sama djuga yang orang
Tsina dengan orang bumbay tinggal di Malaysia yang bikin baik negara ituh. Yang orang Malayo macham orang Pilipin djuga mau senang senang sadya. Tapi saya tau orang kita (orang Pilipin) yang kerja di luar negeri lebih bagus pada yang orang tinggal di sini, yang orang sini banyak yang sudah panday korupsi. (sorry my friend my bahasa is rather mixed with Bahasa Malayo and Bahasa Indonesia)

Btw I also hope for the best for our country.

Im very impressed with this forum and its lot of forumers. Everyone is so inspiring in the way they struggled to give support to our nation in every way they can and the hope for the best to our country in the future.

When all the hype about Garci and everything awful being concocted against GMA I tried to look outside the box. What I saw was a woman of strong character and determination to somehow steer the nation away from political and economic turmoil. I also saw a very determined opposition that will try and claw their way into Malacanan at whatever cost. It was the people and the economic gains made that were sacrificed at the end of the day. When most dollar earners were tooo happy about the high exchange rate, I cannot help but wonder--whats happening in the Philippines again to cause this? And not surprisingly its politics that's pulling the economy down. It's like choosing between two evils--a cheating president (?) who tries to rule with an iron hand in velvet gloves; or a group of opposition political butterflies who will fleet from one flower to another when the taste doesn't cater to their perceived intentions. Which one will you choose?

Despite all the political bickering and what not I agree with all of you guys that 2006 had been very good to us. A pat in the back for a job well done to those who really helped the economy prosper. I also hope that within 2007 we will be able to feel the rewards of the the tax reforms as the national deficit narrows.

Mabuhay ang Pilipino! Mabuhay ang Pilipinas!

Thank you Avenger, i totally agree. I also do not trust politicians.

That is why our vote this May 2007 is very important. But i can only vote once. The masa used by the politicians, they are by the thousands. Like it or not, that is the reality that our country is facing. And that is the reality GMA is also facing. Hindi nya naman puwede i-echa puwera yung mga ganung politikong nananalo. She has also to work with them. Maybe that is why she said "politics is addition".

In my work, there were several instances that i had to work with obnoxious and irritating people. I cannot ask my superiors to replace them. The response i always get is, "i should learn to adjust and work with such personalities and must produce results." Kung immoral man yung taong yun, wala na yun relevance sa output that i need to produce. Well, it is difficult, the person is very irritating and i had to balance the company's operating guidelines with his eccentric ways. When we finally completed the project after 9 months, i am proud to say that we made it.

Now i do not intend to simplify this but the President also has to work with different personalities and organizations, each with different interests. She has to balance everything. Sa akin, ang importante is that she is able to produce results. Oo, marami magsisisigaw, corrupt, immoral, etc etc, pero she can silence them if she is able to deliver. Besides, ang mga sumisigaw ng corrupt at immoral, malinis ba sila at maganda ang morals? This is not to say that GMA should institutionalize immoral and corrupt practices. What i am saying is she should exercise great wisdom in balancing divergent interests and compromise when necessary. That is why as citizens, we can contribute by praying to God to give our President and other leaders wisdom in deciding our fate.

I believe that a lot of Filipinos want to remain in the Philippines if given the opportunity. But sad to realize that for many of us, you really have to go out of the country to realize your potentials. Daming Pinoy na very successful abroad. Mereka yang pergi luar negeri yang benar benar "hero". Tidak gampang pergi luar negeri. Bapak Avenger tahu itu, kan?

Let us continue supporting our President. Ngayon pa na gumaganda na.

RP to top Asia-Pacific average

GLOBAL DEBT WATCHER STANDARD & POOR’S (S&P) expects Philippine economic growth to pick up this year and stay ahead of a forecast average for the Asia-Pacific region.

In a report titled "The Best and the Rest: The Asia-Pacific Sovereign League," S&P said it expects the Philippines to grow by 5.8% in 2007, higher than the regional outlook of 5.3%.

The growth forecast put the country at 10th place in the list, two notches better from last year.

The ratings firm said China will lead Asia-Pacific countries in terms of economic growth this year, followed closely by Kazakhstan and India.

Japan remains the largest economy in the region, but could be overtaken within a decade by China, S&P credit analyst Yee Farn Phua pointed out.

While the region could be hurt by a global slowdown led by the US, S&P said it believes Asia-Pacific economies will remain steady.

"It is expected that growth dynamics in Asia Pacific will remain robust, with a regional unweighted average growth rate of 5.3% compared to 5.6% in 2006," S&P said.

This is short of a 2000 record of 6.1%, although that year "was an exceptional year in which many Asian economies recovered from the lows of the Asian financial crisis."

The region’s average domestic credit, a key factor of growth, is expected to rise, with Japan on the lead, to 88.5% this year from 86.7% in 2006. The Philippines in this area was ranked 18th, with domestic credit likely to slow down to 32.2% from last year’s 33.4%.

On the fiscal front, Singapore, with its fiscal prudence, topped the rankings with a fiscal surplus of 5% of gross domestic product (GDP) expected in 2007. The Philippines was in 11th place, with a fiscal deficit of 1.2% of GDP, better than 2006’s 14th-ranked 2.0% of GDP.

The country, however, topped the rankings in terms of public debt burden, as measured by interest expenditure as a share of government revenues (29.7% this year from the 35.4% last year when the Philippines was also on top of the list).

S&P said interest expenses will account for almost a third of Philippine government revenue for the year, but said the debt burden will dwindle "with fiscal improvements and the availability of refinancing at lower interest rates."

The Philippines is tailed by Sri Lanka and India in terms of public debt burdens.

In terms of potential contingent liabilities arising from the financial sector, the Philippines was among those with the lowest risk at 19th place. China and Vietnam, socialist countries with financial sectors dominated by state-owned banks, had the greatest contingent financial risks.

The Philippines is also expected to post a steady current account surplus this year, besting 11 other Asia-Pacific economies.

— M. E. I. Calderon
http://www.bworldonline.com/BW011907/content.php?id=001

8 - 10% growth could be achieve if we discount all the problems the country now faces. However, though I believe that sooner or later, our country would grow at that rate too just as how most other asian countries have in the past and now.

I hope that the approaching elections will not occasion any political upheaval that could negatively affect our economic prospects.

While listening to the economists of Lehman Brothers heap praises on our achievements in building fiscal discipline and establishing solid ground for sustained economic expansion, I could not help thinking how our chaotic politics could possibly become the bullet by which we shoot ourselves in the foot again – as we have habitually done for generations.

In the bad old days, the short cycles of boom and bust discouraged long-term investments attracted only carpet-baggers. The unpredictability of our policy architecture resulted in adverse selection in our economy, favoring hustlers over serious builders of enterprise.

As we have corrected our fiscal regime and brought currency stability back to our lives, will we be able to attract long-term investors?

When one takes out a loan, it is either the lenders are secured by collateral or by guarantors. In the case of what Lehman Brothers calls a "virtuous cycle" of fiscal discipline and investment attractiveness, who will guarantee the continuation of this regime of prudential fiscal management into the long term?

It could not be individual Cabinet members who serve at the pleasure of presidents elected in a constitutional order that gives them tremendous responsibility but little means to get things done. It could not be the weak political parties nor the Supreme Court that has consistently shown very little grasp of economic principles. It could not be a whimsical electorate that chooses leaders on the basis of the least common denominator nor populist movements seduced by the politics of instant gratification.

We need to take a close look at our chosen candidates and vote on the basis of platforms, not personalities. Let's stop shooting ourselves in the foot by voting for people whose only common denominator is their desire to oust the president, without regard for what will happen to the country afterwards.

^^Well, who trusts politicians anyway? :)

By Abigail L. Ho
Inquirer
Last updated 02:57am (Mla time) 01/17/2007


SPANISH utility firm Union Fenosa SA is considering increasing its stake in Manila Electric Co. (Meralco), but only if the energy industry -- particularly the regulatory sector -- becomes more stable, Meralco chair and chief executive Manuel Lopez said.

Union Fenosa in 1994 took a 9.0-percent stake in Meralco. First Philippine Union Fenosa Inc., a joint venture between the Spanish utility and the Lopez group’s First Philippine Holdings Corp., hold 22.8 percent of Meralco’s common shares.

In 2005, Union Fenosa considered pulling out of the Philippines in light of the many unfavorable things that happened to Meralco. Lopez had to go to Spain to convince it not to give up on the Philippines.

One setback was a ruling of the Supreme Court that ordered Meralco to refund customers P30 billion for overcharges from 1994 to 2003. Another was a ruling of the Court of Appeals that reversed a decision of the Energy Regulatory Commission (ERC) to allow Meralco to "unbundle" its rates into components, which would lead to a rate increase.

Last December, however, the Supreme Court overturned the Court of Appeals decision and found rate unbundling legal. It ordered the ERC to call for an audit of Meralco’s books by the Commission on Audit to determine whether the consequent rate increase was justified.

The favorable Supreme Court decision prompted Meralco to declare a P1-per-share cash dividend to common stockholders as of Jan. 10. It will be paid on Feb. 5.

Lopez said his group was now looking at the possibility of acquiring the government’s 29-percent stake in Meralco, which may be offered for sale this year.

The Department of Finance expects to raise for the government P25.7 billion from the sale of the state’s interests in various companies, including Meralco, San Miguel Corp. and Philippine Telecommunication Investments Corp., which has a 14-percent stake in Philippine Long Distance Telephone Co. With INQUIRER.net

http://business.inquirer.net/money/topstories/view_article.php?article_id=43855

Thank you Avenger, i totally agree. I also do not trust politicians.

That is why our vote this May 2007 is very important. But i can only vote once. The masa used by the politicians, they are by the thousands. Like it or not, that is the reality that our country is facing. And that is the reality GMA is also facing. Hindi nya naman puwede i-echa puwera yung mga ganung politikong nananalo. She has also to work with them. Maybe that is why she said "politics is addition".

In my work, there were several instances that i had to work with obnoxious and irritating people. I cannot ask my superiors to replace them. The response i always get is, "i should learn to adjust and work with such personalities and must produce results." Kung immoral man yung taong yun, wala na yun relevance sa output that i need to produce. Well, it is difficult, the person is very irritating and i had to balance the company's operating guidelines with his eccentric ways. When we finally completed the project after 9 months, i am proud to say that we made it.

Now i do not intend to simplify this but the President also has to work with different personalities and organizations, each with different interests. She has to balance everything. Sa akin, ang importante is that she is able to produce results. Oo, marami magsisisigaw, corrupt, immoral, etc etc, pero she can silence them if she is able to deliver. Besides, ang mga sumisigaw ng corrupt at immoral, malinis ba sila at maganda ang morals? This is not to say that GMA should institutionalize immoral and corrupt practices. What i am saying is she should exercise great wisdom in balancing divergent interests and compromise when necessary. That is why as citizens, we can contribute by praying to God to give our President and other leaders wisdom in deciding our fate.

I believe that a lot of Filipinos want to remain in the Philippines if given the opportunity. But sad to realize that for many of us, you really have to go out of the country to realize your potentials. Daming Pinoy na very successful abroad. Mereka yang pergi luar negeri yang benar benar "hero". Tidak gampang pergi luar negeri. Bapak Avenger tahu itu, kan?

Let us continue supporting our President. Ngayon pa na gumaganda na.

Well I concur with your points.
Tidak gampang djuga yang kerja di luar bangsa dan ketinggalan yang family nya. Tapi tiada alternatif, mereka dari family miskin dulo.

Of course, I rather support the President than see the return to power the evil of the Marcoses and the Estradas. Anyhow I have not seen any prospective alternative candidate yet from the opposition camp.

Perhaps this will be my last comment on political matters owing to I just got burned in the Thread "You know you are a Filipino if ..."
My honest to goodness remarks was mistaken as leftist view, so my posting was erased.

The resurection of student activism in the 70s is the legacy of Marcos dictatorship and others have to accept the realities that some forumers who have experienced the turbulent and the first quarter storm of the Dekada 70s may may have progressive and liberal ideas that can be mistaken as leftist ideas. Anyhow in Encarta dictionary - Left means not only socialist but also liberal ideas.

Perhaps I am a left-leaning centrist before but now I am more a pragmatist.

Perhaps I shall just concentrate in posting photos and inhibit myself from political discussion. Sampai djumpa lagi.

Yasalaam Aleikum.
Tuhan bersama dengan kamu.

Salam manis...

^ Or better yet, lumipat ka na lang sa Malaysia o Singapore dahil mas kailangan nila ang kagaya mo don.

Philippines one of Asia’s top 3 investment sites

DUTCH financial giant ING has chosen the Philippines as one of the top three investment sites in the Asia-Pacific region this year.

Hong Kong-based ING Investment Management regional head of equity Nicholas Toovey on Friday endorsed the Philippines to investors for the second straight year, saying equities would likely outperform bonds in the world’s fastest growing region this year.

Toovey’s top three market picks are the Philippines, Hong Kong and Taiwan.

Last year, his choices were Hong Kong and Malaysia.

ING Investment’s chief investment officer in the Philippines, Paul Joseph Garcia, said ING’s 12-month view showed corporate profits would surge by about 20 percent this year and lift the main-share Philippine Stock Exchange index (Phisix).

He said the Phisix -- now trading at its best level in 10 years -- could reach even 3,500-3,700 points by the fourth quarter of the year.

The Phisix peaked near 3,400 points just before the Asian crisis 10 years ago.

“Macroeconomic fundamentals are supportive of higher corporate earnings this year, based on expansion of net margins, especially with interest rates at historical low,” Garcia said.

He said he expected inflation to ease further and the gross domestic product to grow by over 5.5 percent this year. He added that the favorable interest rate regime -- thanks to the government’s success in applying financial reform measures -- would benefit debt-ridden corporations.

The elections oral in May are also expected to boost incomes, with about 5,000 candidates spending for their respective campaigns and with the government doing some economic pump-priming.

Garcia estimated election spending at P5-P10 billion that would be infused into the economy and the government’s infrastructure spending at over 3.0-4.0 percent of GDP.

“There will be some catching up that’s going to be very supportive of infrastructure-related stocks,” he said. “We’re also more bullish on cyclical stocks. We favor banks and property issues.”

In the years ahead, he said, the property market will likely be more buoyant and banks are expected to be more aggressive in lending to small and medium-scale enterprises and mid-sized corporations.

Garcia said Toovey’s picks for this year were a “good call.”

On his choice of Hong Kong for this year, Toovey said, “There are a lot of Chinese stocks listed in Hong Kong, and they have a lot of momentum at the moment.

Hong Kong stocks “are actually becoming quite expensive, but investors don’t seem to be worried about that,” he said.

Toovey added that there were many new corporate issues and a sharp expansion in corporate activity in Hong Kong.

Malaysia was also chosen as top investment site this year because of a huge market upside, he said.

“The cheapest market is Thailand, purely based on value ... that’s where we would usually place bets,” Toovey said. “But as you know, there are a lot of complications there right now.”

The Thai central bank recently introduced fresh capital controls to curb the Thai baht’s sharp appreciation.

SOURCE: http://business.inquirer.net/money/topstories/view_article.php?article_id=44518

^^ Now in writing, although the Philippines has been this way for almost 400 years! Good news though, it's touching.

Thanks to our economic team and to us all for this:

Philippines one of Asia’s top 3 investment sites

Inquirer
Last updated 01:25am (Mla time) 01/20/2007


DUTCH financial giant ING has chosen the Philippines as one of the top three investment sites in the Asia-Pacific region this year.

Hong Kong-based ING Investment Management regional head of equity Nicholas Toovey on Friday endorsed the Philippines to investors for the second straight year, saying equities would likely outperform bonds in the world’s fastest growing region this year.

Toovey’s top three market picks are the Philippines, Hong Kong and Taiwan.

Last year, his choices were Hong Kong and Malaysia.

ING Investment’s chief investment officer in the Philippines, Paul Joseph Garcia, said ING’s 12-month view showed corporate profits would surge by about 20 percent this year and lift the main-share Philippine Stock Exchange index (Phisix).

He said the Phisix -- now trading at its best level in 10 years -- could reach even 3,500-3,700 points by the fourth quarter of the year.

The Phisix peaked near 3,400 points just before the Asian crisis 10 years ago.

“Macroeconomic fundamentals are supportive of higher corporate earnings this year, based on expansion of net margins, especially with interest rates at historical low,” Garcia said.

He said he expected inflation to ease further and the gross domestic product to grow by over 5.5 percent this year. He added that the favorable interest rate regime -- thanks to the government’s success in applying financial reform measures -- would benefit debt-ridden corporations.

http://business.inquirer.net/money/topstories/view_article.php?article_id=44518

Terima kasih, Avenger. Tuhan bersama kamu juga.

Biarin mereka anak anak muda. Saya welcome saja ideas yang lain lain. I try to be as objective and sensible as possible.

Sampai jumpah

Now, that's ING talking. Hope other financial houses follow suit. Go GMA!!!

Sunday, January 21, 2007
Arroyo outlines hunger mitigation master plan
By Reynaldo G. Navales

One measure includes ‘putting more money in poor people's pockets’

CLARK ECOZONE -- President Gloria Macapagal-Arroyo outlined her hunger mitigation master plan that would effectively address and resolve the decades-old problem of poverty in the country.

The President detailed her anti-hunger framework in her speech at the closing rites of the two-day Anti-Poverty Summit at the Clark Museum here last Friday.

The summit has for its theme, "Crossing the Threshold of Poverty in the Luzon Urban Beltway."

You may read this article on the below weblink :

http://www.sunstar.com.ph/static/pam/2007/01/21/news/arroyo.outlines.hunger.mitigation.master.plan.html

Emerging property trends in 2007

By Tessa Salazar
Inquirer
Last updated 11:24am (Mla time) 01/19/2007
http://globalnation.inquirer.net/propertyfocus/propertyfocus/view_article.php?article_id=44368

WILL OVERSEAS-BASED buyers continue their buying spree this year, or will local and national elections spoil the fun? Will more malls sprout on the fringes of Metro Manila this year? Will plans toward developing functional “retirement villages” stay on the drawing boards?

Inquirer Property recently asked local property players about emerging and “breakout” trends that could spur further developments in 2007.

Eric Soriano, ERA Philippines country president and CEO, predicts that remittances will continue to grow. ERA Real Estate is a multinational real estate service provider that manages Eastwood. Soriano stressed that real estate purchases by OFWs have contributed close to 25 to 30 percent of the annual sales of big property players, nearly doubling the 15 percent contribution by the offshore market in 2005.

Dollar inflows are projected to hit an all-time high of more than $12 billion by the end of 2007, $3 billion of which will be invested in real estate.

Kit Vergara, Philtown Marketing vice president, agreed with this observation.

“In the United States, if the interest rates are lowered, there will be a return to investing in the US market, thereby lowering their presence here. However, if inventory levels remain high in the United States, asset appreciation of units in Manila may be higher than those in the States,” Vergara says.

Joey Antonio of Century Properties Group says OFWs will remain strong so long as we more than 10 million of them continue working abroad.

“In fact, as years pass, the average income level increases as these workers go higher in the value chain, hence, they earn more the longer they stay abroad,” he says.

Gibson Yu, GW Architects business development manager, says the stronger peso will be good for the OFW market. “The stronger peso shows stronger property value,”

Ino Lao, marketing director of Antel Land, says that with a stronger peso, the property market should perform better since investors would rather put their money in property rather than speculate in foreign currencies.

Crown Asia president, Jerry Navarette, says the industry may even surpass its 2006 performance, given the new and aggressive moves of its players, especially in financing. The thrust seems to lie in the effort to make more Filipinos capable of owning a home.

The condominium sector is seen to continue its tremendous growth. Navarette predicts that Philippine property’s “new and aggressive financing schemes will definitely be a strength it will bank on to drive the growth in 2007.”

Vergara says that from a US perspective, Fil-Americans will still purchase in Manila provided developers are transparent and, “more importantly, they are offered a chance to earn more than investing in the States, e.g. asset appreciation.”

Strengths and weaknesses

Vergara says there will be continued strength in the high-rise residential and office buildings sector. Horizontal projects will also continue to enjoy good sales, but location of the projects will continue to be a key factor. Vergara says the few weaknesses of the property sector would lie in industrial and farm lots.

Antonio considers these among the industry strengths: banks awash with cash; foreign investors who have started looking at the Philippines again; and the continued strength of the OFW market.

Antonio adds that the BPO (business process outsourcing) market will demand new spaces that will strengthen the office rental and sale market.

“The Philippines is part of the whole Asian emerging market and will continue to attract capital from foreign investors. Low domestic lending rates, which is (now) in single digits and we have never before experienced, will expand the market tremendously,” Antonio says.

Elections, politics

But he foresees that politics will play spoilsport again.

Navarette agrees with Antonio, saying the Philippine property may be affected mainly by possible political problems brought about by the 2007 elections and the unending saga of Charter change.

Lao cites people’s anxiety over election results as one impending weakness for the property industry. However, the real estate industry’s new and innovative projects should keep the public’s interest, he says. The market is becoming intelligent, he notes, as “it starts scrutinizing products (even more closely).”

Soriano sees an emerging trend toward the development of community malls and recreation and lifestyle centers.

“If you are not in the league of an SM, the key is to become a fully integrated retail player where you synergize entertainment, a wide array of restaurants, and a complete tenant mix,” he says.

Soriano adds that this is a pioneering concept similar to Eastwood City’s “live, work, play model,” with a “walk-able” environment at the core of the developmental landscape.

“Developers and marketers are now incorporating aspirational marketing in their game plans,” he says.

Soriano predicts that in return, offshore buyers are now looking to purchase homes in new and quality developments in nearby provinces like Laguna and Cavite in the south and Bulacan and Pampanga in the north.

Aging population

He foretells the growth of specialty developments and “customized” developments for the aging population.

Soriano adds that the growth of the global aging population is expected to influence the way residential communities will be planned and developed in the Philippines.

“There is now a global expectation for developers interested to tap the retiree segment to incorporate standard metrics in the physical infrastructure (facilities and establishments) as well as the functional aspects (doctors on call, etc.) of managing a village development dedicated to the retirement market.

Lao likewise predicts a growth in this market, especially in the areas that offer medical or wellness packages.

“Considering that the country still enjoys a widely English-speaking population and a fairly low cost of living, this becomes an attraction for foreign retirees. Likewise, products for the expanded Filipino family, such as developments near the place of parents, schools or workplace, as well as fairly priced high-quality condominiums, will be a trend,” says Lao.

By Tina Arceo-Dumlao
Inquirer
Last updated 06:46am (Mla time) 01/21/2007


THE Aboitiz Group traces its beginnings to a fateful journey made over 100 years ago by a son of humble shepherds.

That journey took Paulino Aboitiz from Vizcaya in the Basque region of northern Spain to Leyte in Eastern Visayas, where he planted the seeds of what would become one of the country’s biggest conglomerates with interests in power, banking, shipping, food, construction and real estate.

The reins of the group that Aboitiz founded are now in the hands of the fourth generation and they, like their fathers before them, never forgot the family’s humble beginnings, and this has allowed them to fix their gaze firmly on a brighter future for the group.

Aboitiz group CEO Jon Ramon Aboitiz tells the Inquirer in an interview at the company’s Makati headquarters that unlike other family-run corporations, the Aboitiz group is not in the hands of siblings, but cousins.

This may pose a bigger challenge for other families to keep the family business intact, but not so for the Aboitizes who constantly work on keeping the family and the various businesses together.

“The closeness has always been emphasized by different generations and the values have filtered down,” Aboitiz says.

“There is a high level of trust and fairness in everything that we have ever done.”

Challenges

That trust kept the family together when they met their first challenge right after World War I when the group almost went bankrupt because it took a big position in hemp.

When that did not pan out, the group was saddled with a huge debt and inventory of expensive hemp.

Through restructuring and the grim determination to rise, the Aboitizes survived the test that brought other firms to their knees and eventually to just a footnote in Philippine economic history.

Aboitiz says the group also survived because it was quick to take advantage of opportunities in the horizon, which is a trait of any successful entrepreneur.

“We patterned ourselves after Chinese entrepreneurs and grew from there,” Aboitiz says. “We have always been entrepreneurs to a large extent and went in and out of so many businesses.”

“Our measure of success is to have made more right calls than wrong ones, and over 100 years, we have certainly had our share of failures,” he says.

The group had more hits than misses, such that it grew in stature, reach and influence, not only in its bailiwick in the Visayas and Mindanao, but in Luzon as well.

But Aboitiz’s father, Eduardo, the second president of Aboitiz and Co., knew that the group would not be able to move further ahead on its own power alone.

Professional managers

Eduardo, thus, brought in professional managers into the group as early as the 1960s.

He was of the belief that the right person for the job may not always come from within the family.

That period saw Aboitiz and Co. evolve from a purely family-run firm into a corporation with a corporate staff and a group of professional managers with presence in vital industries.

That high level of professionalism within the group has been fostered through the next generations such that of the some 20,000 employees under the wings of the group, only 15 are members of the family.

The latest addition is Tristan Aboitiz, who will be the first from the family’s 5th generation to join the company.

They did not get the job because they had the right last name, rather they had the right qualifications and they go through the tests just like any other employee.

“No company of our size can survive without professionals,” Aboitiz stresses.

To attract the best of them, the family must be professional, too.

“We have rules in the family. And one is that the family members know that they have no right to a job. There are no heirs apparent here,” Aboitiz says.

For those who do want to work in the group, Aboitiz says most usually work outside the company for about two years to prove themselves in their fields and to get a feel of the workplace before joining the company.

Diversification

That experience has gone a long way in keeping the group brimming with new ideas and enthusiasm to take that next major step.

The 1990s saw the group become a major power in the business sector, but the group now in the hands of the present generation saw that the group’s future lay not in having fingers in many pies, but in concentrating resources and expertise in businesses where it has a comparative advantage.

Thus, the Aboitiz group bowed out of cement, aquaculture and sugar because it could not compete in these industries.

What was left was a considerable business in transportation (Superferry), power distribution (Davao Light and Power Co., Cotabato Light and Power Co., Visayas Electric Co.), power generation (Luzon Hydro, Hedcor), shipbuilding (FBMA and Tsuneishi Heavy Industries Inc.), food (Pilmico Foods), real estate (Aboitiz Land Co.), banking (Union Bank of the Philippines and City Savings Bank), delivery and supply chain management (2GO).

“We had to choose, and we chose those businesses where we can stay focused and remain competitive,” Aboitiz says.

The era of the big, widely diversified conglomerates has ended, and given way to conglomerates with a narrower, but sharper, focus.

Aboitiz says that through the years, the spirit of entrepreneurship, of taking calculated risks, has never left the company.

But this has been tempered by taking a conservative, prudent approach to doing business.

This helped cushion the group from the worst of the effects of the debilitating Asian currency crisis that hit the country and the business sector in 1998.

The peso fell in value against the US dollar and interest rates went up.

This posed a double whammy on companies with a huge debt exposure, especially those with debts denominated in foreign currencies.

“We were lucky because we have always been conservative,” Aboitiz says.

Aboitiz says it was also fortunate that the group’s operations are concentrated in the Visayas and Mindanao, thus, out of the radar screens of most intrigues.

“From my perspective, living outside Metro Manila kept us closer together,” he says. “We have a stronger bond and have a more simple life.”

This has also kept the group closer to the communities that they serve, not only with superior products and services but also with projects designed to improve their lives.

Philanthropy

It was Aboitiz’s grandfather, Ramon, who started the group’s philanthropic journey.

His son, Eduardo, took the philanthropic efforts to the next level by putting up the Ramon Aboitiz Foundation Inc.

RAFI today has a full-time staff that draws up long-term social development projects to help the communities in the Visayas and Mindanao.

Eduardo was also one of the top businessmen that founded the Philippine Business for Social Progress in 1970, because he shared in the belief that there should be an organized way of doing social projects, since the individual companies lacked the expertise to do it on their own at that time.

RAFI and the corporate arm, Aboitiz Group Foundation Inc., have several ongoing projects in education, health, culture and enterprise development that are going a long way in rescuing many from the grip of poverty.

The Aboitiz group, for instance, is involved in addressing water sustainability in Metro Cebu and environmental protection through Ecosystem Project Cebu, an integrated community-based program focused on environmental conservation.

The Aboitiz group also remains a partner of PBSP and is represented on the PBSP board of trustees and in the Visayas operations of the biggest corporate-led nongovernment organization in the country.

It is projects and partnerships like these that make going into business more worthwhile for the Aboitiz group.

“We have always believed that making money is important, but that profits should be shared with the community,” he says.

Aboitiz is confident that with these examples, the fifth generation of Aboitizes would continue to live up to the values and beliefs handed down from the time of the founder, Paulino, and they will continue to love each other and their country and take pride in what the group has accomplished.

“Like every other generation, we are building blocks. We try to add value and make the company better than before,” he says. “Hopefully, the next generation will improve on what we have done.”

http://business.inquirer.net/money/topstories/view_article.php?article_id=44664

I'm interested. Let’s all buy to help boost infrastructure spending. Better than a scenario wherein all your $$$ remain sleeping in a bank. At least invest a portion to improve the country's infrastructure.

Gov't eyes T-bond offering for OFWs
http://business.inquirer.net/money/breakingnews/view_article.php?article_id=44737
Wants to raise $1.3B for infra projects
By Doris Dumlao
Inquirer
Last updated 10:52pm (Mla time) 01/21/2007

THE GOVERNMENT plans to sell an exclusive batch of retail treasury bonds (RTBs) to overseas Filipino workers (OFWs) within the year and use the proceeds to shore up its infrastructure spending.

