The Philippine Economy - Compiled Threads [Archive] - Page 2

ryanr

December 21st, 2004, 04:17 AM

2004 GDP growth seen at 5.9%

By JENNIFER A. NG, Reporter
The Asian Development Bank (ADB) expects the country's full-year gross domestic product (GDP) for 2004 to grow by 5.9% due to strong personal consumption and modest growth in exports.

But in its semi-annual "Asia Economic Monitor" (AEM), ADB's regional economic monitoring unit said economic growth for 2005 would slow to 4.7% due to the winding down of the global electronics cycle, weaker growth in industrial countries such as the United States, and the slowdown in China's economy.

"Supported by strong personal consumption, and to a lesser extent exports, Philippine GDP grew by a better-than-expected 6.5% in the first three quarters of the year," AEM read.

"With consumer spending slowing, partly due to high oil prices and weaker export growth in the last quarter, GDP growth for 2004 is forecast to be 5.9%. This figure is one percentage point higher than the July forecast," it added.

The 5.9% forecast of ADB is within the 5.9%-6.1% economic growth target set by the National Economic and Development Authority (NEDA) for this year.

ADB's 2004 growth forecast for the Philippines, however, is lower compared to Thailand's 6.1%, Vietnam's 7.3%, Malaysia's 7.1%, and the People Democratic Republic of Lao's 6.5%.

Citing forecasts by private macroeconomic survey firm Consensus Economics Inc., East Asia including the Philippines is expected to grow by a robust 7.6% for this year, higher than the 7.3% forecast presented in the July 2004 AEM.

"Looking ahead, with the external economic environment expected to be less favorable, and China continuing to rein in growth, East Asia is expected to register a more moderate, yet still solid, 6.5% growth in 2005," ADB said.

The Philippines economic growth for next year, ADB said, is expected to slow to 4.7%. This, however, is 0.4 percentage points higher than its forecast in the July AEM.

ADB said the growth forecasts for next year were subject to three main risks -- persistent high oil prices, a disorderly adjustment of US current account deficit, and the possibility of a hard landing for China's economy.

"If oil prices remain high, or worse, increase further, East Asia's growth in 2005 will be significantly below current forecasts," ADB said.

While the International Energy Agency has forecast a slowdown in world demand for oil to 1.8% in 2005 from an estimated 3.3% this year due to a subdued demand from China and a slowdown in the global economy, ADB said the recent decision of the Organization of the Petroleum Exporting Countries to cut supply, combined with geopolitical risks, suggested that the risk of high oil prices remained.

"Also, six-month Brent crude futures averaged $39.60/barrel in the first half of December, indicating that markets expect prices to remain firm in the near term," ADB said.

It added that the appropriate policy response to counter risks should have three key components: tigher fiscal and monetary policies; greater exchange rate flexibility; and structural reforms that would create an environment conducive for a sustained increase in domestic demand especially private investment in countries where it has been subdued since 1997.

Miguel

December 22nd, 2004, 01:36 AM

Of the events happening around the world, Philippines should have a better standing in the economy. Philippines wasn't able to capitalize the weakening of the dollar due to the Middle East conflict while the rest of the region have experienced a boom. The possible credit downgrade also is looming, there should have been a brighter prospect with the approval of the sin tax bill but the advent of this fiasco involving the dubious sale of this megawatt power plant by Napocor puts the country back in critical condition. Corruption really is the main enemy of this country. Then there's the poor approval rating of the president by the general public. Investors were afraid to put their money on the line with the hint that there might be anarchy. Then of course the domino effect with rising of the price of oil. All the reforms that the government intended to do must be done fast and quick. Well the people would be greatly affected by these reforms with the increase of electricity and its effect but its all part of the growing up pains. I wish there could be a better way for this. This Christmas season might be a big help with the holiday spending plus the remittances of overseas workers but for how long might its effect be would be of question. Plus all this growth could not be fully felt by the citizens with the population problem. There's just too many of us to share that pie. So many things to be done, and whatever result we will still be the one who would feel that effect. I just wish with all hope that it would come out better. And all authorities involved would set aside their personal motives and just focus what is beneficial for everyone. Maybe that would be my Christmas wish. Merry Christmas everyone!!!

tyronne

December 22nd, 2004, 01:51 AM

miguel, that was a very touching piece :okay: i share same sentiments. happy holidays to you, too!

rmb

January 1st, 2005, 11:29 AM

Posted: 2:57 AM | Dec. 31, 2004

Tina Arceo-Dumlao
Inquirer News Service

THE YEAR 2004 was not exactly an annus horribilis for the retail industry, and it has the burgeoning population and the unabated inflow of money from Filipino workers abroad to thank for it.

While some sectors of the economy almost ground to a halt the past year, the retail industry is estimated to have grown by 5 percent, the same pace recorded over the past three years.

Experts say the industry will not cool anytime soon, and can even surge if the economy finally kicks into high gear.

Having one of the highest birth rates in the world indeed has its benefits, according to Roberto S. Claudio, vice chair of the Philippine Retailers Association.

While the 2.4 percent annual population growth is frowned upon by analysts due to the strain on the economy and the country's finite resources, it augurs well for the retail industry.

Add to that the unrelenting exodus of Overseas Filipino workers, who bring in over $11 billion in remittances, the bulk of which go into consumption, rather than investments, and the Philippines gets a vibrant retail industry.

A cursory look at the country's malls, with customers leaving stores with plastic bags full of purchases, should be enough proof.

Big population

It makes one question the doomsayers' dire predictions that the Philippine economy will continue to languish in the cellar.

Claudio explained that unlike the other countries in Southeast Asia, such as Singapore and Hong Kong, the Philippines has a big local population that keeps retailers alive despite problems in the world economy.

With a population of 86 million, there is enough room for retailers to flourish within Philippine borders.

"We are getting about 1.6 million new shoppers a year because more people are joining the labor force and earning their own money," Claudio says.

He adds that the robust buying activity is not limited to the urban centers. Much activity is also going on in the rural sector, thanks to the improved incomes brought about by gains in the agriculture sector, the single biggest component of the Gross Domestic Product.

"There is still disposable income and at the end of the day, people still need to eat, have shelter and clothes. That is a natural source of growth for the retail industry," Claudio says.

He also cited the growing phenomenon of shrinking families, which leads to more family disposable income.

Claudio notes the experience of his firm Toby's, one of the country's leading distributors of sports goods and apparel, which continues to post solid growth despite the perceived faltering economy.

"Before, people used to have just one to two pairs of shoes. But now, Filipinos have an average of about four pairs of shoes," he says.

Rex Drilon II, chief operating officer of Greenhills Shopping Center developer Ortigas and Co., says his group was very optimistic about the prospects next year, estimating that the industry will grow by another 5 percent. And that is being conservative.

"The challenge is to grow faster. Retail has been growing because the price of copra has been growing. That means higher income from the rural population. That is why the malls are doing great. For us, our advantage is value-shopping, enabling us to grow at double-digit levels over the past three years," Drilon says.

He says with the economic situation such as it is, he expects companies that offer value products will do well next year, compared to those that cater to the high-end market. Telco growth

Bienvenido Tantoco III, president of the Philippine Retailers Association, meanwhile, says the telecommunications industry was a clear winner in 2004.

Tantoco says while the retail industry grew by a significant 6.3 percent this year, a big portion of that spending was captured by the phone companies.

The latest survey on family expenditures, for instance, showed less money is being spent on food, and more money is invested in the purchase of phone cards for cellular phones.

This leaves little funds left over for other parts of the retail industry, but says there are still great opportunities for growth.

Filipinos themselves are very optimistic about the growth in the retail sector, according to the latest forecast of MasterCard International.

MasterCard said in its study on the retail prospects in Asia that retail sales are estimated to grow by 7 percent in the second half of the year, with total sales expected to reach some P352.3 billion.

The country received a superior score of 54.8 in the latest MasterIndex of Consumer Confidence compared to its score in the preceding period of 34.3.

The improvement was largely attributed to a very positive outlook on regular income at 80 and a relatively neutral stance on the economy at 53.

Conducted twice a year in June and December, the MasterIndex of Retail was launched in June 2003 by MasterCard as part of its knowledge leadership in Asia/Pacific.

It is among MasterCard's MasterIndex suite of research initiatives, providing six-month forecasts of retail sales growth in 12 markets: Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand.

"Over the next 12 months, we would likely see more of the same activity. I believe that there is some belt-tightening so the average basket size is becoming smaller. People are buying less but with more frequency," Tantoco says.

Greater competition

Tantoco adds the retail industry would be characterized by even greater competition, which will force companies to find their niche and protect it at all costs.

"You will really have to distinguish yourself so that the company will stand out and attract customers. Competition next year will make consumers even more demanding," he said.

Robina Gokongwei-Pe, group general manager of the Robinsons Department Store, shares Tantoco's view that the retail industry will be more challenging next year, given some pressure on the Filipinos' purchasing power.

As such, Gokongwei-Pe says that the prepaid phone cards will continue to be the winner next year, with more Filipinos choosing to put their money in communication.

She adds that there will also be good prospects next year for small-sized products or products sold in sachets or smaller containers. "These will not necessarily be cheaper, but they are easier to buy because they are smaller," Gokongwei-Pe says.

She adds that the Robinsons group is holding off the completion of new malls next year, but will put its capital expenditure budget on the improvement and expansion of existing malls.

The Robinsons group just recently opened its latest mall, the Robinsons Pioneer, and Gokongwei-Pei says the reception has been on target.

"Generally, we performed better this year than last year but we see more challenges ahead," she adds.

PJ Masakayan, vice president for retail of Rockwell Land Corp., the owner of the Power Plant mall, also had a cautiously optimistic outlook on the retail industry, although the mall performed better this year compared to last year.

"Our market has displayed resilience. Of course our traffic does not compare with that of the bigger malls, but the spending power of those that do go here is higher," he says.

Masakayan says fashion remained the best-performing sector, with growth coming in at double-digit levels. Coming in next is food, which bounced back this year from a decline last year.

"For next year, we are still betting on fashion. We are doing some "creative leasing" or changing our tenant mix to increase sales," he says.

On the whole, the leading players of the retail industry are looking at inevitable growth next year, if only from the growth of the domestic base.

But if the economy will turn for the better, then retailers can expect those cash registers to add up higher sales

rmb

January 1st, 2005, 11:40 AM

Actual
1Q = 6.4%
2Q = 6.6%
3Q = 6.3%
My Estimate
*4Q = 6.1%
overall = 6.3% .

..again I presume WB, IMF and ADB estimates to be lower than this and again an evidence of their failure to predict. :cheers:

For 2005, 5.5-6% is more likely. :)

Lightspeed

January 2nd, 2005, 12:58 AM

Consumption is indeed the lifeblood of the Philippine Economy.

Filipinos earn money from all over the world, and that money is funnelled into the Philippine economy where people spend and spend and spend like crazy.

No wonder indeed, why the Philippines sees huge malls and retail establishments mutate like mushrooms each year.

Still, it would be better if the growth is investments-driven, rather than consumption-driven. Investments have a much bigger multiplier effect than consumption does.

Also, unabated consumption puts a strain on the country's Savings Rate, which we all know is one of the key drivers of a healthy economy.

jbkayaker12

January 2nd, 2005, 06:29 AM

Aside from the retail industry getting a boost from the overseas Filipinos, the real estate industry should also benefit from these growing number of Filipinos residing overseas. Condominiums are rising in and around Metro Manila and a lot of the large players in real estate are banking on the Filipinos overseas. This would translate to more jobs in the construction industry as well.

The local food and beverage companies should also focus more on how they can tap the large number of Filipinos overseas by exporting their products in particular to the United States where there is a big market. I buy Philippine made products in the Filipino owned stores here in Las Vegas, there are so many sari sari stores here surprisingly considering there are only around 40 to 50 thousand Filipinos in Vegas. I would assume there are more sari sari stores in big cities like Los Angeles and San Francisco. Even better if they can tap the large American grocery chains.

Pearl of the Orient Seas - The Philippines (http://community.webshots.com/user/jbkayaker12)

Saigonese

January 2nd, 2005, 07:42 AM

I've been told that the Philippines has a very high unemployment rate and that there are hardly any job for locals.

Solblanc

January 2nd, 2005, 08:11 AM

I've been told that the Philippines has a very high unemployment rate and that there are hardly any job for locals.

which is why you might see a few where you live :D

Lightspeed

January 2nd, 2005, 11:52 AM

This is changing, though.

One of our rising industries is the Business Processing Outsourcing (BPO) industry which is relatively labor-intensive.

As more and more BPO companies set up shop in the Philippines, we expect our unemployment rate to moderately decrease.

mysaong03

January 2nd, 2005, 09:12 PM

I've been told that the Philippines has a very high unemployment rate and that there are hardly any job for locals.

the unemployment situation here isnt really as bad as what many think, in fact, the rate is only playing anywhere bet. 9-13%, comparably very similar to those from the EU, where france, germany & spain have consistent high unemployment rates of 10-12%. even the labor dept here disclosed the ours is overstated bec. the method of measuring the rate here is different from the official definition & measurement recommended by the ILO. actually, the bigger problem here is the huge underemployment, not unemployment. :)

bagel

January 2nd, 2005, 10:22 PM

How can there be underemployment if the unemployment rate is between 9% and 13%?

Is there underemployment for skilled and specialized jobs that the unemployed population cannot meet? If this is the case, then the larger problem is undereducation and points to a different, yet definitely related set of problems.

JudeD

January 3rd, 2005, 02:31 AM

I think the definition of underemployment being used here is that a lot of workers are employed in jobs and receiving salaries that are not at par with their education or experience. Basically, you see a lot of well-educated Filipinos "slumming" in jobs that they're clearly overqualified for.

jbkayaker12

January 3rd, 2005, 08:09 AM

My cousin who is a Psychology graduate of De La Salle Taft is working for Citibank. Yes those BPO jobs sure are helping the economy in some way and to think that he just graduated recently.

Jon

bagel

January 3rd, 2005, 09:49 AM

So the underemployment problem is definitely linked to the unemployment rate then. If there is such a great demand for jobs by the huge unemployed population, then employers can afford to underpay their employees.... A catch-22 for workers in the Philippines: take a lower paying job (compared to people who are equally skilled in different countries) or have no job at all.

bustero

January 3rd, 2005, 02:09 PM

unemployment is not working

underemployment is

Employed only part-time when one needs and desires full-time employment. and or
Inadequately employed, especially employed at a low-paying job that requires less skill or training than one possesses.

Miguel

January 5th, 2005, 12:45 AM

tyronne

January 5th, 2005, 01:02 AM

I just wonder if this is an underemployment scenario: A Filipino doctor working as a nurse in the US.

a. The migrant doctor is underemployed because he is working in a job that is not at par of his qualification or does not make full use of his skills
b. A doctor in the Philippines is underemployed because he is receiving less salary compared to a Filipino doctor working as a nurse in the US

for Case A, i would consider it as underemployment based on the conditions you gave.

for Case B, i think it's about salary rate issues, not skill-related issues so i wouldn't consider it as underemployment. after all, cost of living is varied across countries. so expect some discrepancies in salary rates between a doctor in the US and a doctor in the Philippines.

Miguel

January 5th, 2005, 01:14 AM

for Case A, i would consider it as underemployment based on the conditions you gave.

for Case B, i think it's about salary rate issues, not skill-related issues so i wouldn't consider it as underemployment. after all, cost of living is varied across countries. so expect some discrepancies in salary rates between a doctor in the US and a doctor in the Philippines.

yeah. I have seen a lot who preferred to be underemployed abroad rather than to be employed here. swallow thy pride. what's the use of a high position when it is barely enough to satisfy one's needs. oh well, it's anyone's decision.

Miguel

January 8th, 2005, 02:22 AM

I might appear pessimistic, but I'm not. I still have confidence that this country will improve. According to reports, investments rose by more 200% in 2004, a projected 10% growth for this year's exports, BOPs are coming in giving employment to thousands of Filipinos with higher rates compared to conventionational jobs, the Supreme Court's decision affirming the constitutionality of foreign ownership of mining projects resulted in renewed interest in oil and gas exploration, according to the Department of Finance the budget deficit was cut-off more than the targeted, and the Lower House cut their pork barrel by 40% and have fast track the passage of bills that could generate more income to the country together with the Senate. Of course it is not a smooth ride with some glitches along the way but there is no shortcut to success. Our country will still experience the hardships. "We're not out of the woods yet," as Finance Secretary Juanita Amatong said but we're on target. Even according to a British business official that our country is not really experiencing a financial crisis, that only occurs if we could not pay our debts, the president only proclaimed so that the laws will be pass. One thing we lack though is the confidence. I did not vote for Arroyo, I voted for Roco but for us to grow we have to give our support and not just continue the mudslinging made by some opposition. If the enthusiasm and dedication shown right now will still continue then who knows by 2010 we might see a new Philippines.

ThisFire

January 8th, 2005, 02:51 AM

Even though there's always some negative stories with something in the society and of course, the economy, I always think and feel that things will improve and grow slowly but surely. The Philippines just needs the right tools and people to get things into place.

stephencua

January 10th, 2005, 03:03 AM

its good to know that there are still alot of people out there who have faith that our country will rise up from where it is right now..

ThisFire

January 10th, 2005, 03:46 AM

Well what more can you do?! You have to have faith in your country, otherwise there won't be any improvements. Instead of putting it down, people should act some part in what they believe would make things improve.

stephencua

January 10th, 2005, 04:16 AM

i couldnt agree with you more on that..

rico

January 10th, 2005, 08:18 AM

its good to know that there are still alot of people out there who have faith that our country will rise up from where it is right now..
count me as one of 'em. ;)

JudeD

January 10th, 2005, 03:50 PM

Oh, for the heady days of 1996 again when it seemed that anything could be accomplished and NIChood was just around the corner. Some of the big projects started then have yet to be completed (Skyway, MRT extension), but in fairness some have progressed beyond even our expectations (LRT2, NLEX rehab).

amras

January 11th, 2005, 02:30 PM

Export growth seen flat in early 2005--analyst
Posted: 4:01 PM | Jan. 11, 2005
Erik de la Cruz

MERCHANDISE exports may see flat growth in the next few months, after rising at their fastest pace in about 30 months in November 2004, as global demand slows down, Song Seng Wun, a regional economist at GK Goh Securities in Singapore said.

Merchandise exports in November grew 19.5 percent year-on-year to 3.688 billion dollars, the fastest rise since July 2002, the National Statistics Office (NSO) said.

It was the second month in a row, but only the fourth time since January last year, that exports grew at double-digit levels, the statistics agency said in a statement.

In July 2002, exports grew by 24.2 percent year-on-year.

In the first 11 months of 2004, merchandise exports rose 9.9 percent to 36.331 billion dollars. The government was expecting exports to grow by 10 percent for the whole of 2004.

Electronics exports, which accounted for 67.6 percent of total export revenues in November, rose 16.1 percent from a year earlier to 2.494 billion dollars.

"The November exports growth was much better than we expected, but basically, the low of base of the previous year contributed to the year-on-year rebound," Song said.

"But in terms of the external sector, we see a slowdown (in global demand) so we would expect Philippine exports growth in value terms to be flat over the next three months or so."

Merchandise exports in the first quarter of 2004 grew 6.3 percent year-on-year to 9.19 billion dollars.

Song describes as "fairly realistic" the forecast of Economic Planning Secretary Romulo Neri that exports growth this year will slow to 8 percent after rising by a projected 10 percent in 2004, due to a sluggish global economy.

Neri also sees lower revenues given a reduction in export quotas for garments shipped to the US this year.

The Confederation of Philippine Exporters remains bullish as it expects the country's exports to grow at least 10 percent this year on the back of a 10 percent growth in revenues from electronics, the country's biggest dollar earner.

normandb

January 15th, 2005, 04:40 AM

eventhough i am dismayed to some of our politicians i still have faith in this country. enough of edsa revolution. i trust the arroyo administration and i think she is doing a good job. i hope naia t3 will open soon, it is good for our economy and our tourism industry.

wowphilippines (http://www.geocities.com/ncbmandy)

rmb

January 17th, 2005, 11:30 AM

Posted: 12:31 PM | Jan. 17, 2005

Agence France-Presse

ECONOMIC growth likely reached 6.2 percent in 2004, above the official target, Economic Planning Secretary Romulo Neri said Monday.

The government initially targeted gross domestic product (GDP) growth of between 4.9 and 5.8 percent but after a robust first nine months, the official projection was raised to 6.1 percent.

"Full-year growth for 2004 may be about 6.2 percent. It is our emerging estimate," Neri told reporters.

This year the economy should be on pace for a 6.3 percent expansion, Neri said, despite the forecasts of most analysts for growth slowdown.

The government will release the 2004 figures on January 31.

A robust economic performance in the three months to September 2004 -- made possible by favorable weather that boosted farm output and consumers spending more on mobile telephones -- brought GDP growth to 6.5 percent for the first nine months.

-------------------
Hmmm. not far from my estimate of 6.3% :cheers:

amras

January 18th, 2005, 04:55 AM

Philippine credit rating cut by one notch
Still betterthan 2-notch downgrade, say analysts

Updated 02:15am (Mla time) Jan 18, 2005
By Doris Dumlao, Gil C. Cabacungan Jr., Michelle Remo
Inquirer News Service

Editor's Note: Published on page A1 of the Jan. 18, 2005 issue of the Philippine Daily Inquirer

THE CREDIT downgrade finally came. But the downgrade of the country's long-term foreign currency debt was by only one notch instead of the two notches that some investors had feared.

Global credit rating firm Standard & Poor's yesterday lowered to BB- from BB the long-term foreign currency sovereign debt, citing the government's "inadequate" response to its fiscal problems.

The S&P cut, to three notches below investment grade for the country's foreign obligations, came weeks before Moody's Investors Service, another rating firm, is expected to deliver its own downgrade on the Philippines.

A downgrade raises interest rates and further jacks up debt payments. Some legislators had warned last year that a credit downgrade for the Philippines would be disastrous, saying that a one-percentage-point increase in interest could mean P30 billion more in debt payments.

The Philippine government, Asia's biggest issuer of sovereign debt after Japan, has direct foreign and domestic debt obligations of about $65 billion.

Despite Malacañang's claim that the fiscal crisis was over, S&P also lowered the long-term local currency sovereign credit rating to BB+ from BBB- and the short-term local currency debt rating to B from A-3.

The outlook on the long-term ratings, however, was "stable" which means that no further downgrade is likely over the near term.

Governor Rafael Buenaventura of the Bangko Sentral ng Pilipinas said the downgrade would not likely affect forthcoming foreign borrowings by the government as the market had already factored into the pricing of debt papers a two-notch downgrade.

Last October, S&P had already warned of heightened risks to the Philippines' credit rating due to lagging fiscal reforms and rising vulnerability to the inching up of global interest rates.

"S&P has now revised downward its expectations that the government will be able to raise tax receipts materially from their current low level of 12 percent of GDP [gross domestic product] and that the government's debt trajectory will move to a clearer downward trend," S&P's analyst Agost Benard said yesterday.

"With the public sector debt at 110 percent of GDP and government interest expense at nearly 40 percent of revenue, prompt passage of the government's fiscal plan was necessary to support the Philippines' ratings at their previous levels," he added.

Benard said that of the eight revenue measures proposed by Malacañang, only the excise tax on tobacco and alcohol products had been passed. But he said this was even a "watered down" version.

He warned that half of the government's debt was in foreign currency, thus limiting fiscal managers' room to maneuver in case of rising global interest rates and the weakening of the peso.

Sigh of relief

An analyst said the debt markets would greet the news of the downgrade with "a sigh of relief."

"You had a lot of sell-side hype that it could be a two-notch downgrade, and this removes that uncertainty," said Tim Condon, head of Asian Financial Market Research at ING Financial Markets in Singapore.

"It's in line with our expectations, a one-notch cut and a stable outlook, so this is good news in that it removes part of the ratings action overhang on the bonds. People can now concentrate on what is a booming year for the Philippine economy, which is translating into some progress on the public finances," he said.

Asked if the downgrade was likely to effect the performance of Philippine dollar bonds, Condon said: "There could be a knee-jerk reaction to sell, but I suspect that many people share our view that the economic fundamentals are improving and will look to buy on dips.

Joseph Tan, a regional economist at Standard Chartered Bank, also in Singapore, said a two-notch downgrade would have been immensely negative.

"We would expect this cut to have some negative impact on the peso, but the damage will be fairly well contained given the market was expecting a two-notch downgrade," Tan said.

At a press briefing, Buenaventura said he was surprised that S&P's downgrade came out prior to a formal review.

"This will probably have an impact on Moody's rating unless we come closer to our target before they finalize their review," Buenaventura said.

"We need to work twice as hard to show that we will in fact be able to do what we say we'll do," he said, referring to the government's commitment to raise yearly P80 billion in fresh revenues from new tax measures.

He said the downgrade was a reaction to "a perceived no action on our part" to pass the much-needed tax revenues.

The Department of Finance said the S&P downgrade was unfair, saying the country did not deserve the lower rating because of "developments" on the fiscal front.

Finance Secretary Juanita Amatong said the decision of S&P was a surprise, considering that it was scheduled to send a mission to the Philippines in February.

She said that without S&P's mission coming to the country, the ratings agency seemed to have based its decision on "baseless" speculations that the government's fiscal reform agenda was not progressing.

Amatong said the administration's value-added tax (VAT) plan -- consisting of raising the VAT to 12 percent from 10 percent, and the removal of exemptions for several sectors -- would generate substantial revenues for the government. The Department of Finance estimates said the twin VAT proposals could generate as much as P60 billion in additional revenues a year.

Budget Secretary Emilia Boncodin said she had "expected'' the downgrade although she had been hoping that the improved fiscal position at the end of 2004 would have helped avert it.

She reported that the government was able to keep its budget deficit way below the deficit target of P198 billion in 2004.

Apparently, Boncodin said, the rating agency was looking for a "more dramatic and sustained trend.''

Malacañang expects S&P to bring the Philippines credit rating back to plus territory within the next six months.

"We are confident that S&P will revisit our rating and consider reversing the downward action once they have a complete understanding of the government's significant achievements to raise revenues and contain the future impact of NPC (National Power Corp.) losses through successful privatization and rate increases,'' said Press Secretary Ignacio Bunye in a statement.

To convince S&P to upgrade the country's credit rating, Bunye said, Congress should pass new tax measures, revenue collection agencies should improve their performance, and the National Power Corp. should complete the sale of its transmission and other assets.

stephencua

January 21st, 2005, 06:48 AM

here's a piece of news that is very enlightening.. our stock market is very healthy and has been on the upside since the start of the year..

taken from inq7.net

SHARE prices closed 1.59 percent higher Friday on buying of stocks that are expected to announce positive earnings for 2004 and renewed interest in the mining sector, analysts said.

The Philippine Stock Exchange composite index rose 31.02 points to 1,987.84.

rmb

January 21st, 2005, 01:16 PM

Agri sector records 5.06% growth in 2004
By Rocel C. Felix
The Philippine Star 01/21/2005

The agriculture sector, which contributes a fifth of the country’s total economic output and employs more than half of its workforce, bucked four devastating typhoons in the fourth quarter to post a 5.06-percent growth in 2004, 1.34 percentage points higher than the 3.72-percent growth in the previous year.

Agriculture Secretary Arthur C. Yap said that notwithstanding an anemic fourth quarter with growth recorded at only 1.35 percent compared to 5.42 percent during the same period in 2003, strong performances posted in the previous quarters, allowed the sector to post full-year growth of 5.06 percent.

The sector grew 7.94 percent in the first quarter, 4.53 percent in the second quarter and 7.25 percent in the third quarter.

"Despite the retreat or negative performance of the crops and the livestock subsectors in the fourth quarter, output increments were sustained in the crops, poultry and fishery sectors during the year," said Yap.

The major growth drivers were the crops subsector which expanded by 4.89 percent from only 2.83 percent during the same period in 2003.

Yap noted improved performances in palay and corn where production grew by 7.38 percent and 17.28 percent, respectively. Production of palay, the country’s major staple reached 14.5 million metric tons (MT) from 13.4 million MT in 2003, allowing the country to post a 94 percent self-sufficiency ratio in rice. Corn production went up to 5.4 million MT from 4.6 million MT in the previous year.

The other crops that recorded significant output expansions were banana, pineapple, tomato and rubber. Overall, the subsector’s contribution to agricultural production was 47.46 percent, equivalent to P383.2 billion at current prices, or a 16-percent increase in value of production in 2003.

The aquaculture subsector became a major growth driver in 2004, with production up by a hefty 17.9 percent to 17.14 million MT from 8.68 percent or 14.54 million MT in 2003. The subsector accounted for 23.44 percent of total agricultural output. Value of production improved 16.03 percent to P139.1 billion at current prices.

Despite the avian flu scare last year, the poultry subsector also posted a positive growth of 4.23 percent with chicken production up by 3.62 percent, chicken egg production up 7.92 percent and duck egg production up 4.7 percent. Duck production however, dipped 1.32 percent. The subsector accounted for 15.57 percent of 2004 agricultural output.

On the downside, the livestock sector which accounted for 13.53 percent of total agricultural output contracted by 0.41 percent. The drop was due to the decline in hog and cattle production.

Yap noted that average farmgate prices of agricultural commodities last year increased by 12.71 percent with top gainers such as the livestock, poultry, crops and fishery subsectors, enjoying higher prices of 27.53 percent, 15.10 percent, 10.43 percent and 6.01 percent, respectively.

The Department of Agriculture (DA) chief said 2005 growth projections are still being assessed in view of the expected slowdown in the first quarter as the farm sector attempts to recover from the destructive typhoons that hit the country‚s farmlands last November and December.

Yap said however, that early mitigation measures to cushion the El Nino phenomenon, implemented as early as September last year, will enable the country to increase palay and corn production in 2005.

Thus, palay production is projected to go up to 15.1 million MT from 14.5 million MT in 2004, while corn production will increase this year to 5.7 million MT from 5.45 million in 2003.

Earlier, the University of Asia and the Pacific (UAP) projected a growth rate of 2.5 to 3.5 percent for the agriculture sector this year, lower than the DA’s projected full-year growth of 4.6 percent
-------
We'll see. :)

drwho

January 25th, 2005, 02:10 PM

its nice to see that "my" thread still lives on and you guys are taking care of economic news:) :)

amras

January 27th, 2005, 09:26 PM

Peso hits fresh one-year high at 55.15:$1
Investors pour dollars into RP

Posted 00:11am (Mla time) Jan 28, 2005
By Doris Dumlao, Juliet Labog-Javellana, Gil C. Cabacungan Jr.
Inquirer News Service

Editor's Note: Published on page A1 of the January 28, 2005 issue of the Philippine Daily Inquirer

"YAHOO!" President Macapagal-Arroyo yesterday shouted upon learning that the peso appreciated for the fourth straight day against the US dollar, the latest indication that foreign and local investors were giving her administration a new vote of confidence.

"The economy is on a roll ... The sense of turnaround is setting in," Ms Arroyo said in Malacañang during the launching of the country's first private equity fund-the $25-million Planters Bank-Aureou equity fund for small and medium enterprises.

The peso finished at a fresh 12-month high on Thursday, hitting 55.13 before closing at 55.15 against the dollar on the Philippine Dealing System. It was the strongest finish for the local currency since Jan. 6, 2004 when it closed at 55.11.

The volume of transactions also rose to $326.8 million from $270 million on Wednesday-another strong sign that foreign investors were pouring in dollars into the country. Analysts see the peso stabilizing at the 54 level within the first quarter.

The 30-company Philippine Stock Exchange Index-another barometer of business confidence-ended up 21.11 points, or 1.1 percent, higher at 1,991.39. The index is at its five-year peak.

What drove the local currency and stocks up was the news that foreign investors had scrambled to buy Philippine sovereign bonds this week after finding themselves underweight in the paper because a rating downgrade had turned out to be only one notch, not the two that many had feared.

The huge demand, with investors ordering more than five times the $1.5 billion on offer, enabled the Philippine government to price its largest single sovereign deal and spurred strong demand in the secondary market for the country's paper. The government had originally aimed for a $1-billion bond float.

