^^ We cannot deny the fact that under this administration, BPO industry has rocketed to greater heights from a mere 100,000 workers in 2001 to what it is now. Office towers were built in Makati, BGC and other parts of the metropolis and new offices were also built in key cities nationwide.

"In a report from Philstar.com, Teodorico Haresco of outsourcing company Winsource Solutions said, "President Arroyo's state visits have given impact support to the information technology industry and as a result our outsourcing business thrusts have gained proper bearings."
http://www.thepoc.net/index.php/Politi-Ko/Politiko-Features/The-jetsetting-president-Part-2-of-2.html

"Overall, Philippine BPO is forecast to earn US$11 billion and employing 900,000 people by the year 2010 (Shameen 2006).

The recent growth spurt in the outsourcing industry in the Philippines has been fueled not by traditional low-value-added call centers but more higher-end outsourcing such as legal services, Web design, medical transcription, software development, animation, and shared services. Though call centers still form the largest part of the sector, the Philippines has begun leveraging its creative design talent pool, its large pool of lawyers, and its professionals in accounting and finance (Shameen 2006)."

Highlights & Sidelights of GMA’s Trip to the US
Thursday, 06 August 2009 01:19 Momar G. Visaya / AJPress Los Angeles

RP sustains economic growth despite global recession, says GMA.

http://www.asianjournal.com/dateline-usa/15-dateline-usa/2517-highlights-a-sidelights-of-gmas-trip-to-the-us.html?showall=1

NEW YORK—It was all about the economy, and during the numerous opportunities that President Gloria Macapagal Arroyo had to talk about it, she did.

From the White House to the Capitol, from Filipino community gatherings in Washington, DC to New Jersey, from interviews with Filipino media to CNBC’s Maria Bartiromo, President Arroyo took pride in saying that the Philippines weathered a succession of global crises in fuel, food, finance and economy.

Two major events, however, overshadowed President Gloria Macapagal-Arroyo’s trip to the United States: the "beer summit" hosted by President Barack Obama for Harvard Professor Henry Louis Gates and the death of former President Corazon Aquino on August 1.

These events, however, did not dampen the spirits of the president, specially after the much-touted historic meeting with USPresident Barack Obama inside the Oval Office.

"As you can see from this trip, President Gloria Macapagal-Arroyo has command of the facts and commands the respect of other world leaders—from Speaker Nancy Pelosi to President Obama. They have been outspoken in their praise for her commitment, ability and leadership," Press Secretary Cerge Remonde said in a media briefing at the Beacon Hotel in Washington, DC on Friday, the day after the White House meeting.

The President and her team followed a hectic and strict schedule, allowing the media to join in some of her meetings while the others were closed-door sessions with key government officials and CEOs of major business corporations.

Remonde described the Chief Executive as a leader, who can hold her own with any leader anywhere in the world adding that this ability gives her the clout, credibility and strength to protect and advance the interest of the Philippines.

According to the Press Secretary, President Macapagal-Arroyo’s trip is about upholding the deepest obligation of a President - namely, to ensure the peace, order and security of our nation and meeting with President Obama and American leaders helps keep the Philippines strong.

"There is no price that can put on the safety and security of our nation and the value of establishing personal rapport through personal diplomacy as President Arroyo gained in her meetings with President Obama is priceless, " he declared..

Expanded investments

In New York, the president and her team met with business leaders, among them officials from the world beverage giant Coca Cola, which has joined the billion dollar club of investors in the Philippines in an expansion plan expected to boost further the investment climate in the country amidst the global economic downturn.

Speaking before the Filipino-American community of New York and New Jersey during a dinner meeting at the Sheraton Hotel in Newark, Arroyo relayed the good news.

Again, the president reiterated what she highlighted in her State of the Nation Address on July 27, 2009.

"A few days ago, Moody’s upgraded our credit rating, citing the resilience of our economy. The state of our nation is a strong economy," she remarked.

During a separate press briefing, Remonde said the Philippines continues to enjoy a conducive investment climate due to the President’s timely reforms and masterful steering of the economy.

Remonde said a number of hedge fund managers based here in New York, the world’s top financial market, also discussed with the President various investment prospects in the Philippines.

The President, according to him, had a lunch meeting with hedge fund managers in the US "who are looking for a safe and attractive investments abroad to ensure the growth of the capital entrusted to them."

"And because of the upgrade Moody’s gave us, very rarely during the time of the global crisis, the Philippines is now emerging as an attractive investment destination," Remonde said.

^^ We cannot deny the fact that under this administration, BPO industry has rocketed to greater heights from a mere 100,000 workers in 2001 to what it is now. Office towers were built in Makati, BGC and other parts of the metropolis and new offices were also built in key cities nationwide.

"In a report from Philstar.com, Teodorico Haresco of outsourcing company Winsource Solutions said, "President Arroyo's state visits have given impact support to the information technology industry and as a result our outsourcing business thrusts have gained proper bearings."
http://www.thepoc.net/index.php/Politi-Ko/Politiko-Features/The-jetsetting-president-Part-2-of-2.html

"Overall, Philippine BPO is forecast to earn US$11 billion and employing 900,000 people by the year 2010 (Shameen 2006).

The recent growth spurt in the outsourcing industry in the Philippines has been fueled not by traditional low-value-added call centers but more higher-end outsourcing such as legal services, Web design, medical transcription, software development, animation, and shared services. Though call centers still form the largest part of the sector, the Philippines has begun leveraging its creative design talent pool, its large pool of lawyers, and its professionals in accounting and finance (Shameen 2006)."

Like I said before BPO's can fold just like that. In Sykes all of the non-voice were removed. What we need is KPO... more on R&D than processing of information.

Alright demented pigeon, let's pick up this dicussion by going back to two points you made:

1) "Corporatist governments (those that always lean to the right despite believing in "being the third way") often establish government that do become too powerful than they promised. Initially they promise class cooperation and in the end the result is usually one particular class lording it over another."

You must understand that state corporatism like socialism is radical in a sense that it also challenges the entrenched interests of traditional "right wing" conservative orthodoxy which naturally leans to classical liberalism (a.k.a. neo-liberalism) and/or unrestricted capitalism....they just don't want to be regulated by the state.

STATE POWER IS THE NATURAL ENEMY OF NEOLIBERALISM AND UNRESTRICTED CAPITALISM. THIS IS WHY THEY DO THEIR BEST TO CONTROL THE STATE, NOT TO EXPAND IT'S AUTHORITY BUT TO RESTRICT IT.

You must also note that conservative thinking is not exclusive to the upper classes of society, nor does conservative power necessarily emanate from them. They are everywhere!

CORPORATISM STILL ALLOWS PRIVATE OWNERSHIPS TO HAPPEN, THE STATE GIVES PRIVATE INITIATIVE A CHANCE TO EXPRESS COMMUNITARIAN VALUES THROUGH INDUSTRY SELF-REGULATION. WHEREAS SOCIALISM THEORETICALLY HAS NO PROBLEM USING STATE POWER TO REGULATE ONLY BECAUSE THE GOVERNMENT OWNS EVERYTHING.

2) "there is a need for an overhaul starting from the very structure of corporations and making sure trade diversifies."

It's the same case, if the state is powerless to enforce such measures then it cannot do it. No wonder Coca-Cola likes giving fat donations to conservatives and neo-liberals.

_________________________________________________________________

NEITHER LEFT NOR RIGHT BUT FORWARD!

I often wonder how awesome the Philippines would've been if would've taken the path of Park Chung-hee and Lee Kuan Yew instead of political corruption ... sigh. I hope 2010 will bring good results.

^^ I hope so too.

RP posts P28.67-billion consolidated public surplus (http://www.philstar.com/Article.aspx?articleId=496595&publicationSubCategoryId=66)
By Iris C. Gonzales (The Philippine Star (http://www.philstar.com/Article.aspx?articleId=496595&publicationSubCategoryId=66)) Updated August 17, 2009 12:00 AM

MANILA, Philippines - The country posted a consolidated public sector surplus of P28.67 billion in 2008 or 0.4 percent of gross domestic product, (GDP), marking the third consecutive yearly surplus for the public sector, latest data from the Department of Finance (DOF) showed.

The P28.6 billion surplus is P7.326 billion higher than the P21.347 billion surplus posted in 2007, data from the DOF also showed.

The DOF attributed the significant increase in the public sector surplus to healthier finances of government-owned and controlled corporations (GOCCs), other state-owned agencies and local government units even in the wake of the global financial turmoil.

The combined public sector surplus of social security institutions such as the Government Service Insurance System (GSIS), Social Security System (SSS) and the Philippine Health Insurance Corp. (PHIC) hit P66.69 billion, higher than the P34.203 billion surplus posted in 2007.

The Bangko Sentral ng Pilipinas (BSP), meanwhile, posted a surplus of P9.427 billion in 2008, a marked turnaround from the P89.220 billion deficit it posted in 2007. This was largely due to lower costs of monetary management, the Finance department said.

The local government units, for their part, posted a combined surplus of P34.383 billion last year, also an improvement from the P21.803 billion surplus recorded in 2007. The DOF said this was due to higher internal revenue allotments from the government as a result of higher collections from internal revenue taxes.

Similarly, government financial institutions posted a combined surplus of P7.496 billion in 2008, higher than the P5.940 billion surplus recorded in 2007.

On the other hand, the 14-monitored GOCCs posted a deficit of P27.7 billion last year.

The country’s consolidated public sector fiscal position is the combined budget deficits or surpluses of the government and state-owned firms. These include GOCCs, local government units (LGUs) and government financial institutions.

It is closely monitored by local and foreign debt watchers as it is an indication of a country’s credit risk.

The Philippines is expected to incur a consolidated public sector deficit of P232.953 billion this year on the back of the government’s swelling budget deficit.

This means that the consolidated public sector position would be back in the red this year after posting three consecutive yearly surpluses from 2006 to 2008.

The latest public sector deficit projection took into account a revised budget deficit for 2009 of P250 billion from the original projection of P40 billion.

The government has been trying to impose prudent spending and financial discipline on state-owned agencies to improve the country’s fiscal position.

In 2007, the government had a public sector surplus of P21.347 billion, sustaining the surplus in 2006 of P5.33 billion. The 2006 surplus was the first since the 1997 Asian financial crisis, swinging from a deficit of P103.54 billion in 2005.

Prior to the 1997 crisis, the public sector recorded a surplus of P7.5 billion in 1996.

Business sector unhappy with Arroyo performance
By Jose L. Cuisia, Jr.
Philippine Daily Inquirer
08/15/2009
http://opinion.inquirer.net/inquireropinion/columns/view/20090815-220334/Business-unhappy-with-Arroyo-performance


A recent article in a local daily quoted Philippine Chamber of Commerce and Industry president Edgardo Lacson saying, “…as far as the economy is concerned, they are satisfied because the country has not entered into a recession and they think the economy will grow by 1.9 percent this year.” Lacson is entitled to his view, but I disagree that the rest of the business sector is happy with President Gloria Macapagal-Arroyo’s economic management.


Many in the business sector feel the Arroyo administration has failed to deliver satisfactory performance based on these criteria: competitiveness, employment, export growth, foreign direct investments, and fiscal stability.