In an infrastructure forum held by First Metro Investment Corp. and the University of Asia & the Pacific on Friday, Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said the government was now drafting the mechanics of the proposed RTB issuance targeting OFWs and their families.

"It's being discussed by the Bureau of Internal Revenue in the context of infrastructure spending and financing," Guinigundo said.

"It can be (denominated in) pesos, dollars or euros depending on the demand from our OFWs," he said.

The Philippines needs to spend at least P1.7 trillion or 4.5 percent of its gross domestic product from 2006 to 2010 to fund the infrastructure requirements of the economy, Agriculture Secretary and infrastructure monitoring task force chairman Arthur Yap noted during the same forum.

Based on BSP estimates, remittances from OFWs--whether coursed through banks or other channels--could hit a new high of $13 billion this year.

Assuming a 10-percent savings rate among beneficiaries of OFW remittances, Guinigundo said there would still be some $1.3 billion that could be tapped for government infrastructure financing.

Based on the BSP's earlier surveys among OFW households in Metro Manila, about 95 percent or nearly all of the households used part of the remittances to buy food and pay for other domestic expenditures.

Only 11 percent of these households attempt to invest in stocks or any private business but a larger 39 percent keep savings in banks and other depository institutions.

Guinigundo said the government has yet to finalize how much RTBs to issue but that Finance Secretary Margarito Teves was very supportive of the proposed OFW offering.

Guinigundo said there would be a system of accreditation on investors eligible for the new RTB offering since it would cater exclusively to OFWs and their families.

He said the government was aware of the significant impact of OFW remittances on the economy as these inflows were now equivalent to about 10 percent of the country's gross domestic product and 60 percent of the BSP's foreign exchange reserves.

Through the years, OFW remittances have thus made the Philippine economy more resilient to shocks that could otherwise affect economic growth, inflation, external accounts and employment. In terms of employment, for instance, the ratio of jobless Filipinos would have doubled to 20 percent from the current 10 percent if all OFWs had remained in the country instead.


Copyright 2007 Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Senate acts on P1.12-trillion budget today



By JUDE GALFORD III

The Senate is expected to approve the P1.126-trillion budget for this year as it resumes session today after a month-long recess.

During the holiday break, the senators vowed to tackle priority measures pending before the chamber including the Anti-Terror Bill.

However, legislators said over the weekend that the general appropriations bill remains as their highest priority as it will define government spending for the rest of the year.

Discussions on the General Appropriations Act (GAA) hit a snag late last year after the congressional bicameral committee failed to agree on some provisions of the measure, notably the billions of funds allotted by the House for rice subsidy or the so-called "school feeding program."

But Sen. Franklin Drilon, the head of the Senate Finance Committee, recently announced that the bicam had made a breakthrough and that the budget’s passage would be the first in the Senate agenda once session resumes.

Senate Majority Leader Francis Pangilinan confirmed that the budget bill is high on their priority list, adding that they could consider its approval as early as today.

There are a number of bills that the Senate will try to tackle before the start of the election campaign season next month, Pangilinan said. "But on top of the list is the 2007 budget," he said.

Drilon, who just returned from a convention in Geneva on Saturday, will sponsor the budget bill.

The passage of the GAA would make it the biggest budget the country ever had as the measure would break the trillion-peso barrier for the first time.

Drilon hailed the measure which he said would eliminate shortages in classrooms and teachers among other national concerns.

More importantly, the 2007 National Expenditure Program will allot funds for the holding of the May midterm elections as well as funds for other priority projects of the government to spur economic growth.

With less than a full month to tackle several measures pending before the Senate, legislators are also expected to work hard for the passage of the Anti-Terror Bill.

Senators earlier expressed support for the measure even though some members of the opposition bloc continued to express reservations on the bill, fearing that some provisions could impinge on civil liberties.

Opposition leader Sen. Aquilino Pimentel warned that a "roughshod, unrefined" anti-terror law could do more harm than good. As such, Pimentel and his supporters vowed to obstruct the passage of the bill unless it is "refined."

Regardless of arguments on the measure, Senate President Manny Villar said they will work for the approval of the anti-terror bill once Congress resumes, expressing hope that a consensus would emerge before they adjourn session next month.

"Anti-terrorism is a priority," he said in an earlier interview. He added though that the anti-terror law is not the only measure they will try to finish by February.

"The BCDA (Bases Conversion and Development Authority) bills are also a priority," he said.

Moreover, the Senate Health Committee also has three pending bills which senators seek to pass.

Villar assured the committee that the chamber will accommodate these bills, one of which seeks to promote breastfeeding among nursing mothers by providing for a law that encourages this.

No senator has yet claimed that these measures will be acted upon before the Senate adjournment in February.

However, some senators have promised that they will try to squeeze these measures in their deliberations.

They really should! Senate has been a constraint on economic growth.. Stubborn Institution!

They really should! Senate has been a constraint on economic growth.. Stubborn Institution!

We should also take this into account during the elections and choose those whom we think have really done their work in the Senate and not those who have only promoted useless investigations in aid of destabilization that have delayed the passage of important legislation.

DTI: 135,069 new jobs expected

ATTACHED agencies of the Department of Trade and Industry reported that a total of P274 billion in investments were committed last year, an increase of about 18.6 percent from the P231 billion registered in 2005.

Trade Secretary Peter B. Favila said the amount posted in 2006 was 8 percent higher than the target of P254 billion for the year.

The goal was based on the government's target of growing the economy by 10 percent a year.

Once operational, "the 694 projects registered with the Board of Investments and the Philippine Economic Zone Authority are expected to create a total of 135,069 jobs," Favila said. "Job generation in 2006 grew by 14.3 percent from the 118,141 jobs promised in 2005."

The surge in investments, Favila added, "is a reflection of the investors' confidence, brought about by the improved fiscal position of the country and the enhanced business environment."

The BOI registered 231 projects worth P190 billion--16 percent higher than the P163 billion registered in 2005.

Some of the largest projects listed with the BOI last year were GNPower Ltd.'s P43.9-billion coal-fired power plant; Smart Communications' P33-billion 3G cellular phone system, as well as Globe Telecom's P5.5-billion project.

Peza registered 463 projects worth P84 billion in investments--25 percent higher than the previous year's P67 billion.

In 2006, the biggest Peza-listed ventures were mostly those related to electronics and semiconductors. But there were also Upland Banana Corp.'s P4.6-billion production of cavendish bananas; HSBC's 3-billion business process outsourcing venture; Lepanto Consolidated Mining's P3.27-billion copper project; and San Carlos Bioenergy's P2.25-billion ethanol facility.

With such performance this year, Favila said DTI was raising the investment target to 12 percent a year from the original 10 percent that was adopted two years.

Trade Undersecretary Elmer C. Hernandez, who is also BOI managing head, said the DTI was optimistic that the 2006 performance would be sustained through 2007, due to the expected inflow of capital in the infrastructure, mining, information and communications technology, tourism and health, and wellness sectors.

Hernandez noted the improved sectoral investment performance of infrastructure at 1,648 percent; real estate at 113 percent; agriculture at 541 percent; and information technology services at 78 percent.

He said local investors brought in commitments worth P182 billion, or 67 percent of the 2006 total, while foreign investors accounted for P92 billion.

--http://business.inquirer.net/money/topstories/view_article.php?article_id=44773

We should also take this into account during the elections and choose those whom we think have really done their work in the Senate and not those who have only promoted useless investigations in aid of destabilization that have delayed the passage of important legislation.

but it seems that those senators are winning again..as per the surveys..:(

Unfortunately it's all about name recall in this country, and those most often seen on TV accusing the administration of this and that will of course be the most remembered.

GMA has made the unpopular decisions that have made concrete results in our fiscal and economic standing. Sadly, this might go unrecognized in favor of those who have opposed the EVAT because it was an unpopular measure.

yeah that's why escudero and peter cayetano will win. and honasan and the dancing lady.

Arrrggghhh! People should be educated regarding this matter first. As much as they have to be educated before signing in that people's initiative.

Unfortunately it's all about name recall in this country, and those most often seen on TV accusing the administration of this and that will of course be the most remembered.

GMA has made the unpopular decisions that have made concrete results in our fiscal and economic standing. Sadly, this might go unrecognized in favor of those who have opposed the EVAT because it was an unpopular measure.


Unpopular it may seem, but we are reaping the fruits of the economic policies she vehemently pursued for the sake of our economy. Now, we are enjoying economic recovery and stability. We gained the confidence of the international community.

It just saddens me that some are still throwing baseless accusations in national television just to have their own share of media exposure.

6 GOVERNMENT INFRASTRUCTURE PROJECTS FOR THE YEAR 2007...

1.NAIA T3, schedule to start operations this year. A project including a 13 lane runway is 98% completed. expected to operate this MARCH 2007

2.expansion of the passenger terminal at the DIOSDADO MACAPAGAL INTERNATIONAL AIRPORT... to be completed this december, total cost 150million pesos

3.extension of STAR 2 expressway from lipa to batangas city..target completion= december 2007, cost 1.5billion, excludes the 1billion for right of way.


4.construction of the subic-clark-tarlac expressway.
cost= 21billion
target completion= november 07


5.modernization of the subic container port with the construction of 2terminals. to be finish mid of this year.


6. rehabilitation of EDSA. includes construction of footbridges, loading and unloading bay, improvement of sidewalks and tunnel.
cost unknown


from: philippine daily inquirer jan.22

yeah that's why escudero and peter cayetano will win. and honasan and the dancing lady.

We keep shooting ourselves in the foot. The first thing these people will do, if they gain ascendancy, will be to negate the reforms implemented by the GMA administration, under the pretence that these are oppressive to the people. The same politicians who have been identified with Marcos and with Erap's downfall will again wreak havoc on the country's prospects. Before they have finished with us, we will be back to square one.

Vol. XX, No. 128
Thursday, January 25, 2007 | MANILA, PHILIPPINES

The Economy
’06 economic growth may still be within target, says NEDA

The Philippine economy likely grew between 5.3% and 5.6% in 2006, propped by the robust performance of the manufacturing, transport, communication, trade, and real estate sectors, estimates by the National Economic and Development Authority (NEDA) showed.

Despite the expected slowdown in the economy in the last quarter of 2006 due to the onslaught of typhoons, Dennis M. Arroyo, NEDA director for planning and policy, said growth in gross domestic product (GDP) could still fall within the agency’s full-year target of 5.5% to 6.1%.

Mr. Arroyo also said growth was driven by the services sector which likely advanced by between 6.0% and 6.3%. Agriculture was expected to have delivered growth of 3.8% to 4.0%, while the industrial sector likely grew 5.2% to 5.4%, he added.

While manufacturing and other sectors had a strong showing, consumption and exports also performed well in 2006.

Export revenues for November 2006 grew by 10.8%, higher than the previous year’s 6.4% growth. The holidays also boosted manufacturing performance particularly in food and beverage.

For the fourth quarter of 2006, GDP — or the value of goods and services produced within the country — likely grew between 5.1% and 5.9%, Mr. Arroyo said. NEDA used a wider range due to uncertainties brought by typhoons that hit the country during the period.

Last week, the Agriculture department said the farm sector’s full-year output grew by only 3.88%, mainly due to typhoons Milenyo, Paeng, Queenie, Reming, and Seniang in the last four months of the year. The Agriculture department had expected a 4% increase, coming from 2.7% in 2005.

Earlier, Mr. Arroyo said while the agriculture sector’s output was less than expected, this will not have a dramatic effect on 2006 GDP growth since the NEDA’s forecast assumed farm output to grow by only 3.4%.Official 2006 GDP data will be released on Jan. 31. — Beverly T. Natividad

Source (http://www.bworldonline.com/BW012507/content.php?id=051)

Congress bicam OKs P1.126-trillion budget for 2007

By MARIO B. CASAYURAN

The Senate and House of Representatives bicameral conference committee signed yesterday the bicameral conference committee report on the proposed 2007 P1.126-trillion national budget in ceremonies held at the Club Filipino in Greenhills, San Juan.

The eventual ratification of the conference committee report and enactment of the proposed 2007 General Appropriations Act (GAA) would finally enable the national government to address the urgent concerns of the Filipino people.

For the past two fiscal years, the government has been operating under the reenacted 2004 national budget because neither the Senate nor the Lower House would budge from their positions.

The two reenacted budgets carried a much lower appropriation level.

The report was signed by Sen. Franklin M. Drilon, chairman of the Senate Finance Committee and of the Senate bicameral conference panel, and his House counterpart, Albay Rep. Joey Salceda.

Drilon said the budget measure will finally address the chronic shortage of public school teachers and lack of public school classrooms, and provide the needed funds to improve government’s services in public health.

He said the budget measure also provides for a P10-billion calamity fund to assist in the reconstruction of areas devastated by recent typhoons as earlier sought by Sen. Joker Arroyo.

The measure, likewise, grants Malacañang the authority to use unprogrammed funds to pay long-overdue salary increases to the more than one million government rank- and- file workers.

"We are proud of the work of the bicameral conference committee. We are very appreciative of the tremendous efforts of Joey Salceda in drafting the budget," Drilon said.

The former Senate president said that items that would address the shortage of public school teachers and classrooms, the P10-billion calamity fund, and additional funding for public hospitals were among the highlights of the budget measure.

"We have also incorporated in the unprogrammed part of the budget the authority to spend public funds for the salary increase of government employees. As soon as the law is enacted, the budget will provide for a bigger pay for government employees," Drilon said.

Drilon expressed optimism that the bicameral conference committee report on the budget would be ratified very soon by Congress for submission to and approval by the President before Congress goes on a three-month recess for the May, 2007, mid-term election campaign.

The Senate and the Lower House were earlier deadlocked on the proposed 2007 budget, but this was broken after Drilon and Salceda forged an agreement on the contentious P4.7-billion school feeding program.

The Lower House wanted the substantial portion of the program to consist of rice importation and eventual distribution to schoolchildren.

Drilon explained that the Senate and House panels agreed that instead of rice distribution in schools as earlier sought by Malacañang, the funds would now be used to build more classrooms, distribute nutritional supplements, and hire more teachers.

Under the agreement, the P2.163 billion would be allocated to the school building program of the Department of Education. The funds would be used to build 5,400 more classrooms on top of the 12,226 new classrooms that Malacañang has already programmed.

Despite the additional construction, it is still projected that there would be a shortage of 2,961 classrooms this year, Drilon said.

He said the bicameral panel also agreed to allocate P2 billion to distribute food supplements such as milk, coco-pandesal, and vegetable-based noodles to address the malnutrition problem among some schoolchildren.

An additional R873-million budget would be allocated for the creation of more teaching positions. This would raise the DepEd’s 2007 budget for new teachers to about R2 billion.

Drilon said priority in the hiring of new teachers would be those who specialize in the fields of mathematics, physics, chemistry, biology, and general science.

The bicameral panel also agreed to retain the R400-million intelligence fund of the Office of the President.

"‘We agreed to this out of respect for the time-honored tradition of Congress allowing Malacañang to determine the appropriations for the Office of the President," Drilon said.

Under the budget bill, R500 million of the Department of Agriculture allocation would be provided for livelihood programs of farmers whose lands and crops were devastated by the typhoons, he added.


Senate to leave fate of JPEPA to 14th Congress


The 23-member Senate, with only nine session days left before it goes on recess for the May, 2007, political campaign, will leave to the incoming 14th Congress the fate of the controversial Japan-Philippine Economic Partnership Agreement (JPEPA), Sen. Miriam Defensor Santiago, chairperson of the Senate Foreign Relations Committee, said yesterday.

"So there’s no time (for JPEPA). We have only nine session days (remaining before the recess)," Santiago said, adding that senators have agreed to devote their remaining time to act on priority measures, pending at the Senate.

Among the pending measures are the proposed 2007 R1.126-trillion national budget, the controversial Anti-Terrorism bill, and the proposed 10 percent salary increase for government workers.

Malacañang submitted last November the controversial international agreement to the Senate for its review and ratification.

Environmentalists said the JPEPA would allow Japan to bring to and dump toxic and hazardous wastes in the country, a charge that Malacañang had denied.

Santiago said she could hold committee hearings on the bilateral agreement because the proceedings could be carried over to the next Congress.

The 13th Congress that started in late July, 2004, ends sine die on June 8.

The 14th Congress starts in late July, 2007.

"But I can’t even deliver a sponsorship speech because there will follow a period of interpellation and that definitely cannot be settled in nine days. Several senators have signified that they would conduct lengthy interpellation like Senators Enrile, Cayetano, and a few others," Santiago said.

"So that’s already a red flag that it cannot possibly finish second reading by this session, and I am persuaded that since there is no chance of it reaching third reading or voting on the bill, then there is no point (in sponsoring the treaty for ratification)," she explained.

Congress rules state that if there is a new Congress coming to office, "that’s a completely different Congress from the old one, and so everything has to start from the very beginning.

"Because of this, Santiago said "it’s just a waste of effort."

"I’m not going to railroad it. This is too important. And I am going to invite all the advocacy and environmentalist groups so they can at least say that they were heard. So, no JPEPA," she stressed.

"Yes, definitely, it would be for the next Congress to decide, not this one," she said.

Before both the Senate and the House of Representatives went on month-long holiday recess starting last Dec. 22, Santiago said she asked Senate President Manuel B. Villar Jr. to convene the Senate as a "committee of the whole" to discuss the ratification of the JPEPA.

A committee of the whole hearing on JPEPA is appropriate because the agreement has provoked nation-wide controversy, and so it requires comprehensive debates.

The 933-page JPEPA consists of 165 articles.

Santiago said the Senate trade and commerce committee and economic affairs committee, both led by Sen. Manuel "Mar" A. Roxas II, held hearings on certain aspects of JPEPA in the second week of November, although at that time Malacañang has yet to submit the treaty to the Senate. (Mario B. Casayuran)

1/25/07




http://www.mb.com.ph/BSNS2007012585462.html

^^ Job well done for our legislators! :)

Now, we will not be threatened that our economy will suffer such a loss if ever the 2007 National Budget will not be properly legislated. A reenacted budget which we have been using since 2005 is not that appropriate by now. Hence, the need to pass a national budget.

After a year of economic recovery, we are on our way to economic payback and economic stability. Way to go!
!

The economy likely grew within a range of 5.1 to 5.9 percent in the fourth quarter of 2006, the National Economic and Development Authority said yesterday.

Neda policy and planning director Dennis Arroyo, who made the forecast, said the fourth quarter performance would translate into a full-year gross domestic product growth of 5.3 to 5.6 percent in 2006, or near the lower end of the government’s goal of 5.5 to 6.1 percent.

The National Statistical Coordination Board, an attached agency of Neda, will release the official fourth quarter and full-year growth figures on Jan. 31. The board earlier reported that the GDP grew 5.4 percent in the first three quarters of 2006.

This would be the third time that the economy grew above 5 percent, after the 5.1 percent growth in 2005 and 6.0 percent growth in 2004. Economists said with the continued improvement of the economy, the average per capita income in the country went up by 9 to 10 percent over the past three years.

Because of improving prospects, the government has revised upward its GDP growth targets for 2007 to a range of 6.1 and 6.7 percent from the previous range of 5.7 to 6.5 percent.

Arroyo said the services sector continued to carry the growth load in the fourth quarter. Services, which account for more than 40 percent of GDP, was estimated to have grown by 6.4 to 7.3 percent in the fourth quarter and by 6.0 to 6.3 percent in the whole of 2006.

Services include wholesale and retail, transport and communication, banking and finance, real estate and private services.

Industry sector, which represents a third of the GDP, likely grew within a range of 5.1 to 6.4 percent in the fourth quarter and in a band of 5.2 to 5.4 percent in the whole of 2006.

The agriculture, fishery and forestry sector, which contributes about a fifth to the GDP, was also estimated to have expanded by 1.3 to 2.1 percent in the fourth quarter and by 3.8 to 4.0 percent in 2006.

The Department of Agriculture earlier reported that farm and fishery output increased 3.88 percent year-on-year in 2006.

On the demand side, Arroyo said the double-digit growth in remittances from Filipino workers overseas and exports helped boost the economy.

The World Bank said Philippines’ GDP growth would have made more impact on poverty reduction, if it is equally dispersed among the population.

“With high levels of inequality of income, assets and opportunities, many Filipinos are effectively excluded from social and economic development and cannot contribute to the development of their country,” World Bank country director Joachim von Amsberg said.

World Bank chief economist Francois Bourguignon said that in order to achieve higher growth rates, greater attention must be given to leveling the economic and political playing fields.

“Good policies for growth and poverty reduction generally involve redistribution of influence, government expenditures and current income away from dominant groups,” he said.


http://www.manilastandardtoday.com/?page=business1_jan25_2007
By Roderick T. dela Cruz

Friday, January 26, 2007
Business ties between Philippines, India expected to grow

THERE is a stage in marketing and in the development of business entity when all the hard work, all the efforts put in do not seem to be bringing in any result and then suddenly all the elements come together and viola! Suddenly, everything comes together and the business, the entity and the investments bear fruit and the plants start shooting up towards the sun. The concept is often referred to as the tipping point.

The Philippines India business relationship is soon to mature into that stage. Several years ago. the bilateral trade between our two countries was a measly 250 million dollars and less, today per official records from the Indian side it is at 750 million. Foreign direct investments which were hardly ever heard of in the last decade have reached a mark of over a billion dollars in the last five years or so. The streets of Makati and Ortigas commercial districts are now spotted with several Indian lap-top bagging Indians who have come into the country on assignments and as consultants.


The Department of Tourism has gone all out to draw in India’s new middle class as potential big-spenders in the country. The Department of Trade and Industry along with BOI will also soon be conducting an all out drive to increase trade, partnerships and investments in the country with and from India.

The Philippines India Business Council recently hosted a delegations led by high powered businessmen and they are all gung ho on the Philippines. The Philippines India Business Council will also devise a long term framework to increase the churning of information and partnership between the country of our roots-India and the country of our fruits-the Philippines. The Philippines Chamber of Commerce and Industry (PCCI), the mother organization of the Philippines India Business Council re-forged their partnership with the Federation of Indian Chambers of Commerce and Industries with a brand new memorandum of agreement to enhance ad support specific sectors like tourism, pharmaceutical, information technology and agriculture. In effect, we are at the verge of a breakthrough and what we have seen and experienced so far is only the tip of the iceberg. The tipping point is just around the corner. The gap, the distance and the lack of awareness that has existed between India and the Philippines will soon start fading away and we reach the relationship maturity levels similar to those that exist between India and Malaysia or India and Singapore and even more given that our natural and human resources are much larger and much more compatible.

On this 60th anniversary of the Indian Republic, the Philippines India Business Council invites businessmen to attend a short, seminar entitled, Doing Business with India III at the PCCI offices on January 30. For details, please call up Laarni at 8445713. (Press release)

The Chamber of Mines of the Philippines eyes some $500 million new money in the industry this year in addition to previous investments made by existing mining companies.

Philip Romualdez, the president of the Chamber of Mines, said the money flowing into major mining projects in the country is still part of the commitments earlier made by mining companies.

The $500-million investment for this year includes the $100-million funding the Atlas Consolidated Mining and Development Corp. obtained from a financier for its project in the Philippines.

Another $100 million will be infused by Oceana Gold Ltd of New Zealand and Climax-Arimco Mining Corp. of Australia, which merged recently. The investment will be used for the development of the Didipio project in Nueva Viscaya.
Coral Bay Nickel Corp., on the other hand, will also invest another $100 million for the expansion of its operation in Rio Tuba in Palawan. The money is part the company’s $210 million allocation for the project in the next two and a half years.

Other expected investments for this year also include the $62 million by Indophil Resources NL. The company is also allocating $15 million for the conduct of feasibility studies.

Romualdez said the remaining $200 million will come from smaller investments by other companies. Some of these projects include the deal by Xstrata Copper for copper mining projects. Xstrata is also pursuing a nickel-mining project, he said.

The move of Xstrata is a significant development as confidence and interest are mounting in the industry. Xstrata was encouraged after the pre-feasibility commissioned by Indophil on its Tampakan property. The company has acquired 62.5 percent of the Tampakan copper-gold deposit in South Ctabato from Indophil Resouces NL.

Moreover, the Tampakan rdeposit is one of the largest undeveloped copper deposit in southeast Asia and the western Pacific, which contains about 11.6 million metric tons of copper and 14.6 million ounces of gold at 0.3 percent Cu cutoff. The project will require a budget of $2 billion to operate commercially.

Romualdez said the prospects of these additional investments come at an opportune time because the prices of metal prices in the world market remain high.

“These companies are confident that mining activities in the country will remain profitable owing to good prices of metals at this time,” he said.

Romualdez also challenged the government to do its part in starting new projects to commence operations.

“The Chamber has already done its part and it has successfully brought the top mining companies in the world to the Philippines. The challenge is how to move forward,” he said.

However, Romualdez said he is optimistic that investors will remain confident in the Philippines despite the political noise because of the changes and the willingness of the government to hold on a better mining policy.

“There are good signs: mining permits moves, bureaucratic processing has changed, and the government assured us support. The government has shifted towards a better direction that’s why the flow of investment will continue,” he said.

Relatedly, the Department of Environment and Natural Resources sees growth in mining industry, Secretary Angelo Reyes said Thursday. “The takeoff of the mining industry this year has become apparent with the presence of the world’s biggest players, and their investments indicate the increased confidence of the global mining investors in the country, and if we’re able to sustain it, we can all expect a mining boom starting next year,” Reyes said.

Last week, Reyes announced he had approved the exploration permit of Manila Mining Corp., which is finalizing a joint venture with Anglo-American Philippines Exploration, Inc. for the exploration of the Bayugo Copper Gold Project in Anislagan, placer in Surigao del Norte.

Anglo-American has committed itself to spend an initial $100 million for exploration works in the next two years. While the Bayugo copper-gold prospect has a similar nature and occurrence with the well-known adjacent Boyungan Copper-Gold Porphyry Deposit that Anglo is exploring under a JV with Philex Mining Corp.

Other new major players include Chemical Vapor Metal Refinery Co. (CVMR), Phelps Dodge, BHP-Billiton.

Reyes said that CVMR plans to invest in nickel processing and refinery project, while Phelps Dodge expressed its interest to bid for the development of the Batong Buhay Copper-Gold Project in Kalinga Apayao.

Meanwhile, the Masbate Gold Project of Filminera Resources Corp. has submitted its feasibility study to the DENR and is expected to start construction work within the first quarter this year at a cost of $100 million.

Reyes said that the government is revitalizing the mineral industry to serve as a catalyst for economic growth in the country. The revitalizing program is projected to raise about $6.5 billion in investments in the medium term, and generate 200, 000 jobs.

http://www.manilatimes.net/national/2007/jan/26/yehey/business/20070126bus5.html
BY Angelo S. Samonte, Reporter
--With Katrina Mennen A. Valdez

With the president attending the World Economic Forum, I am quite expecting a new set of improved relations with other countries. In as much as we are in the process of improving our image in the international community in terms of economic development, we might be engaging with more economic agreements once the president comes back from her trip.

http://business.inquirer.net/money/topstories/view_article.php?article_id=45948

OFW remittances hit all-time high of $14B

Inquirer
Last updated 03:22am (Mla time) 01/27/2007

DOLLARS sent home by overseas Filipino workers (OFWs) through banks and other channels likely reached an all-time high of $14 billion in 2006, according to a new central bank estimate.

An earlier projection of the central bank, Bangko Sentral ng Pilipinas (BSP), had placed OFW money inflows at $13.4 billion in 2006, from roughly $12.0 billion in 2005. It had expected the amount to reach $14.0 billion in 2007, including $13.5 billion through the banking system.

Now the likely 2006 total is $13-$14 billion, including $12-$13 billion coursed through the banking system, BSP Deputy Governor Diwa Guinigundo told reporters Friday.

At $14 billion, the amount would be about 60 percent of the BSP’s foreign exchange reserves, which surged to an all-time high of $23 billion at end-2006.

In 2005, the BSP assumed in its computation of the balance of payments -- the measure of the country’s international financial transactions -- that 20 percent of OFW money inflows would come in through informal channels, such as OFWs’ friends and acquaintances or other travelers. This “leakage” dropped to 10 percent in 2006, and is expected to fall further to five percent this year, according to the BSP’s latest estimates.

Last November, OFW money remittances through banks exceeded $1 billion for the seventh straight month, bringing the total for the first 11 months of 2006 to a record-high $11.44 billion, up 17.6 percent from the same period in 2005.

The bulk continued to come from the United States, the United Kingdom, Saudi Arabia, Italy, Japan, Canada, Hong Kong, the United Arab Emirates, Singapore and Taiwan.

Strong inflows of dollars from OFWs and from foreign portfolio investors last year helped to push the peso up by nearly eight percent against the dollar. With INQUIRER.net

OFW remittances hit all-time high of $14B


Inquirer
Last updated 03:22am (Mla time) 01/27/2007


DOLLARS sent home by overseas Filipino workers (OFWs) through banks and other channels likely reached an all-time high of $14 billion in 2006, according to a new central bank estimate.

An earlier projection of the central bank, Bangko Sentral ng Pilipinas (BSP), had placed OFW money inflows at $13.4 billion in 2006, from roughly $12.0 billion in 2005. It had expected the amount to reach $14.0 billion in 2007, including $13.5 billion through the banking system.