The Philippines, Asia's most active sovereign bond issuer outside of Japan, priced the 25-year bond on Wednesday at a yield of 9.70 percent.

'Doing something right'

The bond sale came a week after international credit ratings agency Standard & Poor's downgraded the country's foreign-currency rating by one notch to BB-minus, citing a lack of urgency by the government in tackling potentially painful fiscal reforms.

Reuters quoted a source familiar with the bond offering as saying that investors viewed the Philippines as having navigated the worst of its difficulties, with the domestic economy performing well and rating agencies a little behind the curve.

"We must be doing something very right to get this kind of response from the international financial community,'' said Press Secretary Ignacio Bunye, who had been kept busy lately containing the negative impact of S&P's downgrade.

More positive news

Stock traders said investors were also cheering the government's swiftness in implementing fiscal reforms to address a yawning budget deficit and Ms Arroyo's appointment of three new members to her team of economic managers.

Shortly before dawn Thursday, the House of Representatives approved a measure raising the value-added tax on goods and services to 12 percent from 10 percent. A similar bill must be approved by the Senate before it is signed into law.

Earlier, Ms Arroyo signed the Lateral Attrition Act of 2005-a reward-and-penalty system to improve tax collection-and another bill that raised taxes on tobacco and liquor products. The three laws are part of her administration's fiscal reform package.

Stock traders said investors were also upbeat over the corporate earnings outlook this year and the peso's rise against the dollar.

"There are strong [dollar] inflows and favorable reaction to positive news coming from the passage of the VAT bill and [Ms Arroyo's] appointment of new economic managers bring new hope," said Roland Avante, treasurer of Chinatrust Commercial Bank Philippines.

Proceeds from SMC's borrowing

Avante said investors were pouring dollars into the fixed-income market, particularly government securities. Aside from the government bond float, proceeds from the $1.85-billion new borrowing announced by food and beverage giant San Miguel Corp. are likewise expected to boost the dollar supply in the Philippine Dealing System, adding fuel to the peso's strong rally.

Were it not for some intermittent dollar-buying, Avante said the peso would have easily breached the 55:$1 barrier and started trading at the 54-level.

Jose Emmanuel Hilado, president of foreign exchange association ACI Philippines and treasurer of BDO Private Bank, said the peso's appreciation to 54:$1 could happen any time-"not immediately but probably within the first quarter."

Round of applause

At the launching of the private equity fund for small and medium enterprises (SMEs), Ms Arroyo drew a round of applause from the crowd of bankers, investors and Cabinet officials, including the new appointees-Finance Secretary Cesar Purisima, Trade Secretary Juan Santos and Customs Commissioner Alberto Lina.

She said the country's economic fundamentals remained sound, citing the country's trade surplus of $333 million last November compared to the $193-million deficit during the same period in 2003.

"We must now bring the benefits of this macro-economic performance to the average Filipino,'' Ms Arroyo said. One way, she said, is to support the growth of SMEs.

"Small and medium entrepreneurs have proven the capacity to turn their capital around in the shortest period of time and create jobs,'' she said. "This private equity fund complements the government's training programs on trade and entrepreneurship, skills development and product design.''

The Philippines' budget deficit is expected to narrow slightly to P180 billion, or 3.5 percent of gross domestic product this year, from P186.1 billion, or 3.9 percent of GDP in 2004, due to higher fees and charges by state agencies.

US and European buyers took 35 percent each of the Philippine government's bond float. Singapore investors accounted for 16 percent, Philippine clients took 10 percent and the remainder went to Hong Kong customers. By investor type, asset managers accounted for 74 percent, banks 13 percent, insurance companies 4 percent and retails 9 percent.

Citigroup, Deutsche Bank and UBS were the joint bookrunners on the deal.

The government plans to borrow another $3 billion this year to finance its budget deficit and support the operations of ailing National Power Corp.

stephencua

January 28th, 2005, 01:34 AM

:applause: :applause: :applause:

lets hope and pray that 2005 is the start of our country's return to greatness..

ryanr

January 31st, 2005, 01:53 PM

Semiconductor exports up 13.5% last year, exceeds target
By MARICEL E. ESTAVILLO, Reporter
The country's single biggest exports drawer, the semiconductor sector, grew 13. 5% last year, exceeding the revised industry target of 10%.

Total semiconductor exports, which contributes over two-thirds to the country's total exports, is pegged at P67.1 billion, higher than the P59.1 billion and P57 billion net exports values registered in 2003 and 2002, respectively, the National Statistical Coordination Board said Monday.

The semiconductor sector comprises almost 80% of the country's semiconductor and electronics industry, with 89 export players and with an employment capacity of 30,108.

Socioeconomic Planning Secretary Romulo L. Neri said in a press conference that the increase is the result of the turnaround in the semiconductor and electronics demand worldwide.

Last year, both the global and the local semiconductor and electronics industries were expecting the market to pick up, after years of experiencing a global market slump.

The industry follows a cyclical period of upturn and downturn, which on the average spans from two to three years.

Industry association Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) has revised its 2004 exports target from 15% to 10% in the second half of last year as the industry grappled with concerns of rising price of oil, the uncertainty because of the November election in the United States, and the unstable US dollar.

Earlier, SEIPI president Arthur S. Young Jr. said the economics of the local electronics and semiconductor industry is changing. Instead of deep recession, the industry is now experiencing shorter periods of downturn and upturn, a good indicator for rapid recovery and minimal negative impact to the market.

However, Mr. Neri said the government is expecting a moderate exports growth of between 8% to 10% by year-end, with the semiconductor sector to replicate the slowdown.

The forecast is grounded on negative global indicators such as the steady rise in the price oil and the continuous heating up of China's demand for raw materials, particularly steel and wood, pushing prices to rise.

SEIPI's growth forecast for 2005, on the other hand, is pegged between 5% to 10%.

Mr. Neri said a number of positive factors will cushion the economy from experiencing the worst this year. He said the government is now addressing the key bottlenecks to investment in the country, which are infrastructure and corruption.

Major projects for roll out this year are the P27 billion Subic-Clark toll road; the P10 billion South Luzon Extension; the $503 million Northrail project; and the P5 billion Subic Port.

To address the corruption issue which prevents investors from coming in, Mr. Neri said the government through the Bureau of Customs will install X-ray machines in the ports of Manila, Cebu, Subic, Batangas, and the Manila International Container Terminal.

Other anti-corruption projects are the Bureau of Internal Revenue (BIR) computer-assisted audit programs to reduce tax evasion on value-added-tax (VAT) and corporate income; the circular from the Bangko Sentral ng Pilipinas (BSP, or the central bank) requiring the submission of income tax returns when applying for loans; and the e-procurement initiative of the government, which provides a more open, transparent, and competitive environment through online bidding.

Last year, total investments from semiconductor and electronics industry reached $442 million, an increase from the $230 million and $270 million worth of investments registered in 2003 and 2002, respectively.

ryanr

January 31st, 2005, 01:56 PM

Businesses see "moderate outlook" for 2005 -- MBC study
The business community's outlook on the Philippine economy is somewhat tempered for 2005, notwithstanding the strong economic growth in 2004.

Based on the January 2005 Executive Outlook Survey the Makati Business Club conducted this month with 70 respondents, almost 40 percent of senior business executives believe that the country's GDP growth rate will slow down this year.

The number of respondents represent close to ten percent of MBC's membership, the business group said in a statement issued Monday.

In the same poll, over a third of respondents project the economy's growth will remain the same as last year. Only 23% expect the economy to grow faster than last year.

This even as the government said Monday that the country's domestic economy grew 6.1% in 2004 from 4.7% in 2003.

The cautiousness seems to be partly anchored on the forecast for inflation and interest rates. Inflation rose to 5.5% in 2004 from 3.0% in 2003.

About 73% of executives polled expect a higher inflation rate this year.

Another 76% predict a higher average rate for the interest rate benchmark, the 91-day Treasury bill. The 91-day T-bill rate rose to 7.352% in 2004 from 6.034% in 2003.

And inspite of the appreciation of the peso early in the year, 60% expect the peso-dollar rate to depreciate 5.6% over the next 12 months.

While prospects for investments and trade remain positive in 2005, the mood is not as bullish as in 2004. The number of executives expecting higher investments and growth in exports and imports is running considerably lower than at the beginning of 2004. Nearly 46% expect higher investments in 2005. Another 53% forecast higher exports this year while 60% likewise project higher imports.

CORPORATE OUTLOOK

The corporate earnings reports for the full year will be somewhat tempered for many companies.

In the July 2004 survey, the vast majority from 75% to 87% expected revenue and income growth in 2004. That number has dropped significantly in the January 2005 survey to only 44% to 57% expecting gross revenue and net income growth.

It should be pointed, though, that among the companies expecting a rise in revenues and income, those increases are expected to be dramatic. Notwithstanding that, most companies have downgraded their own net income expectations for net income for 2004.

The MBC Executive Outlook Survey is conducted twice a year among its members.

Looking ahead to 2005, 73% of respondents project corporate revenues to grow at an average of 15.6% while 60% expect corporate net income to grow at an average of 27.2% on a year-on-year basis.

The outlook for labor should remain reasonably stable. Sixty percent of respondent companies plan to hold their current workforce size steady -- compared to 64% in July last year -- while over 27% will expand their workforce. On the other hand, close to 6% plan to layoff or downsize their workforce this year.

The outlook for investments is also fairly moderate. Only 47% of respondent firms plan to make additional investments this year, compared to over 71% last year. However, the average investment will be significantly higher than year-ago levels.

One factor behind the moderate investment activity may be the drop in capacity utilization rates for manufacturing companies, the MBC said. Manufacturers in the survey reported a decline in the average capacity utilization rate to 67.8% in end-December 2004 from 76.9% in end-May 2004.

GOVERNMENT PERFORMANCE

Business executives continue to rank the Bangko Sentral ng Pilipinas (BSP, central bank) and the Department of Trade and Industry as the two top performing government agencies in the past six months.

The Department of Social Welfare and Development and the Department of Foreign Affairs ranked third and fourth. The Department of Agriculture and the Department of Budget and Management were tied for fifth place. Both DFA and DBM improved their ratings while DA dropped two places to fifth.

The House of Representatives, Senate, Department of Public Works and Environment, Department of Public Works and Highways, and the Commission on Elections were all ranked to worst performing agencies of government in the last six months.

The most improved government agency in the past semester was the Department of Budget and Management, which rose from No. 17 to No. 5 in the survey and saw its net satisfaction ratings rise from 11.5% in July 2004 to 38.6% in January 2005.

The government agencies whose net scores deteriorated the most were the following:

the Department of Tourism (down 60.3%),
the Supreme Court (down 36.6%),
Armed Forces of the Philippines (down 36.1%),
Department of Environment and Natural Resources (down 29.4%), and
the Metro Manila Development Authority (down 29.3%).

DEVELOPMENTS AND ISSUES

The semestral survey regularly tracks developments and issues over a 6-to-12 month window. Among the major developments cited in the second half of last year were the government's decision to expropriate and operate NAIA 3, the passage of the sin tax law (RA 9334), the Supreme Court's reversal of its ruling on the Mining Act, peace and order, and political stability. The government has promised to open the airport within six months and has also pursued other tax measures in order to bring the fiscal position into balance over the next several years.

Among the major issues which businessmen were asking the government to immediately address were revenues and the fiscal deficit, graft and corruption, peace and order, infrastructure, and investments.

ABOUT THE SURVEY

Close to 79% of respondents belong to top management positions. More than 67% of respondents are Filipinos.

By industry, over 49% of respondents' companies belong to the services sector, while close to 16% are in the manufacturing sector. By company size, 36% reported annual revenues of P1 billion and over, 21% had between P500 million to P1 billion in annual turnover, and 19% had less than P100 million.

In terms of employee size, more than a quarter have less than 99 employees, while more than 24% employ between 100 to 299 people, close to 19% over 1,000 employees, almost 13% between 500 to 999 employees, and more than 11% between 300 to 499 employees.

SKYLINEPIGEON

February 1st, 2005, 08:04 AM

GDP grows 6.1% in 2004
By Marichu Villanueva
The Philippine Star 02/01/2005

The country’s economy grew 6.1 percent in 2004 — the highest growth rate since 1996 — and President Arroyo gave credit to small and medium enterprises as well as young professionals at call centers for attracting investors into the country.

The gross domestic product (GDP) growth exceeded government forecasts of 4.9 to 5.8 percent, according to figures from the National Statistical Coordination Board (NSCB).

"The NEDA (National Economic and Development Authority) will officially report to our nation that our gross domestic product grew by 6.1 percent in 2004," the President said, adding that she was "delighted" with the growth figures.

GDP represents the country’s total annual production of goods and services, minus overseas remittances.

"This is our highest since 1996 and shows the resiliency and capacity of our people to overcome crisis, work hard and keep on track to a better future," Mrs. Arroyo said in a statement.

Romulo Virola, NSCB secretary general, said the services sector was the best performer, growing 7.3 percent from 5.8 percent in 2003.

In a statement, the NSCB said agriculture, fishery and forestry grew 4.9 percent, up from 3.8 percent in 2003, while industrial growth rose to 5.3 percent from 3.8 percent.

"Services, which accounted for about 47 percent of total gross domestic product, contributed the most to GDP growth with 3.37 percentage points," the NSCB said.

"All of its sub-sectors posted accelerated growths in 2004. Top contributors to growth were trade, transportation, communications and storage, and private services.

"Industry accounted for about 33 percent of GDP and contributed 1.77 percentage points to the total GDP growth rate," Virola said in a statement.

The stock market reacted favorably to the news, with the composite index rising 0.25 percent to 2,019.56, its highest level in nearly five years.

"The growth rate was within expectations but the market is happy with a healthy gain for the economy despite high oil prices and rising inflation," said Lawrence de Leon of Accord Capital Equities.

Guillermo Luz, executive director of the influential Makati Business Club, said the growth rate was quite good, considering that "last year was perceived to be a bit of a difficult year."

"We had so many events," which could have hurt the economy, such as a series of destructive typhoons and uncertainty following Mrs. Arroyo’s victory in elections in May which the opposition had charged was due to cheating, he said.

Luz said the growth in agriculture had been "the big surprise," of the year, adding that this would greatly benefit the 30 percent of the workforce who are dependent on that sector.

However, Luz said growth was not likely to be as high in 2005, remarking that "the expectation is slightly more tempered for 2005 than for 2004."

"There is an expectation that inflation and interest rates will be higher due to the high price of imported fuel and the continuing budget deficit of the government which will force it to borrow more money," Luz explained.

Sentiment "is still bullish but not as bullish as last year," he added.

Speaking at the 14th anniversary celebrations of the Philippine National Police (PNP) at Camp Crame, Quezon City yesterday, Mrs. Arroyo said industry and services are picking up due to higher farm incomes and that overseas remittances are adding fuel to the country’s growth engine.

The Chief Executive lauded the "young professionals manning the various call centers and outsourcing firms" for their part in attracting investors.

"And I would like to thank specially our service sector, transport and communications, especially and our trade services for picking up, complemented by our support to boost micro, small and medium enterprises," she said.

Mrs. Arroyo thanked Congress for "putting our fiscal house in order" and the country’s farmers who managed to maintain high productivity despite the floods and typhoons late last year which destroyed large areas in eastern Luzon.

She also thanked PNP chief Director General Edgar Aglipay and the 115,000-strong police force for their vigorous campaign against criminals, which had also greatly helped in attracting investors.

"The rampart of our national security must be held firm as our economy grows," she said.

"Overall confidence in our nation lies in the full trust to the law. Our dedication as public servants to secure our people’s safety and protect (them from) their own scalawags, white collar or otherwise, must be unassailable."

Mrs. Arroyo said the picture of economic growth should further challenge Filipinos to work harder to sustain the positive developments.

"Our institutions are humming the tune of growth," she said.

"We, in the executive branch of the government, must do our share… the Congress and the Senate are doing their share who are addressing the challenge by keeping the food supply and price stable…," the President said.

Last week, the peso rallied towards 54 to $1 at the close of trading. — With reports from Christina Mendez, AFP

--------------------------------------------------------------------------------

amras

February 1st, 2005, 11:08 AM

Peso strengthens to P54 per dollar level
Posted: 4:56 PM | Feb. 01, 2005

Joel Francis Guinto
INQ7.net with XFN-Asia

(UPDATE) THE PESO appreciated to the 54-per-dollar level on Tuesday, on the back of positive news on the economy and the passage of priority tax measures, analysts said.

However, the peso closed at 55.000 after trading between 54.870 and 55.040 on volume of transactions worth 454.5 million dollars. It closed at 55.090 on Monday.

"There's a wealth of good news that made the Philippines a buy," AB Capital Securities research director Jose Vistan Jr. said.

"We are seeing more inflows, while oil companies are not buying dollars at the moment. Importers are also not hedging and exporters are not selling dollars," a dealer at a local commercial bank said.

"And there are more positive economic news for the market to digest. CalPERS has kept us in its investment list. ROPs (sovereign bonds) are rallying and spreads are tightening. Local interest rates are falling and our GDP growth is rising," the dealer added.

In a television interview, Bangko Sentral ng Pilipinas (BSP) deputy governor Amado Tetangco said upbeat news helped prop up the peso but also said its strength could be sustained only if the Congress passes more revenue enhancing measures.

President Gloria Macapagal-Arroyo recently signed into law the Lateral Attrition Bill, which will penalize government revenue collection agencies who fail to meet their targets and reward those who meet their revenue goals.

A bill seeking a two-percentage point increase on the ten-percent Value Added Tax (VAT) was passed at the House of Representatives and would be tackled at the Senate before the President signs it into law.

The California Public Employees' Retirement System (CalPERS), the biggest pension fund in the US, has retained the Philippines in its list of permissible investment destinations, Philippine Ambassador to the US Albert del Rosario said.

The decision was made after CalPERS's consultant Wilshire Associates gave the Philippines a passing score in its evaluation of the country's political and economic situation, del Rosario added.

CalPERS, the largest US pension fund with assets worth 172 billion dollars,has an estimated 85 million dollars worth of portfolio investments in the Philippines.

At Monday's auction, Treasury bill rates fell sharply with tenders surging after the government cut the fortnightly offer size to 12 billion pesos from 15 billion.

The average 91-day rate, which banks use in pricing loans, averaged 6.847 percent, down from the previous auction's 7.440 percent.

"I think the next target (for the dollar/peso) is 54.50 (and) 53 is also not a difficult target," a currency dealer said.

Central bank governor Rafael Buenaventura on Friday said there is a strong chance for the peso to gain more ground this year, "even better" than 54 to the dollar, if the government is able to deliver on its promised fiscal reforms.

ryanr

February 1st, 2005, 01:42 PM

Makati Business Club sees growth slowing

'Tempered view' of economy cited in Executive Outlook Survey
By FELIPE F. SALVOSA II, Reporter

Despite the glowing economic data released by the government, members of the influential Makati Business Club (MBC) expect economic growth to slow this year.

In its January 2005 Executive Outlook Survey, the MBC said the business community has a "tempered" view of the Philippine economy.

About 39% of senior business executives polled said growth in gross domestic product (GDP) will be lower than 2004. More than a third, or 35.7%, said GDP growth will be the same as last year while 22.9% said it would be better than last year.

The government yesterday announced that the economy grew by 6.1% last year, beating its target.

The biannual survey, conducted from Jan. 6 to 28, covered 70 respondents representing 9.5% of MBC's membership. Nearly 79% belong to top management positions and 67% of the respondents are Filipinos.

An overwhelming majority predicted higher inflation and interest rates for 2005. Seventy-three percent said inflation will be higher this year. Inflation grew 5.5% last year from 3% in 2003.

The benchmark 91-day Treasury bill rate, which went up to 7.352% in 2004, will also be higher this year, 76% of businessmen said.

Ignoring the peso's recent rally, 60% of the respondents said the peso will depreciate by 5.6% versus the dollar in the coming months.

The MBC said investment and trade prospects remain positive but "the mood is not as bullish as in 2004." About 46% expect investments to go up this year, 53% forecast higher exports, and 60% said imports will be higher.

The outlook for corporate earnings is "somewhat tempered for many companies."

Some 44% to 59% of those polled expect 2004 revenues and income to grow, significantly down from the 75% to 87% expecting growth in the previous survey last July.

"It should be pointed, though, that among the companies expecting a rise in revenues and income, those increases are expected to be dramatic. Notwithstanding that, most companies have downgraded their own net income expectations for net income for 2004," the MBC said.

For 2005, 73% of the respondents said corporate revenues will increase by an average of 15.6%. Sixty percent said net income will grow at an average of 27.2%.

The outlook for labor, meanwhile, remains "reasonably stable," the MBC said. Sixty percent of respondents expect to retain their work forces, slightly down from 64% in July. About 27% said they would hire more people this year, while 6% said they would downsize.

Forty-seven percent said they plan to pour in additional investments this year, lower than last year's 71%.

"One factor behind the moderate investment activity may be the drop in capacity utilization rates for manufacturing companies," the MBC said, noting that manufacturers in the survey reported a decline in the average capacity utilization rate to 67.8% in end-December 2004 from 76.9% in end-May 2004.

In terms of performance, the Bangko Sentral ng Pilipinas and the Department of Trade and Industry occupied the top two spots, with net satisfaction ratings of 68.5% and 61.4%, respectively.

They were followed by the Department of Social Welfare and Development (47.1%), Department of Foreign Affairs (45.7%), Department of Agriculture (38.6%), and Department of Budget and Management (38.6%). The Budget department was up from 17th while Agriculture slipped to number five from third place.

The worst performers were the House of Representatives (-82.9%), Senate (-75.7%), Department of Environment and Natural Resources (-62.8%), Department of Public Works and Highways (-58.6%), and the Commission on Elections (-51.5%).

Businessmen reacted favorably to the government's decision to expropriate Terminal 3 of the Ninoy Aquino International Airport, the passage of the "sin" tax law, reversal of the Supreme Court ban on foreign ownership of large-scale mining, improved peace and order, and political stability.

The respondents asked the Arroyo administration to address the revenue shortfall and the fiscal deficit, graft and corruption, peace and order, infrastructure, and investments.

ryanr

February 4th, 2005, 06:17 PM

Peso on 16-month high

By IRA P. PEDRASA, Reporter
Still riding high on the perception of renewed investor confidence, the peso yesterday capped a more than 16-month high to P54.68 against the dollar.

Emerging as the biggest winner among regional currencies, the peso maintained its upward trend covering at most a 23-centavo rally from yesterday's close. This is the local unit's highest value since October 20, 2003.

Even currency traders are one in saying that the resilience of the Philippine economy provided a major turning point for the market. "There is a strong shift in optimism besides the backing of a weaker dollar," said Jonathan L. Ravelas, Banco de Oro's market strategist.

At the Philippine Dealing System, the electronic currencies exchange, the peso averaged stronger by more than P0.14 to P54.772 from P54.914. It capped its lowest quote at its opening of P54.92.

It moved to as much as P54.67 in the morning following the brisk dollar selling of banks. After hovering at a wide P0.25 range, the unit finally moved a notch back to P54.68.

"The market is very active. The main proponent for this is still the improved sentiment for the Philippine economy," head of trading at the Union Bank of the Philippines Rovic de Guzman said.

Even the steady performance of the other regional currencies refused to affect the peso's aggressive rally. Others are taking cautious positions for the moment ahead of the Group of Seven nations meeting.

The total volume of transacted dollars reached $503.5 million against the previous $333.5 million following the volatile trading at the exchange.

"Whatever traders say does not matter anymore, it's really what the whole market thinks. It's the first time in a long time that we've been valued right," a trader from a foreign bank added.

The peso had a modest rally at the start of the year on a general weak dollar sentiment. Positive domestic factors ranging from the below-target budget shortfall to recent legislative action propped up the peso to touch the P54 levels however. In only a month's time, it reached a 2.43% appreciation considering its start of the year value of P56.155. The unit is even expected to touch P52 to P53 this year, the central bank said.

Also, the landmark ruling of the Supreme Court declaring the Mining Act as constitutional added to the positive sentiment of the offshore fund managers. This provided additional movement at the currencies exchange besides the so-called hot money coming in, traders said.

Only recently, a roadshow in Beijing generated as much as $1.3 billion in committed investments from Chinese firms. Australian firms have also committed to invest as much as $800 million.

"The consolidation for the past few days was only on the central bank's buying. But there are a lot of potentials for more inflows. Why not use the exchange while the dollar's cheap?" a trader from a local bank said. "The fundamentals are working for us," the trader added.

rmb

February 15th, 2005, 03:24 PM

OFW 2004 remittances $8.5B, highest in 34 years
Posted: 7:59 PM | Feb. 15, 2005

XFN-Asia

REMITTANCES by overseas Filipino workers (OFW) rose 11.8 percent year-on-year to 8.5 billion dollars in 2004, the highest level recorded since 1970, the central bank said.

The increase exceeded the government's forecast of 6 percent.

For December alone, OFW remittances reached 867 million dollars, it said.

In a statement, central bank governor Rafael Buenaventura attributed the better-than-expected inflow to the increase in the number of OFWs, mostly based in the US, Saudi Arabia, Italy, Japan, the UK, Hong Kong and the United Arab Emirates.

These inflows normally account for about a percentage point in the country's GDP growth rate, and serve as a second line of defense for the peso.

-------------
To all OFWs out there thanx a lot :) , but I think u can do more than that. Make it $10 billion this year Hehehehe.. :jk:

absent-minded

February 24th, 2005, 07:41 AM

wow, this thread hasn't moved for quite a bit... haha. here...

Japan investments in RP up 187%
Ronnel W. Domingo | Feb. 24, 2005 | Inquirer News Service

DIRECT investments from Japan rose 187 percent to P25.38 billion last year from P8.84 billion in 2003, as Japanese trade and business missions home in on the Philippines.

The Department of Trade and Industry said Japanese businesses went into the local manufacturing and service ventures, particularly in the areas of information technology, software development, electronics, chemicals, communications equipment, automotive parts and health care.

Trade Secretary Juan B. Santos said Japanese business sentiment on the country was still very positive and that the country's best comparative strength remained its world-class skills of workers.

Santos said the increased inflow of investments from Japan further encouraged the government to align and adjust policies to sustain the country's position as the preferred business location and platform of operations for foreign firms in general.

"The government has adopted measures that promote macro-economic stability; provides better infrastructure and support facilities; and encourages the growth of support businesses to provide locally sourced parts and supplies for investing companies," he said.

Santos added that more investments from and trade opportunities with Japan were expected to be realized after the recently concluded mission from the Kansai Economic Federation or Kankeiren.

Kankeiren groups businesses that are based in the city of Kansai such as Mitsubishi, Matsushita, Marubeni and Sanyo as well as the Japan Bank for International Cooperation.

ryanr

February 24th, 2005, 08:47 AM

What a big change. Thats awesome.

normandb

February 24th, 2005, 09:25 AM

renell

February 25th, 2005, 05:33 AM

Well that's not a surprise. Most probably the number of OFW's will increase, and so will that number.

amras

March 11th, 2005, 11:53 AM

Peso closes at fresh 19-month high vs US dollar
Posted: 5:34 PM | Mar. 11, 2005

Erik de la Cruz
XFN-Asia

THE PESO closed at a new 19-month high against the US dollar as the market anticipated further dollar inflows mainly on the back of foreign investor interest in SM Investments Corp.'s initial public offering (IPO), dealers said.

They said a generally weak dollar outlook and expectations of more inflows in the coming months, including remittances from Filipino workers overseas, could drive the peso even higher next week.

The peso closed at 54.13 to the dollar, after trading between 54.10 and 54.25, on volume of 219.0 million dollars. It closed at 54.25 Thursday.

It is the peso's strongest finish since July 25, 2003, when it ended at 54.01.

SM Investments, a conglomerate with interests in shopping malls and property development, is a minority shareholder of food and beverage giant San Miguel Corp., began offering its shares to the public on Friday. The IPO will run until Thursday next week.

Stock market traders said SM Investments' international offering was oversubscribed, reflecting foreign investors' bullish outlook on the economic and fiscal performance.

The company expects to raise about 29 billion pesos from an offer at 250 pesos per share. Its IPO follows that of Manila Water Co. Inc.

"Chartwise, the week's close at 54.13 continues to imply further tests towards the 53.80-54.00 levels in the week ahead," said Jonathan Ravelas, market strategist at Banco de Oro Universal Bank.

"The economic scenario is improving. The exports numbers are also looking good."

Merchandise exports in January grew by 15.4 percent year-on-year to 3.282 billion dollars -- the 14th consecutive month of growth -- as receipts from electronics rose at a double-digit rate, the National Statistics Office said on Thursday.

Ravelas noted that stock prices and the peso had been driven higher by speculation of more fund inflows from abroad in the coming months amid an improving economic scenario here.

On Thursday, central bank governor Rafael Buenaventura said remittances from Filipino workers overseas were also helping to push the peso higher.

He said remittances this year could grow as much as 10 percent from 2004, although the central bank is targeting growth of only 6 percent.

ryanr

March 12th, 2005, 11:33 AM

British firms eye opportunities in infrastructure, BPO sectors
CEBU CITY -- United Kingdom Ambassador to Manila Peter Beckingham yesterday said many British businessmen are interested to invest in the Philippines, particularly in medical tourism, construction, agribusiness, and business process outsourcing (BPO).

He also said one British company was already putting money in Davao's swine industry. "Its intention is more on the technology transfer," Mr. Beckingham said.

Another big British firm has expressed interest to build bridges for the government, he said.

Mr. Beckingham also said his government would want to help more Filipino nurses enter the UK, to join the 50,000 already there now.

But he still noted the need to further develop the local medical services sector, even if the country already has plenty of highly-skilled medical professionals.

In tourism, Mr. Beckingham said the Philippines should boost its campaign to draw more British tourists. Only about 100,000 British tourists visited the Philippines last year.

"I see no reason why Britons will not visit here. You have cheap hotel rates, the food is tremendous, the culture is wonderful, nice dive spots and good scenic views," he said.

Meanwhile, British investors already in the country are worried by graft and corruption, security issues, and government's unstable finances.

But Mr. Beckingham said investors were looking forward to the efforts of Finance Secretary Cesar Purisima and Trade and Industry Secretary Juan Santos. -- Jun P. Tagalog

absent-minded

March 12th, 2005, 08:49 PM

I came across this in the Asian City With Best Nightlife! (http://www.skyscrapercity.com/showthread.php?t=125232&page=1) thread... I couldn't find a Tourism thread, so I guess this is kinda related to GreyX's post...

good!
i vote for your manila my city seoul
i am seeing many strong advertisements of Philippines in many world-wide magazines these days

wow Philippines!

wow...! he/she's from Korea. could these be the ads Jude put up on the forums a couple of months ago?

absent-minded

March 16th, 2005, 07:57 AM

Worst Over For Philippines; Ratings Upgrade Likely - HSBC
Yahoo! News | Monday March 14 | 6:55 PM

MANILA (Dow Jones)--The worst is over for the Philippines, given its "fading" fiscal woes, which will likely prompt Moody's Investor Service to upgrade the country's credit rating later in the year, according to a visiting research analyst with HSBC.

HCBC's head of Asia-Pacific fixed income credit research Dilip Shahani told a news briefing here Monday that recent favorable economic and fiscal developments have reversed his view of the Philippines from negative three years ago to upbeat.

"We're not being super-bullish. We are just being practical," said Shahani. "The momentum is moving in the right direction."

Progress in fiscal reforms - including the enactment earlier this year of two tax bills and the likely passage of the key value-added tax bill in the weeks ahead - should enable the government to exceed its fiscal targets, he said.

"We are of the view that the worst is past the Philippines," he said. "More importantly, from the top-down approach typically employed by (credit rating) agencies, the positive changes at the microeconomic level have gone unnoticed."

Even without taking further steps, the government will see its revenues grow this year and the next, given the earnings growth momentum in various key sectors such as telecommunications, property, and banking, he said.

The revenue contributions of the country's two largest telecommunications companies, Philippine Long Distance Telephone Co. (TEL.PH) and Globe Telecom (GLO.PH), are expected to rise substantially because of increases in their incomes and the expiration of certain tax holidays.

Shahani warned, however, that the sustainability of the positive fiscal outlook on the Philippines hinges on the government's resolve in pursuing promised fiscal reforms.

