The Philippine Economy - Compiled Threads [Archive] - Page 39

skywalker2008

January 8th, 2009, 04:06 AM

Teves is Asia's best finance minister - The Banker (http://www.gmanews.tv/story/143147/Teves-is-Asias-best-finance-minister---The-Banker)
01/08/2009 | 09:30 AM

MANILA, Philippines - Finance Secretary Margarito B. Teves has been named "Best Finance Minister" in Asia, a title given by London-based international finance magazine, The Banker.

The recognition is published on the January 2009 issue of The Banker, which is part of the Financial Times group. The magazine is on its eighth year of giving the award.

In his letter of notification to Teves, The Banker finance editor Philip Alexander said the decision on choosing the best finance minister is a result of a survey conducted with economists and bankers "and therefore represents a real vote of confidence by the markets."

"Survey respondents mentioned that, thanks to progressive improvements in revenue collection, lower public debt levels and more stable finances at the state-owned enterprises, the Philippines has entered the current global credit crunch in a much less vulnerable position than during the past financial crises," Alexander said.

Teves was Land Bank of the Philippines president when he was tasked to be the Finance chief after a mass resignation of the Arroyo administration's economic team in July 2005.

Even back then, the former lawmaker already said one of his goals would be to balance the budget by 2008.

As early as May last year, however, the Finance department said the goal of balancing the budget needs to be pushed back to the original 2010 target.

In November 2008, Teves said "it will be extremely difficult to balance the budget in 2010 because of the changing circumstances" in the global economic arena.

In the latest issue of The Banker where an article on Teves is featured, the Finance chief was quoted saying," Our original goal of a balanced budget will be deferred, as the priority now is to stimulate the economy and keep people employed."

He added that the deficit will remain within 1.2 percent of the gross domestic product, or the value of goods and services produced by the country, as the government is still repaying its debts. - GMANews.TV

skywalker2008

January 8th, 2009, 04:29 AM

RP less vulnerable to crisis, says Fitch (http://business.inquirer.net/money/topstories/view/20090108-182055/RP-less-vulnerable-to-crisis-says-Fitch)
Reuters
First Posted 02:03:00 01/08/2009

MANILA, Philippines — The Philippines is vulnerable to the global financial crisis but less so than other countries in the region, as its banks and external financial position are sound, the London-based credit watchdog group Fitch Ratings said Wednesday.

Speaking to Reuters before the government launched an offer for an international bond, James McCormack, managing director of Asia-Pacific sovereign ratings at Fitch, said he saw no reason to change the country's “BB” credit rating and “stable” outlook.

"We are comfortable with the rating where it is," he told Reuters in an interview.

He said the country's healthy fundamentals should help keep its ratings outlook from being downgraded, but added that slow growth in government revenues posed a risk.

"It looks to us that when we cast our eyes around the region, at economies that are vulnerable to what is going on internationally, the Philippines is certainly included but it is not one of the countries that we are most concerned about," he said.

"The banking sector is reasonably isolated from what's been going on internationally, that includes both exposure to subprime and other assets with questionable values."

On Wednesday, the Philippines, one of Asia's largest sovereign debt issuers, launched a 10-year dollar bond offer, which one banker said could be for as much as $1.5 billion.

The fundraising is to help finance a budget deficit of up to P102 billion this year, compared with a target limit of P75 billion in 2008.

The government relies heavily on foreign and local borrowings to finance its capital and social spending program because revenues growth has not kept pace with the state's funding needs.

It imposed a higher and broader sales tax law in 2005 to rein in a ballooning budget deficit but it has had little success in curbing widespread tax evasion, smuggling, and corruption.

The government has resorted to selling state assets to offset perennially weak revenues.

"The fiscal correction that has taken place over the past few years has been very impressive, it's been quite notable. Deficit has come down, debt levels have come down, very disciplined approach on the fiscal side," McCormack said.

"But, we don't think it's necessarily sustainable because the way that the fiscal deficit has been brought down in the Philippines is mostly by curtailing expenditure.

"The problem in our view is on the revenue side and the revenue numbers for the Philippines are just too low and they are among the lowest of any country that we look at globally."

President Gloria Macapagal-Arroyo made ending a decade of budget deficits the centerpiece of her economic reform. But she abandoned the goal to allow more spending in support of an economy expected to slow down sharply.

Manila hopes more spending will ensure the economy expands by 3.7-4.7 percent in 2009.

McCormack said the government forecast was "too optimistic" and he expected slower growth of about 2.5 percent.

"It is quite weaker than the government's estimate but again when we compare that to other countries in the region that is not a bad growth rate."

-TC-

January 8th, 2009, 08:50 AM

RonnieR

January 8th, 2009, 11:41 AM

GMANews.TV - 2 hours 11 minutes ago

MANILA, Philippines - The Philippine automotive industry closed 2008 with a sales figure a tad short of target but manufacturers said the local market is still better off as it managed to post growth amid the global economic and financial slump.

Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) released on Thursday showed that vehicle sales in the Philippine market reached 124,449 units in 2008. The target was 125,000 units.

The number of units sold in 2008 was 5.55 percent higher than that sold in 2007.

Toyota Motors Philippines Corp. led with a 36.9 percent market share representing 45,915 units.

Coming in a far second is Mitsubishi Motors Philippines Corp., which sold 17,539 units and cornered 14.1 percent of the market.

Honda Cars Philippines, Inc. took the third spot for an 11.5-percent market share for selling 14,298 units.

Sales in December alone stood at 9,885 units and CAMPI said the figure "would have been higher" but the two-week holiday towards the end of the year trimmed selling opportunities for dealers.

CAMPI president Elizabeth H. Lee said car sales remained at healthy levels in the Philippines due to the demand from entrepreneurs and overseas Filipinos.

This resulted in the domination of commercial vehicles sales, with a 64 percent market share representing 80,023 units, over passenger car sales, at 36 percent or 44,426 units, during the year.

Lee said the trend of stronger commercial vehicle sales is expected to continue this year.

"This year, competition will be stiff, which may in turn benefit auto buyers. The entrepreneurial trend will likely continue and may get stronger as returning OFWs may be 'forced' to become dual income earners while at the same time, opportunities are likely to crop up amidst any crisis," Lee said, adding that the Philippines is not undergoing a crisis at this time.

The government projects a slower economic growth of between 3.7 percent to 4.7 percent for 2009 as the global economic and financial crisis takes its toll on the local front.

For its part, CAMPI expects car sales to grow by two to four percent this year, which means it could sell 2,800 to 4,900 units more than the actual 2008 sales.

"Although a spill over effect from the global economic turndown is expected, the degree of impact is expected to be relatively less," Lee said. - ABLL, GMANews.TV

DoggMann

January 8th, 2009, 04:04 PM

Peter Schiff: 20090107

9h2x7R8pxUs

-TC-

January 8th, 2009, 06:42 PM

Good job! :applause:

http://business.inquirer.net/money/topstories/view/20090108-182169/RP-raises-15B-from-intl-bond-offering

RP raises $1.5B from int’l bond offering
By Michelle Remo
Philippine Daily Inquirer
01/08/2009

MANILA, Philippines -- The national government sold $1.5 billion worth of long-term bonds in the international capital market Thursday (January 8) morning, thus completing its foreign, commercial borrowing requirement for 2009 early in the year...

http://www.bworld.com.ph/BW010909/content.php?id=004

RP success seen sparking Asian borrowing rush
BusinessWorld
January 9, 2009

HONG KONG — The Philippines’ successful sale of $1.5 billion in bonds will spark a rush by other borrowers in Asia to tap a rare revival of investor risk appetite in a market that had been shut down for months by the global credit crisis.

Indonesia, South Korea and Malaysia top the list of Asian governments expected to try to raise debt from international investors. Some bet India could surprise with a global bond sale.

But investor sentiment remains fickle. Deals will fail if borrowers don’t price in a sufficient risk premium and sentiment could turn because debt defaults are almost certain to rise this year as the global turmoil takes its toll, bankers said.

"There will be more sovereigns coming to the market in the next couple of weeks because the market was closed for a large part of last year," said Rajeev De Mello, a fund manager.

Many Asian governments are seeking funds to finance an array of stimulus measures to support their sagging economies and to replenish dwindling foreign currency reserves.

On Wednesday, the Philippines sold $1.5 billion in 10-year bonds at a yield of 8.5% in an issue that was four times oversubscribed. The deal marked the first sovereign offshore bond sale in Asia ex-Japan since June.

Turkey, Brazil and Colombia have also tapped the international capital market this year, seizing on investor appetite to put their money to work in riskier high-yield debt.

Other markets have also perked up as some investors believe an array of stimulus plans globally, interest rate cuts and other measures will revive the world economy later this year.

Bond sales in dollars, euros and yen by issuers in Asia excluding Japan slumped by half last year to $25.2 billion, the lowest since 2001, Thomson Reuters data show and less than half of the 2005 peak of $52.5 billion.

The successful deals are likely to prompt other borrowers to push their deals. But while the year has started well for the Philippines, the window of opportunity could shut quickly, bankers said.

"Countries have to go to markets to take advantage of these spurts in risk-taking because they may not persist throughout the year," said Brian Baker, the Hong Kong-based chief executive director of PIMCO Asia Ltd., an arm of the world’s largest bond fund manager.

Mr. Baker said many countries are worried they may have to offer higher returns if they do not get into the market early enough.

Others say government spending requirements could also hasten issuance activity.

"There is pressure to issue because a lot of the governments have announced huge fiscal stimulus packages," said Devendran Mahendran, a credit analyst with HSBC.

Malaysia could be planning another stimulus package this year, a newspaper report yesterday said, while Indonesia has unveiled a $6.5-billion plan to boost economic growth this year.

Jakarta has already picked seven banks as advisers for its funding program of $4 billion this year.

South Korea, which shelved a $1 billion sovereign bond issue last year because investors demanded a higher yield than it was willing to pay, could also return to the market after foreigners sold 33.6 trillion won in shares in 2008, their highest annual net sales ever, putting pressure on the won and the country’s balance of payments.

"There is an incentive and the need to issue in dollars, if you look at the declining forex reserves on account of portfolio outflows and current account deficits," said HSBC’s Mahendran.

South Korea’s foreign reserves shrank by $61 billion in 2008, the first drop since 1997. They hit a four-year low in November before rising in December, the first increase in nine months.

Even so, there is the danger that issuers could misprice their debt offers, which would then perform badly in the secondary market leaving investors with losses.

"Investors want these bonds to reprice in the secondary market and then remain firm for a while," said Brett Williams, credit analyst with BNP Paribas.

So far, issuers have not taken any chances, pricing their deals above current yield curves, indicating a willingness to offer fatter payouts to attract investors.

"The pricing will have to be at a discount to secondary market — they will have to pay up," said Mr. De Mello.

However, all this could come to nought if Asia suffers a string of defaults, which would undermine investor confidence and serve as an uncomfortable reminder of the 1997/1998 Asian financial crisis.

"If there were more defaults — borne of fraud or no — it would likely take some of the wind out of the sails," said BNP’s Mr. Williams.

DoggMann

January 9th, 2009, 02:43 AM

Porn Industry Asking for BAILOUT!!!!

YTQF1PUlU_E

:rofl:

bledzoe

January 9th, 2009, 04:57 AM

http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=4337:boc-surpasses-08-collection-target-falls-short-in-cash-part&catid=25:bankingandfinance&Itemid=61

BOC surpasses ’08 collection target, falls short in cash part

Written by VG Cabuag / Reporter
Thursday, 08 January 2009 22:30

THE Bureau of Customs (BOC) has surpassed its target collection for 2008, but its cash collections was lower than programmed, according to bureau data.

Preliminary data show that the agency—the government’s second-largest revenue earner—collected P258.977 billion last year, or 2 percent over its P254.476-billion target set by the inter-agency Development Budget Coordination Committee.

Its cash collections of P217.79 billion, however, was short of its target of P246.931 billion. The shortfall was increased by the noncash Tax Expenditure Funds (TEF), which comes from collections from government imports such as rice for the National Food Authority.

Lower cash collections means many of the bureau’s main collection points are not able to hit respective collection targets. BOC still has to release specifics of the data.

Available data show that the agency collected P41.186 billion from TEF, over five times than the P7.545-billion target set by the national government in late 2007.

The BOC’s cash take, on the other hand, was down by P29.141 billion or 12 percent from assumptions made by the Department of Finance. Noncash payments were P33.641 billion over the target.

Compared with its 2007 cash collections, BOC performed better by about 13 percent or P24.576 billion.

Overall, BOC’s positive efficiency rose to 23.7 percent year-on-year after as the agency’s revenue gains in 2008 rose to P49.538 billion, from P209.439 billion a year earlier.

The figures are still subject to change as these do not include collections for January 2, and January 5, 2009, which the Bureau of Treasury has ordered credited for the last fiscal year.

The higher collections last year are attributed to windfall revenues from higher oil prices in the middle of 2008 which peaked at $147.27 per barrel in early July.

Rice imports also rose as demand spiked also during the middle of last year.

The BOC failed to reach its target in 2007, mainly due to a stronger peso. As a result some employees were axed in compliance with the lateral-attrition law.

In 2006 bureau officials and employees benefited from rewards as the BOC collected P2.2 billion more than its P196-billion target.

This year, however, BOC will appeal its P317-billion target, citing the global economic downturn and possible impact of the Japan-Philippines Economic Partnership Agreement.

The bureau is drafting a letter for the national government to adjust its 2009 collection target. It will argue that the target was computed on the basis of crude oil at $75—the price last October—Crude in the spot market is currently trading at $43.

amigo32

January 9th, 2009, 05:04 AM

gen1

January 9th, 2009, 05:08 AM

si Teves ? magaling talaga yan.

atenista kasi :D

RonnieR

January 9th, 2009, 05:18 AM

I'm not sure if this article is appropriate for posting in this thread but just wanna show you guys that economic crisis is still far from our shores for these people who patronize the local films, hopefully. :)

By Bayani San Diego Jr.
Philippine Daily Inquirer
First Posted 22:51:00 01/08/2009

MANILA, Philippines—It has been a record-breaking year for the Metro Manila Film Festival.

Total earnings for the two-week festival, which started on Dec. 25 last year and ended on Wednesday reached an all-time high P450 million, making the 34th staging the biggest grossing MMFF ever.

The 2008-09 take surpassed the 2006 record of P415 million.

The total gross was 20 percent higher than the 2007 MMFF, which posted a P380.3-M aggregate, according to Dominic Du, member of the screening committee of the film fest.

Star Cinema’s “Ang Tanging Ina N’yong Lahat” is the top-grossing entry, earning P171 million. The film eclipsed its first installment, “Tanging Ina,” which made P170 million in 2003, according to Malou Santos, Star Cinema managing director.

Santos told the Philippine Daily Inquirer: “In times of crisis, people want to be entertained and watch comedy movies.”

De las Alas, “Tanging Ina” lead star, agreed: “Napakahirap na ng buhay ngayon, kaya for a movie to make over P100 million in seven days is a miracle. Divine intervention ito.”

“Ang Tanging Ina N’yong Lahat” earned P107 million on the seventh day of the two-week festival.

The second top grossing film, OctoArts/M-Zet/APT’s “Iskul Bukol: 20 Years After” that reunited the trio of Tito, Vic and Joey on the big screen, also surpassed the P100 million mark with a P107 million take.

At third place is the tenth installment of a horror franchise, Regal’s “Shake, Rattle & Roll X,” with P68 million.

Regal’s other entry, “Desperadas 2” was at fourth place with P49.3 million. Viva Films’ multi-award winning period film “Baler” took P35.8 million and placed fifth. OctoArts Films’ “One Night Only” stood at sixth with P10.5 million while the animated film “Dayo sa Mundo ng Elementalia” garnered seventh place with P5.6 million. Maverick Films’ “Magkaibigan” ended up last with P2.1 million.

The total earnings for this year’s film fest (P450M) is just P50 million shy of the target set by MMFF and Metropolitan Manila Development Authority (MMDA) chair Bayani Fernando, according to Ric Camaligan, film fest executive committee member and head of the National Cinema Association of the Philippines.

In an earlier interview, Fernando told the Inquirer that this year’s “mix of commercial and quality films is bringing the film fest closer to the P500 million target.”

The MMDA spearheads the annual film fest.

jpdm

January 9th, 2009, 06:52 AM

bartstrife99

January 9th, 2009, 01:50 PM

As a good sign for revival of the Philippines Cinema!

leechtat

January 9th, 2009, 07:44 PM

Philippines, Volume 48
08.01.2009

While the Philippines has not been immune to the effects of the global financial crisis and economic slowdown, it managed to avoid slipping into recession and maintained steady growth in 2008, which was driven in part by the strong performance of many sectors in the first half of the year.

High energy prices in the year up to July and the weakening of many of the Philippines' main export markets affected the local economy, but this was countered to some degree by falling inflation late in the year and the underlying soundness of the country's banking sector assets.

The past year was however the most challenging one for the economy since the Asian financial crisis in 1997, with Finance Secretary Margarito Teves telling local media in December that the government had been forced to revise some of its major fiscal targets set early in 2008.

Given the international financial crisis, Teves said the national budget would be in deficit in 2008 and that it would not be balanced until 2010, given the demands put on the state. According to figures from the Department of Finance, the budgetary deficit stood at $1.4bn as of the end of November, compared to a surplus of $268m in the first 11 months of 2007.

The government has also been forced to reassess its Gross Domestic Product (GDP) growth projections. Having targeted expansion of between 5.5 and 6.4% in early 2008, still below the 7.2% growth rate recorded in 2007, officials now admit that the economy will grow by a more modest 4.1 to 4.8%.

In late July, the government announced it would increase spending in the 2009 budget, lifting total expenditure to $32bn, up 14% on projected outlays for 2008. Silvestre Bello, the cabinet secretary, said on July 31 that the agriculture sector, public works, social welfare, and education departments would all receive higher budget allocations.

By the end of the year though, the government confirmed it was looking to further boost spending, stimulate growth and offset the effects of the global downturn, but said that much of the funding would be directed to infrastructure projects to bolster economic development. The exact details of these projects have yet to be released.

The government's privatisation programme was also advanced with the sale of stakes in two major companies, generating earnings of some $73m. In January, the state sold its holdings in the utility Manila Electric Company (Meralco) to the Government Service Insurance System for $18.5m. The stake was later sold on to the San Miguel Corporation. Besides, in late December, the London-listed fund manager Ashmore Group concluded payment of $54m for the government's 40% shares in the Philippines largest oil refiner, the Petron Corporation.

One sector that did meet expectations was the automotive industry. As the year closed, the Chamber of Automotive Manufacturers of the Philippines (CAMPI), stood by its projection of total vehicle sales of 125,000, giving the industry its strongest 12-month performance since 1997, with sales of 114,564 up to the end of November, an 8.3% improvement on the same 11 months in 2007.

According to CAMPI President Elizabeth H. Lee, low car ownership levels in the Philippines, combined with increasing numbers of Filipino workers returning home from overseas and looking to re-enter the local workforce, could further assist car and commercial vehicle sales in the new year.

"Most may choose to become entrepreneurs against the backdrop of declining job opportunities as a result of the crisis," she said of returning workers during a press conference in mid-November. "Bad times could somehow create some good opportunities for entrepreneurs," she added.

The Philippines' banking sector was spared the worst of the economic storm engulfing the globe, thanks in part to its low exposure to toxic assets. According to the Bangko Sentral ng Pilipinas (BSP), the central bank, the total exposure by local lenders to assets affected by the US financial crisis was around $1.27bn, a figure BSP Deputy Governor Ernesto Espenilla said in September was within the capacity of the industry to handle.

By the end of the year, little had changed, with BSP Governor Amando M. Tetangco Jr saying that just 1% of local bank's assets could be classified as being at risk.

"The Philippine banking system is in a comfortably manageable state from a capital and liquidity standpoint, and our past investments in banking and other financial reforms have helped shield us from catastrophic fallouts that the other jurisdictions have seen," Tetangco told local media on December 27.

Like many of the world's bourses, the Philippine Stock Exchange Composite Index (PSEi) had a rollercoaster of a year, opening with a total market value of $16.9bn but later shedding $8.3bn, a decline of 49%, by the last day of trading for 2008. The PSEi's worst day was October 27, when it dropped 12.27%, its worst fall since 1997, prompting a brief suspension of trading.

The slowdown in the global economy had some positive effects for the Philippines, with inflation starting to edge down towards the end of the year. July saw the Philippine's inflation rate hit a 17-year high, when price rises reached 12.2%, well above the 2.8% of 2007 and out of the 9 to 11% bracket predicted by the central bank. By the end of the year though, inflation had fallen back to 9.3%, thanks in part to lower oil prices and a cooling of demand.

The drop in inflation, combined with the need to inject additional credit into the marketplace, prompted the BSP to cut interest rates by 50 basis points in mid-December, taking its key lending rate to 7.5%, following a series of rate increases throughout the year.

Though many analysts and the government itself are predicting another year of challenges for the Philippines economy in 2009, none are foreseeing recession, but looking instead forward to a year of consolidation, with growth expected to accelerate in 2010.

Source: http://www.oxfordbusinessgroup.com/weekly01.asp?id=4269

dessertfox

January 10th, 2009, 08:42 AM

Thursday, January 8, 2009 The Philippine Star Business

Ten reasons why we should be happy in 2009

by Joey Concepcion

Upon reading all the columns these days, there is nothing but bad news about 2009. Not that I disagree with many of the views, but I think things will be different. The Philippines will be far better than many other countries. Here are 10 reasons why I think we should be happy in 2009.

1 – We (Philippines, Inc.) have a unique business model, which is now more Service-based, through the export of manpower services and the migration of Filipinos to countries like America, Canada and countries in Europe. A lot of Filipinos continue to be one of the best performers in different industries, especially in the fields of medicine, construction, domestic service, among the many services provided. Many Filipinos, especially in America, take on two jobs and work very hard. Many of them even own the nursing homes in America. This is an industry wherein many Filipinos really excel. This strength comes from many generations of respect for elders. For example, the mano po tradition is still commonly practiced up to now. When a Pinoy eats, he never fails to say "Kain tayo!" and offers his food to be shared. These simple gestures show the many generations of respect. Our yayas who leave their families to take care of our own children are, in a way, traini ng for many who plan to go to Asian countries to do the same with higher pay. These OFW remittances will continue, which contributes to our GDP. In a way, this is the same as the oil that the Arabs have, or what durable products China has for exports to America. This is also now greatly affected as Americans have slowed down on consumption. Even though other countries, especially China, is well known for their export of hard goods, people will always have the option to put off buying furniture, toys, appliances or their other products. But, services are different because these are always needed. Our country's export of services via OFWs, call centers and BPOs is very unique. Compared to This service is hard to replace, as Filipinos have the passion to serve and a natural advantage in communications skills especially when abroad. Even here in our country, a call center operator would make 300 dollars a month. This is just equivalent to three days wage of an American working in a call center. With the crisis in their country, they would have to relocate here.

2 - In the years to come, we will be entering a low interest regime, with the Americans taking interest rates to almost zero. This will force other countries to lower interest rates. If Japan has had low interest rates for nearly 15 years and if America's economy will remain sluggish, we could be looking at low rates for quite some time. This can lead to our advantage. If our central bank will not lower rates, we may see a stronger peso this coming year or at the very least a much more stable peso. If interest rates are lowered, this will benefit a lot of entrepreneurs and would be also good for business. The peso may slide to the levels of 50, but this will also be good for the exporters, OFWs, call centers and BPOs.

3 - Oil has come down from the highs of 145 levels. As I have mentioned in my past columns, when oil was at that level, it was caused more by the hedge funds pushing oil beyond its real demand. Within two months, we have seen oil collapsed to a low of 30s. Now, it has recovered to high 40s. Assuming that oil would average between 50 and 60 for the year, this will still be a big boost for the tourism industry, as air travel will become cheaper. Our logistics cost in transporting products, being a country with seven thousand islands, will go down. The cost of power will go down, helping the consumers and the negosyantes with plants running at lower energy costs. This will also prevent an excessive conversion of farm lands to be used for alternative fuel, which should be discouraged. Instead, this option should be managed, so that irrigated and productive land will be used to make us self-sufficient in terms of producing rice.

4 - We will see inflation come down very fast. Commodities have come down, from the price of steel to raw materials and food like skimmed milk, wheat, oil, soybean, corn and others. By the beginning of the second quarter, when most of the companies that hedged would have been consumed, we should see prices come down. Another possibility would be no price increase this year. In fact, our company RFM has already reduced the price of our pasta. It is now one of the lowest in the market. Even our milk, hotdogs and corned beef are priced lower; as we are already taking some losses since the replacement cost have come down. This is going to be good news for the consumers.

5 – Philippine election spending will start early as usual. I expect this will be happening sometime midyear, as we will definitely have elections in 2010. The excitement of the 2010 elections will be felt very early. This spending should filter through the economy as early as the third quarter this year.

6 - Manny Pacquiao will beat Ricky Hatton. This will give the Filipinos greater pride. There will be more of the Collezione C2 shirts with the Philippine map to be worn by Filipinos, and less of the polo shirts. We will see a proliferation of proud Filipino shirts with the Philippine flag as its banner. All these lead to building the nationalistic spirit. This is also something that is very important to our country.

7 – The year 2009 will be the last full year of PGMA in office. I am not saying she has done a bad job. In fact, she has prepared well our country for the global financial crisis. This last year of her term, many of those running would want her to already finish her term. This year, we should see her stay in office, with less of impeachment noises. If we are able to weather this global crisis and PGMA is able to deliver economic growth, this will vindicate her as she finishes her term.

8 - The political drama will unfold. Many Filipinos look forward to this. Who will PGMA endorse as administration candidate? Who will Manny Villar pick as his running mate? Will Mar marry Korina? Will it be Loren or Chiz for president? Will Vilma Santos run for vice president?

9 - The world avoids a depression.

10 – GOD STILL LOVES THE PHILIPPINES.

Among items mentioned by Joey (10) I thought that last Hope is functioning just like the flocks Devotees of Black Nazarene compost mostly of those dedicted vendors in Quiapo does not lose hope in life struggles, with the POWER OF PRAYER like what had circulated in internet as shown below, Filipinos will prevail...

THE ONLY HOPE FOR THE PHILIPPINES
by Father James Reuter, S.J.

By her own admission, GMA (Gloria Macapagal Arroyo) rightfully assessed that over the last decades; our republic has become one of the weakest, steadily left behind by its more progressive neighbors. Forty years ago, we were only second to Japan in economic stature, and way ahead of Singapore , Hong Kong , Malaysia , and Thailand.

Today, at our present growth rate, it will take us 30 years to get to where Thailand is.

1. A population of 160 Million;

2. Of those, 70 to 90 million (equivalent to our current
population) will live below the poverty line;

3. Our national debt is estimated to be at US$200B (compared to US $28B when Marcos fled, and US$53B today);

4. We will be competing, not against Thailand or even Vietnam , but against Bangladesh ;

5. We will be the most corrupt nation in Asia , if not in the world (we're already ranked 11th most corrupt nation by Transparency International) ..

The signs are clear. Our nation is headed towards an irreversible path of economic decline and moral decadence. It is not for lack of effort. We've seen many men and women of integrity in and out of government, NGOs, church groups & people's organization devote themselves to the task of nation-building, often times against insurmountable odds.

But not even two people's revolutions, bloodless as they may be, have made a dent in
reversing this trend. At best, we have moved one step forward, but three steps backward. We need a force far greater than our collective efforts, as a people, can ever hope to muster. It is time to move the battle to the
spiritual realm.

It's time to claim GOD's promise of healing of the land for His people. It's time to gather GOD's people on its knees to pray for the economic recovery and moral reformation of our nation.

Is prayer really the answer? Before you dismiss this as just another rambling of a religious fanatic, I'd like you to consider some lessons we can glean from history. England 's ascendancy to world power was preceded by the Reformation, a spiritual revival fueled by intense prayers. The early American settlers built the foundation that would make it the most powerful nation today - a strong faith in GOD and a
disciplined prayer life. Throughout its history, and especially at its major turning points, waves of revival and prayer movement swept across the land.

In recent times, we see Korea as a nation experiencing revival and in the process producing the largest Christian church in the world today, led by Rev. Paul Yongi Cho. No wonder it has emerged as a strong nation when other economies around it are faltering. Even from a purely secular viewpoint, it makes a lot of sense. For here there is genuine humbling & seeking of GOD through prayer, moral reformation necessarily follows. And this, in turn, will lead to general prosperity. YES, we believe prayer can make a difference. It's our only hope.

bartstrife99

January 10th, 2009, 09:15 AM

P50-B investment vowed to increase job creation

http://www.gmanews.tv/story/143475/P50-B-investment-vowed-to-increase-job-creation
ANNA BARBARA L. LORENZO, GMANews.TV
01/09/2009 | 09:26 PM
Email this | Email the Editor | Print | Digg this | Add to del.icio.us
MANILA, Philippines - The Philippines’ private sector has promised to pump investments in infrastructure starting this quarter, helping boost economic activity and create employment for returning overseas Filipinos who lost their jobs abroad.

The Philippine Chamber of Commerce and Industries (PCCI) has agreed to invest P50 billion in nine infrastructure projects expected to generate employment for 100,000 workers, chamber president Edgardo G. Lacson said.

“Some of these projects will be on the ground within the first quarter. This can generate employment for returning OFWs," Lacson said.

Priority projects—mainly public-private partnerships—will benefit from the private sector’s investment. These include the extension of the skyway from Metro Manila to Batangas, the connection of the C-5 highway to Bacolor in Cavite, and the link between the South Luzon Expressway and the STAR Tollway.

Besides making the delivery of goods cheaper and faster--translating into lower prices--these projects will also encourage tourism, an industry known for its economic multiplier effect.

Jobs created by these projects will not just be from construction activities but also “for auxiliary industries," Lacson said.

PCCI's announcement was made after the Philippine Exporters Confederation Inc. (PhilExport) reported that some businesses have laid off 395 workers from “minor industries," the group said in a statement.

Companies cut jobs owing to “a lack of orders [and] a decline in demand," an earlier BusinessWorld report said.

For its part, the Federation of Philippine Industries (FPI), whose member-companies serve local markets, admitted that there is hardly any room for additional employees at this point as demand is expected to slow.

“This is why we are urging Filipinos to buy local products. If the demand grows, then we will have the capacity for more workers," said FPI president Jesus Arranza in a separate interview.

The FPI has teamed up with the Technical Education and Skills Development Authority (TESDA) to provide workers with the right skills sought by employers, Arranza added.

"We hope to be able to use our partnership with TESDA to train OFWs so they can eventually be self-employed," he added.

In earlier interviews, Labor Secretary Marianito D. Roque said that the government is capable of absorbing anywhere from 50,000 to 100,000 laid-off overseas Filipino workers under an emergency employment program. - GMANews.TV

skyscraperhighrise

January 11th, 2009, 12:13 AM

Peter Schiff: 20090107

9h2x7R8pxUs

Peter Schiff is the truth here.

jpdm

January 11th, 2009, 08:28 AM

P50-B investment vowed to increase job creation

The Philippine Chamber of Commerce and Industries (PCCI) has agreed to invest P50 billion in nine infrastructure projects expected to generate employment for 100,000 workers, chamber president Edgardo G. Lacson said.

Besides making the delivery of goods cheaper and faster--translating into lower prices--these projects will also encourage tourism, an industry known for its economic multiplier effect.

Jobs created by these projects will not just be from construction activities but also “for auxiliary industries," Lacson said.

PCCI's announcement was made after the Philippine Exporters Confederation Inc. (PhilExport) reported that some businesses have laid off 395 workers from “minor industries," the group said in a statement.

For its part, the Federation of Philippine Industries (FPI), whose member-companies serve local markets, admitted that there is hardly any room for additional employees at this point as demand is expected to slow.

“This is why we are urging Filipinos to buy local products. If the demand grows, then we will have the capacity for more workers," said FPI president Jesus Arranza in a separate interview.

The FPI has teamed up with the Technical Education and Skills Development Authority (TESDA) to provide workers with the right skills sought by employers, Arranza added.

"We hope to be able to use our partnership with TESDA to train OFWs so they can eventually be self-employed," he added.

In earlier interviews, Labor Secretary Marianito D. Roque said that the government is capable of absorbing anywhere from 50,000 to 100,000 laid-off overseas Filipino workers under an emergency employment program. - GMANews.TV

We can always rely with our own in times of crisis.:cheers:

dessertfox

January 12th, 2009, 04:56 PM

I thought this is what the city governments should pay attention with. Just like on what is happening in Q.C. that even the city government sacrificed local budget to accomplish important project like the linkage of SLEX and NLEX.

I am just trying to post two inter-related items why Q.C. City is on the right track to become a model urban center. Hope other cities will do the same to accomplish modernization.

Make Manila more dense, say experts

Agence France-Presse
First Posted 16:59:00 01/12/2009

MANILA, Philippines -- Economic growth in the Philippines remains unbalanced with Metropolitan Manila accounting for a third of the country's economy, economists said Monday.

Despite having a population of around 12 million and a high density of poverty, the Philippine government should encourage more economic activity in the capital rather than try to disperse it around the country, they said.

Speakers at a World Bank forum on economic geography said studies showed the concentration of population and economic resources in one city was not a disadvantage and could actually spur growth.

University of the Philippines economist Arsenio Balicasan said experience in other countries showed governments should have policies that "encourage economic density."

Balicasan said Metropolitan Manila actually had relatively low urban density compared to other Asian countries and could use more people and economic activities.

Government figures show Metro Manila, with a land area of 619.5 square kilometers (238 square miles) has a population density of 18,650 people per square kilometer.

Figures also show Metro Manila had the lowest poverty incidence and highest living standards in the country.

"There is nothing bad about economic concentration," said World Bank country director Bert Hoffman.

The World Bank report showed economic activity throughout East Asia was concentrated in key regions, which attracted huge populations of migrants.

The key elements were the mobility of workers to migrate to areas of economic growth and the integration of these areas to the global and regional economy, the experts said.

"The Philippines has to be more ambitious. It has to encourage more density," said World Bank economist Indermit Gill.

He said "governments should facilitate the geographic concentration of production but they must also institute policies that make the provision of basic needs such as schools, roads and sanitation, more universal."

SOURCE: http://business.inquirer.net/money/topstories/view/20090112-182898/Make-Manila-more-dense-say-experts

QC gov’t spending for national roads

By Neal Cruz
Philippine Daily Inquirer
First Posted 02:42:00 01/12/2009

On the other side of the spectrum is the Quezon City government under Mayor Feliciano Belmonte. The city has been spending for the maintenance, improvement and construction of new roads although they are national roads that ought to be funded by the national government through the Department of Public Works and Highways (DPWH), according to Mayor Belmonte in a private interview. But because the DPWH is not provided enough funds by Congress (most of taxpayers’ money go to the legislators in the form of pork barrel funds and kickbacks), it cannot keep up with its responsibilities. So the QC government, the richest city in the Philippines (P3 billion in the bank), through a combination of high taxes, efficient tax collection and judicious spending, has to tide over the DPWH with loans in order to finish road projects.

For example, the QC government has paid private landowners for the right of way for the long-delayed Congressional Avenue that will connect Edsa to Luzon Avenue that, in turn, connects to Commonwealth Avenue. Congressional now connects to Tandang Sora and will soon be connected to Visayas Avenue in the west and to Luzon Avenue in the east. The whole stretch will be completed, according to the DPWH, in the first half of 2009 after the relocation of squatters who have flocked to the road right-of-way.

Meanwhile, the QC government has also bought the right-of-way to connect Commonwealth Avenue to Quirino Avenue in Novaliches. From there, the road will connect to NLEX. Thus, travelers can proceed smoothly from southern Luzon through C-5, through Commonwealth and Quirino avenues to NLEX and northern Luzon. That would reduce travel time from north to south and cut the shipping costs of goods.

Some QC residents have expressed the wish, though, that the good mayor spend some of city hall’s abundant money to rid the city of squatters that give it problems in peace and order, health and sanitation and give the city the title of “squatter capital of the Philippines.”

SOURCE: http://opinion.inquirer.net/inquireropinion/columns/view/20090112-182759/QC-govt-spending-for-national-roads

Juan Pilgrim

January 12th, 2009, 06:38 PM

^^This is such an enlightening idea. It is not really new...

Concentrating our best infrastructures and manpower in one place,
and making it available and easily accessible to the whole world.

Then this epicenter of development will cause a ripple/ tricKle down effect??
IMO, doesn't always happen.
Let's learn form other nation's economy and adopt it to our unique situation.

:horse:

MatudNilaBaby

January 12th, 2009, 11:26 PM

RonnieR

January 13th, 2009, 07:37 AM

RonnieR

January 13th, 2009, 07:37 AM

Source: Inquirer

Updated) MANILA, Philippines- Philippine exports declined by double digits for the second straight month in November, the government reported on Tuesday.

The National Statistics Office said exports slipped by 11.9 percent to $3.5 billion, following a revised 14.8-percent slide to $3.97 billion in October.

Electronic products, which made up more than half of November's shipment, slowed by 17 percent.

For the January to November 2008 period, the country's exports registered a measly 0.76-percent growth.

Besides electronic products, other items which saw falling volumes were coconut oil, cathodes and sections of cathodes of refined copper, bananas and apparel.

The NSO also said that US, which remained the top market for Philippine products, continued to buy smaller volumes.

The world's largest economy contributed export receipts worth $608.7 million, down by 18.8 percent from $749.76 million from a year earlier.

Japan also imported less from the Philippines, registering a 3.8-percent decline to $527.65 million.