Now the likely 2006 total is $13-$14 billion, including $12-$13 billion coursed through the banking system, BSP Deputy Governor Diwa Guinigundo told reporters Friday.

At $14 billion, the amount would be about 60 percent of the BSP’s foreign exchange reserves, which surged to an all-time high of $23 billion at end-2006.

http://business.inquirer.net/money/breakingnews/view_article.php?article_id=45948

Top business execs laud RP economic achievements, take second look at new business opportunities 01/27 5:05:21 PM

DAVOS, Switzerland (Via PLDT) -- Business leaders, representing at least 20 top global companies, acknowledged here the major achievements of the Philippines in the economic front and expressed heightened interest in new business opportunities emerging in the country.

In a show of support for President Gloria Macapagal-Arroyo, the business leaders, made up mostly of chief executive officers (CEO) in the energy, banking, finance, information technology and infrastructure sectors, turned up in full force during a dinner hosted by Societe Internacional des Produits Amon (SICPA) co-executive chairman Maurice Amon at the Hotel Belvedere here.

"Today, we honor a great President and the achievements of her nation," Amon said during the dinner held at the sidelines of the World Economic Forum (WEF). "We have gathered to manifest heightened business interest and optimism in the Philippines. SICPA takes pride in being a partner of the Philippine government for over 28 years and we intend to further deepen that relationship through expanded investments in the Philippines."

In response, the President welcomed the optimism and confidence expressed by the business leaders and called upon them to take advantage of the economic takeoff of the Philippines.

http://www.philstar.com/philstar/NEWS_FLASH012720073293_12.htm

Due To Strong Peso, Lower Oil Prices: Inflation seen to hit lower end of 2007 target
By Des Ferriols
The Philippine Star 01/28/2007

The Bangko Sentral ng Pilipinas (BSP) is projecting inflation to hit the lower end of the government’s four to five percent target this year due to the sustained strength of the peso and lower oil prices.

The BSP said that based on its latest forecast, the 2007 inflation rate is expected to sustain its gradual decline until the third quarter of the year.

BSP Deputy Governor Diwa Guinigundo told reporters that the increase in domestic commodity prices, however, is seen to start accelerating starting on the fourth quarter of 2007 until the second quarter of 2008.

According to Guinigundo, oil prices are expected to slightly move up and with the sustained improvement in the balance of payments, domestic liquidity is also expected to increase.

"We also incorporated the data for inflation including the fact that the rate was lower than expected last year," he said. "Overall, the BSP is inclined to maintain its current policy settings although caution remains important."

Guinigundo said there appears a clear trajectory towards the 2008 target which had been revised earlier to three to five percent from the original target of four to five percent.

The 2008 target was actually placed at four percent, plus or minus one percentage point. This reflected a shift in the expression of the target that effectively widened the range.

Based on the recommendations of the BSP, the projected inflation rate was lowered to 3.5 to four percent from 4.3 to 4.8 percent for 2007. This indicated that the projected inflation was actually lower than the four to five percent nominal target set by the Development Budget Coordinating Committee (DBCC).

The downward adjustment in the projected inflation was based on the expected drop in Dubai crude prices which the DBCC now put at $61 to $64 per barrel from $67 to $70 earlier.

The DBCC said the strength of the peso also had an impact on the revision of the assumptions and targets. The committee had presented a budget based on the assumption that the peso would range between 51 and 53 to the dollar but the exchange rate was now projected at 48 to 50 to the dollar.

The Arroyo administration earlier decided to upgrade its growth target for 2007, saying that it expected gross domestic product to expand by 6.1 to 6.7 percent.

The original growth target under the 2007 budget was pegged at 5.7 to 6.5 percent but economic officials said they were expecting better economic output this year due to surges in investments.

The DBCC said the revisions reflected increased optimism over the country’s economic growth prospects this year that would be spurred by a solid rebound in investor confidence as the country emerged from a fiscal crisis.

With the distinct possibility that the 2007 budget would finally pass before the mid-term elections in May, DBCC officials said government spending would help spur growth as capital expenditures would put more cash into infrastructure and social services.

The DBCC also upgraded its target growth rate for the broader gross national product, which includes net factor income from abroad broken down into income from offshore investments and remittances from overseas Filipino workers.

According to the DBCC-approved target, the Arroyo administration intended to hit GNP growth rates of 6.2 percent to 7.1 percent, up from the original target of 6 to 6.9 percent.

RP economy reaching its current potential — BSP
By Des Ferriols
The Philippine Star 01/29/2007

The country’s economic output is reaching its current potential and monetary officials said an increase in demand was in the horizon, starting a cycle that could lead to further economic growth.

The Bangko Sentral ng Pilipinas (BSP) said over the weekend that it had started measuring the country’s output gap as part of its inflation forecast models to determine any potential increase in aggregate demand that could lead to inflation pressures.

The output gap, according to the BSP, is a common measure used by other countries to help predict inflation pressures over a 12-month period.


http://philstar.com/philstar/NEWS200701290707.htm

With the president's continuous encouragement to the international community as regards investment in our country in the recent World Economic Forum, more economic opportunities will be welcomed for this year.

Also, the passage of the 2007 national budget will prove to be beneficial to our economy. With these, I am expecting a more positive turn this year.

Well I concur with your points.
Tidak gampang djuga yang kerja di luar bangsa dan ketinggalan yang family nya. Tapi tiada alternatif, mereka dari family miskin dulo.

Of course, I rather support the President than see the return to power the evil of the Marcoses and the Estradas. Anyhow I have not seen any prospective alternative candidate yet from the opposition camp.

Perhaps this will be my last comment on political matters owing to I just got burned in the Thread "You know you are a Filipino if ..."
My honest to goodness remarks was mistaken as leftist view, so my posting was erased.

The resurection of student activism in the 70s is the legacy of Marcos dictatorship and others have to accept the realities that some forumers who have experienced the turbulent and the first quarter storm of the Dekada 70s may may have progressive and liberal ideas that can be mistaken as leftist ideas. Anyhow in Encarta dictionary - Left means not only socialist but also liberal ideas.

Perhaps I am a left-leaning centrist before but now I am more a pragmatist.

Perhaps I shall just concentrate in posting photos and inhibit myself from political discussion. Sampai djumpa lagi.

Yasalaam Aleikum.
Tuhan bersama dengan kamu.

Salam manis...

Yes, left not only means socialist but also those who support liberal ideas. Former Justice Isagani Cruz is one - I read his books on Constitutional Law. And I don't think there's any need to waiver - I think the government, for its own good, needs a citizenry which is vigilant in the preservation of civil liberties. Otherwise it would be very easy to overlook those liberties in the pursuit of good intentions.

GMA vows 6% growth
By Paolo S. Romero
The Philippine Star 01/30/2007

The Arroyo administration vowed yesterday that it "will do whatever it takes" to achieve a six-percent annual growth rate and reduce poverty incidence by half in the next three years.

Press Secretary Ignacio Bunye said the government aims to "drive a new dawn for the Filipino people" as he called on Filipinos in the country or abroad "to row together in one direction as we navigate the challenging seas ahead."

"The upcoming years of steady (gross domestic product) growth shall be matched with basic social services aimed at lifting up the threshold 50 percent of the population who still live below the poverty line," Bunye said.

With the influx of investors and tourists in the country in the next three years, the government expects to create more than three million jobs "on the strength of an investment climate marked by good governance and a level playing field."

"This administration will not rest on our laurels but continue to implement fiscal reforms as well as lower the cost of doing business in the country," he said, referring to the steadily declining budget deficit.

In a brief interview with The STAR after presiding over a televised roundtable discussion in Malacañang, President Arroyo said the country may already be experiencing a seven-percent growth in gross national product (GNP) that includes foreign income, including remittances from overseas Filipino workers according to analysts.

She said the main drivers of the economy for this year would be the intensive skills and services sector such as the information and communications technology (ICT), tourism and business process outsourcing, (BPO) and the government itself.

"Now that we have the wherewithal to spend and we will probably have a budget approved, it would be on the increased investment in infrastructure, education, and health and job creating activities," Mrs. Arroyo said, referring to the improved fiscal and revenue position of the government.

She said the Medium Term Philippine Development Plan aims to achieve a GDP growth of seven percent by 2010.

Mrs. Arroyo said her three-day trip to Davos, Switzerland last week to speak at the annual World Economic Forum (WEF) resulted in at least $1 billion in investment from one company alone.

She said she could not reveal the name of the investing company nor their business as it might affect negotiations or competitors might preempt the plan.

While in Davos, the President said the country’s steady growth since 2005 "is the longest period of consistent growth that we’ve had for a long time."

http://philstar.com/philstar/news200701300701.htm

Finally, Congress passes budget
By Marvin Sy and Paolo Romero
The Philippine Star 01/30/2007

Congress finally ratified yesterday the long delayed P1.126-trillion national budget for 2007, which now only needs President Arroyo’s signature to allow more funds to be made available for services in education, health and infrastructure.

Voting separately, the Senate and the House of Representatives unanimously ratified the reconciled version of the bill crafted by the bicameral conference committee.

Senate finance committee chairman Franklin Drilon described the approved measure as "a national budget that does not focus solely on the imperatives of economic growth but also pursues growth with equity."

"We are certain that this budget will not only facilitate government operations this year but more importantly, we are proud that we have labored with this important piece of legislative work that will hopefully make a difference in the lives of 85 million Filipinos," Drilon said.

House Majority Leader Prospero Nograles said the approval of the budget "will spur economic development."

Malacañang welcomed the ratification of its proposed budget for infrastructure and social spending, saying the outlay is integral to an improved economy and poverty alleviation.

Press Secretary Ignacio Bunye said "people can now expect the promised social payback after bearing with the tough economic reforms instituted by the government."

"President Arroyo welcomes the passage of the budget. This legislative measure is essential for social payback. We can now implement more social services in the areas of education, health as well as infrastructure," Bunye said.

Since January, the government has been working on a reenacted 2005 budget because of the failure of Congress to pass the 2007 appropriation last year.

Disagreements over the P4.7-billion school-feeding program snagged the budget deliberation in the bicameral level. But a compromise was reached during the month-long Christmas break.

Under the agreement, P2.613 billion would be set aside for the Department of Education’s (DepEd’s) school building program.

Drilon said the funds would be used to finance the construction of some 5,400 more classrooms on top of what had already been programmed under the 2007 budget.

Another P2 billion would be allocated to the school-feeding program but instead of rice, the DepEd would be distributing vegetable-based noodles, milk and coco pandesal to address the malnutrition problem among public school children.

The approved budget would also include a P10-billion calamity fund to assist in the reconstruction and rehabilitation efforts in areas devastated by a series of typhoons last year, particularly in Bicol.

Sen. Joker Arroyo pointed out that the budget would also grant Malacañang the authority to use part of the P10.3 billion in unprogrammed funds for the salary increase of government employees.

He said the increase would be equivalent to around 10 percent of the monthly salaries of all government employees, including those in the uniformed services and in government corporations.

"The point is that there’s P10.3 billion already allotted by Malacañang. The only problem is the manner and procedure of how to implement it. I think this should be effective July but the money is there already," Senator Arroyo said.

The budget also includes additional appropriations for the capital outlay of regional hospitals and subsidy for indigent patients in specialty hospitals.

"We have also required the mandatory health coverage of all indigents under Philhealth under this budget, the funding requirement of which shall be charged against the internal revenue allotment of local government units," Drilon said.

For the last three years, the government bureaucracy has been operating on re-enacted budgets that are only supplemented to accommodate the increases in expenses and other exigencies.

Earlier in the day, Mrs. Arroyo told reporters that she would be happy if Congress would be able to pass the budget and the proposed Anti-Terrorism Bill before it adjourns next week.

Mrs. Arroyo said she is confident that Senate President Manuel Villar will make good his promise to focus on the passage of priority legislative measures pending in Congress.

"What we really want is to see the passage of the national budget and the anti-terrorism bill. We have less than two weeks to go but Senator Villar has made his promise to do everything to pass these two bills," she said after presiding over a televised roundtable discussion on her recent trip to Davos, Switzerland.

For his part, Presidential Adviser for Political Affairs Gabriel Claudio commended the Senate for the "prompt ratification" of the bicameral report of the General Appropriations Act.

"Congress’ responsiveness complements and puts on high gear our country’s momentum for an economic boom and turnaround," Claudio said.

He said Mrs. Arroyo is expected to sign the measure as soon as possible. – With Jess Diaz


http://www.philstar.com/philstar/News200701300401.htm

Finally, Congress passes budget
By Marvin Sy and Paolo Romero
The Philippine Star 01/30/2007

Congress finally ratified yesterday the long delayed P1.126-trillion national budget for 2007, which now only needs President Arroyo’s signature to allow more funds to be made available for services in education, health and infrastructure.



:applause:

President Arroyo is hopeful that our economic growth will stop the exodus that the Philippines is in. During the World Economic Forum she was positive that this is the longest period of consistent growth that we’ve had for a long time in the Philippines. It can be attributed also to her consistent efforts for a push in our tax measures and the birth of new industries that could give jobs to Filipinos.

Philippines Leads Asia

The Philippine real estate market registered the highest price growth in Asia during 2006 at 11.6% (Philippine property prices had dropped most after the 1997 Asian Crisis).

Indonesia’s house prices rose 8.76%, from 3Q 2005 to 3Q 2006. However Indonesian inflation was high in 2006 at 13%, so in real terms Indonesian house prices actually fell.

Singapore’s residential property price index rose 7.6% y-o-y to 3Q 2006, the city state’s highest price increase since 2000.

Malaysia and Taiwan are still muddling through, and saw only marginal price increases of 1.4% and 1.1%, respectively.

The previous strong house price growth in Thailand during 2004 and 2005 came to an end, as the political crisis spilled over to the economy, and 2006 saw house price falls of almost 1%.

Japan has not seen the end of more than a decade of property price falls. Commercial property values are rising in Tokyo and some major cities, but in the rest of the country property prices are still static.



http://www.globalpropertyguide.com/articleread.php?article_id=80&cid

Philippines leads Asia
The Philippine real estate market registered the highest price growth in Asia during 2006 at 11.6% (Philippine property prices had dropped most after the 1997 Asian Crisis).

Indonesia’s house prices rose 8.76%, from 3Q 2005 to 3Q 2006. However Indonesian inflation was high in 2006 at 13%, so in real terms Indonesian house prices actually fell.

Singapore’s residential property price index rose 7.6% y-o-y to 3Q 2006, the city state’s highest price increase since 2000.

Malaysia and Taiwan are still muddling through, and saw only marginal price increases of 1.4% and 1.1%, respectively.

The previous strong house price growth in Thailand during 2004 and 2005 came to an end, as the political crisis spilled over to the economy, and 2006 saw house price falls of almost 1%.

Japan has not seen the end of more than a decade of property price falls. Commercial property values are rising in Tokyo and some major cities, but in the rest of the country property prices are still static.


http://www.globalpropertyguide.com/articleread.php?article_id=80&cid

http://www.malaya.com.ph/jan30/metro1.htm

PRESIDENT Arroyo yesterday said she wants a 7 percent economic growth by 2010, instead of the original projection of 6 percent.

"If we really want sustainable growth, we should make 7 percent. That’s the one that would really bring down poverty. So that’s why in our Medium-Term Plan, we’re hoping that at the end, by 2010, we are already at 7 percent," Arroyo said in an interview after a roundtable discussion on the results of her
trip to Switzerland.

She said 7 percent is also more realistic if it includes remittances from overseas Filipino workers. But she was quick to add that the projection did not come from her but from other people. She said the growth areas of 2007 would still be the skills- and labor-intensive areas, service sectors, information and communications technology, and tourism. She said with Congress’ approval of the budget, there will be increased investments in
infrastructure, education, health and job-creating activities.

Press Secretary Ignacio Bunye said the upcoming years of steady growth shall be matched with basic social services that seek to lift up 50 percent of the country’s population who still live below the poverty line.

Bunye said the expected influx of investors and tourists in the country in the next three years would generate more than the three million jobs being targeted by the administration. "This administration will not rest on our laurels but continue to implement fiscal reforms as well as lower the cost of doing business in the country," he said.

Arroyo in yesterday’s roundtable discussion said one company alone plans to invest $1 billion in the Philippines. She declined to name the company, saying the officials are still making plans with their strategic partners.

She also said she has asked Teletech, one of the biggest business process outsourcing companies in the world, to expand its investments in the Bicol region, Valencia in Negros Oriental, and Davao City. She told Teletech officials that Valencia subsidizes the power bills of companies in their areas because they are near a power plant and have to consume a set amount of power.

Trade Secretary Peter Favila said he will summon all the trade department’s attaches to brief them on the government’s economic strategies for 2007, the preparations for the resumption of the Doha talks, how to take advantage of the upcoming lifting of trade barriers, the benefits of the Asean integration, and possible international markets that need to be opened up. – Regina Bengco

Jan inflation seen below 4%
By Des Ferriols
The Philippine Star 01/31/2007

Monetary officials are expecting the January inflation rate to drop below four percent, helped along by the strength of the peso against the dollar and the general slowdown in the prices of basic goods.

The Bangko Sentral ng Pilipinas (BSP) is expecting the January inflation rate at 3.9 to 4.6 percent.

According to BSP Governor Amando M. Tetangco Jr. however, the January rate could be lower than the December inflation rate because domestic prices have been generally stable due to lower petroleum prices.

Tetangco said the BSP expects the inflation rate to continue slowing down until the fourth quarter of the year before starting to slightly pick-up in the last months of 2007 and on to the second quarter of 2008.

According to Tetangco, the BSP was still on the look-out for possible inflation pressure that could build up from risk factors led by volatile global energy prices.

In the weekly Tuesday Club roundtable discussion, Tetangco said the BSP is also closely monitoring the pressure on food prices from the onset of the El Niño weather phenomenon which is expected to affect agricultural production.

"We’re also watching the sustained acceleration in domestic liquidity resulting from strong foreign exchange inflows," he said.

According to Tetangco, a unique concern this year was the anticipated increases in public expenditure and the possible large adjustments in nominal wages.

"To address these risks, the BSP will continue to monitor closely the evolving conditions for consumer prices, aggregate demand, domestic liquidity and other factors in order to determine the appropriate stance of monetary policy," Tetangco said.

For the whole year, the BSP said it is projecting to hit the lower end of the government’s four- to five-percent inflation target due to the sustained strength of the peso and lower oil prices.

The BSP said that based on its latest forecast, the 2007 inflation rate is expected to sustain its gradual decline until the third quarter of the year.

BSP Deputy Governor Diwa Guinigundo told reporters that the increase in domestic commodity prices, however, is expected to start accelerating beginning the fourth quarter of 2007 until the second quarter of 2008.

According to Guinigundo, oil prices are expected to slightly move up and with the sustained improvement in the balance payments, he said domestic liquidity is also expected to increase

http://www.abs-cbnnews.com/storypage.aspx?StoryId=65289

2006 GDP growth was a healthy 5.4%.

as regards the passage of the 2007 budget,GMA promised to increase revenue collections, cut red tape and reduce graft and corruption to match the approval of the said budget.. (http://www.philstar.com/philstar/NEWS200701310417.htm) by passing the 2007 budget, the interest of the Filipino people is put at the frontline... she also said that every item in the budget, she said, is designed to promote good governance, strengthen confidence and enterprise, drive up investments and jobs, deliver social dividends and fight terror and crime... in this way we can expect more boom in our economy...

US-based companies are emerging as the biggest investors in the country’s business process outsourcing (BPO) industry but the government is still unable to establish baseline information about the industry.

The Bangko Sentral ng Pilipinas (BSP) is having difficulties getting the cooperation of major industry players, forcing a two-month delay in the benchmarking survey that should have completed last year.

The BSP launched the year-long survey last year to assess the BPO industry and determine its actual impact on the economy, particularly the country’s external position. The survey is the first of its kind to be conducted on the BPO industry and was intended to establish the baseline information that would be the basis of future economic statistics.

However, BSP officials said the survey results so far gathered were not reflective of the actual extent, expansion and impact of the industry because major BPO companies had been reluctant to participate.

According to a top BSP official, the Monetary Board was appraised of the preliminary results of the survey but the turn-out had been disappointing and the results inconclusive.

The source said the BSP had decided to delay the release of the survey results until it could compel the major BPO companies to participate in the survey since their information could very well change the benchmark data that the BSP was trying to establish.

"The Monetary Bank gave them another couple of months to complete the survey, it’s something the Board considers critical because we have no idea exactly how much impact BPOs have until we are able to establish some basic information," the source said. "At this point, we have conjectures that need to be empirically proven or otherwise."

The BSP, however, declined to name which of the "major BPO" operators were refusing the participate in the survey and disclose information about their operations.

The source said the BSP had the option of resorting to third-party information but first-hand information given by the BPOs themselves were preferable to any other official data that could be gathered

The outcome of the BPO survey was declared incomplete but initially, the source said the result indicated that US-based companies are still the biggest source of foreign direct investments into BPOs.

The preliminary result showed that 63 percent of foreign investments into BPO came from the US. Europe was a distant second with 26.8 percent followed by Japan which accounted for 1.4 percent and "other Asia" accounted for 8.4 percent.

The "other Asia" category included investments from India, Malaysia and Singapore.

Initially, the survey also indicated that the biggest expansion was seen in medical transcription which account for only a small percentage of BPOs in the country but has been expanding at a phenomenal rate of 85 percent.

The survey also revealed that although India was the country’s biggest competitor in the BPO business, there were Indian companies that invest in BPOs in the Philippines as well.

The BSP source said that once the survey is completed with the participation of the major players, government would have a better idea of the size, scope and impact of the BPO industry on the economy as well as validate once and for all the loose information that have not been previously validated.


http://www.philstar.com/philstar/NEWS200701310706.htm

http://business.inquirer.net/money/breakingnews/view_article.php?article_id=46708

US businessmen: ‘Pass anti-red tape bill immediately’

By Veronica Uy
INQUIRER.net
Last updated 03:11pm (Mla time) 01/31/2007

MANILA, Philippines -- American businessmen in the country on Wednesday urged the Senate to fast-track the passage of a proposed law that seeks to cut red tape, suggesting that the chamber bypass the usual bicameral conference route and adopt the House version of the bill for signing into law.

At a hearing on the measures filed by Senators Juan Flavier, Panfilo Lacson, Aquilino Pimentel Jr., and Edgardo Angara, John Forbes, representative of the American Chamber of Commerce of the Philippines (ACCP), submitted a statement noting that with the “very little time left in the present Congress to pass legislation” and the “lateness of the hour,” the Senate may “avoid the , report the House-passed bill for signature of the President.”

“The reduction of red tape and corruption in the Philippines has long been a major concern of our members and potential investor,” Forbes said.

Forbes, a retired American diplomat married to a Filipina who said he considers the Philippines his home, cited eight national and international surveys which “constantly reveal the extent of concern over high levels of corruption and red tape in the Philippines.”

The surveys include a six-year study of Transparency International which puts the Philippines in the bottom third of its Corruption Perception Index; a three-year study of the World Bank/International Finance Corp. which also put the country in the bottom third of its Annual Doing Business Report; and the Asian Institute of Management, which ranks the Philippines 60 out of 61 countries for bribing and corruption, among others.

Lacson, head of the Senate committee on civil service and government reorganization, agreed with Forbes about the need to fast-track the bill. He said the minor differences between the Senate and House versions may make the fast-tracking possible.

The consolidated Senate bills aim to shorten procedures and lessen chances for corruption in transactions with government agencies by requiring all government agencies:

- To adopt fixed deadlines for completion of transactions;

- To regularly assess and upgrade frontline services of government offices;

- Those with frontline services, to regularly undertake time and motion studies, and undergo evaluation and improvement of transaction procedures.

- To set up service standards, or the Citizen's Charter, through information billboards posted at the main entrance of offices which list the procedures, the persons responsible for each step, the maximum time for each step, the documents and fees required in each step, and the procedure for filing complaints.
[B]
The other features of the bills are:

- The head of the office or agency shall be held accountable to the public in rendering fast, efficient, convenient, and reliable service.

- Any denial of request for access to government service shall be fully explained in writing, stating the name of the person making the denial and the grounds upon which the denial is based.

- Each office or agency shall establish a public assistance/complaints desk in all their offices, while all employees transacting with the public shall be provided with an official identification card which should be visibly worn during office hours.

- If an agency fails to act on an application or request, the said permit, license, or authority shall automatically be extended until a decision or resolution is rendered on the application for renewal.

- All agencies providing frontline services shall be subjected to a report card survey to be initiated by the Civil Service Commission (CSC), in coordination with the Development Academy of the Philippines (DAP).

- Light offenses such as refusal to accept or act on applications or requests, attend to clients or render services, or imposing additional irrelevant requirements will merit a 30-day suspension on the first offense; a three-month suspension on the second; and dismissal and disqualification from public service on the third.

- Grave offenses such as fixing or colluding with fixers will merit dismissal and perpetual disqualification from public service.

- Fixers face a maximum of six years' imprisonment or a fine of P200,000.

- The CSC, DAP, Office of the Ombudsman, and the Presidential Anti-Graft Commission shall promulgate the necessary rules and regulations within 90 days from the effectivity of the measure.

"The problem of red tape compounded by the incidence of corruption provides a very bleak picture of the business climate in our country," Lacson said.

Covered by the bill are all government offices and agencies including local government units and government-owned or -controlled corporations. Excluded are agencies performing judicial, quasi-judicial, and legislative functions.

Philippine growth disappoints, weather blamed

By Rosemarie Francisco
Reuters
Last updated 08:48pm (Mla time) 01/31/2007

MANILA, Philippines -- The Philippine economy expanded a seasonally adjusted 0.8 percent in the fourth quarter of 2006, below market expectations as a shrinking farm sector dragged on double digit export growth and strong domestic demand.

The rise in the quarter's gross domestic product matched the revised 0.8 percent pace of the third quarter but fell short of expectations for a 1.1-percent increase, government data showed on Wednesday.

From a year earlier, the economy grew 4.8 percent in the fourth quarter, broadly in line with the median forecast of 4.9 percent in a Reuters poll. Third-quarter annual growth was revised up to 5.3 percent from 4.8 percent.

That left full-year growth at 5.4 percent, picking up from 5 percent in 2005 but below the government's target of 5.5 percent to 6.1 percent after a series of typhoons late last year battered crops and infrastructure.

"The double digit growth of exports, increased consumer spending and the recovery of capital formation largely contributed to the healthy growth of the economy," said Romulo Virola, secretary general of the Philippines' National Statistical and Coordination Board.

"The domestic economy however suffered from three typhoons and failed to sustain its growth."

The agriculture sector contracted 1.6 percent in the fourth quarter from the previous quarter, and overall growth was driven by a 2.2-percent expansion in the services sector, the data showed.

The Philippines' 2006 growth was weaker than most of its neighbors.

Indonesian GDP grew an estimated 5.5 percent, Malaysia 5.8 percent and Singapore 7.7 percent. Only Thailand's growth at 5.1 percent and Taiwan at 4.39 percent were lower but these numbers were dwarfed by the 10.7-percent expansion in China.

Rate cut
Some analysts said the disappointing full-year numbers highlighted the country's dependence on favorable weather and could encourage the central bank to cut rates this quarter -- the first reduction since July 2003.

"I think it does suggest that monetary policy will have to be more supportive for growth," said Christy Tan, currency strategist at Bank of America.

"If the inflation indicators that are coming out in February and in March remain favorable then we could potentially see the first rate cut happening in March."

But the Philippines' Economic Planning Secretary Romulo Neri said the outlook for 2007 was still bright.

He said export demand from Europe and Japan would help offset a slowdown in the United States. Greater public spending in the Philippines would also help stoke growth.

"Although the US market is showing signs of slowing growth the current upturn in Europe and Japan are all positive factors which would help underpin the Philippines' export performance going forward," Neri told reporters.

The government is targeting economic growth of between 6.1 and 6.7 percent this year. Exports are seen growing 13 percent in 2007 from an estimated 15-16 percent last year.

Gross national product (GNP), fuelled by more than $12 billion sent home last year by Filipinos working overseas, rose in the fourth quarter by 4.4 percent from the third quarter and by 5.9 percent from a year earlier.

GNP accounts for income from overseas investments and remittances from workers abroad, while GDP accounts for the value of goods and services within the country's borders.

Domestic consumption, which makes up about 70 percent of GDP, is fuelled by the remittances from more than 8 million Filipinos working abroad -- equal to about a tenth of the country's population of 87 million.

Remittances are likely to have reached a record $12.3 billion in 2006, the government has said.



RP 2007 GDP growth forecast is achievable--economists

By Rocel Felix
Xinhua Financial News Service
Last updated 08:49pm (Mla time) 01/31/2007

MANILA, Philippines -- The government can achieve its higher growth forecast of 6.1-6.7 percent for this year, backed by strong remittances from Filipinos working abroad, growth in the services sector and increased spending on infrastructure, economists said.

They said however, this year's growth will also depend largely on the recovery of the agriculture sector and on whether exports will rise despite indications that the US economy, the country's largest market, is slowing down.

The Philippine economy expanded 5.4 percent in 2006, in line with the government's estimates but at the lower end of the range, as weaker farm output due to typhoons dragged down overall growth.

Agricultural output, which makes up a fifth of the economy, grew 4.1 percent.

Last year's growth was driven by the services sector, which grew 6.3 percent.