Congress has approved two key tax measures: an increase in the tax rate on alcohol and cigarettes, and a system of rewards and penalties to improve the efficiency of tax-collecting agencies. The government is pushing lawmakers to pass other bills that will make it possible to reduce its dependence on borrowing and to balance the budget by 2010.

It was the large buildup in the country's public sector debt that prompted Moody's last month to lower the Philippines' credit ratings by two notches to B1 from Ba2.

"We think Moody's will reverse course and raise the Philippine credit rating by one notch," said Shahani. Other rating agencies are unlikely to revise their ratings on the country, he said.

Standard & Poor's Corp. in January lowered the country's credit ratings by one notch to BB- from BB, while Fitch in November changed its outlook to negative from stable, but kept its rating at BB.

HSBC cited other positive developments, including: evidence that the property market has bottomed out after undergoing a difficult time since the 1997 Asian currency crisis; a recovery in the banking sector; and the absence of immediate risk of a balance-of-payment crisis given that the country has been running current account surpluses for the past seven years.

In its report "Philippines Under the Microscope" presented to Manila-based reporters Monday, HSBC recommended "an outright investment" in Republic of the Philippines bonds due 2030 and bank sub-debts, particularly Metrobank bonds maturing in 2007 and 2008. The bank also recommends buying PLDT bonds if they trade in line with the sovereign bonds.
-----------------------------------------------------------------------------------
I hope the Bicutan jail thing doesn't ruin the recent positive sentiment on the country. and hopefully they get the VAT bills overwith soon because they've been kept hanging for quite a bit now. I wonder which version Congress will approve...

pau_p1

March 16th, 2005, 08:16 AM

well... even after the Bicutan Jail Seige, the Peso came out stronger to the Dollar.. with the highest rate since two years ago.. :D

normandb

March 16th, 2005, 09:27 AM

well... even after the Bicutan Jail Seige, the Peso came out stronger to the Dollar.. with the highest rate since two years ago.. :D

This is because the leaders of the abu sayyaf died in that siege ha ha ha so the president and the business community are happy and the peso appreciate.

tyronne

March 16th, 2005, 09:33 AM

that jail crisis was also featured in the local news here in SF, KTVU2

ryanr

March 16th, 2005, 11:29 AM

it was a top story in CNN.

anyways...great news that the "worst is over":okay:

mysaong03

March 16th, 2005, 08:08 PM

well, and also that most businessmen stayin here dont anymore see the situation unique to the phils, in other words, sanay na sila...:D

renell

March 17th, 2005, 05:21 AM

yeah... in the Philippines you see foreign businessmen or employees.. it's just like what mysaong said, either their immune, or just avoid it:D

ryanr

March 17th, 2005, 12:44 PM

true...the expats in the Philippines are fine with everything that happens in the country. And they say that it really isnt as bad as the media presents it. They are very much used to living in the Philippines.

absent-minded

March 23rd, 2005, 10:30 AM

Investments jump 355% to P3.18B in January
Lawrence Agcaoili | ABS-CBNNews.com | March 23, 2005

Investments infused by companies located inside state-run economic zones and private-owned industrial estates jumped 355 percent last January as more multinational companies set up shop in the country, the Philippine Economic Zone Authority (PEZA) reported Tuesday.

PEZA director general Lilia de Lima told reporters Tuesday that investments registered with the agency reached P3.18 billion last January or P2.48 billion more than the P699 million registered in the same month last year.

She said the government expects more investments from major sectors such as electronics, semiconductor and information technology to establish new plants or expand their existing facilities inside ecozones and industrial estates.

Statistics showed that investments infused inside ecozones and industrial estates surged 62.48 percent to P46.14 billion last year from P28.39 billion the previous year. This after the number of projects approved by the agency went up 26.23 percent to 308 projects last year from 244 projects in 2003.

The PEZA chief failed to cite a single big-ticket project approved by the agency last January as both multinational and local companies refused to make public their investments in the Philippines as this might jeopardize their business plans.

However, she noted that projects approved last January involved huge investments from expanding electronics and semiconductor companies. This despite the fact that some electronics and semiconductor companies have decided to transfer their facilities to China.

She also cited the IT sector and IT-enabled services as one of the fast-growing sectors in terms of investments as well as export earnings potential.

Companies locating inside ecozones and industrial estates registered with PEZA are entitled to fiscal and non-fiscal incentives such as income tax holiday, duty-free importation of capital equipment and raw materials, simplified import and export procedures, as well as 5-percent tax on gross income instead of national and local taxes.
-----------------------------------------------------------------------------------
good news... too bad they didn't mention some of the larger projects. I wonder if the FedEx relocation is included in there. a few other investment plans I read about recently are Honda's new motorcycle plant, Timex's expansion plans in Cebu, and this semiconductor manufacturer's expansion somewhere in Metro Manila. I dunno if any are with the PEZA though...

Thunderflip

March 23rd, 2005, 10:33 PM

Wow, another good news!

sandrin

March 23rd, 2005, 11:58 PM

From the Inquirer today, a leading Chinese glass manufacturing firm is planning tol invest a $300 million glass manufacturing plant in Subic Free port.
SBMA Administrator Alfredo Antonio said Wang Changlin, president of Hebei Jingniu, a major glass company in China, has considered plans to put up his firm's glass factory at the Subic Gateway District.

Click for more details:
http://news.inq7.net/regions/index.php?index=1&story_id=31473

amras

April 6th, 2005, 05:08 AM

ADB: RP GDP growth at 5% over 2005-2007, lower than gov't
Posted: 10:22 AM | Apr. 06, 2005

Cecille Yap
XFN-Asia

THE ASIAN Development Bank said it expects the Philippine economy to grow at around 5.0 percent for the three years until 2007, slower than the government's target due to weak investment inflows and worrisome fiscal situation.

The bank said the Philippine government's target of achieving 7.0-8.0 percent GDP growth by the end of President Gloria Macapagal-Arroyo's administration in 2010 may be "too high" as it does not see capital investments growing at the required high rate.

The Philippines' investment-to-GDP ratio and capital productivity remain at low levels, the ADB said.

"Given the current problems with the budget deficit and debt, which affect the government's investment capacity, and the poor investment climate, which affects the private sector's investment willingness, it will be difficult for the capital stock to grow by the pace required to achieve the targeted GDP growth rate," the ADB said in its Asian Development Outlook report released Wednesday.

"On more realistic assumptions, the growth rate for the next three years will hover at around 5.0 percent, below the government targets."

The ADB said it sees the performance of the agriculture sector decelerating in the next three years from a high rate in 2004 as a result of a less favorable weather condition forecasted for the period. Agriculture accounts for about a fifth of the Philippine economy.

Meanwhile, industry growth is also seen lower at around 4 percent, while the services sector is expected to maintain its high growth rate of close to 7 percent.

The ADB said last year that it is expecting a GDP growth of 5.5 percent for the Philippines this year.

The bank said personal consumption is seen rising by 5.0 percent and government consumption by 3.0 percent in 2005.

Exports are forecast to grow more slowly, at 7.5 percent compared with government's goal of an 8-percent rise, due to an expectedly weaker global economy and strong international competition. Imports are projected to expand by 6.5 percent.

The bank sees inflation this year hitting 6.5 percent, well above the government's target of 5-6 percent, given continuing high oil prices, wage rises and transport cost increases.

The country's fiscal situation will continue to be the key factor to be monitored in the next three years, ADB said.

Last year, the government was able to contain its budget deficit within the target, at 186.1 billion pesos or 3.9 percent of GDP.

This year, it set a lower deficit goal of 180 billion pesos, equivalent to 3.4 percent of GDP on the back of higher revenues from a series of tax measures it has asked Congress to pass.

"President Arroyo has set the tone for her administration's focus on fiscal consolidation... The next few years will show if there is the will to put the Philippines on a high-growth path," the ADB said.

absent-minded

April 11th, 2005, 07:27 AM

RP to get $960-M windfall from call-center industry
ABS-CBNNews.com | April 10, 2005

The country’s information technology-enabled services industry, led by call centers, is expected to rake in some $960 million in revenues this year, a 50-percent increase from the $640 million it generated last year, Senator Manuel Roxas III, in a statement said.

Roxas, chair of the Congressional Oversight Committee on the Electronic Commerce Law, also said that the call-center sector is projected to fully employ 96,000 Filipinos by year-end, an increase of 50 percent from 64,000 last year.

"Just to have an idea as to how fast and big the industry has grown, it is now generating foreign exchange equal to over 10 percent of the aggregate amount of dollars remitted by our overseas workers each year," Roxas said.

Call-center seats are expected to hit 60,000 by year-end, up 33 percent from the 40,000 seats at the end of 2004.

Five years ago, the call-center sector had only 1,500 seats, 2,400 employees and posted only $24 million in revenues.

Roxas, meanwhile, urged call centers to strive to innovate in order to cope with the growing global demand for their services.

"If call centers are having problems finding qualified full-time customer service representatives or agents, then they should start tapping the part-time labor market," Roxas said.

He said call centers would not have a problem getting qualified part-time employees willing to work for at least four hours daily.

"We have more than enough college graduates that are either unemployed, or partially employed and still actively looking for more work," Roxas said.

Call centers are looking to recruit some 3,000 agents and 300 supervisors every month.

However, at present, less than 5 percent of call-center job applicants get hired.

Roxas led the first IT-enabled services mission to the United States in 2001, when he was still secretary of trade and industry.

The mission paved the way for the entry into the Philippines of several US-based investors in IT-enabled services, including call centers and other business processing outsourcing (BPO) contractors.

In BPO, foreign-based firms, to reduce operating costs, turn over many back-office functions to contractors in offshore destinations such as the Philippines. Joel D. Pinaroc
-----------------------------------------------------------------------------------
awesome news...!!

stephencua

April 13th, 2005, 09:42 AM

the peso is again nearing the 53:1 rate.. i hope that it stays there and appreciates even further..

ryanr

April 13th, 2005, 11:38 AM

thats awesome...not only does call centers bring in $$$ from investment, it brings in important employment opportunities.

Francis20

April 13th, 2005, 12:38 PM

i just learned recently that Shell has established its "Shell Shared Services (Asia) B.V. - Philippine Branch" another back-office in the country. They occupy 2 floors of RCBC. They hired many people. And sent them to Texas for the training.

absent-minded

April 14th, 2005, 04:12 AM

Francis20

April 14th, 2005, 04:33 AM

not hubbing! it's called Shell Shared Services (Asia) B.V. Phil Branch. This is what they do: Provision of services in support of various accounting, human resources and other business related processing using IT-enabled facilities for other Shell companies operating in various parts of the world.

It seems like they followed what P&G did, and they hired so many people. most of which are new grads and they are well compensated. pero pagod naman daw.

Shell occupies 32nd and maybe 33rd, kc 2 floors of RCBC. Dunno yet which tower.

And...i did a research yesterday...and i found out that Caltex also did the same. They have their Shared Services office here in RP just before Shell's move. They are at the 35F of Yuchengco Tower. I know they occupied two floors as well, pero 35F lang yung na research ko. RCBC is almost 100% occupied na. Galing di ba? Caltex likewise hired accountants, preferably mga CPA. It was a good break for our fellow yuppies na nasa rank and file. They have a nice office, a well-established and stable company and good compensation.

highlander

April 15th, 2005, 03:44 PM

Posted 05:12pm (Mla time) April 15, 2005
By Joel Francis Guinto
INQ7.net

THE PERCENTAGE of Filipinos who are gloomy about their economic prospects in the next 12 months has risen to the highest level recorded since the Social Weather Stations began surveys on the topic in 1983, the organization said Friday.

The February 25 to March 10 study indicated that 34 percent of the 1,200 respondents were pessimistic about having a better quality of life compared to 30 percent in December 2004.

The same survey said those who were optimistic went down to 20 percent, matching the lowest record set in October 2000.

The survey had a margin of error of plus or minus 3 percent and a confidence level of 95 percent, the SWS said in a statement.

Net optimism or the difference between the percentage of optimists and pessimists was at negative 13. This is only the sixth time in SWS surveys that net optimism was negative.

The SWS said other incidents in which net optimism was negative were during the assassination of opposition leader Benigno Aquino in 1984, the corruption scandal involving ex-president Joseph Estrada in 2000, and the Iraq war in 2003.

In the same survey, 13 percent of the respondents said they went hungry at least once in the last three months, an increase from 11.5 percent in December.

The survey also showed that 48 percent considered themselves poor, the same figure recorded in December.

chymera00

April 15th, 2005, 06:33 PM

Composite index
April 8 Phisix
1,906.69 | 7.53

Stock market getting worse ... high interest rates and oil prices ...

Sou-jiro

April 20th, 2005, 12:54 AM

I just made this thread to discuss any business related matter...anything goes... :) :) ...whats a hot business opportunity these days in The Philippines??.....
what industry/sector is booming? what signs are there??...

whats are your view about mlms spreading in Our Homeland?...

who about our balikbayans?..Any plans on business once you return?...

how is the tourism doing?...
is there any opportunity there particularly to our kababayans?...kasi i see many foreigners operating tourism business in phils...

Are Government laws attracting more foriegn investors?...or pushing them else where...anything goes guys....

Philippine stock market??....is it really booming?..is there an opportunity...many of the top 100 in the top profit earners in Phils Stock Exchange in 2004 werent even filipino nationals.... :bash:

Also there are some forumers here such as I who are interested in investing in property in Philippines....some have already invested...is there really a boom?...is it sustainable....for how long...

Finally how competitive is Philippines compare to our neighbours...

pls give your opinion and keep it simple...all in one thread thanks :)

Lili

April 20th, 2005, 04:19 AM

Sou-jiro

April 20th, 2005, 05:03 AM

One thing I can say about MLMs, don't engage in it! When I visited the Philippines, I know of two people who got scammed by these fly by night operations. They'll bait you and once they get the bulk of your hard-earned savings (for some, lifetime savings) then poof! they're gone! My heart bleeds for those who got duped.

yeh u know what i was once an mlm member for only for a month...i regret it and i hope the people in it realise that this thing is immoral...i left it and its the best decision i made...i wont name the mlm here but its big in Phils..and even there in U.S. particullarly in California,....this thing must be close...i cant judge or speak for all mlm's....i dont know all of them but they are quite misleading.... :sleepy:

Looking back now ..i cant believe i joined it...i was foolish :bash: but anyway...never again..its full of lies and i actually saw a gathering they had and by my observations the member seem brainwash to success...ewan...!! its almost like a cult ..though its an understatement... :eek2:

buboy

April 20th, 2005, 08:45 AM

The Philippine economy exhibited sustained growth in the year 2002 and beyond after the Asian economic meltdown in 1997. The Gross Domestic product (GDP), All production sectors including manufacturing, agriculture, telecommunications and services performed strongly. The expanded VAT is expected to increase revenues for the Gov't.

Overall the industry grew strongly and the contruction industry rebounded after the fall in 1998. Personal consumption and expenditures increased thanks to increased incomes and sustainable inflation.

Foreign Investments is growing at a fast pace. Inflation is well balanced, employment and the labour market is also on the rebound. Of late, the Philippine Peso is showing signs of stability.

Sou-jiro

April 20th, 2005, 01:18 PM

normandb

April 20th, 2005, 02:03 PM

So for the Average Juan Dela Cruz...what are the best business opportunities?...where are the hotspots in the Country and what sectors?...In the Metro what business are popping up lately?...how about in our Provinces??,.

for small scale business the IN thing right now is internet cafe, bars and restaurant, Computer Dealership.

for mid scale IT Services and Business Process Outsourcing.

In provinces it is still agri-business but the good thing is most agri-products comes locally and not from import...

Sou-jiro

April 20th, 2005, 02:31 PM

Yeh internet cafe's are certainly numerous...theyre easy to spot anywhere...even in provinces you wont have a problem..

kennethologist

April 22nd, 2005, 08:26 PM

i am very much happy with our economy... pataas nanaman ang piso... na-realize ng mga gas companies na they can lower their prices... the hard part is the long wait we will be having before we feel these good news about our economy

Louman

April 22nd, 2005, 11:43 PM

The Peso went from 54.55 to 54.17 in one day. woo hoo!

chymera00

April 23rd, 2005, 07:11 AM

RP coffee export jumps 300% in Q1

MANILA, April 22 (PNA) – The country’s coffee exports sharply rose by about 300 percent to 1.22 million dollars in the first quarter this year from only 462,698 dollars in the same period last year.

Trade and Industry Secretary Juan B. Santos attributed the increase to the prevailing higher prices of coffee in the world market following supply constraints encountered by major coffee-producing countries.

“Brazil is pruning down coffee production due to seasonal crop rotation. Vietnam is suffering from the dry season while Indonesia promoted with the effects of the earthquake and tsunami disasters on its coffee production. These problems on coffee production caused world prices of coffee to rise to about 1,200 dollars per metric ton,” Santos said.

He cited the exports as a very important milestone for the Philippine coffee sector as this is the first time that shipments of this commodity breached the million-dollar-mark in just three months.

Of the total coffee exports, 1.216 million dollars worth of exports was in soluble/instant form with Japan (66.41 percent), Cyprus (13.74 percent), Greece (10.27 percent), Dubai (3.37 percent), Malaysia (2.26 percent), Thailand (1.53 percent), and Fiji Island (1.16 percent) as major destination countries.

The remaining 6,003.57 dollars worth of exports was in roasted form with the United States as the destination country.

“No less than 200,000 people depend on coffee exports and most of these people are farmers. The rest are employed by trader-exporters, millers, coffee processors of soluble and roasted coffee, shipping, forwarding, and port workers,” Santos said.

“We are pleased to note that majority of our coffee exports are those that are value-added,” he noted.

Higher value products have more local content and generate more jobs and significant foreign exchange earnings.

“This is beneficial for the country’s overall economic growth. This development will motivate our coffee farmers—who rely mostly on the orders of coffee manufacturers—to increase their farm production,” Santos said. (PNA)

chymera00

April 23rd, 2005, 07:20 AM

Fresh investments are pouring in for the mining industry (mostly exploration)due to Supreme Court decision of allowing 100% foreign ownership of mining firms. Outsourcing, Telecommunication and Tourism Industries ae also upbeat ...

Call centers are now beggining to plop long the provinces, which is a good thing. Considering the huge pool of english speaking labor force outside MM ...

Weeks ago the Stock Market was rallying and showing signs of "booming" it was about to breach the 2500 level when issues like 'Higher Interest Rates', 'Non-passing of VAT Bill' (Fiscal Crisis), and Higher Oil prices pulled it to 1800+ levels ... This just shows how volatile our economy is, I hope it returns back to the 2k level ...

bagel

May 2nd, 2005, 09:55 AM

I realize how pessimistic this sounds, but perhaps reexamining the numbers and being more honest with the data will be more helpful. In truth, fudging the numbers to show lower poverty is a massive injustice on the poor population in the Philippines. It's like saying they don't exist. We need to be able to see the problems in order to fix them.

This story was taken from Bulatlat, the Philippines's alternative
weekly newsmagazine (www.bulatlat.com, www.bulatlat.net,
www.bulatlat.org).
Vol. V, No. 11, April 24-30, 2005

Fewer Poor Filipinos? A New Trick Did It

Changing the average family size to 5 members may have reduced the
number of poor Filipinos, but it still does not change the true extent
of poverty in the country

By Joseph Yu
IBON Features, Vol. XI, No. 14
Posted by Bulatlat

IBON Features--If recently released official poverty figures are to be
believed, then the government is well on its way to solving the
poverty problem.

According to the National Statistical Coordination Board (NSCB), more
than 23.5 million Filipinos were living below the poverty line in
2003-- a decrease of 8% or almost 2 million Filipinos from year 2000
figures of 25.4 million poor Filipinos.

The number of poor families, however, did not change significantly:
from 4.1 million poor families in 2000 to 4 million in 2003. But this
could be due to the new average family size used by the NSCB in its
computations: five members from the previous six.

Changing methodologies

The NSCB estimated the magnitude of poverty in the country using an
annual per capita poverty threshold figure of P12,267 ($226.45, based
on an exchange rate of P54.17 per US dollar) in 2003. According to
these figures, an individual needs only P33.61 ($0.62) a day to meet
his or her minimum basic food and non-food needs. For a family of five
members, government economic planners believe a monthly income of at
least P5,111 ($94.35) is enough to sustain their minimum food and
non-food basic needs. Of this amount, P3,211.25 ($59.28) would be
enough to meet said family's monthly food needs.

But even a non-economist understands that these amounts will meet only
a fraction of a family's basic needs. According to IBON estimates, as
of December 2004, a family of six members needs at least P492.19
($9.09) a day to meet its basic food and non-food needs, or a minimum
monthly income of P14,765.70 ($272.58). In fact, the daily poverty
threshold for 2003 of P201.65 ($3.72) is less than half the estimated
average daily cost of living for 2003 of P450.14 ($8.31).

Thus, government's poverty threshold figures only obscure the true
extent of poverty in the Philippines. Comparing IBON's cost of living
estimates to the preliminary results of the 2003 Family Income and
Expenditures Survey (FIES) shows that almost 90 percent of Filipino
families are poor.

To further hide the real poverty picture, government also changed its
poverty measurement methodology. Under the old methodology using an
annual per capita poverty threshold of P11,605 ($214.23), there were
26.5 million poor Filipinos in 2000. But a new methodology reduced
this figure to P11,451 ($211.39), which allowed government
statisticians to report that there were actually 1.1 million fewer
poor Filipinos than was originally reported using the old figure.

But even the P11,605 ($214.23) figure was substantially reduced from
the preliminary poverty threshold figure released by the NSCB in 2002
of P13,916 ($256.89). Using that methodology, there were 5.2 million
poor families or 31.3 million poor Filipinos.

Demand for wage hike

The poverty threshold figures, low as they are, point out the urgency
of a wage hike for workers. NSCB figures show that annual per capita
poverty threshold in the NCR (which has the highest threshold figure
among the regions) is P16,796 ($310.06), which translates to a monthly
income of P6,998 ($129.18) for a family of five. This means that a
worker must earn a daily wage of P269 or $4.97 (for an average 26 days
of work a month) in order to meet his or her family's minimum daily
food and non-food needs.

This is just P31 more than the daily minimum wage of P300 or $5.54
(the P250 or $4.62 legislated wage plus P50 or $0.92 emergency cost of
living allowance). Not all workers receive the cost of living
allowance, hence they still earn the legislated daily minimum wage of
P250 ($4.62).

The daily poverty threshold of P280 ($5.17) for a family of six
(computed based on an average 30 days) is also just 46 percent of the
estimated daily cost of living in the NCR of P602.31 ($11.12) as of
December 2004.

Addressing poverty

The Arroyo administration has vowed to wage war against poverty.
However, it seems that government is bent on reducing poverty, not
through addressing the structural weaknesses of the economy, but
through the adoption of new poverty methodologies.

Although this may be sufficient for government's economic planners,
the ordinary Filipino knows that it takes more than a change of
methodology to reduce poverty and improve the lives of the people.

Poverty can genuinely be addressed only through the implementation of
a national industrialization strategy that would develop the country's
industries and create quality livelihoods for the majority of
Filipinos, rather than through the economic globalization strategies
that past administrations have been pursuing.

If government would continue on its current policy course, then we can
only expect the poverty problem to worsen in the years ahead. And
eventually, even changing methodologies would no longer be enough to
conceal the true extent of poverty in the country. IBON Features /
Posted by Bulatlat

IBON Features is a media service of IBON Foundation, an independent
economic policy and research institution. When reprinting this
feature, please credit IBON Features and give the byline when
applicable.

(c) 2004 Bulatlat ? Alipato Publications

highlander

May 3rd, 2005, 07:24 PM

Does anyone know what are the income brackets for classes A, B, C, D & E?

tyronne

May 6th, 2005, 03:31 AM

Philippine Peso hits the P53 level.

Php53.976=$1

source: BSP (http://www.bsp.gov.ph/)

Louman

May 6th, 2005, 05:40 AM

I wonder if it will go down permanently this time rather than go back up to 54 again like last time.

bustero

May 6th, 2005, 01:02 PM

Pulse Asia classifies economic classes as:

Total household monthly income
Class AB P100,001 and above
Class C1 P 50,001 – 100,000
Class C2 P 30,001 – 50,000
Class D P 7,001 – 30,000
Class E P 7,000 and below

Homes are classified into four (4) groups
as follows:
• Class AB (Upper class) - the most
affluent group whose homes and lifestyles
exude an obvious disregard for or lack
of economizing
• Class C (Middle class) - middle-class
households, whose homes and lifestyles
reflect comfortable living and the
capacity to indulge in a few luxuries
• Class D (Lower class) - households
who have some comfort and
means, but basically thrive on a
hand-to-mouth existence
• Class E (Extremely low class) -
those who evidently face great
difficulties in meeting their basic
survival needs

bustero

May 6th, 2005, 01:15 PM

Am not a big fan of IBON, I don't find them to be credible. When I was in UP bilingbili kami sa byline nila but as time went on and you start working and mature you really notice that their peddling a line and have an agenda when they espouse articles. In this case It's for a higher minimum wage.

bagel

May 6th, 2005, 01:27 PM

But I counter that there really is no such thing as a truly independent think tank or research group. All do have their own agendas. In the case of the article I posted above (which by the way I took from Bulatlat, a source that is clearly more social-justice oriented due to its indy-media roots and easily considered by some as left, idealist, perhaps anarchist, even communist at times) there is no hiding the fact that by lowering the standard for which poverty is measured, more people can be considered out of poverty. In the above article, IBON's clear agenda is to raise consciousness of a fudged poverty line. It does say that a wage hike is necessary, but its final admonition is aimed at the government for attempting to play with its own statistics. I think agenda or not, its quite transparent what lowering standards aims to do and quite clear that the government is getting imaginative in the way it truly represents poverty.

Like I said in my post above, the first step in fixing the problem is by representing the severity of the problem in raw numbers, and not sweeping it under the rug like the government tried to do by lowering its poverty threshold.

Lili

May 6th, 2005, 05:59 PM

Philippine Peso hits the P53 level.

Php53.976=$1

source: BSP (http://www.bsp.gov.ph/)

Dami na kasi naming remittances dyan eh. :jk:

sandrin

May 6th, 2005, 07:25 PM

Addressing poverty

Poverty can genuinely be addressed only through the implementation of
a national industrialization strategy that would develop the country's
industries and create quality livelihoods for the majority of
Filipinos, rather than through the economic globalization strategies
that past administrations have been pursuing.

I agree with this conclusion. Economic globalization is not the answer to alleviate poverty. Although economic globalization which includes Call Centers, BPOs and other multinational manufacturing companies can help create more jobs, it only responds to the employment situation of the country particularly in the cities. And there is no guarantee that these companies will stay for a long term basis. Other countries are desperately clamoring to get a piece of the pie too. Remember during the Asian crisis, most multinational companies did streamlining, closed most of their manufacturing plants in the Philippines and relocated elsewhere, where they were assured of cheaper labor, and a more stable government policy, like China, Vietnam etc. in lieu of the free trade agreement. We were caught off-handed by that. (Sorry to them but the Filipinos produce more quality goods and services).
Therefore we also need to establish and strengthen our own local retail brands not only to create more jobs but to be assured of that jobs, and to minimize our dependence on imports. I read a study that amongst Asean countries, the Philippines produces one of the lowest number of local retail brands. Our small and medium scale industries, though thriving and now being expected to expand, are but only a few.

Poverty thrives largely in the provinces. The provinces have all the natural resources including labor from our hardworking farmers, to provide the basic needs of the constituents. But unless the government supports the development and production of these natural resources, these will all go to waste. In the past, we produced surplus of agricultural products. We used export not only sugar, but also rice, coffee, fruits, and whatnot. Now we import rice, our staple food, also corn and vegetables. Thankfully our chicken industry was not affected by bird’s flu as we became an alternative exporter to Japan and other countries.
However, a glimmer of hope shines on the horizon. As of late, the provinces are getting support and catching up on agricultural industrialization. The rice, corn, coffee, seafoods and other industries are being revived. It is reported that the agri-production yields are expected to increase with the help of biotechnology. Biotechnology is not new to us, we have IRRI, Seafdec, Coastal Resources Management and Agricultural colleges and Universities that conduct quality researches. They only need to reach out to farmers and continuously educate them. I just hope that the land reform program will be fully implemented and the idle lands of hacienderos be awarded to the poor farmers. It will reduce the incidence of people from the provinces relocating to Manila as squatters hoping to get menial jobs, if there's any at all.

We also have rich energy deposits, gas and geothermal energy. I believe we are second to the US in utilizing geothermal energy. Yet, ours is not fully utilized, the reason why a bill has been passed to classify geothermal energy as a mineral (in mining) to attract foreign investment.
It is reported that we can even surpass the US in geothermal energy utilization once the program is fully implemented. What about solar energy. Although the equipment is expensive, we get endless supply of sunrays which is free. I believe only a few households take avail of that at the moment. And wind energy, a Dutch company has started setting up wind mills in the Northern part of the Philippines and doing feasibility studies to other provinces. Add all these up and it will lessen our dependent on oil import which drives up the prices of basic commodities.

We also need to catch-up on software technology and computerization. I can talk endlessly but I’m so hungry right now. OK later when I’m in the mood again.

amras

May 6th, 2005, 09:25 PM

actually the government now is trying to support our small-to medium scale indutries... so that means the government is now realizing how important our local markets are. however, the government cannot give full support to our own industries if they dont have the means and budget to do so. this is were foreign investments come in. these jobs that foreign investors offer can be a source of income for the government and more money to build infrastructures to support our industries, and give loans to those who wants to start their own business. so we cannot deny the fact that globalization is important too.

Skyblade

May 6th, 2005, 11:28 PM

Procter and Gamble plans to make Philippines its Asia manufacturing hub

MANILA (AFP) - Procter and Gamble said it will invest around 10 million dollars annually in the Philippines over the next three years as part of plans to make the country the Asian manufacturing and service hub of the US consumer products giant.

Procter and Gamble intends to make the Philippines the regional source and exporter of its paper products, soaps, dishwashing liquids and detergent products to other Asian countries, a company statement said.

The statement followed an announcement from President Gloria Arroyo's office that the company had pledged to invest an additional 1.5 billion pesos (27.8 million dollars) in its Philippine operations, some of which will be used to expand capacity at its manufacturing plant in Cabuyao town south of Manila.

Procter and Gamble said it also intends to expand the operations of its Manila Service Center by providing support services like accounting and information technology to more of its operations worldwide, including Eastern Europe, the Middle East and Africa.

"We are one of the largest producers of consumer goods in the Philippines and probably one of the few to export consumer goods to other countries. Obviously, this has a very positive impact on our employment and with our suppliers," the company statement said.

sandrin

May 7th, 2005, 12:43 AM

It's a welcome development that P&G investment is coming back. Now they realize the importance of Filipino services. The Manila Service Center is a BPO, right?
I remember when Colgate Palmolive manufacturing plants relocated to Thailand or other Asean countries leaving only the shipping and receiving office in Pinas, most of the competitive Filipino big bosses resigned and got high profile jobs in Globe and PLDT, when the mobile phone services were just starting to boom. They turned down the opportunity to work as an expat in other Asian countries. The bosses made the right choice in my opinion.
The same thing happened with J&J when they relocated their R&D center in Australia, and some manufacturing companies in other Asian countries. The genius Filipino R&Ds turned down the Aussie and Asean jobs. They moved to Unilab a Filipino-owned pharmaceutical and beverage company.
Just last year, Unilever closed one of their soap manufacturing plants. Methinks it's a big mistake.

sandrin

May 7th, 2005, 01:54 AM

Arroyo visits Clark to inspect $105.5-M expansion project of tire company
By FRED ROXAS

CLARK ZONE, Pampanga — President Gloria Macapagal Arroyo arrived here yesterday to inspect the $105.5 million on-going expansion project of Yokohama Tire Philippines Inc. and inaugurate the $3-million atrium of Cyber City Teleservices Ltd.

The President led in the ribbon-cutting rites at the newly constructed atrium of Cyber City which will soon hire 1,500 more call-center agents and programmers to complement its present work force of 2,400 employees.