Competitiveness

The World Competitiveness Yearbook last May revealed that out of 57 countries, the Philippines ranked 43rd in competitiveness, the worst among 13 Asia-Pacific countries. Based on four lead factors, we ranked 56th in supply infrastructure, 51st in economic performance, 42nd in government efficiency, and 32nd in business efficiency. The Global Competitiveness Index, published by the World Economic Forum last year, reflected equally depressing results—we ranked 71st out of 134 countries surveyed.

The most problematic factor cited for doing business in the Philippines was corruption. Foreign investors attribute the extent of corruption as one of the greatest hindrances to making long-term direct investments in the Philippines.

It is distressing that competitiveness has deteriorated. Clearly, on this aspect the country has fared poorly under Arroyo’s administration.

Employment

Despite GMA’s repeated promise to create 1 million new jobs a year, the highest unemployment rate since 1992 of 11.8 percent was recorded in 2004 (source: National Statistics Office, Neda). Arroyo allies may point out that the unemployment rate declined to 7.4 percent in 2008, but may not mention that the number of deployed overseas Filipino workers has ballooned from 686,461 in 1992 to 1,376,823 in 2008, totaling 8.1 million since 2001 (this may include some double-counting because some . Simply put, the current administration has not been able to create enough jobs locally.

Exports

The Philippines experienced resurgent growth in its export industries during the Ramos administration when export growth ranged from a low of 11.1 percent in 1992 to a high of 29.4 percent in 1995. Unfortunately, under the Arroyo administration, export growth has slowed to a range of 2.9 percent in 2003 to a high of 14.9 percent in 2006, slowing down further to 6.4 percent in 2007 and experiencing a negative growth of 2.7 percent in 2008. The Arroyo administration’s average export growth rate is only 6.34 percent, comparing dismally to the 18.9 percent average growth rate of the Ramos administration (source: National Statistics Office).

Foreign Direct Investments

The Arroyo administration can claim to have done better here than past administrations. The highest level net FDI of $2.92 billion was posted in 2006/2007 (source: Bangko Sentral ng Pilipinas). While the Arroyo administration attracted more direct foreign investments in terms of amount, the Philippines has nonetheless received much less FDI than Vietnam, Thailand, Malaysia and Indonesia.

Fiscal Stability

The highest fiscal deficit our country experienced (P210 billion or 5.3 percent of GDP) occurred in 2002. While the administration must be credited for convincing Congress to pass the Expanded Value Added Tax Law which contributed significantly to reducing the fiscal deficit to less than 1 percent of GDP, the Philippines continues to weaken in tax effort (tax revenues/GDP), declining from a high of 17 percent in 1997 to a low of 11.5 percent in the first quarter of 2009. The highest tax effort by this administration reached only 14.3 percent in 2006.

Assessing the above criteria, the Philippines’ performance under the stewardship of President Arroyo has been less than satisfactory and therefore I cannot agree with the PCCI view that Philippine business is happy with how the government has managed our economy.


(Jose L. Cuisia Jr. is a trustee of the Makati Business Club and chair of the Coalition Against Corruption. Please send your comments to makatibusinessclub@mbc.com.ph.)



Teves: Improved economy not being felt by the poor

By Charlie Lagasca
(The Philippine Star)
Updated August 17, 2009 12:00 AM

SANTIAGO CITY, Philippines – Finance Secretary Margarito Teves sees the growing population of Filipinos as one reason why benefits from the country’s economic upswing have not trickled down to the poor.

Speaking to The STAR, Teves said the country’s economic state can be likened to a family where lack of funds prevents the breadwinner from buying household necessities.

“Despite all this we had done our best to find additional sources of funds to help alleviate our economic situation,” he said.

Teves said the rise in population has resulted in smaller slices of the economic pie being distributed.

The country was also recovering from the worldwide financial crisis, he added.

Teves said investments will return once external economic factors like the world economy return to normal.

“Naturally, foreign businessmen want to be secure in their investments because they have to preserve their resources,” he said.

“Once we have weathered this financial crisis, we expect them to be back again.”

Based on last year’s survey, the Philippine population is now nearing 100 million, with an annual increase of almost six percent per annum.

Teves was in Santiago last Friday to grace the convention of the Regional Association of Treasurers and Assessors of Cagayan Valley at the Catholic Church run-University of La Sallete.:ohno::ohno:

STUDY: Real problem is so many are underemployed
Business Mirror
Written by Cai U. Ordinario
Monday, 17 August 2009 00:10
http://www.businessmirror.com.ph/home/top-news/14684-study-so-many-underemployed.html

THE real problem of the so-called employed labor force is that many are underemployed so that they earn less, according to Dr. Ana Maria Tabunda, Pulse Asia Inc. executive director and former dean of the University of the Philippines (UP) School of Statistics.

In a presentation at the Institute for Development and Econometric Analysis (Idea) Midyear Economic Briefing, Tabunda, also Idea president, said data collated in March show around 35 percent of those employed have unused working time and are looking for additional work to earn more.

Most of these individuals, Tabunda said, were located in the National Capital Region. She added that in the first quarter one in six, or 17 percent of working adults, have reduced working hours or reduced incomes. This appears to be the result of the global economic crisis, she said.

Earlier, the government had allowed employers to have reduced and flexible working time for their employees to prevent many workers being discharged.

”[Clearly] unemployment is not the problem, underemployment is. [Data showed evidence that there was a] deterioration in working arrangements and reduced benefits,” said Tabunda’s presentation titled “Prospects on Industries: Households and Consumption” at the UP School of Economics on Friday.

Tabunda also said the crisis, the biggest effect of which was seen in the first quarter, was felt particularly by those in Class D or the lower- income classes, although about 10 percent of these underemployed were from Classes A, B and C.

Another feature of the labor front in the first quarter, according to Tabunda, was that although many lost jobs here and abroad, as many as around 260,000 Filipinos also found new jobs within the quarter under  the survey.

This means, Tabunda said, that for those experienced workers, finding work was not so much as a problem as the quality and deteriorated work conditions that could be attributed to the crisis, coupled with the rise in inflation.

Tabunda said that inflation—mentioned by 58 percent of those surveyed—is also a foremost worry of Filipinos, and may have been an effect of the food crisis in the first quarter of 2008 when the cost of rice rose to P40 per kilo from the normal P18 to P24 per kilo.

Meanwhile, the National Statistics Office (NSO) said that in the first three years of the Arroyo administration, or 2001 to 2004, the lowest-paid workers were laborers and unskilled workers who earned a basic wage of below P100 to P149.

The NSO said they also composed more than one-third of those earning P150 to P199 daily.

The mean basic pay of wage and salary workers was reported at P237.99 in October 2004. The NSO in 2001 said this was P220.04 to P223.59 across all 2001 survey rounds.

Women wage and salary workers received higher basic pay for the period ranging from P225.59 to P243.28 while men had P216.14 to P234.79.

Remittances deepen inequities, says study
Business Mirror
Written by Cai U. Ordinario
Monday, 17 August 2009
http://www.businessmirror.com.ph/home/top-news/14682-remittances-deepen-inequities-says-study.html

IF you think migrant workers’ dollar remittances are helping raise, however minimally, the standard of living of Filipinos, including the poorest, data suggest a different profile of who these overseas workers actually are.

University of the Philippines School of Economics professor emeritus Dr. Edita Tan said most overseas Filipino workers (OFWs) with high incomes are from families in the economic classes A, B, and C who were able to send them to college or enabled them to enroll in skills training.

“Gains are actually felt more by higher-income classes than the lower-income class. This feeds into prevailing high inequality rates across income classes and across regions. OFW benefits tend to be skewed towards Metro Manila, Central Luzon and Southern Tagalog,” said Tan in a presentation titled “Prospects on OFW Deployment and Remittance Inflow” at the Institute for Development and Econometric Analysis (Idea) Midyear Economic Briefing on Friday.

Tan added that Family Income and Expenditures Survey (FIES) data showed that in 2004, mean per-capita annual income of families without OFWs was pegged at P33,969, or less than half the mean per-capita income of families with OFWs of P68,045.

Further, data showed that around 31.6 percent of Filipino families without OFWs belong to the poorest in terms of per-capita income, and only 4.7 percent of Filipino families with OFWs are in the category. “Both in per-capita income and expenditure, poverty incidence for households with OFWs is way below that of without OFW members.”

With the OFW phenomenon, Tan confirmed the growing scarcity of high-quality science and technology graduates left in the country because most of them, like nurses, computer programmers and other skilled personnel, are leaving the country for better incomes abroad.

Ay salamat at nakonsensiya din sa wakas si GMA!


Philippine leader cancels new jet order
August 16, 2009 - 5:14PM

Philippine leader Gloria Arroyo has cancelled an order for a presidential jet amid public outrage over her allegedly extravagant lifestyle during a financial crisis, her spokesman says.

The make and price of the aircraft were not disclosed but her spokesman, Cerge Remonde, said Arroyo "does not want more criticism about her spending".

"I am formally announcing the president has ordered the cancellation of the purchase of a presidential jet," Remonde said on Sunday.

Arroyo came under intense criticism after the New York Post reported this week that she and her officials ran up a $US20,000 ($A23,764) tab for dinner at a restaurant while on an official visit to the US.

The report triggered public condemnation and street protests in the Philippines, where, according to official data, about one third of the country's 90 million population lives on $A1.20 or less a day.

The presidential palace denied public funds had been spent on the dinner at the Le Cirque restaurant last month, saying that a rich Filipino architect whose brother is a political ally of Arroyo had paid the bill.

Remonde said on Sunday the purchase of the jet had been cancelled even though this "would have benefited the next presidents".

He said Arroyo's office was also preparing a report for Congress on expenses incurred during her trip to the US, where she became the first Southeast Asian leader to meet US President Barack Obama.

Arroyo was swept to power in 2001 after a military-backed popular revolt ousted her corruption-tainted predecessor, Joseph Estrada.

She served Estrada's remaining term in office and in 2004 won a highly contested second term amid allegations of cheating.

Her popularity has continued to drop since 2004, with her family accused of using the presidential office to enrich themselves.

Things looking up for RP
By Michelle Remo
Philippine Daily Inquirer
http://business.inquirer.net/money/topstories/view/20090816-220633/Things-looking-up-for-RP

The global economy is still in a crisis but there is a growing consensus among economists that the ongoing turmoil—the worst since the Great Depression of the 1930s—is already easing and the world economy has already embarked on its journey, albeit at a very gradual pace, toward recovery.

The slight decline in the US unemployment rate from the 26-year high of 9.5 percent in June to 9.4 percent in July, the 7.9-percent growth of China in the second quarter that beat most forecasts, and the decelerating drop in local exports are signs that economic conditions are improving.

The World Bank, the International Monetary Fund and other similar institutions are projecting that the world economy, after an expected contraction this year, could already register positive growth next year. The forecast is based on the assumption that the positive effects of the stimulus programs implemented by governments worldwide would already manifest themselves soon.

Given talk about the world returning to normalcy in the near future, policymakers around the globe are now being urged to plot so-called “exit strategies.” The term refers to the manner of reversing the loose fiscal and monetary policies that were intended to counter the slackening of growth.

The current crisis has forced central banks around the globe to bring down interest rates to record lows. These moves were meant to spur bank lending, which is needed to support consumption and investments. On the other hand, national governments have engaged in large deficit spending activities to counter the economic downturn.

In the case of the Philippines, the Bangko Sentral ng Pilipinas has slashed its key policy rates to historic lows while the national government temporarily abandoned its goal of wiping out the budget deficit.