Economists believe that growth prospects for this year are better, especially after Congress decided to ratify the 2007 national budget of P1.126 trillion.

They added that the May elections will also encourage spending and spur domestic demand.

"Going into an election year makes one upbeat about growth prospects. But whether the government's growth projection is realistic will depend more on external demand. There are expectations that the US economy could ease this year, and that would impact on Philippine exports," said Song Sen Wun, senior economist of the Singapore-based CIMB-GK Research.

"The growth forecast looks a bit ambitious, especially with the drag on GDP growth in the second half of last year, but if the agriculture sector recovers and remittances from Filipinos working abroad is sustained, because this fuels domestic consumption, there is a chance it can be done," said Song.

Irvin Seah, an economist at DBS Bank in Singapore said growth this year can be better supported by the easing of the central bank's monetary policy.

"The monetary policy of the central bank should be more pro-growth to stimulate growth."

DBS said earlier it expected the Bangko Sentral ng Pilipinas to cut its key rates by 25 basis points in each of the first two quarters this year.

"The only question is timing. Inflation should be at levels that would make the central bank more comfortable and warrant a cut in interest rates," said Seah.

Seah said lower interest rates should trigger greater domestic demand and consumption, cushioning the impact of a slowing US economy.

Jose Vistan Jr, economist and research director of AB Capital Securities said the approval of the budget will help in moving long-delayed infrastructure projects, including services, education and health.

"We are still updating our growth projections in line with the passage of the budget because this will raise government expenditures on critical infrastructure. The increased spending on key projects has a significant multiplier effect since this will also increase employment and encourage investments."

He added that lower interest rates and the sustained strength of the peso are improving the investment climate.

"The investment environment now is more conducive, and that is what we have been seeing in the rally of the stock market," said Vistan.

http://business.inquirer.net/money/breakingnews/view_article.php?article_id=46686

^^Not bad, 5.4% is a good increase.

Philippines Says Economy Expanded 5.4 Percent in 2006, Below Government Target

MANILA, Philippines (AP) -- The Philippine economy expanded by 5.4 percent in 2006, a growth rate that fell short of government and market forecasts due to typhoons that battered farms and dented agriculture output, government data showed Wednesday.

Economic Planning Secretary Romulo Neri said growth prospects for 2007 depend primarily on the strength of U.S. demand for Philippine exports and on investment inflows. But Neri said he remains optimistic that the Philippine economy can achieve the government's goal of 6.1 percent to 6.7 percent gross domestic product growth this year.
The National Statistical Coordinating Board showed GDP growth in 2006 was slightly below the government's target of 5.5 percent to 6.1 percent, and the 5.5 percent average forecast by six economists polled by Dow Jones Newswires.

Fourth quarter 2006 GDP growth of 4.8 percent on year also fell short of economists' average forecast of 5.3 percent, the government said.

"The recovery of agriculture and the healthy performance of the services sector helped prop up full-year economic growth," Neri told a news conference. "Nonetheless, the tropical cyclones that hit the country in the fourth quarter have affected agriculture output."

He said the government estimates that the damage caused by the typhoons shaved off 0.4 percentage points from the GDP growth rate.

Agriculture output, which accounts for a fifth of GDP and employs four of every 10 Filipinos, rose 1.9 percent on year in the fourth quarter, down from the 3.7 percent expansion in the year-earlier quarter and its slowest growth rate since the third quarter of 2005. Farm output was up 4.1 percent in 2006.

Gross national product, which includes net income from abroad, rose 6.2 percent in 2006 and 5.9 percent on year in the fourth quarter.

New thread! (http://www.skyscrapercity.com/showthread.php?p=11571854#post11571854) :colgate:

:lock: :lock: :lock: :lock: :lock: :lock: :lock: :lock: :lock: :lock: :lock:

GMA lauds Filipino people's 'fighting spirit' behind economic growth
02/01 1:15:40 PM

President Gloria Macapagal-Arroyo on Thursday attributed the country's recent economic growth to the Filipinos' resilience and fighting spirit.

The Philippine economy had reportedly grown 5.4 percent in 2006 due to strong exports, dollar inflows from overseas Filipino workers and increased agricultural production.

However, Economic Planning Secretary Romulo Neri had said 2006 could have ended better if it had not been for a series of typhoons that battered the country in the last quarter.

In response to this, Pres. Arroyo said, "The expansion of the economy by 5.4% is a tribute to the fighting spirit of the Filipino people who have managed to keep enterprise and growth up despite the super typhoons and their attendant calamities."

"Filipino fortitude will continue to win the day against any and all crises, reaping the confidence of the world, solid investments and jobs at home," she said.

http://www.philstar.com/philstar/NEWS_FLASH020120073500_6.htm

^^ This shows that this administration is not just grandstanding itself as the sole factor of improving the economy. After all, the people's cooperation to the economic reforms and agenda that this government is pursuing is one of the huge factors of our economic development.

It's payback time, people. Time to give ourselves a chance. :)

http://www.philstar.com/philstar/NEWS200702010407.htm
By Aurea Calica

The World Bank (WB) has cited the Philippines for gaining credibility in macroeconomic management, saying even the prospect of excessive spending for the elections in May will no longer pose a threat in achieving the country’s fiscal targets for the year.

Joachim von Amsberg, WB country director for the Philippines said the passage of the 2007 national budget is also a welcome development that would provide the appropriate framework for public expenditure.

"The leaders of the county and (President Arroyo) reinforced this today knowing that credibility in macroeconomic management is so important for bringing investments into the country, for strengthening investment climate, that they all stand behind meeting those targets," Amsberg said.

He said concerns on excess spending ahead of the May midterm elections will not adversely affect the government’s fiscal targets.

"I think I would encourage government leaders to focus on strengthening the quality of public spending. I believe the discipline is in place to ensure that spending is not out of control but the key is to ensure that the quality of spending is raised," Amsberg said.

He said the implementation of fiscal reforms and the passage of the national budget would create the opportunity to increase public spending into social and infrastructure areas.

If those investments were made with "high quality," Amsberg said public infrastructure and social spending could actually make a very important contribution to more rapid growth and poverty reduction in the Philippines.

The WB official said the Philippines’ efforts in macroeconomic management are beginning to be noticed by the international community, indicating that Manila has actually exceeded its fiscal plans which were laid out by its economic managers in the previous year.

"What we are seeing is the beginning of… circle of credibility which is, government makes announcements about its fiscal plans... which means investors and other observers begin to take those plans and projections seriously because they have track record of achieving those projections," he said.

Amsberg expressed confidence the Philippine government will sustain its economic targets for this year as it did last year.

Amsberg said the economic reforms could be sustained on the government’s will and commitment.

"For 2007, it is a significant challenge to meet increased revenue collection because those increases have to come from increased tax collection policy because there are no new measures put in place. That requires a very serious commitment that I do see in the Department of Finance and BIR (Bureau of Internal Revenue) but needs to be sustained," he said.

Amsberg said the government must undertake tax audit, go after tax evaders and enforce tax laws to leave a message to taxpayers that they have no choice but to pay their taxes.

He said a lot of actions are necessary to enable the government to meet its revenue targets through better tax collection rather than new tax measures.

There should also be more transparency in spending and money should be invested in programs with the highest returns.

Amsberg also stressed anti-corruption efforts should be implemented thoroughly with the results disclosed to the public.

"So over time the services that are delivered for every peso spent increases. There is a lot of space for the increase in the effectiveness and efficiency of public spending," Amsberg said.

He said some important steps had been taken and the fiscal reforms were the single most important move to improve the investment climate and "a lot more can be done to sustain the positive performance."

"Even though growth has been reasonably high, the investment rate is still very low. Raising the investment rate is a big challenge in the coming years," Amsberg said.

"That’s where the investment climate reforms are central. Sustaining fiscal reforms, good infrastructure investment and clean competitive bidding for infrastructure investment with private sector participation," he added.

Amsberg said investors will put more money into real investments if they see contracts are equally enforced with no political interference from government institutions.

He said concessions should be bidded out cleanly and competitively, "so there’s a whole agenda of investment climate governance reforms that could lift the Philippines to the next higher level of sustained growth and growth that is spread to the different parts of the country and different sectors."

Amsberg also stressed the government should make more efforts in cutting down the bureaucratic red tape.

"There has been initiatives and more actions in cutting red tape would help investors increase their commitments in the Philippines," he said.

Amsberg described red tape as "simply administrative barriers."

"They extend to a broader set of governance related issues of how the private sector interacts with the State and how competition in the private sector is supported or undermined by the State," he said.

Amsberg pointed out some issues which are deemed critical to the country’s economic success.

Amsberg cited the airlines industry sector, which he said, could bring more competition that could reap huge benefits. He also cited the seaport industry.

^^ This shows that this administration is not just grandstanding itself as the sole factor of improving the economy. After all, the people's cooperation to the economic reforms and agenda that this government is pursuing is one of the huge factors of our economic development.

It's payback time, people. Time to give ourselves a chance. :)


just one last chance ha ...... other wise we will ask Kuh to take over .:)

i mean Kuh Ledesma.... :)

OT:

i found this on the Thai Forum http://www.skyscrapercity.com/showthread.php?t=432320

http://farm1.static.flickr.com/161/350816052_0a392a0d28_o.jpg
http://carls.blogs.com/my_weblog/200...sett_fra_.html


compare daw(daw) ng GDP ng ibang countries compared sa GDP ng ibang states. (daw)

mas interesting kung "median family income" ang comparison sana...:D
surelly walang ASEAN member ang pasok jan..With Singapore and brunei as exemptions..

The WB official said the Philippines’ efforts in macroeconomic management are beginning to be noticed by the international community, indicating that Manila has actually exceeded its fiscal plans which were laid out by its economic managers in the previous year.

"What we are seeing is the beginning of… circle of credibility which is, government makes announcements about its fiscal plans... which means investors and other observers begin to take those plans and projections seriously because they have track record of achieving those projections," he said.

This means we have ceased to be a joke. The government is now able to achieve its fiscal targets on a consistent basis. All eyes will also be on us when we exercise our right to vote in the May elections. Hopefully we don't shoot ourselves in the foot again.

OT:

i found this on the Thai Forum http://www.skyscrapercity.com/showthread.php?t=432320

http://farm1.static.flickr.com/161/350816052_0a392a0d28_o.jpg
http://carls.blogs.com/my_weblog/200...sett_fra_.html


compare daw(daw) ng GDP ng ibang countries compared sa GDP ng ibang states. (daw)

If that is so, Philippines would be in the middle group because it is being compared to Oklahoma which is ranked 29th out of the 50 states in terms of nominal GDP.

^^ Indeed, we're laughing stock no more. We're really moving towards economic stability. In as much as the Philippine peso and the stock market continue to gain; the upcoming elections seemed not to be a misnomer for economic progress.

Since the government is also assuring the people and the international community that the upcoming election is not taken for granted by this administration through a proposed poll summit to ensure peaceful and orderly elections this coming May, I'd like to believe we can sustain this positive economic outlook that we have.

(UPDATE) January inflation at 3.9%


MANILA, Philippines -- Consumer prices rose 3.9 percent in January from a year earlier, the slowest pace since October 2003 and at the low end of the central bank's estimate, data on Tuesday showed.

The central bank had forecast headline inflation to come between 3.9 and 4.6 percent in January due to a strong peso and lower local fuel prices.

The National Statistics Office also said core inflation, which strips out volatile prices of some food and energy items, was 3.9 percent in January from a year earlier, against 4.6 percent in December.

The base year for inflation data is 2000.

Patricia Lui, managing analyst at Informa Globalmarkets expects the Bangko Sentral ng Pilipinas, Manila’s central bank, to continue to be cautious despite the low inflation numbers.

"January's headline inflation of 3.9 percent came in at the low end of central bank and market forecasts, thus suggesting the over-riding impact that the soaring peso was having on prices despite the heady overseas remittances and massive jump in December money supply. It only affirms the central bank's observation that excessive liquidity has yet to transpire into price pressures," she said.

She said the central bank could remain reluctant to jump the gun with its rate cuts especially with the Fed looking increasingly like it's on a prolonged rate pause while hikes in civil servants' wages are looming.

"Expectations of stronger government spending in coming months is another reason for the central bank to err on the side of caution," she said.

Frederic Neumann, an economist at HSBC in Hong Kong sees a possible 25 basis point cut at the next policy-setting meeting of the Monetary Board.

However, over the medium-term, he is concerned about inflationary pressures building up.

The Monetary Board is set to meet on March 8 to review interest rates.

In November, the central bank surprised investors by cutting overnight borrowing rates for deposits above P5 billion ($103 million), easing monetary conditions without cutting its headline rates amid a moderating inflation outlook.

The central bank said it expected annual inflation in January to come in between 3.9 and 4.6 percent.

The monetary authority estimates average inflation this year will come in near the low end of an official target range of 4 to 5 percent. Inflation in 2006 averaged 6.2 percent.

Reuters
http://business.inquirer.net/money/topstories/view_article.php?article_id=47836

^wow. that made my jaw drop. I didn't expect our inflation to slow down that fast. I thought it was hovering in 5-6% range. Truly, the appreciation of the peso is a big factor for this.

^^ If I remember it correctly, our inflation rate is playing from 4.5% to 6% for years. But now, we were able to put it down below the average. How could that be so easy for us now?

We're going for a stronger peso and a bullish stock market. Coupled with lower budget deficits and higher confidence of the international community to put their investments to us, I hope we can sustain this trend all year long.

Current pace of property development
fuels country’s economic growth
By Roger M. Garcia
Section Editor
http://www.businessmirror.com.ph/02082007/special_feature01.html
The economy is growing at a much rapid pace, primarily due to an unprecedented growth in real-estate development and construction that trickles down to a cross-section of the industry, from laborers to developers and from suppliers to marketers.

This observation of a domino effect of growth in the industry that pushes developers to hire more workers, loan more money, purchase more materials, and sell more units is mirrored by executives of CB Richard Ellis (CBRE) Philippines, a member of the world’s largest commercial real-estate services firm in terms of 2005 revenue.

In an interview, CBRE Philippines vice chairman Joey Radovan and research and consulting director Victor Asuncion pointed to the current stability in lending rates and foreign exchange, coupled with sustained demand for space across major segments, as reasons behind the sudden surge in real-estate and construction activity.

“In turn this [real-estate activity] will effectively fuel the economic growth of the country in 2007 and onwards,” the two executives said.

Radovan and Asuncion also cited the upswing in high-value and high-density construction projects based on mid-2006 figures as the basis for their observation.

“The total value of construction during the second quarter of 2006 increased by 16.1 percent, reaching up to P31.4 billion from P27.1 billion recorded during the same period in the previous year,” Radovan said.

“This is despite the reported decline in the approved building permits nationwide that decreased to 26,563 during the second quarter of 2006 from 27,773 in 2005,” he added.

Asuncion enumerated what he called the notable drivers of the value growth in construction as the increasing demand for new office space for business process outsourcing companies and the renewed demand for vertical and horizontal residences for new households.

“These are direct effects of the stable mortgage rates that are moving sideways with a downward bias,” Asuncion said.

He also cited the increasing dollar remittances from migrant Filipino workers that had consistently fueled demand for consumer goods and services, which in turn encourages enterprises to expand production capacity and retail spaces.

The current real-estate upswing is a critical factor in driving the economy to sustained growth, the two experts said.

“Take, for example, the expected pipeline of new office space expected to be ready for occupancy by year end. CB Richard Ellis Philippines intercepted approximately 246,919 square meters of new office space coming on stream in 2007, with an estimated value of about P7 billion, mostly in the Bonifacio Global City and the Bay Area,” Radovan said.

This figure, however, excludes ongoing government infrastructure projects scheduled for implementation in 2007, Radovan clarified.

The increased economic activity is apparent in the industry and service components of the gross domestic product. It is expected to go up to the gross national product with the inclusion of net factor income from abroad, represented by the continuous growth in dollar remittances by Filipinos living and working overseas.

In December last year, real-estate industry stakeholders predicted that 2007 would be a banner year for developers and the construction sector, citing figures that showed an increase in demand for properties from migrant workers and balikbayans.

IMF sees Philippine GDP expanding 5.8% in 2007


By Erik de la Cruz
Xinhua Financial News Service
Last updated 10:32am (Mla time) 02/08/2007


MANILA, Philippines -- The International Monetary Fund expects the Philippine economy to grow at a faster pace of 5.8 percent this year, reflecting improved investor confidence following fiscal reforms, but it said it was still worried about the huge public debt.

The country's gross domestic product grew 5.4 percent in 2006, below the IMF's forecast of 5.5 percent.

"Public debt remains sensitive to rollover and exchange rate risks and external commercial borrowing requirements, while declining, are still significant," the
IMF said in a statement following a regular consultation with Philippine authorities.

It urged Manila to sustain the reform momentum to maintain market confidence.

"Impressive fiscal reforms in an environment of sustained growth and declining inflation have strengthened market confidence in the Philippines," the Fund said.


http://business.inquirer.net/money/breakingnews/view_article.php?article_id=48231

Boom
FIRST PERSON By Alex Magno
The Philippine Star 02/08/2007

Investors are complaining they could not find office space in the country. That is a good problem. It tells us that our economic growth is gathering strength and will probably exceed current estimates.

The construction industry did not properly anticipate the boom in demand for office space, especially from locators of business process outsourcing firms. That, too, is understandable.

In 2005, when business decisions should have been made for office buildings that should now be open to the market, the political climate was murky. Troublemakers were running amuck in the streets. There was an active conspiracy to force government to fall. President Arroyo’s promise of a regime of fiscal discipline had yet to be demonstrated with the passage of the reformed VAT.


http://philstar.com/philstar/NEWS200702082606.htm

If that is so, Philippines would be in the middle group because it is being compared to Oklahoma which is ranked 29th out of the 50 states in terms of nominal GDP.

IT ONLY MEANS THAT SEVERAL BIG STATES IN THE US LIKE CALIFORNIA, TEXAS, NEW YORK, FLORIDA HAVE GDPS WHICH ARE COMPARABLE TO SOME OF THE WEALTHEIST NTIONS IN THE WORLD LIKE FRANCE, CANADA, KOREA, BRAZIL ( IN FACT IF CALIFORNIA WAS A NATION ITS ON THE TOP TEN OF THE LARGEST ECONMIES IN THE WORLD ONLY THE US, CHINA, INDIA, JAPAN AND GERMANY ARE BIGGER)

The country’s foreign currency reserves reached a new record $23.76 billion by the end of January after $790 million in net reserves were added in January, double that in December, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday.

The BSP said the rising forex reserves level is a factor for the strengthening peso and may encourage the further relaxing of rules governing foreign exchange outflows.

Dollar outflow is currently restricted at no more than $6 million a day under BSP rules.

The sustained inflow of dollars and the limited volume being allowed to escape the system has buoyed the local currency to some P48.50 per dollar in recent days, an exchange value it has not attained for nearly six years.

Socio-economic planning Secretary Romulo Neri, also a member of the policy-making monetary board of the BSP, has revealed plans for the easing of regulations on foreign exchange outflows to soothe frayed exporter nerves.

BSP Gov. Amando Tetangco Jr. said the $23.76-billion gross international reserves drew strength from continued foreign exchange inflows lured by strong market confidence and sustained by improving macroeconomic fundamentals.

“In particular, the rise in reserves was due in part to the national government’s deposits of the proceeds from its $1-billion global bond issue which was well received by local and foreign investors,” he said.

The bond sale in January completed the government’s commercial borrowing activities for the year, leaving it to exploit so-called official development assistance packages or ODAs that carry sub-market interest rates.

According to Tetangco, the foreign exchange reserves should be sufficient to cover 4.55 months of imports, also a new record.


http://www.tribune.net.ph/business/20070208bus6.html
By Ruben Hortelano

The IMF expects the gross domestic product of the Philippines to grow by 5.8 percent this year and could further expand by as much as seven percent if ongoing economic reforms are completed over the medium term. I think that is good news so all we have to do is to sustain the momentum towards balancing the budget while raising public spending on infrastructure and social services. It is social payback time. The economic reforms must be implemented together with cooperation from the different sectors to balance off both spending and revenue.

^^ Hey, that was a good article link you posted. Its good to know that many more filipinos are positive about the economic outlook of the Philippines.

I am fil-am and even from Los Angeles, the whole world seems to be watching!!! Hehe.. :lol: Well, at least some of us, that is! :D

The key word is SUSTAINABILITY! So let's keep this economic momentum moving forward, for better or worse. And when things do seem to get worse, let us see if we really have the courage to keep moving forward regardless of all the political noise we may encounter.

:banana:

RP remains top exporter of virgin coconut oil
By Helen Flores
The Philippine Star 02/09/2007

The Philippines remains the top exporter of virgin coconut oil (VCO) in the world market because of the country’s advanced technology in the production of the popular health product, an official of the Philippine Coconut Authority (PCA) said.

"The Philippines is keeping its lead in VCO production over Indonesia which could be a competitor in the world market. However, considering that our country is ahead of them in this technology, we have a competitive edge with foreign investors interested to venture in this industry," said Carlos Carpio, PCA deputy administrator for research and development. more (http://www.philstar.com/philstar/NEWS200702090715.htm)

We're still the number 1 exporter of coconut products, and maybe with the development of the coco biodiesel industry, we would eventually also become an exporter of biodiesel. The government should step up its efforts in making the benefits felt by small coconut farmers, though.

if Metro Manila's real GDP per capita is P180,000 or roughly US$3000, i wonder how does that compare to Makati's alone..

Foreign direct investments in the Philippines rose to a five-year high of $ 2.0 billion in the 11 months to November 2006, buoyed by a much-improved economy, the central bank said Friday.

"Investor confidence was boosted by the solid macro-economic fundamentals as evident in the much-improved fiscal position, steadily declining inflation, the favorable external payments position, strong corporate earnings and the upgrade in the country’s credit outlook in November by Moody’s Investor Service," it said in a statement.

The 11-month net FDI total was the highest since 2001 and equalled the governments’ full-year target of $ 2.0 billion for 2006, the central bank said. The figure includes FDI flows of $ 46 million for November 2006.

"Given this development, the forecast level is likely to be exceeded."

The central bank defines FDI to include equity investments reinvested profits and other capital flows such as loans extended by head offices to their subsidiaries in the Philippines.

Net equity capital inflows during the period reached $ 1.04 billion, channelled mostly into manufacturing, services, real estate, financial intermediation and construction.

Inter-company borrowing recorded a net inflow of $ 947 million, more than 12 times the level realized during the comparable period in 2005.

The Netherlands, the United States, Japan, Britain, Germany and Switzerland were the major sources of FDI inflows, the central bank said.

Meanwhile, foreign investment in Philippines stocks, bonds and other financial instruments stood at $ 252.52 million in January, more than reversing an outflow of $ 115.47 million a year earlier, the central bank said.

www.mb.com.ph

The country’s total exports for 2006 grew 14 percent to $ 47.03 billion, outpacing the government’s growth target of 10 percent, the National Statistics Office reported yesterday.

But weak electronics shipments saw Philippine exports fall 3.8 percent in December for the first downturn in 13 months.

Exports in December alone fell 3.8 percent year-on-year to $ 3.68 billion after a 10.7 percent gain in November, the National Statistics Office said.

Shipments of electronics, which accounted for 61.5 percent of total exports in December, dropped 12.1 percent year-on-year to $ 2.26 billion.

Exports to the United States, accounting for 18.2 percent of total receipts in December, fell 11.3 percent to $ 671.27 million.

The government’s 6.1 to 6.7 percent economic growth forecast for this year is anchored on an 11 percent increase in exports.

Frances Cheung, an economist with Standard Chartered Bank in Hong Kong, said: "The number is quite disappointing.

"What this tells us is that the trend is still toward a deceleration in global demand.

"The electronics cycle has already peaked and while there has been some rebound lately ... it will taper off this year in particular as global demand will trend down," Cheung said.

Cheung forecast export growth of 6.8 percent for this year.

David Cohen, director of Asian economic forecasting at Action Economics LLC in Singapore, said export growth would slow to 7.0 percent this year.

"The growth will continue but not at as robust a pace as the Philippines had last year," he said.

Cohen said that while the United States, the Philippines’ biggest trading partner, was largely expected to slow this year, the big picture remained bright.

www.mb.com.ph

Foreign investment in Philippine stocks, bonds and other financial instruments stood at 252.52 million dollars in January, more than reversing an outflow of 115.47 million dollars a year earlier, the Bangko Sentral ng Pilipinas said Friday.

"This development reflected continuing bullish investor sentiment on the country's economic prospects following evidence of sustained improvement in economic and financial indicators," BSP Gov. Amando Tetangco said in a statement.

He cited the continued slowdown in inflation to 4.3 percent in December, a better-than-expected balance of payments surplus of $3.77 billion in 2006 and the reduction in the fiscal deficit to P62.2 billion for the year.

www.abs-cbnnews.com

The Joint Foreign Chambers in the Philippines is confident the country can attract billions of dollars in new investments.

The chamber said $9 billion worth of foreign direct investments (FDI) can be infused into the economy every year over the next four years, if the country's investment climate, labor quality and physical infrastructure continue to improve.

The foreign chambers based their continued optimism on the recent report of the Bangko Sentral ng Pilipinas (BSP) that net Foreign Direct Investment (FDI) inflow into the Philippines reached $1.96 billion from January to October last year, an increase of 75 percent over the same period in 2005.

The recovery of FDI in the Philippines, the group said, is extremely encouraging and reflects the strong economic growth of the world's major economies and the record flow of FDI into Asia as well as ASEAN.

Singapore, Thailand and Vietnam received unprecedented amounts of FDI in 2006.

At this point, the Joint Foreign Chambers said the Philippines is receiving about five percent of total FDI in ASEAN which hit $40 billion last year. The People's Republic of China again received over $60 billion, the highest in Asia.

Investors have begun to recognize and reward the positive economic news coming from the Philippines, including a decreasing public sector deficit, improving government revenues, steady GDP growth, low inflation, a strengthening peso and planned spending on infrastructure and education.

These investments, if realized, would generate over 2.9 million direct and indirect jobs annually from 2007-2010.

World Bank Country Director Joachim von Amsberg has said that the Philippines is at a pivotal moment.

After recovering from the brink of a fiscal crisis two years ago, the Philippines can either be complacent and muddle through, or sustain the momentum to take off and achieve real improvements in the economy and, consequently, quality of life.

The country, however, has to improve governance, such as by addressing red tape, ensuring the transparency of the bidding process, respecting the sanctity of contracts and consistently enforcing laws.

The country also needs to be more foreigner-friendly, beginning with the removal of restrictions on foreign investment and the liberalization of the practice of professions.

Certain laws, such as the Build-Operate-Transfer law, need to be amended as well.

The many good existing laws, on the other hand, such as those on protecting intellectual property rights, against corruption and smuggling, and the Mining Act, need to be properly implemented and enforced.

At the same time, human resources and physical infrastructure need considerable improvement.

A stronger and more effective education system, improved English proficiency, and better skills training are needed to make our workforce more competitive, while land, air, and sea transportation all need extensive modernization.

The rising tide of trans-border capital flows is fueling economic growth in ASEAN, including the Philippines.

The Joing Foreign Chambers hopes that with recent reforms intended to improve the fiscal situation, infrastructure, education and national competitiveness, the country would see the benefits of these and future reforms leading to more FDI, higher economic growth and better jobs for more Filipinos.

http://www.goodnewspilipinas.com/

GMA stays focused on economy
DESPITE FULFILLING HER CAMPAIGN
RESPONSIBILITIES TO RULING PARTY
By Mia Gonzalez and Jennifer Ng
Reporters

President Arroyo would remain focused on her economic plans amid the “escalating” political noise generated by the May 10 elections, and despite her position as Chairman of the ruling party, Malacañang said on Sunday.

Assuring the business community that the forthcoming polls will not disrupt the country’s economic path, Press Secretary Ignacio Bunye said in his weekly column that the President’s participation in the campaign would only be in fulfillment of her duties as party leader.

“The President, herself, has refused to be distracted by the escalating political noise. She intends to stay focused on her job although as titular head of the biggest political coalition, she will have to go through with the customary grand proclamations of the administration ticket,” Bunye said.

Mrs. Arroyo is expected to lead the major election kickoff events in Manila and Cebu, said Bunye, “but for the most part, she will be governing: continuing on a path of economic reform, cleaning up our environment, providing better health care, investing in education and creating good jobs.”

He said that the President will continue pursuing the “clear roadmap” she had set out at the start of her term by building on her fiscal reforms that have generated enough funds to wean the country from heavy borrowing at home and abroad, and for the government to pursue its superregions project.

“With a clear roadmap, President Arroyo has turned the corner on our economy: the credit rating agencies have recognized that new revenue sources are here to stay; our budget will be balanced two years ahead of original schedule; our stock market is up; the peso is strong....These are the keys to lifting the poor up and we are doing that for the first time in a generation and this is reason for optimism and hope for many Filipinos,” Bunye said.

In Laoag City on Saturday night, the President announced that the Department of Budget and Management has approved the release of the first six months tranche of Republic Act 7171, otherwise known as the tobacco excise tax law, to subsidize the province’s infrastructure and social services projects. She credited this to the strong performance of the peso and low interest rates.

Meanwhile, the National Antipoverty Commission (NAPC) is confident that the possible changing of guards, especially at the local level, will not jeopardize the antipoverty initiatives of the government.