After visiting the newly installed state-of-the-art tire manufacturing machinery at Yokohama, President Arroyo motored to Cyber City and led in the ribbon-cutting ceremonies for its atrium which is part of the tire firm’s $3-million expansion program.

The on-going expansion of the plant of Yokohama costing P5.8 billion was designed to increase its daily production from 9,000 to 20,000 tires starting this October.

President Arroyo held a short conference with some local officials, who included Mayors Marino Morales of Mabalacat, Pampanga and Carmelo Lazatin of Angeles City and former Angeles City councilor Alex Cauguiran, political attaché of the Office of External Affairs in Los Angeles, California.

The Chief Executive commended the managements of Cyber City Teleservices, Ltd. and Yokohama for generating employment at Clark zone.

Cyber City, a pioneer call center at Clark which started with 30 employees in 1999, announced that it has 1,500 job openings for college graduates who are proficient in the English language.

Applicants are required to undertake four-week orientation training and on-the-job training during the fifth week. After that they would be hired as provisionary and then as regular employees with R8,000 to P10,000 basic pay every month.

Regular employees are entitled to one free meal daily and 10 percent salary increase every year.

Cyber City at Clark will continue undertaking expansion projects to support President Arroyo’s job generation program, an executive said.

Yokohama also has started hiring 600 additional workers for its expansion program.

Bert Lina, Bureau of Customs commissioner, said that the Yokohama expansion program came after assurances to lower the tariff rates on imported raw materials.

Sou-jiro

May 7th, 2005, 02:44 AM

And i think the call center of citigroup in brisbane australia is gonna move and outsourced in.... "maybe has already moved to makati"?.....i read an article about it with some filipino here even getting the chance to relocate in makati!..KOOL!...

ryanr

May 7th, 2005, 06:09 AM

:eek: Wow...great news. Those are big investments from P&G and Yokohama!

absent-minded

May 7th, 2005, 11:30 AM

awesome news on P&G and Yokohama!

umm, did P&G ever totally shut down manufacturing in the country, like the other multinationals sandrin mentioned?

anyways, even more investments on the way...! this one's pretty big too, although it may not generate as much employment as manufacturing and BPO investments.

Petron commits $350M in investments
INQ7Money | May 7, 2005

LIMAY, Bataan -- Oil industry leader Petron Corp. has committed to invest $350 million in the next five to eight years in several projects that will strengthen its refinery operations and expand its product base.

The publicly listed company, partly owned by the government and partly by Saudi Aramco, is preparing for future business opportunities in both domestic and international markets, Petron president and chief executive Khalid Al-Faddagh said Friday.

"We have a bigger vision for the business so we're planning ahead," he told reporters. "Our master plan, which still has to be evaluated, will need around $350 million."

The projects in the master plan will have to be evaluated for their "economic merits, viability and ensure that they will complement each other," he said.

But he said the $350 million in investments was a firm commitment.

In the next five to eight years, the projects in the master plan will be implemented based on a timing scheme that will complement the existing business, Al-Faddagh said.

He said these projects aimed to upgrade and modernize the Petron refinery and create a specialty refinery stream that could be sold in markets outside the Philippines.

One project involves taking the residues from fuel refining and processing them into products for can export, he said.

"We need to start with units that will give us the highest returns," Al-Faddagh said. "We're not just looking at retail."

He added: "We've decided to stay and modernize our refinery. There are so many opportunities that can be created."

Petron inaugurated $100 million worth of new facilities at its refinery in Bataan province, northwest of Manila, making the company the first in the country to produce fuel compliant with the Clean Air Act (CAA).

Its new Gasoil Hydrotreater (GOHT) and Light Virgin Naphtha Isomerization unit (Isom) have the capacity to produce 22,000 barrels and 10,000 barrels a day, respectively, of CAA-compliant diesel and gasoline.

When the CAA was passed in 1999, Philippine oil companies had to import finished products or blend components to comply with its stringent production specifications. With INQ7.net

sandrin

May 7th, 2005, 06:58 PM

For all I know, the Australian and Canadian travel warnings have hidden agenda. They also want to get a big piece of the pie from P&G and other United States BPO and Call Center investments but the investors chose the Philippines instead. They are up to tarnish the Philippines' image by issuing unfair travel warning to scare away tourists and investors. They are paranoid about the attractiveness of english-speaking abilities of the Pinoys and the cheap-cost of labor and services here as compared to theirs'

-----------------------------------------------------------------------

"The Philippine government is committed to improving security... and combating terrorism. Security agencies have made a number of important arrests of suspected terrorists but the risk of further terrorist attacks and kidnappings remains," the advisory stated.

For its part, Malacañang disputed the latest travel advisories yesterday, pointing out the information cited was "rehashed and outdated."

"It seems the Australian government has based its renewed warnings on rehashed, outdated intelligence reports," Presidential Spokesman Ignacio Bunye said.

"The threat of terrorism still remains, as anywhere else in the world, but we have posted significant gains in flushing out terrorist cells and reducing their capabilities to launch attacks," he said.

Bunye pointed out the gains made by the government in the war against terror had prompted the international community to elect the Philippines to head the anti-terrorism body of the Asia-Pacific Economic Cooperation (APEC).
‘Advisory Unfair’
Lawmakers, for their part, scored the new travel advisories, particularly citing those of the Australian government warning of a high probability of terror attacks in the Philippines.

In a joint statement, Cebu Rep. Antonio Cuenco and Bulacan Rep. Lorna Silverio said the travel advisory "was unfair and only causes damage to the country’s tourism opportunities and investment prospects."

They said the travel advisory was unnecessary since the last terror attack during Valentine’s Day was immediately followed by the arrest of the suspects who have since been charged in court.

Cuenco and Silverio said terror attacks could occur anywhere and are "a fact of life even in First World nations."

Cuenco claimed Australia had a habit of issuing "computer generated" adverse travel advisories against the Philippines.

Cuenco called on the Australian ambassador to Manila to help out their foreign ministry and set things straight regarding the peace and order situation in the Philippines.

"Perhaps their embassy officials should better brief them on the real score, namely that authorities are taking the terror threat that has swept the globe very seriously, and there have been marked gains made in this effort," he said.

Cuenco urged the Australian government to be careful when issuing adverse advisories to prevent undue damage to the country’s tourism opportunities and investment prospects.

He said the Australian government should assess first the real situation of the country before issuing its travel warnings.

"Our fate as a nation is adversely affected by these wrong and unfair travel advisories," Cuenco said.

Silverio, for her part, said the travel advisory was untimely and unfair.

"In fact, despite warnings of terror attacks during Holy Week, we had a generally peaceful commemoration," she said. "Our police and armed forces are no longer complacent in dealing with any terror threat."

Silverio urged the Department of Foreign Affairs to update the various key foreign governments, including Australia, on the local peace and order situation to correct misperceptions about the country on the basis of past terror threats.

"The DFA should take the lead in assuring foreign governments that peace and order reigns in our country and our authorities are capable enough in dealing with any form of terror threat," she said. — With Paolo Romero, Delon Porcalla
-----------------------------------------------------------------------

normandb

May 9th, 2005, 12:06 AM

The Australians must learn how to move on and dont live on the 9/11 era.

mysaong03

May 9th, 2005, 02:22 AM

^^ twas issued just 3 weeks after a new australian amb. to manila assumed his post, in the name of tony hely, replacing the more relaxed & humble ruth pearce...sorta, pa 'buena mano'!!! ahehe....:(

612bv3

May 9th, 2005, 03:15 AM

A lot of people are paranoid. :no:

amras

May 9th, 2005, 05:44 AM

at least we know what's really going on... these people dont see the real picture and blinded by the past events..

Solblanc

May 9th, 2005, 02:38 PM

those travel warnings don't have much impact anymore, in my opinion. The damage has already been done.

simply_me

May 10th, 2005, 11:10 AM

i thought it really is unfair when i heard the news about that matter yesterday... as far as we Filipinos are concerned, we are still in a safer country... in fact, even here in Mindanao, which they claimed to be very dangerous for tourists, is very peaceful... pano naman kc, we have a lot to show the world, that is why..

Sou-jiro

May 10th, 2005, 11:37 AM

I dont care for these stupid travel warnings..one of my workmates told me he saw the news about that stupid travel warnings australia and canada did..........i just answered him and said..."if australia thinks Philippines is dangerous then why do they keep sending military enforment in Iraq?..infact some of the airforce doing bombing raids are from the australian airforce...which is more dangerous...how stupid!!.....i guess they're intimidated in terms of business investment as we can offer investors cheaper in terms of costs..its these countries..THE U.S. CANADA, AUSTRALIA...U.K.

sure i can invest my money here in Aust but i'd rather invest in Phils...i dont know what i'll get into yet...but im considering it in the very near future...

ewh1

May 10th, 2005, 11:11 PM

Sou-jiro

May 11th, 2005, 12:07 PM

well i saw it once on the news but thats about it...not much after that....so i hope is die's down quickly..

olineil

May 11th, 2005, 01:44 PM

Seriously.. No body in canada even knows there is a travel warning to the philippines. There is seriously no media coverage. Im not sure about Australia but thats how its like here. I didn't even know we posted one until i looked on here

I think you wouldn't know until your processing ur papers to go to certain countries...then your government will warn you if there is a warning.

Kiel

June 3rd, 2005, 01:25 PM

An economic update :D

Index breaks 2,000-point mark on improved prospects

The Philippine Star 06/03/2005

Share prices closed 2.35 percent higher yesterday and broke the key 2,000-point mark as improved fiscal and economic prospects for the country continued to underpin the market, dealers said.

They said the market had consolidated below the 1,900 level for several weeks, and investors saw the decline as an opportunity to pick up cheap stocks.

The Philippine Stock Exchange composite index rose 46.25 points to the day’s high of 2,010.56. It traded at a low of 1,964.31.

It was the composite index’s highest closing level since March 21.

Turnover reached 922.1 million shares worth P1.999 billion ($36.59 million).

The broader all-shares index rose 21.05 points to 1,211.62.

Gainers beat losers 60 to 21, with 44 stocks ending unchanged.

"We saw a continuation of the rally that begun early this week, driven by a more positive outlook on the economy," said Lawrence de Leon of Accord Capital Equities.

"They felt the market has been oversold, and given the positive outlook on the economy in the second half, investors felt it was time to take positions," he added.

On Monday, the government reported that the economy continued to grow in the first three months, albeit at a slower rate than before, despite rising oil and consumer prices and lower agricultural output.

Gross domestic product grew 4.6 percent from a year earlier, and the government said it is keeping its full-year gross domestic product growth forecast of 5.3 to 6.3 percent on hopes of an economic recovery in the second half.

2TradeAsia.com said the market’s positive momentum was helped by the return of foreign funds that took positions in fundamentally sound stocks.

"We believe listed shares have more room to benefit from international credit rating agencies’ affirmative stance on the country’s recovery story, having settled at a comfortable base during past sessions," 2TradeAsia.com said in an advisory.

Fitch Ratings last week upgraded its outlook on the country’s credit ratings to stable from negative after the passage of crucial tax measures aimed at addressing the country’s yawning budget deficit.

Top-traded SM Investments rose P2.50 to P252.50.

Philippine Long Distance Telephone Co. (PLDT) added P50 to P1,595.

Ayala Corp. fell P7.50 to P370 on profit-taking following recent gains. Unit Ayala Land gained 10 centavos to P8.10.

San Miguel A, limited to Filipino investors, gained 50 centavos to P59.50. San Miguel B, available to foreigners, was up P1.50 at P91.50

PCCI Securities President Francisco Liboro credited the market’s strong finish to a mix of technical factors and robust foreign demand. — AFP, AP

bagel

June 11th, 2005, 04:21 AM

The International Herald Tribune

Philippines debt increases 11.7%
By Jun Ebias Bloomberg News
FRIDAY, JUNE 10, 2005

MANILA The Philippine government debt rose 11.7 percent in March from
a year earlier, National Treasurer Omar Cruz said Thursday, as the
government borrowed funds to help plug this year's budget deficit.

The government sold $2.25 billion of bonds overseas from January to
May and plans to sell $850 million more by the third quarter of this
year.

Every week, it sells 6 billion pesos of Treasury bills with maturities
of up to one year and 4 billion pesos of bonds with longer maturities.

The debt rose to 3.87 trillion pesos, or $70.8 billion, from 3.47
trillion pesos in March 2004, Cruz said. Domestic debt rose 16.8
percent, to 2.06 trillion pesos, and overseas obligations increased
6.3 percent, to 1.81 trillion pesos.

The debt fell from a record 4.08 trillion pesos in February after the
government deducted about 196 billion pesos owed by Philippine
National Power, Cruz said. The government in January took on the
utility's debt to lure investors to buy its power plants and other
assets.

"We are removing Napocor debt to avoid double counting," Cruz said
Thursday. "The assumption of debt is neutral to the level of
government debt."

The debt has almost tripled from 1.35 trillion pesos in 1997, when the
government last posted a budget surplus. Debt costs take up a third of
state spending. The government is forecasting a deficit of 180 billion
pesos this year.

Standard and Poor's and Moody's Investors Service this year lowered
the Philippines' credit ratings, already below investment grade,
citing the mounting debt caused by deficits that started in 1998.

President Gloria Macapagal Arroyo plans to balance the budget by the
end of her term in 2010.

Inflation forecast raised

The Philippine central bank raised its inflation forecast for a second
time this year because of increased transportation costs and the
prospect of higher consumer prices resulting from changes to the
value-added tax.

Inflation could average 7.9 percent this year, said Edith Alido, the
central bank's head of research. The bank on April 29 raised its 2005
estimate to a maximum 7.3 percent, from a maximum 6.9 percent
estimated in March.

"The 7.9 percent average for 2005 reflects the impact of the risk
factors that we have referred to in the past such as the VAT and
transport costs," Alido said in a telephone interview in Manila.

Inflation might decelerate by the end of the year, she said.

Faster inflation may prompt the central bank to raise its benchmark
interest rate again this year, making it more difficult to stimulate
economic growth. The Philippine economy grew 4.6 percent in the first
quarter from a year earlier, the slowest pace in almost two years.

Arroyo last month signed a law to impose a value-added tax on fuel
imports and power producers. The value-added tax rate will rise to 12
percent from 10 percent next January.

The central bank in April raised its benchmark overnight borrowing
rate a quarter-point, to 7 percent, the highest since July 2003 and
the first increase in more than four years.

The central bank's deputy governor, Amando Tetangco, said on May 6
that policy makers might increase rates again this year because of
concerns that higher oil prices and wages could accelerate inflation.

The inflation rate held in May at 8.5 percent from a year earlier, the
same level reported in the previous three months.

The government is expecting the economy to expand as much as 6.3
percent this year, compared with 6.1 percent in 2004.

IHT Copyright (c) 2005 The International Herald Tribune | www.iht.com

KulasKusgan

June 22nd, 2005, 04:30 PM

nabasa ko sa Sunstar.Davao

A rich lesson on poverty
By Henrylito D. Tacio
Regarding Henry

IN THESE days of computer and Internet, you have all the information you want in life.

A couple of days ago, I was searching for something when I mistakenly clicked a story that teaches a lesson. While reading it, I thought of an article--"How to End Poverty" written by Jeffrey D. Sachs--which appeared in the March 14, 2005 issue of Time magazine.

"Until the lions have their historians," declares an African proverb, "tales of hunting will always glorify the hunter." Well, the history of the wealthy is impressive. Since 1990, the value of goods and services produced each year worldwide has grown tremendously. Commoners of the world's affluent countries "live like the royalty of yesteryear" and "elites literally live like gods."

Yet, the poor have a different tale to tell. The disparities in living standards that separate them from the rich verge on the grotesque. To cite one example: As water from a single spring in France is bottled and shipped to the prosperous around the world, nearly two billion people drink and bathe in water contaminated with deadly parasites and pathogens.

Today, nearly half of the six billion people around the globe are poor. But experts classify poverty in three degrees: extreme (or absolute) poverty, moderate poverty, and relative poverty.

Extreme poverty, according to the World Bank "is getting by on an income of less than US$1 (about P55) a day." This means that households cannot meet basic needs for survival. "They are chronically hungry, unable to get health care, lack safe drinking water and sanitation, cannot afford education for their children and perhaps lack rudimentary shelter--a roof to keep rain out of the hut--and basic articles of clothing, like shoes," explains Sachs.

The man who has guided countries from Bolivia to Poland through bad financial times calls extreme poverty as "the poverty that kills."

Sachs points out: "Unlike moderate or relative poverty, extreme poverty now exists only in developing countries."

What's moderate poverty? Defined as living on US$1 to US$2 a day, moderate poverty refers to conditions in which basic needs are met, "but just barely."

Being in relative poverty, defined by a household income level below a given proportion of the national average, means "lacking things that the middle class now takes for granted."

Now, here's the story that "inspired" me to write this piece: One day, the father of a very wealthy family took his son on a trip to the country; he wanted to show his son how poor some people could be. They spent a couple days and nights on the farm of what would be considered a very poor family. As they were returning home, the father asked the boy, "How was the trip?" "It was great, Dad," the boy replied.

"Did you see how poor people can be?" inquired the father.

"Oh, yeah," came the reply. "So what did you learn from the trip?" the father wondered.

The boy answered, "I saw that we have one dog, and they have four. We have a pool that reaches to the middle of our yard, and they have a creek that has no end. At night, we have imported lanterns, and they have the stars.

"Our patio reaches to the front yard, and they have the whole horizon. We have a small piece of land to live on, and they have fields that go beyond our sight. We have servants who serve us, but they serve others.

"We buy our food, but they grow theirs. We have walls around our property to protect us. They have friends to protect them."

Then, the boy concluded, "Thanks, Dad, for showing me how poor we are!" "Too many times, we forget what we have and concentrate on what we don't have," said the anonymous author of the story above.

"One person's worthless object is another's prized possession. It's all based on one's perspective. "Makes you wonder what would happen if we all gave thanks to God for all the bounty He has provided instead of worrying about wanting more."

For comments and feedback, write me at tasyo2002@yahoo.com.

bagel

June 22nd, 2005, 06:34 PM

Here's the transcript for an interview by the Financial Times of President Arroyo. The FT also published analysis of her current political problems and I posted the article in the Crisis of Philippine Leadership thread.

That article is here: http://www.skyscrapercity.com/showthread.php?p=4547203#post4547203

Interview transcript: Gloria Macapagal-Arroyo
By Victor Mallet
Published: June 21 2005 12:02 | Last updated: June 21 2005 12:02

The following is an edited transcript of an interview conducted by Victor Mallet, the FT’s chief Asian correspondent, with Gloria Macapagal-Arroyo, president of the Philippines, in Hong Kong on June 20.

FT: You’ve spoken of the “first stage” of your reforms. What is the next phase?

Macapagal: Well first let me say that the first phase was to raise the revenues needed so that we get out of the debt trap and begin to finance our development by our own resources. Now in the second phase we will continue to intensify our [tax] collection efforts, to [undertake] administrative improvements, to fight corruption, especially in the revenue agencies but even in other offices. We need to improve our infrastructure, and achieve energy independence, especially in these days of unprecedented oil price increases. We also need to improve social services for the poor that have been postponed for so long because we needed to have the funds to finance them unless they are borrowed.

FT: What do you mean by energy independence?

Macapagal: … Because our gasoline and diesel requirements are 99 per cent imported, we have to achieve greater energy independence and we are doing the following: after many years of no exploration permits we have signed new contracts for exploration in our own oil, gas and coal fields. We’ve also been working on renewable energy like solar energy, wind energy and geothermal energy, of which we are the second biggest producer of power in the world. And then thirdly we are also working on indigenous sources of energy like ethanol from sugar…

But we also have to work on energy conservation. The impact of high oil prices is such a bane on the world economy, especially the poor countries, and there’s very little we can do about that in the immediate term [other] than to blunt their impact by for instance conducting an energy conservation campaign and monitoring against price gouging. I’m also reducing the tariff on oil importation so that we can have some relief … I should have it in place before the end of this month.

FT:. Doesn’t that reduce impetus to conserve, and reduce government revenues? Essentially you’ll be making fuel cheaper

Macapagal: No, no, not cheaper than it was before, because energy is deregulated in our country and if the price of oil has doubled in the last year, certainly the price of gasoline has been going up as well…

FT: But it doesn’t help the budget deficit.

Macapagal:: But we’re getting more revenue though from the removal of exemptions – value added tax exemptions on power - so it’s just to mitigate it, not to offset it.… It’s also part of our international commitments. I raised tariffs on petroleum earlier last year because I didn’t have my [tax] legislation done yet. Now I have my legislation done I can reduce that again.

FT: Can you give a bit more detail on the implementation process for economic reforms?

Macapagal: …They [the Bureau of Internal Revenue] have been conducting lifestyle checks on revenue officials and we have had dozens dismissed or charged in court often because they failed these checks. The other [way] is going after tax evaders. Every week the Bureau of Internal Revenue is filing a case against a tax evader…

I’ve also asked Tony Kwok to be my adviser on anti-corruption. And as part of his work in being the adviser of the Philippine government and the Philippine ombudsman against corruption, he’s going to Manila in a couple of weeks for three weeks for this particular trip. He will be conducting workshops with the revenue agencies, the procurement agencies and the Department of Public Works. What he’s doing is replicating for the Philippines the work that ICAC had done in Hong Kong, which changed Hong Kong society from a very [corruption-ridden – word unclear] society to a very transparent society in seven years…

FT: All this is in a very difficult political context. A lot of people are very concerned that your political difficulties are going to make it very hard for you to achieve anything. How can you reassure people? Essentially people are saying, “Look, the president’s only been here for a year but already she’s a lame duck president with five years to go”.

Macapagal: I went through great political difficulties for the past four years. For the past four years they’ve been trying to drive me out of my position, they have been trying to oust me and during these past four years I’ve achieved very decent rates of growth, over 6 per cent last year. For the past four years I’ve been able to keep our exports up, for the past four years I’ve been able to have tourism booming, for the past four years I’ve been able to engage the region, the world, in a very, very heightened scale, expanding our trade with China and having a very good balance of trade surplus with them.

All this was done without the revenues that now I have. So I had political difficulties and no revenues, now I have political difficulties but I have revenues, and if I would exercise the political will over the past four years I have more wherewithal now to exercise such political will in the next five years.

FT: But how can you persuade people that the Philippines is a stable place? There are often rumours of a coup d’etat. Two years ago, when we met the last time, there was exactly the same thing. Is there a political reform that you can be a part of or implement that would accompany these economic reforms?

Macapagal: Well really for better or for worse, actually for the worse, there are two Philippines – one is the Philippines that works and one is the Philippines that doesn’t. One is the Philippines that works to improve the lives of our people, the other is the Philippines that works to destroy whatever we are trying to build up, and this has got to stop and I want one Philippines. And I want to do it by getting investments, by applying the rule of law, by fiscal consolidation.

And really there’s something terribly wrong with a system that is constantly trying to oust a sitting president… But I have great confidence in the military… I also have great faith in the cool heads of our people that they want to preserve a democratic way of life. Something indeed has to be changed in the system and in my medium-term Philippine development plan. I did call for a change in our constitution, for a constitutional convention…

In fact by agreement with Congress we were not going to talk about constitutional change in the first session because we had to address the revenue measures first which are very difficult to do and very unpopular and require so much political will and dedication. But now that’s been done and many, many of the investors say that they were surprised by how much more we achieved than we promised. Now in the next phase we can go into the constitutional reform.

FT: What do you envisage?

Macapagal: I envision a parliamentary form of government that moves towards federalisation as well and I’m calling for a constitutional convention to work this out… From the beginning I said this – it’s in my medium term plan - but the first stage must be the fiscal reforms and I’m on track because we finished the fiscal reforms before the first session ended. Other people thought it was very delayed but it just seemed to be delayed because the debates were so contentious…

The presidential form of government where you have a separation of powers between the president and Congress, is a very, very difficult system… because the tradition is great independence on the part of the legislature, especially the senators, who are elected at large. There are only 24 senators. I was a senator. I know that we used to be called 24 independent republics. But in a parliamentary form of government you have a fusion between the executive and the legislature, therefore you have less gridlock…

FT: By federalism, do you mean decentralisation?

Macapagal: Yes, we are the second largest archipelago in the world next to Indonesia and you can see in Indonesia it’s also very difficult to have a unitary form of government in that kind of archipelagic situation. It’s very difficult to respond quickly to the needs of Mindanao from Manila and so that’s why it’s much better for you to have federalisation so that each state can have a great deal of autonomy to determine its own future and its own fortunes.

FT: And the talks with the MILF [Moro Islamic Liberation Front] fall into that understanding?

Macapagal: Not necessarily part of the understanding but I believe they welcome it. On the part of the MILF, I am very gratified about the pace of the talks…

FT: You sound confident, but are you sure you have managed to overcome these concerns about stability? There are all those problems over accusations of corruption against your family and allegations that you spoke to an election official [about manipulating the vote count in a supposed telephone call which was recorded and has become the subject of investigation]. Why not just make your position clear as to whether it was your voice on the tape or not?

Macapagal: Well, I will discuss it at the appropriate time, and this is not the appropriate time with the political overheat and speculative atmosphere …

FT: And the corruption investigations against your family. I understand you’re happy to have them investigated in the normal way.

Macapagal: Even going beyond the normal way. Because the normal way would be to have the Department of Justice do it but … what I have asked is for the ombudsman who is constitutionally independent and who has a very high credibility to be the one to take over the investigation. Because it’s very important that we send a message that nobody is above the law and the chips will have to fall where they may.

http://news.ft.com/cms/s/a2a3e7f6-e240-11d9-84c5-00000e2511c8.html

Lili

June 22nd, 2005, 07:08 PM

Quite impressive. Now she better get down to the brass tacks and make it happen.

mysaong03

June 22nd, 2005, 10:04 PM

^^ i also watched her in bloomberg channel on bernard lo's(also a filipino) interview. she is really very articulate & clear on her responses, thats what we constantly notice of her, altho sometimes she has to speak a bit slowly here coz her audience(the masa) & the local reporters listening to her are just so naiiiivve!! tanong ng tanong even if they dont know where their stupid questions will lead to :

:)

bustero

June 23rd, 2005, 03:57 AM

Can Parayno Pull This Off?
By Miriam Grace A. Go
Newsbreak Assistant Managing Editor

THERE’S no doubt that the Bureau of Internal Revenue (BIR) is making headway in its campaign to make people pay the correct taxes, in large part because the media have given it positive play. The public has generally understood the BIR’s message: to tinker with one’s income tax is to do so at one’s peril.

So we asked BIR Commissioner Guillermo Parayno Jr. if he would dare run after friendly reporters when some of them turn out to have under-declared their incomes. He became visibly stiff, fell silent for a moment, and turned to the papers that piled up on his desk.

Was he insulted that his resolve was being questioned? Was he sizing up the NEWSBREAK staff, wondering if we wanted to be flattered? Finally, after several seconds, he looked us in the eye and asked, “Why would we give the media special treatment?”

We shared this anecdote with a businessman who had dealt with Parayno when the latter was still vice president and IT specialist of the Lina Group of Companies. “I don’t think he was afraid that he would offend the reporters [that’s why he fell silent],” he said. “He’s just the type who is always deliberate. He’s never spontaneous. He makes sure he’s studied everything before he opens his mouth.”

In fact, says the businessman, Parayno’s thoughtful, purposeful, and methodical style should give assurance to the public that the aggressive collection and prosecution campaign of the BIR is not for show. Supporters and critics of the commissioner, inside and outside the BIR, share this opinion.

His reputation precedes him. Parayno has excellent academic and professional credentials. He did well at the Bureau of Customs (BOC) from 1992 to 1998, and has been making waves in the BIR since he assumed the post in 2002.

A 1970 graduate of the Philippine Military Academy (magna cum laude), Parayno has studied warfare, psychology, business administration, economic investigation, and computer programming. A senior business journalist who had covered him over the years once pointed out, “If you’re a tax evader, won’t you feel nervous about that [Parayno’s background]?”

At the BOC, he was credited for implementing the reform programs of the International Monetary Fund, privatizing some functions of the bureau, and computerizing the entire system. The argument is that, if he was able to put the tax collecting but graft-prone BOC in order, he would be able to do the same at the BIR. And this time—unlike at the customs bureau where, he told NEWSBREAK three years ago, his “sustainability measure did not work as planned”—he wants to make sure the reforms will be sustained even if he’s “no longer in the bureau.”

The BIR can’t afford to fail. The agency accounts for 70 percent of the government’s annual collection. In 2003, Parayno’s first full year at the BIR, the bureau collected P424.27 billion, or P260 million more than its target for that year. It was the first time, since 1997, that the BIR had exceeded its collection target. Last year, the BIR missed its P476.3-billion collection target, but only by 1.31 percent.

“From the looks of it, he means business. Taxpayers are now more aware of their tax obligations,” said a recently retired revenue district officer (RDO) who declined to be named lest his positive views on Parayno be misconstrued as cozying up to his former boss.

An innovation that Parayno introduced is taxpayer registration, payment of taxes, and submission of complaints against tax evaders through mobile phones. Another is the use of software that makes it easier for the central office to find mismatches in the income declarations of big taxpayers.

The tougher task, of course, is how to change mindsets at the bureau. Parayno admits that tax executives tend to favor striking compromises with delinquent taxpayers just so they can collect. One long-time BIR employee reflected this mindset when he tried to illustrate the advantages of a compromise. “A one-peso collection is different from a P1 million collectible. You might have to spend P2 million to collect that.”

Making Parayno’s mission easier to achieve is the lateral attrition law, enacted early this year, which rewards employees of revenue agencies when they surpass their target collection and punish those that fall short. With the institutional reforms that he has introduced, it would be tough for corrupt RDOs to get back at Parayno, the ex-RDO said. He was referring to the experience of Parayno’s predecessor, Rene Bañez, who recorded revenue shortfalls after his reform program displaced a number of inefficient and allegedly corrupt RDOs.

Parayno tends to be a micro manager, according to those who have worked with him, and the commissioner himself sees this as a weakness. For a time, he was the one writing the BIR press releases and conceptualizing the posters for the tax campaign. He also admits: “I use up most of my time on problem solving, on systems and procedures. I tend to neglect the personal touch. I’m weak in administration [in that sense].”

But this single-mindedness is Parayno’s asset, according to a consultant to local governments on tax collection and computerization. “You can be sure that when he focuses on something, he will get it done. I think he has already achieved his goal—that of scaring a small segment of the population to scare everybody else.”

Parayno himself looks like he won’t stop at anything. Before showing off his boxing prowess to the NEWSBREAK staff—a slam man is a fixture in his inner room at the BIR—he stressed: “Mayabang kami. We cannot accept defeat.”

Send us your feedback: letters@newsbreak.com.ph

stephencua

June 23rd, 2005, 04:22 AM

i believe that Parayno has what it takes to change the BIR.. his guerilla tactics are working.. :D hope he moves on to catch bigger fish next time..

Kiel

June 30th, 2005, 09:47 AM

Peso breaches crucial R56-$1 level
By DITAS LOPEZ

MANILA (Dow Jones) — The Philippine peso closed at a five-month low against the US dollar Wednesday, pressured by political concerns that were exacerbated by the widow of the runner-up in last year’s election demanding that President Gloria Macapagal Arroyo quit, traders said.

The dollar finished at P56.050 on the Philippine Dealing System, its highest close since ending at P56.070 on Jan. 11. It closed at P55.690 Tuesday.

The US unit traded in a range of P55.750 to P56.060, and averaged P55.919 compared with the previous session’s average of P55.579.

The volume of transactions rose to $469.88 million from $204.2 million Tuesday.

"The political jitters are fueling more volatility," said Rovic de Guzman, chief foreign exchange dealer at Union Bank of the Philippines.

He said the generally strong dollar amid favorable US economic indicators is also adding to the peso’s weakening.

Minutes before the currency market’s close Wednesday, a data input error showed the dollar at what would have been an all-time high of P56.500. But the dealing system immediately corrected the figure to P56.060, which was still the highest since touching P56.095 on Jan. 11.

"It’s a human error. Most of these things are known to happen, especially when the market is volatile," said Union Bank’s de Guzman, the dealing system’s officer of the week.