Experts say that given the signs of stabilization, policymakers should now start thinking about an exit strategy. The timing of the “exit” is crucial, they say. Reversing the loose monetary and fiscal policies too early could choke recovery efforts, while keeping low interest rates and high budget deficits for too long could cause inflation to spiral and create asset bubbles in the future.

Too early

As far as the country’s economic managers are concerned, however, it is still too early to reverse the policies aimed at pump-priming. Nevertheless, they agree that the government should at least be drafting an exit plan now to avoid repercussions of a late implementation.

“Conditions are already better than they were last year ... [Government] still needs to continue stimulating the economy, but we also have to assure financial markets and investors that we will go back to our fiscal consolidation path once recovery takes place,” Finance Secretary Margarito Teves said Tuesday night in a roundtable discussion with the Inquirer’s business reporters and editors.

Prior to the crisis, the government was aiming to bring down its budget deficit from over P200 billion in early 2000s to zero by 2008. However, the latest crisis forced it to allow deficit spending to continue. It posted a budget gap of P68 billion last year, and expects the figure to swell to P250 billion this year.

However, the government has decided to start reducing its deficit again starting next year. Teves said that for 2010, the government aims to cap the deficit at P233 billion.

“Now, we are seeing a balanced budget by 2013,” Teves said.

Meanwhile, Amando Tetangco Jr., governor of the Bangko Sentral ng Pilipinas, says the country’s monetary authority was also seeing signs of recovery. Given this, he says, the low interest rate environment that the BSP introduced to help stimulate the economy should gradually be changed.

Speaking before members of the American Chamber of Commerce and Industry (Amcham) early this week, Tetangco said stabilization of the global economy would benefit emerging markets in Asia, including the Philippines, in terms of higher inflows of foreign investments.

Emerging markets to benefit

Analysts said investors, who have been pushed at the sidelines for quite some time because of the turmoil, are now in search for investment opportunities. Emerging markets like the Philippines are expected to corner a large share of investment inflows because of the resiliency they showed during the crisis (many of them, in fact, managed to avoid the recession suffered by the developed nations).

Signs of resurgence of investments were evident in the latest report by the BSP on foreign portfolio investments. The BSP reports that the total net inflows of “hot money” during the first seven months of the year reached $265.09 million, a turnaround from the net outflow of $576.62 million in the same period last year.

The gradual return of investments is a welcome development, Tetangco says. However, he also says that policymakers in the region should be cautious about this resurgence, saying an uncontrolled surge in capital inflows could create inflationary threats in the future.

Preventing inflation

“The emerging signs of stabilization of global financial markets and economic conditions are expected to encourage the gradual return of capital flows to Asia ... The key challenge is to conduct monetary policy so as to ensure that the additional resources provided by rising foreign capital inflows do not lead to inflationary pressures or to asset price bubbles,” Tetangco said in his speech.

Pressured to address the crisis, the BSP slashed its key policy rates by a total of 200 basis points from December to July, bringing down its overnight borrowing rate at a historic low of 4 percent.

Markets, however, expect the central bank to stop the easing cycle when its Monetary Board meets for the next policy rate-setting meeting on Aug. 20.


_____________________________


Asia: An astonishing rebound
From The Economist print edition
http://www.economist.com/opinion/displayStory.cfm?story_id=14214001

Asia’s emerging economies are leading the way out of recession; now they must make their recovery last...

IT NEVER pays to underestimate the bounciness of Asia’s emerging economies. After the region’s financial crisis of 1997-98, and again after the dotcom bust in 2001, outsiders predicted a lengthy period on the floor—only for the tigers to spring back rapidly. Earlier this year it was argued that such export-dependent economies could not revive until customers in the rich world did. The West still looks weak, with many economies contracting in the second quarter, and even if America begins to grow in the second half of this year, consumer spending looks sickly. Yet Asian economies, increasingly decoupled from Western shopping habits, are growing fast.

The four emerging Asian economies which have reported GDP figures for the second quarter (China, Indonesia, South Korea and Singapore) grew by an average annualised rate of more than 10% (see article). Even richer and more sluggish Japan, which cannot match that figure, seems to be recovering faster than its Western peers. But emerging Asia should grow by more than 5% this year—at a time when the old G7 could contract by 3.5%. Western politicians should brace themselves for more talk of economic power drifting inexorably to the East. How has Asia made such an astonishing rebound?

Out of smoke and mirrors, say some Western sceptics. They claim China’s bounceback is yet another fake. The country’s numbers are certainly dodgy: the components of GDP do not add up, and the data are always published suspiciously early. China’s economy probably slowed more sharply in late 2008 than the official numbers suggest. But other indicators, which are less likely to be massaged, confirm that China’s economy is roaring back. Industrial production rose 11% in the year to July; electricity output, which fell sharply last year, is growing again; and car sales are 70% higher than a year ago.

And surely the whole of Asia cannot be engaged in a statistical fraud. South Korea’s GDP grew by an annualised 10% in the second quarter. Taiwan’s probably increased by even more: its industrial output jumped by an astonishing annualised rate of 89%. India was hit less hard by the global recession than many of its neighbours because it exports less, but its industrial production has also perked up, rising by a seasonally adjusted rate of 14% in the second quarter. Output in most of the smaller Asian economies is still lower than a year ago, because they suffered steep downturns late last year. But at economic turning points, one should track quarterly changes.

Thrift in the boom, stimulus in the slump

Asia’s rebound has several causes. First, manufacturing accounts for a big part of several local economies, and industries such as cars and electronics are highly cyclical: output drops sharply in a downturn and then spurts in the upturn. Second, the region’s decline in exports in late 2008 was exacerbated by the freezing up of global trade finance, which is now flowing again. Third, and most important, domestic spending has bounced back because the fiscal stimulus in the region was bigger and worked faster than in the West. India aside, the Asians entered this downturn with far healthier government finances than rich countries, allowing them to spend more money. Low private-sector debt made households and firms more likely to spend government handouts; Asian banks were also in better shape than their Western counterparts and able to lend more. Asia’s prudence during the past decade did not allow it to escape the global recession, but it made the region’s fiscal and monetary weapons more effective.

Western populists will no doubt once again try to blame their own sluggish performance on “unfair” Asia. Ignore them. Emerging Asia’s average growth rate of almost 8% over the past two decades—three times the rate in the rich world—has brought huge benefits to the rest of the world. Its rebound now is all the more useful when growth in the West is likely to be slow. Asia cannot replace the American consumer: emerging Asia’s total consumption amounts to only two-fifths of America’s. But it is the growth in spending that really matters. In dollar terms, the increase in emerging Asia’s consumer-spending this year will more than offset the drop in spending in America and the euro area. This shift in spending from the West to the East will help rebalance the world economy.

Beijing, Bangkok and Bangalore: beware boastfulness

It is easy to boost an economy with lots of government spending. But Asian policymakers now face two difficult problems. Their immediate dilemma is how to sustain recovery without inflating credit and asset-price bubbles. Local equity and property markets are starting to froth. But policymakers’ reluctance to let their currencies rise faster against the dollar means that their monetary policy is, in effect, being set by America’s Federal Reserve, and is therefore too lax for these perkier economies. The longer-term challenge is that once the impact of governments’ fiscal stimulus fades, growth will slow unless economic reforms are put in place to bolster private spending—something Japan, alas, never did (see article).

Part of the solution to both problems—preventing bubbles and strengthening domestic spending—is to allow exchange rates to rise. If Asian central banks stopped piling up reserves to hold down their currencies, this would help stem domestic liquidity. Stronger currencies would also shift growth from exports to domestic demand and increase households’ real spending power—and help ward off protectionists in the West.

Hubris is the big worry. With the gap in growth rates between emerging Asia and the developed world heading towards a record nine percentage points this year, Chinese leaders have taken to warning America about its lax monetary policy (while Washington has stopped lecturing China about the undervalued yuan). But it would be a big mistake if Asia’s recovery led its politicians to conclude that there was no need to change their exchange-rate policies or adopt structural reforms to boost consumption. The tigers’ faster-than-expected rebound from their 1997-98 financial crisis encouraged complacency and delayed necessary reforms, which left them more vulnerable to the global downturns in 2001 and now. Make sure this new rise is not followed by another fall.

Things looking up for RP
By Michelle Remo
Philippine Daily Inquirer
http://business.inquirer.net/money/topstories/view/20090816-220633/Things-looking-up-for-RP

The global economy is still in a crisis but there is a growing consensus among economists that the ongoing turmoil—the worst since the Great Depression of the 1930s—is already easing and the world economy has already embarked on its journey, albeit at a very gradual pace, toward recovery.

The slight decline in the US unemployment rate from the 26-year high of 9.5 percent in June to 9.4 percent in July, the 7.9-percent growth of China in the second quarter that beat most forecasts, and the decelerating drop in local exports are signs that economic conditions are improving.

The World Bank, the International Monetary Fund and other similar institutions are projecting that the world economy, after an expected contraction this year, could already register positive growth next year. The forecast is based on the assumption that the positive effects of the stimulus programs implemented by governments worldwide would already manifest themselves soon.

Given talk about the world returning to normalcy in the near future, policymakers around the globe are now being urged to plot so-called “exit strategies.” The term refers to the manner of reversing the loose fiscal and monetary policies that were intended to counter the slackening of growth.

The current crisis has forced central banks around the globe to bring down interest rates to record lows. These moves were meant to spur bank lending, which is needed to support consumption and investments. On the other hand, national governments have engaged in large deficit spending activities to counter the economic downturn.

In the case of the Philippines, the Bangko Sentral ng Pilipinas has slashed its key policy rates to historic lows while the national government temporarily abandoned its goal of wiping out the budget deficit.

Experts say that given the signs of stabilization, policymakers should now start thinking about an exit strategy. The timing of the “exit” is crucial, they say. Reversing the loose monetary and fiscal policies too early could choke recovery efforts, while keeping low interest rates and high budget deficits for too long could cause inflation to spiral and create asset bubbles in the future.

Too early

As far as the country’s economic managers are concerned, however, it is still too early to reverse the policies aimed at pump-priming. Nevertheless, they agree that the government should at least be drafting an exit plan now to avoid repercussions of a late implementation.

“Conditions are already better than they were last year ... [Government] still needs to continue stimulating the economy, but we also have to assure financial markets and investors that we will go back to our fiscal consolidation path once recovery takes place,” Finance Secretary Margarito Teves said Tuesday night in a roundtable discussion with the Inquirer’s business reporters and editors.

Prior to the crisis, the government was aiming to bring down its budget deficit from over P200 billion in early 2000s to zero by 2008. However, the latest crisis forced it to allow deficit spending to continue. It posted a budget gap of P68 billion last year, and expects the figure to swell to P250 billion this year.

However, the government has decided to start reducing its deficit again starting next year. Teves said that for 2010, the government aims to cap the deficit at P233 billion.

“Now, we are seeing a balanced budget by 2013,” Teves said.

Meanwhile, Amando Tetangco Jr., governor of the Bangko Sentral ng Pilipinas, says the country’s monetary authority was also seeing signs of recovery. Given this, he says, the low interest rate environment that the BSP introduced to help stimulate the economy should gradually be changed.