Other largest markets of the Philippines were Hong Kong, China, The Netherlands, Germany, Taiwan, Singapore, South Korea and Malaysia. GMANews.TV

RonnieR

January 13th, 2009, 07:45 AM

CHERYL M. ARCIBAL, GMANews.TV
01/12/2009 | 07:23 PM

MANILA, Philippines - The Philippines is expected to fare much better than its Asian neighbors despite declining exports and foreign direct investments (FDIs).

The country’s economic performance “would not be as bad" as what the Asian Development Bank and the World Bank have earlier predicted, listed investment house First Metro Investment Corp. said.

Economic growth will reach four percent this year—following the country’s 10-year average—sustained by declining inflation, OFW (overseas Filipino workers) remittances, and peso depreciation.

“The projected GDP [gross domestic product] is at 4.1 percent," said Victor Abola, executive director at the University of Asia and the Pacific, and also with the FMIC-UA&P Capital Markets Research.

The government is targeting to keep economic growth between 3.7 to 4.7 percent this year.

Unlike the other economies in the region, the Philippines is much less dependent on both exports and FDIs, he said.

Philippine exports contribute 45 percent to its GDP, lower than its regional peers which source 55 to 90 percent of its GDP from its goods sold abroad. Meanwhile, only two percent of the country’s economic output is attributed to FDI, compared to other countries’ six to eight percent.

With oil prices expected to average $63 a barrel this year, inflation is expected to moderate to 4.4 percent. In 2008, which saw crude prices to rise to a peak of $145 a barrel, crude prices had an average of $90 a barrel. In August last year, inflation reached 12.5 percent, a 17-year high.

The trend of a strengthening peso, which is currently trading at P46 to a dollar, is expected to be short-lived.

For the year, the peso's average may come in between P48 and P54 to the greenback.

"The foreign exchange is going to depreciate. There's no way that the BSP can prevent the foreign exchange from depreciating," said Abola.

Although the government is targeting to tame its budget deficit to about P102 billion or 1.25 percent of GDP, FMIC said it expects it to be higher to about P200 billion or about 2 percent.

Interest rates will also be slashed further by 50 basis points to 1 percent to provide more stimulus to domestic growth.

With historical average of a three-year decline, Abola added that the global economy will suffer for about a year more before starting on its way to recovery.

However, the gloomy global economic outlook poses opportunities such as M&A (mergers and acquisitions).

"There are opportunities for acquisitions this year, said FMIC president Francisco Sebastian.

He noted that big companies such as San Miguel Corp. and Metro Pacific Investments Corp. had been very active in taking advantage of the current low valuations.

"We believe that there are opportunities for debt financing. The stock market will also generally remain weak," he said.

Sebastian added that the local bourse has not bottomed out in 2008 despite wiping off nearly half of gains logged in 2007, when it reached a lifetime high at about 3,800 level.

Jose Pacifico Marcelo, FMIC executive vice president for investment banking, said the company will be handling about P70 billion worth of deals.

This includes P20 billion for the recapitalization requirements of the Bangko Sentral ng Pilipinas, P24 billion for corporate financing, and P36 billion for other prime corporates.

But FMIC director Ismael Cruz said he also sees a recovery of the bourse within the year. - GMANews.TV

MatudNilaBaby

January 13th, 2009, 08:12 AM

^^ maybe the WB's view is that: with the size of Metro Manila, the density can still be improved but I agree, other cities should also have its own share of high rises, modern transportation and infrastructures.

in this day and age of information technology, the way to go for the philippines to be progressive is through decentralization and decongestion. pgma is on the right track of developing infrastructure in the countryside as opposed to the monopoly of the metro manila area during the marcos era.

dessertfox

January 13th, 2009, 08:21 AM

:ohno:the professor's economic density idea makes metro manila sounds very pathetic. it sounded like metro manila envies the increasing popularity in the progress and development of regional centers. if government infrastructure projects are focused only in one area, not many can make use of it where as distributing the infrastructres into regional centers, more people can benefit from it.

here in the us, the cities are connected by freeways or railways. we dont need to go to los angeles or new york to do business. every city has its own business and entertainment centers that makes you feel content about life. we dont envy about people living in los angeles because what they have there is also available in the small cities.

citing studies on east asia isnt very credible at all. if he says thats how the G7 countries became so progressive and powerful then all pinoys can say amen to the up professor for a brilliant idea. yikes!:ohno:

This has been the debate among urban planners U.S. in particular. They realized that there are so many defect in their concept of “Urban Sprawl”. That’s the reason why there are some on-going programs among city state what they call “Smart Growth” concept. Wherein, they are trying to maximize city functions. Say an example utilization of those vacant lots, walkable city or pedestrian friendly. Such one good example of the failure of most U.S. cities is their too much dependence on automobile. Anyway, below are some of the good pointers of the study done in U.S.(see below)

In Asia such one good example of progress are the small city estate like Hongkong or Singapore, yet with such small area they still manage to conserved their nature reserves. Just imagine if the Philippines could duplicate Hongkong say in Subic or Singapore say with Cebu or Davao, Dubai of Makati, Pasig, Taguig or say Baharain in Q.C. and so forth. Given the strength of those small countries combined!

Below is the site for Smart Growth America and one of the top level organizer is a Filipino. It is helpful to understand the current solutions they are doing now, even transportation is very much involve. They are included in the develoment team of Pres. Barack.

http://www.smartgrowthamerica.org/

Source:http://studentwebs.coloradocollege.edu/~j_fritts/final_project/problems.html

Needless to say, urban sprawl causes many problems in our nation that interfere with our lives in a variety of ways. Several of these problems include:
• Loss of a "Sense of Place"
• Land Consumption & Threat to Farmland
• Costs to Local Government
• Our Dependence on the Automobile
• Inner City: Social Impacts
• Health Impacts
• Environmental Impacts

Here are some brief descriptions of the above problems:
Loss of a "Sense of Place" - Sprawl creates large developments which are often hard to distinguish or differentiate. This causes areas to lose some of their unique qualities and characteristics.

Land Consumption & Threat to Farmland - Farms, which generally require a lot of land, are being replaced by expanding developments because they are often located right outside of cities.

Costs to Local Government - Urban sprawl forces government funds to be spent on creating new infrastructure for expanding developments instead of maintaining the existing infrastructures.

Our Dependence on the Automobile - New development and construction of malls and shopping centers forces people to drive further to reach their destinations. This clogs the roads and is a major downfall of urban sprawl.

Inner City: Social Impacts - Sprawl causes job opportunities to be spread over a greater area and also forces governments to direct more funds towards new development instead of focusing on existing problems in the cities. This hurts primarily the poor and minorities.

Health Impacts - The growth and expansion problems of sprawl have recently been thought to have a negative affect on peoples' well being. Studies have determined that increased sprawl has been accompanied by an increase in pedestrian injuries.

Environmental Impacts- Sprawl diminishes the natural habitats of wildlife. In addition, sprawl destroys a large amount of our valuable natural resources.

The Front Range in Colorado faces many of these same problems. They are becoming an increasing problem and need to be addressed and remedied through careful planning and smart growth.

Animo

January 13th, 2009, 09:29 AM

Another Zóbel post! :D

http://farm4.static.flickr.com/3217/2706602952_52a89fe5bb_o.jpghttp://farm4.static.flickr.com/3149/2706603032_44233ef87e_o.jpg
http://farm4.static.flickr.com/3153/2705784621_0895b9b232_o.jpghttp://farm4.static.flickr.com/3096/2706603168_e037b3319e_o.jpg
Alejandra Vallejo-Nágera y Zóbel-de Ayala

Alejandra Vallejo-Nágera is a famous psychologist, author,
and educator in Spain.
She works closely with the Spanish media and UNICEF.
She is the author of the book "Psicología de la seducción" in Spain.

http://farm4.static.flickr.com/3041/2705784283_a2253f3053_o.jpghttp://farm4.static.flickr.com/3280/2706602694_2faa552a73_o.jpghttp://farm4.static.flickr.com/3265/2705784169_40e8164510_o.jpg
http://farm4.static.flickr.com/3191/2705783999_43d6f71cf3_o.jpghttp://farm4.static.flickr.com/3235/2705783953_eb53510b13_o.jpg
María Vallejo-Nágera y Zóbel-de Ayala

Her sister María Vallejo-Nágera is also a famous author in Spain.
She is the author of "El castigo de los angeles,"
"Un mensajero en la noche," and other books (http://www.bookfinder.com/author/maria-vallejo-nagera-zobel/).
She has her own website (http://www.mariavallejonagera.com/) and YouTube channel (http://www.youtube.com/user/jacasotemar)!

Alejandra and María Vallejo-Nágera y Zóbel-de Ayala
are two of the three children born to renowned Spanish
psychiatrist and author Dr. Juan Antonio Vallejo-Nágera and
Filipina heiress Doña María Victoria "Viky" Zóbel-de Ayala.

Doña María Victoria is the elder sister of Philippine billionaire
Don Jaime Zóbel-de Ayala, former Chairman and current
Chairman Emeritus of Ayala Corporation in the Philippines.
He is the richest man in the Philippines and one of the richest in Asia!
Doña María Victoria currently resides in Sotogrande, Spain!

The Zóbel-de Ayala family is part-Tagalog, Spanish-Basque, and German!

The Cebuano Exultor

January 13th, 2009, 12:19 PM

^^ Here...here. I completely agree. :yes:

jpdm

January 13th, 2009, 12:33 PM

in this day and age of information technology, the way to go for the philippines to be progressive is through decentralization and decongestion. pgma is on the right track of developing infrastructure in the countryside as opposed to the monopoly of the metro manila area during the marcos era.

Well, experts from World Bank have different ideas...

Manila Times
Tuesday, January 13, 2009

NCR should become
more dense – economists

Economic growth in the Philippines remains unbalanced with Metropolitan Manila accounting for a third of the country’s economy, economists said Monday.

Despite having a population of around 12 million and a high density of poverty, the Philippine government should encourage more economic activity in the capital rather than try to disperse it around the country, they said.

Speakers at a World Bank forum on economic geography said studies showed the concentration of population and economic resources in one city was not a disadvantage and could actually spur growth.

University of the Philippines economist Arsenio Balicasan said experience in other countries showed governments should have policies that “encourage economic density.”

Balicasan said Metropolitan Manila actually had relatively low urban density compared to other Asian countries and could use more people and economic activities.

Government figures show Metro Manila, with a land area of 619.5 square kilometers has a population density of 18,650 people a square kilometer.

Figures also show Metro Manila had the lowest poverty incidence and highest living standards in the country.

“There is nothing bad about economic concentration,” said World Bank country director Bert Hoffman.

The World Bank report showed economic activity throughout East Asia was concentrated in key regions, which attracted huge populations of migrants.

The key elements were the mobility of workers to migrate to areas of economic growth and the integration of these areas to the global and regional economy, the experts said.

“The Philippines has to be more ambitious. It has to encourage more density,” said World Bank economist Indermit Gill.

He said “governments should facilitate the geographic concentration of production but they must also institute policies that make the provision of basic needs such as schools, roads and sanitation, more universal.”
-- AFP

MatudNilaBaby

January 13th, 2009, 10:46 PM

^^ Here...here. I completely agree. :yes:

citing hongkong and singapore is a good example of economic concentration but the sad reality of these places is that they have no where to expand. the philippines is a different league because it has a vast array of land comparable to that of japan or a us state like california maybe.

isnt metro manila creating an urban sprawl in itself encroaching to other towns and cities farmlands and wildlife, and pretty soon there's not going to be any nature left in the province, then the metropolis becomes a metropolitan province. and the metro province will encrouch in towns and cities in the adjacent provinces and in the end we become a metropolitan country like the tiny singapore.

speaking of quality of life, i dont think the people in the regional centers would want a life of unhealthy smog, congestion and chaos in the metropolis.

do you think that upgrading existing insfrastructures in the metropolis would save cost to the local government? hell no, why because that old structure will not be able to accomodate the growing population. so you have to build a new superstructure that will cost the government more. and what happens to the people in the countryside? LEFT BEHIND.

such a theory of economic concentration is a good propaganda for metro manila as it is losing grounds and popularity over regional centers throughout the country.

filcan

January 14th, 2009, 01:27 AM

dessertfox

January 14th, 2009, 08:48 AM

What good is it to have only one main urban centre in the Philippines? If you look at the United States for example the country is divided into different states where in each of those states has at least one main urban centre. Economic activity is multiplied at least 50 times (50 states) in the US because of its dense urban areas. The Philippines could at least concentrate growth in the main urban centres in Luzon, Visayas, and Mindanao or better yet the newly proposed Super Regions rather than just focusing all economic activity in Manila.

This is not to say that we don’t need to develop countryside, this is being done in what the government had already been doing like creating super region for Agricultural Corridor for Mindanao and North Luzon. While Central Visayas for Tourism and NCR for Business Center.

In city Master Planning approach this much like zoning, say CBD, Mixed Used, Residential or Green. Even in a CBD zone for example not all buildings are high rise. This has similar approach in country wide development where you need to apply strategic allocation just like the idea of super regions.

The Philippine is not a big country and having so limited resources to waste. What the expert is saying is to best utilized first what we have, improve from there. Look at Japan model they preserved their own forest and resources and improvement still continuously being undertaken. That’s why they have this Bullet Trains going far out of the city, subways and overpasses to maximized traffic movements. In Japan you will never see rampant disregards of their natural resources and it is envious that they have this Japanese Garden culture even in their roof or simple pocket gardens. They are even self-sufficient with rice with their so rugged landscape it is because of their careful planning approach.

Anyway, it is by these Develop countries experiences to suggest and they are paying dearly for it like what is happening in U.S. with their so much sprawling that benefit only developers and banks, now their housing program collapse, their dependence on petroleum and cars that benefits only carmakers. It could be only this time U.S. may implement what other Asian and European model had already accomplished say in green energy, urban planning or transportation (see below).

http://t4america.org/

jpdm

January 14th, 2009, 10:19 AM

I agree with the experts from World Bank. Just improve whatever we have in traditional urban centers i.e. such as Baguio, Dagupan, Cabanatuan City, Iloilo, Bacolod, Cebu, Tacloban, Cagayan de Oro, Iligan, Davao and geeral Santos City
aside from Metro Manila.

The infrastructures are already there especially for industrial and commercial purposes. Let the countryside remain rural and agricultural.

But, as one forumer mentioned, lets connect all of these areas to the urban centers with efficient and modern transportation system i.e. Northrail and Southrail, modern Ro-ro facilities and brand new inter-island ships, airports, light rail transport system, good road networks and other efficient transport system.

At the same time, modern communication facilities should be installed. Rural villages are connected to urban centers via internet, broadband, GSM, 3G, satellite connections.

This will preserve whatever is left of our agricultural and rural/hinterlands. Our Forest cover should in fact be expanded and mountainous areas should not be used as residential lands.

Goku_25

January 14th, 2009, 01:07 PM

filcan

January 15th, 2009, 02:43 AM

This is not to say that we don’t need to develop countryside, this is being done in what the government had already been doing like creating super region for Agricultural Corridor for Mindanao and North Luzon. While Central Visayas for Tourism and NCR for Business Center.

In city Master Planning approach this much like zoning, say CBD, Mixed Used, Residential or Green. Even in a CBD zone for example not all buildings are high rise. This has similar approach in country wide development where you need to apply strategic allocation just like the idea of super regions.

The Philippine is not a big country and having so limited resources to waste. What the expert is saying is to best utilized first what we have, improve from there. Look at Japan model they preserved their own forest and resources and improvement still continuously being undertaken. That’s why they have this Bullet Trains going far out of the city, subways and overpasses to maximized traffic movements. In Japan you will never see rampant disregards of their natural resources and it is envious that they have this Japanese Garden culture even in their roof or simple pocket gardens. They are even self-sufficient with rice with their so rugged landscape it is because of their careful planning approach.

Anyway, it is by these Develop countries experiences to suggest and they are paying dearly for it like what is happening in U.S. with their so much sprawling that benefit only developers and banks, now their housing program collapse, their dependence on petroleum and cars that benefits only carmakers. It could be only this time U.S. may implement what other Asian and European model had already accomplished say in green energy, urban planning or transportation (see below).

http://t4america.org/

Yes public transportation is key. Many cities in the US and Canada are facing the consequences for not upgrading their public transportations all these years and all you see is increasing amounts of traffic with little being done about it because there is no money for it and construction will only increase traffic. Its not too late for cities in Philippines to plan for the future. Hopefully its not too late for Manila.

RonnieR

January 15th, 2009, 11:13 AM

RP has lowest macroeconomic risk in Asia –- Credit Suisse
WEDNESDAY, JANUARY 15, 2009 | ECONOMY

MANILA (PNA)-- The Philippines has the lowest macroeconomic risk in Asia, indicating it is the most ideal place in the region to invest in, latest report of Switzerland-based Credit Suisse revealed.

The country has macro risk score of 46, compared to China at 54 and Thailand at 70. Low scores indicate less risks of investing in a country.

The global market equity report ranked the Philippines no. 1 among Asian countries, except Japan, because of its current account surplus, domestic sales exposure and net commodity exports.

“The Philippines, China and Thailand look the most attractive on this measure,” it noted.

The Philippine current account balance recorded an average of 2.5 percent of gross domestic product (GDP) compared to Thailand at 1.4 percent and China at 4.3 percent.

Current account balance is the difference between a country’s income from foreign sources and foreign obligations payable, excluding net capital investment.

“We prefer the countries with current account surpluses,” it noted. “This is critical factor, for if a current account deficit cannot be financed, either the currency has to weaken or there has to be domestic deflation.”

The Philippines posted a surplus in its current account balance with a ratio of three percent to GDP.

This means that when a country’s current account balance is positive, also known as running a surplus, the country is a net lender to the rest of the world.

The Credit Suisse noted these factors make markets in Asia better investment destinations than other emerging markets and nearly all developed countries.

It pointed out share prices in emerging markets in Asia have cheaper valuations and offer stronger returns on equity investments.

stanleymalls

January 15th, 2009, 04:02 PM

^^ Nice! Napost ko na yata to sa Good News Thread eh.....

GO GO GO PHILIPPINES! :cheers:

jonno

January 16th, 2009, 05:51 AM

With the world economic slowdown worsening, the Philippines is far from immune (contrary to what others want us to believe). While the 'everything is OK' propaganda helps in re-assuring the public, it is still much better to prepare the country to the reality of the situation. One possible impact of a worldwide recession is deflation in some goods and services. In the Philippines for example, I predict that the rent for many high end houses and condos could slide to as much as 60% starting within the next 12 months.

Here's some advice I could give:

- If you are a landlord and you could 'lock in' your tenant for at least 12 month lease at the current rates, do so.

- If you are a tenant in a high end condo/house, try to negotiate for a lower rent before signing a contract, more and more high end dwellings are getting unoccupied.

- For tenants, if you could avoid signing a contract for the current market rates then don't - rents would start sliding down within the next 6 months.

- If you are a tenant renting a commercial place, try to negotiate for a lower rent (despite having a contract) - most commercial buildings owners would rather lower their rent than see their buildings go empty. Also have an exit strategy just in case, sometimes it's better to just close the business down (temporarily).

- Tourists could expect cheaper accommodation in the Philippines starting this year.

- If you are one of those few who still have heaps of liquidity then starting the middle of this year could be the best time to buy properties at a bargain. Bear in mind however nobody knows when exactly the prices would rebound as the recession could probably last from 2 to 10 years.

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

Maxxclip

January 16th, 2009, 06:00 AM

^^good advice:okay:

bledzoe

January 17th, 2009, 04:47 AM

DTI sees P458B in ’09 investments

By Abigail L. Ho
Philippine Daily Inquirer
First Posted 03:03:00 01/17/2009

The Department of Trade and Industry (DTI) expects investments this year to reach P458 billion, with no change in the amount of investments to be registered with the Board of Investments and a 10-percent growth in those with the Philippine Economic Zone Authority, Trade and Industry Secretary Peter Favila said.

Projects to be registered with the Board of Investments are forecast at P288 billion — they totaled P288.4 billion in 2008 — and those with the Philippine Economic Zone Authority at P170 billion, compared P154.8 billion last year, Favila said in a presentation before local business groups and foreign chambers of commerce.

Last year, investments in the electricity, gas and water supply sector amounted to P128.5 billion, in the real estate, renting and business activities sector P118.2 billion, and in the manufacturing sector P90.25 billion, he said.

He said the investments registered last year should generate 176,000 new jobs.

Local investors accounted for P279.3 billion, 63 percent, of last year’s total and foreign investors accounted for P164.0 billion, he said.

This year, investments in the information technology and business process outsourcing (BPO) sector, are expected to grow 20-30 percent, Favila said, quoting estimates made by the Business Process Association of the Philippines.

Exports this year are expected to grow 3.0 percent to $64.1 billion despite the weakening of the economies of the country’s main trading partners, Favila said.

Services exports — including BPO, tourism, and game product development — may account for the bulk of this growth with a projected contribution of $16.4 billion, up 40 percent from $11.7 billion in 2008, he said.

“Although we expect the full effects of the global crisis to happen this year, as it has already been felt by a number of our revenue stream exports, we have made our adjustments to deflect these effects,” Favila said.

Last year, exports rose 6.0 percent, with services as the top contributor. Edited by INQUIRER.net

bledzoe

January 17th, 2009, 04:57 AM

RP moves to boost revenues

Eyes more sin tax

Reuters
First Posted 17:26:00 01/16/2009

MANILA, Philippines -- Finance secretary Margarito Teves unveiled a series of measures on Friday to shore up revenues this year, including a plan to impose higher taxes on tobacco and beer.

"This proposal is probably the most acceptable to the Filipino public of all the proposed revenue enhancement measures because we are increasing tax on vices," Teves told a gathering of Philippine businessmen.

Teves said he wants Congress to approve the increases on "sin taxes" in the first quarter of the year, alongside proposals to rationalize fiscal incentives, simplify the income tax system, and remove the salary cap on tax and customs personnel.

Teves said the increase in the tax on alcohol and tobacco products alone would generate as much as P30 billion ($635 million) in additional revenues in the first year of its implementation.

The government hopes to keep the budget shortfall below P102 billion this year after an estimated P75 billion deficit in 2008.

Additional income from the four proposed revenue schemes would go a long way in helping the government sustain fiscal improvements, which were largely achieved due to spending cuts. But economists said he would find it difficult to push the policies through Congress.

"If Teves is able to get his timetable, at least one of them is approved, that augurs well for the fiscal side on a long term basis, and therefore the credit standing of the country should be intact despite the difficult economic environment," said Joey Cuyegkeng, an economist with ING bank in Manila.

"But again, the lobbies are strong from both sides."

Cuyegkeng added that the Philippines' tax to GDP ratio was lower than its neighbors in Southeast Asia, and this needed to be rectified.

The government aims to increase the country's tax effort -- tax collected as a percentage of gross domestic product -- to 14.7 percent from an estimated 14.5 percent in 2008, Teves said.

Credit rating firms Fitch and Standard & Poor's have said the Philippine risks losing its fiscal achievements unless it improves revenue collection, curb widespread tax evasion, smuggling and corruption.

Based on preliminary government data, at least 12 percent or 70,000 corporations registered with the Philippine Securities and Exchange Commission are not listed with the Bureau of Internal Revenue (BIR), Teves said.

The finance chief said his office was also looking at technology-based measures to plug tax leakages, such as allowing the use of credit cards to pay taxes, and modernising the systems of the BIR's regional offices.

Juan Pilgrim

January 18th, 2009, 01:01 AM

Philippines can weather economic fallout — outgoing IMF official

http://www.bworldonline.com/BW011709/content.php?id=052

The Philippines can cope with the global economic fallout due to fiscal and economic reforms in place, outgoing International Monetary Fund (IMF) country representative Reza Baqir said on Friday.

In his farewell call to President Gloria Macapagal-Arroyo in Malacañang, Mr. Baqir said while many countries would be hit by the economic fallout, vital measures, particularly the imposition of the value-added tax (VAT), would shield the Philippines from the meltdown’s negative effects.

"This global economic crisis is going to pose challenges to all countries. The Philippines today is in a much better position to handle these challenges precisely because of the important fiscal and economic reforms implemented by the administration," he said.

"In particular, I am referring to the reforms of the value-added tax that was successfully implemented in 2005 and 2006," he added.

The VAT law, which was implemented in November 2005, expanded the coverage of the tax to include oil and electricity, among others. Amid opposition from various groups, Congress in February 2006 raised the rate to 12% from the original 10%. Mr. Baqir also cited the resilience of Philippine banks against the impact of US subprime mortgage woes.

"There are many financial systems in the world which have experienced stress due to the turmoil in the financial market. So far, the Philippines has not been one of those and Philippine banks have very little exposure to subprime," he said.

Economic managers said the economy will still grow this year albeit at a slower rate due to the financial turmoil that has affected markets around the world.

The government sees the economy growing by 3.7%- 4.7%, slower than the actual three decade-high 7.2% in 2007. It had expected the economy to grow by 4.1%-4.8% in 2008.

Mr. Baqir was accompanied by his wife Zareen and his two-year old son Shammeer. He served as IMF representative to the Philippines for three and a half years.

The economist from Pakistan said among the things he will miss is wearing his Barong Tagalog, a formal Philippine men’s wear.

Mrs. Arroyo awarded Mr. Baqir with the Order of Sikatuna with the Rank of Maringal na Lakan or Grand Officer "for his pivotal role in assisting Philippine policy makers in crafting timely and effective economic strategies."

He and his family will return to the IMF headquarters in Washington D. C. on Sunday. — Alexis Douglas B. Romero

:horse:

Juan Pilgrim

January 18th, 2009, 01:10 AM

Economic managers present agenda to curb impact of global slowdown

Business wants sustained effort
BY JESSICA ANNE D. HERMOSA

http://www.bworldonline.com/BW011709/content.php?id=001

The government will primarily seek to generate jobs, increase revenues, fast-track infrastructure spending and reduce the poverty level to mitigate the impact of the global slowdown, economic managers told a meeting with business groups on Friday for the year’s economic outlook.

The economic agenda comes amid decelerating investment pledges and export performance that are seen to displace workers in the export sector, officials said.

Business leaders, meanwhile, called on the government to follow through on such plans and support local firms by intensifying the promotion of exports, and patronizing local suppliers for government purchases.

"The effects of the global economic recession are being felt across the region. First, by the major economies and now these are upon us," Trade Secretary Peter B. Favila said at the meeting.

There will be no growth in investment commitments recorded by the Board of Investments in 2009, Mr. Favila said, as the agency expects to post the same figure of P288.35 billion last year.

Investments to be committed with the Philippine Economic Zone Authority, meanwhile, are expected to hit P170 billion by yearend, up by 9.8% from the 2008 figures, Mr. Favila said, noting that these will come mostly from business process outsourcing firms.

Total sales of exports of goods and services will grow by 3% to P64.073 billion, slower than the 6% growth in 2008, he added.

"It will be the export-oriented enterprises and the overseas Filipino workers that will be most affected," Socioeconomic Planning Secretary Ralph G. Recto said.

Underground economy

To this end, the Trade department (DTI) will be looking to the "underground economy" of small to medium enterprises to keep the economy afloat.

"We at the DTI have laid out programs to strengthen and reinforce our small and aspiring businessmen through livelihood creation and job generation.

Trade missions, for instance, have been shelved for the time being, in countries where consumer spending has gone down," Mr. Favila said, adding that the funds will be allocated to training displaced workers become entrepreneurs.

The Trade department will also prioritize "maximizing benefits from trade agreements and raising [the] country’s competitiveness [by] cutting red tape," according to data from Mr. Favila’s slide show. Improving tax collection

The Finance department, meanwhile, will focus on improving tax collection given the planned higher spending for infrastructure and social services, Finance Secretary Margarito B. Teves said.

In particular, Mr. Teves called for an increase in excise taxes on cigarettes and alcohol as "this measure has the biggest revenue impact."

"We are encouraging Congress to? increase tax on sin products," Mr. Teves said, noting that would yield P20 to P30 billion in additional tax during the first year of implementation, and P60-70 billion annually starting on the fourth year.
"[We need to] prod Congress to get this revenue-enhancing measure approved not later than the first quarter to have those revenues support the projects outlined by DTI and NEDA (National Economic and Development Authority)," Mr. Teves said.

The Finance department will also be working on matching Bureau of Internal Revenue (BIR) records with those of the Security and Exchanges Commission and local government units, as many businesses are not registered with the BIR, Mr. Teves said.

Streamlining Customs procedures through computerization, further privatization of state-owned corporations, and policy consultation with the private sector will also be conducted to improve tax collection, he added.

In a separate interview, House ways and means chairman and Antique Rep. Exequiel B. Javier said hearings on the bills increasing the excise tax on so-called vice products — tobacco and alcohol — will start Tuesday next week but refused to say whether the committee is inclined to approve the measure.

"As chairman I can’t pre-empt the judgment of the committee on the fate of the bills," he told BusinessWorld. Mr. Javier said the House is passing the fiscal incentives bill next week after it resumes session on Jan. 19. Congress has been on a month-long recess since Dec. 17.

At the Senate, Senator Panfilo M. Lacson, chairman of the committee on ways and means, said the chamber is inclined to pass measures simplifying vice taxes and rationalizing fiscal incentives.

"We just have to reconcile the positions of DTI and DoF [Department of Finance] on the fiscal incentives. It’s just a matter of prioritizing investments and revenues," he told BusinessWorld in a separate interview.

Mr. Lacson has filed a measure simplifying vice taxes, which would be implemented on a "two-tier" basis from the current numerous classifications. A public hearing on the proposals has been scheduled for Jan. 27, the solon said.

Mr. Lacson said the fiscal incentive measure, which has been approved by the House on second reading, would likely be passed by the Senate before sessions adjourn on March 6. He, however, was unsure on the vice tax measure since the House has yet to act on the proposal. All tax measures emanate from the House of Representatives.

Strong government spending

Also during the briefing, Mr. Recto said government spending will be strong in the first half.

"The private sector will have a wait-and-see attitude in the first six months and that is understandable. That is why government will increase spending? from 20% of GDP (gross domestic product), government participation will be 40%," Mr. Recto said.

He said procurement contracts must be awarded in the first quarter, while projects with right-of-way problems "will have to wait? quick disbursement of funds for high impact projects [will be prioritized]," Mr. Recto said.

He reiterated the government’s plan to shoulder half of the P100-billion public-private sector fund for infrastructure projects.

He added the government will be "intensifying social protection services," including a doubling of the conditional cash transfer budget to P10 billion from the planned initial amount of P5 billion.

Stimulus spending, however, should not be limited to social services and should also include infrastructure projects and training programs as these will improve productivity, John D. Forbes, American Chamber of Commerce of the Philippines, Inc. legislative committee chairman, said in a text message after the meeting.

Peter L. Wallace, governor of the Management Association of the Philippines, noted that the government will have to exert "radical" efforts as infrastructure projects entail a long implementation period.

"It takes five to eight years for an infrastructure project to start in the Philippines? [We should] do away with the bidding. I suggest we ask contractors to submit capabilities for accreditation and award [contracts to them]," Mr. Wallace said.

"I’d like to see government guarantee a minimum return on investment for new businesses. Foreign investment is extremely low in the Philippines and we have to get wider attention," he added.

A concrete plan and budget should be spelled out, Business Process Association of the Philippines Chief Executive Officer Oscar R. Sañez told reporters at the sidelines of the event. "That’s what the private sector understands," he added.

Mr. Sañez also called for government support in marketing the business process outsourcing sector abroad as India is intensifying its own promotion efforts.

Federation of Philippine Industries President Jesus L. Arranza, for his part, called on the government to give preference to local suppliers for state-funded infrastructure projects and other government procurements. — with Jhoanna Frances S. Valdez and Bernard U. Allauigan

:horse:

bartstrife99

January 18th, 2009, 01:59 PM

RP firm AgriNurture to list shares in Australian bourse

A Philippine company with operations in agriculture, trading and marketing, AgriNurture Inc. (ANI) will be listed on the National Stock Exchange (NSX) of Australia, an exchange that caters to small and medium-sized companies, on January 19, 2009 becoming the first Philippine firm to be listed on that bourse.

ANI will be traded under the NSX code "FCA" (First Choice Always), which is also the flagship brand for its vegetable products in the Philippines.

This was disclosed by Antonio Tiu, President and Chief Executive Officer of ANI, who believes that listing on the NSX will provide its shareholders with the surety of a transparent and regulated market. "We believe aligning with the Australian capital market through a NSX listing, and eventually a capital raising, is the right strategic move for ANI and will greatly enhance our expansion plans," he said. Tiu advised, however, that Filipino investors interested to buy ANI shares should contact the brokers listed in the NSX Web site, www.nsxa.com.au.

In its early years, Agri-Nurture, Inc. started as a business that focused on the importation, trading, and fabrication of post-harvest agricultural equipment. Since then, AgriNurture Inc., or ANI, eventually blossomed into becoming a world-class agro-industrial company that supplies high-quality agricultural products – and has captured the attention of people from many countries around the world.

Tiu said the underlying vision of ANI during its incorporation was to help uplift and improve the productivity and income of the Filipino farmer, which explains why it continues to foster the belief that the country’s rich yet largely untapped agriculture industry would be its biggest asset into becoming a fully-developed and self-sustaining economy.

In line with this objective, the company implemented a "farm-to-plate" business model that is unique to ANI and fully in-sync with its corporate vision of becoming a globally-competitive supplier of high-quality agricultural food products. The farm-to-plate concept calls for the harmonization of all of ANI’s business activities, from farming, packing, trading, distribution, processing, canning, and even up to sales. With this concept, ANI is now in the most ideal position to elevate and encourage more private sector investments in the agriculture sector, presenting it as both a viable business endeavor and at the same time, the most practical way towards self-sufficiency, sustainability and development for the country’s shaky economic condition.

Tiu said ANI is fully dedicated in helping Filipino farmers become self-sustaining and encourage other Filipinos to invest in the agriculture business and help them grow together with ANI.

Currently, company executives are developing a franchising model called "Pangkabuhayan Project," a vegetable cart project under its FCA subsidiary, as part of its expansion initiatives. The project is deemed encouraging enough for potential franchisees in terms of substantial return of investment opportunities despite minimal financial exposure.

Lucentino

January 18th, 2009, 05:27 PM

This has been the debate among urban planners U.S. in particular. They realized that there are so many defect in their concept of “Urban Sprawl”. That’s the reason why there are some on-going programs among city state what they call “Smart Growth” concept. Wherein, they are trying to maximize city functions. Say an example utilization of those vacant lots, walkable city or pedestrian friendly. Such one good example of the failure of most U.S. cities is their too much dependence on automobile. Anyway, below are some of the good pointers of the study done in U.S.(see below)

In Asia such one good example of progress are the small city estate like Hongkong or Singapore, yet with such small area they still manage to conserved their nature reserves. Just imagine if the Philippines could duplicate Hongkong say in Subic or Singapore say with Cebu or Davao, Dubai of Makati, Pasig, Taguig or say Baharain in Q.C. and so forth. Given the strength of those small countries combined!

*edit*

... Hong Kong in Subic
... Singapore in Clark
... Dubai in Cebu
... Macau in Ilo-ilo
etc. etc. etc.

No doubt, this is definitely a good idea, except that RP government does not have the funds, and not enough capitalist want to invest in RP. The political imbalance can tip the other way anytime, and the informal settlers can ruin the view overnight. And lets not talk about the weather (atleast 15 or more typhoons per year)!

But this dream is not imposible... only if RP can elect a good & respectable leader with vision and political-will next election!

dessertfox

January 18th, 2009, 09:40 PM

... Hong Kong in Subic
... Singapore in Clark
... Dubai in Cebu
... Macau in Ilo-ilo
etc. etc. etc.

No doubt, this is definitely a good idea, except that RP government does not have the funds, and not enough capitalist want to invest in RP. The political imbalance can tip the other way anytime, and the informal settlers can ruin the view overnight. And lets not talk about the weather (atleast 15 or more typhoons per year)!

But this dream is not imposible... only if RP can elect a good & respectable leader with vision and political-will next election!

With the economic reforms like implementation of the VAT, Philippines can move forward and seems that we are on our way to political maturity. Example is the case of Quezon City achievements in Tax Collection and their share in infra project I thought there’s no turning back. Now Q.C. is becoming a model of development not only inside the country but other cities as well.

With the current shifting of economic center as being predicted by expert the future lie in the region, thus, we should take this opportunity for the country’s benefit.

I thought zone development with Singapore level is achievable, if we look at the case of Cebu’s current economic performance with the size 5,088 sq. km. compared to Singapore’s 637 sq. km. of land mass that’s 8 x the size. We could therefore translate this into 8 to 1 possibilities. Even if they under-achieve performance in reverse still Cebu can still gain Singapore’s economic size in shorter span as experienced by Singapore which started to industrialized only in the early seventies. That was same time when Philippines started also to put up industrial zones like Bataan Export Processing Zone, which could be also our right track if not for the cronies and mismanagement of the late dictator.

Japan or Taiwan is just on the same typhoon path, even those part of China where there is highest growth and still above 10%.

Our population growth peaked already and now on the decline and we are learning to use the potential of our poor, now even Aetas is being hired as welders in Australia, and the never ending needs of service oriented jobs accross the globe which our strenght.

To accomplish great things, we must not only act, but also dream; not only plan, but also believe. ---- Anatole France

wheel of steel

January 19th, 2009, 02:57 AM

Animo

January 20th, 2009, 12:09 AM

Written by Outside the Box / John Mangun (http://businessmirror.com.ph/index.php?option=com_content&view=article&id=4805:bailout-the-true-story&catid=28:opinion&Itemid=64)
Tuesday, 20 January 2009 00:21

We are heading into very dangerous times. Two thousand nine may add more weight to the theory that the world experiences a great upheaval every 70 years.