Traders said that in the coming weeks the dollar may head toward its alltime high of P56.450, which it touched in March 2004 during the height of political uncertainty ahead of the May presidential elections.

The peso has been dogged by allegations that Arroyo rigged last year’s elections and that some members of her family took kickbacks from an illegal numbers game.

On Wednesday, Susan Roces, the widow of Fernando Poe Jr. — a movie star who lost to Arroyo by a million votes in the election — asked Arroyo to resign, accusing her of having stolen the presidency from her husband.

In a nationally televised speech late Monday, Arroyo admitted she had talked to an election official during the May 2004 polls, but her intention was to protect her votes and not to cheat. She said she wouldn’t resign and appealed for unity.

But her apology didn’t seem to interrupt the peso’s fall.

Still, the Philippine central bank’s acting governor, Amando Tetangco, said earlier Wednesday that the overnight rates are likely to be kept unchanged at the bank’s next policy-setting meeting Thursday. Inflation remains largely supply-driven and the peso’s recent weakening hasn’t been inflationary, he said.

"We don’t want the exchange rate to be a source of inflationary pressure. Despite a slight (peso) depreciation, that doesn’t seem to be a prospect now," Tetangco told reporters.

dancethingy

July 12th, 2005, 07:42 AM

I want to revive this thread because of its importance and relevance.

Let's start anew. So Arroyo will replace Cesar Purisima with Teves. I don't know who this guy is, but there has been unanimous praise regarding his appointment. Can someone enlighten me on his track record.

Arroyo names Teves new finance secretary
http://news.inq7.net/breaking/index.php?index=1&story_id=43219

First posted 10:10am (Mla time) July 12, 2005
XFN-asia
(3RD UPDATE) PRESIDENT Gloria Arroyo has named Land Bank of the Philippines president Margarito Teves as the new finance secretary, Executive Secretary Eduardo Ermita said.
Teves, also a former legislator, replaces Cesar Purisima, who quit the government last Friday, along with majority of Arroyo's economic team.

Purisima and the other ministers who quit had also urged Arroyo to step down, and for Vice President Noli de Castro to take over to address a simmering political crisis.

dancethingy

July 12th, 2005, 07:46 AM

Also, what do you think are the chances of EVAT being implemented and cleared by the Supreme Court?

kiretoce

September 13th, 2005, 07:58 PM

OVERSEAS REMITTANCES BYPASS FILIPINO POOR
September 13, 2005 (STAR) 09/13 11:16:19 AM

MANILA (AFP) -- Billions of US dollars of cash transfers from the Philippines' huge overseas work force have largely bypassed the Southeast Asian nation's poor, according to the Asian Development Bank (ADB).

While the money has boosted personal consumption, the main driver of its economy, the overall impact is patchy, with more prosperous areas of the country and higher-income families receiving the lion's share, it said.

"The poorer segment of Philippine society has been largely excluded from the opportunities provided by migration, and OFWs (overseas Filipino workers) tend to come from less poor regions," the Manila-based lender said in a report.

The Philippines central bank says around eight million overseas Filipinos -- nearly a 10th of the population -- will send home 9.4 billion dollars this year via formal banking channels, up 10 percent from last year's levels.

The country is the third highest recipient of remittances, behind Mexico and India.

The ADB, however, estimates that the actual level of remittances will be about three times the official amount, with overseas workers using other, informal means of transfer.

It found that despite sustained GDP growth in the four years to 2003, real average family incomes in the Philippines have fallen 10 percent, with the total income of the poorest 10th of the population having stagnated.

About 44.1 percent of Filipinos earned no more than a dollar a day in 2003.

"While a significant proportion of families report that income from abroad is their main source of income, these families are mainly based in urban areas," the report said.

"Furthermore, families from higher income groups tend to receive larger proportions of income from abroad than lower income groups."

Provinces with the highest levels of poverty, particularly in the rebellion-torn southern island of Mindanao, have the lowest proportion of overseas workers.

"Poverty remains a significant challenge in the Philippines, and it is a challenge that continues to grow," said Shamshad Akhtar, head of the ADB's Southeast Asia department.

"The number of poor Filipinos is increasing," she said, owing to the rapid 2.36 percent population growth rate, and "rural poverty has proven to be particularly intractable."

richard fischer

September 14th, 2005, 08:39 AM

it is about time the country thinks of population control. this is just getting out of control.....

richard fischer

September 14th, 2005, 08:40 AM

what do you think was the basics of chinas economic growth at the beginning some 20 years ago ? less mouths to feed, more work for everyone.

kiretoce

September 14th, 2005, 06:08 PM

HERE I STAND: The Next Tycoons
By Geronimo L. Sy Thursday, September 15, 2005

The years 2005 to 2010 will see the rise of a new generation of tycoons that will shake and shape the business landscape of the land. The current undisputed crop is lead by Lucio Tan, George Ty, John Gokongwei, Alfonso Yuchengco and Henry Sy who can be considered as first generation founders. Conventional wisdom says that a family fortune cannot last three generations—the first one makes it, the second maintains it and the third spends it. We are on the verge of seeing this rule broken. The next five years will be the crucial transition years and the economic implications are far ranging.

First, these modern tycoons are equipped with the ancient management principles of the East and armed with the latest management techniques of the West, successfully blending the two. They spent resources studying how family businesses grow and thrive and wither away. The successor problem is the heart of the issue. The tycoons have clearly identified their transitional leaders—the ultimate successors—and the turnover of the reins of power and control will happen very soon.

Second, the present-day tycoons head conglomerates on a scale never seen before in the country. Whereas the postwar Philippine economy up to the early eighties saw the emergence of captains of industry, most of them were in single lines of a traditional family business with one or two allied businesses. Today, family business in the taipanic scale means a large number of holding companies, subsidiaries and affiliates that cuts across many different kinds of businesses that are all industry leaders. Thus, we see tycoons with substantial interests in various key sectors such as banks, insurance, cars, airlines, telecoms, investment houses, consumer products, real estate and publications, among others. The successors will have their hands full concentrating on each area and making their companies lead the way to overall market share.

Third, globalization is a force to reckon with. Tycoons are gearing up for regional and multinational tie-ups and competition. Acknowledging the need to stay head and to forestall rivals, they have to continuously watch out for opportunities and avoid threats. Any false move or miscalculation will heavily and quickly affect the bottom line. There is not much room for slack or error, given that the global situation makes for cutting edge entrepreneurs.

The above factors—multiple successors with multiple big businesses in a highly competitive environment—augur well for the country. The concentration of economic power will diffuse to the various companies to be lead by each designated successor. For example, Son #1 will head the financial group while Daughter #2 will handle the retail arm. Each mini-tycoon will control his own destiny and will take his company where he wants to. There will be family rivalry in this sense with each successor trying to live up to the ideals of the founder. This time it is not only to maintain the business but also to nurture it beyond any frontier. The result is more competition, which translates to higher economic growth.

The second generation tycoons will also have to contend with a second wave of rising tycoons like Tony Tancaktiong of Jollibee, Andrew Tan of Megaworld, Cecilio Pedro of Happee, Alfredo Yao of Zesto and Carlos Chan of Oishi, to name a few. And these people share a common trait—they are all outward-looking social entrepreneurs. Although categorized as founders, they started later than the original tycoons and carry with them the imprint of social consciousness. They possess the common vision of a community worth working and living in and a country worth fighting and dying for. They are aware that privilege comes with the consequent responsibility and are thus in the forefront of social change. Their ethics and commitment rival the frontline volunteers in our civil society.

Too many in the business sector and civil society take a cynical view towards government. They say that we should just do what we have to do. To ignore the politics and damn the politicians will not help, and the tycoons know this. The mantra of “Let the government be” is not relevant. No business or society will grow and realize its full potential unless and until they operate under an enabling government that is transparent and accountable. All sectors are involved in this advocacy and cannot close our eyes to reality.

In terms of finance, the government is the biggest business entity and the biggest employer. In terms of social services, it is the largest nongovernment organization. Not to engage the government and point out its faults and work with it on its weaknesses is a folly that should not fall into.

The present and future tycoons will surely do their thing and continue to be the engines of economic growth for the country that will overtake our feudal politics and the narrow mindedness of our politicians. The next tycoons with their financial resources, business savvy, social courage and sense of duty will lead the way forward and serve as role models for entrepreneurs. They will change and shock the economic landscape for the better. Watch out in the next five years.

boybleauXx

October 5th, 2005, 03:08 AM

Booming Business Confidence in Butuan City

by Robert E. Roperos, Abner M. Caga

Butuan City -- "The risk of doing business may be applicable only in Manila with the political crisis confronting the country at present".

This is the reaction of National Economic and Development Authority (NEDA) Caraga Regional Director Carmencita Cochingco in an interview with PIA-Caraga on the result of the study conducted by Asian Development Bank (ADB) on issue of the high risks of doing business in the Philippines leading to a sharp drop in foreign direct investment in the Southeast Asian country in recent years.

Cochingco added that since Manila is not the Philippines, the cause of the risk is not really felt here in the region because of the stable local governments who see to it that peace and order security is very stable.

"I believe that the donor community here in Caraga is very confident to implement projects. Foreign donors are also coming in as well as the World Bank expanding its assistance in our rural roads", Cochingco further said.

Cochingco also said that new constructions, business establishments and a lot of economic activities are already existing and expanding here. From the economic point of view, she added that additional investments must be given priority such as the formation of the capital goods that include plants and factories, instead of the consumer goods, "...but at the same time, it's also an indication that there is enough business confidence since a lot of businessmen are already putting up business", Cochingco said.

Meanwhile, Press Secretary Ignacio Bunye said that the Philippines is determined to stamp out the risks of doing business by strong fiscal measures, macroeconomic stability and strategic political reforms. Bunye added that our government's revenue program is on tracking and holding up confidence.

"We are building infrastructure systems that would further attract investors to create more jobs and sustain the improving employment rate. As we cross the threshold of the second phase of our economic reform agenda, we are bringing into line the much-needed reforms in our political system that will reduce perennial political turmoil, further empower the people and enliven enterprise", Bunye said.

Bunye further stressed that we are at the verge of economic takeoff driven by an emerging sense of national unity behind change and reform. (PIA-Caraga)

ColaPop

October 7th, 2005, 12:23 AM

Wow ... i think the national debt is getting out of hand !! where did those money spent on ? 70 billions ? And PHL is already on deficit ?? i think PHL seriously needs to curb of the way u guys spend money ! And i observe theres such a great difference in terms of infracstructures and road systems between MNL and the rest of the country .

kiretoce

October 17th, 2005, 08:59 PM

Q3 growth seen at 5.2%
By Maricel E. Burgonio, Tuesday, October 18, 2005

A RECOVERY in the farm sector may have allowed the Philippine economy to post a more robust growth in the third quarter, according to the National Economic and Development Authority (NEDA).

On the sidelines of a Senate hearing on the national budget, Socioeconomic Planning Secretary Augusto Santos, who also serves as NEDA director general, said the economy may have grown by at least 5 percent in the three-month period ending September, or faster than the 4.8 percent expansion seen in the second quarter.

In a separate interview, Dennis Arroyo, director of the NEDA’s National Policy and Planning Staff said simulations done by the agency point to a third-quarter growth of between 5.2 and 5.7 percent.

“The agriculture sector is seen to recover in the second half of the year. It should be growing more than 5 percent this year,” Santos said.

The agriculture sector, which comprises a fifth of the country’s economic output, grew just 0.7 percent in the first half largely due to a prolonged dry spell.

Apart from the farm sector, services, particularly the telecommunications subsector and tourism, would contribute to economic growth in the third quarter, according to Arroyo. On the demand side, remittance-financed consumption would fuel economic expansion, he said.

Santos said the third-quarter growth would enable the country to meet the official forecast of a 5.9-percent expansion in the second semester. With this, the government may likewise meet the low-end target of a 5.3-percent expansion for the whole year.

“We’re optimistic to grow by 5.3 percent this year. We adjusted our forecast to the lower end due to the political turmoil,” Santos said.

Santos admitted the economy could have achieved a six-percent expansion had the political turmoil arising from vote-rigging allegations against President Arroyo not occurred.

The 5.3-percent growth forecast for this year is premised on Dubai crude averaging $50.77 a barrel for the year.

Besides consumption, exports are also expected to boost the economy, with outbound shipments seen rising eight percent this year. This would mean that for the rest of the year, exports should grow an average of 15 percent year on year, Santos said.

richard fischer

October 18th, 2005, 03:21 PM

tigidig14

October 18th, 2005, 09:11 PM

http://www.transparency.org/cpi/2005/cpi2005.sources.en.html
^^
hey people, dont have the time to read all of these, have a homework to do, but i assume based in this, Philippines is not nearly as bad in terms of corruption.

^^ very very important must luk

Lili

October 18th, 2005, 09:26 PM

@ Tigs, it's not allowing us to read the contents of the pdf file.

bagel

October 18th, 2005, 10:32 PM

Here you go.
http://www.transparency.org/surveys/index.html#cpi

I'm surprised the USA isn't worse.

Lili

October 18th, 2005, 10:40 PM

Thanks, Mike.

Haven't read it yet but a cursory check of the table showing Philippines with a score of 2.5 out of a clean score of 10 in the Corruption Perceptions Index (CPI) is not good.

tigidig14

October 18th, 2005, 10:44 PM

^got it fix, ah i guess the other way around

Lili

October 18th, 2005, 10:50 PM

TI 2005 Corruption Perceptions Index

Transparency International commissioned Prof. Dr J. Graf Lambsdorff of the University of Passau to produce the CPI table. For information on data and methodology, please consult the frequently asked questions and the CPI methodology: www.transparency.org/surveys/#cpi or www.icgg.org.

TI 2005 Corruption Perceptions Index
Country rank Country 2005 CPI score* Confidence range** Surveys used***
1 Iceland 9.7 9.5 - 9.7 8
2 Finland 9.6 9.5 - 9.7 9
New Zealand 9.6 9.5 - 9.7 9
4 Denmark 9.5 9.3 - 9.6 10
5 Singapore 9.4 9.3 - 9.5 12
6 Sweden 9.2 9.0 - 9.3 10
7 Switzerland 9.1 8.9 - 9.2 9
8 Norway 8.9 8.5 - 9.1 9
9 Australia 8.8 8.4 - 9.1 13
10 Austria 8.7 8.4 - 9.0 9
11 Netherlands 8.6 8.3 - 8.9 9
United Kingdom 8.6 8.3 - 8.8 11
13 Luxembourg 8.5 8.1 - 8.9 8
14 Canada 8.4 7.9 - 8.8 11
15 Hong Kong 8.3 7.7 - 8.7 12
16 Germany 8.2 7.9 - 8.5 10
17 USA 7.6 7.0 - 8.0 12
18 France 7.5 7.0 - 7.8 11
19 Belgium 7.4 6.9 - 7.9 9
Ireland 7.4 6.9 - 7.9 10
21 Chile 7.3 6.8 - 7.7 10
Japan 7.3 6.7 - 7.8 14
23 Spain 7.0 6.6 - 7.4 10
24 Barbados 6.9 5.7 - 7.3 3
25 Malta 6.6 5.4 - 7.7 5
26 Portugal 6.5 5.9 - 7.1 9
27 Estonia 6.4 6.0 - 7.0 11
28 Israel 6.3 5.7 - 6.9 10
Oman 6.3 5.2 - 7.3 5
30 United Arab Emirates 6.2 5.3 - 7.1 6
31 Slovenia 6.1 5.7 - 6.8 11
32 Botswana 5.9 5.1 - 6.7 8
Qatar 5.9 5.6 - 6.4 5
Taiwan 5.9 5.4 - 6.3 14
Uruguay 5.9 5.6 - 6.4 6
36 Bahrain 5.8 5.3 - 6.3 6
37 Cyprus 5.7 5.3 - 6.0 5
Jordan 5.7 5.1 - 6.1 10
39 Malaysia 5.1 4.6 - 5.6 14
40 Hungary 5.0 4.7 - 5.2 11
Italy 5.0 4.6 - 5.4 9
South Korea 5.0 4.6 - 5.3 12
43 Tunisia 4.9 4.4 - 5.6 7
44 Lithuania 4.8 4.5 - 5.1 8
45 Kuwait 4.7 4.0 - 5.2 6
46 South Africa 4.5 4.2 - 4.8 11
47 Czech Republic 4.3 3.7 - 5.1 10
Greece 4.3 3.9 - 4.7 9
Namibia 4.3 3.8 - 4.9 8
Slovakia 4.3 3.8 - 4.8 10
51 Costa Rica 4.2 3.7 - 4.7 7
El Salvador 4.2 3.5 - 4.8 6
Latvia 4.2 3.8 - 4.6 7
Mauritius 4.2 3.4 - 5.0 6
55 Bulgaria 4.0 3.4 - 4.6 8
Colombia 4.0 3.6 - 4.4 9
Fiji 4.0 3.4 - 4.6 3
Seychelles 4.0 3.5 - 4.2 3
59 Cuba 3.8 2.3 - 4.7 4
Thailand 3,8 3.5 - 4.1 13
Trinidad and Tobago 3,8 3.3 - 4.5 6
62 Belize 3.7 3.4 - 4.1 3
Brazil 3,7 3.5 - 3.9 10
64 Jamaica 3.6 3.4 - 3.8 6
65 Ghana 3.5 3.2 - 4.0 8
Mexico 3.5 3.3 - 3.7 10
Panama 3.5 3.1 - 4.1 7
Peru 3.5 3.1 - 3.8 7
Turkey 3.5 3.1 - 4.0 11
70 Burkina Faso 3.4 2.7 - 3.9 3
Croatia 3.4 3.2 - 3.7 7
Egypt 3.4 3.0 - 3.9 9
Lesotho 3.4 2.6 - 3.9 3
Poland 3.4 3.0 - 3.9 11
Saudi Arabia 3.4 2.7 - 4.1 5
Syria 3.4 2.8 - 4.2 5
77 Laos 3.3 2.1 - 4.4 3
78 China 3.2 2.9 - 3.5 14
Marocco 3.2 2.8 - 3.6 8
Senegal 3.2 2.8 - 3.6 6
Sri Lanka 3.2 2.7 - 3.6 7
Suriname 3.2 2.2 - 3.6 3
83 Lebanon 3.1 2.7 - 3.3 4
Rwanda 3.1 2.1 - 4.1 3
85 Dominican Republic 3.0 2.5 - 3.6 6
Mongolia 3.0 2.4 - 3.6 4
Romania 3.0 2.6 - 3.5 11
88 Armenia 2.9 2.5 - 3.2 4
Benin 2.9 2.1 - 4.0 5
Bosnia and Herzegovina 2.9 2.7 - 3.1 6
Gabon 2.9 2.1 - 3.6 4
India 2.9 2.7 - 3.1 14
Iran 2.9 2.3 - 3.3 5
Mali 2.9 2.3 - 3.6 8
Moldova 2.9 2.3 - 3.7 5
Tanzania 2.9 2.6 - 3.1 8
97 Algeria 2.8 2.5 - 3.3 7
Argentina 2.8 2.5 - 3.1 10
Madagascar 2.8 1.9 - 3.7 5
Malawi 2.8 2.3 - 3.4 7
Mozambique 2.8 2.4 - 3.1 8
Serbia and Montenegro 2.8 2.5 - 3.3 7
103 Gambia 2.7 2.3 - 3.1 7
Macedonia 2.7 2.4 - 3.2 7
Swaziland 2.7 2.0 - 3.1 3
Yemen 2.7 2.4 - 3.2 5
107 Belarus 2.6 1.9 - 3.8 5
Eritrea 2.6 1.7 - 3.5 3
Honduras 2.6 2.2 - 3.0 7
Kazakhstan 2.6 2.2 - 3.2 6
Nicaragua 2.6 2.4 - 2.8 7
Palestine 2.6 2.1 - 2.8 3
Ukraine 2.6 2.4 - 2.8 8
Vietnam 2.6 2.3 - 2.9 10
Zambia 2.6 2.3 - 2.9 7
Zimbabwe 2.6 2.1 - 3.0 7
117 Afghanistan 2.5 1.6 - 3.2 3
Bolivia 2.5 2.3 - 2.9 6
Ecuador 2.5 2.2 - 2.9 6
Guatemala 2.5 2.1 - 2.8 7
Guyana 2.5 2.0 - 2.7 3
Libya 2.5 2.0 - 3.0 4
Nepal 2.5 1.9 - 3.0 4
Philippines 2.5 2.3 - 2.8 13
Uganda 2.5 2.2 - 2.8 8
126 Albania 2.4 2.1 - 2.7 3
Niger 2.4 2.2 - 2.6 4
Russia 2.4 2.3 - 2.6 12
Sierra Leone 2.4 2.1 - 2.7 3
130 Burundi 2.3 2.1 - 2.5 3
Cambodia 2.3 1.9 - 2.5 4
Congo, Republic of 2.3 2.1 - 2.6 4
Georgia 2.3 2.0 - 2.6 6
Kyrgyzstan 2.3 2.1 - 2.5 5
Papua New Guinea 2.3 1.9 - 2.6 4
Venezuela 2.3 2.2 -2.4 10
137 Azerbaijan 2.2 1.9 - 2.5 6
Cameroon 2.2 2.0 - 2.5 6
Ethiopia 2.2 2.0 - 2.5 8
Indonesia 2.2 2.1 - 2.5 13
Iraq 2.2 1.5 - 2.9 4
Liberia 2.2 2.1 - 2.3 3
Uzbekistan 2.2 2.1 - 2.4 5
144 Congo, Democratic Republic 2.1 1.8 - 2.3 4
Kenya 2.1 1.8 - 2.4 8
Pakistan 2.1 1.7 - 2.6 7
Paraguay 2.1 1.9 - 2.3 7
Somalia 2.1 1.6 - 2.2 3
Sudan 2.1 1.9 - 2.2 5
Tajikistan 2.1 1.9 - 2.4 5
151 Angola 2.0 1.8 - 2.1 5
152 Cote d'Ivoire 1.9 1.7 - 2.1 4
Equatorial Guinea 1.9 1.6 - 2.1 3
Nigeria 1.9 1.7 - 2.0 9
155 Haiti 1.8 1.5 - 2.1 4
Myanmar 1.8 1.7 - 2.0 4
Turkmenistan 1.8 1.7 - 2.0 4
158 Bangladesh 1.7 1.4 - 2.0 7
Chad 1.7 1.3 - 2.1 6

Explanatory notes

* CPI Score relates to perceptions of the degree of corruption as seen by business people and country analysts and ranges between 10 (highly clean) and 0 (highly corrupt).
** Confidence range provides a range of possible values of the CPI score. This reflects how a country's score may vary, depending on measurement precision. Nominally, with 5 percent probability the score is above this range and with another 5 percent it is below. However, particularly when only few sources (n) are available an unbiased estimate of the mean coverage probability is lower than the nominal value of 90%.
*** Surveys used refers to the number of surveys that assessed a country's performance. 16 surveys and expert assessments were used and at least 3 were required for a country to be included in the CPI.

paulkrps

October 18th, 2005, 10:53 PM

hmmm, vietnam is well ahead at 107?

tigidig14

October 18th, 2005, 10:57 PM

^makaka-corupt ba cla sa vietnam, di pinagpapatay cla ni HO CHI MINH.

marites4

October 19th, 2005, 12:58 AM

stupid political noise hindering the growth of livehood for the people :

Santos admitted the economy could have achieved a six-percent expansion had the political turmoil arising from vote-rigging allegations against President Arroyo not occurred.
you have no idea how frustrated some people are about this. This is our achilles heel. Imagine the peso rate going down to 54, stock market, gaining momentum, the best performer in Asia, then boom a scandal errupts ,everything hits the fan and the peso is back to mid56. That may not seem alot, 2 pesos. But to a billion dollar denominated foreign debt, that can mean a savings to the tune of millions of dollars off debt servicing which means more money for badly needed infrastucture and for education sector.

tigidig14

October 19th, 2005, 01:46 AM

^kala ko 55 na ulit, mga forex tal'ga oh, nangangawarta

mysaong03

October 19th, 2005, 09:05 PM

^^ i think TI has overlooked some countries w/c actually are even worse than us, but i resort not to mention them. our being so open, transparent & democratic to media scrutiny truly added on to their perception. :(

kiretoce

November 3rd, 2005, 03:11 PM

RP foreign debt, bank statistics tackled at BSP users' forum
By VG Villanueva

Kalibo (3 November) -- The Philippines' foreign debt is now at $56 billion, the Balance of Payments (BOP) surplus in current accounts is attributed to our Overseas Filipino Workers (OFWs) remitting their earnings to the country, while family income is expected to increase in the year ahead but to decline in the last semester of 2005.

Of households who have at least one OFW, 90.4% of remittances to families in the country is used either on food and other household needs.

These were some of the salient points taken up when Bangko Sentral Ng Pilipinas (BSP) officials came to Aklan recently to conduct the 4th Regional Users' Forum on BSP-Produced Statistics from the bank's Department of Economic Statistics.

The activity, held at the Sampaguita Gardens Resort was part of the bank's activities in observance of the 16th National Statistics Month, aimed to enhance public awareness on the BSP's statistical outputs in the region.

Loida Cruz, Acting Deputy Director, BSP Department of Economic Statistics talked on the Balance of Payments; Marriel Remulla, Bank Officer V, presented the Financial Indicators while Ludivinia Gador, Acting Deputy Director, presented the Business Expectation Survey/Consumer Expectations Survey.

The Balance of Payment, according to Cruz, is a statistical statement that summarizes the economic transactions of an economy with the rest of the world for a given of time.

Based on her presentation, current account under the BOP presents the net income stream from goods, services and other factors of production such as wages, investment income and expense. A surplus in current account balance indicates that an economy is a net exporter of foreign savings while a deficit indicates an economy is net importer of foreign savings.

Meanwhile, overall consumer outlook improves in the year ahead but weakens in the last two quarters of 2005. As presented by Ms. Gador, reasons for the perceived improvement for next year include expectations of additional income, more jobs, sound government policies and overseas jobs.

The decline however in consumers optimism in the third and fourth quarter of 2005 according to respondents is due to high prices of food, utilities, oil and transportation, insufficient income, and higher expenditures.

On expenditures, basic items such as food, electricity and fuel, house rent and transportation were cited by respondents as major components to drive up family expenditures in the last quarter of 2005.

More people intend to purchase house and lots than motor vehicles in the third quarter of 2005, but for next year, factors that would encourage household members to buy include affordability, easy installment terms, investment (in case of housing), and usefulness in business (in the case of motor vehicle). Majority of respondents who have no intention to buy anything in the next 12 months cited high prices, low/insufficient income and higher priority for food and other basic needs.

In the next 12 months, households anticipate the highest prices increase in utilities, transportation, fuel and food.

Among respondents surveyed inside and outside the National Capital Region, 9.7 % have at least one OFW in their households - 88.3% of them remit money to their families which are mostly spent on food and other needs (90.4% of households), appliances (20.7%); education (15.4%); and saved in banks (30.3%).

Some of the respondents use OFW remittances for debt payments, medicine, motor vehicle, and house and lot purchase.

Even as the country has a big foreign debt, the BSP officials assured that they are making sure such debts are managed well. They also said the country's external debt is still sustainable. According to them, the creation of a macroeconomic environment eliminates the need to get more debts.

The BSP forum was attended by heads and representatives of various government offices in Aklan, officials of banking institutions and related organizations and the local media.

Leonora S. Templonuevo currently heads the Kalibo Branch of the Bangko Sentral ng Pilipinas.

kiretoce

November 3rd, 2005, 03:14 PM

World Bank slashes RP growth forecast
By Darwin G. Amojelar Friday, November 04, 2005

Weak exports, high oil prices and rising interest rates would dampen the Philippine economy this year and next, the World Bank warned in a new report released Thursday.

In its East Asia Update, the multilateral lender further cut its economic growth forecast for the Philippines to 4.8 percent this year from its original estimate of 5 percent made in April.

For next year, the Philippine economic is seen to grow by 5 percent the multilateral lender maintained its gross domestic product projections to 5 percent.

In contrast, the Arroyo administration expects the econo*my to expand by at least 5.3 percent this year and at least 5.7 percent next year. These were downward adjustments from earlier targets of as high as 6.3 percent this year and 7.3 percent next year.

“The recent slower pace of growth in parts of the region this year has been principally driven by external factors, in particular slower export growth, higher oil prices and higher international interest rates,” the World Bank said.

The lender also forecast economic growth of 8.7 percent for China, 7.5 percent for Vietnam, 6 percent for Indonesia, 5.3 percent for Malaysia, 5 percent for Thailand and 6.1 percent for Cambodia.

For the more advanced East Asian economies, the bank projected 1.8-percent expansion for Japan, 4.4 percent for Hong Kong, 4.6 percent for South Korea, 4.7 percent for Singapore and 4.1 percent for Taiwan.

Chris Hoban, World Bank acting country director for the Philippines, said sustained implementation of recently adopted fiscal reforms would restore the government’s financial health and help the country catch up with its neighbors in the region.

“Stronger public finances would allow for more investments in infrastructure and education to make the country more competitive. The reforms also include improvements in the efficiency and transparency of public expenditures, so that more Filipinos, especially the poor, would benefit from the increase in additional revenues,” Hoban said.

The report also said that despite the economic slowdown in the last few quarters, the Philippine economy remains resilient owing to a surge in worker remittances, and a 5-percent growth in agriculture in the third quarter. Foreign direct and portfolio investments have increased significantly from recent years, and gross reserves have risen to record highs in recent months, the lender said.

In the first six months, the Philippine economy grew by 4.7 percent from 6 percent in the same period last year despite the political uncertainty, rising oil prices, and lower farm output.

kiretoce

November 15th, 2005, 05:25 PM

EDITORIAL: The resilience of corporate Philippines
Wednesday, November 16, 2005

DROWNED out by the noise generated by the Philippines’ internal political bickering are the healthy revenues, if not robust profits, the country’s top publicly listed companies have reported over the past three weeks.

Bellwether firms Ayala Corp., San Miguel, PLDT and SM Prime, to name a few, have shown they could grow despite the country’s unstable political environment. Ayala Corp., the Philippines’ largest conglomerate, reported in the third quarter alone hefty earnings of P5.1 billion, up by nearly half from a year ago, mainly due to gains from its banking, water and property units.

While posting a 6-percent dip in its nine-month net income, San Miguel, Southeast Asia’s biggest food and beverage manufacturer, grew its top line by 32 percent year on year to P161 billion. Its vibrant sales were reflected in the profitability of the country’s biggest mall developer, SM Prime, whose rental revenues drove up the company’s profits by seven percent to P3.6 billion.

Times are tough given high oil prices and the expanded value-added tax, but domestic consumption is alive and well. Strong consumer spending may yet lift the economy by the official 5.3-percent goal this year, despite an anemic 3.4-percent rise in exports (as against a government target of 8 percent).

As evidence of the Filipinos’ vibrant spending, PLDT, the country’s biggest mobile-phone service provider, reported a 13-percent rise in profits to P25 billion. Spending for cell phones was responsible for this gain, as consolidated wireless service revenue rose eight percent to P55 billion in the first nine months. Given its good showing so far, the telco even expects to exceed its original profit forecast for this year.

This resilience by Philippine companies, and not the Supreme Court’s consent to the expanded VAT, has provided the biggest boost to the peso and the local stock market. The third-quarter earnings season is about to wind down, but the Philippine Composite Index, a 30-company barometer of the country’s stock market, has returned above the 2,000-point threshold that gave it the distinction of being Asia’s top performing bourse last year.

The peso, on the other hand, has scaled back to the heights last seen before a poll-rigging controversy involving President Arroyo broke the news. Partly sentiment-driven, the peso’s rise vis-à-vis the dollar was more a result of the seasonal inflows of overseas Filipino workers’ remittances, which are expected to grow 10 percent this year. In short, they would flow into the country even without the court-approved expanded VAT.

More important, the peso’s rise and the rebound of the local equity market were due to the $2.1 billion in foreign portfolio investments so far made in domestic financial assets. The Bangko Sentral ng Pilipinas said inflows as of November 4 were 7.4 times the $279.1 million for the same period last year, and 4.2 times the $486.8 million for the whole of last year.