Speaking before members of the American Chamber of Commerce and Industry (Amcham) early this week, Tetangco said stabilization of the global economy would benefit emerging markets in Asia, including the Philippines, in terms of higher inflows of foreign investments.

Emerging markets to benefit

Analysts said investors, who have been pushed at the sidelines for quite some time because of the turmoil, are now in search for investment opportunities. Emerging markets like the Philippines are expected to corner a large share of investment inflows because of the resiliency they showed during the crisis (many of them, in fact, managed to avoid the recession suffered by the developed nations).

Signs of resurgence of investments were evident in the latest report by the BSP on foreign portfolio investments. The BSP reports that the total net inflows of “hot money” during the first seven months of the year reached $265.09 million, a turnaround from the net outflow of $576.62 million in the same period last year.

The gradual return of investments is a welcome development, Tetangco says. However, he also says that policymakers in the region should be cautious about this resurgence, saying an uncontrolled surge in capital inflows could create inflationary threats in the future.

Preventing inflation

“The emerging signs of stabilization of global financial markets and economic conditions are expected to encourage the gradual return of capital flows to Asia ... The key challenge is to conduct monetary policy so as to ensure that the additional resources provided by rising foreign capital inflows do not lead to inflationary pressures or to asset price bubbles,” Tetangco said in his speech.

Pressured to address the crisis, the BSP slashed its key policy rates by a total of 200 basis points from December to July, bringing down its overnight borrowing rate at a historic low of 4 percent.

Markets, however, expect the central bank to stop the easing cycle when its Monetary Board meets for the next policy rate-setting meeting on Aug. 20.

Although moot and academic after malacanang cancelled the jet plane order, this is worth reading.


Analysis

Jet purchase too ambitious for leader of a poor nation

By Amando Doronila
Philippine Daily Inquirer
First Posted 04:38:00 08/17/2009


Convoluted logic

The bidding was rushed. The aircraft is expected for delivery at the end of the year following the bidding process that starts this month. It will be in use during the balance of Ms Arroyo’s term.

Malacañang justified the bidding, saying the new aircraft would also benefit Ms Arroyo’s successors and greatly reduce security risks and other dangers for presidents using aging planes or chartering aircraft for their use.

A Malacañang official said, with convoluted logic, that the Presidential Air Wing (PAW) of the Philippine Air Force had two planes, both between 29 and 50 years old and were costly to maintain.

“Under the present arrangement, the PAW needs at least two fixed-wing jets, for every presidential engagement. With only one available, the Office of the President has to charter civilian aircraft to address the airlift requirements of the President. This is not only very costly but also poses high-security risk that may jeopardize life and limb of the President,” the official said.

Real intention

Why should an incumbent President whose term is ending in May take it upon herself to provide safe transport for her successor, while diverting a huge sum from economic projects that require higher priority than the convenience and security of future presidents?:bash:

Malacañang said: “It is but fitting and proper that whoever is the sitting president should be afforded proper amenities befitting his/her position as head of state. His or her personal safety and security is one of the prime considerations of the State.”

If this plan to purchase a new presidential aircraft has done any public service at all, it reveals beyond doubt that the President intends to cling to office beyond May 2010. At the very least, it provides evidence that she still looks forward to more foreign travels.:wtf:

The plan preempts the decisions of her successors concerning their own travel plans and their security and safety.

This plan is too ambitious for a developing economy to afford. Can anyone name any head of state of any rich economy being provided exclusive air transport, except the US President, with Air Force One, and the Queen of England, by the Royal Air Force?

We have the aspirations of the rich and the pocket of the pauper.:bash:

(Editor’s note: This piece was written before Malacañang announced on Sunday that Ms Arroyo had canceled the plan to buy a new presidential jet.)

Editorial:

Let’s protect our farmers



Sunday, 16 August 2009 23:39
Jimbo Albano / BusinessMirror


The question is raised in light of the obvious conflict between our commitment to the Asean Free Trade Area-Common Effective Preferential Tariff (Afta-CEPT) and the need to protect local farmers, who stand to suffer from the implementation early next year of the reduction to between zero and 5 percent of the tariffs on corn, poultry and swine.

The issue is being raised by Alyansa Agrikultura, composed of 44 federations and organizations representing the agricultural sector. The group is urging President Arroyo to adopt the position taken by the Department of Agriculture (DA) to seek a five-year suspension of the full implementation of tariff cuts set next year for the three agricultural subsectors.

It’s a reasonable position. For one thing, the government had earlier asked Afta-CEPT for the same concession in the case of rice and sugar.

For another, the local poultry and swine sectors are two of the least competitive sectors compared with other Asean countries. The current farm-gate price for live chicken in the Philippines is P66 per kilogram (kg), which is 41 percent higher than Thailand’s P48 per kg. In the case of swine, our farm-gate price is P85/kg, which is 38 percent higher than Thailand’s P60/kg.

Industry statistics reveal Asean countries export 2.4 million metric tons (MT) of chicken per year and import 404,000 MT. For swine, Afta countries export 570,000 MT and import 80,000 MT.

Alyansa Agrikultura fears the Asean exporters of poultry and swine are likely to target the Philippine market if the scheduled zero to 5-percent tariff is implemented starting January 1, 2010, thus, rendering local poultry and swine producers at a great price disadvantage.

Current Afta-CEPT rates of 40 percent for poultry and 35 percent for swine give adequate protection for these sectors, according to the group, but it warns that a drastic tariff reduction in less than five months “would jeopardize the livelihoods of the poultry and swine producers at a time when jobs are scarce and poverty is increasing.” We agree.

Another cogent reason for the government to heed the recommendation of the farmers’ group is that the poultry and swine sectors are simply not ready to compete in Afta. Reason: The national government has failed to provide the appropriate budget to the DA as mandated by the Agriculture and Fisheries Modernization Act (Afma) of 1997. The agriculture sector should have received P30 billion a year after the first year of Afma’s implementation, but “this never happened,” according to the farmers.

Protection of the country’s agricultural sector is imperative considering its measly growth of 1.53 percent in the first semester. The DA has targeted a full-year growth of 3 percent, but this looks unattainable since this would require an expansion of 4.5 percent in the second half.

The fundamental law says the state must ensure the prosperity of the nation and free the people from poverty through policies that ensure a rising standard of living and an improved quality of life for all. With the country’s agricultural sector threatened by the dire prospects of borderless trade and drastic tariff reductions, the government must look no further than the Constitution for a way out of our dilemma.

There, it is clearly provided that in our relations with other states, the paramount consideration shall be national interest. And what better way to uphold the national interest than to protect our own farmers?

Protect our farmers now!

http://www.businessmirror.com.ph/images/stories/Daily_Images/2009/August/08172009/oped-pic.jpg

From
Lets protect our Farmers
Business Mirror
August 17, 2009

Reject the stupid globalization paradigm and protect our industries now!:cheers:

Business sector unhappy with Arroyo performance
By Jose L. Cuisia, Jr.
Philippine Daily Inquirer
08/15/2009
http://opinion.inquirer.net/inquireropinion/columns/view/20090815-220334/Business-unhappy-with-Arroyo-performance


A recent article in a local daily quoted Philippine Chamber of Commerce and Industry president Edgardo Lacson saying, “…as far as the economy is concerned, they are satisfied because the country has not entered into a recession and they think the economy will grow by 1.9 percent this year.” Lacson is entitled to his view, but I disagree that the rest of the business sector is happy with President Gloria Macapagal-Arroyo’s economic management.


Many in the business sector feel the Arroyo administration has failed to deliver satisfactory performance based on these criteria: competitiveness, employment, export growth, foreign direct investments, and fiscal stability.

Competitiveness

The World Competitiveness Yearbook last May revealed that out of 57 countries, the Philippines ranked 43rd in competitiveness, the worst among 13 Asia-Pacific countries. Based on four lead factors, we ranked 56th in supply infrastructure, 51st in economic performance, 42nd in government efficiency, and 32nd in business efficiency. The Global Competitiveness Index, published by the World Economic Forum last year, reflected equally depressing results—we ranked 71st out of 134 countries surveyed.

The most problematic factor cited for doing business in the Philippines was corruption. Foreign investors attribute the extent of corruption as one of the greatest hindrances to making long-term direct investments in the Philippines.

It is distressing that competitiveness has deteriorated. Clearly, on this aspect the country has fared poorly under Arroyo’s administration.

Employment

Despite GMA’s repeated promise to create 1 million new jobs a year, the highest unemployment rate since 1992 of 11.8 percent was recorded in 2004 (source: National Statistics Office, Neda). Arroyo allies may point out that the unemployment rate declined to 7.4 percent in 2008, but may not mention that the number of deployed overseas Filipino workers has ballooned from 686,461 in 1992 to 1,376,823 in 2008, totaling 8.1 million since 2001 (this may include some double-counting because some . Simply put, the current administration has not been able to create enough jobs locally.

Exports

The Philippines experienced resurgent growth in its export industries during the Ramos administration when export growth ranged from a low of 11.1 percent in 1992 to a high of 29.4 percent in 1995. Unfortunately, under the Arroyo administration, export growth has slowed to a range of 2.9 percent in 2003 to a high of 14.9 percent in 2006, slowing down further to 6.4 percent in 2007 and experiencing a negative growth of 2.7 percent in 2008. The Arroyo administration’s average export growth rate is only 6.34 percent, comparing dismally to the 18.9 percent average growth rate of the Ramos administration (source: National Statistics Office).

Foreign Direct Investments

The Arroyo administration can claim to have done better here than past administrations. The highest level net FDI of $2.92 billion was posted in 2006/2007 (source: Bangko Sentral ng Pilipinas). While the Arroyo administration attracted more direct foreign investments in terms of amount, the Philippines has nonetheless received much less FDI than Vietnam, Thailand, Malaysia and Indonesia.

Fiscal Stability

The highest fiscal deficit our country experienced (P210 billion or 5.3 percent of GDP) occurred in 2002. While the administration must be credited for convincing Congress to pass the Expanded Value Added Tax Law which contributed significantly to reducing the fiscal deficit to less than 1 percent of GDP, the Philippines continues to weaken in tax effort (tax revenues/GDP), declining from a high of 17 percent in 1997 to a low of 11.5 percent in the first quarter of 2009. The highest tax effort by this administration reached only 14.3 percent in 2006.

Assessing the above criteria, the Philippines’ performance under the stewardship of President Arroyo has been less than satisfactory and therefore I cannot agree with the PCCI view that Philippine business is happy with how the government has managed our economy.


(Jose L. Cuisia Jr. is a trustee of the Makati Business Club and chair of the Coalition Against Corruption. Please send your comments to makatibusinessclub@mbc.com.ph.)

Makati Business Club is against GMA. They openly declared that GMA should resign. They supported the opposition rallies organized by Binay in Makati. They criticized all her SONAs. What else can you ask for?

PCCI and other Chambers are happy.... so, it depends who's talking.

Budget gap seen at 3.2% of GDP this year
By LEE C. CHIPONGIAN
August 16, 2009, 1:14pm

Budget Secretary Rolando Andaya Jr. is confident the government can contain the budget deficit to 3.2 percent of gross domestic product (GDP) this year but readjusted next year’s fiscal program higher to 2.8 percent of GDP from previous estimate of only two percent.

“We’re still comfortable that P250 billion is our (budget gap) ceiling for 2009. We can keep that,” Andaya, also chair of the inter-agency Development Budget Coordinating Committee (DBCC) said.