While I strongly believe that those who are casting grand doubt on the Philippines being able to weather and even prosper during these times are very wrong, these are dangerous times, nonetheless.

Newspapers are filled with stories coming out of the US regarding the shrinking economy and the fallout of deflating asset values and unemployment. Yet, what is happening across Europe, and mostly unreported to you, is much worse.

For example, the Baltic nations and the south Balkans have experienced the worst riots since the fall of Communism. In Latvia since 2007, property prices have gone down 56 percent and the economy contracted at an 18-percent annual rate over the last six months. Ireland’s economy will shrink by 4 percent in 2009. Spain is looking at 15 percent to 25 percent unemployment this year.

In the last six months, the US government took action that should have and could have diminished the effects from 20 years of excessive and easy credit. The hundreds of billions of dollars spent as “rescue” or “bailout” money could have been spent in a way that would have had a positive impact. Instead, as the events of the last week have shown, things have been made worse for 2009.

The American people were sold that the idea of spending all that money was to “unfreeze” the credit markets by providing additional funds and liquidity to the banking sector. The secondary purpose was to keep large financial institutions from going under. In reality, little of that money unfroze anything and most went to financially worthless banking institutions.

The Bank of America was given billions to save Merrill Lynch. Yet, now, the Merrill Lynch bailout has proven disastrous for Bank of America, which, in effect, has been taken over by the US government. Citigroup was just broken into two separate companies in order to save and isolate whatever sound business interests still remain.

The Big Lie that these billions were used to add much-needed funds to the credit markets has been completely exposed. All the money that has been spent under Bush and all the more money that will still be spent under Obama is only to bail out failing companies.

As funds were used to save these bad companies, the argument went that it was important to keep them from going out of business supposedly to save jobs, restore confidence, and keep the financial sector sound and stronger. And “saving” these companies is what will make the situation much, much worse.

Spanish philosopher George Santayana (whose parents met in the Philippines) once said, “Those who cannot remember the past are condemned to repeat it.”

Remember the Asian crisis of 1997? Apparently, the West has forgotten how that happened.

South Korea faced some of its largest conglomerates going bankrupt because these companies were poorly managed. The South Korean government stepped in with bail out packages to save jobs and restore confidence. Thailand tried to bail out its banking sector, an industry that was going under due to bad lending practices, to keep its financial sector sound and stronger. Had Korea and Thailand just let the economy and business work out of the mess, there might not have been the crisis.

The pressure on the Korean won and the Thai baht caused a currency collapse that spread across the region. Fortunately, the larger and stronger economies of the West, Japan and, to a lesser degree, China, cushioned the impact in terms of its severity and contained the fallout to Asia. China capitalized on the problems of its neighbors even as trillions of dollars of Western money poured into Asia. The West saw and took advantage of investment opportunities in the weakened Asian economies. China was a great beneficiary.

The same mistakes that caused the Asian crisis are being repeated in the West even as we speak.

Hundreds of billions of dollars spent to save bad companies are not going to stop those companies from failing, as the Korean experience proved. Further, that same money could be spent to soften the impact from these failures.

I know that this is a cruel analogy, but it does apply. We have all heard stories of the family who spends all of its assets on medical expenses in a losing battle to save the life of the dying patriarch. In the end, he still dies and the family is financially wiped out, leaving the next generation with little at all. That is what is happening in the West.

Of course, the US and Western economies will recover. It will take some time. But there is nothing more dangerous than a wounded animal, and the US economy is the biggest around.

The danger lies in the US “encouraging” other countries to follow its example in order to protect its own interests. That is, if countries, even those like the Philippines, divert funds from productive use to “bailouts,” it is in the best interest of the US and the US dollar. Already last year, the US called on joint central bank action for “liquidity” purposes. If the rest of the world does not follow the US polices, the US economy may falter more badly while Europe and Asia, in particular, recover faster.

PSE stock-market information and technical-analysis tools were provided by CitisecOnline.com Inc. E-mail comments to mangun@email.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it .

RonnieR

January 20th, 2009, 05:13 AM

dancethingy

January 20th, 2009, 11:08 AM

I hardly think Dubai should a model in urban development. The city is far from being a model of good urban planning, let alone be a blueprint for other cities to follow.

... Hong Kong in Subic
... Singapore in Clark
... Dubai in Cebu
... Macau in Ilo-ilo
etc. etc. etc.

No doubt, this is definitely a good idea, except that RP government does not have the funds, and not enough capitalist want to invest in RP. The political imbalance can tip the other way anytime, and the informal settlers can ruin the view overnight. And lets not talk about the weather (atleast 15 or more typhoons per year)!

But this dream is not imposible... only if RP can elect a good & respectable leader with vision and political-will next election!

jpdm

January 21st, 2009, 09:23 AM

I hope local investors will lead the way in putting more money in the country.

lancetrn

January 23rd, 2009, 02:43 AM

Hey guys check out the Philippines in FT.com's Asia Economic Weather Map:

http://www.ft.com/cms/s/0/f80cd30e-e88d-11dd-a4d0-0000779fd2ac.html

DoggMann

January 23rd, 2009, 05:44 AM

... you wont hear these events taking place on mainstream media...

s097s1bbJy8
Protesting the government from noon on january 20. 2009. At 01:00 january 21. 2009 they are still protesting. The Icelandic revolution has begun. People are loosing their job, their houses, their savings and the government is debating on weather to allow alcohol to be sold in supermarkets or not!!! Enaugh is Enaugh. NEW PEOPLE=NEW SOLUTIONS

http://www.calgaryherald.com/news/European+leaders+fear+civil+unrest+over+economy/1207093/story.html

European leaders fear civil unrest over economy

By Peter O'Neil, Europe Correspondent, Canwest News ServiceJanuary 22, 2009 3:02 PM

PARIS — Europe, Canada's second-largest trading partner and top global ally after the U.S., is getting pounded by a tidal wave of bad economic news that has prompted warnings of a frightening hike in civil unrest.

Europe's top politicians are so rattled by the prospect of growing protests that they have arranged an emergency leaders' summit in March to deal with growing tensions, the Daily Telegraph reported Thursday.

The latest spate of grim economic news here Thursday included a plunge in consumer spending in France, tumbling factory orders in the United Kingdom, predictions of an even deeper recession this year in Germany, and continued concern about the impact of billion-dollar bailouts of the continent's troubled banking system.

Politicians are warily eyeing the public mood that led earlier this week to riot police being forced to rescue Iceland Prime Minister Geir Haarde, whose limousine was pelted by eggs and drink cans hurled by protesters.

Iceland's government will almost certainly fall in coming days, London School of Economics professor Robert Wade told Canwest News Service Thursday.

"The situation is very tense and very unstable," said Wade, who has just returned from a visit to Iceland where he spoke to about 1,000 people about the crisis.

Thousands of protesters have participated in sometimes-violent street demonstrations in Bulgaria, Hungary, Latvia, Lithuania and Greece in recent weeks.

French President Nicolas Sarkozy has warned that Europe could face the kind of demonstrations that paralyzed several capitals in the spring of 1968.

But one analyst said Thursday that the comparison could be an understatement.

"I think fears have moved beyond chic academic protests a la May 1968 in Paris," said Fredrik Erixon of the Brussels-based European Centre for International Political Economy.

A more apt comparison for Iceland and some of the Baltic countries could be the French Revolution of 1789, he warned.

"Ordinary people have seen a sharp fall in their living standards. Savings and wealth for the middle classes have been wiped out," he wrote in an e-mail.

"Iceland's crash in 2008 will go down in history as one of the fastest decline in wealth the world has ever seen. Few things trigger radical change and revolution as people losing wealth in a way which is felt to be deeply unfair."

The Daily Telegraph, citing an unidentified senior European Union official, said the March summit of leaders would look at ways of dealing with soaring unrest.

Stock exchanges in London, Paris and Frankfurt all lost ground Thursday during a day dominated by negative economic reports.

The International Monetary Fund, for instance, predicted a "sizable" and "possibly extended" recession in Germany this year.

The IMF, revising downward a previous prediction, said Germany's economy is expected to contract by 2.5 per cent.

"The economic downturn in Europe is hurting Canadian exporters, especially given that increases in bilateral trade have been pronounced over the past few years," according to Jason Langrish, director of the Canada-Europe Roundtable for Business.
© Copyright (c) Canwest News Service

DoggMann

January 23rd, 2009, 05:52 AM

Barack Obama Elementary School...
YfSW-F6dr1Q

DoggMann

January 23rd, 2009, 06:17 AM

Dr. Ron Paul on Glenn Beck 1/21/09

k24BUkNWCjY

TambayBlues

January 23rd, 2009, 10:30 AM

Barack Obama Elementary School, LMAO. Looks like that guy needs to get a bailout too. Lol.

dreamtime07

January 23rd, 2009, 01:26 PM

bartstrife99

January 23rd, 2009, 01:54 PM

Hey guys check out the Philippines in FT.com's Asia Economic Weather Map:

http://www.ft.com/cms/s/0/f80cd30e-e88d-11dd-a4d0-0000779fd2ac.html

Totoo ba yung weather forecast nila? nasa good conditon ang RP :lol:

RonnieR

January 24th, 2009, 04:01 AM

SC Johnson to invest in RP's BPO industry
By Ma. Elisa P. Osorio Updated January 24, 2009 12:00 AM

Household consumer products manufacturing giant SC Johnson will invest in a business process outsourcing (BPO) facility in the country, the Board of Investments (BOI) announced yesterday.

In an interview at the BOI head office, BOI Director Celeste Ilagan said SC Johnson will put up a 200 people captive service facility in Makati possibly near its existing office in Rockwell.

“We are very optimistic on the prospects of the BPO industry. The Philippines is a good location,” Ilagan noted.

Initially, Ilagan said the center will provide back office services like human resources and accounting.

“Usually that’s how companies start here in the Philippines. Some eventually move into other support services,” she added.

Ilagan said she is not certain when the BPO facility will start operating. “They already hired 50 of the 200 people. They can start soon,” she said.

Ilagan said the reason why the Philippines got the account was because of the reliable talent base in the Philippines .

“They (SC Johnson) have been here for a long time. This is the reason why we got the project and why they located here,” she explained.

SC Johnson makes Johnson wax, Glade, Mr. Muscle and other household consumer products.

Ilagan said they are courting several US based companies to locate their back operations here. “We expect the industry to grow significantly within the year.”

For its part, the Business Process Association of the Philippines (BPAP) said three more BPOs are expected to come in. The industry however refused to disclosed the firms.

BPAP said the BPO needs the support of the government especially in the promotion of the country as a good offshoring destination.

“This year will be a busy year for us in terms of attracting new investors,” BPAP President Oscar Sanez said in an interview.

Sanez said they are intensifying their efforts to get more BPO centers to locate in the Philippines as they aim to grow the industry. The 2010 BPO roadmap targets to create one million jobs for the industry by 2010.

However, Sanez said the BPAP cannot do it alone. “We need the support of the government especially for our marketing missions,” Sanez noted.

For this year, the BPAP’s target revenue is $7 billion. Last year, the industry earned $5 billion. By 2010, the industry expects to earn $12 billion.

kiretoce

January 24th, 2009, 04:10 AM

Best Countries for Women (http://lifewise.canoe.ca/Forbes/2008/11/20/7479216-forbes.html)

A recent study ranked Norway as the best country in the world for women, with Finland and Sweden coming in close behind.

Female empowerment is embraced more today than any other time in world history. And in the global push for gender equality in everything from business to politics, education to health, it's Europe that has made the greatest strides to close the so-called gender gap.

Norway, Finland and Sweden are ranked the best countries for gender equality, according to a recent study from the World Economic Forum, the nonprofit organization known for its annual economic summit in Davos, Switzerland, for global leaders. Those Nordic countries and their Western European neighbors account for 16 of the top 30 countries with the greatest gender parity in the world.

Meanwhile, the U.S. ranked surprisingly low at No. 27, behind Lesotho (No. 16), Mozambique (No. 18) and Moldova (No. 20). Not surprisingly, the worst-ranked countries were sprinkled throughout the Middle East and Asia. Garden spots like Chad (129th), Saudi Arabia (128th) and Pakistan (127th) populated the bottom of the list. Yemen ranked absolutely worst at No. 130.

The Global Gender Gap Report measures the size of the gender gap--the disparity in opportunities available for men and women--for 130 countries in four critical areas: economic participation and opportunity, health and survival, educational attainment, and political empowerment. A country's rank is based on the overall score, which is expressed in a percent. The score represents how much of the gender gap the country has been able to close. A score of 100% would represent perfect equality. The majority of the data come from various non-government organizations, such as the International Labor Organization, United Nations Development Program and the World Health Organization.

Norway, ranked No. 1, scored 82%. Finland came in second place with an estimated 82%, while Sweden posted a score of 81.4%. The U.S. has closed 72% of its gender gap, according to the study, while Yemen has closed 47%.

Other countries in the top 10 include Iceland (80%), New Zealand (79%), the Philippines (76%), Denmark (75%) and the Netherlands (74%). The U.K. ranked 13th (74%), while Canada ranked 31st (71%), hurt by poor showings in educational attainment and political empowerment.

"Personally, the U.S. was a surprise," said Saadia Zahidi, one of the study's authors. According to Zahidi, much of the year-to-year fluctuations in the list depend on politics. An election year could easily change a country's overall score depending on how many women are elected to public office.

Among the four ranking categories, the U.S. scored lowest in "political empowerment." Finland's score was helped by Tarja Halonen, its female president.

In Latin America and the Caribbean, Trinidad and Tobago, ranked No. 19, had the highest score, thanks to lots of female elected officals. Barbados, included for the first time this year, ranked a surprisingly high 26th.

Israel was the highest-ranked country in the Middle East and North Africa region, at 56th. And in Asia and Oceania, the Philippines and Sri Lanka scored spots in the top 20 for the third straight year.

DoggMann

January 24th, 2009, 07:32 AM

Jim Rogers the UK is FINISHED
XbLfje8_jgI

Jim Rogers on the Asian Financial Forum pt 1/2 Jan 21 2009
P5ODibe2Hvo

Jim Rogers on the Asian Financial Forum pt 2/2 Jan 21 2009
efTm-yFKv9s

DoggMann

January 24th, 2009, 07:33 AM

Max Keiser in Germany! ... spreading the word ... :lol:
is63s4Qfd0Y

bartstrife99

January 24th, 2009, 07:33 AM

Is this is the right thread to post it here?

US senator asks Microsoft to axe foreign workers first

Agence France-Presse | 01/24/2009 9:22 AM

Printer-friendly versionPrinter-friendly version | Send to friendSend to friend

WASHINGTON - A US senator has asked Microsoft to axe temporary foreign workers first under the US software giant's plan to slash up to 5,000 jobs amid a global economic slowdown.

"I am concerned that Microsoft will be retaining foreign guest workers rather than similarly qualified American employees when it implements its layoff plan," Republican Senator Charles Grassley said in a letter Friday to Microsoft chief executive Steve Ballmer.

"As you know, I want to make sure employers recruit qualified American workers first before hiring foreign guest workers," he said.

Microsoft employs thousands of foreigners through an H-1B visa program that allows American companies and universities to employ them temporarily.

"The purpose of the H-1B program is to help companies hire foreign guest workers on a temporary basis when there is not a sufficient qualified American workforce to meet those needs," Grassley said.

"However, the program is not intended to replace qualified American workers," he said.

At present, the United States imposes a general quota of 65,000 H-1B visas annually, many of them issued to those from India, China and the Philippines.

"My point is that during a layoff, companies should not be retaining H-1B or other work visa program employees over qualified American workers," Grassley said. "Our immigration policy is not intended to harm the American workforce."

He asked Ballmer to provide details of the jobs that were being eliminated.

Microsoft on Thursday reported that its net profit fell by 11 percent in the quarter from a year ago and said it was eliminating up to 5,000 jobs over the next 18 months.

The job cuts will be in research and development, marketing, sales, finance, legal, human resources, and information technology, the Redmond, Washington-based company said.

Microsoft employs some 91,000 people and rumors of job cuts at the world's biggest software firm had been circulating for weeks.

isagani

January 24th, 2009, 08:30 AM

Current female governors (18 out of 80 provinces):

Aurora = Bellaflor Angara-Castillo
Agusan del Sur = Maria Valentina Plaza
Antique = Salvacion Perez
Basilan = Jum Akbar
Batangas = Vilma Santos-Recto
Cebu = Gwendolyn Garcia
Davao Oriental = Corazon Malanyaon
Dinagat Islands = Geraldine Ecleo-Villaroman
Isabela = Grace Padaca
Kalinga = Floydelia Diasen
Laguna = Teresita Lazaro
Masbate = Elisa Olga Kho
Nueva Vizcaya = Luisa Cuaresma
Occidental Mindoro = Josephine Sato
Samar = Milagrosa Tan
Sorsogon = Sally Lee
South Cotabato = Daisy Fuentes
Zamboanga del Sur = Aurora Cerilles

Current vice-governors (11 out of 80):
Aklan = Gabrielle Calizo
Antique = Rhodora Cadiao
Ifugao = Nora Dinamling
Lanao del Norte = Irma Ali
Leyte = Ma. Mimietta Bagulaya
Oriental Mindoro = Maria Estela Felipa Aceron
Pangasinan = Marlyn Primicias-Agabas
Quirino = Pasencia Bacani
Sulu = Nur Ana Sahidulla
Tawi-Tawi = Ruby Tan
Zambales = Anne Marie Gordon

I don't mean to denigrate the accomplishments of these women as duly elected officials of their provinces, but (for some of them, not all) one can't help but question whether they were elected (or re-elected) for their excellent record of public service or because they were just a mere link in the chain of political dynasties in their families' respective baluartes.

The Plazas of Agusan del Sur, Garcias of Cebu, Angaras of Aurora, Akbars of Basilan, Ecleos of Dinagat, Tans of Samar, Gordons of Zambales and the Cerilleses of Zamboanga del Sur...

Ph Man

January 24th, 2009, 08:52 AM

bukid

January 24th, 2009, 05:59 PM

jpdm

January 25th, 2009, 02:29 AM

Philippine Star
Villar bullish on RP, calls for new economic model
By Aurea Calica
Updated January 25, 2009 12:00 AM

Former Senate President and businessman Sen. Manuel Villar Jr. remains bullish about the country’s economy but calls for the creation of a new economic model that would ensure growth amid the worsening global crisis.

In a statement, Villar said he is confident of the country’s resilience, noting that the steady flow of remittances from overseas Filipino workers would fuel domestic consumption as well as boost tourism and real estate.

The decline in oil and commodity prices, he said, have also pulled down inflation, allowing the central bank to ease interest rates and spur economic activities.

“We have to think on our own and come out with an economic model that is suited to the Philippines,” he said.

“It is no longer automatic that what is good for others is good for us. We have the intellectual capacity to decide on the model that we should follow and not depend on other countries,” Villar said.

He said the country has a large pool of economists, both in the government and the private sector, who could be tapped to formulate an economic model for the Philippines.

Villar explained the economic models used by western governments and international organizations have turned out to be ineffective in preventing the housing credit problem in the United States from developing into a global crisis.

“The global financial crisis has crunched or destroyed some conventional economic thinking, particularly the Washington consensus. When we finally get out of this crisis we will find that things will never be the same again,” the senator said.

“First, we have been led to believe that big is good, so we encourage consolidations, mergers, combinations, like in the banking system,” he said. “However, the collapse or near-collapse of the world’s biggest banks – UBS, Citigroup, Bank of America and, of course, Lehman – has shattered this once-held gospel truth,” he pointed out. “Big is not necessarily good because being too big also means being unwieldy,” Villar added.

He also said the crisis has shattered belief that less government intervention is better.

– With Artemio Dumlao, Marvin Sy, Sheila Crisostomo, and Pia Lee-Brago

red_jasper

January 25th, 2009, 09:07 AM

‘Militarization’ is Arroyo's way to stay in power - solon
AIE B. SEE and SOPHIA DEDACE, GMANews.TV
01/25/2009 | 12:47 PM

MANILA, Philippines - The alleged “militarization" of the government is President Gloria Macapagal Arroyo’s way to stay in power, a senator said Sunday.

Senator Francis “Kiko" Pangilinan made the statement following the appointments of retired Adm. Tirso Danga to the National Printing Office (NPO) and former Armed Forces chief Gen. Hermogenes Esperon Jr. to the Presidential Management Staff (PMS). Retired Maj. Gen. Jovito Palparan is also reportedly being groomed for a position at the Dangerous Drugs Board (DDB).

"It's all part of the arrangement. This is an issue of survival. She (Arroyo) has to stay in power, to keep her ship afloat. An issue of consolidating her power base," Pangilinan told radio dzBB’s Nimfa Ravelo in an interview Sunday morning.

He added that President Arroyo needs to keep retired and active military officials in her power base to deal with her waning popularity as a result of the “Hello Garci" scandal in 2005.

"What is her power base? The base is no longer the Filipino people in that sense because almost eight out of ten are disappointed. So, if the people are no longer trusting the President, where will she getting her support? She is getting it now from the active and retired military men. She's getting it from the Armed Forces," he said.

The “Hello Garci" scandal refers to the wiretapped conversations allegedly between President Arroyo and former Elections Commissioner Virgilio Garcillano on a plot to rig the results of the 2004 presidential elections.

Curiously, Danga and Esperon were among the ranking military officials being linked to the scandal.

Danga was appointed to the NPO post supposedly to get rid of syndicates in the agency, which prints government forms and documents, including electoral ballots and election returns.

On the other hand, Esperon, as PMS chief, will head an agency that is tasked with managing the development and formulation of the projects and policies of the Office of the President.

Last Friday, Senator Manuel Roxas II said President Arroyo may be brewing plans for term extension and martial law by “surrounding herself with yes-men who won't question any illegal directives."

Full story here (http://www.gmanews.tv/story/145832/%E2%80%98Militarization%E2%80%99-is-Arroyos-way-to-stay-in-power---solon)

jpdm

January 25th, 2009, 09:22 AM

^^^^

I believe so. Its getting obvious.

As if there are no qualified civilian personnels.

laurus

January 25th, 2009, 11:39 AM

Recently released Data by CIA WFB for 2008

Philippines

GDP (purchasing power parity):
$327.2 billion (2008 est.)
GDP (official exchange rate):
$172.3 billion (2008 est.)
GDP - real growth rate:
4.5% (2008 est.)
GDP - per capita (PPP):
$3,400 (2008 est.)

https://www.cia.gov/library/publications/the-world-factbook/geos/rp.html#Econ

jpdm

January 25th, 2009, 12:07 PM

^^^^

It would be more, if more Pinoys will be saved from poverty.

Anyway, this shows the potential of the country as an economic powerhouse.

NOVO ECIJANO

January 25th, 2009, 12:33 PM

wow,3400 per-capita income,it shows that the economy is improving.5,000 by 2010 is possible,hindi na tayo siguro matatawag na mahirap.

espresso1018

January 26th, 2009, 05:56 AM

How many retired generals are there in the appointive posts in government compared to civilians? If the number of retired generals is more than the number of civilians, then that is time one can conclude that indeed there is militarization of the government. But otherwise, there is no militarization. I believe there is none. One or two or three retired generals in the civilian positions is no indication of militarization more so it is not and indication of an attempt to stay in power.

DoggMann

January 26th, 2009, 06:53 AM

whoa!!! paving the road to NATIONAL SOCIALISM ... a pledge to the fuhrer propaganda!!!... something is missing... oh! the fuhrer salute!

XwG5MhVGQ6k
... i pledge to be a servant to our president?... wtf?

jbkayaker12

January 26th, 2009, 08:31 AM

We appreciate the senator's concern for his fellows. But should he really have influence on Microsoft's stand? For a well-established company like Microsoft, there should be a solid basis in retrenching an employee. Most of the times, the basis is performance NOT race. Being a regular staff sometimes does not guarantee you will be indispensable compared with the temporarily hired ones. And as far as jobs outside the US is concerned, Microsoft should empower its overseas operations to cut down costs instead of retaining its pricey operations in the US. There's be no point doing business without or with very small profit margin.

Obviously your concern is for the foreigners working at Microsoft while the US Senator's concern is for his fellow countrymen. You'll just have to wait and see what will happen next. I heard Intel will be laying off people in the Philippines. Oh well I guess Tambayblues, Dogg and their comrades will be glad to hear of the impending lay-offs at Intel in the Philippines.

jbkayaker12

January 26th, 2009, 08:33 AM

Closures Of Japanese And Korean Companies, To Cost 40,000 Jobs In The Philippines

January 25, 2009 7:39 a.m. EST

AHN Staff
Manila, Philippines (AHN) - The imminent closure of several Japanese and Korean IT companies in the Philippines, as well as the downsizing of operations of some, will cost the jobs of over 40,000 Filipinos in the first quarter of the year in south-central Philippines, a workers group said.

The Pagkakaisa ng Manggagawa sa Timog Katagalugan-Kilusang Mayor Uno or Pamantik-KMU (Union of Workers In Southern Tagalog-KMU), said those facing lay-off are mostly non-union members in electronics and car manufacturing sectors in the Cavite, Laguna, Batangas, Rizal and Quezon processing zones.

Romeo Legazpi, chairman of Pamantic said workers from Samsung, Yazaki, F-Tech, Fujitsu, NEC, TDK, and Matsushita are facing lay-offs in the first quarter of 2009. In September 2008, Amkor wiped out all its 3,000 contractual women workers.

Integrated Microelectronics Inc. (IMI), which used to employ 17,000 workers, 90 percent of which are women, terminated 3,000 contractual workers last December, in addition to the 1,000 regular workers in forced leaves also last month.

Last week, U.S. chipmaker Intel Corp., said it is closing down its assembly test facility in Cavite, that would affect 1,800 workers.

The group also assailed various schemes implemented by car manufacturing companies affected by the global financial crisis.

In the car industry sector, Toyota Motor Philippines implemented this month a Monday-no-production day and it announced to "temporarily" get rid of its 500 contractual workers and on-the-job trainees by March.

Nissan Motors laid-off 40 regular employees in December and plans to retrench an additional 70 more this February. Keihin Philippines plans to implement a four-day work month this February. Ford now maintains only 18 employees out of the previously 400 workforce. Isuzu Philippines will soon follow the steps of its mother company, which displaced 30,000 Japanese employees.

Copyright © 2003 - 2009 AHN - All rights reserved.

jbkayaker12

January 26th, 2009, 08:43 AM

SUBIC RECORDS 85% DROP IN INVESTMENTS

By Abigail L. Ho
Philippine Daily Inquirer

MANILA, Philippines--The Subic Bay Metropolitan Authority reported an 85-percent drop in committed investments in 2008 to $249 million from $1.7 billion in 2007.

Data from the SBMA Business Group showed the number of approved projects locating in Subic Freeport grew by 6 percent last year to 185 from 175 the year before, but the investments involved were significantly lower than year-ago levels.

Investments approved in Subic reached an all-time high of $1.71 billion in 2007. In 2006, SBMA-approved projects amounted to $1.44 billion.

SBMA administrator Armand Arreza said Subic was still in a good position as an investment destination despite the huge drop in the investment value in 2008.

“Subic continued to attract big-ticket projects, while remaining one of the biggest employers in Central Luzon,” Arreza said in a statement.

The projects approved in 2008 were mostly in the tourism, manufacturing and services sectors. The biggest is that of Korean-led consortium Subic Neocove Corp., worth $175 million, involving the construction of a high-end leisure facility in Subic’s Cawag area, near the Hanjin shipyard.

Hanil E&C Subic Inc. committed to invest $11 million to put up medium- and high-rise commercial residential buildings in the area. Another $6.72 million would be infused into the free port by Sultan Ahmed Lootah Enterprises Corp. to produce corrugated cartons, sheets, rolls, paper cores, corner pads, trays and duplex boards.

The SBMA also approved an investment of $6.58 million by George Dewey Medical and Wellness Center Inc., which planned to operate a hospital, medical and nursing school, wellness center, and research center in Subic.

The other major projects approved were Hanafil Golf and Tour’s $3-million golf and tour project; Australasia Marine Alliance Corp.’s $2.32-million boats and marine-related products manufacturing; Pacific Pearl Airways Aviation School’s $2.3-million aviation technical/vocational school project; Taiwan Cogeneration Corp.’s $2-million power plant and transmission facilities; Palmgold International Ltd.’s $1.94-million project involving importation of gaming equipment and operation of a slot machine arcade, and Grand Pillar International Development Inc.’s $1.9-million real estate venture.

Foreign investments account for 90.74 percent of the total, with the bulk committed by Korean firms—61 projects worth $201.8 million.

chris_nigel

January 26th, 2009, 02:43 PM

well well ang masasabi ko lang dyan noh eh ang saya saya nohhhh

kung hahaba pa si gma sa malacanang pabor naman ako basta gawin lang nia ang tama sa bansa

jpdm

January 26th, 2009, 04:40 PM

well well ang masasabi ko lang dyan noh eh ang saya saya nohhhh

kung hahaba pa si gma sa malacanang pabor naman ako basta gawin lang nia ang tama sa bansa

Hahaba pa si pgma sa malacanang?

No way.

Iba naman.

DoggMann

January 27th, 2009, 05:19 AM

We appreciate the senator's concern for his fellows. But should he really have influence on Microsoft's stand? For a well-established company like Microsoft, there should be a solid basis in retrenching an employee. Most of the times, the basis is performance NOT race. Being a regular staff sometimes does not guarantee you will be indispensable compared with the temporarily hired ones. And as far as jobs outside the US is concerned, Microsoft should empower its overseas operations to cut down costs instead of retaining its pricey operations in the US. There's be no point doing business without or with very small profit margin.

^^
... outsourcing pricey operations from the US... at what cost?
... this global financial meltdown is one of its end result...
... americans, canadians, europeans are loosing their jobs because of outsourcing ...
... and no profit margin is big enough for these CEOs... they all want to be billionaires overnight!...

... and these kids are some of their victims...
-ZpKd82h5GE

... once US and european economy collapse... outsourced manufacturing and services will eventually die...
... unless the Philippines and other asian countries like india(500 billion consumption) and china(1Trillion) can suddenly replace the 9Trillion dollar annual US consumption or at least afford pricey licensed(original) products and services... :)

... everybody loses in the end...
:)

RonnieR

January 27th, 2009, 05:36 AM

^^ until 2010 na lang....no to term extension!

espresso1018

January 27th, 2009, 05:41 AM

PGMA expressed no intentions of extending her term beyond 2010. Yang term extension na yan paranoia na lang yan ng mga kritiko. Nananaginip pa kasi ata ang mga yan, or the correct term would be binabangungot. Sila naman ang gumagawa ng sarili nilang katatakutan. Istratehiya na lang iyan ng mga nagbababalak kumandidato bilang pangulo para masiraan ang administrasyon at kung sino man ang kandidato ng administrasyon para sa pagkapangulo.

red_jasper

January 27th, 2009, 05:51 AM

well...
everything will be made clear come 2010 :D

beads_strawberries

January 27th, 2009, 07:23 AM

I'd like to think term extension is not even contemplated by the president. Besides, it is not allowed in the Constitution so we should really stop the issue on term extension because it will never be feasible under the present administration.

Maybe those who wanted to lure more supporters cling on such idea because they want others to be in bad light while they are too good in contrast, in disguise, of course. Just let the president finish her term. 2010 is just around the corner. We'll be voting for the next president by then.

jbkayaker12

January 27th, 2009, 08:01 AM

^^
... outsourcing pricey operations from the US... at what cost?
... this global financial meltdown is one of its end result...
... americans, canadians, europeans are loosing their jobs because of outsourcing ...
... and no profit margin is big enough for these CEOs... they all want to be billionaires overnight!...

... and these kids are some of their victims...
-ZpKd82h5GE

... once US and european economy collapse... outsourced manufacturing and services will eventually die...
... unless the Philippines and other asian countries like india(500 billion consumption) and china(1Trillion) can suddenly replace the 9Trillion dollar annual US consumption or at least afford pricey licensed(original) products and services... :)

... everybody loses in the end...
:)

In other words don't wish ill of a country contributing and keeping the world economy afloat.

DoggMann

January 27th, 2009, 09:12 AM

In other words don't wish ill of a country contributing and keeping the world economy afloat.

^^
... the world economic recession/collapse/correction has to happen...
... the US federal reserve cannot perpetually print money to pay off its debts...
... the US govt has to trim down to survive... dissolve its empire it cannot afford...
... and keeping these precious jobs for the population(manufacturing, R&D, services) is one of key to help pay off its debts... unless the US govt is willing to liquidate its technological assets or there would be WW3... :D

... and BTW it is not the US that contributes and keep the world economy afloat... it is actually China, Japan and other countries who loans the US by buying US treasury bills and bonds... these countries are the ones that keeps the US credit flowing and feed its consumption...

"America is out of control" ~ Jim Rogers
qtVX2Mfawxc

nostalgicbabe

January 27th, 2009, 11:30 AM

There was no statement that VAT was PRIMARILY responsible for the downfall. There were bitter pills and VAT perhaps was one of them. Garci was crucial but even before that the ratings were already negative prior to 2004. Twisting statements perhaps to avoid the main argument? As you said, funny guy you are. :banana:

I worked for the DTI at the time Roxas was DTI secretary before going to NEDA, and I assure you, BPO was not his idea but culled from the Long Term DTI (LTDTI) policy investment policies of then DTI head GMA after noticing the introduction of some call centers in the Philippines. :banana: :banana: The introduction was made as early as FVR's early years when Roxas was not yet in the limelight. Although SPI was already present as early as 1983, 1992 is widely marked as the start of the BPO business in the Philippines. SPI was merely limited to data entry at the time and was headed by Mr. Fraser, an Australian or New Zealender. But 1992 was the official start of the present sunshine industry. We were able to talk to a certain Mr. Frank Holz the one who introduced Accenture in 1992. Clearly, Mar Roxas was not the one who "introduced" BPO here. As you said, funny guy you are. :banana:

That's a telling tale!!
Thanks to the administration for the economic surge. :banana:

Hahaha! So Roxas is taking credit for something that was being pushed as early as during GMA's time at the DTI? Why am I not surprised.

Mar Roxas is quite vocal against the EVAT when this "bitter pill" helped to strengthen the government's fiscal position. There goes the supposed economist in him.

jbkayaker12

January 28th, 2009, 12:10 AM

^^^^^^^Hahahaha and Im glad I live in the United States while your country is one of the most corrupt in the world stuck in a rut.

DoggMann

January 28th, 2009, 01:19 AM

^^^^^^^Hahahaha and Im glad I live in the United States while your country is one of the most corrupt in the world stuck in a rut.

^^ don't speak too soon... your gladness might turn into grief when your dollar loses its value, your government can no longer afford to support your security and your american dream is slowly turning into a nightmare... you may end up going back to "stuck in a rut corrupt world" you once called HOME... :)

PEACE!

WFcFUPtix4Y

gen1

January 28th, 2009, 01:27 AM

^^hey you. don't be sending him back here.

:lol:

lightsaber46

January 28th, 2009, 03:30 AM

Philippine Q1 leading indicator at lowest in 7 quarters
Reuters - Wednesday, January 28
http://ph.news.yahoo.com/rtrs/20090127/tbs-philippines-economy-indicators-8bedc88.html

MANILA, Jan 27 - The Philippines' leading economic indicator index turned negative for the first time in seven quarters in the January-March period, pointing to tough times ahead for the Southeast Asian country, government data showed on Tuesday.
ADVERTISEMENT

The Philippines is among emerging economies in the region expected to record modest growth this year despite recession in its main trading partners United States, Japan, Singapore and Hong Kong.

The composite LEI slid to negative 0.075 in the first quarter from positive 0.210 in the previous quarter, the state-run National Statistical Coordination Board said. The last time the index was in negative territory was in the second quarter of 2007.

"While not necessarily indicating negative GDP growth rate for the quarter, the steepening slide of the LEI bodes ill of the start of the year of the Ox and poses a great challenge to the economic managers," the agency said.

The government expects economic growth this year at 3.7 to 4.7 percent from around 4.2 to 4.5 percent expansion in 2008. Official 2008 growth data is set for release on Thursday.

A Reuters poll of 11 economists on Monday showed a median forecast of just 3 percent growth this year from about 4.4 percent in 2008, a six-year low.

The leading index, on a consistent downtrend since the third quarter of 2008, is composed of 11 indicators such as money supply, Philippine share prices and exchange rate, consumer price index, and power consumption.

Only one indicator, money supply, had a positive contribution to the composite LEI in the first quarter of 2009 compared to two contributors in the fourth quarter and five in the third quarter of 2008.

Composite indices are aimed at capturing the momentum of the economy by aggregating the percentage change in a selected series of data.

[To view full data, click on the NSCB website http://www.nscb.gov.ph]

Maxxclip

January 28th, 2009, 05:57 AM

LA man upset over job kills wife, 5 kids, himself

At the bottom of the note, Lupoe wrote, "Oh lord, my God, is there no hope for a widow's son?" (http://news.yahoo.com/s/ap/20090127/ap_on_re_us/bodies_found)

RonnieR

January 28th, 2009, 09:17 AM

Panasonic to cut 560 jobs, close Asian plants
Updated January 28, 2009 01:00 PM

TOKYO (AP) -Panasonic Corp. said Wednesday it will cut 560 jobs in Asia due to the closure of two plants in the region, while declining to confirm a report saying the Japanese electronics giant will likely suffer its first net loss in six years.