To a certain extent, the Supreme Court ruling on the expanded VAT helped dispel fears the Philippines would go the way of Argentina, as a portion of the inflows went into government securities or IOUs. But the BSP had more to do with the renewed foreign interest in Philippine financial assets, as it raised thrice this year key interest rates to keep rising prices and inflationary expectations in check. This monetary tightening widened the differential between Philippine and comparable US interest rates, which in turn attracted foreign investors back to the local equity, bond and money markets.

If we are to believe the BSP, the bulk of the foreign portfolio inflows were invested in shares of stock listed with the Philippine Stock Exchange. And as anyone who bets in the equity market knows, investments in companies are in the final analysis a function of the target firm’s fundamentals, i.e., profits, revenues, among other key measures of corporate health.

Malacañang therefore has nothing to do with the rise of the peso and the stock market. Local companies, and Filipinos in general, are surviving if not thriving despite the political noise.

bustero

November 16th, 2005, 06:17 AM

I think so too but hot maoney in the stock market is dangerous as it's very skittish.

rowell_sk

November 19th, 2005, 11:20 PM

check this out!!
http://upload.wikimedia.org/wikipedia/commons/5/51/Ti_prague_nov98.jpg

Lili

November 20th, 2005, 05:40 AM

^ Very interesting. Also interesting that we are just beside Argentina, Turkey and Mexico in both spectrums.

ryanr

November 20th, 2005, 05:52 AM

^ but also note the data shown is from 1998. A lot has changed since then.

le Reine

November 21st, 2005, 01:35 PM

seems interesting... Most countries are in the downturn?

kiretoce

November 21st, 2005, 07:25 PM

Emerging Pinoy "Big Brother?"
November 22, 2005

More and more people are beginning to think that some pro-US groups are behind the organized campaign against the multibillion peso Philippine North Luzon Railway Project to be financed by the China Export and Import Bank and which would be undertaken by the giant China National Machinery and Equipment Corp. (Group) or CNMEG.

There is nothing concrete to support this suspicion. However, it would not be surprising if indeed groups who look at the US as the “big brother” of the Philippines feel threatened by the increasing presence of the People’s Republic of China in the Philippines as represented by the more than P20 billion Northrail project, which today is the biggest single project undertaken by a Chinese company in the Philippines.

At the rate things are going, China could become the Philippines’ “big brother” and replace the US in terms of economic and political influence.

The $400 million loan in fact represents for the 32-km railway service from Caloocan City to Malolos, Bulacan represents only section one of the first phase of the North Luzon Railway Project. Section two of phase 1 would extend the project to Clark and provide the critically needed mass transport system that would link the Clark Special Economic Zone to Metro Manila.

The second phase of the project would extend the railway to San Fernando City. The extension to Clark from Malolos and then to San Fernando in La Union is expected to be undertaken by CNMEG and also to be financed by the China EximBank under the same concessionary 3 percent annual interest rate and 20-year repayment period including a 5-year grace period scheme.

The presence of the People’s Republic of China in the Philippines has become very conspicuous in the past few months. In fact, in the past week alone there is an impression of a “Chinese invasion” in the City of Manila.

No sooner had the high-powered 500-person delegation from Guangdong finished its trade and cultural mission highlighted by the signing of several investment agreements with government agencies and private companies than another high-powered visitors from the City of Beijing arrived.

The Beijing delegation was led by no less than the mayor of Beijing Wang Qishan who made his first trip outside of China for the first in a long long time to formalize a sister-city agreement with the City of Manila.

Manila Mayor Lito Atienza is right to be proud of this landmark agreement. This is the first such agreement forged by the City of Beijing with any other international city in the last five years.

It is significant that the capital of China and the capital of the Philippines would enter into such a sister-city agreement at this time.

For one it must be a recognition of the fact that Manila is home to the largest and richest community of ethnic Chinese in the country. The Chinese in Manila was already a thriving community even before the arrival of the Spaniards.

The visit also highlights the “Buhayin ang Maynila” centerpiece program of Atienza especially since Beijing, too, is in process of a dizzying development program in preparation for its hosting of the next Olympics.

Atienza could learn from the Beijing development effort but Mayor Wang might have something to share in how the historic capital city of Manila is coping with development while preserving the values and roots from the past.

Mayor Wang, in remarks made in several official functions that he attended while in Manila, made it clear that the parallel efforts of both cities was the primary driver of the partnership that Beijing has forged with Manila.

Other local government units in the Philippines have also forged closer ties with their Chinese counterparts. The province of Shandong, for example, recently had a sister-province agreement with the province of Ilocos Norte. A few weeks ago, Ilocos Norte Gov. Ferdinand Marcos led a delegation to Shandong to formalize a sister province agreement.

Shandong Province, which has a population of more than 90 million, has ledged to help in the development of Ilocos Norte and funding support for a number of projects including the expansion of Port Irene and agro-industrial development is presently under negotiations.

The reopening of direct air service from Manila to Beijing by Philippine Airlines after a 16-year hiatus is another sign of the strengthening ties between China and the Philippines.

The resumption of this service, which we understand is fully booked, merely serves to underscore the increased traffic between Manila and Beijing by government officials, businessmen and tourists.

Filipinos who have visited Beijing, Shanghai and other key cities of China are convinced that China has joined the ranks of developed countries. China’s experience might teach the Philippines more than the development models from western countries.

normandb

November 21st, 2005, 11:51 PM

thats good. Now, uncle Sam is really threatened because his influence in the region is rapidly deteriorating. If they want to regain our trust they should invest more in our country rather than destabilizing our political and economic system.

ryanr

November 22nd, 2005, 11:19 PM

IMF upgrades economic growth projection for RP
By Des Ferriols
The Philippine Star 11/23/2005

The International Monetary Fund (IMF) has upgraded its economic growth projection for the Philippines this year but adopted a conservative economic projection for 2006.

The IMF said yesterday that it is expecting the economy to grow by five percent this year, which is slightly up from its original growth projection of 4.75 percent.

Its projected economic growth rate for 2006 is also five percent but this is lower than the 5.7 percent growth projected by the National Economic and Development Authority (NEDA).

The IMF praised the Philippines for its sweeping tax reform package but said a spike in world oil prices and a softening of demand for exports remain threats.

IMF senior advisor Masahiko Takeda said the growth in remittances helped offset the impact of surging oil prices and cushioned the effect of indirect taxes on consumption.

Takeda said the IMF also noted the improvements in the government’s fiscal position with the budget deficit staying below the target as a result of tight budget controls and a recent increase in revenue collections.

According to Takeda, the IMF believed that the Arroyo administration would be able to reduce its deficit to P150 billion this year, primarily with the increase in revenue from taxes on tobacco and alcohol or the so-called "sin taxes" as well as the lifting of value-added tax exemptions on oil and petroleum products.

However, the government would have to accelerate the pace of power sector privatization to restore the financial viability of the sector and facilitate investments to ensure adequate power supply.

The IMF wrapped up its performance review of the country’s economy yesterday, meeting with top Philippine officials to assess the progress of the Arroyo administration’s economic reform program.

The Philippines, an original member of the IMF since 1945, is under its so-called "post-program monitoring" until early next year. Under the program, the IMF reviews the performance of the economy twice a year and does not extend loans to the Philippines.

IMF division chief James Gordon said the IMF’s upgrade of its 2005 economic projection for the country was based on new data coming in towards the end of the year. "The likely outcome is something like 4.9 percent," he said.

The IMF is equally optimistic, he added, that the government would meet its 2006 budget deficit target of P125 million.

The deficit totaled P115.5 billion in the first 10 months of the year, or P40.5 billion less than the official estimate for the period. It also represents 64 percent of the government’s forecast for the year.

National Treasurer Omar Cruz also disclosed last week that government revenues climbed 15 percent to P577 billion from a year ago, outpacing a seven-percent gain in spending.

Gordon warned, though, that the IMF continues to worry about the impact of higher oil prices in 2006 as well as the changing dynamics of the export market that could press down on Philippine exports.

Gordon said a further spike in oil prices or even the Avian flu could take a toll on the real economy while adverse developments in international capital markets could raise external borrowing costs.

Nevertheless, Gordon said the country’s improving fundamentals should provide for a better shock absorber if such risks materialize.

"At the same time, additional reforms are necessary to decisively reduce vulnerabilities," he said. "If the expanded value-added tax (EVAT) is fully implemented in 2006, the fiscal targets look achievable."

Meanwhile, the inflation rate may average 7.7 percent this year and 7.8 percent next year, according to Gordon.

The forecast for 2005 is less than the Bangko Sentral ng Pilipinas estimate of 7.9 percent. Next year, the BSP expects inflation to average about 8.5 percent.

The IMF does not expect to raise its key overnight rate at the moment because inflation is being driven by higher oil prices and not by consumer demand. — With AFP

ramvingar

November 23rd, 2005, 12:53 AM

that's great news. how i wish i can hear one day that our GNP has grown by more than 8%. hopefully soon.

rowell_sk

November 23rd, 2005, 12:11 PM

RP ranks 4th in offshore I.T. cost index in the world ahead of U.S. who is at number 11.

here's the link.
http://sev.prnewswire.com/computer-electronics/20051122/DATU00922112005-1.html

ramvingar

November 23rd, 2005, 09:37 PM

there seems to be a lot of good news about the Philippine economy in the news nowadays. Reminds me of Ramos' time.We've had a lot of starts and stops in the past. . Hopefully it will continue and this time for good na.

marites4

November 23rd, 2005, 10:20 PM

that's great news. how i wish i can hear one day that our GNP has grown by more than 8%. hopefully soon.
Once the budget deficit reigns in and the opposition forces stop their destabilizing we will hit 8%. take note the article mentions time immemorial political instability. and bad infrastructure. What more if we fix these two problems. the first one is easily fixed and the other will follow.
Although it surprises me I thought we would just be behind India and not Singapore and Malaysia. Oh well maybe next year. At least we crept up 2 notches.

Espma

November 24th, 2005, 07:30 AM

tigidig14

November 24th, 2005, 07:47 AM

^ ye, i like Arroyo, all my relatives dont tho :lol:

ramvingar

November 24th, 2005, 08:42 AM

^ i actually come from a political family. but my grandpa came to Manila precisely to stay away from politics. and so my branch of the family is not involved in it. however, the branches that are active are with Erap and FPJ camp. Only our branch is pro-GMA. And also my barkada here is mixed. Some come from political clans on Arroyo side and others on opposition side. It's funny how we all get along though.

tigidig14

November 24th, 2005, 09:08 AM

^actually our eldest uncle his wife m aunt, is first cousin with arroyo. she went here in chicago when she was still a VP. i didnt get to see her, i was still living in NY. but my mom got invited by aunt, so she sat by her. they talk what she does and all the tsismis. the only thing i remember my mom told me that she's very short :D

sandrin

November 24th, 2005, 01:33 PM

Consolidated public sector deficit sharply lower by R90 B in 9 months
By LEE C. CHIPONGIAN

The government’s consolidated public sector deficit for the period ending September was lower by P90.3 billion due to the improving fiscal position especially by social security institutions.

The CPSD is a record of NG financial positions, its various government corporations and pension funds, government financial institutions, local government units and the Bangko Sentral ng Pilipinas.

In a statement, Finance Secretary Margarito B. Teves said the latest CPSD for the period January to September of P74.6 billion is better than expected and below the programmed ceiling of P164.9 billion for the period.

The latest CPSD number is also an improvement of 55 percent from the same period in 2004.

"The consolidated public sector overperformed by P90.3 billion," Teves said. "This better-than-expected financial position for the first nine months of the year resulted largely from the National Government’s improved fiscal performance and SSIs’ sustained strong earnings."

According to the Department of Finance (DoF), the negative cash positions of NG and GOCCs were offset by the improved financial standing of the SSIs, whose total surplus for the period reached P37.3 billion.

The Government Service Insurance System accounted for P22 billion of this amount. The SSI’s strong financial position was attributed to higher revenues from members’ contributions, investment income and other earnings.

The local government units also performed better during the third quarter with a preliminary cash surplus of P20.4 billion.

The DoF said NG cash position from first nine months was also ahead of program by P37.4 billion. "This reflects the continuous effort of the government to further improve the economy through more vigorous revenue mobilization and expenditure management," Teves added.

In the report, the government corporate sector also remained within its deficit targets with the aggregate deficit of the 14 monitored government-owned and controlled corporations at P29 billion.

Fiscal discipline was achieved through higher operating receipts of some of the GOCCs such as the National Food Authority and lower capital spending for others, including the National Power Corp., Philippine National Oil Co., Metropolitan Waterworks and Sewerage System, and the National Development Co.

tigidig14

November 28th, 2005, 02:32 AM

RP preparing list of projects for Japanese loan

By DENNIS C. SERFINO
The Manila Times Reporter

The Philippine government is now preparing a list of projects to be considered for funding under the 27th yen loan package from Japan, Finance Undersecretary Roberto Tan said.

He said that issues which delayed two projects funded by the 26th yen loan package have already been resolved so the Philippine and the Japanese governments can now move on to the next program.

These projects are the Pasig-Marikina River Channel Improvement Project and the Agno River Flood Control Project, which were delayed by legal impediments and budget constraints.

With these issues already resolved, Tan said the government can now request for a Japanese mission to come to the Philippines to study the list of new projects.

"We will submit to them a list of projects. Then the Japanese mission will come and take a look at it. Then we will process it," he said.

Tan said the project proposals for the 27th yen loan package will focus on building the economic infrastructure further.

"We have ready programs for power, major roads and highways as well as environment-related infrastructure such as pollution mitigation technology, watershed management, and water supply purification for urban consumption," Tan said.

The last loan package committed to the Philippines by the Japan Bank for International Cooperation was in 2003, amounting to 13.401 billion yen (roughly P5.896 billion).

Yen loan packages are concessional official development assistance loans, having long-term payment periods of 30 years with a grace period of 10 years, and with interest rates ranging from 0.75 percent to 2.2 percent a year.

As of last year, the Philippine government’s outstanding debt to JBIC reached P475 billion. The JBIC is the Philippines’ biggest donor, accounting for 61 percent of total official loan commitments. Since it began operations in 1971, the bank has approved 263 ODA projects worth P1 trillion.

The 27th yen loan package was earlier put on hold because of delays in the refund of Japanese contractors’ value-added tax claims amounting to P371 million as of December last year.

Tan said the government’s arrears on VAT reimbursements to Japanese contractors have been substantially settled. "There is only some amount remaining, which will be paid in 2006," he added.

Tan also said both sides are now meeting regularly and closely monitoring the progress of JBIC-funded projects to prevent similar delays in the future.

The Bureau of Internal Revenue has issued a regulation that grants tax credits to the Japanese contractors of the 93.77-kilometer Subic-Clark-Tarlac Expressway Project. The regulation is awaiting final approval from the Japanese government.

Lili

November 28th, 2005, 02:45 AM

That's interesting -- they actually are earmarking loan funds for the Pasig-Marikina River rehabilitation and the Agno River Flood control projects.

richpol

November 28th, 2005, 05:02 AM

3rd Qtr GDP Data will be announced on Tuesday @ 10:00am Manila time. Watch out for it!

tigidig14

November 28th, 2005, 05:04 AM

tigidig14

November 28th, 2005, 06:25 PM

Iranian firm to invest $100 M in Bataan petrochemical plant

National Petrochemical Co., a subsidiary of Iran’s petrochemical giant NPC International, has agreed to infuse $100 million for the reoperation of Bataan Polyethylene Corp. (BPC) after buying out 60 percent stake of the NPC Alliance Corp. of the Gatchalian-owned firm Metro Alliance Holdings and Equities.

A top level official said the Board of Investments (BoI) has approved to transfer all the pioneer incentives earlier granted to BPC because a BoI policy allows the transfer of incentives of its registered company that had been closed for a year to a new company that acquired the old project.

Since BPC closed a year after it went on commercial operation it was not able to avail of the incentives granted by the BoI.

"This is a first major Iranian investment in the country. This would help develop further the local petrochemical industry," the official said.

With the entry of the Iranian firm, the Gatchalians are now limited to a minority 40 percent stake in the NPC Alliance Corp.

The official noted that since Iran is a giant in the petrochemical business, the Philippines is already assured of.

The official further said that aside from continue the production polyethylene, the Iranian firm is also looking at the production of downstream petrochemical products.

It could be recalled that middle of this year, NPC International Inc. (NCPI), an NPC subsidiary, signed the share purchase agreement with the Gatchalian group to operate BPC.

NPCI and Metro Alliance Holdings and Equities had earlier signed a long-term contract for the supply of feedstock to the BPC.

BPC owns a 275,000 ton/year linear low-density polyethylene (lldPE)/high-density polyethylene (hdPE) swing plant.

The idle plant is located at the PPDC Petrochemical Park in Mariveles, Bataan or 140 kilometers from Manila.

The plant ran aground in August 2002 or just a year after since the plant started commercial operation on February 1, 2001. (BCM)

bulakenyo

November 28th, 2005, 08:33 PM

Iran has that much money for business? I mean, the only things I see Iran is spending much on is arms and missiles.

richpol

November 29th, 2005, 03:46 AM

I hope this is just a typo error (5.1% instead of 4.1%,) coz if it's true, it's definitely a lackluster performance for the economy in the 3rd qtr!

GDP grows 4.1% in 3rd quarter
Posted: 10:13 AM | Nov. 29, 2005

XFN-Asia

printable version email a story write the editor feedback

Subscribe to Business News SMS Alerts on your mobile phone! Send ON EXTRA BUSINESS to 2207 for Globe, or EXTRA BUSINESS to 386 for Smart.

THE ECONOMY grew 4.1 percent in the third quarter as measured by gross domestic product (GDP), compared with the same period last year, the government said Tuesday.

Economists polled by XFN-Asia expect third-quarter GDP growth to have been in the range of 4.3-5.0 percent year-on-year. The second-quarter figure was 4.8 percent.

richpol

November 29th, 2005, 03:59 AM

Philippine GDP Grows at Slowest in More Than 2 Years (Update2)

Nov. 29 (Bloomberg) -- The Philippine economy expanded in the third quarter at the slowest pace in more than two years as industrial production shrank.

The $85 billion economy grew a seasonally adjusted 0.6 percent from the previous three months after gaining 1.4 percent in the second quarter, the government said today in Manila. That compared with the median forecast of a 1.5 percent expansion in a Bloomberg survey of five economists.

``Political uncertainty and the volatility of oil prices weighed on the economy,'' Economic Planning Secretary Augusto Santos said at a briefing in Manila.

Slowing growth will make it harder to create more jobs in a nation with the highest unemployment rate in Asia-Pacific region and where a third of the population of 85 million lives on less than 60 U.S. cents a day. President Gloria Arroyo's government has said it may miss even the lower end of its 5.3 percent to 6.3 percent full-year growth target as inflation, especially in fuel prices, damps consumer spending.

Industry fell 0.9 percent in the third quarter on a seasonally adjusted basis, today's report showed. Agriculture rose 3.4 percent, it said.

The Southeast Asian economy expanded 4.1 percent in third quarter from a year earlier, slower than the median forecast of 5 percent growth in a Bloomberg survey of 12 economists.

Government spending fell 2.1 percent in the three months to Sept. 30 from a year ago. Investment declined 3.8 percent over the same period.

To contact the reporters for this story:
Jun Ebias in Manila jebias@bloomberg.net

sandrin

November 30th, 2005, 11:25 PM

HSBC chairman has high hopes for Philippine economy
Posted: 1:26 AM | Dec. 01, 2005
Doris C. Dumlao

THE chairman of British banking giant HSBC continues to have high hopes on the Philippines, but he tempers this perception by saying that the country may soar to even greater heights if the people will only give themselves a little more credit.

Vincent Cheng, the first Asian to be put at the helm of HSBC, was a former legislator and Cabinet advisor in Hong Kong. He said the Philippine economy has all the ingredients of a success story.

Cheng, who was in town Tuesday for the celebration of HSBC's 130th year of operations in the Philippines, told the Inquirer that the bank is showing its vote of confidence in the country by bringing in more investments.

"I'm very confident in the Philippines, but I sometimes think you Filipinos give little credit to yourselves," Cheng said. "You criticize yourselves too much."

Cheng said that the economy should already have been a success, considering that the country has "people who are highly educated, and have the confidence of the international community."

"You also have the entrepreneurs, you have the professionals and you also have the capital," he said. "You have huge remittances coming in."

He said an outsider looking in would have a different perception on how things actually work in the country.

"Sometimes only bad news travel," Cheng said, referring to economic setbacks in the country last year. "Good news doesn't travel as fast."

Asked whether he was worried about the political climate in the country, he said: "I think the measures taken by the government had gained the confidence of the international financial community ... interest rates have come down so we see that the government is taking steps to address imbalances in the economy."

The Philippine government is in the midst of fiscal consolidation, aiming to reduce its budget deficit and debt.

The implementation of a reformed value added tax law is seen to be crucial in the effort to wipe out the deficit within the decade.

"We'd be quite happy to invest more and expand our business here, put up more branches if we're allowed to and hire more people," he said.

One indication of HSBC's optimism, Cheng said, was its choice of the country as its regional business processing hub.

The bank last June opened a five-story, 85,000-square feet office for group backroom service resourcing in Mnaila's Alabang suburb.

"If we didn't have the confidence on the economy, why did we put our processing center here?" Cheng asked. "The cost could be lower in other countries. The fact that we have built our processing center here and we're considering another one shows our confidence.

"We're very pleased with the efficiency, with the service. It underlines the quality of labor you have in the Philippines. I went there and listened. It's amazing!"

Cheng, who has been working for HSBC for 28 years, met Governor Amando Tetangco of the central bank and got a reaffirmation that things were going well in the country.

"When I started working in HSBC in 1978, it was more a regional bank trying to expand into the Americas," he said. "It was much smaller then, but of course today, we're a global financial concern with 255,000 people and operations in 277 countries."

"We were quite small in the Philippines then, but now we've grown our business," Cheng added.

Born in Hong Kong in 1948, Cheng grew up in a working class neighborhood. Over the last three decades, he built up a banking career that catapulted him from chief economist to chief financial officer of HSBC subsidiary Hang Seng Bank. Copyright 2005 Inquirer News Service. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

dancethingy

December 1st, 2005, 01:55 AM

Can I get an AMEN, can anybody say AMEN brothas and sistas

"I'm very confident in the Philippines, but I sometimes think you Filipinos give little credit to yourselves," Cheng said. "You criticize yourselves too much."

Cheng said that the economy should already have been a success, considering that the country has "people who are highly educated, and have the confidence of the international community."

"You also have the entrepreneurs, you have the professionals and you also have the capital," he said. "You have huge remittances coming in."

He said an outsider looking in would have a different perception on how things actually work in the country.

"Sometimes only bad news travel," Cheng said, referring to economic setbacks in the country last year. "Good news doesn't travel as fast."

marites4

December 1st, 2005, 01:58 AM

Amen. What would have made the exclamation was if the HSBC phil. branch head was a pinoy and not a hongkonian.

amras

December 1st, 2005, 03:06 AM

Everyone say, Amen.

i dont know if the over-self-criticizing nature of pinoys came from the fact that we are generally humble and dont think highly of ourselves... which is good in some ways also but sometimes this causes us to lose confidence in our own capabilities. I believe it's time for us to believe in ourselves and ignore what other people thinks about us. After all nobody knows Filipinos and what they are capable of, more than the Filipinos themselves. Kaya natin to! At gaya nga ng laging sinasabi ni @weirdo, basta Pinoy posible! :cheers:

tootsjap

December 1st, 2005, 04:47 AM

ryanr

December 1st, 2005, 04:55 AM

Amen! We do criticize ourselves too much.

stephencua

December 1st, 2005, 05:42 AM

Amen... and amras is right.. basta Pinoy posible!!!

mhe-ann

December 1st, 2005, 05:52 AM

yeah! posible!

manileño

December 1st, 2005, 05:54 AM

this one is very inspiritional.

Speech of John Gokongwei before Ateneo 2004
Graduates ---

I wish I were one of you today, instead of a
77-year-old man, giving a speech you will probably
forget when you wake up from your hangover tomorrow.
You may be surprised I feel this way. Many of you are
feeling fearful and apprehensive about your future.
You are thinking that, perhaps, your Ateneo diploma
will not mean a whole lot in the future in a country
with too many problems. And you are probably right.
You are thinking that our country is slipping-no,
sliding. Again, you may be right.

Twenty years ago, we were at par with countries
like Thailand,Malaysia, and Singapore. Today, we are
left way behind. You know the facts.

Twenty years ago, the per capita income of the
Filipino was 1,000 US dollars. Today, it's 1,100
dollars. That's a growth of only ten percent in twenty
years. Meanwhile, Thailand's per capita income today
is double ours; Malaysia, triple ours; and Singapore,
almost twenty times ours.

With globalization coming, you know it is even
more urgent to wake up. Trade barriers are falling,
which means we will have to compete harder. In the new
world, entrepreneurs will be forced to invest their
money where it is most efficient. And that is not
necessarily in the Philippines. Even for Filipino
entrepreneurs, that can be the case.

For example, a Filipino brand like Maxx candy
can be manufactured in Bangkok --where labor, taxes,
power and financing are cheaper and more efficient --
and then exported to other ASEAN countries. This will
be a common scenario if things do not change. Pretty
soon, we will become a nation that buys everything and
produces practically nothing. We will be like the
prodigal son who took his father's money and spent it
all. The difference is that we do not have a generous
father to run back to. But despite this, I am still
very excited about the future. I will tell you why
later.

You have been taught at the Ateneo to be "a
person for others." Of course, that is noble: To serve
your countrymen. Question is: How? And my answer is:
Be an entrepreneur!

You may think I am just a foolish man talking
mundane stuff when the question before him is almost
philosophical. But I am being very thoughtful here,
and if I may presume this about myself, being
patriotic as well. Entrepreneurship is the answer. We
need young people who will find the idea, grab the
opportunity, take the risk, and set aside comfort to
set up businesses that will provide jobs.

But why? What are jobs? Jobs are what allow
people to feel useful and build their self-esteem.
Jobs make people productive members of the community.
Jobs make people feel they are worthy citizens. And
jobs make a country worthy players in the world
market.

In that order of things, it is the entrepreneurs
who have the power to harness the creativity and
talents of others to achieve a common good. This
should leave the world a better place than it was. Let
me make it clear: Job creation is a priority for any
nation to move forward. For example, it is the young
entrepreneurs of Malaysia, Thailand, and Singapore who
created the dynamic businesses that have propelled
their countries to the top. Young people like
yourselves.

Meanwhile, in the Philippines, progress is slow.
Very little is new. Hardly anything is fresh. With a
few exceptions, the biggest companies before the war
-- like PLDT, Ayala, and San Miguel -- are still the
biggest companies today.

All right, being from the Ateneo, many of you
probably have offers from these corporations already.
You may even have offers from JG Summit. I say: Great!
Take these offers, work as hard as you can, learn
everything these companies can teach and then leave!

If you dream of creating something great, do not
let a 9-to-5 job-even a high-paying one-lull you into
a complacent, comfortable life. Let that high-paying
job propel you toward entrepreneurship instead.

When I speak of the hardship ahead, I do not
mean to be skeptical but realistic. Even you Ateneans,
who are famous for your eloquence, you cannot talk
your way out of this one. There is nothing to do but
to deal with it. I learned this lesson when, as a
13-year-old, I lost my dad.

Before that, I was like many of you: a
privileged kid. I went to Cebu's best school; lived in
a big house; and got free entrance to the Vision, the
largest movie house in Cebu, which my father owned.
Then my dad died, and I lost all these. My family had
become poor -- poor enough to split my family. My
mother and five siblings moved to China where the cost
of living was lower. I was placed under the care of my
Grand Uncle Manuel Gotianuy, who put me through
school. But just two years later, the war broke out,
and even my Uncle Manuel could no longer see me
through. I was out in the streets -- literally.

Looking back, this time was one of the best
times of my life. We lost everything, true, but so did
everybody! War was the great equalizer. In that
setting, anyone who was willing to size up the
situation, use his wits, and work hard, could make it!

It was every man for himself, and I had to find
a way to support myself and my family. I decided to be
a market vendor. Why? Because it was something that I,
a 15-year-old boy in short pants, could do.

I started by selling simple products in the
palengke half an hour by bike from the city. I had a
bicycle. I would wake up at five in the morning, load
thread, soap and candles into my bike, and rush to the
palengke. I would rent a stall for one peso a day, lay
out my goods on a table as big as this podium, and
begin selling. I did that the whole day.

I sold about twenty pesos of goods every day.
Today, twenty pesos will only allow you to send twenty
text messages to your crush, but 63 years ago, it was
enough to support my family. And it left me enough to
plow back into my small, but growing, business.

I was the youngest vendor in the palengke, but
that didn't faze me. In fact, I rather saw it as an
opportunity. Remember, that was 63 years and 100
pounds ago, so I could move faster, stay under the sun
more, and keep selling longer than everyone else.

Then, when I had enough money and more
confidence, I decided to travel to Manila from Cebu to
sell all kinds of goods like rubber tires. Instead of
my bike, I now traveled on a batel -- a boat so small
that on windless days, we would just float there. On
bad days, the trip could take two weeks!

During one trip, our batel sank! We would have
all perished in the sea were it not for my inventory
of tires. The viajeros were happy because my tires
saved their lives, and I was happy because the
viajeros, by hanging on to them, saved my tires. On
these long and lonely trips I had to entertain myself
with books, like Gone With The Wind.

After the war, I had saved up 50,000 pesos. That
was when you could buy a chicken for 20 centavos and a
car for 2,000 pesos. I was 19 years old.

Now I had enough money to bring my family home
from China. Once they were all here, they helped me
expand our trading business to include imports.
Remember that the war had left the Philippines with
very few goods. So we imported whatever was needed
and imported them from everywhere-including used
clothes and textile remnants from the United States.
We were probably the first ukay-ukay dealers here.

Then, when I had gained more experience and
built my reputation, I borrowed money from the bank
and got into manufacturing. I saw that coffee was
abundant, and Nescafe of Nestle was too expensive for
a country still rebuilding from the war, so my company
created Blend 45.

That was our first branded hit. And from there,
we had enough profits to launch Jack and Jill. From
one market stall, we are now in nine core
businesses-including retail, real estate, publishing,
petrochemicals, textiles, banking, food manufacturing,
Cebu Pacific Air and Sun Cellular.

When we had shown success in the smaller
businesses, we were able to raise money in the capital
markets -- through IPOs and bond offerings -- and then
get into more complex, capital-intensive enterprises.
We did it slow, but sure.

Success doesn't happen overnight. It's the small
successes achieved day by day that build a company.
So, don't be impatient or focused on immediate
financial rewards. I only started flying business
class when I got too fat to fit in the economy seats.

And I even wore a used overcoat while courting
my wife-it came from my ukay-ukay business. Thank God
Elizabeth didn't mind the mothball smell of my
overcoat or maybe she wouldn't have married me.

Save what you earn and plow it back.

And never forget your families! Your parents
denied themselves many things to send you here. They
could have traveled around the world a couple of times
with the money they set aside for your education, and
your social life, and your comforts.

Remember them -- and thank them.

When you have families of your own, you must be
home with them for at least one meal everyday. I did
that while I was building my company. Now, with all my
six children married, I ask that we spend every Sunday
lunch together, when everything under the sun is
discussed.

As it is with business, so it is with family.
There are no short cuts for building either one.
Remember, no short cuts.

Saint Ignatius of Loyola, your patron saint, and
founder of this 450-year old organization I admire,
described an ideal Jesuit as one who "lives with one
foot raised." I believe that means someone who is
always ready to respond to opportunities.

Saint Ignatius knew that, to build a successful
organization, he needed to recruit and educate men who
were not afraid of change but were in fact excited by
it. In fact, the Jesuits were one of the earliest
practitioners of globalization. As early as the 16th
century, upon reaching a foreign country, they
compiled dictionaries in local languages like Tamil
and Vietnamese so that they could spread their message
in the local language. In a few centuries, they have
been able to spread their mission in many countries
through education.

The Jesuits have another quote. "Make the whole
world your house" which means that the ideal Jesuit
must be at home everywhere. By adapting to change, but
at the same time staying true to their beliefs, the
Society of Jesus has become the long-lasting and
successful organization it is today and has made the
world their house.