“For 2010, we’re looking at a deficit equivalent to 2.5 percent to 2.8 percent of GDP,” he added.

Andaya noted that the same issues are there, such as spending constraints which would in part, contain the budget gap this year. “The pace of spending would be part of why we think we will not exceed the program but there will be improvements in how we spend,” he added.

As per the latest DBCC meeting, the deficit program for the year is still P250 billion. The Department of Finance has programmed a budget deficit of P62.45 billion for the third quarter and P32.4 billion for the last quarter of the year. In the first half of the year, the budget gap amounted to P153.4 billion, which was a little lower than program of P155.1 billion.

In June, which was the last time DBCC tweaked fiscal numbers, it approved a 2010 deficit program of P166.7 billion or two percent of GDP on improved economic and revenue environment. DBCC, which tracks and programs macro-economic targets and assumptions in a three-year path, forecasts GDP will grow by 2.6 percent next year from 0.8-1.8 percent this year.

Last year the budget deficit amounted to P68.1 billion or less than one percent of GDP, while in 2007 the shortfall was lower at P12.4 billion which gave budget and finance officials hope at the time that the 2008 balanced budget goal will be met.

The International Monetary Fund said government’s decision to readjust budget deficit ceiling higher to 3.2 percent of GDP is an appropriate move and a “neutral fiscal stance” and that it would “unlikely unsettle investors in view of the global recession.”
http://www.mb.com.ph/node/216102/budget-gap-

Clark weathers global economic storm

By Tonette Orejas
Philippine Daily Inquirer
First Posted 23:21:00 08/16/2009

Filed Under: Economy and Business and Finance

CLARK FREEPORT—The 4,400-hectare business enclave that the government carved out of the 23,000-hectare former American military air base here is riding through the global economic crisis, even if most of the investments here are sensitive to trends overseas.

Benigno Ricafort, president of the state-owned Clark Development Corp. (CDC), said the freeport was making a “strong showing” as an investment destination.

Local and foreign firms put in 36 new projects worth P1.05 billion in the first six months of 2009.

At least 15 of these are in the services sector, seven each in information technology (IT) and commerce, three in industrial, one each in aviation and housing, and the rest provide institutional support.


Increasing tax take

On the other hand, the 417 locators here remitted P1.84 billion in income taxes of employees, customs duties and business taxes to the Bureaus of Internal Revenue and Customs in 2008.

Their total exports, $949.9 million in 2008, reached $198.7 million from January to March this year, a little lower than the same period in 2008 as production of garments firms had slowed down, CDC reports showed.

At least 3,000 workers, mostly in the garments sector, lost their jobs but Clark-based companies still maintained a total work force of 55,415.

No company has closed so far, retaining Clark’s projects at 828, with a total investment of P37.84 billion.

Texas Instruments poured in $1 billion. It has completed its $300-million building, targeting to hire at least 3,000 workers once it hits full operations.

Singapore Airlines Engineering Co. and Cebu Pacific pooled $10 million for an aircraft maintenance facility at the Clark Civil Aviation Complex.

With the Global Clark Gateway Logistics, valued at $1.2 billion, and the Clark International Airport Corp. Terminal, valued at $1.3 billion, the freeport’s main zone has only 300 hectares left for industrial and commercial development.

“These are signs of steady growth,” Ricafort told the Inquirer.


Height restrictions lifted

At least 22 projects are expected to be back on track with the lifting in July of the height restrictions on buildings constructed in the western part of the freeport.

This came after the Civil Aviation Authority of the Philippines (CAAP), with approval from the International Civil Aviation Organization, declared that part a “no fly zone” of the Diosdado Macapagal International Airport (DMIA), which occupies 2,500 hectares in the main zone.

“We are optimistic that our [foreign direct investments] will continue to improve in the succeeding months with this recently resolved issue,” Ricafort said.

The CAAP imposed the restriction in early 2008, setting the height of buildings at a maximum of two stories.

The 22 commercial and industrial buildings are worth $750 million in investments and include nine tourism projects, two IT ventures and a service entity.

These include the tire company Yokohama’s $100-million expansion, which would mean 2,000 more jobs.

HDL Steel Pipes projected an investment of $65 million and employment of 500 workers.

The height limit issue also delayed the awarding of a contract to develop a 309-hectare resort and tourism estate worth $200 million, with an employment target of 1,000. Also left hanging was a $3-billion project by a Korean semiconductor company that will hire some 5,000 workers.

“The lost multiplier effects of the withheld investments in terms of employment and [additional] values can be staggering,” Ricafort said.

He said the CDC had strengthened its after-sales service to help investors do business at least cost and time.

Clark weathers global economic storm

By Tonette Orejas
Philippine Daily Inquirer
First Posted 23:21:00 08/16/2009

These include the tire company Yokohama’s $100-million expansion, which would mean 2,000 more jobs.



This is good news!

We might have lost Goodyear philippines manufacturing operations here, but at least still have Yokohama Philippines!:cheers::):banana:

This is good news!

We might have lost Goodyear philippines manufacturing operations here, but at least still have Yokohama Philippines!:cheers::):banana:

We better switch to Yokohama tires .... :)

MPIC to invest P60 billion (US$1.26 Billion) in 5 years
By Zinnia B. Dela Peña (The Philippine Star) Updated August 17, 2009 12:00 AM
http://www.philstar.com/Article.aspx?articleId=496604&publicationSubCategoryId=66

HONG KONG — Poised for growth, Metro Pacific Investments Corp. (MPIC) is pumping in over P60 billion in the next five years.

In a press briefing held at First Pacific Co. Limited’s headquarters in Hong Kong, MPIC president Jose Ma. Lim said a large chunk of the programmed capital budget or approximately P32 billion will be channeled to the continued upgrade of Maynilad Water Services Inc.’s facilities and distribution network in line with the group’s goal of providing 24-hour, uninterrupted water supply.

The private water concessionaire for the West Zone is targeting to boost its billed volume by more than 70 percent and reduce its non-revenue water to 40 percent.

Lim said about P26 billion will be used to enlarge its tollroad business, under Metro Pacific Tollways Corp. (MPTC) Lim said MPIC is also willing to spend P4.11 billion to give Manila North Harbor a long-delayed facelift.

The company intends to pursue a P12-billion deal with businessman Regis Romero for a 25-year contract to reconfigure the existing port to modern specifications and expand the operational area from 52 hectares to 70 hectares.

The Manila North Harbor which handles more than 85 percent of the domestic containerized and breakbulk cargo is expected to give a rate of return of 25 percent.

He expressed confidence that the contribution of Maynilad, MPTC and healthcare unit, will grow by 45 percent, 12 percent and 18 percent, respectively (from 2009 to 2013) to accelerate the expansion and improvement of its water distribution, tollroads, and healthcare services, and to hopefully modernize the country’s biggest domestic port, the Manila North Harbor.

Among MPTC’s projects include Segment 8.1 which will connect the NLEX from Mindanao Avenue to Valenzuela City; Segment 9 and 10 covering a distance of eight kilometers from NLEx to MacArthur Highway in Valenzuela and Port Area in Manila; and the NLEx-SLEx Connector Road Expressway from C3 in Caloocan City to Gil Puyat Avenue in Makati City.

About P2 billion has been set aside for the rehabilitation of its hospitals as well as the purchase of new equipment and facilities.

MPIC has been aggressively building up its healthcare service portfolio in line with its vision to establish the first nationwide chain of premiere hospitals in the Philippines.

“Metro Pacific is reaping the rewards of prior investments and planting the seeds for future growth. We are reporting record results, exciting growth prospects for our portfolio companies, a new investment in the largest electricity distributor in the country and a potential investment for the operation of one o the largest ports in the country,” Lim said.

Manuel V. Pangilinan, chairman of MPIC, said 80 percent of First Pacific’s investments are located in the Philippines with the balance in Southeast Asia.

Lim said MPIC’s proposed investment in Meralco is also expected to boost the holding firm’s revenues and exert significant influence over the operations of the company.

“We haven’t included the potential income from Meralco. We hope to close anytime between now and October 17. We hope to close the deal soon so we can equitize the earnings of Meralco.”

By the end of the year, MPIC is seen to complete the acquisition of 144.385 million shares (equivalent to a 13 percent stake in Meralco) for P18.2 billion with an average cost of P126 per share.

Funding for the purchase will come from a combination of shares in MPIC and cash.

Pangilinan said the group is open to acquiring additional Meralco shares at the right price.

We should review all our globalization policy because our country did not benefit from it.:ohno:

-:)- Do not wait for the United States to bail your county, I don't want my tax money wasted.

RP remittances hit record high of $1.5 billion in June
(philstar.com) Updated August 17, 2009 03:31 PM

MANILA, Philippines (AP) -- Millions of Filipinos working overseas sent home a record high $1.5 billion in June, up 3.3 percent from last year, allaying fears that remittances will dry up amid the global slowdown, officials said today.

The June data brought total remittances for the first half of the year to $8.5 billion, up 2.9 percent from a year ago, the Bangko Sentral ng Pilipinas (BSP) said.

Nearly 10 percent of the country's 90 million people work abroad — many as nurses, maids, engineers, construction workers and seamen. Last year, overseas Filipinos sent home $16.4 billion, equal to 10.4 percent of the country's gross domestic product and fueling domestic consumption.

The World Bank had earlier projected a 4 percent drop in remittances this year but BSP Governor Amando Tetangco said that signs of a global economic recovery "affirmed the positive outlook for steady remittances for 2009."

Tetangco credited the sustained demand for Filipino labor as well as improved financial services offered by banks for wiring the money to the Philippines.

The major sources of remittances are the US, Canada and the Middle East.
http://www.philstar.com/Article.aspx?articleId=496833&publicationSubCategoryId=200

-:)- Do not wait for the United States to bail your county, I don't want my tax money wasted.

Honey, don't be too proud. You country is not as rich as before. You actually needed money from China. We have survived on our own and that shall remain for the years to come. For the meantime, tell your government to focus bailing out your sinking multinationals:lol:

-:)- Do not wait for the United States to bail your county, I don't want my tax money wasted.

Dont worry about the Philippines dude, worry about your own country in doldrums instead.:)

And by the way, dont let your tax money wasted by your government by bailing out mismanaged financial firms Like AIG and Citibank and US clunker auto manufacturers like GM, Ford and Chrysler.:lol::)

^^ You got him PAWNED!!! :lol:

I'll be more amused if you guys keep posting the doom and gloom articles regarding the United States, carry on.
As far as I'm concerned, I've got no complaints and enjoying my life in the United States. It does not seem the same way for you guys in the Philippines.:)

^^ You got him PAWNED!!! :lol:

As if he is paying taxes...:lol:

I'll be more amused if you guys keep posting the doom and gloom articles regarding the United States, carry on.
As far as I'm concerned, I've got no complaints and enjoying my life in the United States. It does not seem the same way for you guys in the Philippines.:)

We are enjoying our lives here. Not grandiose but comfortable. We eat 3 times a day. And the best of all we don't have to wipe some old white's ass to live a comfortable life.

As if he is paying taxes...:lol:

TNT much? :lol:

We really should examine thoroughly our policy regarding globalization. We don't wanna follow the footsteps of the United States, do we?