The world's largest maker of plasma television will shut down a factory in Malaysia and another plant in the Philippines to "cope with a rapid change in the global electronics market," said spokesman Akira Kadota.

The closures come as Panasonic is in the middle of a $9 billion takeover of smaller Japanese rival Sanyo Electric Co. to become one of the world's biggest electronics companies.

Around 500 workers at the Malaysian electronics parts plant in Malacca will be out of work, while some 60 employees at the Philippines battery factory will also lose their jobs, Kadota said.Panasonic also runs two electronics parts plants in the central Malaysia state of Selangor. The spokesman said the company will merge them into one by September. He could not give the number of workers at the Selangor plants, but added the move will not result in job losses.

Kadota declined to confirm a report that Panasonic will likely suffer its first net loss in six years due to plummeting global demand for electronics goods and a strong yen.

Citing no sources, Japan's top business daily, the Nikkei, said Wednesday Panasonic may incur a net loss of about 100 billion yen ($1.1 billion) in the fiscal year ending March 2009. It would mark the first net loss in six years for Panasonic.

In November, Panasonic slashed its net profit forecast by 90 percent to just 30 billion yen. But the Nikkei said the company will likely plunge into the red as sales continued to deteriorate at home and abroad amid a deepening global downturn. Profits were also hit by a surging yen, which hurts Japanese exporters like Panasonic by eroding their overseas income.

The Nikkei said Panasonic's operating profit will be also worse than its forecast of 340 billion yen. The paper did not give any projection for the operating profit.

Panasonic last year changed its official name from Matsushita Electric Industrial Co., shedding the name of its charismatic founder in favor of its more internationally known brand.

red_jasper

January 28th, 2009, 10:47 AM

Group: EO making Arroyo environment czar 'silly'
01/24/2009 | 07:40 AM
Updated: 4:39 PM, January 28, 2009

MANILA, Philippines - Environmental group Greenpeace branded as "ridiculous and confused" the executive order making President Arroyo head of a presidential task force on climate change.

Greenpeace Southeast Asia Climate and Energy Campaigner Amalie Obusan said Arroyo could have implemented tangible climate-change solutions instead of having to create an entire task force.

"The President is already head of the government. To appoint herself as chair of a body which mandates government agencies to fulfill what are already their responsibilities - and to put aside budget for that purpose -is absurd. If, in mandating this reorganization, Gloria Macapagal-Arroyo wants to fashion herself as a 'climate change czar,' she could do a lot more by personally ensuring the effective implementation of the RE Law and guaranteeing that dirty coal and nuclear energy will not override the mainstreaming of clean, renewable energy sources in the country," Obusan said on Greenpeace's website.

"Although the intent of the Executive Order 774 to step up environmental protection may seem sincere and creditable, the Executive Order is itself ridiculous and confused. Greenpeace believes that this casts serious doubt on the effectiveness of such a body and calls on the President to instead implement real and tangible climate change solutions," she added.

She added the reorganized task force basically mandates all government agencies and local governments to comply with laws and responsibilities they should already be doing in the first place.

Obusan said the EO puts to task all government agencies to follow the Solid Waste Act, which by law should actually be already be implemented."

The EO orders the Department of Environment and Natural Resources to survey, map and protect watershed areas, but this is already a function of the DENR.

Obusan also noted the EO mandates that waterways and riverbanks should be cleared of obstructions, but this is already directed under the Clean Water Act.

"It (EO) orders a compliance audit of the Fisheries Code—a task that is already the responsibility of the Department of Agriculture," she added.

Also, she said the EO directs a Task Group on Renewable Energy for the Energy Department to lead the swift implementation the Renewable Energy Law – "precisely already the duty of the DOE."

Obusan also noted EO 774 attempts to make the PTFCC a body that comprehensively addresses as many climate mitigation and adaptation strategies as possible.

"While commendable on its own, clauses such as this and the above in the EO betray the government's lack of seriousness on getting down to business on the real causes of climate change," she said.

She said any climate change task force should focus on wide-reaching and lasting solutions, beginning with phasing out coal and nuclear plants, and initiating a massive shift to renewable energy and energy efficiency technologies. - GMANews.TV (http://www.gmanews.tv/story/145720/Group-EO-making-Arroyo-environment-czar-silly)

jpdm

January 28th, 2009, 12:49 PM

^^
oh, well...

gen1

January 28th, 2009, 01:02 PM

GMA is a noted micro-manager

bartstrife99

January 28th, 2009, 02:06 PM

Panasonic Electronics Corp's Philippines in Sta. Rosa Laguna is the Only Television Company that are still operating in the country and one of my company top customer in semi-conductor. let us pray they will not close its Factory aside from its Battery Plant somewhere in Rizal.the closure of Panasonic hopefully will not may cause a big damage to the Philippines industry and may lead to a massive closure of some industrial plant in the Philippines as well a massive Lay-Offs.

jpdm

January 28th, 2009, 02:31 PM

GMA is a noted micro-manager

Noted.

filcan

January 29th, 2009, 04:35 AM

^^higher than I expected...good job RP :applause:

gabskii

January 29th, 2009, 04:57 AM

Jan. 29 (Bloomberg) -- The Philippine central bank may cut interest rates a second time in six weeks to bolster an economy poised to expand this year at the slowest pace since 2001.

Bangko Sentral ng Pilipinas will today lower its benchmark interest rate by half a percentage point to 5 percent, according to seven of 10 economists surveyed by Bloomberg News. The rest expect a quarter-point reduction. Economic growth may have cooled in the fourth quarter to 3.5 percent from 4.6 percent in the previous three months, according to 12 economists.

New Zealand slashed borrowing costs to a record low today and the U.S. Federal Reserve yesterday left its benchmark rate as low as zero as policy makers around the world grapple with the global economy’s worst crisis since the Great Depression. Governor Amando Tetangco this month said Bangko Sentral is considering further rate cuts after inflation eased to a nine- month low in December.

“Bangko Sentral will keep its accommodative policy stance,” said Prakash Sakpal, an economist at ING Bank NV in Singapore. “Economies are heading for deflation this year. There is zero probability of them not easing.”

President Gloria Arroyo’s government in November forecast growth to cool to as little as 3.7 percent this year, the slowest pace in eight years. The economy expanded 7.2 percent in 2007. The central bank’s “easing stance remains appropriate” as the global slump may be deeper and longer that initially expected, Deputy Governor Diwa Guinigundo said last week.

‘Multiplier Effect’

Central banks in Thailand, Indonesia, and Malaysia this month cut interest rates more than economists expected as demand for the region’s exports falters.

“If you put low interest rates together with increased spending, it will hopefully create a multiplier effect in the second half of the year,” said Jonathan Ravelas, market strategist at Banco de Oro Unibank Inc. in Manila. “The government wants to continue the momentum especially with the low inflation outlook.”

Inflation in the Philippines eased to 8 percent in December after surging to a 16-year high of 12.5 percent in August after oil rose to a record $147.27 a barrel in July. Crude prices have fallen since then as the global recession damped demand, pushing prices down 54 percent last year, the first annual drop since 2001. The Philippines imports almost all its crude.

Computer Chips

Exports, which account for around 40 percent of the $144 billion Southeast Asian economy, declined in October and November as demand for Philippine-made Intel Corp. computer chips and The Gap Inc. clothing fell. Intel Corp., the world’s biggest chipmaker, last week said it will close five plants including an assembly and test facility in the Philippines.

Remittances from the more than 8 million Filipinos living overseas may fail to increase this year after expanding 15 percent in the first 11 months of 2008, Guinigundo said last week. Funds sent home from abroad account for a 10th of the economy and help fund purchases of mobile-phones, cars and homes.

Slowing global growth may limit overseas jobs as companies fire workers and freeze expansion. Half of the Philippines’ remittances come from the U.S., whose economy may have contracted the most since 1982 in the fourth quarter.

gabskii

January 29th, 2009, 04:59 AM

Jan. 29 (Bloomberg) -- Philippine economic growth beat expectations in the fourth quarter as higher remittances helped sustain consumer spending.

Gross domestic product increased 4.5 percent from a year earlier after a revised 5.0 percent gain in the third quarter, the National Statistical Coordination Board said in Manila today. Economists expected growth of 3.5 percent. The economy expanded 4.6 percent last year, slowing from 7.2 percent in 2007.

Growth may weaken as a world recession damps exports, forcing Intel Corp. to close a 34-year-old Philippine operation and Texas Instruments Inc. to fire workers. The worst global financial crisis since the Great Depression may also crimp the remittances from overseas workers that fuel spending in the $144 billion Southeast Asian economy.

The fourth-quarter numbers “show the resilience of the economy, but there will really be a slowdown,” said Jonathan Ravelas, a market strategist at Banco de Oro Unibank Inc. in Manila. “There will be hits” in exports and funds sent home from Filipinos aboard, he said.

Consumer spending, which account for around 70 percent of the economy, rose 4.5 percent, today’s report said.

In peso terms, Philippine sales abroad dropped 9.2 percent and remittances gained 14.1 in the fourth quarter, according to today’s report. Exports may fall 3 percent this year and electronics shipments 10 percent, BusinessWorld newspaper reported this month, citing the Export Development Council.

Job Losses

In U.S. dollar terms, remittance growth may slow to a range of between 6 percent and 9 percent this year as companies cut jobs and wages, according to the central bank. They rose 15 percent in the first 11 months of last year.

As many as 250,000 workers may lose their jobs in the next six months, Philippine Star said this week, citing a Department of Labor & Employment report. Holcim Ltd.’s local unit this month said it was cutting production 12 percent on weak demand.

Annual economic growth will slow to 3.7 percent to 4.7 percent in 2009, the government said in November. This month, Recto said President Gloria Arroyo’s economic stimulus plan aims to spend 60 percent to 80 percent of this year’s infrastructure budget in the first half.

The central bank last month cut its key interest rate for the first time in 11 months, lowering the benchmark to 5.5 percent from 6 percent.

‘Longer and Deeper’

Sentral ng Pilipinas Deputy Governor Diwa Guinigundo on Jan. 22 said there was room for further rate reductions as the global recession may be “longer and deeper” than initially expected. Nine of 13 economists surveyed by Bloomberg expect the central bank to lower borrowing costs again today by half a percentage point to 5 percent, with the rest predicting a quarter-point cut.

Services increased 4.9 percent, industrial production gained 5 percent and agriculture climbed 2.8 percent, according to today’s report. Government spending rose 4.7 percent.

“Hopefully the government will deliver much-needed pump- priming to reverse the effects” of the global economic downturn, Ravelas said.

dessertfox

January 29th, 2009, 05:52 AM

See the ranking below nasa kulelat na naman ang Pinas nasa #34 out of 38 surveyed, at least sa aspeto nang Asar Talo:lol:

http://images.businessweek.com/ss/09/01/0126_business_expectations/1.htm

racquetblade

January 29th, 2009, 06:20 AM

Askal82

January 29th, 2009, 06:41 AM

I checked the article and hindi kulelat ang Philippines. Actually, ang title nga ay world's gloomiest countries...kaya kung number 1 ka, mapangit ang connotation nun...We are just 1 notch below India and as you can see, positive lahat ang prospects sa economy natin...

Kulelat sa gloomiest economic forecast ranking. Nice guys finish last. :lol:

:banana::banana:

gabskii

January 29th, 2009, 06:53 AM

atleast philippines made it to the 34th...

why is it that it had a picture of that traffic stingy street in manila? they always make our country look terrible... why not put a pic of ayala ave. or makati ave or one of the streets at fort... i wonder why descrimination always occur... others had beautiful pics while on us very stingy...

dessertfox

January 29th, 2009, 07:55 AM

That's not bad anyway, it is showing development progress and elevated transit in fact. I have seen that picture in SSC Infra thread so they may just pick-it up here.:ohno: Copyright infringement whoever.

atleast philippines made it to the 34th...

why is it that it had a picture of that traffic stingy street in manila? they always make our country look terrible... why not put a pic of ayala ave. or makati ave or one of the streets at fort... i wonder why descrimination always occur... others had beautiful pics while on us very stingy...

dessertfox

January 29th, 2009, 08:02 AM

I checked the article and hindi kulelat ang Philippines. Actually, ang title nga ay world's gloomiest countries...kaya kung number 1 ka, mapangit ang connotation nun...We are just 1 notch below India and as you can see, positive lahat ang prospects sa economy natin...

Kaya nga Asar Talo sila sa status nang ekonomiya nila lalo na ang Japan #1 at Hongkong, of course it is not good also for this counttries to feel that bad since we also rely on them in many aspect like OFW and export.

venntro

January 29th, 2009, 08:09 AM

See the ranking below nasa kulelat na naman ang Pinas nasa #34 out of 38 surveyed, at least sa aspeto nang Asar Talo:lol:

http://images.businessweek.com/ss/09/01/0126_business_expectations/1.htm

^^Actually, 34th out of 36 countries. Parang perdigana yan. The lower you are in the ranking, the better.

c0kelitr0

January 29th, 2009, 10:46 AM

^^ great! that means, the Philippines is the 3rd least gloomy among the 36 countries! :banana:

RonnieR

January 29th, 2009, 11:54 AM

Philippine 4Q GDP +4.5% YoY

Philippine 2008 GDP +4.6% YoY

Any data for GNP? I can't find any news about GNP growth. 4.6% is respectable enough....

RonnieR

January 29th, 2009, 03:35 PM

^^ Thanks! Happy to hear, GNP growth of 6.4%...

bartstrife99

January 29th, 2009, 03:46 PM

It is true highest the number in ranking mean the better, look at the data:

No. 34 PHILIPPINES

Optimism/Pessimism Grade: plus-65
Business expectations, next 12 months, for:

Exports +31%
Profitability +33%
Investment in new buildings +30%
Investment in plant & machinery +36%
Turnover +37%
Selling prices +39%

No. 1 JAPAN

Optimism/Pessimism Grade: minus-85
Business expectations, next 12 months, for:

Exports -6%
Profitability -45%
Investment in new buildings +1%
Investment in plant & machinery +6%
Turnover -23%
Selling prices -26%

as you notice japan almost negative in the forecast.i am really sad about the image of the Philippines in the Forum.

Juan Pilgrim

January 29th, 2009, 04:21 PM

^^
Philippine 4Q GDP +4.5% YoY

Philippine 2008 GDP +4.6% YoY

Philippine 4Q GNP +6.4% YoY

good job! :applause:

bartstrife99@
as you notice japan almost negative in the forecast.
i am really sad about the image of the Philippines in the Forum.WHY?

this is suppose to be a good news for the PHILIPPINES!
It is a very SUNNY/ OPTIMISTIC FORECAST!

:horse:

NOVO ECIJANO

January 29th, 2009, 06:02 PM

Animo

January 29th, 2009, 07:48 PM

Catherine Philp, Davos
(http://business.timesonline.co.uk/tol/business/economics/wef/article5604575.ece?token=null&offset=0&page=1)
More than 50 million jobs could be lost worldwide by the end of this year as a result of the global economic meltdown, the United Nations warned as world leaders gathered at Davos today.

The stunning estimate by the International Labour Organisation (ILO) came only hours after the opening of the World Economic Forum amid a deepening sense of gloom and helplessness among the global business elite.

The UN agency said that its worst-case scenario would see global employment soar from 6 per cent to 7.1 per cent, resulting in a loss of 51 million jobs across the globe since the crisis began in 2007.

The most optimistic forecast is for 18 million jobs to be lost, with the most realistic prediction somewhere in between at about 30 million.

Wherever the axe falls, however, the figures represented no less than a “global jobs crisis,” according to Juan Somavía, the director-general of the ILO.

"If the recession deepens in 2009, as many forecasters expect, the global jobs crisis will worsen sharply," Mr Somavía warned as he presented the agency’s annual report.

Even those who remain employed will not necessarily escape the effects of the recession, he said.

“We can expect that for many of those who manage to keep a job, earnings and other conditions of employment will deteriorate,” he said.

The crisis could also push another 200 million workers into extreme poverty as they eke out a living in informal, underpaid and unstable work, especially in Africa and South Asia, the ILO predicted.

That would swell the ranks of the “working poor” to 1.4 billion, just under half of the entire working population of the world.

News of a global jobs crisis will come as little surprise to the thousands who have lost their jobs in the days of economic carnage leading up to the conference.

On Friday, 30,000 Americans lost their jobs in big staff cuts by Caterpillar and Sprint Nextel, and ING, the Dutch bank, and Philips, the big electronics company, eliminated a total of 13,000 from their workforces.

A further 13,000 jobs were cut worldwide today.

Today the International Monetary Fund cut its forecast for world economic growth and predicted a deeper than expected recession in the developed nations.

In Davos, the well-heeled Swiss ski resort where business and world leaders gather annually for the World Economic Forum, the mood was decidedly subdued.

Pre-conference receptions were dominated by chatter about who would not be attending, rather than who would.

Several high-profile bankers, including Bob Diamond, the president of Barclays, have pulled out of the meeting.

The annual lecture by Richard Fuld, the former chief executive of the collapsed Lehman Brothers Holdings, has been cancelled.

Instead, the gathering this year will boast a higher number of heads of state and political leaders, a reflection of the sudden centre-stage that governments find themselves in as they intervene to prop up ailing private institutions.

Wen Jiabao and Vladimir Putin, the Chinese and Russia prime ministers, will address the conference today on their first visit to Davos.

At the time of their invitations, both leaders were riding high as the saviours of economies not yet buffeted by the turmoil that began in the US.

However, plummeting reserves and investment in Russia and slowing growth and soaring unemployment in China mean that neither power has as much to boast about.

The US, meanwhile, is at its most historically underrepresented as policymakers stay home in Washington, poring over the details of President Obama’s fiscal stimulus package.

The theme for the four-day forum is "Shaping the Post-Crisis World", but most senior delegates made it clear that they believe the crisis is far from over.

A survey presented on the eve of the conference highlighted a global crisis of confidence among chief executives at the world’s leading companies at the prospect for recovery.

An opening press conference by the meeting’s strategic partners underlined the sense of gloom.

Rupert Murdoch, the chief executive of News Corporation, the parent company of The Times and Times Online, said that the crisis was deepening and could take five years to turn around.

"It's going to take drastic action to turn it around, if it can be turned around quickly," he said. "Personally, I believe it will take some time.

"The great majority of the people in the world are depressed and traumatised by the fact that their savings, the wealth in their homes or pension funds ... a big percentage of it has disappeared."

Kofi Annan, the former UN Secretary-General, identified “three interrelated crises: a global recession, energy insecurity and climate change”.

Stephen Green, the chairman of HSBC, one of few high-profile financiers to attend, said: "There are no magic wands and even crystal balls are in short supply."

hakhaimo

January 29th, 2009, 10:05 PM

Noted.

http://cache.daylife.com/imageserve/08Dl2Bv6igfFJ/610x.jpg

^^ :lol:

TambayBlues

January 29th, 2009, 10:07 PM

JbKayaker, this should be in the Guinness Book of World Records and this was way back in 2001 so you have to adjust for inflation and multiply the amount at the current exchange rate of 46 Pesos to 1 Dollar. Total corruption in the entire history of the Philippines doesn't even amount to a speck of dust compared to this. And this is just one US government agency were talking about. I wonder how many foreclosed homes you could buy with the money these guys squandered. Straight from the horse's mouth,

Donald Rumsfeld Admits $2.3 Trillion Missing from Pentagon

xU4GdHLUHwU

bitoy

January 30th, 2009, 01:19 AM

As long as no one posts the inflation rate, all of those forecasts look good.

nayki

January 30th, 2009, 04:23 AM

I want to know how Philippines GDP fared compared wth its ASEAN neighbors. That would be interesting.

The Cebuano Exultor

January 30th, 2009, 04:24 AM

As long as no one posts the inflation rate, all of those forecasts look good.

^^ Well, it was hovering at about 8.0% last December.

And, it expected to ease further over the coming months.

That's not bad. Heck, Zimbabwe was suffering from 18.6 quintillion percent inflation rate last November. Even Vietnam, South-east Asia's fastest growing economy experienced an average annual inflation rate of 22.97% last year.

bledzoe

January 30th, 2009, 04:34 AM

good to know that the Philippines fared well despite the financial crisis. guess we all just have to work hard <to add more value >. after all, 2009 is the year of the <hardworking> Ox.

gabskii

January 30th, 2009, 05:12 AM

Jan. 29 (Bloomberg) -- Asian stocks rallied for a third day, led by banks and commodity producers, on optimism lower interest rates and U.S. stimulus measures will revive the global economy.

HSBC Holdings Plc, which gets a quarter of its sales in the U.S., surged 8.4 percent in Hong Kong as bond risk fell and President Barack Obama moved closer to winning passage for an $819 billion stimulus package. Westpac Banking Corp., New Zealand’s No. 2 lender, jumped 6.3 percent in Wellington as the nation’s central bank cut its benchmark rate. BHP Billiton Ltd., gained 2.7 percent as oil and metal prices rose.

“There’s more confidence that the world hasn’t ended, and that under the new U.S. government the mess may get sorted out,” said Hugh Dive, who helps manage about $3 billion at Sydney-based Investors Mutual Ltd. “It will still take a while for it all to flow through.”

The MSCI Asia Pacific Index added 1.2 percent to 84.58 as of 7:17 p.m. in Tokyo. Two stocks advanced for each that fell on the gauge, which has fallen 5.6 percent this year on mounting signs the global recession is hurting company profits.

The Nikkei 225 Stock Average gained 1.8 percent. Hong Kong’s Hang Seng Index climbed 5 percent following a three-day holiday for the Lunar New Year. China and Taiwan are shut this week. All markets in the region rose except Thailand and the Philippines.

Sony Corp., the world’s second-largest consumer-electronics maker, rose in Tokyo on speculation the latest stimulus plans will help boost consumer demand in the U.S. Ayala Land Inc., the Philippines’ biggest property company, was the MSCI Asia index’s second-worst performer on concern housing demand will decline.

The Standard & Poor’s 500 Index climbed 3.4 percent yesterday after a White House official said President Barack Obama may announce a plan next week to set up an institution to buy toxic financial assets. S&P 500 futures slipped 0.5 percent.

Global Recession

After the market closed in New York, the U.S. House passed Obama’s $819 billion stimulus plan, aimed at lifting the economy out of recession through tax cuts and new spending. The plan will be put to a vote by the Senate.

The MSCI Asia Pacific Index tumbled by a record 43 percent last year as the worsening financial crisis dragged the world’s biggest economies into recession. The average valuation of companies on the MSCI gauge has fallen by 38 percent in the past year to 10 times reported profit.

Global growth will almost grind to a halt this year as more than $2 trillion of bad assets from the U.S. weigh on economies worldwide, an International Monetary Fund report said. Federal Reserve officials yesterday warned of a prolonged slowdown that may push the U.S. to the brink of deflation.

Policy Action

“The IMF’s global growth forecasts have highlighted how severe the global economic slump is,” said Shane Oliver, head of investment strategy at AMP Capital Investors, which holds $61 billion in Sydney. “The difference from previous global downturns is that all major countries and regions are sliding together.”

The Fed, which left its benchmark interest rate at close to zero yesterday, said it’s ready to buy Treasury securities if it’s effective in improving credit markets.

The bond plan and New Zealand’s interest-rate cut mark the latest step in a series of measures introduced by governments around the world to unlock frozen credit markets and revive economic growth.

HSBC surged 8.4 percent to HK$62.25. Mizuho Financial Group jumped 5.2 percent to 245 yen. Sumitomo Mitsui Financial Group Inc. soared 13 percent to 3,810 yen, even after third-quarter profit almost evaporated on bad-loan costs.

Lower Borrowing Costs

Westpac jumped 6.3 percent to NZ$20.30. Commonwealth Bank of Australia, which gets 14 percent of its sales from New Zealand, gained 2.2 percent to A$26.90 in Sydney.

The Markit iTraxx Asia credit-default swap index and the Markit iTraxx Japan index, which measure the cost of protecting Asia-Pacific bonds from default, fell today, according to prices from ICAP Plc and Barclays Plc.

The Reserve Bank of New Zealand today lowered the benchmark interest rate by 1.5 percentage points to 3.5 percent and said there’s room for further reductions.

Asian exporters gained on optimism the U.S. government measures will shore up consumer demand. Yue Yuen Industrial (Holdings) Ltd., which supplies athletic shoes to Nike Inc. and Adidas AG, climbed 3.1 percent to HK$13.50.

Sony gained 4 percent to 1,909 yen. Canon, the world’s largest camera maker, rose 1.9 percent to 2,640 yen. Canon yesterday forecast lower profit as product prices fall.

BHP, Cnooc

BHP, Australia’s largest oil company, gained 2.7 percent to A$30.65. Cnooc Ltd., China’s biggest offshore oil company, added 5.5 percent to HK$6.86. PetroChina Co., China’s largest producer, jumped 5.6 percent to HK$5.89.

Crude oil for March delivery rose 1.4 percent in New York yesterday, the first advance in three days, while a gauge of six metals traded in London gained 1.1 percent.

Hyundai Steel Co., South Korea’s second-largest steelmaker, advanced 6.3 percent to 37,400 won. Korea Zinc Co., the world’s second-biggest zinc refiner, gained 3.4 percent to 90,900 won after Daewoo Securities Co. raised its recommendation on the stock to “buy” from “trading buy,” citing signs non-ferrous metals prices are bottoming out.

Ayala slumped 7.1 percent to 6.50 pesos. The Philippine central bank will probably cut its benchmark interest rate by half a percentage point today, according to economists in a Bloomberg News survey, to bolster growth.

“Very few people can afford to buy homes at this time,” said Jonathan Ravelas, a market strategist at Banco de Oro Unibank Inc. in Manila. “Jobs are getting threatened.”

RonnieR

January 30th, 2009, 06:30 AM

By Amy R. Remo
Philippine Daily Inquirer
First Posted 03:01:00 01/30/2009

MANILA, Philippines — Continued growth of the business process outsourcing (BPO) sector and the increased demand for tourism infrastructure are expected to do the Philippine property market a lot of good this year despite the global economic slowdown, property advisor CB Richard Ellis said.

“As the rest of the world continues to have a contraction in real estate markets, the Philippines will be a maverick market in Southeast Asia,” CB Richard Ellis chairman Rick Santos said at a news briefing.

Santos noted that the local property market would be different in 2009 in that it could “weather the challenges” posed by the global recession because the Philippines and the property sector are in a “much more stable” position.

Philippine banks were “much more stable” and better capitalized, construction remains active with buyers’ cash flow ensuring completion, market demand caters not only to foreign investors but also to local end-users, and market supply is now spread across Metro Manila and the provinces, he said.

Last year, CB Richard Ellis recorded an oversupply of office space.

Tourists are expected to reach four million in 2010, from 3.2 million last year, Santos also said.

That will mean further investment in accommodations for both foreign and domestic tourists, he said.

There is pent-up demand for top-class resorts in major tourist destinations, such as Cebu province, which currently requires about 400,000 to 500,000 new hotel rooms, he said. Edited by INQUIRER.net

Askal82

January 30th, 2009, 06:45 AM

^^ Makes Transparency International very inaccurate with regards to perceived corruption in America.

mygz14

January 30th, 2009, 06:57 AM

^^They were smiling. :D Even their eyes expresses it. :) And the height difference. :D

gen1

January 30th, 2009, 07:46 AM

Is that joma with GMA ?

:lol:

gabskii

January 30th, 2009, 09:16 AM

Jan. 30 (Bloomberg) -- South Korea’s won led a decline in Asian currencies this month as a deepening global recession hurt regional exports and sapped demand for emerging-market assets.

The Korean currency dropped 8.9 percent versus the dollar, its worst start to a year since at least 1991, as the government announced the steepest drop in gross domestic product in a decade. Regional shares tumbled today after reports showed U.S. orders for durable goods and new home sales slumped in December, while Japanese manufacturers cut production at a record pace.

“The data suggests recession in Asia intensified in December and probably got significantly uglier this quarter,” said Kit Wei Zheng, an economist in Singapore at Citigroup Inc. “There’s room for downside surprises for Asian currencies. Risk appetite is still going to be quite poor.”

The won slid 0.3 percent to 1,382.30 per dollar as of 12:29 p.m. in Seoul. Malaysia’s ringgit dropped 0.3 percent to 3.6065, extending this month’s loss to 4.3 percent, its worst January performance in a decade.

The MSCI Asia Pacific Index of regional equities declined 2.1 percent, extending its January slide to 7.4 percent.

U.S. durable goods orders fell for a fifth month in December while new home sales reached a record low, according to government data released yesterday. Japan said today industrial production fell by a record 9.6 percent last month from November. The two nations are the world’s biggest economies.

Dollar Shortage

The yen strengthened for a second day against both the dollar and the euro, extending this month’s advance as the deteriorating economic outlook prompted investors to repatriate funds from higher-yielding overseas assets.

The yen climbed to 89.55 per dollar in Tokyo from 90.03 late yesterday in New York and 90.64 at the end of last year. It rose to 115.60 versus the euro from 116.60 yesterday, having started the month at 126.70.

South Korea’s won fell for a second day today on concern tighter global credit markets and sliding exports will curb the supply of dollars the nation needs to meet payments on imports and foreign debt.

The central bank today reported a current-account deficit of $6.41 billion for 2008, the first shortfall in 11 years, as higher oil prices and the weaker won drove up the cost of imported goods. Bank of Korea Governor Lee Seong Tae said today “more active measures” may be used to improve the flow of funds and ease the credit crunch.

Demand for Dollars

“There’s a general feeling that demand for dollars is outweighing supplies given concern that January may see a trade deficit,” said Jeff Kim, a currency dealer with Korea Exchange Bank in Seoul. “The decline in stocks is also unnerving currency players.”

The Philippine peso declined for a second day, paring this month’s gain, after the central bank yesterday slashed interest rates and signaled more cuts.

The peso traded near the lowest this week after Bangko Sentral ng Pilipinas lowered its benchmark overnight borrowing rate by half a percentage point to 5 percent, the second reduction in six weeks. Governor Amando Tetangco told reporters yesterday that cooling inflation provides the central bank “room for further easing.”

Sliding Support

“The more you cut rates, the more you take the fundamental support for the currency,” said Dwyfor Evans, a strategist with State Street Global Markets in Hong Kong. “Even if inflation is falling, you need some premium for holding the peso. If they overdo the cutting, the peso could get hurt.”

The currency weakened 0.3 percent to 47.34 against the dollar in Manila. It has climbed 0.4 percent this month, making it the sole gainer among the 10 most-active currencies in Asia outside Japan.

Elsewhere, Indonesia’s rupiah slid 0.4 percent to 11,368 and the Singapore dollar fell 0.1 percent to S$1.5076. The Thai baht was little changed at 34.92. Financial markets in China, Taiwan and Vietnam are closed all of this week for the Lunar New Year holiday.

DoggMann

January 30th, 2009, 04:13 PM

The Inconvenient Debt...
mZ8q8YBJZ2A

anakngpasig

January 30th, 2009, 06:38 PM

Interesting read

and I totally agree!

How the Philippine economy really works
Opinion
Written by Outside the Box / John Mangun
THURSDAY, 29 JANUARY 2009 02:14

http://businessmirror.com.ph/index.php?option=com_content&view=article&id=5302:how-the-philippine-economy-really-works&catid=28:opinion&Itemid=64

The Philippine economy in 2009 will grow at no less than 0.5 percent below 2008 growth. Take the final gross domestic product number for 2008 that will be released in a month or so, subtract that 0.5 percent, and that is the absolute worst-case scenario for 2009. My best-case scenario is that the economy will grow at a rate of 0.7 percent higher than for 2008. The only exception would be in the event of a major natural disaster.

How can I be so sure? I am not an economist. I do not have a research “think tank” at my disposal. I do not use any sort of economic models.

As I mentioned weeks ago, major financial institutions have Philippine grow estimates ranging from 1.8 per cent to over 5 percent. How could there be such a wide disparity among these experts? They supposedly use the same data to make their predictions. They speak to the same business and political leaders. They have the same training and experience. Yet, they cannot agree and, in my opinion, most are going to be completely wrong. And I am going to be right.

Economic forecasting is based on economic models. In other words, if this happens, then that will happen, because all parts of an economy interconnect and interact. Seems simple. Every business owner understands the principle. Extending your retail-store business hours may increase the number of customers you serve, but also increases operating expenses. Then you calculate to see if that move would be profitable. That is a business model.

An economic model works the same way, but you must know and understand all the factors. I believe that most of the economic models do not have a clue about how the Philippine economy really works.

Note that about 70 percent of the beer that San Miguel sells is through sari-sari store-type operations. In order for the traditional economic models to work properly and the forecasting that comes from them, you must know what happens. You must be able to calculate the economic impact of a bottle of beer from before it is manufactured, all the way to the last drop finished on a Friday-night drinking spree. But after the San Miguel truck drops off a few cases at your local sari-sari store, the economic models are dumb and blind. And that is why the economists can rarely get a handle on this economy, particularly in these times of many uncertain variables.

The cap on the bottle of Red Horse I drink every night says the price is P26. Except the nearest store charges P28, and the one a little farther away prices at P27. No one at Deutsch Bank,

JPMorgan, UP, the National Economic and Development Authority or any another expert knows that my neighbors and I pay 5 percent to 8 percent more than the “official” price. Their forecasts are based, incorrectly, on P26.

Every month the owner, Lola Beng, pays P350 on her memorial plan. None of the experts have any idea where that money comes from. They can count the payment but cannot count her income contribution to the economy. There aren’t any ORs and she does not file any tax return. Lola pays a teenager to deliver me a half-case once a week. She pays him and I tip him, again, off the books. He buys 2T oil and tires for his motorbike without any records. When he eats at the local karinderya, the value-added portion of the price of his meal does not show accurately. And this scenario is repeated a hundred different ways, a million times a day in the Philippines. It all adds up.

If a public official can testify before a congressional hearing that he did not report nearly a million pesos in bank transactions for his business “that’s part of the informal economy,” and any profits on which taxes were probably not paid, how can the “informal” economy and its impact on the total economy ever be measured?

There is no way economic forecasts can be made accurately when the forecasters have very little idea about the way the money flows and how the economy functions.

Furthermore, negative perceptions are created based on totally incomplete information and analysis. Read this: “The value of imported mineral fuels, lubricants and related materials plunged 44 percent to $539 million” in November 2008 from November 2007. Well, obviously, oil imports “plunging” means the economy is in very bad shape because people do not have money for gas and business is not using fuel to deliver products. Wrong, wrong, wrong.

In November 2007, crude oil averaged nearly $90 per barrel; in 2008, the price was below $50. Of course, our import bill for oil went down. Nearly 30 percent of the drop in Philippine imports for November was because of cheaper oil prices. And that is good for the economy.

Electronic imports fell like a rock. But electronic exports contribute slightly more to the economy as the outsourcing business, both in foreign revenue and employment. And because demand is down, computer prices are also dropping like a rock. A brand-new HP computer selling in the United States two months ago for $900 is now priced at $300. A year from now, the headlines will read, “Electronic imports up 50 percent.” That is the way the markets work. And that headline will not give an accurate picture, either.

Askal82

January 31st, 2009, 05:13 AM

Kaya nga Asar Talo sila sa status nang ekonomiya nila lalo na ang Japan #1 at Hongkong, of course it is not good also for this counttries to feel that bad since we also rely on them in many aspect like OFW and export.

That is why diversification is the key especially in agriculture and energy production.

dessertfox

January 31st, 2009, 08:45 AM

That is why diversification is the key especially in agriculture and energy production.

That's why we are now in Goat Raising and Meat shop venture to diversify from our traditional crop. Farming is not a lucrative job, but there is our strenght being an agricultural country.

Hope others to value the hardship of our farmers, one way to help them is to patronize local produce like vegetables, fruits, processed agricultural products, local meats and other local products in general and the most is the support for our Rice Farmers " mag-tanim ay talagang hindi biro "

" BUY PINOY " sabi nga sa isang SSC thread.

leechtat

January 31st, 2009, 09:50 AM

found this interesting..

C_6FKE6_Ysw

leechtat

January 31st, 2009, 12:24 PM

oheM9H5RYWA

Animo

January 31st, 2009, 09:36 PM

By Liu Hua (http://news.xinhuanet.com/english/2009-01/30/content_10737371.htm)

MANILA, Jan. 30 (Xinhua) -- "Good morning, Manila!"

That was the first sentence from Wang Juhui, a representative from China-based Lifan Motors, at the launch of the auto brand's first showroom in the Philippines' capital of Metro Manila.

With the young and energetic assistant general manager, there came the LF520 mid-size sedan, a car model exported to more than 50 other countries, including Australia, Germany, Spain, Russia, Vietnam, Iran, Chile and Venezuela.

Dubbing LF520 as a "World Car," Wang said that the engine was designed by the renowned automobile design firm Ricardo Plc. Based in the United Kingdom. And Italian designers were employed by the manufacturer so that the model became top of the line in the looks department.

"We want to keep the design of the car sleek and stylish to appeal to the young at heart. It is loaded with features that will definitely appeal to the adventurous spirit," said William Agcaoili, general manager of Lifan Cars Philippines, the manufacturer's partner in the Philippines.

Lifan Motors, a motorcycle manufacturer-turned car company like Honda, entered the global passenger car industry in March 2007 with the release of the LF520 in Vietnam. In 2008, the company sold over 20,000 units in markets outside China.

Today, it "sailed" to the Philippine archipelago to seek new opportunities. As explained, the Lifan logo means "powerful sailing boat."

Last year, the Philippines posted a 5.6-percent growth of auto sales despite the global financial crisis. The sales reached 124,449 units in 2008, compared to the previous year's 117,903.