The NAPC, which is at the forefront of the government’s efforts to fight poverty especially in the countryside, has been banking on the full support of local government units (LGUs) to help bankroll antipoverty programs.

“I don’t think [newly elected] officials can afford to abandon the antipoverty initiatives of their predecessors. I don’t think the issue of fighting poverty will be politicized,” NAPC lead convenor Domingo F. Panganiban said.

RP rises in CalPERS list; gov't says PERC findings baseless

BY CHARO LOGARTA AND MIRANDA DE QUIROS

The Philippines has risen to the 10th spot in the California Public Employees' Retirement System (CalPERS) list of permissible investments, the government said on Wednesday.

The score increased the Philippines' ranking among 26 other emerging markets from number 14 in 2006.

Government officials released to the media a copy of the CalPERS report to offset the impact of the latest survey results of Singapore-based Political and Economic Risk Consultancy, which ranked the Philippines as one of the riskiest places to do business in Asia.

"We believe that the Political and Economic Risk Consultancy should take a second look at their rating for the Philippines. It seems to be based on old perceptions," Socio-Economic Planning Secretary Romulo Neri said.

Trade Secretary Peter Favila said the PERC findings on the Philippines were unfair and baseless.

"The PERC people should sit down with us and assess the Philippines from Manila. How can they say the Philippines is risky when the numbers show otherwise?," said Favila.

Favila pointed out that exports grew 14 percent in 2006, above government's projected growth target of 10 percent.

PERC Survey

In a best-to-worst ranking from zero to 10, Singapore got an overall score of 2.74, beating Japan which was in second place with a grade of 3.13, PERC said in the survey.

Singapore's score was slightly lower than Australia's 2.69 but better than that of the United States at 3.15. Australia and the United States were included in the Asian survey as a basis for comparison, according to PERC.

Excluding those two nations, Hong Kong came in third after Japan with a score of 3.33, followed by Malaysia at 4.66, Taiwan at 4.76, South Korea at 4.78 and Vietnam at 5.36.

China was in eighth place with a grade of 5.44, followed by Thailand at 5.49, the Philippines at 5.74, India at 6.24 and Indonesia at 6.79.

RP surpasses other markets

But Neri said perceived risks from Philippine politics and institutions may be a form of hangover from the political crisis in 2005.

"But that's dead and buried," Neri said.

According to a memorandum to President Gloria Macapagal Arroyo from Foreign Affairs Secretary Alberto Romulo dated February 1, the CalPERS report "is expected to encourage global fund managers to increase investments in the country as they take their cue from a global leader in the investment industry."

The foreign affairs department said Wilshire Associates, the consulting firm of CalPERS, has given the Philippines a score of 2.13, the highest achieved by the country, compared to last year's 2.1.

The Philippines surpassed other Asean emerging markets like Thailand with 2.2; Indonesia, 2.1; and Malaysia, 2.0.

In determining the viability of a country as CalPERS investment destination, Wilshire Associates considered several factors including overall political stability, labor practices, investor protection, capital market openness.

With an investment portfolio valued at $194 billion, CalPERS is the US' largest pension fund and is recognized as a global leader in the investment industry.

SOURCE: http://www.abs-cbnnews.com/storypage.aspx?StoryId=66797

^good news indeed

Shares close at 10-year high

Xinhua Financial News Service
Last updated 01:10pm (Mla time) 02/15/2007
http://business.inquirer.net/money/breakingnews/view_article.php?article_id=49635
MANILA, Philippines -- Share prices closed stronger Thursday on broad-based buying that lifted the main index to a fresh high in a decade with investors upbeat about the outlook for the Philippine economy, dealers said.

With no bad news in sight, traders pushed the key index higher after it finished above the 3,300 psychological barrier on Wednesday.

At the close, the 30-company composite index was up 78.43 points or 2.38 percent at the day's high of 3,379.37. It hit a low of 3,300.94.

It was also the index's best finish since Feb. 10, 1997 when it ended at 3,386.02.

The broader all-share index rose 49.44 points to 2,127.55.

Gainers overwhelmed losers 107 to 24, while 50 stocks were unchanged.

A total of 4.9 billion shares worth P5.8 billion changed hands.

"The continuing flow of good news and the technical breakout above the 3,300-point level yesterday encouraged investors to buy more stocks," said Astro del Castillo, managing director at First Grade Holdings.

"We're overbought and we expect to consolidate, but it's so hard to stop the raging bulls," del Castillo said, adding he sees the next resistance level at 3,400 points.

"But given the market's 4.5 percent gain in the past two sessions, the bulls need to take a rest."

Dealers said investors were also encouraged by hints that the Federal Reserve may keep US interest rates on hold following less hawkish comments from Fed chairman Ben
Bernanke overnight.

"This means that the US economy continues to be strong despite perceptions of a slowdown," said Ron Rodrigo, research head at Unicapital Securities.

The US is one of the main markets for Philippine exports, and steady interest rates there mean less upward pressure on interest rates here.

Top-traded Philippine Long Distance Telephone Co. rose P55 or 2.14 percent to P2,620.

Conglomerate Ayala Corp. advanced P20 or 3.13 percent to P660.

Banks outperformed the market, with Metropolitan Bank & Trust Co. gaining P3 or 4.62 percent to close at P68 while Banco de Oro Universal Bank jumped P2.50 or 4.07 percent to P64.

Equitable PCI Bank, which will merge with Banco de Oro before the second quarter, was up P9 or 8.26 percent at P118.

Macquarie Research analyst Gilbert Lopez said Philippine banks are poised to increase their lending activities and see loan growth of 14 percent this year – the fastest pace since 1998 -- given the bullish outlook for the economy, which it expects to grow by 6.5 percent this year.

Food and beverage firm San Miguel Corp.'s A-shares rose P0.50 to P65 but its B-shares fell P2.50 to P76.50.

Awesome, awesome news! We might see it break the 3,400 resistance level within the next 2-3 weeks. Getting closer and closer to the all time high!

http://www.philstar.com/philstar/NEWS200702150703.htm

Share prices closed sharply higher yesterday, adding 2.07 percent as strong gains on Wall Street overnight provided a clear lead, dealers said.

They said the market closed at its highest level in nearly 10 years after Wall Street’s rally encouraged investors to resume buying of select blue chips.

The composite index gained 67.03 points at 3,300.94 after trading between 3,304.37 and 3,239.83. The broader all-share index rose 36.97 points to 2,078.11.

Gainers outnumbered losers 83 to 48 with 46 stocks unchanged. Turnover was 9.96 billion shares worth P5.22 billion.

"The upsurge in the US market encouraged investors to resume buying in select big caps," DA Market Securities president Nestor Aguila said.

"Sound economic fundamentals are also intact and this justifies the market’s uptrend," he added, citing the strong peso, easing inflation and interest rates, and the government’s improving fiscal performance.

Philippine Long Distance Telephone Co. (PLDT) was one of the biggest winners on the day gaining P80 to P2,565.

Conglomerate DMCI Holdings Inc. was the most actively traded stock due to several cross transactions worth P560.9 million but it ended unchanged at P7.20.

Conglomerate Ayala Corp. rose P20 to P640 and property developer Megaworld Corp. was up 25 centavos at P2.90.

Food and beverage firm San Miguel Corp.’s A and B shares were unchanged at P64.50 and P79, respectively.

An improvement in the country’s credit outlook to "positive" from "stable" is dependent on the government’s fiscal reforms, Agost Benard, an analyst at Standard & Poor’s, said in a briefing Tuesday after the close of trading. Bernard also noted improvement in revenue collection as the government suppresses some budget spending.

A positive outlook means credit rating company Standard & Poor’s will likely raise the country’s BB- debt rating, which is three levels below investment grade. A higher rating will cut overseas borrowing costs for the government and companies.

Ayala, the nation’s fourth-largest company by market value, rose P20, or 3.2 percent, to P640, snapping a five-day, 6.1-percent slump. SM Investments, the country’s second-biggest company by market value, gained P5, or 1.3 percent, to P390.

Among other shares getting a boost from credit-outlook hopes, Megaworld Corp., a Philippine builder of residential and office towers, jumped 25 centavos, or 9.4 percent, to P2.90, its biggest gain since May 8. SM Prime Holdings Inc., gained 25 centavos, or 2.1 percent, to P12, its biggest rise in almost two weeks. — AFP, Bloomberg

CalPERS lifts RP rating

Country rates higher than China

CalPERS (California Public Employees’ Retirement Fund), the US’s largest pension fund and a top global leader in the investment industry, has raised its rating of the Philippines, placing the country above China, India, Malaysia, Thailand and Indonesia.

The CalPERS report was made known in a memorandum Foreign Affairs Secretary Alberto Romulo sent to President Arroyo on February 1. Executive Secretary Eduardo Ermita and Socio-Economic Planning Secretary Romulo Neri announced the ratings upgrade to reporters on Wednesday.

Ermita, Neri and Palace spokesman Secretary Ignacio Bunye cited the CalPERS rating to counter the results of the latest survey by the Singapore-based Political and Economic Risk Consultancy (PERC) which ranked the Philippines as one of Asia’s riskiest places to do business in.

http://www.manilatimes.net/national/2007/feb/15/yehey/top_stories/20070215top1.html

Shares is on its 10-year high while peso surges to its 6-year high. CalPERS has given us a positive outlook with regard to putting up investments in the country. It seems all the economic indicators are turning on a positive side.

^^ I would not be bothered if our GDP will reach a 7% growth instead of the usual 5to 6%.

^^ Also, please note that CalPERS have substantial assets in real estate here in the U.S. and abroad.

Someone there must have seen all the real estate boom going on here in the Philippines...

Or here at Skyscrapercity.com.... :lol:

^^ Here's a news clip about CalPERS...

CalPERS portfolio reaches record market value of $189.8bn
26/07/2005. Source: AltAssets.

The California Public Employees' Retirement System recorded a 12.7 per cent investment return for the one-year period ended 30 June 30 2005, raising its portfolio's market value to a record $189.8bn. The giant pension fund said private equity, real estate and international stocks were the main performance drivers during the year.

Note the year of the article is 2005. Although two years old, keep in mind our growing real estate and stock market are the main factors for the recent improved rating. That is their forte, mostly real estate and stocks at the international level.

Also a report from Malacanang...

Statement of Secretary Ignacio R. Bunye Re CalPERS

The sound economic policies of the President and the strong political will that the government has displayed in implementing fiscal and political reforms are the main reasons behind the increase in the Philippines’ ratings as an investment destination for the powerful CalPERS or the California Public Employees’ Retirement System.

The Philippines passed the stringent tests applied by CalPERS that included the country’s political stability, transparency and labor productivity.

We thank CalPERS for this vote of confidence. This is a challenge to Congress to act responsibly and pass needed fiscal and political reforms, including changes in our Constitution to further improve the political atmosphere in our country.

Hopefully the CalPERS report will reflect the test criteria as mentioned above and prove Trade Secretary Peter Favila's point to Singapore-based Political and Economic Risk Consultancy (PERC).

CalPERS lifts RP rating

Country rates higher than China

CalPERS (California Public Employees’ Retirement Fund), the US’s largest pension fund and a top global leader in the investment industry, has raised its rating of the Philippines, placing the country above China, India, Malaysia, Thailand and Indonesia.

The CalPERS report was made known in a memorandum Foreign Affairs Secretary Alberto Romulo sent to President Arroyo on February 1. Executive Secretary Eduardo Ermita and Socio-Economic Planning Secretary Romulo Neri announced the ratings upgrade to reporters on Wednesday.

Ermita, Neri and Palace spokesman Secretary Ignacio Bunye cited the CalPERS rating to counter the results of the latest survey by the Singapore-based Political and Economic Risk Consultancy (PERC) which ranked the Philippines as one of Asia’s riskiest places to do business in.

http://www.manilatimes.net/national/2007/feb/15/yehey/top_stories/20070215top1.html

This indeed great news. CalPERS actually threatened to pull out its exposure in the Philippines as it was growing impatient about the implementation of reforms. But fortunately it retained our beloved country in its list for permissible investment destinations. The implementation of Republic Act 9337 (Expanded Value Added Tax Act of 2005) contributed to the confidence of this pension firm in the Philippines . We are now regaining economic strength as evidenced by the positive assessment of foreign firms in our economy. Fitch Ratings and Moody’s Investor Service upgraded the country’s credit rating to stable from negative.

Investment risks

After raising hell about the country’s near-bottom rating for economic risk in a recent survey, the government should take a close look at the reasons for the ranking. The Philippines was rated third from last among Asian economies in the latest survey of expatriates in the region. The poll is taken regularly by the Political and Economic Risk Consultancy. In the latest PERC survey, the Philippines was ranked ahead of India and Indonesia, trailing Thailand and even Vietnam.

Philippine economic managers, basking in positive macroeconomic figures and the strong peso, may have reason to gripe about the country’s ranking. But the Philippines was rated against its neighbors, and many Filipinos will agree that the country has a lot of catching up to do. Unless those expatriate respondents were in a drunken stupor, they could not have rated the Philippines better than perennial topnotcher Singapore in terms of economic risk. Japan came in second, followed by Hong Kong, Malaysia, Taiwan and South Korea.

Vietnam was rated ahead of China, which ranked higher than Thailand where PERC warned that economic risks were rising sharply.

That’s hardly an inaccurate comparative assessment. The rankings were based on the risks posed to investments in Asian economies by domestic politics, institutions, human resources, social instability, physical factors and external developments.

In politics and institutions alone, the Philippines can be considered an investment risk. Private contracts are overturned from one administration to the next, or frozen indefinitely by the courts. The inefficient regulatory environment and weak judiciary are risk factors. Such problems are minimal or even non-existent in several of the economies that were rated higher than the Philippines in the PERC survey.

The Philippine government may dispute the rankings of Vietnam and Thailand, where a military coup and subsequent protectionist policies coupled with bombings at the start of the year have rattled investors. But even as Philippine officials voice their protest, they should also consider why the two countries received better rankings. Vietnam in particular is increasingly attracting more investments and tourism.

The Philippine economy is doing well, but others are performing better. Compared with many of its neighbors, the Philippines is a laggard where the benefits of economic growth have not trickled down to the grassroots. Instead of griping about survey results, government economic managers must study areas of improvement to reduce investment risks.

Investment risks

After raising hell about the country’s near-bottom rating for economic risk in a recent survey, the government should take a close look at the reasons for the ranking. The Philippines was rated third from last among Asian economies in the latest survey of expatriates in the region. The poll is taken regularly by the Political and Economic Risk Consultancy. In the latest PERC survey, the Philippines was ranked ahead of India and Indonesia, trailing Thailand and even Vietnam.

Philippine economic managers, basking in positive macroeconomic figures and the strong peso, may have reason to gripe about the country’s ranking. But the Philippines was rated against its neighbors, and many Filipinos will agree that the country has a lot of catching up to do. Unless those expatriate respondents were in a drunken stupor, they could not have rated the Philippines better than perennial topnotcher Singapore in terms of economic risk. Japan came in second, followed by Hong Kong, Malaysia, Taiwan and South Korea.

Vietnam was rated ahead of China, which ranked higher than Thailand where PERC warned that economic risks were rising sharply.

That’s hardly an inaccurate comparative assessment. The rankings were based on the risks posed to investments in Asian economies by domestic politics, institutions, human resources, social instability, physical factors and external developments.

In politics and institutions alone, the Philippines can be considered an investment risk. Private contracts are overturned from one administration to the next, or frozen indefinitely by the courts. The inefficient regulatory environment and weak judiciary are risk factors. Such problems are minimal or even non-existent in several of the economies that were rated higher than the Philippines in the PERC survey.

The Philippine government may dispute the rankings of Vietnam and Thailand, where a military coup and subsequent protectionist policies coupled with bombings at the start of the year have rattled investors. But even as Philippine officials voice their protest, they should also consider why the two countries received better rankings. Vietnam in particular is increasingly attracting more investments and tourism.

The Philippine economy is doing well, but others are performing better. Compared with many of its neighbors, the Philippines is a laggard where the benefits of economic growth have not trickled down to the grassroots. Instead of griping about survey results, government economic managers must study areas of improvement to reduce investment risks.

^^ ^^ ^^ how true. how true...

^^ That's right! Tama yan!

Especially when it comes to enforcing contracts, the Philippines has alot of catching up to do. Big examples of contract problems include Poro Point and the NAIA Terminal 3 issues.

My theory though is that will our economy continues to grow, the Philippines will have but no choice to confront issues like this and correct them.

More growth and prosperity for the Philippines means more accountability and responsibilities for all of us. Filipinos just have to be careful and do it the right way, without adding more bureaucracy than we have already!

Important issues to confront are the land title registration system, enforcement of contracts, and banking regulations that make more loans available to qualified people.

Awesome, awesome news! We might see it break the 3,400 resistance level within the next 2-3 weeks. Getting closer and closer to the all time high!

for sure..it will break it's all time high at 3400 plus ....4000 is not an impossibility by june if election would be peaceful..

Politics again to play decisive factor on RP momentum — analysts
http://www.tribune.net.ph/b
02/19/2007

The economy would post robust growth this year provided the perennial problem of politics does not get in the way, analysts say.

A raft of positive economic figures in recent weeks and the passing of the P1.13-trillion budget has been greeted positively by international investors.

The California Public Employees’ Retirement System (CalPERS) recently raised its rating of the Philippines, placing it above China, India, Indonesia, Malaysia and Thailand in terms of the countries in which it invests.

With an investment portfolio valued at $194 billion, CalPERS is the largest pension fund in the United States.

“This positive development is expected to encourage global fund managers to increase investments in the country as they take their cue from a global leader in the investment industry,” Foreign Secretary Alberto Romulo said.

Stable inflation and interest rates, a stronger currency and revived investor confidence as reflected in portfolio investment trends all point to better prospects for the economy, a recent report by the Institute for Development and Econometric Analysis (IDEA) said.

The Philippine Stock Exchange composite index last week hit levels last seen before the Asian financial crisis 10 years ago.

Remittances by some eight million overseas Filipino workers last year rose 19.4 percent from 2005 to a record $12.8 billion. This year remittances are expected to top $14 billion, according to a report by the Economist Intelligence Unit.

Economic Planning Secretary Romulo Neri said he was confident gross domestic product (GDP) this year would grow at 6.1to 6.7 percent, compared with 5.4 percent for 2006.

The budget for 2007 should see an increase in spending on infrastructure and services, which are expected to jumpstart economic activity, Neri said.

This is only the third budget President Arroyo has seen passed since she came to power in 2001.

Under Philippine law, if the budget is not passed by Congress, the government is forced to revert to the previous budget.

Last year, for example, the government had to reenact its 2005 budget, which limited its ability to increase spending on much-needed infrastructure projects, schools and social services.

But the slowdown in government spending did have a positive impact on the deficit, which last year fell to P62.2 billion, less than half the government’s P125-billion target ceiling for the year. The government intends to limit its budget deficit this year to P63 billion. Even the private sector is bullish.

Jaime Augusto Zobel, chairman of Ayala Corp., one of the Philippines’ largest conglomerates, said “the fundamentals are in place for sustained economic recovery and growth.”

“Key sectors of the economy are presenting opportunities that are creating multiplier effects on other industries,” he said as his company announced record net profits for 2006. But while the budget problem seems to be out of the way, political roadblocks remain.

Arroyo is facing congressional and local elections in May, which are widely seen as a referendum on her administration.

Campaigning is expected to be fierce, raising concerns the government will start giving out cash to win votes.

Whoever wins the election, there are likely to be charges of cheating and political bickering for months afterwards.

“I think GDP should be on the high end this year, especially after the elections are over,” said Alan Araullo of Regina Capital Development Corp.

“That’s the only obstacle. Everyone is worried about the elections,” he added.

The government also has earned an unfavourable reputation of reversing policies in the face of political pressure even though officials say such practices will not continue.

Henry Schumacher of the European Chamber of Commerce, told a recent forum of foreign correspondents that in 2007, “politics, as usual, clouds (Philippine) economic prospects. That’s the overriding message, election year or not.” AFP

oh well

Debt service savings: P11B

By Mia M. Gonzalez
Reporter

THE administration is looking at a huge savings in service. Budget Secretary Rolando Andaya Jr. said on Monday government stands to save P11 billion in debt payments if the peso settles at P48 to the US dollar.

He said in a statement the strengthening of the peso has a downside, however, because it would mean lower collections from the Bureau of Customs on imports and lower Official Development Assistance (ODA), which are in dollars.

Of the P318.1 billion earmarked for interest payments this year, he said P117.06 billion is for interest payment on foreign debt and the rest, for local obligations.

“If it settles at P48, then we will only be shelling about P109 billion for interest on our foreign obligations,” he said, adding that in the case of domestic loans, one factor that would “drag down” interest payments are lower interest rates.

The budget chief said that for every P1 appreciation against the dollar, the government’s interest expense goes down by P2.2 billion.

He said the P318.1-billion debt service fund in the approved 2007 budget was premised on a P53 to $1 exchange rate, but the stronger peso and lower interest rates prompted the Development Budget Coordinating Council to scale down the government’s interest payment schedule this year to P303 billion.

This lower figure is anchored on an exchange rate of P49 to a dollar. Andaya said that if the peso further strengthens to P47 to a dollar, there will be more funds for social services and infrastructure projects. “If that happens, we will be freeing more funds for productive uses such as social services and capital outlays and it makes the task of hitting the P63-billion deficit target for the year quite easier.”

In 2006, a stronger peso allowed the government to reduce interest payments by more than P30 billion.

But on the downside, Andaya said the budget council had agreed to cut the Customs collection target by P7 billion, or to P228.1 billion from P235.1 billion.

Andaya said that in the case of foreign aid on which government is “fairly dependent on” in terms of addressing its infrastructure backlog, the stronger peso means that for every dollar aid, computing from a rate of 48 to 1 from 54 to 1, government will “lose” P6.

He added that others hurt by the surging peso are exporters and dependents of overseas Filipino workers.

91-day T-bill rate dips to 2.8%,
lowest ever in RP's history

By Jun Vallecera
Reporter

THE 91-day Treasury bill rate, now no longer a benchmark for short-term borrowing, moved down 12.3 basis points on Monday and pushed the three-month borrowing rate still lower to 2.885 percent, the lowest in the country’s history.

If one has a mortgage on the house, or car, now is the best time to refinance that loan and take advantage of the drop in rates, bankers and government officials said.

Treasury chief and T-bills auction chairman Omar Cruz partly attributed the drop in rates to continuing ample liquidity even though the market only recently completed a P97.6-billion domestic bond exchange.

“The drop in rates is all a function of such drivers as inflation, which is falling, and improving fiscal conditions, among others. If inflation continues to abate globally and for as long as the fiscal position remains in the clear and there is fiscal order, then the government’s desire to borrow is already inputted by the market,” Cruz said.

The one-year T-bill rate also dropped by 17.8 basis points to 3.820 percent from 3.998 percent, but the intermediate or six-month rate lifted by 7.8 basis points to 3.395 percent.

This development made the yield curve more normal than in recent weeks, when longer-dated rates were higher than the short-term, Cruz explained.

Although he intended to sell no more than P4 billion worth of T-bills, the market flooded the auction with far more offers than there was to sell.

Only P500 million worth of three-month paper was for sale on Monday, but tenders hit P4.069 billion, or four times the available.

Six-month T-bills were six times oversubscribed, forcing Cruz to sell P2.1 billion instead of the planned P1.5 billion.

One-year tenders were eight times oversubscribed but Cruz sold only P2 billion worth as planned.

He said the banks no longer use the three-month T-bill rate as lending benchmark and have started using two-, three-, five or even seven-year rates when extending loans.

“Other benchmarks are now in use depending on the term of the borrowing,” he told reporters.

The low cost of borrowing, now at an all-time low, is an indication of consumer confidence, according to Cruz.

But he acknowledged this was not widespread as the manufacturing sector, for instance, is still reluctant to borrow and therefore not as robust as the services sector.

Philippine Savings Bank president Pascual M. Garcia III said by telephone the low interest rate regime should now force banks to focus on their core business, which is lending.

“This is now the realization of the borrowers’ market we anticipated months ago. The low interest rate regime is going to bring affordability of credit to more and more Filipinos with plans to purchase homes, cars and consumer goods. Access to credit has never been more concrete,” Pascual said.

He said more businesses were seen expanding as a result and consumer activities were similarly seen to shift to high gear over the near term.

“But the shift is going to be gradual, not a ballooning of events,” Pascual said

The government, which aims to cut debts and eliminate deficits, may realize savings on interest payments as the peso strengthens, Budget Secretary Rolando Andaya said yesterday.

At an exchange rate of 48 to a dollar, the country may save P11 billion on interest expenses this year, Andaya said. The government had assumed an exchange rate of 53 to a dollar in the 2007 budget, Andaya said.

Every peso gain cuts the interest expense by P2.2 billion, Andaya said.

Andaya said the government, had long recognized the “upward trajectory” of the local currency and “had in fact correspondingly upped the foreign exchange assumption of the budget to the P48-P50 to the dollar range.”

“If (exchange rate) it settles at P48, then we will only be spending about P109 billion for interest payment on our foreign obligations,” he said.

As to domestic obligations, one factor that would drag down interest payments are lower interest rates, he said.

These twin trends had prompted the DBCC to scale down government’s interest payment schedule to P303 billion this year, a projection anchored on a 49 to $1 exchange rate level.

“If that happens we will be freeing more funds for productive uses such as social services and capital outlays and it makes the task of hitting the P63-billion deficit target for the year, “ Andaya said

A strong peso reduced the country’s interest payment by more than P30 billion from the original P340 billion.

Andaya, however, recognized that there are downsides to a surging peso, one of which is a lower Customs revenue.

In fact, the DBCC had agreed to cut the collection target of the Bureau of Customs by P7 billion to P228.1 billion instead of P235.1 billion from the original 2007 budget.

A strong peso will also result in lower official development assistance proceeds, of which the country is “fairly dependent on” in wiping out its infrastructure backlog, he said.

http://www.philstar.com/philstar/NEWS200702200709.htm
By Paolo S. Romero

And now, it’s ‘7-8-9’ GDP growth

By Rommer M. Balaba
Reporter

A 7-PERCENT growth in the local economy this year is “numerically plausible and feasibly strategizable,” basing from a three-year growth strategy the Arroyo government is taking, it was claimed on Tuesday.

President Arroyo, at a luncheon she hosted for members of the Economic Journalists Association of the Philippines, Inc. and the Manila Overseas Press Club, cited in her speech the government’s gains and as well its priorities for the coming years—power cost reduction, food production and infrastructure development.

“Plan 789 aims for a gradual acceleration in GDP [gross domestic product] growth from 6 percent to 7 percent.. and break the narrow band of growth that has characterized Philippine growth where gains are easily wiped out by a crisis at the end of every cycle,” Salceda, also an economist, told business journalists.

The Development Budget Coordinating Committee, which sets the government’s fiscal and economic targets, pegged GDP expansion this year anywhere between 6.1 percent and 6.7 percent. Private sector forecasts nonetheless put growth at a lower range of 5.5 percent to 6.0 percent.

Plan 789 was a derivative of Socioeconomic Planning Secretary Romulo L. Neri’s Plan 747 that he brought with him to his first stint as director general of the National Economic and Development Authority. Neri’s plan calls for the economy growing 7 percent for the next seven years through massive resource mobilization.

The ambitious economic growth in the next three years can be attained with a shift in key performance targets like revenue growth from deficit reduction, and to gross value added “as all-consuming passion” from primary surplus, Salceda said.

“[The growth] goes beyond orthodox MTPDP-centric planning, where the government just sets out targets and prays that players in the economy will respond positively and global environment remains conducive,” he added.

The government under Plan 789 also aims to achieve an 8-percent GDP growth next year and a 9-percent growth in 2009, which Salceda boasted was an “arithmetic progression of 7 percent [GDP growth] and then 8 [percent].”

The business sector meanwhile said a 7-percent growth this year is attainable only if the government’s resources are now being utilized particularly on infrastructure.

“The question is if the economy can digest the additional spending for infrastructure… if it results in additional jobs or trickles down,” said Donald Dee of the Philippine Chamber of Commerce and Industry.

Astro del Castillo, managing director of First Grade Holdings, commented that the first-quarter GDP growth figures this year could confirm Salceda’s claim the economy can grow as fast as 7 percent.

“Let us see the first-quarter figures if they are really spending and it is trickling down… but it is numerically feasible if the resources are properly spent,” he added.

Salceda said the difference between the 6.1 percent, DBCC’s low-end target for 2007, and Plan 789’s 7 percent is only an additional P55 billion in nominal value; and given the government’s focus on infrastructure spending—with an additional P64 billion this year—and social spending, certain sectors are secured to achieve growths.

Growth drivers for the three-year span would be public investments for this year, foreign investments including the privatization of Transco and Masinloc next year and domestic investments in 2009 that will see booms in the tourism estates and hotels as well as in domestic manufacturing among others.

“To sustain traction of investor interest and preserve consensus for the strategy reforms would be legislated or implemented such as the preneed code, the Investment Company Act, the NFA rehabilitation and Epira amendments among others,” Salceda said.

http://www.businessmirror.com.ph/022...adlines03.html :applause: :applause:

The Arroyo administration is aiming for a more aggressive economic growth trajectory over the next three years, pegging the gross domestic product (GDP) to grow by seven percent this year, eight percent in 2008 and nine percent in 2009.