:DDon't worry you won't be getting a single penny of it. Ah, globalization may the best country survive. Don't hold your breath.:cheers:

:DDon't worry you won't be getting a single penny of it. Ah, globalization may the best country survive. Don't hold your breath.:cheers:

Im not worried.:):cheers:

Well, good luck too. :lol:

I hope globalization will bring more jobs to more Americans..:lol:

You should be worried, all those call center jobs you have in the Philippines will be gone courtesy of globalisation.:) Night, night, bedtime for me.:)

You should be worried, all those call center jobs you have in the Philippines will be gone courtesy of globalisation.:) Night, night, bedtime for me.:)

Dont worry, with American minimum wage and benefits still sky high (compared to third world minimum wage and benefits like the Philippines), you will see more US BPOs going to the Philippines because of globalization) .:lol::cheers:

Good night...and pray to GOD that the US will recover soon because you might wake up as another unemployed American tomorrow..:lol::cheers:

-:)- Do not wait for the United States to bail your county, I don't want my tax money wasted.

yeah. pass your healthcare reform first. that is if the insane people in the republican party don't start a coup d'etat first.

We are enjoying our lives here. Not grandiose but comfortable. We eat 3 times a day. And the best of all we don't have to wipe some old white's ass to live a comfortable life.


:lol::lol:

but still we're poor..................

P1.2 billion earmarked for presidential jet to be used for anti-hunger program

(The Philippine Star)
Updated August 18, 2009 12:00 AM

MANILA, Philippines - The P1.2-billion earmarked for a brand new presidential jet would be used to fund the expansion of the government’s anti-hunger and poverty alleviation programs, Malacañang said yesterday.

Deputy presidential spokeswoman Lorelei Fajardo said President Arroyo reached the decision after considering “suggestions and recommendations.”

“The recommendation to buy the jet was considered by the Palace but since there are already recommendations and suggestions that this (P1.2 billion) be used for other purposes, the President considered the recommendations and suggestions,” she said.

The President has ordered the government’s cash subsidy program expanded to cover one million families.

At present, 700,000 families (around 4.5 million individuals) or five percent of the population are benefiting from the program.

In her directive to Social Welfare Secretary Esperanza Cabral at Sultan Naga Dimaporo in Lanao del Norte, Mrs. Arroyo said P5 billion would be allocated for the expanded program.

“There are too many poor families,” she said.

“I am working to extend the benefits of the program to as many as 20 percent of the country’s 4.6 million poor families.”

Mrs. Arroyo said the Bolsa Familia program in Brazil involves cash subsidies to the poor to boost school attendance and access to health services.

“That may seem overly ambitious but during my recent visit to Brazil, I learned that a similar program there has universal coverage,” she said.

In the Philippines, the program is being implemented under the name Pantawid Pamilyang Pilipino Program.

Under the program, conditional cash transfer certificates are handed out to identified poor families.

The program provides cash grant packages to the beneficiaries in the form of a health and nutrition cash grant amounting to P500 a month per household.

An education cash grant amounting to P300 per month is also given for each of the children of the households, up to a maximum of three children per household.

Overall, a household with three qualified children could receive a subsidy of P1,400 per month or P15,000 annually as long as they comply with the conditions, including:

• Pregnant women must get pre- and post-natal care and child birth must be attended by skilled/trained health professionals;

• Parents must attend responsible parenthood sessions/mother’s classes/parent effectiveness seminars;

• Children 0-5 years must get regular health check-up and vaccinations;

• Children 3-5 years old must attend daycare/pre-school at least 85 percent of the time; and

• Children 6-14 years old must attend school at least 85 percent of the time.

Recently, Mrs. Arroyo issued an executive order creating local anti-hunger task forces nationwide to improve the implementation of the national anti-hunger program.

On Thursday, the Union of Local Authorities of the Philippines will launch an anti-poverty intervention program to ensure the educational development of poor children.

Mandaluyong Mayor Benjamin Abalos Jr., ULAP president, said the program will initially support some 8,555 families nationwide.

“With five children per municipality or city and with their families, this will translate into more than 8,000 children and their families to be benefited by the ULAP project,” he said.

“That is a huge impact on the lives of these poor families. With the local government units’ leadership and genuine support from both government and project donors, these families can eventually become more productive citizens.”

More than 4,000 families have benefited from the World Bank-funded poverty alleviation program of the Department of Social Welfare and Development, officials said yesterday.

Secretary Cabral said the DSWD’s Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) program has received the highest funding among 12 WB-funded projects in the country based on its 2009 Portfolio Review. – Paolo Romero, Marvin Sy, Helen Flores

Agriculture pushes anti-poverty projects

P5-B rural infrastructure plans partly funded by ADB

Manila Times
By Ira Karen Apanay, Senior Reporter
August 18, 2009

A TOTAL of P5-billion rural infrastructure projects funded with assistance from the Asian Development Bank (ADB) that aims to combat poverty in 779 of the country’s poorest municipalities are currently being implemented by the Department of Agriculture, an official said Monday.

Agriculture department Undersecretary for Field Operations Jesus Emmanuel Paras said the $150-million Rural Productivity Enhancement Sector (InfRES) Project involves the construction of farm-to-market roads, community-owned irrigation systems, potable water supply as well as capacity-building programs for local governments that will benefit from this anti-poverty initiative.

Paras said that the Agriculture department has already completed 76.2 percent of the physical infrastructure component of the InfRES project.

The project, which is being carried out in partnership with the local government units of the beneficiary-towns, covers 779 of the poorest towns in 41 provinces in Southern Luzon, Bicol. Eastern Visayas and the whole of Mindanao, Paras said.

Paras, who is the director of the InfRES project, said that of the targeted 1,478 kilometers of FMRs, 1,092 kilometers are either finished or in the final stages of completion, representing an accomplishment rate of 74 percent.

“Out of the targeted 1,454 hectares to be serviced by the project’s community-owned irrigation systems, 1,454 hectares are now irrigated for a completion rate of 100 percent, while 18 [percent] of 49 percent out of the targeted 37 potable water systems have been built,” Paras added.

Paras explained that the bulk of the funding went into the roads, irrigation systems and potable water systems.

Of the 144 contract packages awarded under the project, 56 have been substantially completed and 88 are being implemented full blast.

Released funds have totaled P1,054,510,639 billion so far or roughly one seventh of the total loan, Paras said. A total of 81 percent of the released funds have been liquidated at the local government level.

“All the projects under the ADB-funded initiative were and are being closely monitored through consultation visits by our Department of Agriculture Regional Field Units, whose staffs also extended technical aid to the LGUs concerned,” Paras said.

According to InfRES Program Manager Director Roy Abaya, “for the roads and irrigation systems to gain maximum impact in the fight against rural poverty, the partner towns were required to draw up their own agriculture intensification plans [AIP], which they are bound to implement.”

“Lessons drawn from towns that have prepared and implemented their plans have been used in developing a template for those LGUs that have yet to draw up their own plans as part of the whole development package,” Abaya added. :cheers::cheers:

We better switch to Yokohama tires .... :)

I agree with these, let us patronize homemade product like Yokohoma and for sure GoodYear would be made from China :banana:

P1.2 billion earmarked for presidential jet to be used for anti-hunger program

(The Philippine Star)
Updated August 18, 2009 12:00 AM

MANILA, Philippines - The P1.2-billion earmarked for a brand new presidential jet would be used to fund the expansion of the government’s anti-hunger and poverty alleviation programs, Malacañang said yesterday.




Better!!!




:horse:

I'm pretty sure it takes a plane crash or a hijacking for people to realize how important a Presidential Jet is....

until then, however, anti-poverty FTW!

^^
Agree. Presidential Jet is economical in the long run and a lot safer for the head of state and ordinary people, but there are more pressing problems that needs funding than the Presidential Jet i.e. the anti-hunger program. In the future I hope the next President will have one.

dp

Ang akin lamang maipapayo sa ating mga kababayan na naninirahan sa Estados Unidos ay sana'y wag kakalimutan ang mga milyun milyong ninuno o pati na ang mga kamaganak/malayong kamaganak ninyo na pinaslang ng mga kano nung sinanib nila ang ating bansa. Lahat ng pera sa buong mundo na maaaring makamal ninyo sa korporasyong iyan na nagpapanggap na isang bansa ay di sapat para bayaran ang buhay na binuwis ng ating mga bayani sa pagtatanggol ng ating kasarinlan. Ano mang benepisyo na inyong matamasa ay ituring lamang na kabayaran na di maaaring maging sapat sa katumbas na pagpapahirap at pagyurak sa ating lahi. Wag sanang parisan ang ating mga kababayan na handang ipagpalit ang katapatan dahil sila ay nakikinabang sa isang dayuhan tulad ng mga traydor na nagsuot ng bayong noong ikalawang digmaan. :cheers:

-:)- Do not wait for the United States to bail your county, I don't want my tax money wasted.

I'm afraid to inform you but you don't have any money. Go read your rubber stamp US constitution and tell us what constitutes real money :cheers:

Asia: An astonishing rebound
From The Economist print edition
http://www.economist.com/opinion/displayStory.cfm?story_id=14214001

Asia’s emerging economies are leading the way out of recession; now they must make their recovery last...

IT NEVER pays to underestimate the bounciness of Asia’s emerging economies. After the region’s financial crisis of 1997-98, and again after the dotcom bust in 2001, outsiders predicted a lengthy period on the floor—only for the tigers to spring back rapidly. Earlier this year it was argued that such export-dependent economies could not revive until customers in the rich world did. The West still looks weak, with many economies contracting in the second quarter, and even if America begins to grow in the second half of this year, consumer spending looks sickly. Yet Asian economies, increasingly decoupled from Western shopping habits, are growing fast.

The four emerging Asian economies which have reported GDP figures for the second quarter (China, Indonesia, South Korea and Singapore) grew by an average annualised rate of more than 10% (see article). Even richer and more sluggish Japan, which cannot match that figure, seems to be recovering faster than its Western peers. But emerging Asia should grow by more than 5% this year—at a time when the old G7 could contract by 3.5%. Western politicians should brace themselves for more talk of economic power drifting inexorably to the East. How has Asia made such an astonishing rebound?

Out of smoke and mirrors, say some Western sceptics. They claim China’s bounceback is yet another fake. The country’s numbers are certainly dodgy: the components of GDP do not add up, and the data are always published suspiciously early. China’s economy probably slowed more sharply in late 2008 than the official numbers suggest. But other indicators, which are less likely to be massaged, confirm that China’s economy is roaring back. Industrial production rose 11% in the year to July; electricity output, which fell sharply last year, is growing again; and car sales are 70% higher than a year ago.

And surely the whole of Asia cannot be engaged in a statistical fraud. South Korea’s GDP grew by an annualised 10% in the second quarter. Taiwan’s probably increased by even more: its industrial output jumped by an astonishing annualised rate of 89%. India was hit less hard by the global recession than many of its neighbours because it exports less, but its industrial production has also perked up, rising by a seasonally adjusted rate of 14% in the second quarter. Output in most of the smaller Asian economies is still lower than a year ago, because they suffered steep downturns late last year. But at economic turning points, one should track quarterly changes.