"We are bringing the LF520 in the Philippines so that Filipinos can also enjoy our world-class vehicle which is priced more affordably," said Nelson Ong, president of Lifan Cars Philippines.

The price is expected to be set around 500,000 pesos (10,600 U.S. dollars) for the 1.3-litre model.

"We sell the cars at very, very affordable prices," said Agcaoili, when talking about what is the Chinese brand's competitive edge to grab a share in the market dominated by Japanese cars.

Meanwhile, the quality, safety and comfort of the vehicles will not compromised, he added.

Ong believes that his company will enjoy commercial success in the Philippine market.

"We are confident that the entry of Lifan Motors will help revitalize the local domestic industry as it gives car buyers more choices," he said.

Besides the LF520, Lifan plans to introduce three more models to the local market this year, namely, LF320, LF620 and a sports utility vehicle.

"We believe that it will appeal to the young urban professionals and younger car enthusiasts, which comprises a large chunk of buyers in the local market," Agcaoili said.

However, Lifan sets a sales goal of no more than 1,000 units for this year.

"To buy a car is quite a big deal, so many customers will take a wait-and-see attitude, especially when it comes to a new brand," said Wang.

"But the sales volume will go up as Filipino buyers find confidence in our products," said the smiling Chinese businessman.

Porknight

February 1st, 2009, 04:58 AM

^^
... outsourcing pricey operations from the US... at what cost?
... this global financial meltdown is one of its end result...
... americans, canadians, europeans are loosing their jobs because of outsourcing ...
... and no profit margin is big enough for these CEOs... they all want to be billionaires overnight!...

... and these kids are some of their victims...
-ZpKd82h5GE

... once US and european economy collapse... outsourced manufacturing and services will eventually die...
... unless the Philippines and other asian countries like india(500 billion consumption) and china(1Trillion) can suddenly replace the 9Trillion dollar annual US consumption or at least afford pricey licensed(original) products and services... :)

... everybody loses in the end...
:)

Totally agree with you .

Btw the crisis will end I hope so no need cry guys cheer up a little bit !

gabskii

February 1st, 2009, 12:11 PM

Jan. 31 (Bloomberg) -- Nobel laureate Joseph Stiglitz said any decision by President Barack Obama to establish a so-called bad bank to rid financial companies of toxic assets risks swelling the national debt.

Obama’s administration is moving closer to buying the illiquid assets currently clogging bank’s balance sheets and preventing them from boosting lending, people familiar with the matter said this week.

That amounts to swapping taxpayers’ “cash for trash,” Stiglitz said in a panel discussion at the World Economic Forum in Davos, Switzerland today. “You shouldn’t chase good money after bad. We’re talking about a national debt that’s very hard to manage.”

Stiglitz, a professor at Columbia University in New York and a former adviser to President Bill Clinton, says the plan would leave taxpayers picking up the bill for years of excess lending by banks. It would also deprive the government of money that would have been better spent shoring up Social Security, he said.

Obama said today he’s readying a plan to unlock credit markets and lower mortgage rates without giving details. The initiative would have the government buy some tainted securities and insure the banks against losses on the rest.

“Soon my Treasury secretary, Timothy Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families,” Obama said in his weekly radio address.

Criticism

Stiglitz drew criticism from panel participant Angel Gurria, head of the Organization for Economic Cooperation and Development, who says a bad bank is necessary for lending to resume.

“I agree about the moral, ethical fallout, but you’ve got to face the music and someone has to take the loss,” said Gurria, a former Mexican finance minister. “It’s the only way to jumpstart the economy.”

Bank losses worldwide from toxic U.S.-originated assets may double to $2.2 trillion, the International Monetary Fund said in a report released Jan. 28.

John Monks, general secretary of the European Trade Union Confederation, told the same audience that governments were getting “close to straining the patience of the public and voters” by repeatedly extending lifelines to banks.

Philippines' President, Gloria Arroyo urged Obama to make a quick decision on his plan.

“We want Americans to do something,” she said at the session, which was called “Rebooting the Global Economy.” “We can discuss what to do but the worst thing is to do nothing.”

(Umepal pa ang Pinas...

ni pansariling solusyon sa problema ng Pinas d maayos-ayos...

our president should do something on the rising poverty of the Filipinos especially the homeless and those suffering from hunger at rural areas as well as urban...

/// which I cannot also deny that the american economy and other big economies also helps on our economical progressiveness///)

jpdm

February 1st, 2009, 06:11 PM

That's why we are now in Goat Raising and Meat shop venture to diversify from our traditional crop. Farming is not a lucrative job, but there is our strenght being an agricultural country.

Hope others to value the hardship of our farmers, one way to help them is to patronize local produce like vegetables, fruits, processed agricultural products, local meats and other local products in general and the most is the support for our Rice Farmers " mag-tanim ay talagang hindi biro "

" BUY PINOY " sabi nga sa isang SSC thread.

For me this an Unbeatable Economic Model for the Philippines at all time-- crisis or no crisis!:cheers:

jpdm

February 1st, 2009, 06:18 PM

Its time for the country to re-assess its economic model.

Focus again should be on a balanced agro-industrial development.

A vibrant self-sufficient agricultural sector with high capacity for export.

A vibrant industrial sector with focus on basic but crucial industries such as integrated iron and steel industry, integrated petrochemical industry, highly capable tool and die, machinery and electronics sector, auto manufacturing (not assembly only) and other basic industries.

Shipbuilding, textile and garments, construction and pharmaceuticals should be included.

To create a very strong, high developed economy.

The Taiwanese or Japanese model should be emulated.

Askal82

February 1st, 2009, 10:35 PM

DoggMann

February 2nd, 2009, 05:38 AM

Dubai Property Market Collapse
67dYh4UQmUE

sk9Sbpnkd-4

higen

February 2nd, 2009, 07:30 AM

EXACTAMENTO! Being 3rd from the last in a list of the gloomiest economy is good news and NOT Bad news.

^^ great! that means, the Philippines is the 3rd least gloomy among the 36 countries! :banana:

Potchot69

February 2nd, 2009, 07:53 AM

... Hong Kong in Subic
... Singapore in Clark
... Dubai in Cebu
... Macau in Ilo-ilo
etc. etc. etc.

Here's a better idea:
... Singapore in Metro Manila
... Dubai in Metro Manila
... Macau in Metro Manila:lol:

manila_eye

February 2nd, 2009, 04:31 PM

^^ i wonder what manila would look like.

jpdm

February 3rd, 2009, 01:33 AM

Some good news!:)

Manila Standard

Export zones see 5% rise in employment

By Roderick T. dela Cruz

JOBS at the special economic zones will rise 5 percent this year despite the global financial meltdown that has forced electronics makers, the Philippines’ top exporters, to cut down on production, an official said yesterday.

“This is our fighting target this year,” said Lilia de Lima, director-general of the Philippine Economic Zone Authority.

“Our fighting target in investment is a 10-percent increase, and in employment a 5-percent increase.”

De Lima made the statement even as the central bank lowered its projections on the growth of worker remittances, to a range of 3 to 6 percent from 6 to 9 percent, as a result of the expected layoffs in the developed economies.

“Job losses will affect the deployment of labor, but there is enough flexibility in terms of Filipino labor because of their profile,” Bangko Sentral Deputy Governor Diwa Guinigundo said.

“We’re exporting more skilled workers—mainly medical and other professionals—and they can easily switch [job locations] depending on where the opportunities are.”

In January, the central bank forecast that remittances would expand 6 to 9 percent this year to reach $17.9 billion.

Another official said the government had allocated P18 billion for the first stage of its emergency employment program to help laid-off workers.

The amount would help create new employment for 63,672 low-income workers, said Domingo Panganiban, head of the National Anti-Poverty Commission.

“The beneficiary workers will be hired in projects that will serve to improve and preserve the fruits of our recent economic gains,” he said.

De Lima said some electronics firms were cutting production, but new investment in other sectors would take up the slack to keep employment growing at the special economic zones.

“While some companies are slowing down, there are some that are starting or expanding,” she said, citing a company producing medical instruments.

“The problem is that we are just counting the minuses; nobody is counting the pluses. There are companies from other Asian countries that are planning to transfer here, but we cannot disclose them yet.”

De Lima said Flash-memory maker Numonyx had absorbed 600 employees laid off by Intel Corp. in Cavite province, and that it would soon move its machinery from Pudong in China to the Philippines.

She said companies at the special economic zones employed more than 600,000 people, and that new investment would keep the employment level well above that figure this year. With Eileen A. Mencias

gabskii

February 3rd, 2009, 04:52 AM

(Bloomberg) -- Supplies of coconut oil from the Philippines, the biggest exporter, slumped in January after demand for the commodity waned, an industry executive said.

Shipments fell to 25,020 metric tons from 121,766 tons a year ago, said Yvonne Agustin, executive director of United Coconut Associations of the Philippines Inc., in a telephone interview today, citing preliminary data from members.

The export price of coconut oil from the Philippines has more than halved from $1,387.49 a ton in the week of July 25, the highest since Bloomberg started tracking the data a year earlier.

Supplies from the nation started declining the following month. The price was unchanged at $683.44 a ton in the week ended Jan. 23 from ago, according to data compiled by Bloomberg.

////THIS IS WHAT WE CALL CRISIS... I dont want phil to be like the US... its so sad and very disastric...////

dancethingy

February 3rd, 2009, 09:12 AM

MatudNilaBaby

February 3rd, 2009, 09:30 AM

^^ Im sorry to keep bringing this up, but can we exclude Dubai as a model urban center for other cities to follow. I lived there for two years and it is poorly planned. A model urban center should have an efficient rail transport system, dubai doesn't have this. I know its in the process of building a rail system, but once its done it won't be as efficient as it could be as compared to it being built a decade before their "i have the biggest penis" projects.

did u just say "the biggest penis projects" in dubai or its just a type o:lol::ohno::nuts::bash::):banana:

Animo

February 3rd, 2009, 08:43 PM

Kris Alingod - AHN Contributor (http://www.allheadlinenews.com/articles/7013892651)

Manila, Philippines (AHN) - Rose Taneo, 54, has been driving a cab around Manila since 1993. She describes 2008 as one of the more difficult years to "make ends meet," but thinks that life's challenges - global economic recession or not - can be met so long as one works hard.

"As long as you're diligent, you can overcome anything in life," she says in Filipino.

"Everything is difficult, especially if you don't have work... The Philippines is rich in natural resources, the problem is some people are lazy," she adds, citing the "manana habit" Filipinos were said to have developed after three centuries of Spanish colonization.

Rose is one of Manila's rarely seen female cab drivers, who braves the city's streets, infamous for its traffic jams, swerving jeepneys and "kotong cops" (traffic officers who extort money). She drives a 1990 model Toyota, assigned to her by her taxi operator, every other day to try to earn at least P3,000 (US$ 63.00) in 24 hours. A third of this income is paid to her operator and another third is used for gas, which has been a cheaper alternative, liquefied petroleum gas, in the past months. Her goal, to earn at least P800 (US$ 16.89) every time she takes out her cab, is not easy and "depends on one's luck," she says.

"Some passengers give tips, and others prefer not to use the meter [which is good]," she says while also explaining that while luck has a lot to do with it, so does diligence. "We are considered skilled workers.. our income depends on how hard we work, so our income is unlimited, unlike people who work in offices [who have a set salary]."

A nation of 96 million, the Philippines has about 23 million people living in poverty, according to an Asian Development Bank report. The Southeast Asian nation's economy grew the slowest in six years last quarter, by about 3.6 and 4.4 percent. Closure of an Intel plant, in one of its northern provinces, will cause the loss of 60,000 jobs, adding to the 34,000 people nationwide who have been retrenched or forced to reduce their work hours.

But the Philippine government is looking to the continued growth of the Business Process Outsourcing industry. It also said on Sunday that it is "stepping up the search for new job opportunities here and abroad for Filipino workers to mitigate the impact of the global economic meltdown on the country's workforce."

The government plans to employ the jobless and out-of-school youth using its Emergency Livelihood Employment Program. President Gloria Macapagal-Arroyo is also looking for "new job markets abroad."

The Philippines relies heavily on remittances from the 11 million Filipinos who work abroad to keep its economy afloat. The global economic recession has caused some OFWs (Overseas Filipino Workers) to lose their jobs, especially in Dubai and Taiwan.

Katrina Jacobe, a high school student, wants to study nursing in college so she can go abroad. She is one of many Filipinos who dream of a better life for themselves and their families by working overseas. Asked if she thinks life is difficult these days, the 15-year-old says in Filipino, "It is... my parents have lost their jobs, and I've had to work part-time."

She thinks government should listen to people who stage rallies, a common enough occurrence in the streets of Manila. She wants a president who is "responsible, who listens to the needs of the people, and who isn't corrupt."

Her friend, Analyn Repaldia, also complains about corruption and the government's failure to "support ordinary people."

"The government has not been supporting undergraduates," Analyn says. "Our problem with our education[al system] - how can a person find work if she doesn't have any education?"

Analyn is a 19-year-old who works with Katrina handing out real estate fliers in a commercial center in a middle class suburban area in Quezon City. She had to stop studying shortly before she was to graduate high school because her family did not have enough money to keep her in school.

"The most expensive thing we had to buy were the workbooks," says Analyn, who used to attend a public school. "They cost from P120-P150 (US$ 3.00) each. And you had to buy one for each subject. We had seven subjects."

Asked what young Filipinos need to do to help fix the economy, she says people her age need to study diligently so they can find jobs. They should also fight corruption, she adds.

To Filipinos, it is no surprise that 15 and 19-year-olds cite corruption as a serious economic problem. In the past weeks, local TV and radio have been deluged by coverage of a Senate inquiry into the "Fertilizer Scam," P728 million of taxpayer money given to politicians for distribution to farmers, but allegedly used for the 2004 campaign of President Arroyo.

The inquiry is nothing new, but certainly discouraging, in a country that is perceived as one of the most corrupt countries in the world. Transparency International, a corruption watchdog, said in its 2008 Corruption Perceptions Index the Philippines ranked 39th in a list of 180 nations that had Somalia as the most corrupt country and Denmark as the least.

"Not all Filipinos are corrupt," Analyn says of the perception that the Philippines is a nation full of corrupt officials. But she also has this to say to foreigners who plan to visit, "Be careful."

Espma

February 4th, 2009, 12:06 AM

^^ nah he's making a point that's why it's inside the quotation marks. Dubai has been flexing its muscles showing the world how much money they've got at the moment (i.e. those mega projects etc.)

venntro

February 4th, 2009, 03:22 AM

Investors see RP defaulting (http://http://www.abs-cbnnews.com/business/02/03/09/investors-see-rp-defaulting)
By VG Cabuag, Business Mirror | 02/04/2009 1:44 AM

Foreign investors are starting to feel that the debtors from the Philippines, including the national government, are more likely to default on its loans as a result of the worsening economic situation, according to an official from the Asian Development Bank (ADB).

ADB senior economist Dr. Cyn-Young Park said the widening credit default spreads lead many investors to think that the Philippine government may default on its debt, or not pay these when it becomes due.

“This is the investors’ assessment of the creditworthiness of the Philippine government,” Park said in a seminar organized by the Yuchengco Center and the De la Salle University.

“Generally, the market is more cautious in giving credit… that’s why sourcing funds overseas may be too costly at this [time],” she added.

A company’s credit-default swap spread is the cost per annum for protection against a default by the company. Park, however, said that with the global economic crisis, the Philippines fares well compared with newly industrialized economies in Asia, such as Hong Kong, Singapore, South Korea and Taiwan.

She said most of these have been heavily affected since they have a “substantial financial market,” mainly being linked with the United States market.

It will be in the hands of the national governments in the region to spur the economy—such as what the Arroyo administration is doing—by providing stimulus packages to perk up market and consumer demand, she said.

“ADB works with the regional government to take proactive actions so that we could ride out this storm and maintain the regional growth momentum,” she said.

As of October last year, the total outstanding debt of the national government stands at P4.184 trillion; some 43 percent of this, or P1.804 trillion, was owed to foreign creditors, and another P2.380 trillion, or 57 percent, was owed to domestic lenders.
The national government borrowed from foreign creditors the net equivalent of just P1 billion in October, but the overall level of the government’s foreign debt increased by 4.2 percent, or by P74 billion, because of the currency adjustments.

The government sold foreign currency-denominated IOUs aggregating P1.033 trillion during the period, some of which was meant to cover for the budget deficit.

The bulk of these foreign-currency issuances were denominated in US dollars equal to P935.8 billion, another in Japanese yen worth P24.7 billion plus P72.6 billion more in euro bonds.

Contingent debt that becomes direct national government obligations in case of default was 4.7 percent, or P24 billion higher to P537 billion, from the year-ago level of only P513 billion.

jpdm

February 4th, 2009, 07:44 AM

Hope others to value the hardship of our farmers, one way to help them is to patronize local produce like vegetables, fruits, processed agricultural products, local meats and other local products in general and the most is the support for our Rice Farmers " mag-tanim ay talagang hindi biro "

" BUY PINOY " sabi nga sa isang SSC thread.

For me this an Unbeatable Economic Model for the Philippines at all time-- crisis or no crisis!:cheers:

Now even the US is calling for the same economic model called "Buy American."

venntro

February 4th, 2009, 09:58 AM

IBON: Number of poor Filipinos to rise by 4M in 2009 (http://http://www.gmanews.tv/story/147301/IBON-Number-of-poor-Filipinos-to-rise-by-4M-in-2009)

MANILA, Philippines - Even with government's "unrealistically low" poverty line, the number of poor Filipinos will likely increase by 4 million in 2009, militant think tank IBON Foundation said Wednesday.

IBON research head Jose Enrique Africa said this is merely a conservative estimate, as it assumes a continuation of trends from 2003 to 2006, without the economic meltdown factored in.

"Gross domestic product (GDP) growth averaged 5.6% in 2004-2006, but the number of poor Filipinos according to the government's official poverty line still increased by 3.8 million to 27.6 million in 2006," Africa said in a statement.

“GDP growth will likely average even less than 5% in the 2007-2009 period, which means that poverty will possibly increase by at least 4 million poor Filipinos."

Africa added that growth has dropped steeply from 7.2% GDP growth in 2007, to 4.6% in 2008 and will likely be less than 3% this year.

The real number of jobless Filipinos increased to 4.1 million in 2008 and will likely rise to some 5 million this year, he added.

He also said the number of unemployed and underemployed Filipinos could then rise to at least 11 to 12 million in 2009.

"Given the scale of the problem, the government's measures for supposedly dealing with the crisis are sorely lacking," he said.

Africa said the alleged "pump-priming" 2009 national government budget is actually equivalent to just some 16% of the GDP, and is among the smallest in the last two-and-a-half decades.

On the other hand, he said the size of the budget has been more or less continuously falling from a peak of 24% in 1990. The supposed "alternative livelihood" and "jobs placement" programs seem oblivious to the severity of global and domestic economic problems and the absence of jobs for millions of displaced workers.

"In any case, they are even very narrowly targeted at just newly displaced workers and ignore the over 4 million workers who were unemployed even before the recent worsening of the crisis," he said.

Africa said there is certainly a need for the government to undertake mitigating measures.

"Because of the huge number of poor Filipinos, the mitigation measures have to reach the greatest number in the quickest manner possible. Among these are restoring real per capita social services spending to at least 1997 levels through an additional P246 billion for social services and removing the value-added tax (VAT) on food and oil products," he said.

Over and above these measures, there needs to be a radical change in economic policies to strengthen the domestic economy and create jobs and livelihoods for millions of Filipinos, he added. - GMANews.TV

Porknight

February 4th, 2009, 10:04 AM

^^ I always tip the drivers if they are honest and they give me the exact change.

jpdm

February 4th, 2009, 01:01 PM

I have a firm belief that the Philippines has the best economic think tanks/agencies with NEDA and PIDS. People working for these agencies are for me are among the best....

To cut the long story short..the government should harness these government agencies to fight of recession and work to make our economy move forward again.

The findings of PIDS regarding our economy suffering from "Dutch disease" should be given attention by our leaders.

eonynx

February 4th, 2009, 02:00 PM

bartstrife99

February 4th, 2009, 02:39 PM

This is an additional to Good News from Bad news

mployment rates in RP among world's highest
CHERYL M. ARCIBAL, GMANews.TV
02/04/2009 | 04:44 PM

MANILA, Philippines - The Philippines’ hiring rate is currently among the world’s highest since it has the largest number of companies that intend to employ professionals and managers in the region, an international poll indicated.

Seventy percent of companies in the Philippines are currently hiring at the managerial or professional level, Antal International said, citing results of its poll entitled “Global Snapshot."

Companies planning to hire managers are expected to rise to 76 percent, compared to the 10 percent which intend to cut its staff, and the three percent which are currently laying off workers.

“So far the employment market in the Philippines appears to be relatively robust with current levels of hiring at professional and managerial level at a high 70 percent and expected to rise to 76 percent over the coming quarter. Firing levels are currently low although organizations expect them to rise slightly during the early part of 2009," Antal said.

The study indicates that employment in the Philippines remains healthy, Lori Lava-Coates, who runs Antal's operations in the Philippines, said.

"With such high levels of active recruitment recently, a slowdown is expected. And with high levels of recruitment coupled with high levels of letting staff go, the survey suggests that organizations have been replacing their existing talent. As this process is finishing, they are waiting to see what 2009 has in store," she said.

In the region, Singapore has the highest firing rate with 54 percent currently laying off managers and professionals and another 15 percent expecting to let managers and professionals go.

In China, meanwhile, hiring levels are down noticeably with only 43 percent currently hiring and another 20 percent expecting to hire.

The situation is the same with India, where only 29 percent of companies are hiring professionals and managers and another 43 percent looking to hire.

The Antal International "Global Snapshot" is a quarterly survey of hiring and firing trends in some of the world's most important employment markets and in those likely to join this group over the coming decade.

The report covered the period of winter 2008/09 and is based upon material sourced from over 2,700 businesses in commerce, industry, and the financial services sector in 107 countries in four continents.

Founded in 1993, Antal International is a management and professional requirements with a particular focus on the sourcing and retention of candidates at middle and senior level. It is also one of the first recruitment organizations to devote substantial resources to emerging markets. The company now has 52 offices in 28 countries. - GMANews.TV

Lucentino

February 4th, 2009, 06:36 PM

^^ Im sorry to keep bringing this up, but can we exclude Dubai as a model urban center for other cities to follow. I lived there for two years and it is poorly planned. A model urban center should have an efficient rail transport system, dubai doesn't have this. I know its in the process of building a rail system, but once its done it won't be as efficient as it could be as compared to it being built a decade before their "i have the biggest penis" projects.

Point taken... the man was just suggesting to put up economic and tourism spots in the country. Heck we make Tagaytay the Vegas of RP!...

The example cities mentioned earlier have a lot of upside... just keep the good and throw the bad... we have learned the lesson from their experience.

Peace!

venntro

February 5th, 2009, 03:03 AM

IMF cuts RP growth forecast to 2.25% (http://http://www.abs-cbnnews.com/business/02/04/09/imf-cuts-rp-growth-forecast-225)
abs-cbnNEWS.com | 02/04/2009 5:04 PM

The Philippine economy is likely to grow by only 2.25 percent this year due to the easing demand in its major export markets, the International Monetary Fund (IMF) said.

The IMF said it saw growth slowing down even further than its initial 3.5-percent estimate in November 2008, which was already a revision of an earlier forecast that placed this year's growth rate at 3.8 percent.

"Because it is very much caught up in the kind of global factors that are affecting demand across the region, we are projecting Philippine growth in 2009, on average, to be about 2.25 percent," said Anoop Singh, Director of the IMF's Asia and Pacific Department.

Despite the slowdown, however, the IMF said the country still had "considerable room" for monetary easing which would stimulate growth, especially if done in tandem with a calibrated increase in fiscal spending.

Singh said the IMF was encouraged by the decision of the Arroyo administration to undertake a fiscal stimulus plan in order to prevent the economy from stalling.

"There is some room on the fiscal side, not an awful lot, but there has been approval by Congress of the budget that has some appropriate stimulus," he said.

Total recovery

IMF Managing Director Dominique Strauss-Kahn, for his part, said the world economy will recover from the financial crisis "at the same time."

"We see it at the same time as the rest of the world because we don't believe that it's really possible for the Asian economies to have a recovery with the rest of the world economy being in such a bad shape," Strauss-Kahn said.

In the process, however, Strauss-Kahn said some Asian economies, which are more dynamic and have significant resources and strong fundamentals, may recover slightly faster than others.

"I think some Asian economies are very good candidates to be the leading economies when that process will start again," he said.

Meanwhile, Strauss-Kahn called for the shift from export to domestic demand, since the former would be the one hit hardest by the global financial crisis. He said, however, that the transition cannot be done overnight.

"The problem in shifting from an export model to a domestic growth model is not that much to know how to increase the domestic demand but to know how to increase the supply, which is likely to alter this domestic demand," he said.

jpdm

February 5th, 2009, 04:46 AM

The best economic-stimulus package for the Philippines:cheers:

Business Mirror

Buying RP-made products, services helps local industries survive

Economy
Written by The Business of Consumers
Wednesday, 04 February 2009 23:58

In the United States there have been calls from various sectors to buy US products to save its various industries from folding up. The call is legitimate to save the world’s biggest economy from falling apart, thus save also the other economies that it has dragged with its financial woes.

In the Philippines the call to buy local has been drum-rolled way back. It is now more than ever that Filipinos are urged to heed the call. The plea to buy Pinoy-made is vital to the survival of various industries in these trying times.

First, buying local goods will save local industries and preserve jobs. Moreover, the job that you may be saving is your own.

Second, local products are relatively cheaper than most foreign counterparts. This is because local products pay less transport costs and it does not pay importation cost such as tariff.

Third, more local products have attained international standards that they have become popular brands abroad. Globalization has enabled Philippine products to adopt worldwide accepted norms for product safety and durability. With this international certification in place such as Hazard Analysis and Critical Control Points and halal, Philippine-made goods are easily shipped overseas and acquire world-class brand status.

Fourth, procuring homegrown goods gives the buyer a sense of patriotism. It is not baduy to buy Pinoy. Designers of local products using ethnic design and vibrant colors have shown that native is chic.

Fifth, thriving local industries encourage people to venture into business. Potential entrepreneurs will be encouraged to venture when they can sense that there is a market for their goods. Thus, Philippine industries will flourish if the Filipino consumers love their own products.

But the Filipinos can only buy local goods if there are Philippine-made goods available in the market. To encourage the development of micro, small and medium enterprises (MSMEs), the government, through the Department of Trade and Industry (DTI), launched the One Town, One Product program to develop the economy of the countryside and create livelihood and jobs.

From the roasted coffee of Tabuk, Kalinga; the colorful lanterns of San Fernando City in Pampanga; the mussels of Jiabong, Samar; and banana chips of Davao City, Otop has been putting different provinces on the map and encouraging consumers to rediscover what products these places have to offer.

There are also other products that Filipinos can be proud of, such as furniture. Philippine furniture, especially from Cebu and Pampanga, continue to rank as the finest in the world because of exquisite craftsmanship, which is the successful result of modern technology combined with creative ingenuity

What about shoes? Isn’t it more practical to buy something even if it slightly costs more but definitely with higher quality? Going for the comfortable, durable and affordable genuine-leather footwear that Marikina has to offer is better than those indistinguishable brands that can be bought at knockoff prices in flea markets. Some see the gesture of buying local shoes as insignificant, but it will go a long way in helping the Marikina shoe industry get back on its feet.

With the presence of local goods that are not only durable and safe but also well-designed, consumers will find it easier to appreciate and patronize products of Filipino ingenuity while, at the same time, supporting the interests of domestic industries.

Remember, buying local is a huge step in ensuring the viability of Filipino-owned industries.

crappypants

February 5th, 2009, 05:10 AM

Sa pampangga palang talo na yan.

venntro

February 5th, 2009, 06:14 AM

Jan inflation slows to 10-month low (http://http://www.abs-cbnnews.com/business/02/05/09/jan-inflation-slows-10-month-low)
abs-cbnNEWS.com | 02/05/2009 10:17 AM

Philippine inflation eased to 7.1 percent in January, the lowest level in 10 months, as economic activity slowed amid the global financial crisis, the government said Thursday.

The January figure was higher than the market estimate of 7.0 percent in a Reuters poll, but at the low end of the central bank's official forecast of 7.0 to 9.0 percent.

Prices grew by a slower pace than the 8.0 percent rate in December and extended a downtrend that started in September, National Statistics Office data show.

Food and fuel items made the most significant impact in its consumer price index basket.

Meanwhile, core inflation, which strips out some volatile food and energy items, edged down to an annual 6.9 percent in January from 7.3 percent in December.

Anticipating the decline, the central bank has cut its key interest rates by a total of one percentage point over the past two months to loosen credit and stimulate economic activity even as businesses cut more than 15,000 jobs amid depressed global demand for Filipino exports.

Central bank governor Armando Tetangco suggested Thursday that there was further room for manoeuvre on monetary policy.

"This confirms our expectation for continued slowdown in price increases and gives the (central bank) more room to support the economy," he said in a text message to reporters. With AFP, Reuters

Lucentino

February 5th, 2009, 09:15 AM

The best economic-stimulus package for the Philippines:cheers:

Agree. Pinoys are clinging on to their hard earned money at this point. The best place to start this is on basic necessities (food, clothing, etc.).

RonnieR

February 6th, 2009, 11:22 AM

Korean firm to invest P1 billion on RP's largest golf course in Cebu
By Ehda M. Dagooc Updated February 06, 2009 12:00 AM

Despite the volatile economic condition, the Korean-led firm Philippine BXT Corporation is poised to start off its P1 billion investment project in Cordova, to build the largest Golf Academy, RhiLanguage and Retirement Village facility in the Philippines.

In an interview with BXT vice president Bruce Chiongbian, he said that the company will start the horizontal works of the 36-hectare golf course and retirement facility in the first quarter next year.

At present, the company is still working on the documentations for the huge investment, while Chiongbian said the municipality of Cordova, has also invited the company to extend its project towards the reclamation area.

Once completed, BXT's 18-hole Golf Academy will be the first championship and world-class golf course in the Cebu that will also pull up Cebu's attractiveness for sports tourism enthusiasts around the world, especially the Japanese, and also Koreans.

The Phase 1 of the project, which will start in the first quarter of 2010 will build the first Golf Academy in Cebu, the second phase will work on the 18-hole golf facility, and the third phase will establish the pockets of retirement village facilities within the sprawling 36-hectare property, Chiongbian said.

The company, whose local counterpart firm called Joil UBF Corporation, is planning to develop a total of 100-hectares in Cordova for its long term plan.

Aside from the Golf Academy, the company will also include a language school within the facility that will attract mostly Korean nationals whose top interest right now is to learn English outside of their country.

In a separate interview with the company's chairman Yong Jun Park, he said that there is a huge market in Korea whose interest is to study Golf and Language in tropical countries like the Philippines.

Approximately, there are about 7,000 to 8,000 Koreans that are studying language (English) in Cebu, significant part of these students are also interested to study Golf, he said.

The integrated leisure, educational, and retirement village facility development in Cordova will be the second project of the company, after the P4.5 billion Imperial Palace WaterPark Resort and Spa on Mactan Island, of BXT Busan Express Terminal Corporation, the Korean-based counterpart of the Philippine BXT Corporation.

According to Park, the initial development, which is the Academy, is expected to draw more Koreans to come to Cebu. The Golf and Language Academy on the other hand will not only accept Korean students, but also Filipinos, and other nationalities.

Korean trainors for Golf Academy will be brought in to Cebu, as soon as the school starts, while the Language school facility will give opportunity for Cebuanos to get employment in teaching English language to Koreans.

The Cordova project of BXT will automatically avail of the government incentives following the proclamation of the Imperial Palace and WaterPark Resort and Spa, as the first tourism economic zone (TEZ) in the Visayas.

venntro

February 7th, 2009, 01:14 AM

RP says end-January reserves at $39.6B (http://http://www.abs-cbnnews.com/business/02/06/09/rp-says-end-january-reserves-396b)
abs-cbnNEWS.com | 02/06/2009 4:53 PM

The country's gross international reserves (GIR) rose to a record $39.6 billion at the end of January this year, due largely to more government borrowings and inflows from its asset privatization program, the central bank said on Friday.

The current level of foreign reserves, up from a revised $37.6 billion at end-December, is equivalent to 4.8 times the country's short-term foreign debt based on original maturity and 3.0 times based on debt falling due in the next 12 months.

"The marked increase in reserves was due mainly to deposits by the national government of proceeds from its 10-year bond issue, and by the Power Sector Assets and Liabilities Management Corporation of proceeds from the privatisation of the National Transmission Corp.," the Bangko Sentral ng Pilipinas (BSP) said in a statement.

According to the BSP, the country's foreign exchange reserve was enough to cover six months worth of imports of goods as well as payments of services and income.

Last month, Manila raised $1.5 billion in what was Asia's first sovereign bond issue this year, covering its 2009 overseas debt requirement.

It also received around $1 billion in partial payment from a consortium that won the right to operate the country's power grid.

The central bank has said it expects the country's GIR to be at $37-37.5 billion by the end of the year, almost flat from last year, despite an expected slowdown in growth of remittance inflows.

Remittances, which form the backbone of the Philippine economy, are forecast to grow 3-6 percent this year, against an estimated 10 percent growth last year, because of the global economic crisis. With Reuters

bartstrife99

February 7th, 2009, 12:31 PM

jpdm

February 8th, 2009, 10:16 AM

This is a New Historic rise of our country's gross international reserves (GIR) hopefully we can achieve as much as 50B$ before the president leave her Office even in the high of global financial crisis.

It can be done.

By reducing our outrageous import bill and our trade deficits!:bash::bash:

Buy Pinoy!!!:cheers:

red_jasper

February 8th, 2009, 03:23 PM

SEN SANTIAGO
Arroyo got ‘tired for nothing’ in US

By Christine Avendaño
Philippine Daily Inquirer (http://newsinfo.inquirer.net/breakingnews/nation/view/20090208-188135/Arroyo-got-tired-for-nothing-in-US)
First Posted 20:11:00 02/08/2009

MANILA, Philippines -- President Gloria Macapagal-Arroyo did not embarrass herself or the nation when she rushed to an event in the US in a bid to personally meet US President Barrack Obama, a staunch ally in the Senate said on Sunday.

But Senator Miriam Defensor-Santiago observed that Arroyo "just got herself tired for nothing,'' dismissing claims the President was running after Obama and that the US chief executive was playing hard to get.

Santiago said it was Arroyo's call to make the side trip to Washington for Thursday’s National Prayer Breakfast.

"It's really up to her if she has the energy to do so, but she did not embarrass herself,'' Santiago told dzBB radio.

She noted that not many countries noticed Arroyo's presence at the affair.

But Santiago agreed with some of her colleagues that Arroyo should have skipped the event.

Even if it was the US Congress that invited her, Santiago said Arroyo was the Philippine president and "at least recognized as a head of state," and not just as another face in the crowd.

She said it was not enough that Arroyo was made to seat beside House Speaker Nancy Pelosi or that she met with Secretary of State Hillary Clinton.

"Our president should be treated like a president," she said.

Santiago said that the Philippine ambassador to the United States should not have allowed this kind of treatment of the President.

She said it was possible that Arroyo was "misled," as she pointed out the President was not the "impulsive type."

Told that Arroyo at least was able to meet and have a picture taken with Clinton, Santiago laughed and said: "So what?''

neyoneyo80

February 8th, 2009, 05:12 PM

bM0FbtdvPZw

Juan Pilgrim

February 8th, 2009, 08:15 PM

^^I agree with JPDM and all forumers advocating and promoting for BUY PINOY!!
as a sure way of helping our economy not only survive but also surpass this current global crisis.

But I will also go a little further, LET US NOT BUY FROM UKAY-UKAY OR WAG-WAGAN!

...Ukay-Ukay is Visayan for "sift through" or "dig up." Up north the term is wag-wag, "to dust
off." You find the best bargains by digging them out of a pile and dusting them off. But the imagery is
vintage 80's or earlier. The business has come a long way since then.
In the trade's early years, ukay-ukay referred to garments shipped to the Philippines as donations
from some charitable group to help refugees and calamity victims. Soon enough, overseas workers
learned to collect used clothing, preferably with designer labels, before it got to the Goodwill stores, and
send it to the Philippines in balikbayan boxes. Entrepreneurial friends and relatives would buy in bulk,
then sell by the piece to the public.
Traders also persuaded non-government organizations to act as allies. The NGOs would obtain
government permission to receive hefty quantities as donations, supposedly for distribution to needy
communities, and therefore shielded from heavy tariffs on imported products. This is how the ukayukay
vendor can sell through flea markets and tiangge at rock-bottom prices...

...The 80's outlets catered to DE buyers, who rummaged occasionally through sidewalk heaps for
usable buys, but were not eager to be associated with this sort of shopping because what they bought
was of inferior quality.
Today ukay-ukay serves not only the CDE markets, but also budget-conscious, variety-seeking
AB customers who know that the stalls carry a wide range of used goods and export overruns, including
toys, linen, handbags and shoes.
Even when the items are second-hand, consumers may still prefer them to local makes because
of their brand names and perceived quality, and feel like winners after a successful bargain hunt...