At a forum hosted by the Economic Journalists Association of the Philippines (EJAP), President Arroyo unveiled her so-called Plan 789 outlining an aggressive spending program intended to spur economic growth.

The economic growth target set by the Development Budget Coordinating Committee (DBCC) was only 6.1 percent for 2007, up from 5.4 percent last year.

However, Mrs. Arroyo said her government intended to sustain the 24 quarters of uninterrupted growth and possibly even push the momentum harder towards the end of her term.

She said the government plans to spend at least P1 trillion in infrastructure within the next three years while keeping the budget balanced beginning 2008.

"It is not easy to raise revenues by raising taxes and making people angry," Mrs. Arroyo said. "But it was necessary."

The Chief Executive said the decisions made by her administration and the reforms pushed by her economic managers need to be sustained to grow the economy faster.

"These efforts must be sustained and not derailed by political sideshows," Mrs. Arroyo said. "We have made tough but necessary decisions and these painful steps are paying off."

She pointed out that the government plans to increase expenditures up to four percent of GDP, putting the Philippines at least at par with the infrastructure spending of its neighbors.

"We have a vision where Filipinos can work here with their families, where hard-working people need not go to other countries to get well-paying jobs," Mrs. Arroyo said.

In the same forum, newly appointed Presidential Chief of Staff Joey Salceda said the economic surge has only started.

"We have recovered only 14 percent of what we lost during the Asian financial crisis," Salceda said. "That means we have a long way to go yet."

He said the seven, eight and nine percent GDP growth for the next three years is "numerically possible" and "feasibly strategizeable (sic)."

Salceda pointed out that between the DBCC target of 6.1 percent growth for this year and the aggressive target of seven percent , the economy needed to generate only P55 billion in gross value-added.

He said achieving the sharp growth trajectory would be supported by some P796 billion worth of projected revenues that the DBCC has not allocated over the next five years.

"I hope we end up spending all of that in infrastructure," Salceda said. "Then this plan will be even more feasible."

According to Finance Secretary Margarito Teves, however, Plan 789 has not been presented or discussed by economic managers in the DBCC.

Teves said the DBCC would have to run the numbers through its simulations and in the meantime, he said the 2007 growth target of 6.1 percent would stay.

"I am in favor of higher growth of course since this would mean ultimately that there would be an increase in the per capita income," he said.

At the very least, Teves said the government could stick to its commitment to keeping the budget balanced and spending the surplus on infrastructure development.

http://www.philstar.com/philstar/NEWS200702210707.htm
By Des Ferriols
The Philippine Star 02/21/2007

^^ I heard that Plan 789. It stands for the target GDP growth pala. :)

We've always been on the safe side with the economic targets, from 4 to 6 percent as always. Said target has been our goal for several years now. But now, the government is very much confident that we can reach the 7% GDP growth this year. With the economic boom that we are experiencing, who will not be that encouraged?

The government has been consistently meeting its fiscal targets so far. We started the year with way better prospects than we had just a few years ago. Hopefully this year's elections will not adversely affect our prospects of better economic growth.

^^ If this election will be peaceful and clean definitely the economy might grow 7% or better AND if we elect the right people... 7% is achievable. :banana: :)

Look to local drivers of growth in ’07

By Rommer Balaba
Reporter

THE foreign economic environment is not quite bright this year, so the Philippines should instead focus on the domestic front for further Gross Domestic Product (GDP) growth, according to the Ateneo de Manila University economic think tank, the Center for Economic Research and Development.

“It is very hard to be bullish in a kind of external environment that cannot provide impetus to Philippine growth,” said Cielito F. Habito, think tank director at the group’s economic and political briefing, “Eaglewatch,” Wednesday.

Habito, a former socioeconomic planning secretary, said that with global growth seen to moderate at 4.9 percent this year from 5.1 percent last year, mainly because of an expected slowdown by market giants the US and Japan, it follows that growth stimulus would have to come from the prevailing good news at home.

The target-setting Development Budget Coordinating Committee pegged GDP expansion this year at 6.1 percent to 6.7 percent. The center’s forecasting model points instead to a 5 percent to 5.6 percent growth.

But there is a 3-year strategy, touted as Plan 789, being firmed up by some of President Arroyo’s advisers, aiming to accelerate GDP growth to 7 percent this year, to 8 percent next year, and 9 percent by 2009.

Habito seems to think the ‘789’ plan to be quite high. He said the foremost challenge for the Arroyo government this time is how to “spread the benefits of economic growth,” which can be attained by job-generating growth, among others.

These work-producing sectors include the agriculture and services, particularly business process outsourcing, whose contribution to the economy is largely undervalued. “I am not sure if these are enough to get 7- percent growth, inasmuch as I would want that to happen, but surely it would accelerate growth.”

Among the domestic drivers he believes would propel economic expansion this year include tapering inflation, an improved fiscal position, surging overseas Filipino remittances, and improving foreign direct investments.

“This means higher consumption spending, stronger ability for government expenditures, and investment,” he said.

He said economic expansion has largely been propelled by consumption, which made up about 90 percent of recent figures, such that the “lack of investment-led growth had resulted into narrow continual narrow-banded improvements.” ( With M. Gonzalez)

*****

President Arroyo said on Wednesday she will not officially adopt her new Chief of Staff’s “Plan 789”—or a gradual acceleration of the gross domestic product from 7, 8, and 9 percent from 2007 to 2009.

The President told reporters after her televised roundtable conference in Malacañang that while she would be “happy” with the prospect of achieving such high growth, she would rather stick with the Medium Term Philippine Development Plan (MTPDP), which provides for 7-percent growth by the end of her term.

Asked about the chances of adopting Presidential Chief of Staff Joey Salceda’s “Plan 789” as the administration’s official growth target, she said, “I’m sticking to my MTPDP which is 7 percent by the end of my term.

RP stocks rise on capex for 2007
By Ian C. Sayson
Bloomberg


PHILIPPINE stocks rose for a second day. Philippine Long Distance Telephone Co. (PLDT) gained after the company said it will spend more on expansion this year.

Petron Corp. climbed after the company said it will spend $78 million to expand its petrochemical production capability. SM Prime Holdings Inc. advanced after a newspaper reported that parent SM Investments Corp. will build office space for call-centers adjacent to the unit’s shopping malls.

“A lot of companies are expanding and that’s a validation of their optimism that economic growth will accelerate,” said Fitz Aclan, who helps manage the equivalent of $2 billion at Manila-based Banco de Oro.

The Philippine Stock Exchange index added 3.61, or 0.1 percent, to 3378.92 at the noon close, after jumping 1.4 percent Tuesday. The index gained as much as 1.2 percent earlier Wednesday. Gainers beat losers 87 to 43, with 45 stocks unchanged in the broader market.

The measure is less than 100 points away from its record 3447.60 set on February 3, 1997, after rising 13 percent this year.

PLDT, the nation’s largest company by market value, added P10, or 0.4 percent, to P2,605. The company said Wednesday it will spend up to P22 billion to expand its network, up from P18 billion in 2006.

Petron, the biggest oil company in the Philippines, gained 5 centavos, or 1 percent, to P4.85, its highest close since May 12. The company said Tuesday after trading closed it will also separately spend P52 million for its jet fuel facility.



Smelling growth?

“COMPANIES wouldn’t be investing if they didn’t smell the economic opportunities,” Aclan said. “They are positioning to capture the gains of faster economic growth.”

SM Prime, the nation’s largest shopping mall operator, gained 50 centavos, or 4 percent, to P12.75. One of the projects SM Investments will build is a four- or five-floor building near SM Prime’s mall in Baguio, a city north of Manila, this paper reported, citing SM Investment executive vice president Hans Sy.

DMCI Holdings Inc., the nation’s largest construction company by market value, jumped 30 centavos, or 4.1 percent, to P7.60, its biggest gain in 15 days after the government said it will boost infrastructure spending and accelerate economic growth.

President Gloria Arroyo said Tuesday after trading closed that the government will spend P1 trillion in the next three years to construct more roads, bridges, ports and schools. Arroyo is targeting economic growth of at least 6.1 percent this year, the fastest since 2004.



EEI Gains

“HIGHER infrastructure spending could mean more business for construction companies and cement manufacturers,” Aclan said.

Among shares that could get a boost from infrastructure spending, EEI Corp., a Philippine construction and engineering company, rose 35 centavos, or 7.5 percent, to P5. Holcim Philippines Inc., the nation’s largest cement manufacturer, added 10 centavos, or 1.2 percent, to P8.70, the highest since March 1997.

Filinvest Land Inc., the nation’s largest builder of affordable homes, gained 2 centavos, or 1.1 percent, to P1.90, its highest since August 8, 1997.

“Because of the recent decline in interest rates, there’s optimism improved borrowing will continue and increase take-up for property undertakings,” said Grace Cerdenia, an analyst at 2TradeAsia.com in Manila.

The 91-day Treasury bill yield, which banks use to price loans and mortgages, fell to a record 2.885 percent at the government’s regular auction on February 19.

Robinsons Land Corp., a builder of office and residential towers, rose P1, or 4.6 percent, to P22.75, a record. Belle Corp., which is building a residential resort south of Manila, added 2 centavos, or 1.3 percent, to P1.56. (With reporting by Luzi Ann Javier in Manila.)

There's a lot of congratulations for GMA this time of the year. It may be attributed very well to the ovbious facts that the economy has been in good condition lately. GMA was obviously very glad at what's happening evidenced by her attitude during the economic briefing jointly hosted by the Manila Overseas Press Club (MOPC) and the Economic Journalists Association of the Philippines (EJAP). Like many observers have said, the numbers are clear – the economy is on an upswing. In fact these recent developments further enhanced the positive perception of the country as a feasible investment destination.

Eventhough GMA was confronted with tough times the previous years, her efforts to steer the country into progress is apparently bearing fruits. And as they say, numbers don’t lie.

I'm disappointed that GMA is not confident in achieving the GDP growth of Plan 789. Wasn't she the one that introduced a plan to reduce poverty in half by getting the economic growth up to 10% by 2010? What happened to that plan?

Joey S.’s debut as economic briefer
MY VIEWPOINT By Ricardo V. Puno Jr.
The Philippine Star 02/22/2007

Newly-minted Presidential Chief of Staff Joey Salceda, in office for all of two days, must be trying very hard to live up to Boss and former college economics professor GMA’s billing of him as one of her best students who may have even risen above his teacher. Now that’s an undeniably high compliment, and Joey soon gave evidence of how his mind sometimes works faster than his tongue. (I’m praising you here, Joey!)

In a super-speed power point presentation packed with government-sourced statistics, which Joey nevertheless made clear he had no reason to doubt, the ultimate conclusions were indubitable: Among many goodies, the economy is definitely on the move. We’re doing much better now than in the past — "24 quarters of continuous growth" since the President took over in 2000, he underscored.

The figures are, of course, difficult to dispute if you don’t have your own contrasting statistics. I also heard a bit of grumbling around and about me about the interpretation, as well as the completeness, of those figures. But since the nay-sayers didn’t have statistics on hand either, I guess the GMA economic managers will say they were just being their characteristically grumpy selves.

The undeniable fact is that the suits and barong lukot-yaman crowd are beside themselves with joy at the "velocity" with which the economy has been moving to positive ground. Just look, they say, at the much lower budget deficit. "The budget will be balanced by next year," Ma’m enthused, casting a smile and a meaningful glance directly at Finance Secretary Gary Teves.


http://philstar.com/philstar/NEWS200702222606.htm

^^ At least she set herself a goal. And remember, she is trying her best to UNDUE all the years of mismanagement and fiscal irresponsibilities that happened before her presidency.

Almost 20 years of dictatorship, 2 EDSAs, a housewife president and an impeachment, don't you think the Philippines is doing well for now despite this past turbulent history?

The Philippines still has a long way to go, but we just need to support our leaders who are trying to make a difference.....

That's a good point. But even foreign firms are being bullish about the economy at this point, why not set high goals from the President? Although I understand the effects of overshooting.

^^ Yeah true. Maybe GMA needs to really follow through until her term ends. Because after her, then what? :gaah: Hope the next president doesn't screw us over....:ohno:

I'll try to remain optimistic for now... :)

I'm just wondering....is there a city or a country wherein there's no place for appreciation...no place for any construction...wherein everything is already saturated....what I can think off is Tokyo...too expansive and there's no way but down...and also manhattan, NY city....

BEST IN 11 YEARS

MBC members upbeat on outlook
--------------------------------------------------------------------------------

By IRMA ISIP


Members of the Makati Business Club (MBC) are very upbeat about economic prospects this year, with 81 percent confident that growth this year will be higher than last year.

It was the best score in 11 years.

The survey was done from January 22 to February 15. The last time the Makati-based business group was this upbeat was in July 1996 when 94 percent of respondents believed GDP growth would be higher that year compared to 1995.

However even as the economy improves, respondents listed as a priority issue this year the conduct of clean and honest elections where government should focus its efforts.

In time with the elections, Manuel Villar, Francis Pangilinan, Francis Escudero, Joker Arroyo, and Ralph Recto emerged as the five names the respondents would like to see voted in the Senate.

Optimism over the economy extends on the respondents’ corporate outlook with 87 percent of them saying revenues are expected to grow compared to just 78 percent in last year’s EOS. Only a handful (1.6 percent) see a decline on revenues.

However, an almost similar proportion of 64.5 percent see incomes growing albeit at a faster rate of 19.6 percent. In last year’s survey, 62.8 percent of the respondents said new incomes would grow with average rate of 14.1 percent.

A much lower percentage of 45.2 percent of the respondents said they are making additional investments compared to 50 percent in last year’s survey. About 51.6 percent of the respondents are holding their workforce steady compared to 58.5 percent last year while a higher proportion of 32.3 percent are hiring or expanding their workforce versus 29.8 percent in 2006.

In most of the economic indicators, majority of the respondents see a favorable trend. About 61.3 percent predict inflation to be lower this year than last year’s 6.2 percent. About 66.1 percent said the bellwether 91-day treasury bill rate would be lower than the 2006 actual average of 5.35 percent and 62.9 percent perceive the peso appreciating over yearend rate to the dollar which stood at 49.03. The appreciate rate is 3.7 percent which is equivalent to 47.21.

A plurality of respondents of 74.2 percent see higher levels of investments compared to just 61.7 percent in the 2006 survey. The MBC estimated investments stood at P350 billion in 2006.

About 74.2 percent see higher level of exports this year which stood at $47 billion in 2006 while 83.9 percent predict higher levels of imports which was $51.5 billion.

The respondents cited developments in the economic front, including a healthier fiscal position, stronger peso, lower inflation and lending rates, and growing investor confidence as the most positive developments in 2006.

Improving infrastructure and fighting graft and corruption emerged as the second and third most important issues that the Arroyo administration should address in 2007, although respondents also want to see the passage of measures seen to benefit the business climate, such as the rationalization of investment incentives and renewable energy bills.

The Bangko Sentral ng Pilipinas and the Department of Finance maintained their top one and two positions as the best performing among 37 government agencies in 2006.

The Supreme Court improved five notches landing third from fifth in last year’s survey and edging out the Securities and Exchange Commission.

Alberto A. Lim, MBC executive director, said due to favorable rulings. The Department of Tourism stayed at fifth.

The Department of Trade and Industry slipped two rungs from fourth in 2006 to sixth in this year’s survey.

Moreover, respondents expressed greater satisfaction in the 2006 performance of the Bureaus of Internal Revenue and Customs and the Armed Forces of the Philippines than in the previous year, giving them the biggest increase in net satisfaction ratings. On the other hand, the biggest reduction in net satisfaction ratings went to the Departments of Local Government, Justice, and Foreign Affairs.

I'm disappointed that GMA is not confident in achieving the GDP growth of Plan 789. Wasn't she the one that introduced a plan to reduce poverty in half by getting the economic growth up to 10% by 2010? What happened to that plan?

yeah i think they should start shooting for higher growth and not just moderate growth. If we're ever to catch up with our neighbors that's the only way to go.
True she may not want to overshoot targets and end up not meeting it ,which will not look good to investors, but at least 7% growth by the end of this year and not 2010.

Business optimism for 2007 is the highest in 11 years as gains experienced in 2006 are expected to continue this year, a survey conducted by the Makati Business Club (MBC) showed.

The MBC Executive Outlook Survey showed that 81 percent of the respondents believe economic growth in 2007 will be higher than the 5.4 percent recorded in 2006. This percentage of optimism was exceeded only in July 1996, when 93.9 percent of respondents believed economic growth would be higher in 1996 compared to 1995.

Of the 663 members, only 62 responded, representing 9.4 percent of MBC’s total membership.

The survey, which was conducted from late January to early February, stated that the optimism extended to firms. A majority of the companies or 87.1 percent believed they would post higher gross revenue when compared to 2006, while 64.5 percent said net income would be better this year.

The MBC survey likewise showed more companies would expand their operations this year by hiring more people.

MBC credits the positive view to the gains experienced by businessmen in 2006, during which most companies felt an increase in their revenues.

According to the businessmen who participated in the survey, developments in the economic front, including a healthier fiscal position, stronger peso, lower inflation and lending rates, and growing investor confidence are some of the biggest improvements felt last year.

Looking forward, the businessmen said they should use the gains felt last year to improve infrastructure and fight graft and corruption. The lack of infrastructure and red tape are main reasons why investors are hesitant to infuse money in the country.

The businessmen said President Arroyo should address the peace and order situation, poverty alleviation and the extra-judicial killings.

The business community also urged the government to make the May national elections clean and honest. Of the senatorial candidates, the businessmen said they want to see Manuel Villar Jr., Francis Pangilinan, Francis Escudero, Joker Arroyo and Ralph Recto elected to office.

Aside from this, they want to see the passage of measures to benefit the business climate. The most important bills Congress should pass into law are the national budget, the anti-terrorism bill, investment incentives, renewable energy bill and the anti-political dynasty bill.

Other expectations were lower inflation for the year. Of the respondents, 61.3 percent felt that the rate at which prices of basic goods will change will be lower this year.

As in the past several surveys, respondents ranked the Bangko Sentral ng Pilipinas and the Department of Finance as the best-performing among 37 government agencies in 2006.

The Supreme Court ranking jumped from the eighth slot to the third, while the Securities and Exchange Commission dropped to number four from number three the previous year. Completing the top five is the Tourism department, which retained the same ranking.


http://www.philstar.com/philstar/NEWS200702230407.htm
By Ma. Elisa Osorio
The Philippine Star 02/23/2007

This indeed great news. CalPERS actually threatened to pull out its exposure in the Philippines as it was growing impatient about the implementation of reforms. But fortunately it retained our beloved country in its list for permissible investment destinations. The implementation of Republic Act 9337 (Expanded Value Added Tax Act of 2005) contributed to the confidence of this pension firm in the Philippines . We are now regaining economic strength as evidenced by the positive assessment of foreign firms in our economy. Fitch Ratings and Moody’s Investor Service upgraded the country’s credit rating to stable from negative.

Yeah, I remember that. CalPERS was threatening to pull out because of the slow implementation of reforms, partly because of all the political bickering and endless investigations going on. But at least now the reforms are bearing concrete results. Fiscal stability will put the government in a better position to pursue its development projects.

^^ Who will not be encouraged with the continuous 24 months of economic growth? Surely, they will be confident that their investments will mean good business to them.

Sustaining this trend will only heat up more economic gains. :)

Yeah imagine what more we could have achieved without the destructive politicking. time is precious once it's gone you cannot bring it back.

Once it's gone. It's gone to our ASEAN neighbors. Investors that would have came during the 1970s/80's were gone. They went to Malaysia, Thailand and Singapore. Now we're left behind. But there's still hope for the Philippines to level with our ASEAN neighbors if not surpass. Go Philippines !!

This is the advantage of having an economically minded and expertise leader rather than a politically minded ones, why we need to doubt and think twice for?

We are on a verge of economic take-off and the hardship that our leader planted for last few years bearing fruits now and this harvest blessings will not only benefit her but to all of us, the whole Filipino people. On our share, it is time for us to unite disregard of our personal interest, belief and principles with regards to our social and political rights and participation. We must ensure this time, that we support the vision of our President and that vision that she envision is for the goodwill of everyone most especially the poor ones whom have lost their hopes for our country. it is time for us to hold one another, focus our minds not by destroying what has been founded but promoting what is aimed for nation's building.

Monday February 19, 2007, 9:10 pm

LA TRINIDAD, Benguet, Feb. 19 Asia Pulse - More than just welcoming the news that starting this year, a local bank and a farmers' organization will try to bring back "arabica" coffee as a popular beverage in Benguet, this move is seen to spark the revival of what was once a lucrative industry for the Philippines.

In fact, local farmers are now considering to plant at least one million coffee trees of the "arabica" variety, which are expected to start bearing fruits in the next three years or so.

It will be recalled that since the Spanish era, the Philippines heavily exported arabica, robusta and excelsa coffee varieties to Europe and North America.
At the height of the Philippines' coffee exports, it used to sell to the world several thousands of tons of coffee annually. Coffee was then one of the Philippines' major traditional exports.

But problems spawned by the unstable world market price of coffee beans, quota restrictions and high cost of production, dealt a telling blow to the domestic coffee industry.

Now, the Philippines hardly exports coffee, if at all it still does. Even the workload of the Department of Trade and Industry's (DTI) International Coffee Organization Certifying Agency (ICOCA) has been remarkably reduced.
However, realizing the recent surge of the demand for the beverage, several Benguet coffee drinkers here lauded the move by the Department of Agriculture (DA) to increase starting this year, the production and marketing of coffee seeds.

Earlier, the DA launched a coffee plantations development thrust, as a component of its' Ginintuang Masaganang Ani - High Value Crops (GMA-HVC) program.

Ceferino Willy, a local farmer and ranch owner said the move of the Cooperative Bank of Benguet (CBB) and Benguet Organic Coffee Arabica Enterprises Limited (BOCAEL) will try to revive a decades-old industry in Arabica coffee trees.

In planting new coffee trees, he said, the farmers will not only contribute to the improving economy of Benguet. but would also assure "us of a continueous supply of our favorite beverage, which our forefathers also loved."

Historically, the coffee variety referred to by the natives as "Benguet coffee," are actually the Arabica variety, which was introduced by the Spanish colonizers in Benguet sometime in the 18th century.
Aside from Benguet, the "arabica" variety, which is the most fragrant among a selection of coffee strains, was also introduced to the mountains of Bukidnon, Davao, Lanao and Tagaytay.

The coffee industry was a thriving business. But with the development of instant coffee, its entry and eventual dominance of the market it virtually killed Benguet's coffee brewing business.

However, Willy and other local farmer leaders now see the return of the market for roasted and ground Benguet coffee. With government assistance in sales and market development, the farmers' group now have their eyes trained towards both the local and worldwide markets.

"We believe that with the programs of President Gloria Macapagal Arroyo, we can effectively re-start our once booming production of Benguet coffee, especially when we will also be assisted in marketing by the CBB lead by manager Gerry Lab-oyan and BOCAEL chair Cipriano Bayangan," said Willy.
(PNA)

http://au.biz.yahoo.com/070219/17/13uff.html

as a coffee lover, im personally excited about this news! i hope in 3 years the Philippines will be once again a major exporter of coffee.

^^ We should support local coffee shops (boycott Starbucks!). :D

WIth the exponential growth of the coffe market here and abroad, who knows, we might even be at par with Colombia! I'm amazed with Colombia, despite being a very unstable country, they still manage to become on of the world's largest exporters of the second largest traded commodity in the world.

how is the taste of our coffee beans compared to the best like those in colombia or jamaica?

Well GMA is just being realistic about her target growth...well kung drawing lang yan baka sabihin nya eh 20% growth...8% is really hard to achieve...right now...I think it's only China and Vietnam you are achieving that kind of economic growh...so we can see here that they are ruled by an iron fist and a dictatorial regime....

For a country with so much freedom....mahirap ang 8-9%....it will take an iron fist....honestly...if GMA pursued the conass....damn...we will be flooded with investment...ang daming naghihintay nun...kapag na approve yung foreign equity changes...and wherein foreigners can own land...I don't see anything wrong with that..since Australia, US and UK can implement such policy....

Another thing is the crab mentality...when will this end....everybody pushes everybody down...if all of us will just unite...stop opening our mouth and rallying in the streets...then probably we can achieve that 9%...I"m not really against freedom of speech...but please...give us a concrete solution to what you are complaining about right? BE REAL!! if you cannot think...then shut up!! I think GMA listens to everybody...she doesn't have a close mind...when everybody opposed her with conass...tinigil nya diba....although in my perception ...dapat natuloy yun...sayang talaga yun..naghihintay na yung mga pera pumasok dito nun...

how is the taste of our coffee beans compared to the best like those in colombia or jamaica?

I'm a coffee addict..I love our kape barako ..sarap...if we will really develop our coffee industry and perhaps the government can fund some research and help market it..then...sisikat kape natin dito...

By Antonio C. Abaya
Written Feb. 18, 2007
For the Standard Today,
February 20 issue


When it rains, it pours. That was the advertising slogan of Morton Salt several decades ago. Meaning that even when the humidity is high, Morton’s salt granules do not stick to each other and clog up the spout of the salt container. It has also come to mean that news, good or bad, tend to come in torrents.

The good economic news have lately been coming in torrents. The stock market hit a ten-year high at 3,447.60 points last week. The peso also strengthened to a six-year high of 48.25 pesos to the US dollar. The Philippine Stock Exchange is the best performing bourse in the developing world, and the Philippine peso is the strongest currency so far this year. In addition, remittances from OCWs also reached an all-time high of $12.6 billion in 2006, while exports grew to $47.6 billion and tourist arrivals reached 2.8 million for the same year, both record highs. The call center industry is also booming, even if we have lost our second-place (to India) standing to China.

The so-called political opposition can offer nothing to top that. And neither can the communists.

Elated at this turn of events, President Arroyo is, understandably, in a self-congratulatory mood, and much of the business community are beside themselves in rejoicing that business conditions have never been this good.

Said President Arroyo in a recent speech before a gathering of engineers and technologists: “Our eye is on the ball on better-paying jobs, improved infrastructure, including technology-enhanced social services, the alleviation of poverty and hunger, fighting terror and nurturing the environment, all of which will benefit from technology.

“The Filipino people are shrugging off the past and looking forward to the fruits of steady growth, trade and investment.

“We must all seize the moment, to reach the summit through our unity and hard work, brandishing the Filipino team spirit that has gained renown worldwide. The Philippines is a team to beat when it comes to excellence, resiliency and staying power in a competitive world…..”

“Seize the moment!” What a rousing battle-cry to rally the people to the ramparts and involve everyone in the arduous but exhilarating tasks of nation-building.

I, too, want to seize the moment. But, frankly, I am not sure what to seize, and at which moment.

If I were a regular recipient of, and dependent on, remittances from a member of my family working abroad, I would also not know what moment to seize. Last year, a padala of $300 a month would have given me and my other children and grandchildren P16,500. This year, because of the appreciation of the peso, we would be getting only P14,475, or a net drop of P2,025 every month. That means eight million low-income families are now poorer by a collective total of P16.2 billion a month, or P194.4 billion a year.

If I were a tour operator or the owner of a tourism-oriented business, I would also be at a loss on what moment to seize. Last year, a gross monthly income of $100,000 from my foreign clients would have yielded P5,500,000. This year, the same amount of dollars would yield only P4,825,000, or a drop of P675,000 a month, or P8.1 million a year.

If I were an exporter of Philippine-made products – such as handicrafts, garments, processed food, etc – a $1 million purchase order from my foreign buyer last year would have given me P55 million. But that same million dollar order this year would give me only P48.5 million, or a net drop of P6.5 million, enough to give me a seizure of some kind.

(But not all exporters are created equal. If I were an exporter of Philippine-assembled high-tech electronic products – which make up about 65% of Philippine exports – I would have nothing to worry about since creative invoicing by my parent multi-national company would iron out such erratic bottomlines.)

If I were the CEO of a foreign corporation interested in setting up a factory in the Philippines, my feasibility study last year would have told me that I needed $100 million to buy P5.5 billion worth of land, buildings, locally sourced equipment, and operating capital for the first six months.

This year, because of the appreciation of the peso, to secure that P5.5 billion worth of land, buildings, locally sourced equipment and operating capital for six months, I would need $115 million, or $15 million more than I had originally planned for.

Even the Philippine government is a loser in the appreciation of the peso, since imports would be cheaper in peso terms and, assuming the demand remained constant, the collection of the Bureau of Customs would decline correspondingly.

By far the biggest theoretical gainer in the appreciation of the peso would be the Bangko Sentral ng Pilipinas, since the service of our foreign debt would be requiring less pesos. If it were to pay $10 billion of our foreign debt (currently about $57 billion), it would need “only” P485 billion, compared to P550 last year, or a savings of P65 billion. It is the BSP which has the real motivation to seize the moment and pay up, but will it?

The biggest actual gainers in the appreciation of the peso would be the fund managers since a placement last year of $100 million or P5.5 billion would now buy $110 million, aside from earning additional millions of pesos/dollars playing the bullish stock market.

No wonder President Arroyo was visibly annoyed and walked out of a press conference last week when a reporter from the Daily Inquirer kept asking her what benefits ordinary Filipinos derived from the strong peso and record-breaking stock market. As a trained economist, she knows the answer: not much..