Thrift in the boom, stimulus in the slump

Asia’s rebound has several causes. First, manufacturing accounts for a big part of several local economies, and industries such as cars and electronics are highly cyclical: output drops sharply in a downturn and then spurts in the upturn. Second, the region’s decline in exports in late 2008 was exacerbated by the freezing up of global trade finance, which is now flowing again. Third, and most important, domestic spending has bounced back because the fiscal stimulus in the region was bigger and worked faster than in the West. India aside, the Asians entered this downturn with far healthier government finances than rich countries, allowing them to spend more money. Low private-sector debt made households and firms more likely to spend government handouts; Asian banks were also in better shape than their Western counterparts and able to lend more. Asia’s prudence during the past decade did not allow it to escape the global recession, but it made the region’s fiscal and monetary weapons more effective.

Western populists will no doubt once again try to blame their own sluggish performance on “unfair” Asia. Ignore them. Emerging Asia’s average growth rate of almost 8% over the past two decades—three times the rate in the rich world—has brought huge benefits to the rest of the world. Its rebound now is all the more useful when growth in the West is likely to be slow. Asia cannot replace the American consumer: emerging Asia’s total consumption amounts to only two-fifths of America’s. But it is the growth in spending that really matters. In dollar terms, the increase in emerging Asia’s consumer-spending this year will more than offset the drop in spending in America and the euro area. This shift in spending from the West to the East will help rebalance the world economy.

Beijing, Bangkok and Bangalore: beware boastfulness

It is easy to boost an economy with lots of government spending. But Asian policymakers now face two difficult problems. Their immediate dilemma is how to sustain recovery without inflating credit and asset-price bubbles. Local equity and property markets are starting to froth. But policymakers’ reluctance to let their currencies rise faster against the dollar means that their monetary policy is, in effect, being set by America’s Federal Reserve, and is therefore too lax for these perkier economies. The longer-term challenge is that once the impact of governments’ fiscal stimulus fades, growth will slow unless economic reforms are put in place to bolster private spending—something Japan, alas, never did (see article).

Part of the solution to both problems—preventing bubbles and strengthening domestic spending—is to allow exchange rates to rise. If Asian central banks stopped piling up reserves to hold down their currencies, this would help stem domestic liquidity. Stronger currencies would also shift growth from exports to domestic demand and increase households’ real spending power—and help ward off protectionists in the West.

Hubris is the big worry. With the gap in growth rates between emerging Asia and the developed world heading towards a record nine percentage points this year, Chinese leaders have taken to warning America about its lax monetary policy (while Washington has stopped lecturing China about the undervalued yuan). But it would be a big mistake if Asia’s recovery led its politicians to conclude that there was no need to change their exchange-rate policies or adopt structural reforms to boost consumption. The tigers’ faster-than-expected rebound from their 1997-98 financial crisis encouraged complacency and delayed necessary reforms, which left them more vulnerable to the global downturns in 2001 and now. Make sure this new rise is not followed by another fall.

Emerging Asian economies: On the rebound
Aug 13th 2009 | HONG KONG
From The Economist print edition
http://www.economist.com/displaystory.cfm?story_id=14209825

Asia’s emerging economies are recovering much more quickly than economies in other parts of the world. Can they keep it up?


MORE green shoots have appeared in America in recent weeks, but they are nothing by comparison with the lush jungle sprouting in the East. Asia’s emerging economies probably grew at an average annualised rate of over 10% in the second quarter, while America’s GDP fell by 1%. In 2009 as a whole, recent forecasts suggest that emerging Asia could grow by at least 5%, while the G7 economies contract by 3.5%. The growth gap between the two has never been wider. How have these export-dependent economies managed to decouple from the developed world? And can their recovery last?

Average growth figures conceal big differences within Asia over the past year. China, India and Indonesia were among the few economies in the world that continued to expand throughout the global downturn (though China’s virtually stalled late last year). But the smaller, more open Asian economies were badly hit. Between September and March real GDP fell by an average annualised rate of 13% in Hong Kong, Malaysia, South Korea, Singapore, Taiwan and Thailand.

Yet the countries that have so far published second-quarter GDP figures show an impressive bounce. Comparing the second quarter with the first at an annualised rate, China’s GDP grew by 15%, South Korea’s by almost 10%, Singapore’s soared by 21% and Indonesia’s managed a respectable 5%. Other countries in the region are also likely to show a rebound. It is true that output in South Korea and Singapore was still lower than a year earlier, but quarterly changes are more useful for spotting turning points—and this is how growth rates are most commonly measured in America.

The revival in emerging Asia’s industrial production is even more impressive, jumping by an annualised rate of 36% in the second quarter. According to Barclays Capital, emerging Asia is the only region in the world where output has regained its level before the crisis (see chart 1). This is largely due to China, where industrial production rose by 11% in the 12 months to July, but all the Asian countries have seen a strong pick-up. In contrast, up to June, America’s production continued to fall.

The sharp “V” shape of this cycle, and the fact that GDP started the year well below the average level in 2008, means that growth rates for 2009 as a whole could give a misleading picture. Take Taiwan: JPMorgan predicts that its GDP in 2009 will be 3.8% lower than in 2008, implying another dismal year. But this forecast also implies that GDP will grow by a brisk 5.4% in the year to the fourth quarter. By this measure, Asia’s emerging economies are clearly leading the global recovery (see chart 2). Even if America’s economy grows during the second half of this year, it is still expected to end the year smaller than it was at the start.

Asia’s bounce has taken many forecasters by surprise. In May, for example, the IMF predicted that Asia’s recovery was likely to be “tepid” because the developed economies—and hence demand for Asian exports—would remain weak. Forecasters always seem to underestimate the ability of the Asian tigers to rebound from recessions. During East Asia’s financial crisis in 1997-98, for example, countries across the region were forced to devalue as a result of large current-account deficits and speculative attacks on their currencies. This caused firms’ foreign-currency debts to swell in local terms, resulting in widespread bankruptcies and bank failures. In 1998 the real GDP of Thailand, Indonesia and South Korea fell by an average of 10%.

Many foreigners concluded that Asia’s economic success had been a complete sham, based on governments pouring cheap money into favoured firms. Over-borrowing and over-investment had artificially boosted growth, it was argued; doomsayers predicted a decade of lost growth. Instead, the tigers came roaring back. At the end of 1998 The Economist’s poll of forecasters predicted that South Korea would shrink again slightly in 1999. Its actual growth turned out to be a stunning 9.5%. It was true that Asia’s strong growth had concealed wasteful investment, inadequate bank regulation and corruption, but the key ingredients of growth—rapid productivity growth, relatively open markets and a high saving rate to finance investment—remained in place. That helps explain why the East Asian economies recovered more quickly than many expected.

A case of Asia vu

Likewise, when the global information technology bust dragged Asia into recession in 2001, forecasters turned out to be much too gloomy about Asia’s prospects. Once again, emerging Asia bounced back fairly briskly. Westerners have always been too quick to pronounce the death of the Asian economic miracle. This may be wishful thinking, but it also reflects some misunderstandings about the ingredients of Asia’s success. This year it was widely predicted that Asia’s economies would not recover until after America and Europe had revived. Yet Asia’s supposedly export-dependent economies have resumed growth before the rest of the world. How can that be?

Sceptics argue that the pick-up simply reflects a temporary boost from rebuilding inventory, with no real increase in demand. Firms had cut production to below the level of sales in order to shed excess inventories, so now they need to reopen factories. This may be a factor in some countries, but in others firms are still running down their stocks.

In South Korea the decline in inventories accelerated in the second quarter, and the leanness of stocks bodes well for further gains in production over the rest of this year. Instead, the recovery has been led by investment and consumer spending. South Korea’s private consumption rose by an annualised 14% in the second quarter. In China fixed investment (on a GDP-consistent basis) is running more than 20% higher than a year ago, real consumer spending in urban areas is up by almost 11% and car sales have surged by 70%.

One reason why Asia’s emerging economies have been able to rebound well before those in the rich world is that their downturn was caused only partly by the slump in America. In 2008 domestic spending was squeezed by higher prices for oil and food (which account for a much higher share of household budgets than in other countries) and by tighter monetary policies, aimed at curbing inflation. China’s growth, for instance, began to slow well before global demand stumbled, as tight credit policies to prevent the economy overheating caused the property market and construction to collapse.

Across the region, aggressive fiscal and monetary stimulus has helped revive domestic demand. Asia has had the biggest fiscal stimulus of any region of the world. China’s package grabbed the headlines, but South Korea, Singapore, Malaysia, Taiwan and Thailand have all had a government boost this year of at least 4% of GDP. Most Asian countries, with the notable exception of India, entered this downturn with sounder budget finances than their Western counterparts, so they had more room to spend. Bank of America Merrill Lynch forecasts that the region’s public debt will rise to a modest 45% of GDP at the end of 2009, only half of the average in OECD countries.

Moreover, pump-priming has been more effective in Asia than in America or Europe, because Asian households are not burdened with huge debts, so tax cuts or cash handouts are more likely to be spent than saved. It is also easier in a poorer country to find worthwhile infrastructure projects—from railways to power grids—to spend money on.

In China the easing of credit has been even more important than its fiscal stimulus. Although lending slowed sharply in July, new lending by banks in the first seven months of this year was almost three times its level a year earlier. And across the whole of emerging Asia, cheaper money has been more potent in lifting spending than in the West. This is because, unlike in America and Europe, local financial systems are not crippled, so banks are able to lend more. And since Asian households and firms had not previously been on a borrowing binge (South Korea is an exception), they can afford to borrow more.

Growth rates will almost certainly moderate after the second quarter’s astonishing bounce. Even so, Mike Buchanan, an economist at Goldman Sachs, has raised his forecast for GDP growth in emerging Asia to 5.6% for 2009 as a whole and 8.6% in 2010. He expects China to grow by a breathtaking 9.4% this year and 11.9% next.

India’s GDP is forecast to grow by a more modest 5.8% in this fiscal year (ending March 2010). Exports accounted for only 15% of India’s GDP in 2008, compared with 33% in China, so India should have been much less affected by the global downturn. But because of its dire fiscal finances (a budget deficit of 10% of GDP last year), the government has had much less room to spur growth. The poor monsoon rains are also expected to reduce farm output this year. However, Mr Buchanan expects growth to increase to 7.8% next year.

Bubbling up

Even though these economies are only just starting to feel the upturn, policymakers now face a difficult problem: how to sustain a robust recovery without blowing up bubbles. There are growing concerns that a flood of liquidity is fuelling asset-price bubbles, which could destabilise economies when they burst. In China share prices have almost doubled since their trough last November, and most Asian countries have seen gains of around 50% or more since the start of the year (see chart 3). After falling last year, house prices are now rising rapidly in Hong Kong, Shanghai, Seoul and elsewhere. Home sales have surged by 70% in value in China over the past year. According to one estimate, one-fifth of all new lending this year in China has gone into the stockmarket or property.

Asset prices could rise much further. Despite the recent gains, average house prices in most countries are barely higher than a year ago. And although shares are starting to look pricey, China’s stockmarket is still 47% below its 2007 peak. But the lesson from America in recent years is surely that it is better to prevent bubbles forming. Asia’s monetary conditions are too loose now that economies are reviving; central banks need to raise interest rates. But with rates close to zero in the rich world, and likely to stay there for a while, this would lure in foreign capital, adding to domestic liquidity. Capital is already rushing in, attracted by the region’s growth, which is faster than the rest of the world’s.