...the Federation of Philippine Textile Industries has complained about a drop in its
members' incomes, and just as predictably, the government has made noises about cracking down on
importation of used clothing for commercial purposes...
http://www.dlsu.edu.ph/research/centers/cberd/pdf/bus_focus/Ukay_ukay.PDF

:horse:

Juan Pilgrim

February 8th, 2009, 08:22 PM

HOW TO SAVE JOBS : No 'ukay-ukay,' no loan surcharges

http://services.inquirer.net/print/print.php?article_id=20090130-186581
By Veronica Uy
INQUIRER.net

Posted date: January 30, 2009

MANILA, Philippines—Generate local employment by clamping down on the sale of second-hand clothes (or ukay-ukay) and other smuggled goods, and help displaced workers by suspending loan surcharges on housing and salary loans.
These are just two of the "commitments and deliverables" by the hundreds of participants to Friday's Multi-sectoral Conference on the Global Financial Crisis organized by the Department of Labor and Employment in its attempt to save jobs.

At the beginning of the conference, Labor Secretary Marianito Roque said the job situation in the country for the past three months has "deteriorated" as the DoLE continues to register job losses every day.

However, he said, the situation is not as bad as projected in the media because the Philippine local economy remains "very strong."

"We are not in recession," he said.

While some reports indicate that between 200,000 to 300,000 workers are likely to lose their jobs in the next six months due to the global financial crunch, Roque said the actual number of workers laid off as a direct result of the crisis is smaller than that number.

"As of last night, reported OFW displacements reached 5,404 workers while locally 40,000 workers have been displaced and some 33,000 workers have begun to experience shorter working hours," he said.

Because he wants to be on top of the situation, the labor chief said the monitoring for the effects of the crisis on labor has been more intensive and extensive.

Roque said he intends to exert every effort to respond to the job displacements before April, when some half a million new graduates are expected to be added to the labor force.

"So that by June, we will be working on [how to get work for] the new graduates," he said.

The labor chief also announced that the Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. has vowed to retrench workers only as a last resort in a memorandum of agreement it signed with the labor department.

After the conference, which included a workshop for each of the sectors on garments, electronics, automotive, informal, sea-based overseas, and land-based overseas, the participants adopted a program of action that principally looked to improving the domestic market.

For instance, conference participants sought to address the problem of undue competition due to smuggled goods, "ukay-ukay," and second-hand vehicles by, among others, embarking on a campaign to patronize locally produced garments.

They urged the study on tax holidays, temporary reduction of excise tax, moratorium on tariff reduction, and a review of the commitments made in free trade agreements.

To entice more people to buy cars, banks and other financial institutions are encouraged to open more loan windows for car loans, and other similar ways to "incentivize" vehicle purchases.

They also called for reducing the cost of doing business in the Philippines. The car manufacturers, for instance, called for the scrapping of fees being charged by the Land Transportation Office.

At the same time, participants were keen on protecting workers' rights especially during these hard times.

Along this track, the proposals included support mechanisms that "encourage freedom of association and collective bargaining."

"Promote and respect core labor standards down the supply chain" was the call by the automotive sector.

One of the proposals to address the bottom-line for displaced workers is to transfer administrative incentives the Philippine Economic Zone Authority used to give to companies to workers.

They asked that the documentary requirements for availing of existing labor loan programs be made easier. They also called on the Department of Budget and Management to fund assistance to displaced workers in the garments sector.

Aside from committing to re-training and re-tooling of displaced workers, the participants called for a study on a six-month moratorium on compliance with new wage orders for garment, textile, and footwear companies with ongoing CBA negotiations.

On sea-based overseas employment, the participants would study the establishment of a stand-by fund for displaced seafarers, and the possibility of observing a moratorium on wages and other economic issues.

The multi-sectoral participants also sought to "maximize opportunities presented by the crisis." Ships scheduled for lay-up (for long-term temporary docking while not in use) and for scrapping may still employ some seafarers.

For land-based overseas employment, the proposal that stood out was the possibility of implementing a liability insurance scheme to cover repatriation, health, and other claims of OFWs.

A copy of the program of action would be submitted to the President and to Congress.

:horse:

-------------------------------
Puksain ang ukay-ukay na papatay sa ating ekonomiya. BUY PINOY!

Askal82

February 8th, 2009, 08:51 PM

^^ Question now is implementation. So many good ideas for many, and so does the opposition for few who wanted to secure their own interests. It's gonna be a Swiss challenge to get them to work together.

Juan Pilgrim

February 8th, 2009, 09:20 PM

Who wouldn't want to receive a big box or two full of goodies mostly produced and manufactured outside the Philippines?

Aside from the billion$ of mon€y OFWs and other Filipinos living outside the Philippines send to their loved ones in the PHILIPPINES
they also send hundreds of thousands of BALIKBAYAN BOXES through shipping companies and couriers if they could not come home
and take with them whenever they visit their families and loved one in the PHILIPPINES!

Slowly, more and more Filipinos outside the Philippines are realizing that during this current global economic crisis
sending money rather than a BALIKBAYAN BOX full of "pasalubongs" would help the PHILIPPINE ECONOMY more.

Let's think about this.
Every DOLLAR we spend in the PHILIPPINES to BUY PHILIPPINE MADE PRODUCTS
is a contribution to the continued progress of our ECONOMY.

LET US LIMIT THE CONTENTS OF THE BALIKBAYAN BOXES WE SEND
TO PRODUCTS THAT ARE NOT EASILY AVAILABLE IN THE PHILIPPINES

Balikbayan boxes were born out of the near-collapse of the Philippine economy back in the 1970's-1980's. Due to the worsening conditions back home, Pilipinos working overseas sent care packages back to their families to help provide necessities and luxuries that were once affordable. Throughout the years, the balikbayan box evolved along with specialized shipping companies (Forex, LBC), cardboard materials, shipping covers, and fancy variations of rope.

Over an estimated 300,000 balikbayan boxes make the 45 day trip to the Philippines every year. They are the customary gifts that mark the beginning or the end of the a Pilipino's visit to the Philippines. However, to some the balikbayan box represents an emotional link back to their distant families back home:

Some people scoff that the boxes often contain items that can be found easily in the Philippines: bags of rice, sneakers, candy and cans of Spam -- a delicacy introduced to the islands by American soldiers stationed here for decades. But even people who say they don't want to be a dumping ground for Americans' used clothing understand that what's inside these boxes isn't as important as the idea of them: connecting family members far away. For many of them, the tradition eases the pain of separation.
http://www.bakitwhy.com/2008/06/dissecting-the-balikbayan-box.html

:horse:
------------------------------
TANGKILIKIN ANG SARILING ATIN! BUY PINOY!!!

Askal82

February 8th, 2009, 10:06 PM

espresso1018

February 9th, 2009, 03:56 AM

You know what, the critics of Mrs. Arroyo are making a big fuss of this pesudo-chasing between Obama and Arroyo because they are running out of bullets to attack the President. PGMA went to the US National Prayer Breakfast upon the invitation of the US Congress. Buti sana kung pumunta siya dun at nag gate crash lang. She still got invited. Meeting Obama was not part of the agenda because that breakfast meeting has a definite purpose. It was not an event where heads-of-state will discuss this and that with each other. Obama just said his speech and left. So what now? If PGMA was not noticed by other world leaders, whoever were present, it also means that only the Pinoys noticed it and made a big issue of a non-issue.

RonnieR

February 9th, 2009, 04:54 AM

When I go home to the Philippines before, my mom would like to stuff boxes of soaps, rolls of tissue papers, toothpastes, SPAM, Corned beef and other household items you can find in ordinary department stores over there.

She always have this reasoning that imports are cheaper and are of higher quality than there which I don't really believe because buying in the Philippines is cheaper and the quality can be as good as the imports from what I observed. I enjoy traveling light and carrying extra unnecessary baggage is no fun.

So sad but it is due to colonial mentality that is so strong esp. to the older generation...My mom also thinks that imported products are better...I always corrected her.

Who wouldn't want to receive a big box or two full of goodies mostly produced and manufactured outside the Philippines?

Aside from the billion$ of mon€y OFWs and other Filipinos living outside the Philippines send to their loved ones in the PHILIPPINES
they also send hundreds of thousands of BALIKBAYAN BOXES through shipping companies and couriers if they could not come home
and take with them whenever they visit their families and loved one in the PHILIPPINES!

Slowly, more and more Filipinos outside the Philippines are realizing that during this current global economic crisis
sending money rather than a BALIKBAYAN BOX full of "pasalubongs" would help the PHILIPPINE ECONOMY more.

Let's think about this.
Every DOLLAR we spend in the PHILIPPINES to BUY PHILIPPINE MADE PRODUCTS
is a contribution to the continued progress of our ECONOMY.

LET US LIMIT THE CONTENTS OF THE BALIKBAYAN BOXES WE SEND
TO PRODUCTS THAT ARE NOT EASILY AVAILABLE IN THE PHILIPPINES

:horse:
------------------------------
TANGKILIKIN ANG SARILING ATIN! BUY PINOY!!!

I agree. The funny thing is: the imported stuff that they sent are readily available in supermarkets/grocery stores here in the Philippines....maybe a few items are not...

RonnieR

February 9th, 2009, 04:56 AM

By Ding Cervantes Updated February 09, 2009 12:00 AM

CLARK FREEPORT, Philippines — Contrary to rumors its operations have been dwarfed by the global economic crisis, Texas Instruments, Inc. (TI), the world’s largest manufacturer of semiconductors, has started to move equipment and other facilities into its almost completed production plant here. The cost of the plant is estimated to reach $1.5 billion when it opens by the middle of this year.

“Texas Instruments has ... finished its building here at the cost of $300 million,” Clark Development Corp. (CDC) president and chief executive officer Benigno Ricafort told The Star yesterday.

President Arroyo had described TI as the “biggest investment in the economic history of Clark”.

Ricafort denied reports that TI had significantly cut down on its operations in its plant in Baguio City as reported last December.

“What I know is that some 100 of its personnel in Baguio will be at Clark to orient the new but already trained employees of Texas Instruments here,” he said.

Rumors that the worldwide crisis has affected plans of TI came after some workers hired to construct the buildings here turned jobless.

“That’s because they were contractuals hired to construct the buildings. Now the buildings are finished as much as their contracts,” Ricafort said, noting that some 80,000 tons of concrete were used for the construction of the buildings within the sprawling 77,000 square meter TI complex.

Ricafort expressed confidence that despite recession in the US, TI would be able to employ some 3,000 workers for its plant in this freeport as initially announced. “I don’t think there has been any change in that,” he said, but noted that the hiring of personnel would come in phases, and not at one time.

No one from Texas Instruments could be reached immediately yesterday, but Ricafort said he expected the firm to start full blown operations “by June at the latest”.

TI has been operating a 25-hectare plant in Baguio City for more than two decades. This plant reportedly accounts for two-fifths of TI’s total sales.

TI’s $1-billion outlay for the plant, which will be designed as the company’s most environmentally efficient assembly site, will be spread over 10 years.

TI designs and manufactures analog, digital signal processing and chip technologies that help customers develop products for the affordable mobile phones to classroom projectors that support remote learning, to prosthetic devices.

There are about 36 semicon and electronic firms in Clark with a total investment commitment of P5.07 billion for the next five years and projected to employ more than P11,714 within the same period.

The volume of exports from Clark usually comes up close to a billion, of which 65 percent in terms of value are products of IT-firms/semiconductor firms.

Among the leading electronic firms in Clark are Nanox, Phils., which exports more than a million dollars worth of products monthly; SMK, Phils., which has more than $ 2 million in monthly export receipts; LNK with $ 1.5 million; Amertron with $ .159 million and Poongsan with $ .156 million exports.

Semi-conductor firms have cited the advantage of Clark because of the direct access of the Freeport to air cargo facilities, especially the availability of the world’s largest air cargo firm — the United Parcel Services — and the accessibility of Clark to seaports in Manila and Subic Bay Freeport Economic Zone in Zambales.

During the groundbreaking rites for its plant here in 2007, TI senior vice president Kevin Ritchie said his firm had considered setting up the plant in Vietnam, Thailand or China, but finally decided on a second Philippine plant because of the strength of its Baguio operations which employs over 2,000 workers.

beads_strawberries

February 9th, 2009, 05:11 AM

^^ It seems the media is misleading the public again by saying that the president was snubbed by Obama again. It's as if Arroyo wanted the approval of Obama so she can be popular.

As far as I know, the presidential aspirants are the ones who want to associate themselves with Obama, not the president. Maybe she wanted to meet Obama so they can discuss matters pertaining to economic conditions of both states. But if she could not have the opportunity yet, why would she perpetually chase the US president? Being the workaholic president that she is, she'll just prioritize her work than chase the US president.

venntro

February 9th, 2009, 06:03 AM

Firms retaining workers may receive tax holidays (http://http://www.gmanews.tv/story/147886/Firms-retaining-workers-may-receive-tax-holidays)
02/09/2009 | 12:11 AM

MANILA, Philippines - Tax perks to save and generate jobs on top of luring companies to spend will be considered by the government for the annual Investment Promotion Plan (IPP).

Under a portion of the proposed list of incentives-eligible ventures, troubled firms regardless of industry may enjoy tax perks if they retain workers or provide retraining, Board of Investments (BoI) Managing Head Elmer C. Hernandez told reporters late last week.

The proposal drew mixed reactions from business groups and an economist. Some lauded the effort to address rising layoffs while others worried about the monitoring needed and the impact of tax perks on government revenues.

“The worst scenario is a plant will close down. We want to avoid that. We’re looking at preventing that and what type of incentives will be provided ... for those that will retain their workers or minimize retrenchment," Mr. Hernandez said.

“We may also allow [perks for] mergers and acquisitions on the condition that existing workers will be retained ... It could be possible to proportionate the incentives on the basis of [those kept]."

The “additional deduction for labor expense" (ADLE), in particular, is the key fiscal incentive that may be granted, Mr. Hernandez said.

Previously, only firms operating new ventures specified by the IPP enjoyed the privilege of deducting half of the cost of wages of additional workers from taxable income.

“Now, you open up [the ADLE] to those firms that will qualify under job-saving," Mr. Hernandez said.

Philippine Chamber of Commerce and Industry President Edgardo G. Lacson welcomed the BoI proposal, saying in a telephone interview yesterday: “Any idea that will help to save jobs is worth trying. We support the enlightened policies of government of using incentives rather than [punishing] firms that are closing."

venntro

February 9th, 2009, 06:45 AM

RP to export more workers to ease crisis at home (http://http://www.abs-cbnnews.com/business/02/09/09/rp-export-more-workers-ease-crisis-home)
Agence France-Presse | 02/09/2009 10:55 AM

As thousands of Filipino workers face the grim prospect of being laid off due to the global financial crisis President Gloria Arroyo has called for an intensified effort to place more workers overseas.

The Philippines is already one of the world's leading sources for skilled and unskilled workers with up to nine million people, about 10 percent of the population, living and working in 140 countries.

In the first 11 months of last year these workers sent home $15 billion, contributing around 10 percent of the country's gross domestic product and helping to keep growth for the year at a respectable 4.6 percent.

While remittances have managed to shield the Philippines from the full impact of the financial crisis, the small manufacturing and garment sectors -- the country's main export earners -- are bleeding as factories close and thousands lose their jobs.

The Labour Department says some 15,000 workers have been laid off over the past two months while 19,000 others had their work week cut to four days or less.

In its worst-case scenario, the government fears that as many as 800,000 could lose their jobs this year.

The Arroyo government believes there are jobs to be had overseas for Filipinos mainly in the Middle East, and the more workers deployed the more the country gets in remittances.

Arroyo discussed the issue with Saudi Arabian officials in Riyadh last week during a brief stopover where more than a million Filipinos already work.

The government is also considering lifting its five-year ban on Filipinos working in Iraq and is sending a team to the country this month.

During a recent visit to the Philippines Bayan Mohammed, Iraq's minister for housing and construction, asked Philippine authorities to reconsider the ban.

Vice President Noli de Castro said recently that Iraq is looking for 10 million workers, ranging from doctors and nurses to construction workers.

Unemployment in the Philippines currently stands at 6.8 percent in a country where more than 60 percent of its 39-million-strong workforce are employed in low-paid fishing, agriculture and domestic work.

"There will be job losses in East Asia but there will be jobs in the Middle East because countries in the Middle East have responded to the crisis by pump-priming their economies," said socio-economic planning secretary Ralph Recto.

Meanwhile, healthcare jobs will still be available in Europe and the United States because of the ageing populations there, he said.

Labour Secretary Marianito Roque said there is unmet demand for 389,000 jobs abroad, including more than 100,000 in Qatar and 12,000 in Kuwait.

Recto expects the number of Filipinos working abroad will increase this year, as will their remittances back home, citing signs that the deployment of such workers went up in late-2008 despite the onset of the crisis.

Even amidst the financial turmoil, the central bank has projected a six percent increase in remittances from overseas workers this year. This would be a slowdown from the estimated 15 percent increase in 2008.

Private recruiters of Filipinos for overseas work say there is huge demand -- but that only a few Filipinos may qualify.

Manny Geslani, a consultant to recruitment agencies, said Philippine recruiters have only been able to fill about 40 percent of their job orders because of the shortage of qualified workers.

In the Philippines, some 27 million people live on a dollar a day or less and one in three adults is unemployed or underemployed, according to official data.

venntro

February 9th, 2009, 06:50 AM

Government set to lift budget-deficit ceiling (http://http://www.abs-cbnnews.com/business/02/08/09/government-set-lift-budget-deficit-ceiling)
By Erik dela Cruz, Business Mirror | 02/09/2009 12:25 AM

Finance Secretary Margarito Teves on Saturday said the government is now poised to lift its budget-deficit ceiling this year from P102 billion, which is equivalent to 1.2 percent of the gross domestic product (GDP), and review its borrowing program and other macroeconomic assumptions.

“In the next two weeks, because of the very difficult conditions [in the global economy], we are likely to review our macroeconomic assumptions, so there’s a likelihood that the deficit ceiling...might be [raised],” Teves said during a forum at De La Salle University (DLSU) in Manila.

He told the BusinessMirror after the forum: “The deficit will be larger. Up to what extent, we still don’t know.”

Because “events are moving fast” and with the full impact of the global financial crisis on the domestic economy expected to be felt in the first half of this year, Teves said the need for the government to pump-prime the economy has become more urgent.

“If the deficit target will be different, then we need to look into the borrowing program and whether the borrowing mix will also be changed,” he said.

Teves said the Development Budget Coordination Committee (DBCC) will review other macroeconomic assumptions, taking into account the declining inflation and lower-than-projected oil prices. The DBCC is composed of the Department of Finance (DOF), the Department of Budget and Management, the National Economic and Development Authority and the Bangko Sentral ng Pilipinas.

Teves could not say whether the government would also need to revise its economic-growth target this year given the expected adjustments in the fiscal program. The government is aiming for a GDP growth of 3.7 percent to 4.7 percent this year, slashing the target from the original goal of 6.1 percent to 7.1 percent.

Last week the International Monetary Fund (IMF) warned of a more severe impact of the global financial crisis on the Philippines in terms of weaker remittances from Filipinos working abroad and export earnings.

The IMF now sees the country’s GDP growth slowing further to 2.25 percent this year from last year’s 4.6-percent expansion, which followed a three-decade-high growth of 7.2 percent in 2007.

Inflation slowed to a 10-month low of 7.1 percent in January and some economists expect the headline figure to be below 5 percent as soon as April as crude oil prices are seen falling further in anticipation of weakening global demand.

Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said last week the lower inflation rate in January “confirms our expectation for continued slowdown in price pressures and gives the central bank more room to support the economy and ensure there is sufficient liquidity for the efficient working of the financial markets.”

venntro

February 9th, 2009, 07:05 AM

PNP ready to quell possible 'riots' which may arise from economic downtrend (http://http://www.gmanews.tv/story/147924/PNP-ready-to-quell-possible-riots-which-may-arise-from-economic-downtrend)
02/09/2009 | 12:11 PM

MANILA, Philippines - The Philippine National Police (PNP) on Monday declared itself ready for possible riots and criminality that might arise from the impact of the global economic meltdown on the local economy.

In a press statement posted on the PNP website, National Police chief Director General Jesus Verzosa said that despite the doomsday scenario predicted in the wake of the downtrend, the PNP will ensure that peace and order is maintained.

"We shall strongly respond to lawless elements who may take advantage of the situation. Your PNP will deliver public safety services in areas where it matters most," Verzosa said.

He said the PNP will send visibility patrols in crime-prone areas and in the countryside that may be threatened by insurgent activities.

"We will not let our guard down and not fail the great expectations of all the Filipino people," Verzosa said.

On the other hand, Verzosa said the PNP is currently undertaking a "painful yet stronger reform agenda" under the Integrated Transformation Program. "It is my dream that I shall retire and leave a legacy of having restored the respect which every man and woman of the PNP truly deserve," he said. - GMANews.TV

gabskii

February 9th, 2009, 07:45 AM

Philippine Inflation Slows for Fifth Month in January

Philippine inflation slowed for a fifth month in January, making it more likely the central bank will cut interest rates to shield the economy from a global recession.

Consumer prices rose 7.1 percent from a year earlier after increasing 8 percent in December, the National Statistics Office said in Manila. That was the slowest pace in 10 months. Economists forecast 6.7 percent while the central bank estimate was for 7 percent to 7.9 percent.

Central banks across Asia are taking advantage of slowing inflation and slashing interest rates as the region’s export- dependent nations are pummeled by a global economic slump. Governor Amando Tetangco said there was “room for further easing” after Bangko Sentral ng Pilipinas on Jan. 29 lowered borrowing costs for the second time in six weeks.

“The Philippines’ current monetary stance is still tight relative to the rest of the region,” Enoch Fung, an economist at Goldman Sachs Group Inc. in Hong Kong, said in a report. “We expect another 100 basis points in reductions to policy rates as inflation and growth continue to slow.”

The $144 billion Philippine economy may expand as little as 3.7 percent this year, the slowest pace since 2001, according to government forecasts. Growth was 4.6 percent in 2008 and 7.2 percent in 2007.

‘Room to Move’

The slowdown gives the central bank “more room to support the economy and ensure that there is sufficient liquidity for the efficient working of the financial markets,” Governor Amando Tetangco said today in a mobile phone text message.

The peso rose 0.1 percent to 47.465 per U.S. dollar at 9:36 a.m. in Manila, according to Tullett Prebon Plc, after earlier falling as much as 0.3 percent.

Bangko Sentral last week reduced its key interest rate to 5 percent from 5.5 percent following a half-point cut on Dec. 18. The central bank’s next meeting is scheduled for March 5.

The New Zealand and Indian central banks have slashed their benchmark interest rates to record lows and the Reserve Bank of Australia on Feb. 3 cut borrowing costs by one percentage point to the lowest level since 1964.

Inflation in the Philippines is slowing as oil prices fall and gains in the peso make imports cheaper.

Food, Tobacco

Crude oil futures fell to $35.40 per barrel on Jan. 15, close to the four-year low reached in December. The Philippines imports about 90 percent of its oil.

The peso rose 0.3 percent in January after climbing 3 percent in December, the most in more than year, as overseas nationals boosted remittances to families at home. Remittances climbed 15 percent to $15 billion in the first 11 months.

Food, beverage and tobacco prices rose 12.2 percent in January, the slowest pace since April 2007, compared with 12.7 percent in December. Fuel, light and water costs fell 3.8 percent compared with a decline of 1.7 percent in December.

Services rose 3.2 percent compared with 4.6 percent, clothing gained 4.3 percent compared with 5 percent, and housing and repairs costs rose 4.3 percent compared with 5.3 percent.

RonnieR

February 9th, 2009, 08:03 AM

RP to export more workers to ease crisis at home (http://http://www.abs-cbnnews.com/business/02/09/09/rp-export-more-workers-ease-crisis-home)
Agence France-Presse | 02/09/2009 10:55 AM

The Philippines is already one of the world's leading sources for skilled and unskilled workers with up to nine million people, about 10 percent of the population, living and working in 140 countries.

In the first 11 months of last year these workers sent home $15 billion, contributing around 10 percent of the country's gross domestic product and helping to keep growth for the year at a respectable 4.6 percent.

Which country has the biggest source of workers/migrants? Is it Mexico or India? I think the Philippines belongs to top 5 in the world - source for skilled and unskilled workers.

venntro

February 9th, 2009, 08:15 AM

^^ Apart from Mexico and India, China should likewise be up there. Perhaps, the Philippines will most likely be at 4th place.

venntro

February 9th, 2009, 08:57 AM

Why is our economy still growing? (http://http://business.inquirer.net/money/columns/view/20090208-188156/Why-is-our-economy-still-growing)

By Cielito Habito
Philippine Daily Inquirer
First Posted 22:30:00 02/08/2009

IT SURPRISED MANY, INCLUDING government itself, that the economy still posted a respectable aggregate growth rate of 4.5 percent in the last quarter of last year. With the much larger industrialized economies including the US, Japan and Germany already shrinking in recent quarters, it seemed rather unlikely that much smaller economies like ours could continue growing, more so at the rate it did. Singapore, with an aggregate GDP roughly the same as ours but which is shared by only 1/20th as many people--and therefore a much larger economy than ours in relative terms--has also suffered a shrinking economy in recent quarters.

It would seem that we’re now in a situation where smaller is better, and largeness is a liability that brings greater vulnerability to the financial meltdown. Is it primarily our smallness that helps us withstand the repercussions of the financial collapse that began in Wall Street? To what can we trace our economy’s recent growth?

Underdevelopment

It’s actually not so much smallness per se, but the underdevelopment of our economy that has, ironically, become a saving grace for us in the current crisis. There are two aspects to this underdevelopment. First, we still do not export as much of our production as our erstwhile more dynamic neighbors have been doing. The numbers tell the story: Our total exports were 42 percent of total GDP in 2007, but this same ratio was 231 percent in Singapore, 110 percent in Malaysia, and 73 percent in Thailand. Only Indonesia (at 29 percent) had a smaller export/GDP ratio than the Philippines among the Asean-5.

But note this: If we subtract imports to get net exports, the ratio to GDP was 29 percent in Singapore, 20 percent in Malaysia, 7.6 percent in Thailand, and 4 percent in Indonesia, whereas in the Philippines, the ratio was a miniscule 0.46 percent! That is, while our total export sales as a percentage of GDP exceeded that of Indonesia, their exports had much higher domestic content (i.e., lower import content) than ours, and thus must have produced more jobs for Indonesians per dollar worth of exports.

What this all tells us is that compared to our Asean-5 neighbors, a much smaller part of our production has been affected by the drop in demand coming from foreigners hit by the financial meltdown. A bigger part of Philippine production is bought by Filipinos themselves, whether private households, government, or firms--and because Filipinos’ own spending continues to grow (we explain why further below), so does our economy.

Underfinanced

The other aspect of our underdevelopment that has been a blessing in disguise at this time is the underdevelopment of our financial capital markets. In more developed and vibrant economies, formal financial institutions and market mechanisms permeate the economy and propel most of the transactions in the so-called ‘real economy’ (i.e. the market for real goods and services) for large and small enterprises alike. And so, when the financial markets fail as has happened in the US and other large economies, the real economy grinds to a halt.

Not so in the Philippines. In the survey of Philippine enterprises done for the Global Entrepreneurship Monitor in 2006, one of the striking findings was that only one out of three (34 percent) Philippine enterprises make use of the banking system, whether for maintaining deposits or borrowing capital. In fact, only 5 percent of the surveyed firms sourced any financing from a bank, with the bulk preferring to use borrowings from friends and relatives (46 percent) and personal savings (41 percent) to run their business. With the bulk of Filipino productive enterprises having no dealings with the formal financial sector, it follows that problems in the latter will not have much impact on the former. And so, the financial sector may run into all sorts of difficulties with the Wall Street meltdown, but life will go on for the bulk of Philippine firms.

Local spending

We have been able to sell less of our products and services to foreigners through exports, but how could it be that Filipinos have still been spending more in the past year? There are three parts to this: household spending, investment spending, and government spending.

Aggregate household consumption spending continued to grow at a robust 4.5 percent because remittances continued to grow briskly at double-digit rates. This in itself has surprised many, as jobs of Filipinos abroad are widely expected to be imperiled by economic slowdown in their host countries. Growth in investment spending was boosted mainly by the 11.4-percent growth in construction (investment in equipment fell 7.4 percent, in fact), in turn fueled by brisk growth in real estate. We have explained before that as saving in financial instruments like stocks, trust accounts and mutual funds has become rather risky with the financial meltdown, people have rushed to put their money in tangibles, especially real property, thereby explaining the continuing double-digit growth in this industry. As for growth in government consumption, this was deliberate, with government bent on pump-priming the economy with its own spending stimulus.

The big question now is how long each such impetus for increased spending by Filipinos could last. Go figure.

venntro

February 9th, 2009, 09:57 AM

Bicam approves RP's 2009 Baselines Bill (http://http://www.gmanews.tv/story/147941/Bicam-approves-RPs-2009-Baselines-Bill)
02/09/2009 | 03:02 PM

MANILA, Philippines -The bicameral conference committee on Monday afternoon approved the 2009 Baselines Bill delineating the country's archipelagic baselines with the House of Representatives agreeing to treat Kalayaan islands and Scarborough Shoal as part of the "regime of islands."

Earlier in the day, Senator Rodolfo Biazon expressed optimism over the House' possible adoption of the Senate's version of the Baselines Bill.

In a telephone interview with GMANews.TV, Biazon - who is part of the bicameral conference committee reconciling the conflicting versions of the two chambers - said there appears to be a consensus among lawmakers to treat Kalayaan Island and Scarborough Shoal as "regime of islands."

"There seems to be a prevailing consensus to treat them as regime of islands but of course there are other things that should be tackled," Biazon said.

"There will always be heated discussion but I saw them (congressmen) nodding their heads when we presented the Senate position," he added.

The House version did not include the provision on the regime of islands and instead included Scarborough Shoal and Kalayaan islands within the country's baselines.

In the interview, Biazon said it is better for the Philippines to adopt the provisions established in the United Nations Convention on the Law of the Seas (Unclos) such as treating disputed islands as part of the regime of islands.

"We should be within the Unclos as we establish our baselines so that if there will be any dispute, it will be resolved by the UN," Biazon said.

The other senators in the bicameral meeting are Senate President Juan Ponce Enrile, Richard Gordon, Loren Legarda, Gregorio Honasan and Panfilo Lacson. - Amita Legaspi, GMANews.TV

venntro

February 9th, 2009, 10:00 AM

Palace denies getting back at Aquinos (http://http://www.gmanews.tv/story/147945/Palace-exec-denies-getting-back-at-Aquinos)
02/09/2009 | 03:33 PM

MANILA, Philippines - A Malacañang official on Monday defended the presidential pardon granted to one of the convicted soldiers in the double murder of former senator Benigno "Ninoy" Aquino Jr. and Rolando Galman in 1983, saying that it passed the normal and proper procedures just like other previous clemencies.

Deputy Presidential spokesperson Lorelei Fajardo said that Palace officials, however, understood the sentiments of the Aquino family who may have felt bad about the President's decision to release the two convicts.

Fajardo made the statement a day after Sen. Benigno "Noynoy" Aquino III branded the presidential pardon as a form of vengeance by the administration against his family.

The deputy presidential spokesperson denied that Malacañang was getting back at the Aquinos by granting pardon to the two convicts. The Aquino family has joined groups calling for President Arroyo’s resignation.

Fajardo insisted that the pardon granted to Pablo Martinez last week underwent a long process and the board gave no special treatment to his requests.

Martinez, after more than 20 years in prison, walked free on Feb. 5. Martinez was one of the 14 convicts who were sentenced to double life sentences for the Aquino-Galman double murder and sought executive clemency from President Arroyo in August 2008.

Public Attorney's Office chief Persida Acosta, who assisted the convicted soldiers, said they were already qualified for presidential pardon after having served closed to 24 years in prison. - GMANews.TV

jpdm

February 9th, 2009, 12:41 PM

^^I agree with JPDM and all forumers advocating and promoting for BUY PINOY!!
as a sure way of helping our economy not only survive but also surpass this current global crisis.

But I will also go a little further, LET US NOT BUY FROM UKAY-UKAY OR WAG-WAGAN!

:horse:

Definitely Agree!

I hate this Ukay-Ukay!!:bash::bash:

This business is destroying our local textile and garment industry!!

Ony the smugglers are earning from it!!

Sunugin lahat ang mga ukay-Ukay (except those which sells locally made garments/clothes!!!:bash:

jpdm

February 9th, 2009, 04:12 PM

hmmmm........

Philippine Star

EDITORIAL-

Obama's stalker

Updated February 09, 2009 12:00 AM

http://http://img13.imageshack.us/img13/5879/startoonfe3.gif

President Arroyo had a wide grin as she chatted with new US Secretary of State Hillary Clinton. But the former US first lady, a celebrity in her own right, was no Barack Obama, the US counterpart of Gloria Macapagal-Arroyo.

In our country, no head of state or government drops by without a talk with the Philippine president. Not so in the United States, where many world leaders have addressed the United Nations in New York or visited other parts of the country without ever meeting their American counterpart. And so Obama attended the National Prayer Breakfast last week in Washington, seemingly blissfully unaware that at a nearby table sat the Philippine president. Obama greeted the keynote speaker, former British prime minister Tony Blair, delivered his speech and left.

President Arroyo, who was seated beside US House Speaker Nancy Pelosi, later chatted with the lawmakers who pushed the inclusion of the compensation for Filipino war veterans in Obama’s multibillion-dollar stimulus fund – a move that has come under fire from certain quarters in the US.

Was that trip worth it? Certainly Filipinos join Americans in praying for swift recovery from the worst economic crisis to hit the United States since the Great Depression. But in these difficult times, did Filipino taxpayers have to be burdened with the first-class globetrotting by the President and her retinue?

Obama, grappling with the crisis, skipped the World Economic Forum in Davos. Not so President Arroyo, who went on to Italy from Switzerland, and then to Bahrain. Malacañang originally announced that the President was rushing to Washington from Bahrain because there was a chance that she could chat with Obama at the prayer breakfast. She emerged from the gathering without so much as a wave of acknowledgment from Obama, much less that coveted photo op.

This latest blow came on the heels of several attempts by President Arroyo to talk with Obama by phone – first when he was still a candidate, and then several times after his victory. She also tried to meet with him in the US, when he was still a candidate and again shortly after he won. When he went to Illinois after his election, she proceeded there ostensibly to meet with the Filipino community.

Perhaps President Arroyo could pass on the blame to whoever raised her hopes that a chat with Obama, and even a photo op, could be possible in Washington. But in the end, if people are now referring to her as a stalker of Obama, she has no one but herself to blame.

le Reine

February 9th, 2009, 05:13 PM

^^But this ukay-ukay system and the rest of the underground economy also helps the poor. I'm not saying it is good per se but I just want to know if there's any alternative to that?

According to Cielito Habito:

http://business.inquirer.net/money/columns/view/20090111-182733/Are-Filipinos-immune-to-the-crisis
Last year, the economy had slowed down from the record 7.2-percent GDP growth in 2007 to what is expected to be just around 4 percent for the full year 2008 (the fourth quarter data are due end of this month yet). And yet, as I have written recently (A puzzling economy, 12-29-08), employment generation was better last year even as the economy was slower. We observed that the statistics indicated the new jobs to have come mostly from informal sector (underground economy) work, particularly in selling and vending, and what one reader describes as looting and scavenging. But unrewarding, unpleasant or unstable as they may be, they are jobs just the same, and will not change much with the world economy taking a turn for the worse.

http://business.inquirer.net/money/columns/view/20081228-180364/A-puzzling-economy
I examined the available tables from the National Statistics Office (NSO) website, made some calculations, and found the following: Of the surprising 699,000 new services sector jobs mentioned above, more than half were in trade. And since I am not seeing an unusual proliferation of retail stores and shopping malls in the past 12 months, I surmise that what this means is that large numbers of Filipinos have taken to the usual informal sector selling/vending activities--"nangangalakal," as squatters near our neighborhood describe the common occupation in their area.

And not everything there is smuggled. Some were locally made too. Although I admit that these kind of jobs aren't what we all aspire but heck, it is job nonetheless and it still helps in keeping this country's economy afloat.

I really hope there would be a change in attitude among Filipinos esp with regards to colonial mentality. Remember, the things bought and sold in the underground market are usually the imitations and pirated products either imported from abroad or produced locally.

Of course, most of the blame still lies in the government. I believe we lack these:
1. Poor, corrupt and inefficient Bureau of Customs
2. Lack of incentives and government support for locally made products not only for domestic consumption but most esp for export. (the overvalued peso doesn't help much or to put it simply, there's no clear policy with regards to foreign exchange)
3. Education is not aimed at promoting national pride, hence colonial mentality still pervades among the youth.
4. Cost of production still high with electricity being the major problem.

wala lang, just my two cents. I am not an economist anyway.

jpdm

February 9th, 2009, 05:50 PM

^^But this ukay-ukay system and the rest of the underground economy also helps the poor. I'm not saying it is good per se but I just want to know if there's any alternative to that?

Indeed, there is.

The ukay-ukay system just like those running coffins second hand smuggled imported vehicles from freeports are robbing Pinoys of legit jobs and incomes.

Only smugglers end up as winners and a big segment of our economy suffers.

Now,

there are lots of textiles and garments made in the Philippines.

Pinoys can even buy from local sastre or mananahi to get brand new hand made bargains.

In fairness to Sen. Legarda, she endorses philippine made clothes from philippine fabric.

She also endorses Liliw laguna made shoes etc.

We need to cure this dreaded disease called colonial mentality.:bash:

Down with all second hand imported and smuggled commodities from other countries!:bash:

Buy Pinoy!:bash:

jpdm

February 9th, 2009, 05:55 PM

hmmmm...