The appreciation of the peso is due partly to the record-high remittances of OCWs, and partly to the entry of hot money or portfolio funds, which are invested in currency and stock market speculations (which employ only a handful of job-seekers), unlike foreign direct investments or FDI, which create real employment for tens of thousands of people. Last year, we took in only about $1.1 billion in FDI, compared to $5.4 billion that went to Vietnam.

The appreciation of a country’s currency is not necessarily a welcome development. China has been under tremendous pressure from the US and the EU to appreciate its currency because Chinese products are extremely cheap in dollar or euro terms and have been flooding their markets, to the detriment of American and European producers and their workers. It is “free trade” boomeranging on them.

But the Chinese have not rushed to seize the moment and appreciate the yuan. Why should they? With their artificially weak currency, the Chinese have accumulated a trade surplus with the US totaling $670 billion, and other hundreds of billions with the EU..

A strong currency is supposed to make imported goods cheaper. But that has not been the case for me. For the past three years, I have been doing the weekly grocery shopping for my family, so I am familiar with supermarket prices. As a matter of principle, I buy only Philippine-made products. Except for a few items, such as Spam, which is one of my favorite food imports.

Last week, following President Arroyo’s exhortation to seize the moment, I rushed to the supermarket to seize an extra can of (cheaper?) Spam. But, alas, it costs exactly the same as it did last year: P101. It is only the importers and the vendors who are seizing the moment, not the hapless consumers. *****

Reactions to acabaya@zpdee.net. Other articles since 2001 in www.tapatt.org.

I'm a coffee addict..I love our kape barako ..sarap...if we will really develop our coffee industry and perhaps the government can fund some research and help market it..then...sisikat kape natin dito...

i think twice pa lang ako nakatikim ng kapeng barako, hanggang ngayon di ko pa rin malimutan ang sarap.

^^ We should support local coffee shops (boycott Starbucks!). :D

Yes, boycott Starbucks! And patronize Istarbaks! :lol:

(currently medicated on corny pills)

all i know is if the so called leaders of this country doesn't seize this moment and take advantage of the renewed opportunity, it will sink in the deep hole buried branded and stigmatized as a mediocre country forever.

President Arroyo: Now Is The Best Time To Invest In The Philippines
By Komfie Manalo - All Headline News Correspondent, February 24, 2007

Manila, Philippines (AHN) - President Gloria Macapagal-Arroyo of the Philippines on Saturday challenged the business community to take a bigger stake in the country's future. She asked them to invest domestically and take advantage of the high volume of remittances of overseas Filipino workers, which have contributed greatly to the economic growth.

In a speech at the Special Joint Meeting of Rotary Clubs of Rotary International District 3830 in the Grand Ballroom of Hotel Intercontinental Manila, the president told the businessmen that now is the right time to expand and invest. That is because interest rates are at an all-time low and capital inputs and raw materials are cheap because of the strong peso.

"It is really a great time to start a business and you have the market with you, the strong, sustainable middle-class represented by the families of our overseas Filipinos," she said.

Arroyo pointed out that the increased remittances of some eight million overseas Filipinos have grown to P13 billion ($270.7 million), from the P7 billion (145.7 million) before the start of her term. Those remittances, according to her, have been driving market spending particularly in malls and the real estate industry.

"Because their income has been increasing, their remittances have grown so much, their families now represent the new middle-class that make up the market and our economy," she explained.

The president said the partnership between the government and the private sector should focus on new ideas to propel the economy forward "not on basking on old complaints that only hold us back."

While the stock market is at a 10-year high and direct foreign investments are at an all-time high, Arroyo said domestic investments are not growing as fast, recording only a 2 percent growth in 2006.

The president thanked all local officials who helped implement the government's fiscal and other economic reforms that have brought the economy to a sustainable level "no longer subjected to the boom and bust cycles that used to affect us in the years past."

The president said the reforms she initiated resulted in credit outlook upgrades and increased investor confidence that led to an unprecedented $2 billion in investments "allowing us to pay our IMF (International Monetary Fund) debt in full."

some data in that last post seems to be wrong...I thought the remittances are in billions of dollars..not billions of pesos..

:applause: :applause: :applause: NG has P527-B extra budget in 3 years



By LEE C. CHIPONGIAN

The National Government has P527.2 billion of extra budget for the next three years, also called "allocable budget" for the infrastructure, health and education sectors.


Budget Secretary Rolando Andaya Jr. said up to P800 billion could be allotted as allocable cash if additional budgets will be allowed or approved between 2007 and 2010. "We’re doing a re-computation now (but) starting this year — we are implementing a 3-year budgeting plan," he said.

For this year, the DBM said the government has P38-billion worth of extra budget for priority sectors such as health, basic education and infrastructures. For 2008, the allocable budget is higher at P123.3 billion. By 2009, DBP is looking at P229.3 billion and P405.3 billion by 2010.

The allocable budget is determined after all expenses including salaries, utilities and other loans, are taken cared of. The advantage of having an allocable budget, according to Andaya, is that government has a workable budget for the next three years. ‘We know exactly how much we can spend and where to spend it," he said.

In the absence of a law that would allow three years of general appropriations, Andaya said they will implement their own internal mid-term budgeting. "We don’t need to push for new legislation … so every year we will just have to re-adjust our numbers," Andaya explained. "Budgeting is an economic tool and it takes a lot of planning. We need to see a straight line."

After passing the 2007 national budget, the DBM can now implement a 3-year budget planning to allow agencies flexibility in managing budget and debt.

The DBM prefers the longer budget program instead of debating every year to enact an existing budget. But since Congress is not sold to the idea of approving a three-year budget, the DBM within its own system has started implementing a three-year program.

http://www.mb.com.ph/BSNS2007022588027.html

May elections seen not adversely affecting economic momentum

By BERNIE CAHILES–MAGKILAT

The business community said that the crucial May elections this year would not adversely impact on the economic momentum that the country is experiencing now.

Philippine Chamber of Commerce and Industry president Samie Lim said the country is accustomed to holding elections every three to six years.

"We have elections every 3 or 6 years I don’t see why we should be worried.

In every election there are news coming out but after that, it is business as usual," Lim said.

Lim said that during the election campaign period, there would be lots of campaign money flowing into the market either from the politicians local accounts or from their accounts overseas and that would be good for the economy.

"After holding the elections is more important because that is the time when the real investments pour in," he said.

Lim, however, said that PCCI would remain neutral and would not endorse any party or individuals although individual members are not prevented from acting on their own.

But PCCI would be inviting politicians from the administration, the opposition and perhaps a dominant third force to present before the business community their platforms and what issues they would pursue in Congress.

"We will not make any endorsements but we will ask them to make presentations on their platforms on business," Lim said.

"This way, we would be able to tell our members the qualifications of these people," he said.

Lim said they are looking at political platforms that would help in making doing business in the country: faster, better, and cheaper.

"We need government officials who can think of legislative measures that would help facilitate business at reduced cost because the government is the enabler to business," he stressed.

Lim is bullish on the country’s economic growth as he forecast an aggressive 7 percent growth this year saying the 5 to 6 percent growth is not enough to bring the country to a competitive footing with other countries.

Already, Malacanang is pushing for a 7-8-9 growth strategy in the remaining three and half years of the President Gloria Arroyo’s administration.

Joey Salceda, appointed this month as Arroyo’s chief of staff, said the country’s recent economic improvement meant growth might reach 7.0 percent in 2007 from 5.4 percent in 2006.

The nearest the Philippines has come in recent memory to 7.0-percent economic growth was 6.8 percent in 1988.

Arroyo’s fiscal reforms have helped bring down the budget deficit, but .8 billion in cash remittances last year from around 10 million Filipinos working overseas has been the real motor of the economy, fuelling consumption and a property boom.

Attracted by the inflows of cash, which have pushed the peso to six-year peaks, and improving fiscal finances, foreign investors have helped propel the stock market up 13 percent already this year.

The peso is Asia ‘s strongest currency this year, rising two percent against the dollar after appreciating by more than eight percent last year.

However, growth has been interrupted by political instability like the impeachment proceedings in Congress against Arroyo and military coup attempts.

The May elections though is crucial because if the opposition can win at least one-third of the 266seat lower house, it would have enough support to send Arroyo, who faces lingering allegations of election fraud, to an impeachment trial at the Senate, which is likely to be dominated by her foes.

Arroyo, on the other hand, said there is no turning back in the plan to balance the budget, putting up the right infrastructure and creating new jobs.(BCM)

Monetary officials expect a higher surplus in the country’s balance of payments (BOP) but analysts expect little change in foreign exchange inflows to result from the relaxation of the Bangko Sentral ng Pilipinas’ (BSP) foreign exchange regulations.

The BSP said over the weekend that easing the rules on foreign exchange purchases would encourage more inflows into the country over the long term and the net effect would be a higher BOP surplus.

BSP Governor Amando M. Tetangco Jr. told reporters over the weekend that the central bank would make a comprehensive review of how the policy decision would impact the BSP’s BOP projections but he said indicators pointed to the possibility of a higher BOP surplus.

According to Tetangco, any step in the direction of a freer market was generally considered a positive development by investors. This would ultimately translate to higher inflows.

"This is the kind of market shift that will allow better allocation of capital," Tetangco said.

The BSP had eased restrictions on banks overbought and oversold positions, increasing limits on both to $50 million or up to 20 percent of banks’ unimparied capital.

The BSP also decided to allow local residents to invest up to $12 million overseas from $6 million previously.

According to JP Morgan analyst Sin Beng Ong, the initial reaction had been muted since the market had been expecting this move for around a couple months.

Ong said that the move could also trigger higher risks in the bonds market since the BSP had increased the limit on how much foreign assets residents are allowed to hold.

According to HSBC in Hong Kong, the new measures should have limited impact on actual flows since the measures were widely anticipated and banks were likely to have already drawn down their oversold positions.

According to Frederic Neumann at HSBC’s Asian Economics Team, the market had been expecting the BSP to put the oversold and overbought limit at $20 million instead of $15 million.

"Banks now have a wider margin than initially anticipated," Neumann said.

Moreover, Neumann said the increase in the limits on residents’ foreign investments were unlikely to affect flows materially since such transactions were already common through informal channels.

According to Tetangco, he generally agreed with these reading and although the effects of the new forex rules would take time.

http://www.philstar.com/philstar/NEWS200702260703.htm
By Des Ferriols

The peso will continue to strengthen against the dollar once the payment for the sale of the 6.83 percent stake of PLDT is completed. The government will be receiving $521 million in the said sale according to House Deputy Majority Leader Eduardo Gullas. The government sold its shares to First Pacific Group. COnsequently, if the peso continues to be stronger, it will provide government as well as the private sector greater opportunity to accelerate dollar debt reduction programs through prepayment.

^^ It's quite new that the upcoming elections do not affect our economy. But then again, the positive turn of our economy towards stability is also new to us these days. We have not experienced this positive trend for several years in the past. Before, what we have is economic loss which is very different from what we have now.

Businessmen and other investors are not threatened for any political instability whatsoever because this administration is also assuring the people and the international community that we will be having a peaceful and orderly election this year.

http://www.bworldonline.com/BW022707/content.php?id=051

The rise in prices of basic consumer products is expected to have eased further this month to its slowest rate in the last three years, but monetary authorities remained mum on the direction of the interest rates ahead of a scheduled policy meeting next week.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. told reporters in a short message service "text" yesterday that he expects the inflation rate to have ranged from 3% to 3.6% this month. His estimate is lower than the 3.9% posted in January. Before this month, the year-on-year inflation rate was at its slowest in March 2003.

"The deceleration is expected due to reduction in oil prices, strengthening of the peso and diminishing effect of RVAT [reformed value-added tax]," Mr. Tetangco said.

The National Statistics Office is scheduled to release its inflation report on March 6. The Monetary Board meeting to set key interest rates is set for March 8.

A deceleration in inflation is among the factors being considered by the BSP in deciding whether to keep or cut key interest rates, but Mr. Tetangco refused to comment on what the Monetary Board may do in the scheduled meeting.

On the sidelines of the Fund Managers Association of the Philippines’ general membership meeting, Mr. Tetangco said money supply growth is not an immediate threat to benign inflation environment. Mr. Tetangco also said the central bank will not take extra steps to mop up excess liquidity. Too much liquidity, or cash circulating in the financial system, is inflationary. Domestic liquidity registered a 21.4% increase in December. The BSP had said in September that a liquidity growth higher than 13% would be inflationary.

This time, officials believe the current liquidity level is not inflationary since money holders just convert their cash into other forms of money such as bonds, which earn interest.

The central bank raises interest rates to fight inflation by limiting money supply and slowing economic activity by making borrowing costs more expensive. The Monetary Board last month kept key interest rates at 7.5% for overnight borrowing and 9.75% for overnight lending.

But, at the same time, the Monetary Board has not lifted a tiering scheme on banks’ aggregate placements with the BSP. Mr. Tetangco then said keeping the scheme should encourage banks to seek alternatives to placing their excess funds with the central bank, such as lending.

Banks’ underlying lending, which is a better measure of the effect of tiering, is expected to grow by an average of 5%-6% this year. Banks’ underlying loans grew by 2% in November last year from a contraction of 1.3% in the same month in 2005. In December 2006, underlying loans grew by 4.8% from a contraction of 3.8% in the same month of the previous year.

"Underlying loan" refers to total bank lending minus banks’ money parked at the central bank’s vaults, called reverse repurchase agreements or RRPs. This data better explains the effectiveness of the central bank’s de facto rate cut implemented in November, said Mr. Tetangco. — P. J. L. Lising

the wikipedia identified new industrialized and newly industrializing countries.in asia new industrialized countries are korea,singapore,taiwan and hongkong.the newly industrializing countries are
malaysia,thailand and philippines. in africa, it's south africa in south america,
brazil and mexico.im proud of it.

^^Yeah, I've read it and it feels good! But is it official? I mean wikipedia, like come on! Hello?!

^^ It should have references.

:applause: LPG prices to drop further this month

By Euan Paulo C. Añonuevo

Consumers should expect the price of cooking gas to further dip this month because of the continued softening of the world market contract price for liquefied petroleum gas (LPG), a ranking energy official said.

“The Department of Energy [DOE] is expecting a reduction in the prices of LPG for the month of March.” Raphael P.M. Lotilla, DOE secretary, said on Wednesday.

He added that the contract price for LPG, which is set on a monthly basis, for the month of March went down by $20 to $506 per metric ton from $526 per metric ton in February.

“We are looking at a price reduction in March of around P1 a kilogram or P12 a kilogram for an 11-kilogram cylinder, vat inclusive.” He added.

Data from the DOE shows that the average price of an 11-kilogram cylinder of cooking gas has been averaging between P443.48 and P515 in Metro Manila.

This was the third straight month contract prices have declined after going up by as much as $58 in December 2006. This was recorded at the peak of the cold season for other countries, which has abated since then. Couple with the continued strengthening of the local currency the price of cooking gas has since constantly decreased.

http://www.manilatimes.net/national/2007/mar/01/yehey/top_stories/20070301top7.html

RP stocks recover partially as traders go bargain-hunting
03/01/2007 | 10:07 AM

(Update) Philippine stocks had recovered partially during mid-trade Thursday, as investors bought bargain blue chips which fell to discount prices during Wednesday’s plunge.

The peso, meanwhile, opened slightly stronger at 48.49 against the US dollar. It closed Wednesday at 48.54 against the greenback, dragged by the stocks sell-off.

As of 10:32 a.m., the Philippine Stock Exchange composite index had surged 114.77 points or 3.74 percent at 3,182.22.

However, this was not enough to fully regain the 7.92 percent drop the index suffered Wednesday, as the local bourse tracked a global sell-off which started in the Shanghai Stock Exchange.

Analysts have assured that the plunge in the local bourse is not permanent and will not lead to a total reversal of market’s bullish momentum, given the local economy’s stable fundamentals.

“It’s a new start, not a rally’s end. Fundamentals remain strong," Association of Securities Analysts of the Philippines president Francis Liboro told reporters during the PSE’s quarterly briefing on Thursday.

During mid-trade, gainers were whipping losers 98 to 9 while 25 issues were unchanged.

Volume being traded had reached 6.98 billion valued at P2.31 billion.

Thursday’s recovery was being led by market heavyweight Philippine Long Distance Telephone Co., which as of 10:32 a.m. had risen P80 or 3.45 percent at P2,400.

On Wednesday (Tuesday night in the United States), global markets, including the New York Stock Exchange fell sharply on woes that the Chinese economy would be suffering a slowdown.

The Dow Jones lost 416 points following an almost 9 percent drop in Chinese stocks. This was the worst trading day for US stocks ever since the 9/11 terrorist attacks on New York.

The Dow partially recovered on Thursday (Wednesday night in the United States), rising 52 points

http://www.gmanews.tv/story/32518/RP-stocks-recover-partially-as-traders-go-bargain-hunting. :lurker:

SHARES rebounded yesterday, a day after suffering from a heavy sell-off triggered by losses in China and the US, as investors took comfort in Wall Street’s recovery.

The benchmark 30-company Philippine Stock Exchange Index rose 122.67 points, or 4 percent, to 3,190.12, after tumbling 7.9 percent in the biggest single-day drop since 1997, at the height of the Asian financial crisis.

Investors realized that the previous day’s sharp sell-off was overdone and that the country’s economic fundamentals remained strong against external shocks, dealers said.

“The panic is over,” said Ismael Guerrero Cruz, president of IGC Securities Inc.

“Overall, the market is still okay. The positive fundamentals that supported it before the sell-off are still present,” said Chelsea Dipasupil, manager for securities and stock market at RCBC Securities. “We have the improving fiscal position of the government, the strengthening of the peso, and low interest rates.”

President Gloria Macapagal Arroyo predicted a rapid recovery for the market.
“The world markets may go up and down, but the Philippine economy can no longer be pulled back,” she said. “The fundamentals of growth are firmly laid on our agenda of fiscal stability, building sturdy pillars for investment, good governance, blossoming enterprise in the grassroots, and a vibrant democratic system.”

Administration congressmen made the same prediction of quick recovery for the market.

“Our strong peso, low inflation, lower lending rates, higher investment inflows, exports and imports would certainly help shield the economy from the global market slump,” Parañaque Rep. Eduardo Zialcita said.

“The fact that even stock markets in Japan, South Korea, India, Australia, Singapore and those in Europe tumbled shows that we are not alone in this predicament, Rep. Rodito Albano III said. “The boom-and-bust scenario is a natural occurrence in the stock market.”

Senator Mar Roxas said Wednesday’s market slide would have little impact on the real economy.

“Global markets are largely inter-connected and vulnerable to external factors,” Roxas said in a statement. “For the Philippines, our focus should still be on translating fiscal reforms into immediate and tangible benefits for our people.”

The Association of Securities Analysts of the Philippines said yesterday’s strong market recovery signified strong investor confidence in it.

“It’s a new start. It’s not an end to the rally because the fundamentals did not change,” group president Francis Liboro told reporters.

“Credit-rating agencies are having a hard time looking for reasons not to recommend an upgrade in the [Philippines’] sovereign ratings,” he said.
The broader all-share index rose 67.15 points yesterday to 2,050.45. There were 105 advancers and 22 decliners, while 45 stocks were unchanged. A total of 12.2 billion shares worth P5.5 billion changed hands.

“Yesterday’s [Wednesday’s] slide was more of an overreaction to the sell-offs in overseas markets. But it was also a healthy correction for the market,” said Rommel Macapagal of Westlink Global Equities.

Elsewhere in the region, many markets including Japan slid further as the rebound on Wall Street was deemed weak, with some analysts saying that lackluster economic data in the US had raised doubts about the course of the US economy.

“We took our cue from Wall Street,” Macapagal said. “And fundamentally, nothing has changed as far as our economy is concerned.”

But he said investors were likely to remain cautious in the coming days, keeping an eye on overseas markets, particularly the US and China.

Philippine Long Distance Telephone Co. was the most actively traded stock, up P100 or 4.3 percent at P2,420, after giving up 9 percent Wednesday. PLDT also took its cue from the 3.3-percent gain posted by its American depositary receipts in New York Wednesday.

Conglomerate Ayala Corp. rose P10 to P570, while all its units performed even better.

Bank of the Philippine Islands was up P5 to P67, Ayala Land rose P1 to P16.25, and Globe Telecom advanced P60 to P1,355.
Food and beverage firm San Miguel Corp.’s A shares slipped P0.50 to P63.50, while its B shares gained P0.50 to P75.50.

http://www.manilastandardtoday.com/?page=news1_mar2_2007
AP, AFP, Fel V. Maragay, Macon Ramos Araneta, Jenniffer B. Austria

SM City Bacolod is expected to give the city billions of pesos in taxes, provide jobs to thousands of Bacoleños and Negrenses.

It will also enhance the city's economy and boost Bacolod and Negros tourism and investment promotion programs.

The mall will ultimately make retail business in Bacolod more exciting and cause the mushrooming of small businesses in surrounding areas.

With 3,000 to 4,000 people employed at SM City, Carbon is confident that Bacolod's economic situation will be improved.

He admitted though that the operation of both Gaisano City and Robinson's Place may get affected within the next two to three months in terms of the number of shoppers.

"By nature, Bacoleños and Negrenses will surely prefer SM than Gaisano and Robinson's because SM is new," he said, but adding that after three months people would again shop at Gaisano and Robinson's especially if they live closer to these malls.

But Hans Sy, son of Henry Sr., said SM should not be considered by both Gaisano and Robinson's as their competitor.

"Yes, probably for two to three months people will flock to SM but for curiosity's sake only. Later, however, things will go back to normal," Hans said.

Hans also said SM's presence in Bacolod will definitely help boost the city's economy and tourism as well. source (http://www.sunstar.com.ph/static/bac/2007/03/02/news/sm.city.bacolod.opens.html)

The outlook of business executives for the second quarter is that our economy is at its most bullish since 2001. Plus, our socioeconomic reforms and the anti-terror bill are being lauded not just here, but also by the international community.

Looking good indeed!

http://newsinfo.inquirer.net/inquirerheadlines/nation/view_article.php?article_id=52743

US traders bullish on RP, to invest $3B

AmCham says figure could go up to $9B if …
By Michael Lim Ubac
Inquirer
Last updated 03:35am (Mla time) 03/04/2007

MANILA, Philippines -- Indicating international investors’ renewed confidence in the Philippines, the American Chamber of Commerce of the Philippines has said that investors from the United States would be putting in this year up to $3 billion worth of investments in the country’s infrastructure, manufacturing and information technology sectors.

Robert Sears, the AmCham executive director, made this announcement at a roundtable discussion with President Macapagal-Arroyo on Friday on the improved fiscal situation and business optimism in the country.

Sears said the “optimistic” assessment of AmCham members was that the figure could “potentially go up to $9 billion in a year” if the government would “take care of some red tape issues.”

“I think the confidence level this year is higher than at the same time last year,” he said.

Sears said US businessmen and other foreign investors in the country were not too concerned about the results of the midterm elections in May.

“Business can’t wait ... [They] are proceeding as if there were no elections because they’re here ...,” he said.

What they are looking for is “a good Congress” that can continue with the economic reforms, Sears said.

To which an elated Ms Arroyo exclaimed: “Great!”

The President said the economy could be distracted or derailed by electoral battles.

“In the case of Ford (Phil.) they’re opening up their plant in April, so they didn’t wait. But in general, judging by what the foreign chambers [are doing], I don’t think they’re waiting,” she said.

Noting that the United States poured in $2 billion in investments last year, the President said she expected the “extra” $1 billion [from the $3 billion projection] to come in this year “depending on our competitiveness.”

Sears told reporters after the roundtable discussion that there was renewed investor confidence in the Philippines because of “the reform movement moving forward” and also because “the economic team has demonstrated the capacity to move forward aggressively.”

Ending red tape

These two factors, he said, led “to more foreign investments and more Philippine investments as well.”

However, he said the government would need to eliminate red tape in its bureaucracy so that investments can go up to $9 billion every year.

“We did a survey ... on various areas. The feedback we got was the most optimistic is $9 billion. That’s our ultimate targeting if everything falls into place,” he said.

Sears singled out as problematic bureaucracies the local governments of certain Philippine cities, the Bureau of Internal Revenue and the Bureau of Customs.

He said AmCham was talking with various government agencies to address the problem of red tape.

“Local government is one area that came up. Everything you pay when you go to city hall, the BIR, BOC was on the list. We’re working with them on issues,” he said.

Ford Phil. chair Henry Co said that lower interest rates, a stronger peso and lower oil prices augured well for a better business climate.

Balanced budget by 2010

On balancing the budget, Ms Arroyo said she had repeatedly told her economic managers to achieve a balanced budget by 2010 but they were insisting on balancing the budget by next year.

She said she was for balancing the budget by 2010 as she felt the government should be spending on infrastructure and social welfare.

The government has targeted a deficit of P63 billion this year.

“It’s up to the economic managers, that’s their decision. If they want to relax it and move for a later balanced budget, that’s fine with me also,” she said.

“They know what they can do, and I don’t want them to be more ambitious than me,” she said.

Ms Arroyo also expressed elation over the ability of the local bourse to promptly bounce back, after stock markets around the world crashed on Wednesday following the fall in China’s stocks in the biggest one-day plunge in a decade.

“Actually, our country recovered the best. We had the best recovery,” the President said.

Legislative reforms

In a letter to Ms Arroyo recently, the Joint Foreign Chambers led by the AmCham congratulated the President “for the passage of legislative reforms needed to improve the investment climate in the Philippines.”

It said the foreign chambers had supported the enactment by Congress of several laws which it believed would “contribute to the continued growth and to the restoration of international confidence in the macro-economic management of the Philippine economy under your administration.”

The laws were: Republic Act No. 9334, or the Alcohol Tobacco Excise Tax Law; RA 9335, or the Lateral Attrition Law; RA 9337, or the Expanded VAT Law; RA 9343, or the Special Purpose Vehicle Act Extension Law, and RA 9361, or the Expanded Vat Law.

It also noted that Congress recently enacted RA 9367, or the Biofuels Act, and ratified the bicameral conference committee report on amendments to the BCDA Act and the One-Time Tax Amnesty to Locators in Special Economic Zones, all of which only need the President’s signature.

http://www.manilastandardtoday.com/?page=business2_mar3_2007

Economy growing strong in Q1—NSCB

By Roderick T. dela Cruz

The economy is expected to post a strong growth figure in the first quarter of 2007, as leading economic indicator for the quarter climbed to a fresh six-year high.

The National Statistical Coordination Board said the composite LEI, which is the basis for short-term forecasting of the macroeconomic activity in the country, rose to 0.170 in the first quarter of 2007 from 0.107 in the fourth quarter and 0.084 in the first quarter of 2006.

It was also the highest LEI recorded since the index of 0.187 registered in the fourth quarter of 2000.

A positive LEI paints good prospects for the economy. The index is based on 11 economic indicators such as stock price index, exchange rate, money supply, merchandise imports, new businesses, electric energy consumption, terms of trade, hotel occupancy, consumer price index, wholesale price index, and tourist arrivals.

The 11 indicators consistently move upward or downward before the actual expansion or contraction of overall economic activity.

The system is based on an empirical observation that the cycles of many economic data series are related to the cycles of total business activity.

The agency officer-in-charge Estrella Domingo said that of the 11 indicators that made up the composite LEI, four contributed positively to the LEI for the first quarter of 2007.

^^ Ano kaya ang Q1 GDP growth for 2007, will it be beyond 6%?

there's a possibility...:)

^^ Well, everything seems ok so there's a possibility that we really can

^^ Ano kaya ang Q1 GDP growth for 2007, will it be beyond 6%?

I hope it's higher than 6.5% or even up to 7%. Then the 7% GDP growth target will definitely be in reach!

it will probably be 5.9 or something. It doesn't matter what matters is the total average for the entire year. Hope it reaches 7 by end year.

US traders bullish on RP, to invest $3B

AmCham says figure could go up to $9B if …

By Michael Lim Ubac
Inquirer
Last updated 03:35am (Mla time) 03/04/2007


MANILA, Philippines -- Indicating international investors’ renewed confidence in the Philippines, the American Chamber of Commerce of the Philippines has said that investors from the United States would be putting in this year up to $3 billion worth of investments in the country’s infrastructure, manufacturing and information technology sectors.

Robert Sears, the AmCham executive director, made this announcement at a roundtable discussion with President Macapagal-Arroyo on Friday on the improved fiscal situation and business optimism in the country.


http://newsinfo.inquirer.net/inquirerheadlines/nation/view_article.php?article_id=52743

I'm just wondering....is there a city or a country wherein there's no place for appreciation...no place for any construction...wherein everything is already saturated....what I can think off is Tokyo...too expansive and there's no way but down...and also manhattan, NY city....

Macau pala? It's highly congested IMHO.

I hope that whatever we achieve in the economic front will have an effect to every Filipino, among all social classes. :)

I believe that the Philippines, without any hinderances such politics, natural catastrophe, or a second Asian crisis, can be one of the smaller big powers(sounds like an oxymoron) in the world economically in just a decade or so. If the Philippines can sustain the current momentum, it will lead us to that. The reason I say this is because of the natural wealth we have, and our people. There are things about us that we should change, but that will come with time.

did the big slide that happened recently affected the growth?

I think it did, but I believe we were able to recover the next day. It wasn't that much of a slide for us, I guess.

I believe that the Philippines, without any hinderances such politics, natural catastrophe, or a second Asian crisis, can be one of the smaller big powers(sounds like an oxymoron) in the world economically in just a decade or so. If the Philippines can sustain the current momentum, it will lead us to that. The reason I say this is because of the natural wealth we have, and our people. There are things about us that we should change, but that will come with time.