So, let live with one foot raised in facing the
next big opportunity: globalization.

Globalization can be your greatest enemy. It
will be your downfall if you are too afraid and too
weak to fight it out. But it can also be your biggest
ally.

With the Asian Free Trade agreement and tariffs
near zero, your market has grown from 80 million
Filipinos to half a billion Southeast Asians. Imagine
what that means to you as an entrepreneur if you are
able to find a need and fill it. And imagine,
too, what that will do for the economy of our
country!

Yes, our government may not be perfect, and
oureconomic environment not ideal, but true
entrepreneurs will find opportunities anywhere. Look
at the young Filipino entrepreneurs who made it. When
I say young-and I'm 77, remember-I am talking about
those in their 50s and below. Tony Tan of Jollibee,
Ben Chan of Bench, Rolando Hortaleza of Splash, and
Wilson Lim of Abensons.

They're the guys who weren't content with the
9-to-5 job, who were willing to delay their
gratification and comfort, and who created something
new, something fresh.

Something Filipinos are now very proud of. They
all started small but now sell their hamburgers,
T-shirts andcosmetics in Asia, America, and the Middle
East.

In doing so, these young Filipino entrepreneurs
created jobs while doing something they were
passionate about.

Globalization is an opportunity of a
lifetime-for you. And that is why I want to be out
there with you instead of here behind this
podium-perhaps too old and too slow to seize the
opportunities you can.

Let me leave you with one last thought. Trade
barriers have fallen. The only barriers left are the
barriers you have in your mind. So, Ateneans, Class of
2004, heed the call of entrepreneurship. With a little
bit of will and a little bit of imagination, you can
turn this crisis into your patriotic moment-and truly
become a person for others.

"Live with one foot raised and make the world
your house."

To this great University, my sincerest thanks
for this singular honor conferred on me today.

To the graduates, congratulations and Godspeed.

"Ad Majorem Dei Gloriam".

Thank you.

rmb

December 1st, 2005, 06:23 AM

great speech! We need more of those speeches, unfortunately most of us won't listen to those as they tend to be boring, waiting for the speaker to finish the last line. We listen to speeches now and forget it the next day. I hope we change this attitude. :)

sista

December 1st, 2005, 07:52 AM

Wow wise words from 2 good men. I agree with rmb, we need more speeches like those, but the last time I attended a college graduation, the speech was just a promotion to boost the career of the speaker (an official) lol

dancethingy

December 1st, 2005, 05:32 PM

Great for Gokongwei, i never knew our tycoons were patriots, or are they?

MarkiiBoi

December 1st, 2005, 06:12 PM

11-month net foreign portfolio investments surged 394%
XFN-Asia

THE PHILIPPINES gained 2.1 billion dollars worth of net foreign portfolio investments in the first 11 months of this year, five times the net inflow of 425.5 million dollars recorded in the same period in 2004, the central bank said.

On a gross basis, total portfolio inflows reached 5.2 billion dollars, 2.6 times the 2.0 billion dollars figure for the comparable period in 2004, it said in statement.

bagel

December 3rd, 2005, 03:30 AM

Here's an interesting article.

OFW remittances to hit $12 B — WB
By Ted Torres
The Philippine Star 12/03/2005

The World Bank estimates that remittances or money
transfers from overseas Filipino workers (OFWs) will
reach $12 billion this year, 20 percent higher than
the $10-billion projection of the Bangko Sentral ng
Pilipinas (BSP).

Last year, the World Bank reported that remittances
reached $11.6 billion against the official BSP
government figure of $8.6 billion.

The difference in figures is because the BSP reports
remittances made through banks and money transfer
agents that use banks for the transactions. The World
Bank has other formal sources aside from the BSP
figures.

"We believe that the informal sector collections or
remittances could be half the size of the official
one," Dilip Ratha, co-author of the World Bank’s
Global Economic Prospects report, said.

The remittance figure represents 13.5 percent of the
country’s gross domestic product last year. GDP is the
total value of goods and services produced by the
economy.

The Philippines is the fifth leading source of skilled
workers in the world migrant market. That represents
roughly three percent of the world’s migrant
workforce.

The total value of remittances in 2004 is slightly
larger than the net export earnings of electronics,
making OFWs the largest export commodity of the
country.

The World Bank report said that remittances are "the
biggest source of foreign inflows surpassing foreign
direct investments (FDIs), and portfolio investments."
Monthly remittances are about 3.5 times greater than
the flow of foreign reserves, or about five percent of
gross international reserves.

The five leading countries in terms of being the
biggest recipients of remittance money from migrant
workers are India, China, Mexico, France and the
Philippines.

In a teleconference at the World Bank headquarters in
Pasig City, Ratha said the peso had been strengthened
by remittances, the biggest source of foreign exchange
in the country.

It is also one of the single biggest contributors to
poverty reduction.

"A 10-percent improvement in the exchange rate leads
to a 0.6-percent decline in the poverty rate. A
10-percent increase in remittance receipts leads to a
reduction of 2.8 percent in households’ likelihood of
being in poverty," he added.

However, the cost of transferring money from the host
country to the migrants’ country of origin is high.
It’s reported to range from $8 to $12 per transaction.

The World Bank insists that full maximization of
existing technology can reduce that cost to a mere
dollar, thus resulting in almost $1 billion in
transaction costs as additional remittances for home
countries.

The study recommended that government regulators allow
increased competition in the remittance transfer
market to lower costs.

"The Philippine government must forge bilateral pacts
with destination countries to safeguard employment
contracts and ensure just compensation. It should also
encourage banks to open overseas branches to reduce
costs," it said.

Bankers Association of the Philippines (BAP) executive
director Toper Coronel said another reason for the
high transaction cost is the strict implementation of
the anti-money laundering regulations of the host
countries.

"We estimate that condition to account for more than a
quarter of the transaction cost of remittances,"
Coronel added.

The Philippines has been removed from the watch list
of the Financial Action Task Force (FATF) but remains
among the countries that receive stiff surveillance
and restrictions, as well as the so-called
"know-your-client" procedures under the anti-money
laundering campaign.

Unfortunately, the World Bank failed to study the
social impact of the migration of Filipinos, and its
impact on long-term economic growth.

Lack of jobs and poor pay force at least 2,000 to find
work abroad each month, many leaving families behind.

About eight million Filipinos work in dozens of
countries around the world and on many of the world’s
ships.

The government depends on the remittances that
Filipino migrant workers send to their families back
home to prop up the fragile economy, now at risk
because of the continued bickering among the country’s
leaders.

They have been hailed as modern-day heroes because of
their sacrifices and contribution to the nation’s
economy. ‘Encourage them to invest’
Sen. Manuel Roxas II has called on the government to
strengthen its regulatory bodies to encourage Filipino
migrant workers to invest their money in the
Philippines.

Roxas, who chairs the Senate committee on economic
affairs, noted that OFWs have not maximized the use of
banks to send money home.

"There is no confidence in some of the regulatory
bodies that oversee certain areas where remittances of
OFWs used to go. Earnings of OFWs remain in banks and
are not mobilized," he said.

He cited the case of the pre-need industry, pointing
out that the financial woes of some companies scared
off people. OFWs are also reluctant to invest in the
property market because of uncertainty over whether
developers would complete projects.

"If we have stronger regulation of these markets, then
it would be easier and faster for money to flow and
that is how money enters in the real economy," Roxas
said.

Yet while providing a massive boost to the
consumption-led economic growth in the Philippines,
the billions of dollars that millions of overseas
Filipinos send home do little to ease long-term
poverty in the country, according to a recent Asian
Development Bank study.

The money that workers and emigrants send home each
year is spent putting sons, daughters, nieces and
nephews through school, while the rest is blown on
food and village fiestas as well as ill-advised
small-business ventures that usually fail, according
to the study.

Manila has failed to "leverage" the remittances,
estimated at around $7.6 billion, to double that
figure every year, money that could promote
development initiatives, it added.

The labor export program was launched by President
Ferdinand Marcos during the Mideast oil boom in the
1970s.

The over eight million Filipinos migrant workers
include more than a quarter-million seafarers, though
more than 65 percent of those who left the country
were women.

The modern-day diaspora to most of the world includes
about 6,000 working for US contractors in Iraq,
hundreds of thousands of maids in Asia and the Middle
East, and nurses in western countries.

There are 3.33 million permanent Filipino residents,
temporary workers or illegals in North America, who
remitted more than half of the $7.64 billion
officially listed as sent to the Philippines in 2003.

The study said there is a "tremendous potential for
harnessing these remittance flows for more productive
use and as a tool for poverty reduction."

Since two out of three of the overseas Filipinos come
from rural areas, it would be logical for local
governments to package bonds and offer them as savings
or investment vehicles to their residents abroad, the
study said.

Proceeds could fund local infrastructure projects.

It cited the experience of banks in Turkey, Peru, El
Salvador and Mexico, which have tapped the investment
market for amounts ranging from $100 million to $300
million through securitization of overseas workers’
remittances.

Manila’s challenge "lies in addressing the various
regulatory and practical barriers and gaps" to tapping
these fund flows for development, the study said.

Obstacles include the high licensing costs and
restrictive regulations for Philippine banks and
remittance agents, limited financial products
available in financial institutions in rural areas,
and lack of "financial literacy" of migrants and
family members.

The study, believed to be the first of its kind in the
Philippines, cited "extensive anecdotal evidence
suggesting considerable spending for non-essentials
and luxuries" by recipient families.

"Relatives, who neither have the proper business
attitude or appreciation for the hard-earned income,
are asked to manage small enterprises which eventually
fail."

At the end of their temporary contracts, many workers
experience severe economic reintegration problems and
"any savings they may have brought home are easily
exhausted" — especially if they cannot find a new job.
— With Christina Mendez

tigidig14

December 3rd, 2005, 04:59 AM

^thus, remain and proud that OFW is the hero of our country :applause:

bagel

December 3rd, 2005, 05:21 AM

I think it's really significant that overseas remittances make up a greater %age of the GNP than our largest, most profitable export, electronics.

I guess our real most profitable export is our labor.

Sinjin P.

December 3rd, 2005, 07:59 AM

Take a look at what I found in Skybar

Rank Country 2005 GDP (PPP)
millions of International dollars
— World 59,559,770
1 United States 12,332,296
— European Union 12,329,110
2 People's Republic of China 8,091,851[1] (#wp-fn_PRC)
3 Japan 4,009,327
4 India 3,602,894
5 Germany 2,498,471
6 United Kingdom 1,825,837
7 France 1,811,561
8 Italy 1,694,706
9 Russia 1,585,478
10 Brazil 1,552,542
11 Canada 1,111,846
12 South Korea 1,099,066
13 Mexico 1,064,889
14 Spain 1,026,340
15 Indonesia 863,654
16 Australia 638,713
17 Republic of China (Taiwan) 629,858
18 Turkey 570,748
19 Iran 560,348
20 Thailand 559,489
21 South Africa 532,011
22 Argentina 516,951
23 Poland 512,890
24 Netherlands 498,703
25 Philippines 409,445
26 Pakistan 392,526
27 Ukraine 339,676
28 Saudi Arabia 337,268
29 Colombia 336,808
30 Belgium 324,299
31 Bangladesh 303,655
32 Egypt 302,803
33 Malaysia 289,606
34 Sweden 267,427
35 Austria 267,053
36 Switzerland 241,265
37 Greece 236,311
38 Algeria 232,692
39 Vietnam 231,644
— Hong Kong SAR (PRC) 226,766
40 Portugal 203,947
41 Czech Republic 198,976
42 Norway 193,660
43 Denmark 187,721
44 Chile 186,733
45 Romania 183,162
46 Nigeria 173,704
47 Republic of Ireland 164,190
48 Peru 164,110
49 Hungary 162,289
50 Finland 161,099
51 Israel 154,174
52 Venezuela 153,331
53 Morocco 138,006
54 Singapore 124,001
55 Kazakhstan 123,992
56 United Arab Emirates 111,027
57 New Zealand 101,582
58 Iraq 89,800*
59 Slovakia 87,129
60 Sudan 85,461
61 Sri Lanka 85,155
62 Tunisia 83,353
63 Myanmar 78,564
64 Syria 72,174
65 Bulgaria 71,381
66 Belarus 70,524
67 Libya 65,647
68 Dominican Republic 63,594
69 Ethiopia 62,744
70 Ecuador 56,779
71 Guatemala 56,736
72 Croatia 55,638
73 Ghana 54,330
74 Lithuania 49,106
75 Uganda 48,620
76 Uzbekistan 48,137
77 Kuwait 44,675
78 Costa Rica 44,579
79 Angola 43,599
80 Serbia and Montenegro 43,462
81 Slovenia 43,260
82 Cameroon 40,744
83 Democratic Republic of the Congo 40,585
84 Nepal 39,815
85 Oman 39,559
86 Turkmenistan 39,458
87 Azerbaijan 37,841
88 Kenya 37,065
89 Cuba 33,920*
90 Uruguay 32,885
91 El Salvador 31,171
92 North Korea 30,880*
93 Luxembourg 30,674
94 Cambodia 30,579
95 Latvia 30,227
96 Paraguay 29,014
97 Côte d'Ivoire 28,460
98 Zimbabwe 28,304
99 Tanzania 27,006
100 Jordan 26,741
101 Mozambique 25,974
102 Bolivia 25,892
103 Equatorial Guinea 25,439
104 Lebanon 23,638
105 Qatar 23,584
106 Bosnia and Herzegovina 22,840
107 Panama 22,706
108 Estonia 22,239
109 Afghanistan 21,500*
110 Honduras 20,549
111 Senegal 20,482
112 Yemen 19,324
113 Guinea 18,945
114 Albania 18,933
115 Trinidad and Tobago 17,966
116 Botswana 17,207
117 Burkina Faso 16,916
118 Cyprus 16,745
119 Madagascar 16,323
120 Mauritius 16,054
121 Nicaragua 16,052
122 Republic of Macedonia 15,996
123 Bahrain 15,796
124 Georgia 15,522
125 Chad 14,756
126 Papua New Guinea 14,343
127 Namibia 14,198
128 Haiti 14,118
129 Mali 13,532
130 Armenia 13,432
131 Rwanda 12,620
132 Jamaica 12,141
133 Laos 12,101
134 Niger 11,260
135 Kyrgyzstan 10,626
136 Zambia 10,568
137 Iceland 10,548
138 Gabon 9,514
— Macau SAR (PRC) 9,100*
139 Brunei 9,009
140 Togo 8,945
141 Tajikistan 8,711
142 Benin 8,534
143 Moldova 8,157
144 Malta 7,909
145 Malawi 7,507
146 Mauritania 6,876
147 Bahamas 6,085
148 Swaziland 5,646
149 Burundi 5,642
150 Fiji 5,368
151 Mongolia 5,230
152 Lesotho 5,113
153 Sierra Leone 4,910
154 Central African Republic 4,773
155 Barbados 4,735
156 Republic of the Congo 4,621
157 Somalia 4,597*
158 Eritrea 4,250
— Netherlands Antilles 4,175
159 Guyana 3,541
160 The Gambia 3,017
161 Cape Verde 2,992
162 Bhutan 2,913
163 Liberia 2,903*
164 Suriname 2,812
165 Maldives 2,557
166 Belize 2,046
167 Andorra 1,900*
168 Djibouti 1,686
169 Guinea-Bissau 1,182
170 Samoa 1,172
171 Comoros 1,114
172 Seychelles 1,017
173 Saint Lucia 985
174 San Marino 940*
175 Solomon Islands 925
176 Grenada 883
177 Monaco 870*
178 Antigua and Barbuda 835
179 Liechtenstein 825*
180 Tonga 785
181 Saint Vincent and the Grenadines 751
182 Vanuatu 741
183 Saint Kitts and Nevis 626
184 Dominica 448
185 East Timor 370*
186 Federated States of Micronesia 277*
187 São Tomé and Príncipe 268
188 Kiribati 243
189 Palau 174*
190 Marshall Islands 115*
191 Nauru 60*
192 Tuvalu 12.2*

tigidig14

December 3rd, 2005, 08:01 AM

cant beleive malaysia went down

rowell_sk

December 3rd, 2005, 10:32 PM

cant beleive malaysia went down

Malaysia is still richer than us by dividing the GDP by the total population. Remember that we have an 87 million population while that of Malaysia is only 25 million. That quotient is called GDP per capita.

marites4

December 3rd, 2005, 11:08 PM

I think most everyone in here can figure that out^

tigidig14

December 4th, 2005, 12:38 AM

^so you mean if we actually divide the population were supposed to be richer than India and China

marites4

December 4th, 2005, 01:25 AM

yes if we remove all the idle people just making tambay and the 20 kids per politician rule , we'll be richer than india and CHina individually not collectively.

Espma

December 4th, 2005, 02:00 AM

yeah exactly, Vietnam's GDP PPP is higher than Singapore yet we all know Singapore's richer and exports the most among SEA nations.

Sinjin P.

December 5th, 2005, 07:55 AM

In today's news:
Analysts see RP growth, despite political sniping

MANILA – The conflict between President Arroyo and the opposition continues to simmer, but the economy is starting to show signs of growth, contrary to fears it would be paralyzed by politics.

While gross domestic product (GDP) growth in the three months to September was a disappointing 4.1 percent, economists expect fourth quarter growth to come in at almost five percent.

The huge influx of remittances from the eight million Filipinos working abroad has lifted the economy and the stabilizing of oil prices after recent record highs will also boost growth, analysts said.

“We feel the economy is performing better than expected, even considering the type of difficulties we are experiencing,” said Melito Salazar, president of the Financial Executives Institute of the Philippines.

Good showing

He expects GDP growth to be “a little bit lower,” than five percent— a good showing “given the difficulties we have been through.”

“After expanding 4.6 percent in the first three quarters, the economy should be able to post an above-five percent performance in the fourth quarter, primarily due to the strong influx of remittances,” said economist Euben Paracuelles of DBS Bank in Singapore.

Overseas remittances usually surge in the fourth quarter as Filipinos send money home for the Christmas holidays.
This might enable the economy to end 2005 with 4.8 percent growth, Paracuelles said.

“The weaker-than-forecast third quarter growth (of 4.1 percent) places the full-year real GDP outcome on track to reach 4.6 percent,” said JP Morgan economist Sin Beng Ong in a research paper.

Socioeconomic Planning Secretary Augusto Santos concedes that the latest figures make it unlikely the Philippines will now hit its 5.3 percent growth target for 2005 but he is still confident it can approach that figure.

He blamed the slowdown in the third quarter on the poor performance in agriculture, record oil prices and the political turmoil stemming from the opposition’s effort to impeach Arroyo on charges she cheated to win the 2004 elections.

“The political uncertainty brought about by the impeachment case and the volatility of oil prices weighed on the country,” Santos said.

Since June, the country’s attention has been riveted to accusations that Arroyo cheated her way to victory.

The President has denied the charges and her allies in Congress succeeded in quashing an impeachment motion in September—but almost all functions of government have become bogged down in the partisan struggle.

Insulated

Arroyo says the growth so far shows she has successfully insulated the economy from the political environment, but her approval rating still hovers at record lows and many Filipinos are still complaining of hard times.

“The fact is, that up to today, there are questions being raised on the ability of government to get its act together (over) legislative issues that are still unacted upon,” Salazar said.

But businesspeople have learned to “ignore the political situation and continue with their own business,” he added.

Arroyo can boast of some victories such as the implementation on Nov. 1 of a long-delayed expanded value-added tax, which is the cornerstone of the government’s efforts to boost revenues and avoid a looming fiscal crisis.

This will hopefully lessen the burden from the budgetary deficit, leading possibly to an upgrade in the Philippines’ credit ratings and allowing the government to spend more on infrastructure instead of debt servicing.

Santos was confident the economy would rebound in the fourth quarter based on recent positive indicators such as tourist arrivals, power consumption, rising sales of motor vehicles and appliances and improving trade data, as well as the recent strong performance of the stock market.

Spending

Stephen Huang, an economist of the Manila-based University of Asia and the Pacific, agrees, saying that “given our penchant for spending in the Christmas season and renewed confidence in the (lower) oil prices, there is still room for some significant increase,” in growth.

For next year, Santos said the improvement in the economies of Japan and the United States, the two main trading partners of the Philippines, would also lift the economy.

While growth in 2006 will likely be on the same level as in 2005, analysts hope the country will finally be able to focus its attention on the economy.

“The political scenario has already been put in the background. The focus will now be on the economic reforms, fiscal reforms,” said Ron Rodrigo of Accord Capital Equities Inc.

normandb

December 5th, 2005, 12:15 PM

yes if we remove all the idle people just making tambay and the 20 kids per politician rule , we'll be richer than india and CHina individually not collectively.

where are we going to put them?

tootsjap

December 5th, 2005, 03:36 PM

Putting the currrent growth into perspective.

Many Asian nations are not doing enough to ease poverty, despite achieving high economic growth, an Asian Development Bank (ADB) economic expert said.

A recently released ADB report by the bank’s chief economist, Ifzal Ali, titled “Poverty in Asia: Measurement, Estimates, and Prospects,” also said the Philippines, along with China, Vietnam and Uzbekistan, posted a moderately high poverty incidence.

“The pace of poverty reduction depends on how successful policymakers in individual developing member countries will be in generating economic opportunities and ensuring that these are distributed broadly across the working population,” Ali said.

In the Philippines despite the high economic growth the country has achieved in the first half of the year, many Filipinos remain poor and jobless, he said.

Ali places the burden of poverty alleviation squarely on the shoulders of the country’s leadership and its policymakers.

Their task is threefold. First, governments must tackle existing inequalities by providing basic services, access to credit, farm-to-market roads, infrastructure, electricity, water and telecommunications, he said.

“Economic growth is a key driver of poverty reduction. The cross-country experience from Asia and elsewhere shows this clearly and thus policies that promote economic growth must be a critical component of antipoverty strategies,” Ali said.

Second, governments need to promote growth in rural areas, where two-thirds or more of the poor live. This should be done through investments, pricing policies and institutional arrangements in marketing and distribution of inputs and outputs.

Third, the government must give equal attention to rural economy, modern industry and services.

“Where inequalities are high to begin with, growth will have a smaller impact on poverty reduction. Similarly, countries where growth is accompanied by worsening inequality will see the poor gain less from growth,” Ali said.

While the Philippines achieved a 6.3-percent growth rate in the first half of the year owing to the 6.4-percent growth in the first quarter and 6.2 percent in the second, the unemployment rate in the latest National Statistics Office Employment survey was still at 13.7 percent.

Cielito Habito, former director general of the National Economic and Development Authority, said the country is achieving a jobless growth, or an economic growth that doesn’t generate jobs.

“The growth of the economy is not coming from sectors that are not commensurate with generating jobs,” Habito said. “Our growth is narrow and shallow.”

Explaining narrow growth, Habito said the country’s source of growth, in terms of industries, agriculture and services, is limited when it should be broad-based. Shallow growth means there are just too few employment opportunities available.

“We still have a problem. The number of people seeking jobs is higher, and growth is not able to catch up,” he said.

The Think Tank Inc. economist Bienvenido Oplas Jr. said that growth can still be felt through the things that people own or spend on. The classic example would have to be cellular phones.

Oplas explained that two years ago, not too many people had a cellular phone; today almost everybody has one. “That means they can also afford to spend for the load,” he added.

The same explanation goes for the increase in car sales and the mushrooming of Jollibee and McDonald’s outlets all over the country. Oplas said that if growth were not felt by consumers, car sales and the proliferation of fast-food chains would not happen.

Oplas said the economy does generate employment through economic growth, but there are just too many new workers in the labor market.

“This is an offshoot of population,” he said.

The high population, the ADB said, also deters growth.

“The high population growth contributes significantly to decreasing employment opportunities, reflected in high unemployment and underemployment rates,” the ADB said.

Although this may be true, Habito said the country still lacked employment opportunities because the industries where growth came from are not labor-intensive.

He said the country’s labor force is largely composed of informal workers, or those employed in microenterprises, which employ only less than 10 workers and have a capital lower than P5 million.

These enterprises compose as much as 92 percent of the total number of enterprises in the country, Habito said.

“These are not stable jobs, they don’t have regular salaries, benefits,” Habito said.

He also said the country must have more small and medium enterprises in the domestic market.

Habito also said the country should not depend too much on foreign-direct investments to increase job opportunities, but instead develop local agro-based industries.

“This would bring direct benefits to rural areas. It would provide broad-based growth,” he said.

dancethingy

December 5th, 2005, 04:28 PM

Their task is threefold. First, governments must tackle existing inequalities by providing basic services, access to credit, farm-to-market roads, infrastructure, electricity, water and telecommunications, he said.

These issues are being addressed but definitely not at a fast enough rate. I think our debt really slows us down in terms of having funds for infrastructure and social services. I hope that EVAT will alleviate the lack of funds for social services and Mr. Teves has ensured that the allocation of funds from EVAT will be transparent.
In terms if infrastructure, i think Arroyo's plan for expanding rail transportation throughout the country is the way to go. I mean its the only solution i can think of. Let's not forget that this administration did work hard for North Railway and South Railway. The delay of these projects have been mostly POLITICAL.

Second, governments need to promote growth in rural areas, where two-thirds or more of the poor live. This should be done through investments, pricing policies and institutional arrangements in marketing and distribution of inputs and outputs.

In the 2006 budget, a lot of funds were proposed to go directly to small local governments and the proposed cha-cha allows more power and leeway for local governments. I thing the ADB is encouraging the decentralization of power and that is good thing. These proposals address this concern albeit not enough. The North and South railway actualll also alleviates this concern because provides a more efficient form of travel for both passengers and goods from the north and south provinces.

Third, the government must give equal attention to rural economy, modern industry and services.
i don't know what's being done for the improvement of the rural economy, any one? I think the government is also doing all it can to brink modern industry and services here by luring in Call Centers. anything else???

Although i listed what the government has been doing to alleviate these problems, i think more can be done and should be done. The issue of electricity needs to be addressed creatively given the current energy crisis. Corruption (as always) contributes to the lack of funds for the local government because money goes through so many channels before it gets to them that by the time they get it, its gone.

marites4

December 5th, 2005, 04:58 PM

where are we going to put them?
In a work camp.

sugbuanon

December 6th, 2005, 05:55 PM

Gov't privatizing GOCCs to concentrate more on infrastructures

By Luzi Ann R. Javier

MANILA, – Finance Secretary Margarito Teves said the national government is freeing itself the responsibility of running a number of government corporations through privatization to be able to concentrate more on building infrastructures to attract more investments.

In a speech at today’s World Congress of International Association of Financial Executives, Inc. (IAFEI) at the Makati Shangri-La Hotel, Teves said, private enterprise is better suited to run and restore to financial health, government corporations that have been bleeding the national coffers.

“Our privatization policy objectives extend beyond simply raising funds for the government’s coffers. We believe that private enterprise is in the best position to manage, to take risks and to innovate,” Teves said.

Finance Undersecretary Jay Singson said the government sold more than P8.3 billion of non-energy assets this year. He said the government’s actual earnings would be P2.3 billion, after paying debts related to the assets sold.

With these bleeding government corporations in the hands of the private sector, Teves said, “government, for its part, should focus in providing the infrastructure and environment that will allow private enterprise to thrive.”

“Our privatization program currently offers several opportunities in the pipeline that we invite you to consider. They range from the simple disposal of real estate assets to the privatization of the power plants being operated by the National Power Corp. (Napocor),” he told the financial executives.

He said state subsidies to losing government corporations have limited the national government’s capacity to provide basic services such as education, health and national security.

He said, as a result, the “government focused on reformulating its policies to reduce or eliminate state subsidies that distorted market behavior and allow for greater private sector participation.”

However, he clarified that the government’s privatization policy involves more than just improving its cash flow generation, noting that other long-term economic benefits were seen from the plan.

“In fact, studies have shown that the less government gets involved in business, the better it is for the economy,” he said, as he called on financial executives to monitor “and even participate in our privatization program.”

tigidig14

December 7th, 2005, 12:00 AM

^^ yehey :tyty:

Lili

December 7th, 2005, 12:36 AM

So what are the GOCC's to be privatized? How do you ensure that this will not drive the prices up absent government subsidies? I'm not an economist so I don't have the answer to this question if this is even a legitimate question.

I'm quite concerned that the government is pushing for more taxes and yet pushing for privatization. And I thought that more taxes meant more government and less taxes less government. The increased taxes are therefore really just meant of debt servicing, more than provision of services.

sandrin

December 7th, 2005, 04:28 PM

It appears that the only way for the Philippines to attract huge foreign investment is by easing out the rules on foreign ownership of the local properties. With that scenario in mind, I think that the Pinoys should start buying out more properties so as not to be left behind by the moneyed aliens in the future. Build your empire now!

Philippines risks being left behind in ’06

Most Southeast Asian economies will likely outpace the Philippines next year, as persisting political uncertainties are expected to drag the country’s economic prospects next year, an economist from the University of Asia and the Pacific (UA&P) said yesterday.

However, university vice-president Dr. Bernardo M. Villegas said the Philippine economy could reverse its fortunes, and would likely grow at record highs, if necessary changes to the Constitution -- especially its restrictive nationalist economic provisions -- would be implemented next year.

Citing data from the Asian Development Bank, Mr. Villegas said the Philippine economy, as measured by the gross domestic product (GDP), would likely grow 4.8% in 2006, sharply slower than the government’s economic growth target of 6.3%-7.3% for next year.

NOT GOOD ENOUGH

"We cannot afford to be complacent. We cannot say that [our GDP growth] is good enough," Mr. Villegas told reporters. "[GDP growth of] 4%-5% is not good enough because our peers are practically surpassing our growth rates."

Next year, he pointed out that Vietnam’s economy would likely grow 7.6%; Indonesia, 5.9%; Malaysia, 5.3%; and Thailand, 5%.

He said GDP projected for the Philippines next year would be only slightly higher than that of Singapore, which is likely to post 4.7% growth.

He said the influx of foreign direct investments (FDIs) in neighboring countries would likely be sustained next year despite expectations that world oil prices would rebound to a high regime next year.

FUNDAMENTAL PROBLEM

"The problem is the Philippines cannot attract the same amount of foreign investments because there is so much prohibition regarding foreign ownership in our Constitution," Mr. Villegas said.

Under Article 12 of the 1987 Constitution, foreigners and foreign entities can own only up to 40% equity in business ventures in the country. Foreigners are also prohibited from ownership in certain sectors like media and education. They are also restricted from having 100% ownership of land.

Mr. Villegas said that, with these restrictions, the Philippines was able to corner only $469 million worth of foreign investments in 2004, well below the billions of dollars in investments poured into neighboring countries last year: $16 billion in Singapore, $4.6 billion in Malaysia, $1.6 billion in Vietnam, and more than $1 billion each in Indonesia and Thailand.

The economist said the Philippines stands to gain as much as $3 billion to $5 billion in investments for the next three years, if the 1987 Constitution would be amended to lift restrictions on foreign equity ownership. He said the government must consider changing the economic provisions of the Charter to allow 100% ownership of foreigners in all entities, including education, telecommunications, and media.

"We really have to remove all the nationalistic restrictions in our Constitution, if we want to see the economy grow," Mr. Villegas told reporters.

He said the economy would likely grow to between 7% to 9% after amendments to the Constitutions will have been implemented. The highest GDP growth in the last 15 years was recorded last year at 6.1%.

FVR-JDV TANDEM

Specifically, he said economic growth after Charter Change would come under the leadership of former President Fidel V. Ramos and House Speaker Jose C. de Venecia, Jr. The economist credited the tandem of Messrs. Ramos and De Venecia for economic reforms like liberalization of telecommunications and oil industries that led to more investments between 1992-1998.

"They have proven themselves before. It was during their terms that the economy started to take off," Mr. Villegas said.

The UA&P economist had earlier expressed support for Mr. Ramos’s proposal to replace the current presidential system by amending the 1987 Constitution. Mr. Villegas was a delegate to the constitutional convention that drafted the Charter in 1987.

While Charter amendments can boost economic growth next year, Mr. Villegas warned that a slowdown of the Chinese economy would be disastrous for the Philippines.

The Chinese economy has grown an average of more than 9% in the past three years due to the continued trade liberalization, and economic policies that attracted foreign investments.