As I See It
Pathetic—Arroyo chasing after Obama

By Neal Cruz
Philippine Daily Inquirer
First Posted 02:03:00 02/09/2009

PATHETIC. That’s President Macapagal-Arroyo chasing US President Barack Obama like a lovesick woman chasing a man who doesn’t want her. GMA obviously wants a photo-op with Obama to show off to her countrymen back home and boast that she has the support of the American president. She cut a visit to the Middle East to make an unscheduled trip to the United States to attend a prayer breakfast where Obama was the guest speaker, thinking that Obama would speak to her. (Our Department of Foreign Affairs probably broke protocol to wangle an invitation for her. Invitations are sent many months in advance. Sen. Chiz Escudero got his in July last year.)

But can’t she take a hint? Obama doesn’t want to be seen with her. He already rebuffed her three times. The fourth time was when he left the prayer meeting so quickly to avoid talking to GMA. Isn’t that clear enough? Who would want to be seen with a lame duck despised by her own countrymen and accused of so much wrongdoing, including corruption and dishonesty?

Pathetic. That’s Executive Secretary Eduardo Ermita, in trying to avoid being revamped out of the Cabinet, telling the Malacañang press that Obama would learn a lot from GMA. To which many Filipinos countered: No doubt, but all the wrong and shameful things.

Had GMA succeeded in having a photo-op with Obama, her mouthpieces in Malacañang would probably exaggerate the meeting by saying that GMA taught Obama how to successfully run a government. (The Malacañang press release on that consuelo de bobo photograph with Secretary of State Hillary Clinton was probably exaggerated, too.) No wonder Obama doesn’t want to be photographed with GMA.

Pathetic. That’s former Press Secretary Jesus Dureza praying before a Malacañang Cabinet meeting that God extend the term of his President—also probably so he would not be revamped out of the Cabinet. But he was reorganized out, nevertheless. And faster than usual. Because he was very obviously making sipsip. And GMA, thick-skinned as she may be, thought that was too much. Her policy seems to be: Make sipsip if you want, but don’t make it too obvious. Diyahe eh.

In fact, the whole Arroyo administration has been pathetic since it started. The Philippines got from bad to worse since she assumed the presidency under questionable circumstances. GMA probably had the most number of press secretaries of all Filipino presidents, but all of them were not able to lie fast enough to make her look good.

The moral of the whole story is this: Don’t pretend to be what you are not. Accept what you are but try to be better.

anakngpasig

February 9th, 2009, 05:57 PM

http://business.inquirer.net/money/columns/view/20081228-180364/A-puzzling-economy
I examined the available tables from the National Statistics Office (NSO) website, made some calculations, and found the following: Of the surprising 699,000 new services sector jobs mentioned above, more than half were in trade. And since I am not seeing an unusual proliferation of retail stores and shopping malls in the past 12 months, I surmise that what this means is that large numbers of Filipinos have taken to the usual informal sector selling/vending activities--"nangangalakal," as squatters near our neighborhood describe the common occupation in their area.

how nice of NSO
to include them in
their statistics.

so if i start peddling
cigarettes on the streets,
they'd be claiming 1 services
sector job created for 2009.
how would they know that?

le Reine

February 9th, 2009, 06:04 PM

^^Because what the NSO does (and I think the CB does the same) is actually just a survey. They can't do one-on-one interviews annually. That would be totally expensive and inefficient. That's why it is called labor survey.

Here's a sample: http://www.census.gov.ph/data/pressrelease/2008/lf0802tx.html

anakngpasig

February 9th, 2009, 06:41 PM

^^ i see.

thanks!

:cheers:

i've been
wondering about that
for a long time because
i know there are many
out there not employed
formally - not paying taxes or
making contributions to
SSS, Pag-ibig, etc. :D

the 669,000 jobs shouldn't
be accurate then if that's
the case. NSO sure
knows how to make up
numbers :sleepy:

le Reine

February 9th, 2009, 07:00 PM

^^I won't call it "made-up" numbers. Those are still considered jobs no matter how "unpleasant" it may be. Remember, what the NSO does is simply ask questions, gather data and analyze it. They have these methodologies and concepts that they use to identify employment w/c is basically used by all countries around the world c/o ILO.

These activities still contribute a lot to the economy and give income to many people, and to poor people most esp. Just imagine if those things didn't exist. Our poverty level might have been much much worse.

DoggMann

February 9th, 2009, 07:10 PM

^^
... come on you guys!

... its not gma... it must be the travelocity gnome!

http://knittymuggins.files.wordpress.com/2007/04/travelocity-gnome.jpg
:lol:

venntro

February 10th, 2009, 01:54 AM

DOLE: Business, govt commit to preserve, create jobs (http://http://www.gmanews.tv/story/148040/DOLE-Business-govt-commit-to-preserve-create-jobs)
02/10/2009 | 06:24 AM

MANILA, Philippines - Government and the business sector signed a joint communiqué Monday to formalize their commitment to preserve and create jobs amid a global economic meltdown.

Labor secretary Marianito Roque said this after the social partners and stakeholders signed the communiqué at a multi-sectoral summit in Malacañang.

In an article on the DOLE website, Roque said the signatories represented business, academe, church, non-government and government organizations.

He hailed the social partners for agreeing to support efforts aimed at ensuring an environment that would promote business growth as this would, in turn, save and generate jobs as well provide safety nets to Filipino workers affected by the crisis.

In this communiqué, he said the partners specified their support to efforts that would reduce the cost of doing business by, among others, automation of import/export processing and payment, reduction in the costs of business licenses and permits, and relaxation of criteria for extension of income tax holiday.

The social partners also called for policies that would improve marketing of products especially in the herbal and health and wellness industry and other sectors which are expected to grow despite the crisis.

President Arroyo initiated the summit, "Joining Hands Against the Global Crisis," to strengthen the country's preparedness to cope with the economic downturn.

The Departments of Labor and Employment (DOLE) and Trade and Industry (DTI) jointly organized the summit held at the Heroes Hall, Malacañang Palace.

Roque said the multi-sectoral summit was part of the government's efforts to preserve and generate jobs and provide safety nets to affected workers and industries.

He said the social partners believed that the current crisis could still provide new opportunities for investment areas that would be necessary in employment preservation and generation.

Roque said the government is ready to provide assistance on research and development to improve marketing of local products adding the effort would certainly boost employment generation.

He said the social partners likewise sought policies that would curb smuggling and at the same time ease access to credit and provide tax breaks and incentives to business particularly industries that have been affected adversely by the global financial crisis.

Also, he said providing tax breaks to distressed firms would help industry preserve jobs while at the same time providing these firms the needed capital for them to surmount the difficulties brought about by the crisis, thereby boosting efforts to sustain demand and the economy as a whole. - GMANews.TV

venntro

February 10th, 2009, 01:58 AM

Over 1.3M jobs to be created (http://http://www.abs-cbnnews.com/nation/02/09/09/over-13m-jobs-be-created)
BusinessWorld | 02/10/2009 1:18 AM

Labor summit counts pledges, notes P25-B outlay to protect workers

Business and labor groups, the academe and the government yesterday pushed for the creation of over 1.3 million jobs within the year and the allocation of around P25 billion to support employment as the country struggles to cope with the global economic crisis.

These initiatives were detailed in an eight-page communiqué signed by 138 participants who attended a government-sponsored labor summit in Malacañang yesterday.

The employment target involves both domestic and overseas positions. These include 824,555 jobs from the government’s emergency employment program, 80,000 to 100,000 committed by the Business Processing Association of the Philippines, and 400,000 jobs abroad based on the Philippine Overseas Employment Administration’s registered and active orders.

Summit participants also supported the allocation of at least 1.5% of the P1.415-trillion 2009 budget - about P21.23 billion - for the temporary hiring of displaced workers, as well as the setting aside of P3.9 billion to finance livelihood and microfinance projects.

The multisectoral summit also resolved to reduce the cost of doing business by, among others:

bringing down the cost of power;
faster import permit transactions for non-Philippine Economic Zone Authority firms;
relaxation of criteria for the extension of income tax holidays;
suspension of tariff reductions for five years;
fuel and transport subsidies; and
lowering costs of business licenses and permits.
Other recommendations include improving the marketing of products through tax incentives; facilitating the training and re-tooling of affected workers; and providing access to health services for affected workers and their dependents.

Philippine Chamber of Commerce and Industry chairman emeritus Donald G. Dee said projects would immediately be implemented. The P3.9-billion livelihood and microfinance fund will be sourced from government coffers, he added.

"The business community is very supportive of these initiatives. If we can make 1.3 million jobs, that will cover those entering the job pool every year as well as those displaced. There’s always more that we could do but realistically, this is what we can do right now," he said.

Program implementation will be monitored through regular consultative meetings, Mr. Dee said, adding that a quarterly report will be submitted to President Gloria Macapagal-Arroyo.

Jesus L. Arranza, president of the Federation of Philippine Industries (FPI), said programs stated in the communiqué were "doable".

Industries officials particularly noted calls to intensify efforts to curb smuggling as well as stronger enforcement of Executive Order 156 banning the importation of second-hand vehicles.

But Philippine Exporters Confederation, Inc. and Employers Confederation of the Philippines President Sergio R. Ortiz-Luis, Jr. said the communiqué lacked initiatives to help the export industry, particularly a requested P1-billion export development fund.

"I didn’t see that. We requested that to help companies so those operating will not close shop," he said.

In addition, he stressed some of the programs were not "immediately implementable" such as the anti-smuggling and tariff reduction initiatives. Mr. Ortiz-Luis said these issues had been raised time and again in various manifestos and did not necessarily address the issue of employment.

"Some are doable but they should have focused on immediately implementable programs," he said.

Stakeholders also called on Congress to provide support by passing a pending stimulus package bill. The FPI’s Mr. Arranza said a copy of the communiqué would be sent to legislators.

Earlier in the day, Mrs. Arroyo announced a package of programs aimed at generating more jobs for retrenched workers as well as helping companies cut operating costs.

In her opening remarks, the President said the government had responded to concerns raised during a tripartite labor meeting early this year.

The responses, she said, include the provision of "green-collar jobs" to Filipinos under a P2-billion reforestation fund as well as mobilizing nurses in the provinces under the Nurses Assigned to Rural Areas (NARS) program.

Budget Secretary Rolando T. Andaya, Jr. said P500 million would be allocated to the NARS initiative.

Mrs. Arroyo also announced that the Department of Trade and Industry had directed the Philippine Economic Zone Authority to implement fuel subsidies for firms operating in economic zones as well as measures to lower the cost of doing business.

Other proposals include condoning penalties and surcharges for Social Security System loans incurred by affected workers, a P1-billion standby fund for displaced seafarers and overseas Filipino workers, training programs, and working capital through loan facilities.

Mrs. Arroyo said the imposition of a moratorium on wages increases would be discussed during reviews to be made from July to August.

venntro

February 10th, 2009, 03:07 AM

Rice prices to drop by mid-March, NFA says (http://http://www.gmanews.tv/story/148050/Rice-prices-to-drop-by-mid-March-NFA-says)
02/10/2009 | 07:48 AM

MANILA, Philippines - Amid government assurances rice prices may go down by mid-March, buyers are queuing up for rice in National Food Authority (NFA) stores in Central Luzon, a radio report said Tuesday.

Radio dzRH reported that many of the buyers said the high prices of commercial rice, which went up to P30 or more per kilo, drove them to line up for rice at NFA stores.

The report said queues were reported in Nueva Ecija and Aurora provinces, where consumers also lined up at parish centers and "Tindahan Natin" centers of the social welfare department for subsidized rice.

For its part, the regional NFA office instructed its managers to monitor rice supplies closely.

On Monday, agriculture secretary Arthur Yap said the high price of rice was due to the high price of fertilizer and other inputs in the last planting season.

Meanwhile, NFA spokesman Rex Estoperez said in a radio interview Tuesday they expect rice prices to start going down in mid-March.

"Expect natin hanggang mid-March bababa ang presyo dahil meron tayong summer harvest [We expect prices to go down mid-March because of our summer harvest]," he said in an interview on dzXL radio.

He said the NFA is ready to intensify its distribution if the prices do not go down by mid-March.

On the other hand, Estoperez said the NFA has already initially imported 500,000 metric tons of rice for the lean months from July to September.

If we need to, we will bring it out to stabilize prices in the market, he said. - GMANews.TV

venntro

February 10th, 2009, 04:24 AM

December exports down 40.4% (http://http://www.abs-cbnnews.com/business/02/10/09/rps-dec-exports-down-404-yr)
Reuters | 02/10/2009 10:06 AM

MANILA - Philippine exports plunged 40.4 percent in December after falling a revised 11.4 percent in November, the government's statistics office said on Tuesday.

Shipments of electronics products, the country's main export, contracted 47.6 percent in December from the year ago period after falling 17.2 percent year-on-year in November.

With the December decline, total exports in 2008 fell 2.86 percent from 2007, reflecting the effects of the global financial crisis.

The government had earlier revised its 2008 exports target to growth of 2-4 percent from 5 percent, following from a rise of 6 percent in 2007.

Besides electronics, which are largely assembled from imported parts, other key Philippine exports include garments and accessories, vehicle parts, coconut oil, tropical fruit and wood furniture.

venntro

February 10th, 2009, 04:28 AM

RP's electronics exports may bottom out in Q1 (http://http://www.abs-cbnnews.com/business/02/10/09/rps-electronics-exports-may-bottom-out-q1)
Reuters | 02/10/2009 10:08 AM

MANILA - Exports of Philippine electronics are likely to bottom out in the first quarter after posting its steepest drop on record in December, the head of an industry group said on Tuesday.

Customer inventories are beginning to dry up such that some demand may start to come back in the second quarter, Arthur Young, chairman of the Semiconductor and Electronics Industries in the Philippines Inc, told Reuters.

"I think Q1 will be bottom and I think you'll start seeing slightly better numbers by Q2," Young said.

"We think that you will start seeing a pick up in orders in quarter two and in quarter three, that is what we are anticipating," he said, adding customers were close to depleting their inventory following drops in demand for personal computers and mobile phones which use memory chips.

Philippine exports plunged 40.4 percent in December, the steepest fall in over two decades, with shipments of key electronics products contracting 47.6 percent in December from a year ago.

venntro

February 10th, 2009, 08:33 AM

Lower exports may lead to revision of RP growth targets (http://http://www.gmanews.tv/story/148085/Lower-exports-may-lead-to-revision-of-RP-growth-targets)
02/10/2009 | 12:53 PM

MANILA, Philippines- The huge fall in Philippine exports reported in December may prompt economic managers to revise growth assumptions for this year.

In a telephone interview, Director Dennis Arroyo of the national planning and policy of the National Economic and Development Authority conceded that “it’s always a possibility" to adjust economic assumptions.

The National Statistics Office reported that exports in December contracted by 40.4 percent as the Philippines largest markets purchased less goods amid the global recession.

Presently the government’s target of 3.7-percent to 4.7-percent gross domestic product growth for this year is premised, among others, on a one percent to three-percent improvement in exports.

The International Monetary Fund, however, said the Philippine economy will only grow by 2.25 percent this year while international credit-watcher Standard & Poor gave a forecast of anywhere between 2.2 percent and 2.7 percent. They both cited the Philippines’ exposure to global drivers like exports as reason for their dim expectations.

Despite the dismal December exports, Arroyo said that it was highly unlikely that for 2009, exports will decline by 30 percent.

Arroyo explained that in times of uncertainty, electronics were the first product that consumers cross out from their shopping list.

Electronic products, the Philippines’ top item, posted a decline of 47.6 percent in December.

Economist Vic Abola of the University of the Asia and the Pacific agreed with Arroyo, saying export figures are expected to improve for January.

“It’s still negative, but I don’t think it will be as bad as December’s," he said.

Abola noted that with long holidays in December, production were lower by exports firms.

“There was also lesser value because of lower prices of petroleum products," he said. CMA, GMANews.TV

RonnieR

February 10th, 2009, 10:24 AM

02/09/2009 | 05:34 PM

http://images.gmanews.tv/webpics/2009/090209_3.jpg
MANILA, Philippines - Philippine vehicle sales remained flat in January this year as consumers became more finicky with their purchases, the country’s carmakers association said.

Vehicles sold for the first month this year reached 8,791 units, 0.2 percent lower than the same period in 2008 as consumers considered factors including price, fuel efficiency, and value for money, the Chamber of Automotive Manufacturers of the Philippines (Campi) said.

Sales of passenger cars rose 14.2 percent to 3,384 units in January, beating other markets such as the US which saw purchases plunging 37 percent during the period.

This year’s new car models are expected to bring about higher sales, Campi said.

Meanwhile, commercial vehicles raked in more than half of total sales for the period, or an estimated 62 percent of total volumes, comprising 5,407 units sold.

However, sales figures for this segment were still 7.5 percent lower this month compared to the same period last year.

As with sales of the passenger car segment, commercial vehicles are also expected to pick up as soon as companies begin to undertake fleet purchases and stocks return to normal levels.

Demand for dual purpose vehicles such as vans, pick-up trucks, and all-purpose utility vehicles will stabilize as well.

Sales of AUVs for the first month this year were 24.8 percent lower compared to the same period last year as low stocks and rising prices discouraged purchases.

However, sales in the light commercial vehicle segment – which includes pickups, vans, and full-size SUVs – climbed this year, 3.1 percent higher than last year. Purchases were helped by new models and the inherent advantage of duel purpose utility vehicles.

Similarly, light truck purchases increased in January, 27.4 percent higher than January last year.

Overall, Campi remained optimistic of sustaining sales in the coming months.

“Sales are expected to be sustained in the coming months although an increase in prices may be seen should the yen continue to remain strong against the greenback," Campi president Elizabeth Lee said.

“Thankfully, inflation rates are much lower compared to previous months and the financing environment remains stable allowing consumers to take out loans to finance their needs," she added. - GMANews.TV

amigo32

February 10th, 2009, 12:43 PM

venntro

February 11th, 2009, 01:44 AM

RP expected to outperform Asian neighbors (http://http://www.philstar.com/Article.aspx?articleId=439111&publicationSubCategoryId=66)
By Des Ferriols Updated February 11, 2009 12:00 AM

MANILA, Philippines - Previously branded as the sick man of Asia, Moody’s Ratings said yesterday that the Philippines would outperform many of its neighbors this year, with growth projected at 3.3 percent.

Moody’s said that Southeast Asia would see a reversal of roles this year and the Philippines would lead growth despite the anticipated slowdown in economic expansion.

Moody’s assessment came in the wake of the latest warnings from the International Monetary Fund (IMF) which admitted for the first time that the world’s most developed economies have slipped into depression.

“This year will probably be the most interesting for Southeast Asia since the Asian financial crisis,” said Moody’s associate economist Nikhilesh Bhattacharyya. “We expect tradition to be turned on its head and ASEAN members to undergo a role reversal,” he added.

Bhattacharyya said Singapore, usually the most stable in the region, would be the worst hit amongst the ASEAN trading bloc, together with Malaysia and the big falls in output and milder rises in unemployment.

“Indonesia and the Philippines, traditionally less stable, will slow, but chances of recession are low,” said Bhattacharyya.

According to Bhattacharyya, the Philippines specifically, would outperform other economies in the region although growth would be slower than 2008. Consumer spending would be one of the strongest drivers.

Bhattacharyya said the Philippines has been branded the sick man of Asia because of its relatively slow growth in recent years. But this time around, the country would keep within its growth range despite the slowdown that would result from the global recession.

Bhattacharyya said Singapore is expected to suffer the largest swing in its economy, with a 4.4 percent contraction expected in 2009 compared with a 1.2 percent expansion in 2008.

On the other hand, Bhattacharyya said that Indonesia is expected to hold an uneventful election after a long period under a “dictatorship where political freedom was unthinkable over a decade ago.”

Bhattacharyya said Indonesia is expected to grow 3.9 percent and said this is “not too bad” considering the state of the global economy.

However, Bhattacharyya said nearly all other economies in the group would experience slow economic growth that won’t keep pace with labor force growth, leading to higher unemployment

venntro

February 11th, 2009, 01:52 AM

Foreign direct investments surges to $232 million in November (http://http://www.philstar.com/Article.aspx?articleId=439116&publicationSubCategoryId=66)
By Des Ferriols Updated February 11, 2009 12:00 AM

MANILA, Philippines - Foreign direct investments surged by 68.1 percent to $232 million in November last year, a rare increase fueled largely by huge capital inflows into the mining sector.

The Bangko Sentral ng Pilipinas (BSP) said the November surge brought the 11-month total to $1.65 billion — less than half the inflows recorded in 2007.

Data from the BSP showed that foreign direct investments in November 2007 amounted to only $138 million.

The BSP said all FDI components posted net inflows in November. In particular, data indicated a net inflow of equity capital amounting to $160 million.

The BSP said net inflow of equity capital expanded year-on-year by almost fourfold with the equity capital infusion coming largely from Hong Kong investors, and represented mainly by purchase of stocks of a local mining company.

The BSP said the “other capital” account reversed to a net inflow of $52 million from a net outflow of $20 million in November 2007, because of repayment by foreign affiliates abroad of trade credits from residents.

Reinvested earnings also continued to post a net inflow, although the BSP said inflows were lower compared to the previous year as a result of lower profits realized by local companies.

But the BSP said the net inflows for January-November 2008 were 16.4 percent higher than the inflows recorded in the first 10 months.

On the other hand, net inflow of equity capital during the 11-month period amounted to $1 billion, nearly 50 percent lower than the 2007 level.

The BSP said the U.S., Japan, Singapore, South Korea, Germany, Malaysia, Taiwan, Hong Kong, United Kingdom, and the Netherlands were the major sources of equity capital flows.

The bulk of the inflows, according to the BSP, were channeled to the manufacturing sector, mainly into shipbuilding and repair, auto electronics parts and components and the manufacture of paper, cigarette and other tobacco products.

The BSP said there were also inflows into services, particularly recreational and cultural businesses. Inflows also went into mining and construction projects such as hotel/resort/water spa development, power plant facility, global gateway and logistics hub.

Investments were also recorded going into utilities, real estate, trade and commerce, and financial institutions.

The “other capital” account and reinvested earnings also registered net inflows amounting to $238 million and $394 million respectively. The items in these accounts consisted mainly of intercompany borrowing and lending between foreign direct investors and their subsidiaries or affiliates in the Philippines.

These levels, however, were 38.2 percent and 13.2 percent lower from year-ago levels.

The BSP explained that the decline in inter-company borrowing and lending was traced to lower loan availments by Philippine subsidiaries from their mother companies given the weak outlook in global demand.

venntro

February 11th, 2009, 02:32 AM

Moody’s unit sees GDP growth at 3.3% (http://http://business.inquirer.net/money/breakingnews/view/20090211-188595/Moodys-unit-sees-GDP-growth-at-33)

By Michelle Remo
Philippine Daily Inquirer
First Posted 01:15:00 02/11/2009

The Philippine economy will likely grow 3.3 percent this year and beat most of its neighbors in Southeast Asia, according to Moody’s Economy.com, the economic research and analysis arm of credit-rating firm Moody’s Investors Service.

Such a growth would be a slowdown from last year’s but would be a decent rate, given the far worse impact of the global crisis on other economies, Moody’s Economy.com said.

The economy as measured by the gross domestic product (GDP) grew 4.6 percent last year after a three-decade-high rate of 7.1 percent in 2007. The government is aiming for a GDP growth of 3.7-4.7 percent this year.

Moody’s Economy.com, echoing views of other experts, said the slowdown in emerging economies was a given because of their integration with advanced countries that are in recession, but the Philippines economy was far from suffering a contraction.

“The Philippines, branded the sick man of Asia because of its relatively slow growth in recent years, will outperform many of its neighbors ... in 2009,” it said in its latest assessment of the Philippines.

The Moody’s Economy.com growth forecast for the Philippines is higher than those of other experts and institutions, including the International Monetary Fund, which expects a Philippine growth of 2.25 percent.

It said this year’s story for Southeast Asia would be different from that of past years, when the Philippines and Indonesia lagged behind others in the region, with Singapore at the lead.

It said Singapore, a regional financial center, would likely be the hardest hit by the global crisis in Southeast Asia this year. It predicted Singapore would fall into recession, as the collapse of many of its financial institutions would spill over to the real sector. Edited by INQUIRER.net

venntro

February 11th, 2009, 02:33 AM

BSP expects ’09 current account surplus (http://http://business.inquirer.net/money/breakingnews/view/20090211-188591/BSP-expects-09-current-account-surplus)

By Michelle Remo
Philippine Daily Inquirer
First Posted 01:11:00 02/11/2009

The central bank, Bangko Sentral ng Pilipinas (BSP), said the country would still likely register a surplus in its current account this year despite slowing growth in foreign exchange remittances from overseas Filipinos and shrinking export earnings.

“I believe we will continue to etch a current account surplus in 2009,” BSP Governor Amando Tetangco Jr. said in an email to the Philippine Daily Inquirer.

Some economists have forecast a current account deficit this year because of weakening exports and job cuts in advanced economies.

According to the latest BSP data, the current account showed a surplus of $1.168 billion at the end of the first quarter.

Tetangco said that according to information from the Philippine Overseas Employment Administration, Filipinos being deployed for work abroad outnumbered those laid off and returning to the Philippines.

“Further, deployment in the medical-related fields, which are broadly seen as relatively recession-proof, is expected to remain strong,” he added.

BSP Deputy Governor Diwa Guinigundo said the labor department had lined up new markets for Filipino nurses and other healthcare personnel.

“It’s difficult to think that the double digit growth in OFW [overseas Filipino worker] deployment in 2008 would just dissipate in terms of the corresponding remittances in 2009. OFWs normally have two-to-three-year contracts,” Guinigundo added.

Government data showed 1.22 million Filipino workers were deployed from January to November, up 24.4 percent from 982,286 in the same period in 2007.

Income from exports could be dampened by waning global demand, Tetangco said, but the impact on the current account could be offset by a corresponding slowdown in imports.

The BSP has said it expects the gross international reserves to end the year at $37.0-$37.5 billion. Edited by INQUIRER.net

DoggMann

February 11th, 2009, 08:04 AM

US Senate Approves Stimulus Plan
me7k6_kdnyk

"Mugabe Economics..." ~ Marc Farber
vAVaND186Xo

“[Perhaps this] borrowing to create cash flow ... The personal 'savings' rate has fallen to a new all time record low of minus 6%. Rather than curtailing consumption, Americans have merely responded to higher gas prices by borrowing more money. Therefore, the immediate damage isn’t reduced consumption by increased debt. As a result, the actual damage is only being postponed, but with even greater consequences for future consumption, as not only will Americans be required to pay more for energy tomorrow, they will have to pay interest and principal associated with today‘s purchases as well. What America has succeeded in creating is not an economy impervious to 'shocks,' but merely one which enables their consequences to be postponed to a later date. Unfortunately, that date may have finally arrived.”
~ Peter Schiff

venntro

February 11th, 2009, 08:33 AM

Arroyo leads cash transfer to poor (http://http://newsinfo.inquirer.net/breakingnews/nation/view/20090211-188702/Arroyo-leads-cash-transfer-to-poor)
By Joel Guinto
INQUIRER.net
First Posted 13:52:00 02/11/2009

MANILA, Philippines -- President Gloria Macapagal-Arroyo, in a good mood on Wednesday, showcased the government’s conditional cash transfer program for the poor in Pasay City.

Arroyo exchanged light banter with three women, among the recipients of the Pantawid sa Pamilyang Pilipino Program (4Ps, Relief for the Filipino Family), as they withdrew money from a Land Bank of the Philippines automated teller machine.

Arroyo’s mood did not falter even when the first recipient, 35-year-old Alma Pamplona, took a while to work the ATM machine.

“Actually, sabi ni Alma, nagagawa niya yan sa Taft pero ninerbiyos lang siya [Actually, Alma said she managed to withdraw money from the ATM at the Taft branch but she’s just nervous],” Arroyo said.

Pamplona is among the close to 400,000 families who receive as much as P9,000 a year – P6,000 for health expenses and P1,000 for the tuition of each child, for a maximum of three children – for as long as their kids stay in school.

Social Welfare Secretary Esperanza Cabral said the government hoped to expand the base of the 4Ps program to as many as 699,000 families by the end of 2009, from 379,000 at the end of 2008.

“So, demonstrate,” a giggling Arroyo told the second recipient, Kristeta Tiocson, as she was about to withdraw money from the ATM.

Arroyo noticed that the third recipient, Ruth Bermudes, was pregnant so she told her not to forget to undergo pre-natal screening.

venntro

February 11th, 2009, 08:34 AM

Maxxclip

February 11th, 2009, 09:09 AM

^^
Spoon-feeding Program

Sa panibagong anomalya na nagdawit sa asawa nya, muli niyang binuhay ang "Pampaganda at Pampabango Program" ng gobyerno.

Kapag nasanay ang mga yan, baka hanap-hanapin ng karamihan.

Bakit hindi na lang nila ibigay sa tunay na nagpakahirap at nagpakapawis ang kitang buwis ng pamahalaan?

We do not want you to become lazy, but to imitate those who through faith and patience inherit what has been promised.

venntro

February 12th, 2009, 02:02 AM

National Government seeks new revenue sources (http://http://www.philstar.com/Article.aspx?articleId=439421&publicationSubCategoryId=66)
By Iris C. Gonzales Updated February 12, 2009 12:00 AM

MANILA, Philippines - The National Government (NG) is looking for additional sources of revenues to keep the budget deficit ceiling at P102 billion this year amid various forecasts from analysts and credit rating agencies that the yearend budget gap could swell to as much as P200 billion.

Finance Undersecretary Gil Beltran said that so far, the government has not yet changed the target and is still optimistic of containing the budget deficit at P102 billion this year.

“We will look at ways to meet the target,” Beltran said.

The DOF is looking at new non-tax and tax measures and better administration of existing tax laws to boost revenues, Beltran said.

Among the non-tax revenues the DOF is looking at is to prompt government-owned and controlled corporations (GOCCs) to remit more dividends, to reduce the subsidies given to these corporations and to reduce unnecessary expenses.

Beltran said the government would also try to look for state-owned assets that may be put on the auction block. This would be on top of the assets the government has scheduled to privatize this year, particularly the 120-hectare Food Terminals Inc. (FTI) property in Taguig and the government’s 40 percent stake in Philippine National Oil Co. (PNOC)-Exploration Corp.

The government has targeted to raise P20 billion from privatization this year.

For tax-revenues, Beltran said the direction is to improve the tax administration of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

He said the department is also pushing for the approval of three tax measures by the 14th Congress. These are the measures seeking to rationalize the country’s fiscal incentives, to raise taxes on alcohol and cigarettes and to simplify the net income taxation scheme in the country.

Budget Secretary Rolando Andaya had said that the budget deficit could hit P114 billion this year because of the government’s need to fund the P11.2-billion-supplemental budget for the Commission on Elections’ poll automation project.

Socioeconomic Planning Secretary Ralph Recto, for his part, said the government’s budget deficit could reach P160 billion this year because of the need to spend to pump-prime the economy in the wake of the financial crisis.

venntro

February 12th, 2009, 02:03 AM

RP outside scope of global recession - GMA (http://http://www.philstar.com/Article.aspx?articleId=439420&publicationSubCategoryId=66)
By Ding Cervantes Updated February 12, 2009 12:00 AM

ANGELES CITY, Philippines — President Arroyo said yesterday she is convinced that the country, despite the exports slowdown and rising layoffs, remains outside the scope of the global recession.

In a short talk after a concelebrated Mass yesterday morning at Our Lady of Lourdes Church here, the President expressed “hope” that the Philippines would not be seriously affected by the recession now seriously affecting other countries.

The President arrived here upon the invitation of Fr. Jun Mercado, parish priest of Barangay Lourdes Sur which had its fiesta yesterday to commemorate the feast of Our Lady of Lourdes. Mercado said the Mass yesterday was also to mark the “World Day of the Sick” which was instituted by Pope John Paul II in 1992.

“Let’s hope this crisis will not land in this country,” the President said during the Mass whose main celebrant was San Fernando Archbishop Paciano Aniceto.

But she acknowledged the economic threat to the country as she also asked her fellow “Cabalens” in Pampanga to pray for her amid the global economic crisis.

During a meeting with Lakas CMD party leaders at Clark Freeport last Jan. 30, the President also insisted the country has remained outside the sphere of the worldwide financial turmoil, attributing this to her administration’s unpopular policies.

“Despite the recession in two-thirds of the world, nine out of 10 or 92 out of 100 Filipinos look forward with hope to this new year,” she said in her speech then. “Two-thirds of the world is in recession but we should all be proud that our country is growing at six percent GNP and 4.6 percent GDP in 2008,” she said.

She said, however, that her administration had to resort to hard and unpopular decisions that she now credits for the country’s coping with the global crisis. The government’s economic managers earlier announced a P330-billion stimulus package consisting of infrastructure spending and expansion of social services.

venntro

February 12th, 2009, 02:09 AM

P330-billion stimulus package still up in the air - Neri (http://http://www.philstar.com/Article.aspx?articleId=439576&publicationSubCategoryId=63)
By Jess Diaz Updated February 12, 2009 12:00 AM

MANILA, Philippines - The administration’s P330-billion economic stimulus fund is still up in the air, Social Security System president Romulo Neri said yesterday.

Neri, former socioeconomic planning secretary, told congressmen that SSS is supposed to contribute to the fund, “but there is no decision on our part yet.”

He said the idea of SSS forking over an amount for the stimulus fund first came up during a meeting of the Philippine Chamber of Commerce and Industry or PCCI.

He said PCCI’s Donald Dee suggested that the government and the private sector put up a large infrastructure budget of P100 billion, of which P50 billion would come from private banks and P50 billion from government financial institutions (GFIs).

“The GFIs mentioned were SSS, GSIS (Government Service Insurance System), Land Bank, and Development Bank of the Philippines. Each is supposed to contribute P12.5 billion,” he said.

He added that SSS would be willing to invest in large infrastructure projects provided that its investments are safe and assured of high returns.

“We share the concern of congressmen that these funds, which belong to private sector workers, must be put in safe investments,” Neri stressed.

Militant party-list representatives have questioned Malacañang’s decision to tap workers’ pension funds for government projects.

On the part of GSIS, executive vice president Henrequieta Disuangco said its board has also not decided on its participation in the stimulus package.

A Land Bank representative made a similar statement.

As to the private sector’s P50-billion contribution to the infrastructure fund, Economic Planning Secretary Ralph Recto told congressmen last week that no bank has come forward to offer its contribution.

Neri said the bulk of the proposed P330-billion stimulus package would consist of “realignment and frontloading of resources.”

He was apparently referring to the P160 billion that will come from the proposed P1.415-trillion 2009 national budget.

Cavite Rep. Jesus Crispin Remulla lamented that administration officials “have been talking about this P330-billion economic stimulus fund, and yet there is nothing concrete about it.”

“It’s now the middle of February, and nothing has happened since the global economic crisis erupted late last year,” he said.

One of the large infrastructure projects supposed to be funded out of the P100-billion government-private sector infrastructure budget is the extension of the mass transit system to Cavite.

“This project has been on the drawing board since 1997,” Remulla said.

flip2_0

February 12th, 2009, 03:36 AM

Bill seeks cap on credit card interest rates
AMITA O. LEGASPI, GMANews.TV
02/11/2009 | 08:07 PM

MANILA, Philippines - A Senate Bill seeks to put a ceiling on the interest rates and surcharges being levied by credit card companies, as well as prohibiting the practice of including hidden charges in the billing process.

Senate Bill 1438 puts a cap of 1 percent per month or 12 percent per annum on the interest rates that can be charged by credit card companies. It also seeks to put a ceiling of 1 percent on the surcharges and penalties imposed by these companies.

Currently, the lowest interest rate among credit card companies is at 2.5 percent while the highest is at 3.5 percent.

"The state has to come in to regulate the interest rates charged by these companies so that a healthier economic environment will prevail for the benefit of the consuming public and credit card companies," said Senator Francis G. Escudero, who chairs the Senate committee on banks, financial institutions and currencies.

The senator is also looking into the reinstatement of the Anti-Usury Law, which was suspended by the Central Bank in 1982. As a result, it lifted restrictions, allowing parties to agree on interest rates.

Despite the law’s suspension, it still didn’t give credit card companies the license to charge prohibitive interest rates.

"We, at one time or another have heard a lot of horror stories involving credit cards, particularly the billing process and the abuses in the manner of collection. It is high time that we take a hard look at the issue and pass legislation that aims to protect the interest of the public," Escudero said

He also cited the prevalence of five-six, a lending practice in many urban and rural poor communities which results in the debtor getting deeper into debt.

"Banks, which are essentially established and formal institutions, are being watched. But not informal ones, such as 5-6, which has zero track record," Escudero said. - GMANews.TV

Source: here (http://www.gmanews.tv/story/148334/Bill-seeks-cap-on-credit-card-interest-rates)

venntro

February 12th, 2009, 03:40 AM

^^ That would be of great help.

RonnieR

February 12th, 2009, 07:07 AM

RonnieR

February 12th, 2009, 07:09 AM

GMANews.TV - Wednesday, February 11MANILA, Philippines - Japanese shipbuilder Tsuneishi Heavy Industries (Cebu), Inc. will be spending P11 billion to expand its local facilities at its West Cebu Industrial Park in Balamban, Cebu.

The expansion, which requires an additional 90 hectares of land, will also employ an estimated 6,000 workers in the area, the company said.

With increased capacities, the company will be able to build vessels that can carry 250,000 dead weight tons, including bulk and container carriers, oil tankers, and special vessels that can carry motor vehicles.