I too believe in the capabilities of our nation and our people to become a force to be reckoned with. There is no doubt of the competence of the Filipinos; we have already contributed so much and continue to contribute to the economies of the world. We just have to stop shooting ourselves in the foot.

[
US traders bullish on RP, to invest $3B

AmCham says figure could go up to $9B if …


This is indeed good news. A $3 billion investment just shows confidence to our improving economy. Pour of investments will definitely boost our economic agenda.

With this, the target growth rate of 7% this year and 8% by 2008 is just a matter of time.

About economic growth I think my belief rhyme with the below opinion of a columnist rather than the opinion of SSC economic guru and economist which they interpret economic growth with regards to Administration only. Paano kung napalitan ang administration then all of you will be lost with your theories and beliefs.


http://www.philstar.com/philstar/NEWS200703052603.htm


Questions
SKETCHES By Ana Marie Pamintuan
The Philippine Star 03/05/2007

The economic figures are good, and the growth targets until 2010, though ambitious, appear attainable.

So why aren’t the rosy economic figures translating into better lives for the poor?

Why can’t we stop the exodus of millions of our people for greener pastures overseas?

Why are most of our neighbors still doing better than us?

And why do we remain heavily dependent on foreign aid, especially from Uncle Sam? * * *

Speaker Jose de Venecia Jr., who’s taken to wearing a charm bracelet to protect him from backstabbers and other vile spirits, had an explanation years ago for the failure of economic growth to trickle down to the masses: the growth simply could not keep up with the population boom.

For a tangible trickle-down effect, De Venecia said the country needed an annual growth rate of 7 percent. That’s the inspiration for the administration’s "Plan 7,8, 9" – the growth targets for the next three years – although no one will admit that it was borrowed from De Venecia.

Curbing population growth is one solution, but that’s out of the question under the Arroyo administration, which won’t risk incurring the ire of the Catholic Church. Family planning isn’t going to be pushed especially in an election year.

So the other approach is to work on economic growth.

Much of the rosy growth figures can be attributed to the billions of dollars remitted annually by overseas Filipino workers. The figures are expected to rise further as the exodus continues and the quality of those leaving shifts from maids and blue-collar workers to professionals, including doctors and nurses.

This may be good for the National Treasury, but brain drain is bad news for any country. Already the exodus is taking its toll on the public health care system and education. Then there are the social costs, with long separations straining marriages and family ties.

We go back to our question: If the economy is doing great, why are our people still leaving in droves? Surely it’s not just a sense of adventure that drives our people to teach English in Cambodia or risk kidnapping by toiling in the oil fields of Nigeria. * * *

Globalization has facilitated the migration of workers all over the planet. Even people from developed countries leave their homelands to resettle elsewhere.

But not on the scale that we are seeing in our country. A tenth of our population is now overseas. Many of them are armed with skills that are badly needed here.

The best way to end the Philippine diaspora and bring home our workers is by giving them opportunities for a decent wage in their own country.

This is possible in an export-driven economy, or in one that is a favored destination for foreign investments. Our economy is middling in these areas compared with many other Asian countries.

Investors are pleased with recent fiscal and economic reforms and are generally bullish about the country’s prospects for the year. Their main concern is whether the reforms can be sustained, and whether other measures to create a better investment climate can be implemented.

Politics, which should work for the public good, has become so poisoned that it compromises certain economic policies and has become a concern for investors.

Areas of improvement have been pointed out to the government by different business groups at different times in the past years. Investors want better infrastructure, lower power costs, predictability in economic policies, a better regulatory environment, transparency, accountability, the rule of law and less red tape. They want democratic institutions to work.

In many of these areas, our neighbors have done their homework better. Thailand has been shooting itself in the foot in the past months but is still doing pretty well, Vietnam looks set to outpace us and even Cambodia is rapidly catching up.

Export and foreign direct investment figures are promising, but they can be better if we can stop the slide in national competitiveness.

But many sectors are wallowing in complacency, refusing to change so they can survive global competition.

It will take years before we can reverse the deterioration in the quality of education and the skills of our workforce. We should be in panic mode by now over the state of public education.

Other countries are fast-tracking the improvement of their human resources by subsidizing the education of many of their citizens in the top western universities, or else building schools and importing world-class educators for their citizens.

Our education officials will need to come up with measures to give Filipinos world-class education, without which our country cannot survive in a global economy. * * *
For now world-class education is available only to those who can afford it.

A study will have to be made of the distribution of wealth in this country. If rosy growth rates are simply making the rich richer and the poor poorer, and if the same miniscule fraction of the population controls the bulk of the wealth, that’s not national progress but the perpetuation of a long-entrenched oligarchy. :)

The economy has been one of the undeniable strengths of the Arroyo administration. In this election year, the political opposition should be prudent in its criticism of economic figures, because the opposition’s irresponsibility has been a big drag on national progress.

But the growth is not enough; many other things need to be done, urgently. The economy is doing well. It can do much better.

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Local traders earn $14.9M from UAE selling mission
By Jennifer A. Ng
Reporter

http://www.businessmirror.com.ph/03062007/economy03.html

LOCAL traders of fruits and processed food items earned close to $15 million in sales during a selling mission to the world’s biggest food and beverage exhibit held in the United Arab Emirates (UAE).

The Department of Agriculture (DA), which spearheaded the selling mission, also opened more markets for other local products such as canned tuna, coconut juice and milk, canned pineapples and special rice.

Agriculture Secretary Arthur C. Yap said the selling mission revived UAE’s interest in forging an agricultural cooperation agreement with the Philippines, particularly on the proposed creation of a halal zone in the country.

A memorandum of cooperation between the UAE and the Philippines was forged 15 years ago, but had not been renewed since the UAE abolished its Ministry of Agriculture and placed it under the Ministry of Environment and Water.

Philippine companies like Branded Food Ingredients and Enterprises, ECJ Farms Marketing Inc., El Coco Manufacturing and Trading Corp., Jambe Trading Corp., Fruitphil International Trading Corp., Mega Fishing Corp., and ASL Trading participated in the selling mission.

Yap disclosed that the DA was able to obtain orders for fresh Philippine fruits from the Greek-owned Dusat General Trading LLC, worth a total of $8.68 million. Dusat, which is also into shipbuilding, manufacturing, chemical production and hotel management; placed orders for fresh Cavendish bananas, fresh and canned pineapples.

The DA disclosed that Federal Foods LLC, the biggest and trading distributor in UAE, had expressed interest in signing a memorandum of cooperation with the Philippine government to promote local food products like canned tuna, coconut juice and milk, canned pineapples and special rice.

Yap said Spinney’s Dubai LLC, the largest supermarket in the UAE, along with another big retail outlet, Greenhouse, also offered to promote Philippine food products like coconut juice and milks.
This selling mission was indeed a success. It not only brought our local products to the attention and interest of foreign countries, but it also adds to the positive economic opportunities the country is seeing lately. This is another good news and another development to the continuous strengthening of our economy. The intensified trade relations with other nations and the continuing investment of foreign investors in our country will maintain the boom in the economy we are seeing right now. These developments brings the Philippines far up from the downfall of the economy during the collapse of the Erap administration.

About economic growth I think my belief rhyme with the below opinion of a columnist rather than the opinion of SSC economic guru and economist which they interpret economic growth with regards to Administration only. Paano kung napalitan ang administration then all of you will be lost with your theories and beliefs.


http://www.philstar.com/philstar/NEWS200703052603.htm


Questions
SKETCHES By Ana Marie Pamintuan
The Philippine Star 03/05/2007

The economic figures are good, and the growth targets until 2010, though ambitious, appear attainable.

So why aren’t the rosy economic figures translating into better lives for the poor?

Why can’t we stop the exodus of millions of our people for greener pastures overseas?

Why are most of our neighbors still doing better than us?

And why do we remain heavily dependent on foreign aid, especially from Uncle Sam? * * *

Speaker Jose de Venecia Jr., who’s taken to wearing a charm bracelet to protect him from backstabbers and other vile spirits, had an explanation years ago for the failure of economic growth to trickle down to the masses: the growth simply could not keep up with the population boom.

For a tangible trickle-down effect, De Venecia said the country needed an annual growth rate of 7 percent. That’s the inspiration for the administration’s "Plan 7,8, 9" – the growth targets for the next three years – although no one will admit that it was borrowed from De Venecia.

Curbing population growth is one solution, but that’s out of the question under the Arroyo administration, which won’t risk incurring the ire of the Catholic Church. Family planning isn’t going to be pushed especially in an election year.

So the other approach is to work on economic growth.

Much of the rosy growth figures can be attributed to the billions of dollars remitted annually by overseas Filipino workers. The figures are expected to rise further as the exodus continues and the quality of those leaving shifts from maids and blue-collar workers to professionals, including doctors and nurses.

This may be good for the National Treasury, but brain drain is bad news for any country. Already the exodus is taking its toll on the public health care system and education. Then there are the social costs, with long separations straining marriages and family ties.

We go back to our question: If the economy is doing great, why are our people still leaving in droves? Surely it’s not just a sense of adventure that drives our people to teach English in Cambodia or risk kidnapping by toiling in the oil fields of Nigeria. * * *

Globalization has facilitated the migration of workers all over the planet. Even people from developed countries leave their homelands to resettle elsewhere.

But not on the scale that we are seeing in our country. A tenth of our population is now overseas. Many of them are armed with skills that are badly needed here.

The best way to end the Philippine diaspora and bring home our workers is by giving them opportunities for a decent wage in their own country.

This is possible in an export-driven economy, or in one that is a favored destination for foreign investments. Our economy is middling in these areas compared with many other Asian countries.

Investors are pleased with recent fiscal and economic reforms and are generally bullish about the country’s prospects for the year. Their main concern is whether the reforms can be sustained, and whether other measures to create a better investment climate can be implemented.

Politics, which should work for the public good, has become so poisoned that it compromises certain economic policies and has become a concern for investors.

Areas of improvement have been pointed out to the government by different business groups at different times in the past years. Investors want better infrastructure, lower power costs, predictability in economic policies, a better regulatory environment, transparency, accountability, the rule of law and less red tape. They want democratic institutions to work.

In many of these areas, our neighbors have done their homework better. Thailand has been shooting itself in the foot in the past months but is still doing pretty well, Vietnam looks set to outpace us and even Cambodia is rapidly catching up.

Export and foreign direct investment figures are promising, but they can be better if we can stop the slide in national competitiveness.

But many sectors are wallowing in complacency, refusing to change so they can survive global competition.

It will take years before we can reverse the deterioration in the quality of education and the skills of our workforce. We should be in panic mode by now over the state of public education.

Other countries are fast-tracking the improvement of their human resources by subsidizing the education of many of their citizens in the top western universities, or else building schools and importing world-class educators for their citizens.

Our education officials will need to come up with measures to give Filipinos world-class education, without which our country cannot survive in a global economy. * * *
For now world-class education is available only to those who can afford it.

A study will have to be made of the distribution of wealth in this country. If rosy growth rates are simply making the rich richer and the poor poorer, and if the same miniscule fraction of the population controls the bulk of the wealth, that’s not national progress but the perpetuation of a long-entrenched oligarchy. :)

The economy has been one of the undeniable strengths of the Arroyo administration. In this election year, the political opposition should be prudent in its criticism of economic figures, because the opposition’s irresponsibility has been a big drag on national progress.

But the growth is not enough; many other things need to be done, urgently. The economy is doing well. It can do much better....

You answered your own question.

We need to sustain this growth by working together as a nation, hindi bilang mga talangka sa banyera.

Aren't you amazed that despite all the distractions and sabotage this administration had encountered, we still managed to sustain growth for several consecutive quarters?

We should be thankful for that.

Wealth will trickle down to all of us, if we all start working together and stop whining about all irrelevant matters.

yea one year of economic reform is not going to wipe out decades of plunder and mismanagement. It took two decades for other SE asian countries to pull themselves from their quagmire what makes us think we can do it in a year. It's only the beginning ,don't lose patience ,stay focus ,wear condoms and eventually we'll reap the fruits we sowed.

yea one year of economic reform is not going to wipe out decades of plunder and mismanagement. It took two decades for other SE asian countries to pull themselves from their quagmire what makes us think we can do it in a year. It's only the beginning ,don't lose patience ,stay focus ,wear condoms and eventually we'll reap the fruits we sowed.

I agree. Even then, they had to do it at the expense of the civil liberties so precious to us Filipinos.

We just have to be patient, stay focused on our goals and pray for our leaders.

_______________

‘Trickle-down effect a challenge’

The Philippine Star 03/06/2007

ILOILO CITY – President Arroyo’s economic team admitted yesterday that ensuring that the benefits of a stronger economy will trickle down to the people is a big challenge.

"That is a huge challenge to the economic team," said Trade Secretary Peter Favila during the Philippine Economic Briefing Domestic Road Show here.

Favila was accompanied by Finance Secretary Gary Teves and Budget Secretary Rolando Andaya.

The road show was not meant to paint a rosy picture of the economy but to tell the people how the issues affecting the country’s economy are being addressed, Favila stressed.

"We get on the ground and get the pulse of the people," he said, adding that they consider three factors in deciding whether the improved economy is felt – income levels, job creation, and stable prices of goods.

"The better the economy, the more stable the prices," he said.

Favila is set to meet with cement producers and dealers soon in view of the expected rise in cement prices during the summer season.

He said cement producers and dealers have benefited from the economic progress in the country. Thus, it is only fair that they allow the effects to trickle down to the people.

On job creation, he noted that business process outsourcing is becoming the number one industry in the country as it has been steadily providing jobs, especially in call centers.

Favila said they will be giving incentives to business outsourcing firms outside of Metro Manila.

"Now it’s time to bring progress to the countryside," he said. "We remain conscious of the demand of the people to feel the effects of a better economy trickle down to their level."

Government officials also boast of having addressed the country’s budget deficit.

"Our declining deficit, lower interest payments and rising revenue collection will allow us to invest an additional P369 billion over the next four years to build new infrastructure and to improve social services such as education," Andaya said in a statement.

Yesterday’s road show is part of a nationwide series of briefings on the Philippine economy.

The economic team is also slated to go to Central and Southern Luzon, Pampanga, Baguio, and possibly the Bicol region. – Ronilo Pamonag

^^ I believe tjhat what we are finding now are short term solutions to long-term problems, indeed. Kaya pala kung ang umuupo sa pwesto eh bulastog at walang magawa na serbisyo kaagad, magkakalampag ang mga kapareha nina aling mameng sa lansangan at mag-babattlecry ng "PATALSIKIN SI __________"

In reality, it all boils down to power relations and the greed of humans for power. Let's face it; people are inherently evil. Goodness is a trait that is borne by society. Kaya nga it takes a lot of time to develop something. ROME WASN'T BUILT IN A DAY YOU KNOW!

yea one year of economic reform is not going to wipe out decades of plunder and mismanagement. It took two decades for other SE asian countries to pull themselves from their quagmire what makes us think we can do it in a year. It's only the beginning ,don't lose patience ,stay focus ,wear condoms and eventually we'll reap the fruits we sowed.

I would like to ask some people who were here during the Ramos boom era...that was I think from 1994-1997...the Asian crisis that ended it all...

Did the Ramos gain and growth...and wherein he declared a surplus instead of a deficit trickled down to the common masa? I heard so much stories during that time ( I was still In L.A) that it was so easy to earn money...and realtors and brokers were amassing millions of pesos....well...I would like to hear the difference between during Ramos time gain and GMA's gain now....

I would like to ask some people who were here during the Ramos boom era...that was I think from 1994-1997...the Asian crisis that ended it all...

Did the Ramos gain and growth...and wherein he declared a surplus instead of a deficit trickled down to the common masa? I heard so much stories during that time ( I was still In L.A) that it was so easy to earn money...and realtors and brokers were amassing millions of pesos....well...I would like to hear the difference between during Ramos time gain and GMA's gain now....

The difference between the two is Ramos' peaceful tenure. Chauvinistic pricks in the Philippines have never learned to accept and respect a woman president. The ability of this little woman to survive the repeated attempts to topple her and still come out on top is in itself a wonder.

I agree with you....that was the time that I admired her...after surviving her coup plotterswhich includes the Catholic Church, Cory aquino, drilon, the masa dance group, hyatt 10, and yung mga ibang ipis ...

Honestly, after Cory, I made a promise that I will never again vote for a woman president since they are full of emotions and not to be very stable in times of critical decision. But GMA has prove my assessment wrong...she is very focus in her target and is not distracted by nuisance politicians who barks like a dog at night...

^At first, I was really critical of the President. But when I saw that everyone was against her and she still managed to be strong despite everything that was thrown at her, I was inspired.

^^ As an outside observer dito sa states (fil-am ako) I'm just glad that for once I'm actually hearing more and more filipinos supporting their own president! :) :okay:

At the height of the June 2005 Garci scandal, i was shocked at the alleged GMA-Garci conversation. I voted for her and i believed deep in my heart that she won. After listening to the audio, i beileve she still won the elections but not by 1 million votes. That 1 million margin was a safety net para wala nang kuwestiyon. Having said that, i am not an apologist for the president. The act itself of talking to Garci is already unacceptable. At that time, i believe we should adhere to our constitution. GMA should resign and Noli takes over (even though i did not want that to happen but for the sake of our constitution, we have to follow that).

However, i was aghast at how the opposition, the party list and militants were advocating for the resignation of all including the Vice President. They wanted a snap election. What they were advocating was also not following the constitution. Tapos, yung source ng tape ayaw nila sabihin, wala ding aamin kung sino nag record, etc. How will they admit that as evidence? So, i realize, their objective actually was to sabotage the President. Paninira talaga. Whether it was the President on tape or not is not important anymore. Silently, i was cheering for the President. This was not a battle between good and evil. The option was first - moving forward inspite of all the problems and imperfections of our leader, or the other option - starting over knowing that the alternative is also imperfect. As they say in sports, pick your poison.

Looking back, I am glad i stuck with my choices. GMA ang galing mo talaga. Ikaw ang tunay na Iron Lady. Mabuhay ka. Go GMA!!!

^^ That's a very good explanation for your reasons in supporting GMA. I sort of felt the same way about her. When she was labeled the corrupted one, she did not give way to the other cronies. To me, that's when she became the underdog as I wished for her success. The Garci tapes did taint her reputation, pero that only proves we all have our faults. She is not perfect, but she shows that leading a nation is more important than getting into partisan politcs. :)

^yeah, I admit, it is not actually easy to support the President. In my school, many people hate her to high heavens. I mean, I have to mingle with them all of the time and I have to defend the President to them. It is hard actually. The problem with my peers is that they have these notion that first, the world should be filled with idealism and life should be run to perfection and second, being critical also means that you are intelligent. I know that it is not bad to be idealistic, but we always have to understand the context in which people commit mistakes and give allowances for these. Being silent or supportive, on the other hand, doesn't mean you are just kissing asses or stupid.

^^For me, I don't really care if the president is the devil or whatsoever as long as he/she is doing the best job he/she can to the betterment of the country, the economy and the people. So what if GMA cheated? That's better considering the looming shame our country will face if ever FPJ became president. It is better to CHEAT than to REPEAT (all the things that happened when an idiot monkey became the president, si ERAP).

tehehe... i agree

Feb inflation slows to 4-year low of 2.6%
By Des Ferriols
The Philippine Star 03/07/2007
http://www.philstar.com/philstar/NEWS200703070702.htm

The nationwide inflation rate stood at 2.6 percent in February, the slowest rate in four years, the National Statistics Office (NSO) reported yesterday.

Last month’s rise was below central bank and economist forecasts and was also down sharply from 3.9 percent in January, with all commodity groups posting smaller annual price gains, the NSO said.

The government statistics office said the increase in the February consumer price index was the lowest recorded since December 2002, when the rate stood at 2.5 percent.

In the same month last year, inflation was 7.6 percent.

Economists had projected February inflation to come in at 3.1 to four percent, slightly higher than the central bank’s own forecast of three to 3.6 percent.

Consumer prices declined 0.1 percent from the previous month, after having risen 0.3 percent in January compared to December.

The February slowdown reflects both the improving supply conditions as well as the base-effect that made this year’s inflation appear slower since it was coming off a high base year-on-year.

The base effect is expected to keep the inflation rate low until around the end of the second quarter and to rise slightly towards the end of the year when compared to last year’s monthly inflation rates which started to drop in May.

BSP Governor Amando M. Tetangco Jr said the February inflation showed improving supply conditions, indicating that despite the surge in the domestic money supply, prices would not follow suit.

"This shows greater capacity of the economy in harnessing domestic liquidity to support productive activities," Tetangco said. "With the encouraging inflation outlook, it also affirms greater elbow room for setting monetary policy."

The NSO reported that the annual core inflation, which excludes selected food and energy items, eased to three percent in February from 3.9 percent in January.

According to the NSO, the inflation rate for food, beverages and tobacco group eased to three percent in February from 4.3 percent in January. On the other hand, the rate for clothing slowed down to 2.7 percent from three percent; housing and repairs to 2.3 percent from 2.9 percent; fuel, light and water to 1.5 percent from 4.6 percent; services to 2.4 percent from 3.7 percent; and miscellaneous items to two percent from 2.4 percent.

Tetangco said the inflation outlook appeared benign despite the increase in money supply and the BSP is not considering taking extraordinary steps to mop-up liquidity.

The latest available data from the BSP indicate that domestic liquidity grew by 21.4 in December, the highest growth rate ever recorded and dramatically higher than the 14 percent average growth rate used by the BSP for its macro-economic projections.

Even at this level of growth, however, Tetangco said the BSP did not consider it "excessive" and had not seen any indication that the growth pace had any adverse impact on inflation. – With AFP

^yeah, I admit, it is not actually easy to support the President. In my school, many people hate her to high heavens. I mean, I have to mingle with them all of the time and I have to defend the President to them. It is hard actually. The problem with my peers is that they have these notion that first, the world should be filled with idealism and life should be run to perfection and second, being critical also means that you are intelligent. I know that it is not bad to be idealistic, but we always have to understand the context in which people commit mistakes and give allowances for these. Being silent or supportive, on the other hand, doesn't mean you are just kissing asses or stupid.

I agree that it is hard to be idealistic and clean especially when one forays into politics which is one of the dirtiest arena, at best. Having come from the same academic environment as you, I see where you are coming from.
I know of a lot of former "idealistic comrades" who are now sitting there in government themselves partaking of the spoils.

It would seem that destiny also plays its role in politics and GMA is gifted with the Macchiavellian traits of both "Virtu" (skill) and "Fortuna" (luck). So, in this case, while I am not a big fan of the macchiavellian salvo "the end justifies the means" (no matter how wicked the means to the end employed was), in the long run, it might have redounded to the overall benefit of the country given the dismal choices of leaders that we have at that time.

^^For me, I don't really care if the president is the devil or whatsoever as long as he/she is doing the best job he/she can to the betterment of the country, the economy and the people. So what if GMA cheated? That's better considering the looming shame our country will face if ever FPJ became president. It is better to CHEAT than to REPEAT (all the things that happened when an idiot monkey became the president, si ERAP).

I would like to think that moral probity is still a good trait in a leader. Because political cunning and economic savvy may bring the country to a better state for now but we still have to look after "the soul of the nation" for our future.

I still have to give a thumbs up to GMA for her political savvy and survival instincts. She is an ace political player.

Fitch Ratings has affirmed its positive rating for the Philippines. This is because of the implementation of the VAT measures and the huge restraint imposed by the government on its spending. Nonetheless, the country needs to improve its tax collection if it wants to sustain its fiscal gains. The Arroyo administraion is to collect the VAT first before resorting to new tax measures.

Compared to Clinton that we prayed for him not to be ousted due a under the table sucking incident!!!hahahahaha.....

^^ I wanted Clinton to be ousted actually. The bombing of Sudan was sanctioned by him... with his "wag the dog" style politics to deflect worldwide attention from the Lewinsky incident (of course that diversionary tactic failed). He created this monster that had far-reaching worldwide implications. The Talibans even scoffed at him on air.

This article exposed the campaign tactic of the stupid opposition:

http://www.manilastandardtoday.com/?page=bongAustero_mar7_2007

It’s not the economy, stupid
By Bong Austero
Because it is election season, candidates are expected to indulge in political tirades meant to prop up their political stock. Certain issues such as fitness for office or morals are highly subjective and open to debate and interpretation. But the performance of the economy is not.
Sometime last week, the Genuine Opposition came up with a full-page advertisement in some newspapers to make mincemeat of the economic gains being trumpeted by this current administration.
In so many words, the opposition said that the country’s much-vaunted economic progress is a mirage and that the administration is making false claims, particularly about its role in the bull run of the stock exchange and in the appreciation of the peso. From the point of view of the Genuine Opposition, the current administration is simply lucky to be sitting in power at a time when all these good things are happening in the economic front. That like a natural phenomenon, economic progress is bound to happen anyway regardless of what this administration does or does not do.
This latest tirade is expected. The whole point of being in the opposition is to attack those who are in power and show the people why they are the better alternative.
Thus, efforts to refute the so-called economic gains is par for the course given the fact that even the economic managers of the country admit that so much more needs to be done before any economic progress can be felt by ordinary people.
But then again, the apparent lack of connection between economic figures and public perception is not a phenomenon that is exclusive to the Philippines. The latest issue of Time Magazine reports that the same phenomenon is shaking up the whole of Europe. While most countries in Europe are riding an economic boom, most Europeans are of the impression that they are worse off today than ever before. Discontent is a worldwide phenomenon brought about by increasing cost of living.
The opposition’s simplistic spin, however, is insulting because economic figures are difficult to fudge and our economic performance is subject to close scrutiny by a number of international agencies who are all in agreement that the economy is indeed picking up. More importantly, attacking the economy is counterproductive because quite frankly, it is not the issue. Politics is the issue.
Simply put, it is politics that is weighing down heavily on the economy, not the other way around. We should all be rallying around the economic gains and pushing these further upstream rather than tearing these apart.
The claim that the performance of the stock exchange is simply brought about by a general upsurge in the capital markets in the region is ridiculous because it assumes that international fund managers simply invest their money where the wave leads them. It doesn’t work that way and as someone who spent eight years in the local capital markets, I know that attracting foreign capital into the country is never that simple. God knows how hard the local capital markets people have been trying to entice foreign investors into bringing their money into the country. So once again: The upsurge in the local capital market is caused by increased confidence in our economic fundamentals.
To attribute the surge in the local stock market to sheer dumb luck is to spit on the faces of these people. In fact, the local market was able to recover within a day after a steep fall last Wednesday brought about by an external glitch, proof that our economic fundamentals are strong enough to withstand external factors.
But I just wish they stopped there. Unfortunately, the real intent of the ad became painfully obvious when it tried to make comparisons between the supposed economic gains under Joseph Estrada’s watch as president and those during Gloria Macapagal Arroyo’s. All those previous assertions that this election is not a contest between Estrada and Arroyo has just been shot down by that ad.
To say that we were better off during Estrada’s time than we are today is ludicrous. The Genuine Opposition is indulging in fallacious debates because to begin with, the context is not the same. The time gap between Estrada’s short-lived reign and the present is also a major factor that needs to be taken into account as people do tend to look at the past more kindly than they do the present.
Let’s shorten this pissing contest by simply stating the obvious: By no stretch of the imagination can Estrada be considered the better economic manager. How can a regime that plotted its economic programs during midnight meetings over bottles of scotch and which involved suspicious characters be any better? Of course his supporters say otherwise and they are entitled to live in their own mythical world where Estrada is a hero and maybe even perhaps a god. But I am aghast that the more learned people in the opposition seem unable to make these distinctions anymore perhaps because they can’t seem to see through their hatred for Arroyo.
Of course, this administration is guilty of so many sins and deserves to be made accountable for them. But let’s cut this BS about Estrada being the better leader. Let’s not rewrite history in an effort to topple this administration.
And more importantly, let’s not drag the economy into the fray. Whatever growth we are experiencing in the economic front deserves to be nurtured and supported regardless of where our political affiliation lies. It’s a given that sustained economic growth is bound to enhance our prospects as a nation in the long term. To do otherwise is akin to sabotage. Could it be that is exactly what the opposition is doing?
Any effort to undermine and sabotage the economy is counterproductive because it is not only Arroyo’s fortunes that are at stake here. If the GO wants to get the business sector and the working class on its side, it had better get its act together and leave the economy alone. The GO had better focus on more substantive issues rather than attack the economy. It seems to forget that there are so many among us who are working so hard to keep the economy afloat.
By attacking the economy, the opposition has only succeeded in alienating the business sector and the middle class.
More than two decades ago, just before Marcos was kicked out of power, the businessmen and the middle class rose up in arms over Marcos’ tirade against the business sector. At that time, the slogan of the businessmen and the middle class was “The issue is political, not economic, Mr. President.”
The Genuine Opposition had better brush up on history. It’s not the economy, stupid!

^^ A real eyeopener talaga.

Rather than blaming somebody, rather work hard for rising costs. At least inflation rates were not are cruel as they were years ago.

This article exposed the campaign tactic of the stupid opposition:

http://www.manilastandardtoday.com/?page=bongAustero_mar7_2007

Perhaps exposing their jealousy for the achievements on something they can hardly prove by themselves or they know the tried and tested formula on masa's ignorance by making empty promises of instant gratification over long-term benefits?