Based on a worst-case scenario presented by Hong Kong-based Credit Lyonnaise Securities Asia, he said once the Chinese economy overheats and slows down to 6%-7% next year, Philippine GDP would likely drop to 1.2%, as Manila’s exports to Beijing might decline.

Mr. Villegas pointed out that exports to China -- basically agriculture products -- now account for about 30% of total merchandise exports of the Philippines.

He said Credit Lyonnaise sees the Chinese economy slowing down next year as companies that set up shop there are finding it increasingly difficult to make money in their core businesses due to growing competition for the Chinese market.

However, Mr. Villegas expressed optimism the Chinese government would prevent a slowdown in the economy at least until the 2008 Summer Olympics are successfully staged in Beijing. "China would do everything not to discourage potential investors for the Olympics with a slower economic growth," he said. -- Jeffrey O. Valisno

manileño

December 7th, 2005, 04:31 PM

Parliamentary Federal na!

kyle@1008

December 7th, 2005, 05:55 PM

kyle@1008

December 7th, 2005, 05:57 PM

where are we going to put them?

we'll follow what the germans did... *akward silence

manileño

December 7th, 2005, 05:57 PM

like start buying equities? ahehee, i wanna make my own company. soon

kyle@1008

December 7th, 2005, 06:04 PM

good... you can start by buying HSBC, I'll lay my sights on the international food chains any other takers??

kiretoce

December 7th, 2005, 07:15 PM

Here comes Vietnam
By Antonio C. Abaya 8 December 2005

President Arroyo no doubt got carried away by the euphoria from the exceptional victory of the Philippines in the recently concluded 23rd Southeast Asian Games when she gave notice, during her speech at the closing ceremonies, that the Philippines was “on the road to becoming a sports power in Asia” and is also on the way to becoming an economic force soon.

Well, how soon is soon? She didn’t say, but as an economist she must know that the economic tigers of East Asia, which have all become economic powers, enjoyed GDP growth rates of from 8 percent to as much as (in the case of China) 12% over a period of 20 years — or 80 quarters — largely through the export of manufactured goods.

Are we there yet? Are we even getting closer? Not by a long shot. It can be said that the competition for becoming the next East Asian tiger would be between Indonesia, Myanmar, Vietnam and the Philippines. And the empirical evidence favors Vietnam, not the Philippines.

The Philippines used to be the most economically successful country in East Asia, second only to Japan, until the mid-1960s, when we started to be overtaken, first by Taiwan and Hong Kong, then by South Korea and Singapore, then by Malaysia and Thailand, for reasons detailed in my article “Why Are We Poor?” (Dec. 4, 2004) and other articles.

Unless there is a major upturn in our economic development and that upturn is sustained over a period of at least 10 years, we are in danger of being overtaken next by Vietnam.

The GDP statistics of the Asian Development Bank — accessed through www.adb.org — indicate a trend in favor of Vietnam. For the period from 1999 to 2004, Vietnam’s GDP steadily grew (4.8, 6.8, 6.9, 7.1, 7.3 and 7.7%) or a six-year average of 6.8% per annum.

According to the latest issue of The Economist, the Vietnamese economy will grow by 8.1% in 2005, raising their seven-year average to 7.0% per annum.

Vietnam’s average would even be higher if the growth rates from 1993 to 1997 were included, which ranged from a low of 8.0 to a high of 9.4, before the Asian financial crisis of 1997 struck it down, as it did everyone else’s.

For the same period, the Philippines’ GDP grew (3.4, 4.4, 1.8, 4.3, 4.7. and 6.1%) or a six-year average of only 4.12% per annum.

Indonesia’s grew even less: 0.8, 4.9, 3.8, 4.4, 4.9 and 5.1%, or a six-year average of 4.0% per annum.

The big surprise is Myanmar’s GDP which grew 10.9, 13.7, 11.3 and 10.0% in the period from 1999 to 2002, or a sizzling four-year average of 11.5% per annum. But Myanmar is starting from a much lower base, so it is not an immediate rival to Vietnam, Indonesia or the Philippines.

In an article titled “Changing Gear” in its Nov.26-Dec. 2 issue, The Economist noted that the proportion of the Vietnamese population that was living below the poverty line has decreased from 58% in 1993 to only 20% last year; that the output of the country’s automotive industry grew by 43% since August 2004; and that Vietnam is now a net exporter of oil.

Vietnam is “changing gear” in the sense that the underlying animus in Vietnam’s economic boom has been the shift of many subsistence farmers to more productive pursuits such as coffee or prawn farms, or work in textile plants, shoe factories and other light manufacturing industries.

This last point is emphasized in an article titled “Vietnam Revs Up” in the Nov. 28 issue of Newsweek. It reports that Vietnam will get about $5.4 billion in FDI or foreign direct investments this year, most of it from Japan and Taiwan, and most of it plowed into light manufacturing industries. (I do not have the exact figures, but the Philippines’ intake of FDI in 2005 is only about $400 million.)

Newsweek reports that “Vietnam is a throwback to Asia’s export-driven economies, which thrived until China emerged as a world-beating manufacturer in the 1990s.” Taiwanese investors are repeating in Vietnam “their island’s own rise to affluence on the back of export-led light manufacturing.”

Many of the new Japanese investors in Vietnam have been discouraged from going into China because of growing anti-Japanese feelings among the Chinese due to controversies over Japan’s revisionist history books that gloss over Japanese atrocities in China during the Second World War.

So “Japan’s investment flows have shifted southward.” But why not southward to the Philippines? Probably for the same reason American manufacturers chose Taiwan and Hong Kong over the Philippines in the 1960s: the high cost of labor here.

In Vietnam, a technician in a Japanese software company would earn the equivalent of US$85 or P4,760 a month, low by Philippine standards. The minimum wage in factories is equivalent to US$38 or P2,128 a month, which is about the entry level wage for domestic helpers in the Philippines.

But, as in Thailand and Indonesia, food in Vietnam is cheap because of an efficient, largely typhoon-free agricultural sector. By contrast, the price of food in the Philippines in relation to income is high. Calculated on the basis of purchasing power parity, wages go a longer way in Vietnam than in the Philippines.

For foreign investors, another advantage of Vietnam over the Philippines is the absence of militant communist labor unions like our KMU. According to Lenin, labor unions are the transmission belt of the revolution, since the industrial proletariat are supposed to be at the forefront of that revolution.

Since the government of Vietnam is communist, there are no strikes against capitalist enterprises by communist labor unions, unless ordered by the communist government.

Like China, Vietnam acknowledges and welcomes foreign capitalist investors and foreign capitalist markets for its agricultural and industrial exports, without which its high economic growth would have been impossible. Its socialist centrally planned economy was revamped in 1987, allowing the reintroduction of capitalism and the profit motive.

In 2003, Vietnam’s exports totaled $19.9 billion, up from a mere $620 million in 1984. Vietnam has no intention of becoming another hermetic North Korea — the ideal economy of Filipino communist ideologues and their media allies — which exported only an estimated $1 billion in 2003, compared to South Korea’s $201.3 billion.

But, of course, as a communist country Vietnam does not enjoy “absolute freedom of the press” and has no use for American-style political liberalism. The Communist Party enjoys monopoly of power and does not allow any political opposition, under the concept of “democratic centralism.” Meaning, all political debates are confined to within the inner and higher circles of the Communist Party.

But being “communist” does not mean “straightlaced”. For the past 15 years or so, Vietnam has been rated one of the five most corrupt countries in Asia, along with Indonesia, the Philippines, China and India, in the annual 12-nation surveys conducted by PERC Ltd. of Hong Kong.

But, as PERC noted in its latest report (in the Inquirer, Dec. 6), while Vietnam shared the Philippines’ poor reputation in fighting corruption, “it has not stopped one of the most rapid rates of economic growth in the region.”

The same can be said of China. Contrary to popular myth, corruption, by itself, is not a hindrance to economic growth, as long as the correct economic strategies are followed. The Philippines has not only been plagued with corruption, it has also chosen the wrong economic strategies, one after another. A double whammy that has pulled us down from the near-top to the near-bottom.

And for Filipino communists (as well as liberals) who object to a national ID card, read what Vietnam has.

In an article titled “Innovation, Discipline and Abundance in Vietnam” — which first appeared in the Nov. 17 issue of The Manila Times and is now archived in the reference section of www.tapatt.org — Moje Ramos-Aquino wrote:

“Every community council (similar to our Barangay) maintains a National Family Record where the names and number of residents (parents, children, etc) are recorded. The council officers conduct a random check on each family every now and then. When a family member is missing, an explanation is demanded. When anyone travels to another place or province for longer than a day, he needs to ask permission from the council, then registers his presence in his destination…..” Filipinos, communist and liberals alike, would howl at such impositions.

But say “Welcome” to the next Asian tiger. Unfortunately, it is not the Philippines.

marites4

December 7th, 2005, 07:47 PM

They should just stop looking behind our back and concentrate on going forward. I agree with GMA the seagames is another good omen that the phils. is coming back. It is just the damn politicians and doomsayers who keep holding it back.

dancethingy

December 7th, 2005, 08:39 PM

Oh Cmon and give me a damn break. Why can't we just stop comparing ourselves to ohter countries and focus on what we have to do as country to get better!!!!!!!!!!! I mean we just can't get better going around saying, Oh my God Vietnam, Vietnam, Vietnam, Vietnam this, Thailand that, OMG where so fucking behind, OMG OMG,

It's becoming redundant and annoying. This "give me grief everyone's doing better than us" attitude isn't going to help us, so just shut up and let those who have something to say or do just say and do their part.

We have such a great capacity to highlight other countries positive characteristics and then simultaneously highlight our negatives that its starting affect our citizens' morale. Vietnam is still a communist country, and that means plenty are oppressed, far more than here. When the gates of freedom of expression flows wide open, IF IT ACTUALLY OPENS, we'll see how they fare. We're doing things the hard way, we're doing things the democratic way. China itself has many very serious problems that it is purposly trying not to deal with, they are putting the painful process off for some other time, but their unbelievable growth rate just overshadows everything. Look at India, they have atleast 300 million people living below $1 a day, hundreds of millions more under $2. So why aren't they screaming apocalypse now, "our country is *&($&T$ up its never going to get better!" the Dhavari suburb if Mumbai is home to the largest slum in the world and has existed there for centuries, isn't that a problem far more insurmountable than ours???????? Rural China is at the brink of social chaos and no one's focusing on that.

With every problem comes a solution, there's an anti-thesis to everything. The key is to work hard, be ambitious, and be positive. We aren't going to get anywhere through Bitching and acting like defeatists.

Hello, Europe did not become an advanced continent in a period of 10 years. I think they wallowed in the middle ages for a while.

kyle@1008

December 7th, 2005, 08:46 PM

in other words ;
rome wasn't buid in a day...
there's no shortcut to success...
the grass is always greener on the other side
.... a hummingbird flies and floats but it is still a stone colored pony in the fence..

kiretoce

December 7th, 2005, 08:55 PM

^^ How very Zen....ohmmm.... :sleepy:

kyle@1008

December 7th, 2005, 09:03 PM

Ohmmmmmmmmm.... *farts

Lili

December 7th, 2005, 09:25 PM

^ classic Haiku

:lol:

mysaong03

December 7th, 2005, 09:37 PM

we have proven our resilience even w/ the absence of FDI's, so these comparative data reports are sometimes too exaggerated & unprotective of us :( ignore them :)

tigidig14

December 7th, 2005, 11:20 PM

marites4

December 8th, 2005, 12:09 AM

yup you've already lost if you keep dwelling on negativity. Lets just concentrate on getting to the finish line and focus on working but with a little more urgency and less laxing.

tigidig14

December 8th, 2005, 12:30 AM

^kelan kaya boboto ng presidente si sharon, dami nyang fan sa pamilya ko huh, :lol:

kiretoce

December 9th, 2005, 04:40 PM

A rich country pretending to be poor
December 09, 2005

I certainly have no time for Imelda Marcos. Why she isn’t in jail entirely escapes me, but for once she got it right. The Philippines is rich in the mineral wealth it owns but remains poor because it doesn’t exploit it.

One of the reasons it doesn’t exploit it is because of the strong opposition to it by various groups, including, sadly, the Church. I say “sadly” because the Church’s role could be a positive one, not the negative one it now is.

Those who oppose mining are, quite simply, hypocrites. They use mined products yet want to ban mining for the very products they use themselves. This is mental dishonesty, duplicity, call it what you will they’re people who don’t deserve to be listened to.

So I will not argue with anyone who opposes mining carte blanche, yet uses mined products. They are not credible, they can’t be against something they use themselves. And they can’t say: “Do it somewhere else.” That’s about as un-Christian as you can get. Or selfish, and neither is acceptable to me.

Today’s modern world cannot exist without metals (or cement and other quarried products) and the people who oppose mining live in this modern world. If they are to be true to themselves and their ideals — of stopping mining — then they must stop using mined products. But how are they going to live?

Like a stone-age man? Because that’s their only option. If they honestly believe in stopping mining, then they must be true to themselves and give up everything that comes from a mine.

As a start, what will they live in. Cement is quarried, so is sand and gravel. You can’t live in a wooden house because that means cutting down trees. A cotton tent perhaps. I’m not being facetious, I’m deadly serious. You can’t oppose something and yet use it. No more spoon and fork, no gold chalice for communion. Or a wedding ring. And if they want to wear clothes they will have to be only of natural fibers hand-sewn with a bone needle.

But I think I’ve made my point, the modern world is totally dependent on mined products. So we can’t stop it. What we can do, and should do is see to it that the least possible damage to the environment is done. And that the land is restored once the mine is finished.

This is called “responsible mining.” And part of that responsibility includes sustainable development. The Church, which currently wishes to ban mining, could instead be a most effective force in ensuring that mining is done responsibly. Which means not only minimal damage to the environment but also development of the local community — creating jobs and building schools and hospitals, roads and bridges. And developing alternative income sources for when the mine finishes. That’s sustainable development, introducing into the local community business activities that can go on beyond the life of the mine. This is something the Church is in an excellent position to do: Be a positive force in ensuring that mining is done responsibly rather than a negative force trying to stop something they use themselves.

The government should also act in a much more transparent manner, and put in place systems that automatically remit to the local governments and the local indigenous people the percentage of the royalties the law mandates they get.

If it did, the government could gain better acceptance of mining, particularly if it took the royalties (and maybe taxes) mining companies pay and applied them to specific community development projects. Not just dump them into the national treasury. A good example of this would be to build schools. We need 40,000 classrooms at the moment. A classroom costs P250,000 to build. That means P10 billion is needed to build those schools. On a royalty of 1 percent, that would need mining revenues of P1 trillion. An entirely achievable amount given that the export potential of mining is estimated to reach $24 billion over the next few years ($4 billion annually in the next six years). Twenty-four billion dollars is P1.4 trillion. So it’s there.

Saudi Arabia is a rich country because it has an asset it can sell: oil. The Philippines is a poor country because it has an asset it doesn’t sell: mineral products. The country is the fifth most mineralized country in the world. It is one of the richest sources for gold, copper, nickel and chromite in the world. It ranks second in gold and third in copper. And it has 20 percent of the world’s nickel resources. Yet it doesn’t take advantage of it to uplift the rural poor out of poverty, as it could do. Mining accounted for less than 2 percent of the country’s total exports during the past five years. It could be 25 percent as it was in the ’70s, or more.

As to ecological damage, yes there is some, it’s unavoidable. But it can be minimized and the land can be put back into serviceable state once the mine is finished. Mines have a limited life, once the ore has been extracted the mine is finished. The Philippine Mining Act mandates this. Mining companies must put aside an amount equal to 3 to 5 percent of their annual direct mining costs to be used to rehabilitate the area after the mine closes.

The Supreme Court has confirmed that foreign companies can develop a mine and initial interest has been high. But whether that will develop into the major industry it could be — an initial US$6.5 billion of direct investments within the next six to 10 years, with annual exports reaching US$3 to 4 billion — is up to the Filipino.

The national government under President Arroyo, is fully supportive but many local governments are not. Yet they’re the very ones who’d most profit from a mine in their area — they’d get reelected by people who’ve finally got a well-paying job and a vibrant community.

It makes no sense that they oppose, yet they do. Encouraged, too often, by imported NGOs that care not a whit that Filipinos have a decent life, only that a tree be saved. Well I want trees to be saved, too (and I’ve been active in stopping illegal logging and planting trees so I can talk with some moral authority). Too many of the NGOs I’ve seen just want to stop something, and offer no alternatives. This is irresponsible opposition. Responsible opposition would offer viable, specific alternatives. I have no time for people who oppose without offering something else.

Over half the Philippine population lives in poverty (the real number, not the government-fabricated one). If mining is developed that number will be dramatically reduced. If mining is stopped those poor will remain poor — unless the oppositors provide an alternative income. If they don’t then they must accept that it is they, no one else, who is keeping 40 million or so Filipinos without even enough food to eat, let alone educate their children, heal their sick, provide adequate shelter, etc.

Mining companies will do all of that.

So, you who oppose, you provide all that or do something far more worthwhile for the country and the community. Turn your attention, and energies to stopping illegal logging and getting actively involved in planting trees on the five million hectares of denuded forests.

Be a positive force in the community not the negative one as now.

manileño

December 9th, 2005, 04:51 PM

the Church? i believe the reason they prohibit mining in some areas (Cordilleras, Mindanao) is because these areas belong to indigenous tribes. Part of their 'ancestral domain'. The Manobos, Bukidnons, etc of Mindanao are trying to protect their areas from being sold to and exploited by foreign investors/mining companies. Everyone, every tribe claims parts of the interior that's why Mindanao is still mostly untapped. (Peace villages? Tri-people?)

it's a very slow process of land reform in phil. it should have been done after the war right when the republic was still fresh. Am i right?

dancethingy

December 9th, 2005, 05:29 PM

I'd rather these lands stay at the hands of these tribes. We should preserver our natural wonders because preserving them would ensure they stay with us for thousands of years. Mining in this country has a very bad history of destroying everything it touches. I don't trust foreign or local mining companies with a single foot of land, PERIOD.

dancethingy

December 9th, 2005, 05:38 PM

This author is daydreaming and must come back to reality. All this talk of "we must be environmentally conscientous when mining" and "the government should put up LAWS and SAFEGUARDS." All such talk is bullshit, it's just talk, just like everything that's come out of the mouths of our nasty bastard politicians. This writer must be on crack to believe corporations and government will believe what drivel comes out of his or her mouth.

That claim that mining will lift our rural and urban poor out of plight is also a crap load of bullshit. Mining will lift the rich and politicians to new heights of wealth.

marites4

December 9th, 2005, 06:41 PM

Yup i agree. People have been badly burned, remember marcopper in Mindoro. These companies will not care other than profits if they're not carefully scrutinized and proper safeguards are in place. Our govt. has a bad track record of not really dilligently doing their homework for the interests of majority. A big commision is all it takes. Naia 3, comelec machine etc.etc..

manileño

December 9th, 2005, 06:59 PM

that happens often in China. remember just last week, more than a hundred miners got trapped and died in an underground operation. and was it the yangtze that got contaminated by the spill, and caused deaths to crops and people in the rural?

dancethingy

December 9th, 2005, 07:53 PM

So while i think we are missing out on profits, i think we should wait till we know for sure things will be carried out properly. I don't trust our damn politicians. I wouldn't trust them on how to replace a lightbulb, they might run away with the new one.

sandrin

December 10th, 2005, 02:55 AM

As predicted.......competition is in

Con-Com opens economy to aliens
By EFREN L. DANAO, The Manila Times Senior Reporter

The Consultative Commission on Thursday evening approved the opening of the Philippine economy to the full participation of foreigners.

The Constitution limits foreign ownership of business, educational and other institutions to 40 percent.

Commission members Gerardo Espina and Raul Lambino said that in approving the entire section on National Economy and Patrimony, the panel allowed full foreign ownership of companies engaged in exploration and exploitation of mineral resources, the media, public utilities, advertising agencies and colleges and universities.

"This will widen the area of competition," Espina said at the Balitaan sa Hotel Rembrandt media forum in Quezon City.

Espina, former deputy speaker and now mayor of Naval, Biliran, noted that Filipinos do not have the big capital needed to exploit mineral resources.

Espina and Lambino said that the other provisions approved by the commission are:

• The inclusion of the phrase "over which the Philippines has historical rights and legal claims" in the definition of the national territory

• The abolition of the Judicial and Bar Council

• The retention of the Commission on Appointments

• The removal of the provision that makes the military the protector of the people

• The deletion of the ban on political dynasties and on term limits.

Espina said the article on national territory would strengthen the Philippine claim to contested territories like Sabah in Malaysia. He noted that the phrase "over which the Philippines has historical rights and legal claims" was found in the 1973 Constitution, but was deleted in the 1986 Charter.

"The Judicial and Bar Council should be abolished because it is a mafia," Lambino said.

He said the commission wants to return to the Commission on Appointments the confirmation of all nominees to the posts of chief justice and associate justices of the Supreme Court.

"There will be a Judicial and Bar Commission, which won’t have any incumbent Supreme Court member, who will nominate to the Supreme Court candidates for the Court of Appeals and inferior courts," Lambino added.

He said the Commission on Appointments would also cover nominees to ambassadorial posts and promotions in the armed forces to the rank of major general and up.

Espina said the commission merely stated that civilian authority shall be supreme at all times to the military and it deleted the "protector of the people" clause.

"This was used by the military as an excuse to intervene in EDSA 2. It invites and justifies military adventurism," he maintained.

Lambino and Espina are confident the commission can submit its proposed constitutional amendments to President Arroyo on December 15.

The commission’s secretary-general, Romela Bengzon, said the national patrimony proposal is "a well-drafted Constitution [that] should not have more economic policies" and "should be more on general provisions."

Commissioner Vicente Paterno, chairman on National Patrimony and Economic Reforms, said that consultations conducted showed that people are wary of full foreign ownership in some industries.

"The reason is there is a clear mandate from the people. There were some objections to full ownership in certain industries. That’s why we need to leave the discretion to [Parliament]," Paterno said.

Under the commission’s proposal, foreigners may acquire alienable lands of public domain limited to agricultural lands but under a lease period and area limitation set by Parliament.

On educational institutions, foreign ownership of elementary and high schools is still limited to 40 percent. But foreigners can fully own colleges and universities.

Sen. Joker Arroyo played down the significance of the Con-Com recommendations.

"The Con-Com is acting as if it were the Congress. It is taking itself too seriously," he said.

He pointed out that the commission is only a study group and that it can merely recommend what amendments should be proposed.

He recalled that former President Joseph Estrada had created a similar commission headed by former Chief Justice Andres Narvasa.

"They submitted a report to Erap and then it was shelved, forgotten," Senator Arroyo said.

Commissioner Alex Magno, a member of the Committee on National Patrimony and Economic Reforms, said full foreign exploration will open the door to investments.

--------------

I want the following to be added:
Only college graduates must be allowed to run for presidency/prime minister.
The maximum allowable period for a presidential/prime minister position would be 2 terms w/c is equivalent to 10 years; with 5 years/term.

dancethingy

December 10th, 2005, 05:23 AM

I want the following to be added:
Only college graduates must be allowed to run for presidency/prime minister.
The maximum allowable period for a presidential/prime minister position would be 2 terms w/c is equivalent to 10 years; with 5 years/term.

Great idea Ate Sandrin. Also, competition is a GOOD thing, we shouldn't be afraid of competition cause the Filipino spirit is a creative and a fighter, there's no reason for us to think that just because they're richer and more powerful that they'll win. Competition should push us to greater heights, we shouldn't cower damn it.

JAMAICUS

December 11th, 2005, 02:14 AM

May I add this:
"Manuel Roxas Presidency

Vital Signs

Population: 19.23 million (1948)

GDP:
Php 85,269 million (1947)

GDP Growth Rate:
39.5 % (1946-47 average)

Income Per Capita:
Php 4,434 (1947)

Total Exports:
Php 24,824 million (1947)

Peso - US $ Exchange Rate:
Php 2.00 to $1

Economic data provded by Jonathan and Eduardo Malaya, editors of So Help Us God... The Inaugurals of the Presidents of the Philippines, published by Anvil Publishing."
-From "THe Presidency Project" website
MY GOD!OUR ECONOMY IS SO STRONG BACK THEN! GDP GROWTH 39.5% :eek2: !!!!!!!!!!!!!!!!!!! IT SEEMS THAT WE ARE BETTER OFF AS AN OPEN ECONOMY!THE GROWTH IS ALWAYS DOUBLE DIGIT BACK THEN(BEFORE MARCOS)!!!!!!!

tigidig14

December 11th, 2005, 02:27 AM

^ i cant wait to see that monetary value, how many months more guys, what u think, just a year to wait :naughty: huh, huh, huh

marites4

December 11th, 2005, 02:38 AM

that means our gdp back then was 2000 us dollars something. Man 2000 dollars was a lot of dough back then.

tigidig14

December 11th, 2005, 02:41 AM

^dough or dope

JAMAICUS

December 11th, 2005, 02:48 AM

Maybe, Just maybe, if our population was sustained, our GDP distribution maybe comparable to a developed nation right now.

tigidig14

December 11th, 2005, 03:02 AM

^ or distributed equally but wouldnt that be communist

MarkiiBoi

December 11th, 2005, 06:21 AM

tyronne

December 11th, 2005, 06:43 AM

tootsjap

December 11th, 2005, 01:33 PM

Ayan sinabi na ng batikang ekonomista na si Bernardo Villegas: Only 7-8% growth can make a difference as far as the Philippines is concerned to reverse the poverty situation. So ang 4-5% growth performance should be in the bad news column.

Political uncertainty seen stealing RP X'mas
Posted: 3:23 PM | Dec. 11, 2005

Cecil Morella
Agence France-Presse

RETAILERS and manufacturers are bracing for their worst Christmas in years with Filipino consumers spending much less despite record pre-holiday cash transfers from relatives abroad, according to economists. Manila-based University of Asia and the Pacific vice president Bernardo Villegas blamed political uncertainties as well as soaring oil prices for the descent of the spirit of Scrooge over Christmas.

Villegas said major industry players are reporting sales volume declines of between 5.0 and 10 percent as they approach what is normally their peak season when this overwhelmingly Roman Catholic nation of 84 million normally opens its purse strings to splurge on gifts and consumer items.

However, shopping mall traffic in Manila, which accounts for nearly a third of the country's domestic economic output, has been noticeably sparse, with the parking lots of giant malls nearly empty.

"Practically all consumer goods are suffering sales declines," Villegas, a prominent economist, told a news conference.

"We will have a bleak Christmas. We will not have the usual big increase in sales," he said. "If you talk to retailers, they have very sad faces."

Even in the provinces trade and industry officials have noticed a distinct change in spending habits in the run up to Christmas.

Merly Cruz, a regional trade and industry director, in the southern city of Davao, told the BusinessWorld newspaper, that people are buying less and "showing a preference for inexpensive items" this year.

The dismal sales figures are being chalked up even as the eight million-plus Filipinos living or working abroad are driving the peso to their highest levels this year with annual salary remittances expected to top the 10 billion-dollar mark.

This amount is equivalent to more than 10 percent of the Philippine gross domestic product.

Villegas said consumer research surveys indicate that "Filipinos are afraid of the future and they are saving more."

These surveys also indicate they are spending a bigger fraction of their incomes on transport and energy-related expenses "for obvious reasons," he added, referring to substantially higher oil and power rates.

Villegas said the retail malaise has been noticeable for the past 18 months in the aftermath of the bitterly disputed May 2004 presidential elections, in which President Gloria Macapagal-Arroyo was accused of cheating but survived an impeachment complaint last September.

In general, Villegas said Filipinos are also "abstaining from eating at fast food restaurants in order to buy more (mobile phone) cell cards," a development which also "has had a negative influence on consumer spending."

Nevertheless, he said the country's top retailers continue to build giant shopping malls because "they are seeing this as a temporary phenomenon."

Luz Lorenzo, an economist with ATR-Kim Eng Securities Inc, said there was "anecdotal evidence" to suggest spending patterns have changed although he was more optimistic than Villegas.

"The government does not produce retail spending data so the only evidence we have to go on is what we actually see for ourselves.

Although shopping malls appear to be quite full we have found there has been a proliferation of flea markets in the past year.

"These markets appeal to a cross section of people as they provide a wide variety of goods at cheap prices."

Henry Sy, founder of the leading SM chain of shopping malls, told the Philippine Star newspaper in a rare interview recently: "I'm optimistic about the year 2006 for the Philippine economy, especially for tourism growth potential."

His daughter Teresita Sy, who runs her father's vast empire, added: "Our family is confident the new year will be better for the Philippine economy, notwithstanding the troubles in politics."

Villegas said he expects Philippine GDP to muddle through this year and next, helped by a possible shift toward a parliamentary form of government and new national elections in 2006 or 2007 that would give Arroyo a "graceful exit" and lift the gloom on the retail sector.

However, the projected GDP growth of less than six percent annually over the next six years is "not good enough" with Philippine neighbors growing at a faster clip.

"If we don't grow at least six to nine percent like our neighbors we will never be able to overcome the poverty that we are experiencing now," he said, adding that a 7-8 percent growth over the next 10 years would be the minimum requirement.

marites4

December 11th, 2005, 06:19 PM

^her opinion would have been credible but she ruined it when she added unless Arroyo resigns crap ,another partisan influenced view. I don't see how arroyo resigning can instantly bring 7% growth. In fact with our momentum right now all the opposition need to do is stop their destabilizing and focus on their real job then we'll be much more likely to hit the 7%growth.

Jefferyi

December 11th, 2005, 11:48 PM

In general, Villegas said Filipinos are also "abstaining from eating at fast food restaurants in order to buy more (mobile phone) cell cards," ...
:lol: WTF???Now that has got to be one of the most stupid things I have ever heard.

sugbuanon

December 11th, 2005, 11:49 PM

RP investor relations program rated world’s No.1 by int’l body

By LEE C. CHIPONGIAN

The Washington-based Institute of International Finance ranked the Philippine investor relations program as No. 1 among thirty other emerging countries surveyed and reviewed. The Philippines and Brazil topped the IIF list in a December 8 report "Investor Relations: An Approach to Effective Communication and Enhanced Transparency 2005 Assessment of Key Borrowing Countries".

This means the IIF – which is a global association of financial institutions, in its assessment said the investor relations and the country’s data transparency practices are better than China, Korea, Thailand, Malaysia, Chile, Russia and Turkey. According to Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr., the central bank has been strictly adhering with its commitment for the timely release of data covered by the international data release standards, especially the Special Data Dissemination Standard or SDDS.

"Governments are not that different from publicly-traded companies," Tetangco said. "The government also has many stakeholders who require timely and accurate information about the fiscal and economic health of the Philippines." He said that a professional, proactive investor relations program is critical to ensuring these stakeholders have the information they need to make critical business and investment decisions.

For his part, Finance Secretary Margarito B. Teves said recent favorable developments and commitment to reforms have provided a strong platform for communicating to domestic and international public. "The IIF’s recognition of the govern-ment’s approach to investor relations is a further demonstration of our commitment to create a conducive environment for increased portfolio and foreign direct investment in the Philippines," said Teves.

The BSP Investor Relations Office was established in 2001 and works actively with the government’s Economic Team, financial institutions, credit ratings agencies and the business community. According to its executive director Rene Pizarro, the government has a strong commitment to a transparent approach in communicating with investors about the fiscal and economic situation here.

"The IFF has recognized the commitment of the government to maintaining an open and proactive dialogue with domestic and international investors about the state of public finances and the Philippine economy," Pizarro said. Timely information has helped support the strong peso, increased investment and good cooperation with the international credit rating agencies.

The IRO was created as a direct response to the government’s need to provide a coordinated approach to sourcing macroeconomic information from the economic agencies and make it easily available to analysts and investors. In the meantime the IFF has been promoting an investor relations program for all emerging markets with access to private capital.

In its latest reports and ranking analysis, the IIF included a detailed review of data transparency and release practices of 30 countries that were selected based on size and frequency of borrowing in 2004 and 2005. Countries’ investor relations’ offices were assessed using 20 criteria such as availability of data, timeliness and periodicity.