Its output will be sold for its markets in Europe and Japan.

In August 1999, the company originally made vessel parts and engaged in engineering work.

Five years later in 2004, Tsuneishi began construction of slipways, a ramp allowing ships to be built and repaired.

Besides its core business, the company recently donated a school building worth P300 million and a P25 million hospital for the communities in which it operates.

The company is still enjoying the perks it received from the Philippine Economic Zone Authority (PEZA). - GMANews.TV

wheel of steel

February 12th, 2009, 11:41 AM

Analyst forecasts better ’09 growth for RP despite crisis (http://www.bworldonline.com/BW021209/content.php?id=006)

A LOCAL ANALYST remains upbeat about the Philippines’ growth prospects, forecasting the economy to perform above official targets despite the global economic slowdown.

ATR KimEng Securities, Inc. economist Luz L. Lorenzo told a Security Bank-sponsored briefing yesterday that the Philippines would likely grow by 4.9% this year, up from last year’s 4.6% and better than the official target of 3.7-4.7%.

"This is premised on domestic demand benefitting from lower inflation, greater government spending, lower interest rates and stable remittances," she said.

International debt watchers Fitch Ratings, Standard & Poor’s and Moody’s have much lower expectations, ranging from 2-3.3%. The International Monetary Fund also has a 2.25% outlook.

Ms. Lorenzo said domestic spending would contribute more than three-thirds to gross domestic product, driving the growth despite a drop in demand for exports.

Latest government data showed a significant 40% plunge in exports last December as global demand dropped.

Growth in remittances, meanwhile, will stay steady as Filipinos abroad are mostly employed in "recession proof" sectors such as education and healthcare, she said.

"Healthcare and education are the pillars of the stimulus packages of developed countries" where migrant Filipinos are employed. "These are industries where jobs are being created instead of being lost."

"Remittances may slow down, [but] I don’t see it contracting sharply," she said, projecting a 5-6% growth in funds sent home by Filipinos working abroad.

Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo yesterday said a contraction in remittance inflows was unlikely. As of November last year, Filipinos had sent about $15.1 billion, a 15% improvement.

Ms. Lorenzo also projected a higher budget deficit this year due to increased spending as a result of the government’s P330-billion fiscal stimulus.

Her optimistic outlook, said Ms. Lorenzo, also rested on the government’s implementing its fiscal stimulus, which revolves around increased infrastructure spending, efficiently and as soon as possible.

venntro

February 13th, 2009, 02:05 AM

Moody's affirms positive outlook on RP (http://http://www.philstar.com/Article.aspx?articleId=439741&publicationSubCategoryId=66)
By Des Feriols Updated February 13, 2009 12:00 AM

MANILA, Philippines - Moody’s Investors Service affirmed yesterday its positive outlook on the Philippines’ credit ratings, retaining the country on its path towards a possible upgrade in the actual ratings.

Following its review mission in January this year, Moody’s said the Philippines has so far demonstrated what it called “a remarkable degree of resiliency” to the global financial and economic crises.

For the country’s actual credit rating to go up, however, Moody’s said it would watch whether this resilience holds, especially with the anticipated decline in remittances from overseas Filipinos.

Moody’s said its outlook remained positive on the country’s B1 foreign and local currency government ratings, the Ba3 country ceiling for foreign currency bonds and B1 country ceiling for foreign currency bank deposits.

The Philippines has been on Moody’s “stable” outlook basket for several years until the credit rating agency upgraded its outlook to “positive” in late January 2008.

Aside from its resiliency, Moody’s said the Philippines has largely preserved the gains that it achieved in improving the country’s economic, external payments and fiscal fundamentals.

“The Philippines’ balance of payments and banking system have held up well to the global inflationary and credit market shocks of 2008,” said Tom Byrne, Moody’s senior vice president.

According to Byrne, this placed the country’s external payments in a “strengthened position” that would enable it to cope with the stresses that would likely hit in 2009.

Byrne said the improving trend in the country’s external debt service capacity would “pause” but not deteriorate. This would help ease the pressure on the exchange rate this year, especially with the slowdown in inflation that would bring the 2009 average rate within the government’s official target of 2.5 to 4.5 percent.

“This would provide the central bank with additional scope to relax policy to cushion the effects of the global recession,” said Byrne.

According to Byrne, the stable peso is considered critical for containing the budgetary debt service payments since over 50 percent of the public sector’s debt burden is denominated in foreign currency.

With less pressure coming from foreign debt servicing, Byrne said there would be more room in the national budget for spending on infrastructure programs and the fiscal stimulus package intended to soften the impact of the global economic depression.

The positive outlook was also a reward of sorts for the government’s decision to accommodate a higher deficit rather than balancing the budget based on the political commitment made by the Arroyo administration early in its term of office.

“Moody’s considers that the government’s intention to increase the National Government deficit only moderately in 2009 would not necessarily permanently reverse the improving trend in the government’s debt metrics,” Byrne said.

The credit rating agency added that the Philippine’s public sector debt overhang remained greater than most its rating peers.

“Moody’s believes that the country’s long-term fiscal outlook would improve with more progress in shoring up government revenues, both through tightened administration and new tax measures, several of which are now pending before Congress,” Byrne said.

However, Moody’s said that while expenditure control has improved in recent years and Treasury debt management has been skilled, these alone would not ensure fiscal sustainability.

“For the rating to move up, Moody’s will assess the prospects for the continued resiliency of the country’s balance of payments and the government’s ability to limit revenue slippage,” Byrne said.

“In this context, a key concern will be how overseas workers remittances hold up,” he added.

venntro

February 13th, 2009, 04:04 AM

Foreign investments in stocks report recovery (http://http://www.gmanews.tv/story/148541/Foreign-investments-in-stocks-report-recovery)
02/12/2009 | 07:32 PM

MANILA, Philippines - Foreign investments in Philippine stocks and government securities recover in January after investors became optimistic over the “inauguration of a new US president" and the country’s single-digit inflation rate.

“Low capital withdrawal levels" were reported, resulting in a net inflow of foreign portfolio investments worth $221.6 million for January this year, the Bangko Sentral ng Pilipinas (BSP) said. The figures are in contrast to the $80.0 million net outflow in December last year and the $237.9 million net outflow in January 2008.

“Some optimism on the inauguration of the new US president and the deceleration in the inflation rate to 8 percent in December may have contributed to the low level of capital withdrawal for the period," BSP Governor Amando M. Tetangco, Jr. said.

Meanwhile, gross investment inflows reached $502.1 million, plunging by 56 percent compared to the previous period’s $1.2 billion.

Similarly, outflows declined to $280.5 million, 80 percent lower than last year’s outflows, which hit $1.4 billion.

Bulk of inflows – at $321.1 million – were allotted to investments in shares traded at the Philippine Stock Exchange. Of the said figure, 63 percent went to shares of mining and telecommunications companies.

Hot money flows into the stock market accounted for 64 percent of the total but the BSP said these inflows were actually 47 percent lower than gross inflows recorded in January last year.

For its part, peso-denominated government securities reached $181 million, 67 percent lower than last year’s levels.

The Netherlands, the United Kingdom, and Singapore were the largest investor countries, contributing three-quarters of total gross inflows during the one-month period.

Outflows were mainly from money market instruments and peso bank deposits which accounted for 90 percent of total outflows. The rest were withdrawal of investments from listed shares and government securities. - GMANews.TV

jpdm

February 13th, 2009, 05:30 AM

hmmmm....

Philippine Star

EDITORIAL - Profligate leadership by example
Updated February 13, 2009 12:00 AM

http://http://img9.imageshack.us/img9/7130/startoonly2.gif

While other countries have slipped into recession, President Arroyo appears determined to show to the world how healthy the Philippine economy is: by traipsing around the globe. Her latest eight-day jaunt across Europe, the Middle East and North America cost taxpayers a whopping P123 million — and that’s the amount that Malacañang was willing to acknowledge.

What did Filipino taxpayers get in return? Few people remember exactly why the President went to Davos, Switzerland, or to Italy. If she went to the World Economic Forum to brag about the Philippine example, the international community seemed unimpressed.

Malacañang cited benefits from the entire trip amounting to an even more whopping $2 billion. Where did that fantastic figure come from? Palace officials said the President received pledges of aid from Saudi Arabia totaling $500 million and, from Bahrain, an investment commitment of $350 million for a hotel project in Makati City.

In the United States, where her quest for a coveted photograph with new President Barack Obama ended in humiliation, there is a possibility that the Philippines can export $1.2 billion worth of textiles.

Decisions regarding foreign aid or major investments are not made as quickly as the President decides to fly to Washington for a photo op. The groundwork for decision-making is laid over several months, and the final commitment does not need the presence of the head of the recipient country.

The original reason cited for the President’s Middle Eastern trip was to act as job-hunter for overseas Filipino workers. But the region has been hit by the precipitous plunge in world demand for crude oil. Projects and major investments in the Middle East are on hold, foreign workers are being sent home, and it’s doubtful that recovery will be quick.

Textile exports to the US? The Philippine textile industry has been devastated by competition from China and India. And if there is textile to speak of for exports, are Americans buying at this time?

As for that unfortunate pilgrimage to Washington, where the President did not merit even a nod or word of acknowledgment from her US counterpart, the embarrassment should be enough to keep her home at least for the duration of the global slump.

But then that would be too much to expect of this President. If members of Congress and even police officers are inveterate junketeers at taxpayers’ expense, it is because they are simply following their leader’s example.

jpdm

February 13th, 2009, 05:45 AM

http://img9.imageshack.us/img9/7130/startoonly2.gif

Philippine star
February 13, 2009

venntro

February 13th, 2009, 05:52 AM

Outstanding debt of NG totals P4.236 trillion as of November
(http://http://www.mb.com.ph/BSNS20090213148013.html)
Lee C. Chipongian

The National Government outstanding debt stood at P4.236 trillion as of end-November, up 12.9 percent year-on-year and 1.2 percent compared to October, the Bureau of the Treasury (BTr) noted in a report yesterday.

Domestic debt went up by one percent or P24 billion to P1.832 trillion while foreign debt also increased by 1.5 percent or by P28 billion to P2.404 trillion from October 2008 figures.

Compared to the same period in 2007, domestic debt grew 10.2 percent and foreign obligations increased by 16.7 percent.

Of the total outstanding debt, about 43 percent is owed to foreign creditors and 57 percent to domestic creditors.

Domestic debt increased because of the net issuance of government securities. BTr said the increase in NG’s foreign debt month-on-month, in the meantime, was due to the P10 billion net availments; the P4 billion depreciation of the peso against the US dollar; and P14-billion depreciation of the third currencies against the US dollar.

As for the government contingent debt – these are guarantees issued by the NG – was higher year-on-year by P9.4 billion to P546.23 billion as of November.

BTr explained that the increase was brought about by government’s P1 billion

net availments; by the P7 billion depreciation of the third currencies against the

US dollar; and the P1-billion net depreciation of the peso against the greenback.

Of the total domestic debt, about P2.401 trillion are direct loans, of which P2.381 trillion are government securities and only P2.3 trillion are assumed loans.

As for foreign debt, P796.4 billion are direct loans, of which P724.1 billion are availed of by different state agencies and P72.3 billion are relent to government owned and controlled corporations.

Foreign-denominated loans total slightly over P1 trillion as of November. Loans in US dollar notes amount to P937.7 billion, P72.4 billion are in Euro bonds and P25.6 billion are in Japanese bonds.

The central bank monitors the outstanding external debt, which as of end-June has decreased by .3 billion to .5 billion. External debt is equivalent to 31.8 percent of gross domestic product.

newgabskii

February 13th, 2009, 08:59 AM

RP economy: one of the brightest spots in the region, says visiting ICC Chair

The Philippines remains one of the economies in the region insulated from the effects of the global economic downturn due to the reforms initiated by President Gloria Macapagal-Arroyo years ago.

This was the observation of Dr. Victor Fung, Chairman of the Paris-based International Chamber of Commerce (ICC), who paid a courtesy call on the President on Thursday afternoon (Feb. 12) in Malacanang.

Dr. Fung is the first chairman from Hong Kong of the ICC, the largest, most representative business organization in the world with hundreds of thousands of member-companies in over 130 countries spanning every sector of private enterprise.

“I think the Philippines is one of the economies in the region that has been relatively insulated from this tsunami. I am very impressed with the way the Philippine economy has functioned,” Dr. Fung said.

“So I think it (Philippine economy) is terrific. It is one of the brightest spots in the whole region,” he added.

Although the Philippine exporting industry has been affected by the global recession, Fung said this would be temporary due to the uninterrupted remittances from overseas Filipino workers (OFWs) and other robust businesses, such as the business process outsourcing (BPO) industry.

The continuing reforms and policies initiated by the President years ago have firmly put the Philippines on a path to stability and growth which, Fung said, has maintained the momentum in foreign investment.

“Obviously, your exports have been somewhat affected but still going on very strongly. That is not a major part of your economy. I think that remittances have kept up and your BPO has really been developed very strongly due to the very good policies of the government that started a few years ago,” Fung said.

Fung said he and the President have been meeting quite a number of times, discussing a lot of issues such as keeping the multilateral trading system strong.

“In today’s environment it is absolutely essential that we maintain the flow of trade. Trade is the lifeblood of the international economy. In my capacity as chairman of the International Chamber of Commerce (ICC) which is the voice of global business, I think the idea of making sure that we keep each other informed of our respective presence in keeping the global trading system open, is very important,” Fung said.

Dr. Fung, who leaves tonight for Thailand, had a speaking engagement in Manila and has been invited as speaker in the Philippines a number of times.

amigo32

February 13th, 2009, 10:31 AM

bartstrife99

February 13th, 2009, 01:53 PM

good news:D
pero ano na namn kaya sasabihin ng opposition?
Binayaran lang yan:D:D:D

That's a good new's for us and it will boost the investor confidence to invest here in Rp

@Amigo
Tahimik naman ang Opposition except lang si Lason? yung iba nag hahanda na sa 2010 :D baka masira kaya iwas Picture muna.

venntro

February 14th, 2009, 01:43 AM

RP domestic economy growth seen at least 3.7%--official (http://http://www.abs-cbnnews.com/business/02/13/09/rp-domestic-economy-growth-seen-least-37-official)
Reuters | 02/13/2009 7:27 PM

The Philippine economy is expected to grow at least 3.7 percent this year, the lower end of the government's forecast, with other sectors and slowing inflation offseting weak exports as the global downturn deepens, a senior government official said on Friday.

The government is targeting gross domestic product growth of 3.7 to 4.7 percent this year, which assumes exports growing 1 to 3 percent.

"The crisis began in September and hit hard in October, November and December," Dennis Arroyo, head of policy planning at the National Economic Development Authority, said in a statement.

"Hence, the fourth quarter of 2008 was already in the crisis era. Yet, the economy still grew by 4.5 percent."

Arroyo said the economy is likely to find support in easing inflation, which should underpin domestic consumption, a key growth driver.

Philippine annual inflation hit a 10-month low of 7.1 percent in January, and the central bank expects the rate to average 3.9 percent this year and 4.7 percent in 2010.

"Given the favourable inflation outlook, the central bank has sufficient latitude to address financial markets stability as well as growth concerns," the central bank said in a statement on Friday.

The central bank slashed interest rates by a total 100 basis points in December and January and analysts are looking forward to more to help the economy deal with the global slowdown that caused Philippine exports to dive a record 40.4 percent in December from a year earlier.

The central bank holds its next rate-setting meeting on March 5.

"We are seeing a deep downturn in global economic conditions with sharp fall in demand, not only deep but broad-based and possibly prolonged," said Cyd Tuano-Amador, managing director at the central bank.

Analysts expect the Philippine economy to post its slowest growth in eight years in 2009 on falling exports and an expected drop in remittances as the global gloom puts pressure on wages and threatens jobs of Filipinos working overseas.

But Arroyo said other sectors like agriculture and services, which will benefit from lower input and fuel costs, could cushion the impact of declining demand abroad.

Still, up to 200,000 Filipinos are likely to lose their jobs this year, said Arroyo.

"Definitely, it will raise the unemployment rate," he said but added it is unlikely to reach 10 percent.

The Philippine jobless rate stood at 6.8 percent in October, according to the latest available government data.

jpdm

February 15th, 2009, 03:02 AM

kevinb

February 15th, 2009, 02:34 PM

And she has also ensured the peso is artificially inflated against the US dollar to ensure OFWs keep sending in the remittances and make their families happy.

...and the government too. :D

venntro

February 16th, 2009, 02:38 AM

RP is ‘highly exposed’ to rising poverty - WB (http://http://www.abs-cbnnews.com/business/02/15/09/rp-%E2%80%98highly-exposed%E2%80%99-rising-poverty-wb)
By Cai U. Ordinario, BusinessMirror | 02/16/2009 1:11 AM

The Philippines is among the “highly exposed” developing countries to increasing poverty levels and decelerating growth due to the global economic slowdown, according to a policy note recently released by the World Bank.

The bank said the global economic crisis is exposing households in almost all developing countries to increased risk of poverty and hardship. And, it added, almost 40 percent of developing countries are highly exposed to the effects of the crisis on poverty, with both declining growth rates and high poverty levels.

The Washington-based lender also said an additional 56 percent of countries are moderately exposed—meaning, will face either decelerating growth or high poverty levels, while only less than 10 percent face little risk.

The World Bank said the Philippines was classified a “highly exposed” country because its real per-capita economic growth is expected to be lower in 2008 and 2009 compared with the period of 2004 to 2007; and it is a place where 20 percent or more of households were below the $1.25 poverty line in 2005.

The bank said in highly exposed countries like the Philippines, poverty was already a large problem before the crisis, and an adverse impact on economic growth is expected. In the short term, the bank expects the nonpoor to be the most affected by the crisis. Experience from past economic and financial crises suggests that the adverse impacts are likely to spread in the medium-term to poor households.

“Poor household have fewer assets, more limited risk-coping mechanisms, and less access to capital markets to help them cope with economic fluctuations. Countries where there is a greater proportion of poor households have a larger share of the population that will be vulnerable to shocks in the medium term,” the bank said.

On a positive note, the bank also classified the Philippines as among those highly exposed countries that has “some fiscal space” to weather the crisis.

The bank said it will be critical to protect households in exposed countries through the help of the government. Governments, the bank said, must have the ability to cope with the fallout and finance programs that create jobs, ensure the delivery of core services and infrastructure, and provide safety nets.

As one of the countries with some fiscal space with medium capacity, the Philippines has more options to rapidly and effectively increase spending. The World Bank said the government should provide targeted support to exposed groups and regions, as well as support to protect core service delivery and infrastructure maintenance using development-policy operations in addition to investment financing.

“Combining both dimensions of vulnerability, the countries in most critical need of external financial and technical assistance are those with high initial poverty and growth decelerations, as well as low fiscal and institutional capacity,” said the Bank.

Earlier, World Bank president Robert Zoellick said developing countries should set aside .07 percent of their gross dometic product (GDP) in their stimulus package as a vulnerability fund.

Zoellick said the fund can be used for World Bank, United Nations and regional development bank safety-net programs that give the poor access to health, education and nutrition services; build infrastructure such as roads, bridges and low-carbon technology projects; and support small and medium-size businesses and microfinance institutions that lend to the poor.

An “unprecedented” fall in global production and a 5-percent decline in world GDP in the fourth quarter of 2008 point to an outright fall in world GDP in 2009, even if there is a modest rebound in the second half of the year, according to the World Bank.

World trade volumes are now contracting sharply and are expected to fall in 2009 for the first time in 27 years. Investment growth in the developing world is projected to fall from 13 percent in 2007 to 3.5 percent in 2009, due to tighter credit conditions and less appetite for risk.

venntro

February 16th, 2009, 03:06 AM

Govt approves package funded by excess VAT (http://http://www.gmanews.tv/story/148933/Govt-approves-package-funded-by-excess-VAT)
02/16/2009 | 02:48 AM

MANILA, Philippines - A final P4-billion package of initiatives funded by excess revenues from the value-added tax (VAT) on oil has been approved and released by Malacanang.

The expenditure, facilitated by the “windfall" collected when crude prices hit record highs last year, was greenlighted by President Gloria Macapagal-Arroyo in December, a Finance department official said.

It was the final tranche of the so-called Katas ng VAT (loosely, fruit of the VAT) program — designed to mitigate the impact of 2008’s skyrocketing food and fuel prices — which has cost the government P16.5 billion.

“The funds were released already ... The President approved it (the package) last December," said Rosalia V. de Leon, chief of staff of Finance Secretary Margarito B. Teves and also officer in charge of the department’s International Finance Group.

The latest package went to an agricultural guarantee fund, the National Irrigation Administration (NIA), and an industry competitiveness fund. Ms. de Leon said there was an emphasis on agriculture given the policy of ensuring food security.

“We also have to respond to the needs of agriculture. We have the rural infrastructure and farm to market roads but we want to make sure that there is [also] productivity," she said.

The agricultural guarantee fund was given P2 billion, to be managed by the Land Bank of the Philippines and used to backstop loans of farmers who are in need of fertilizer and farming equipment.

The NIA, meanwhile, received P1 billion to pay for loans with the National Development Corp. (NDC).

“The funding will be used to pay NIA’s loans to NDC so the NDC can release funds for other relevant projects," Ms. de Leon said.

The final P1 billion was allocated for an industry competitiveness fund aimed at encouraging investments amid the global downturn.

“We are still preparing an EO (executive order) for this but the funding will be used to enhance the competitiveness of the country. This will provide incentives to encourage investments and job creation," Ms. de Leon said.

She said the VAT windfall had effectively ended in the third quarter as crude prices began falling from the all-time high of $147 per barrel hit in mid-2008. Crude prices are now below $40 per barrel, pulled down by the global downturn.

Last year’s volatility, which led to domestic fuel prices hitting P60 per liter compared to P35 currently, prompted the Katas ng VAT program which originally focused on subsidies and cash handouts for the most disadvantaged.

The first tranche was announced in June, with subsequent ones unveiled in July and October.

A first P4 billion went to cash handouts for lifeline power users (P2 billion), scholarships and student loans, (P1 billion), the conversion of public utility vehicles to make them more energy efficient (P500 million); and the replacement of incandescent bulbs with fluorescent lamps (P500 million).

A second P4-billion package provided fresh subsidies for another batch of lifeline users (P1 billion); loans for the wives and relatives of transport workers (P1 billion); rehabilitation of areas damaged by typhoons (P1 billion); upgrading of provincial hospitals (P500 million); and cash allowances for senior citizens not covered by pension funds (P500 million).

The third, a slightly higher P4.5 billion, was for additional support to the Fields (Fertilizer, Irrigation, Extension and Education for farmers, Loans, Dryers and post-harvest facilities, and Seeds) program (P2 billion), a feeding program for provinces affected by the fight against Muslim rebels (P500 million), the rehabilitation of conflict-infested areas (P500 million), more power subsidies (P400 million), assistance for small businesses (P600 million), and schoolbuilding construction (P500 million).

Finance Undersecretary Gil S. Beltran said the government was unlikely to record another VAT windfall this year as demand for oil had fallen due to the global economic slowdown.

“It (excess revenues from the VAT on oil) is very unlikely due to current conditions," he said.

Mr. Beltran noted that the government had forecast benchmark Dubai crude to sell for $75 per barrel this year, far higher than the current price of around $40. - Alexis Douglas B. Romero, BusinessWorld

venntro

February 16th, 2009, 04:48 AM

GMA orders all agencies to implement moral renewal program (http://http://www.philstar.com/Article.aspx?articleId=440802&publicationSubCategoryId=63)
By Paolo Romero Updated February 16, 2009 12:00 AM

MANILA, Philippines - President Arroyo ordered all Cabinet officials and agency heads to implement a moral renewal program in their respective agencies with the participation of religious and civic groups that include measures for values formation and zero tolerance for corruption.

Citing the need for “societal reforms,” Mrs. Arroyo issued Administrative Order 255 on Jan. 30 “directing the heads of the executive department to a lead moral renewal” in their agencies amidst corruption controversies affecting her administration.

“Moral renewal refers to values formation and ethical behavior for government officers and employees, as well as the strengthening of people’s values to achieve zero tolerance for corruption,” she said.

She said moral renewal includes the strict observance of all public officers of the principle of moral leadership by example, especially by Cabinet secretaries.

Arroyo said in line with the Medium-Term Philippine Development Plan for 2004 to 2010, there is an urgent need for societal reforms through moral renewal and values *formation in the executive department.

She cited Filipino values embodied in the preamble of the Constitution that must be strengthened, particularly, being maka-Diyos, which encompasses faith in the Almighty; maka-tao, which includes justice, truth, freedom, equality and peace; makabayan, which includes respect for the law, the government of the Republic of the Philippines, patriotism, promotion of the common good and building a just and humane society; and maka-kalikasan, which involves the conservation and development of the country’s patrimony.

Mrs. Arroyo directed all Cabinet officials and heads of offices to ensure that all attached agencies and bureaus adopt and implement the Integrity Development Action Plan (IDAP), which is part of the National Anti-Corruption Framework for the executive branch.

She said the department heads should also expand and strengthen the membership of the integrity committee in every department, agency, bureau and office.

Moral renewal should also include the conduct of values formation activities with the Presidential Council on Values Formation, she said.

All agencies shall submit their respective action plans for their Moral Renewal Program to the Presidential Anti-Graft Commission (PAGC), with a copy furnished to the President, within 90 days upon the effectivity of the administrative order.

Agencies were also directed to allocate a portion of their maintenance, operations and overhead expenditures budget to fund values formation and anti-corruption programs.

The President said the PAGC would monitor and evaluate the implementation and effectiveness of the moral renewal program to include surveys of personnel from all levels.

venntro

February 16th, 2009, 06:21 AM

Ex-gov't execs hope GMA to fulfill vow to leave presidency by 2010 (http://http://www.philstar.com/Article.aspx?articleId=440899&publicationSubCategoryId=200)
By Dennis Carcamo Updated February 16, 2009 11:15 AM

MANILA, Philippines--Former government officials today hoped that President Arroyo would make good on her promise and step down in 2010.

In a briefing at Club Filipino in Greenhills, San Juan City this morning, the former senior government officials (FSGO), an anti-corruption watchdog, said it hopes Mrs. Arroyo grows a conscience and vacates her post by the presidential race in 2010.

Karina David, FSGO member and ex-Civil Service Commission chairperson, said their group merely has been educating the people, revealing corruption, and suggesting reforms in government.

"Di kami magpapatigil ng pang aabuso ni Mrs. Arroyo. Ang taong bayan ang magpapatigil ng korapsyon (We are the ones who would stop abuses of Mrs. Arroyo. The people would stop corruption)," David said.

She, however, pointed out that their group is not advocating an uprising to overthrow the present administration.

FSGO is a composed of ex-government officials who served under the administration of Presidents' Aquino, Ramos, Estrada and Arroyo.

gen1

February 16th, 2009, 06:29 AM

beads_strawberries

February 16th, 2009, 07:27 AM

I think the president wanted to revolutionize the government with such statements. For all public officials out there, it should be their primordial concern to see to it that they are leading their respective government agencies by example. We all know that being public servants require not only efficiency and good results but integrity as well.

All those calls for GMA to step down fall short of one requirement: they could not find a suitable replacement for her. No matter how worse they want to portray the president, they could not find someone better, I wonder why.

venntro

February 16th, 2009, 08:17 AM

RP's Jan BOP surplus at $1.74B (http://http://www.abs-cbnnews.com/business/02/16/09/rps-jan-bop-surplus-1735b)
Reuters | 02/16/2009 2:06 PM

The Philippines recorded a balance of payments (BOP) surplus of $1.74 billion in January, recovering from a deficit of a revised $275 million in December with proceeds from a $1.5 billion global bond, the central bank said on Monday.

The overall BOP surplus in 2008 fell to a four-year low of $89 million after a record $8.58 billion in 2007.

No official BOP estimate has been released for this year but central bank Governor Amando Tetangco has said a small surplus was likely.

newgabskii

February 16th, 2009, 08:29 AM

The government should now implement PGMA's Executive Order on Buy Filipino, buy local especially on government procurements to stimulate domestic production and consumption.

Expor for now, is not an option.:ohno:

if we do that we become protectionists....
economic protectionalism leads a country to great doom of end...
remeber that no country can survive without the help of the other through trade and other forms of help...

although your idea is quite realistic but we cannot consider that since a country needs also an inflow of cash from outsiders...

remember we are in debt of a trillion dollars...

c0kelitr0

February 16th, 2009, 08:42 AM

^^ hindi trillion dollars ang utang natin :bash:

le Reine

February 16th, 2009, 08:46 AM

^^:lol: biglang lumobo ng bonggang bongga ang utang natin. :lol:

newgabskii

February 16th, 2009, 09:09 AM

^^ hindi trillion dollars ang utang natin :bash:

oops its philippine peso pala... my fault... :) :lol:

TambayBlues

February 16th, 2009, 10:32 AM

All throughout our history we have suffered from foreign intervention and the economic hitmen that Lyndon Larouche has been telling us all along. If you guys want to get some idea how they go about their business. Here's the link;

Schultz and Hitmen Destroyed the Philippines
http://therockhound.blogspot.com/2008/04/shultz-and-hit-men-destroyed.html

Here is an ex-economic hitman who wrote about his exploits being interviewed. John Perkins, author of "Confessions of an Economic Hitman" details the corruption/manipulations they performed on Latin American leaders and the assassinations that ensued when leaders don't want to get along.

How to Destabilize Countries Legally - John Perkins Part1
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How to Destabilize Countries Legally - John Perkins Part2
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How to Destabilize Countries Legally - John Perkins Part3
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How to Destabilize Countries Legally - John Perkins Part4
mPRJjP7h4Q4

jpdm

February 16th, 2009, 12:36 PM

if we do that we become protectionists....
economic protectionalism leads a country to great doom of end...
remeber that no country can survive without the help of the other through trade and other forms of help...

although your idea is quite realistic but we cannot consider that since a country needs also an inflow of cash from outsiders...

remember we are in debt of a trillion dollars...

With all due respect, you are wrong. I did not say we restrict importation of goods and services wholesale...Im only talking about government procurement.

Please check the computation of GDP using the expenditure approach.

Anyway, its realistic. Check the buy american policy (although already watered down) strategy..part of the economic stimulus package of the Obama presidency.

We have around 4T pesos in debt. Can we still pay for our imports? Can the government can still buy imported goods and services?

With the eternal budget and trade deficits of the Philippines? ( and our intelligent senators like Santiago keeps on bashing WB and other international financial institutions who keeps on giving us the much needed lifeline to finance our financial shortfalls).

newgabskii

February 16th, 2009, 12:55 PM

With all due respect, you are wrong. I did not say we restrict importation of goods and services wholesale...Im only talking about government procurement.

Please check the computation of GDP using the expenditure approach.

Anyway, its realistic. Check the buy american policy (although already watered down) strategy..part of the economic stimulus package of the Obama presidency.

We have around 4T pesos in debt. Can we still pay for our imports? Can the government can still buy imported goods and services?

With the eternal budget and trade deficits of the Philippines? ( and our intelligent senators like Santiago keeps on bashing WB and other international financial institutions who keeps on giving us the much needed lifeline to finance our financial shortfalls).

hmm....
you are saying that we pay imports, if that is the case then you are outflowing cash in the phil

but if you say we receive remittances and other cash inflow transactions then we increase our cash reserves...

jpdm

February 16th, 2009, 03:59 PM

hmm....
you are saying that we pay imports, if that is the case then you are outflowing cash in the phil

but if you say we receive remittances and other cash inflow transactions then we increase our cash reserves...

yup, imports mean outflow.

export means inflow.

(x-m)= trade balance

if x is bigger than the m, we have a positive balance (trade surplus) which means more dollars for our GIR.

if m is bigger than x, we have a negative balance (deficit) which means less dollar for our GIR.

Its definitely a sensitive issue for the government to officially advocate for a buy pinoy policy (remember Pres. Garcia's First Filipino Policy?) that will include the whole economy (that's protectionism. Punitive trade barriers will be imposed against imports).

It will be more acceptable if the government will mandate itself to buy Pinoy and not the rest of the economy.

The government can only encourage discreetly pinoys to buy Pilipino products and services.

newgabskii

February 16th, 2009, 04:05 PM

yup, imports mean outflow.

export means inflow.

(x-m)= trade balance

if x is bigger than the m, we have a positive balance (trade surplus) which means more dollars for our GIR.

if m is bigger than x, we have a negative balance (deficit) which means less dollar for our GIR.

Its definitely a sensitive issue for the government to officially advocate for a buy pinoy policy (remember Pres. Garcia's First Filipino Policy?) that will include the whole economy (that's protectionism. Punitive trade barriers will be imposed against imports).

It will be more acceptable if the government will mandate itself to buy Pinoy and not the rest of the economy.

The government can only encourage discreetly pinoys to buy Pilipino products and services.

with all respect
please dont give me a lecture because it was my 1st yr topic when i was in college...
i am not asking a question
i am answering your question...:)

jpdm

February 16th, 2009, 04:27 PM

The government should heed this call from our industry leaders!

Business Mirror

Export groups facing extinction call for immediate government action
Economy
Monday, 16 February 2009 21:39

FOUR associations of indigenous exporters this week appealed for immediate government actions to help them survive the present economic crisis before they become extinct.

Among the immediate actions they sought is the pegging of the exchange rate at P55 to the dollar, reduction of electricity rates, establishment of a permanent, one-stop display and retail center for Philippine export products in Manila, the restructuring of exporters’ loans to longer payment period and the immediate release of the P1 billion export-development fund committed in principle by President Arroyo this year.

The call was made by Chamber of Furniture Industry of the Philippines ex-president Manny Padiernos, Philippine Export Retailers and Producers Association president Malou Quiroz, Christmas Décor Producers and Exporters Association of the Philippines head Ricardo Sales and the Home Accents of the Philippines Inc. president Amaya Bengzon.

They met at the Philippine Exporters Confederation Inc. (PhilExport) headquarters in Pasay the other day to assess the impact of the crisis on their respective industries. All of them admitted their members are gasping for survival.

Leaders of the four industries also said although their members have not reported total closures as of this week, most of them have stopped giving orders to their subcontractors as orders from abroad got scarce. They have also reduced their workers to the barest minimum.

On the proposed emergency assistance by the government, the leaders requested the release of the P1-billion fund even while the Export Development Council is processing the liquidation of the P280 million for last year’s export promotions projects.

They, likewise, arrived at a consensus of adopting the suggestion of former budget secretary Benjamin Diokno for monetary officials to keep the peso-dollar rate stable at P55 to the dollar, a defense strategy adopted by Malaysia during the Asian financial crisis and a policy Japan and China have maintained for decades.

To stay afloat as foreign orders disappear, the four industry leaders were one in saying they are now aggressively selling locally just to stay afloat. The domestic furniture industry is, however, facing difficulty competing with importers of furniture from Indonesia, Malaysia and China which are much cheaper. To address this, Padiernos cited the need to re-study our tariff commitments so as not to put the local industries at a disadvantage.

They also reiterated their clamor for the setting up of a stand-by financing package which distressed companies may tap when they face cash-flow problems as the crisis deepens and lingers.

In addition, while Philippine Export Zone Authority (Peza) locators have been granted discounted power rates, they pointed out that the same privilege has not been extended to non-Peza locators that are mostly small and medium exporters. (Philexport News)

venntro

February 17th, 2009, 01:45 AM

Metro Manila retail prices grew 9.14% in 2008 (http://http://www.abs-cbnnews.com/nation/metro-manila/02/16/09/metro-manila-retail-prices-grew-914-2008)
Cai Ordinario, Business Mirror | 02/17/2009 2:44 AM

The National Statistics Office (NSO) said retail prices in the National Capital Region (NCR) posted an average growth rate of 9.14 percent in 2008, according to the latest data included in the General Retail Price Index (GRPI).

Data from the NSO showed the GRPI growth peaked in July 2008 with a 14-percent increase while the slowest growth was posted at 3.9 percent, recorded in December 2008.

The December 2008 figure of 3.9 percent was slower than the 5.1-percent growth recorded in December 2007, and this was attributed to the slowdown in 2008’s last month in almost all commodities except for the machinery and transport equipment index, whose annual price increase was higher at 2.1 percent from 2 percent in 2007.

Other commodity groups, the NSO said, either posted negative or slower annual growth rates. Annual price increases in mineral fuels, lubricants and related materials index declined by 16.4 percent in December 2008 from 3.5 percent in 2007.

In addition, the annual growth rate of the food index slowed to 6.4 percent from 7.7 percent; beverages and tobacco, 6.3 percent from 6.9 percent; crude materials, inedible except fuels, 7.6 percent from 8.2 percent; chemicals, including animal and vegetable oils and fats, 3.6 percent from 3.7 percent; manufactured goods classified chiefly by materials, 4.1 percent from 4.2 percent; and miscellaneous manufactured articles, 4.1 percent from 5.4 percent.

The month-on-month growth rate of the GRPI dropped to 0.7 percent in December from -1.4 percent in November as prices of mineral fuels, lubricants and related materials further declined by 16.7 percent from -11.1 percent.

The NSO said that on a monthly basis, price rollbacks in gasoline, kerosene and liquefied petroleum gas along with the price decreases in steel bars contributed to the downtrend.

The agency said prices of chemicals, including animal and vegetable oils and fats and manufactured goods classified chiefly by materials also went down by 0.1 percent and 0.2 percent, respectively, from their corresponding growth rates of 0.5 percent and -1.4 percent in November.

Prices of beverages and tobacco posted a zero growth in December while the rest of the commodity groups recorded higher positive monthly growth rates.