The basic problem is that although the Asian economies have decoupled from America, their monetary policies have not. In a world of mobile capital, an economy cannot both manage its exchange rate and control domestic liquidity. By trying to hold their currencies down against the dollar Asian economies are, in effect, being forced to shadow the Fed’s monetary policy even though their economies are much stronger. Foreign-exchange intervention to hold down their currencies causes domestic liquidity to swell. Consumer-price inflation is not an imminent threat, because prices are falling in most Asian countries. Chinese consumer prices fell by 1.8% in the year to July. But asset prices look dangerously frothy. The obvious solution is to let exchange rates rise, but with exports still well below last year’s level, governments are reluctant to set their currencies free.

Making it stick

Several central banks in the region, including the People’s Bank of China, the Bank of Korea and the Hong Kong Monetary Authority, have given warnings about the risk of asset bubbles. But there is unlikely to be any significant policy tightening before next year, because boosting growth remains governments’ main priority. Indeed, the wealth effects of higher asset prices will help lift spending. Ample liquidity is therefore likely to continue to stoke asset prices. Andy Rothman, an economist at CLSA, a brokerage, predicts the “biggest round of asset-price inflation China has experienced since the command economy was dismantled”.

Its credit boom is clearly unsustainable, but China is unlikely to hit the monetary brakes until inflation turns positive and its year-on-year GDP growth tops 10%. Instead, policymakers will try to contain the bubble by tightening lending standards. For example, China’s banking regulator has warned banks to stick to rules on mortgages for second homes, which require a down-payment of at least 40% of a property’s value. It has also ordered banks to ensure that lending goes into the real economy, not shares.

Fiscal stimulus and the wealth effect of rising asset prices can provide only a temporary prop to domestic spending. Nor can Asia rely on a strong rebound in exports to America, where spending is likely to remain sluggish over the next few years as households are forced to save more in order to repay debt. In the longer term, Asia’s growth needs to come more from domestic demand rather than exports.

However, the standard policy prescribed by Westerners—Asian households must save less and spend more—is too simplistic. In China private consumption is indeed unhealthily low, at only 35% of GDP. But the average for the rest of Asia, at 58% of GDP, is not much lower than the OECD average of 61%. South Korean households, which have reduced their saving rate from 23% of disposable income in 1998 to only 3% last year, can hardly be accused of being overly thrifty.

In Indonesia, Malaysia, the Philippines, Taiwan and Thailand it is instead investment that looks too low. Investment as a percentage of GDP is little higher than in many rich economies, even though investment opportunities in a developing country should be far greater. For example, Malaysia’s investment has fallen from 43% of GDP in 1997 to only 19% last year, less than in the euro area or Japan and well below China’s 44%. Weaker investment is one reason why the trend growth-rates of some Asian economies have slowed over the past decade.

The appropriate measures needed to strengthen domestic demand therefore differ across the region. Although China’s goal should be to consume more, some of the other Asian economies need to invest more. That will require an improved regulatory environment, a crackdown on corruption, better infrastructure and—not least—greater political stability.

Even in countries like China, where low consumption is the main culprit, the necessary reforms are more complicated than the standard Western advice that the government needs to spend more on health care and welfare support to encourage households to save less. Companies, not households, have accounted for the bulk of the rise in saving across Asia over the past decade. Households’ spending has fallen as a share of GDP, not because they are saving a lot more, but because their share of national income has shrunk as that of corporate profits has grown.

To lift private consumption, governments therefore need to increase households’ share of national income by encouraging more labour-intensive services, rather than favouring capital-intensive manufacturing industries with subsidies and undervalued exchange rates. Recent estimates suggest that Asian currencies are among the most undervalued in the world. Stronger exchange rates would help shift growth away from exports and boost households’ real spending power.

Mind the gap

The gap between growth rates in emerging Asia and the G7 is forecast to rise to a record nine percentage points this year (see chart 4). But what of the future? Pessimists argue that Asia’s growth over the coming years will be much slower than before the global crisis because its main engine of growth, exporting to America, has broken down and it will take years to find a replacement. But this may overstate the importance of America to the Asian tigers. Between 2001 and 2006 (when America’s trade deficit peaked), the increase in emerging Asia’s trade surplus with America accounted for only 6% of the region’s GDP growth. If those exports cannot be replaced by domestic demand, growth will be slower, but not massively so.

Besides, long-term growth depends on supply factors, not just demand. A country’s long-term “potential” or “trend” rate of growth—the speed limit at which GDP can expand without igniting inflation—is determined by growth in its labour supply and productivity. The global financial crisis should not noticeably reduce productivity growth in emerging Asia. Indeed, recent increases in infrastructure spending across the region could boost productivity by reducing transport costs, especially in places such as inland China.

In America and many other rich countries, by contrast, potential growth rates are likely to fall over the next decade as soaring government debt and hence higher taxes blunt incentives to work and invest, the lingering credit crunch dampens investment, and increased government regulation deters innovation. All this could reduce productivity growth at a time when labour forces in these countries will be growing more slowly or even shrinking.

The tigers are unlikely to return to their breakneck growth rate, which averaged 9% during the three years to 2007. But this exceeded their safe speed-limit. Emerging Asia as a whole might enjoy annual growth of 7-8% over the next five years, at least three times the rate in the rich world. The sharp downturn in Asia late last year painfully proved that the region was not immune to America’s downfall. But the speed and strength of its rebound, if sustained, show that it is not chained to Uncle Sam either. If anything, the crisis has reinforced the shift of economic power from the West to the East.

Emerging Asian economies: On the rebound
Aug 13th 2009 | HONG KONG
From The Economist print edition
http://www.economist.com/displaystory.cfm?story_id=14209825

Asia’s emerging economies are recovering much more quickly than economies in other parts of the world. Can they keep it up?


MORE green shoots have appeared in America in recent weeks, but they are nothing by comparison with the lush jungle sprouting in the East. Asia’s emerging economies probably grew at an average annualised rate of over 10% in the second quarter, while America’s GDP fell by 1%. In 2009 as a whole, recent forecasts suggest that emerging Asia could grow by at least 5%, while the G7 economies contract by 3.5%. The growth gap between the two has never been wider. How have these export-dependent economies managed to decouple from the developed world? And can their recovery last?

Average growth figures conceal big differences within Asia over the past year. China, India and Indonesia were among the few economies in the world that continued to expand throughout the global downturn (though China’s virtually stalled late last year). But the smaller, more open Asian economies were badly hit. Between September and March real GDP fell by an average annualised rate of 13% in Hong Kong, Malaysia, South Korea, Singapore, Taiwan and Thailand.

Yet the countries that have so far published second-quarter GDP figures show an impressive bounce. Comparing the second quarter with the first at an annualised rate, China’s GDP grew by 15%, South Korea’s by almost 10%, Singapore’s soared by 21% and Indonesia’s managed a respectable 5%. Other countries in the region are also likely to show a rebound. It is true that output in South Korea and Singapore was still lower than a year earlier, but quarterly changes are more useful for spotting turning points—and this is how growth rates are most commonly measured in America.

The revival in emerging Asia’s industrial production is even more impressive, jumping by an annualised rate of 36% in the second quarter. According to Barclays Capital, emerging Asia is the only region in the world where output has regained its level before the crisis (see chart 1). This is largely due to China, where industrial production rose by 11% in the 12 months to July, but all the Asian countries have seen a strong pick-up. In contrast, up to June, America’s production continued to fall.

The sharp “V” shape of this cycle, and the fact that GDP started the year well below the average level in 2008, means that growth rates for 2009 as a whole could give a misleading picture. Take Taiwan: JPMorgan predicts that its GDP in 2009 will be 3.8% lower than in 2008, implying another dismal year. But this forecast also implies that GDP will grow by a brisk 5.4% in the year to the fourth quarter. By this measure, Asia’s emerging economies are clearly leading the global recovery (see chart 2). Even if America’s economy grows during the second half of this year, it is still expected to end the year smaller than it was at the start.

Asia’s bounce has taken many forecasters by surprise. In May, for example, the IMF predicted that Asia’s recovery was likely to be “tepid” because the developed economies—and hence demand for Asian exports—would remain weak. Forecasters always seem to underestimate the ability of the Asian tigers to rebound from recessions. During East Asia’s financial crisis in 1997-98, for example, countries across the region were forced to devalue as a result of large current-account deficits and speculative attacks on their currencies. This caused firms’ foreign-currency debts to swell in local terms, resulting in widespread bankruptcies and bank failures. In 1998 the real GDP of Thailand, Indonesia and South Korea fell by an average of 10%.

Many foreigners concluded that Asia’s economic success had been a complete sham, based on governments pouring cheap money into favoured firms. Over-borrowing and over-investment had artificially boosted growth, it was argued; doomsayers predicted a decade of lost growth. Instead, the tigers came roaring back. At the end of 1998 The Economist’s poll of forecasters predicted that South Korea would shrink again slightly in 1999. Its actual growth turned out to be a stunning 9.5%. It was true that Asia’s strong growth had concealed wasteful investment, inadequate bank regulation and corruption, but the key ingredients of growth—rapid productivity growth, relatively open markets and a high saving rate to finance investment—remained in place. That helps explain why the East Asian economies recovered more quickly than many expected.

A case of Asia vu

Likewise, when the global information technology bust dragged Asia into recession in 2001, forecasters turned out to be much too gloomy about Asia’s prospects. Once again, emerging Asia bounced back fairly briskly. Westerners have always been too quick to pronounce the death of the Asian economic miracle. This may be wishful thinking, but it also reflects some misunderstandings about the ingredients of Asia’s success. This year it was widely predicted that Asia’s economies would not recover until after America and Europe had revived. Yet Asia’s supposedly export-dependent economies have resumed growth before the rest of the world. How can that be?

Sceptics argue that the pick-up simply reflects a temporary boost from rebuilding inventory, with no real increase in demand. Firms had cut production to below the level of sales in order to shed excess inventories, so now they need to reopen factories. This may be a factor in some countries, but in others firms are still running down their stocks.

In South Korea the decline in inventories accelerated in the second quarter, and the leanness of stocks bodes well for further gains in production over the rest of this year. Instead, the recovery has been led by investment and consumer spending. South Korea’s private consumption rose by an annualised 14% in the second quarter. In China fixed investment (on a GDP-consistent basis) is running more than 20% higher than a year ago, real consumer spending in urban areas is up by almost 11% and car sales have surged by 70%.

One reason why Asia’s emerging economies have been able to rebound well before those in the rich world is that their downturn was caused only partly by the slump in America. In 2008 domestic spending was squeezed by higher prices for oil and food (which account for a much higher share of household budgets than in other countries) and by tighter monetary policies, aimed at curbing inflation. China’s growth, for instance, began to slow well before global demand stumbled, as tight credit policies to prevent the economy overheating caused the property market and construction to collapse.

Across the region, aggressive fiscal and monetary stimulus has helped revive domestic demand. Asia has had the biggest fiscal stimulus of any region of the world. China’s package grabbed the headlines, but South Korea, Singapore, Malaysia, Taiwan and Thailand have all had a government boost this year of at least 4% of GDP. Most Asian countries, with the notable exception of India, entered this downturn with sounder budget finances than their Western counterparts, so they had more room to spend. Bank of America Merrill Lynch forecasts that the region’s public debt will rise to a modest 45% of GDP at the end of 2009, only half of the average in OECD countries.

Moreover, pump-priming has been more effective in Asia than in America or Europe, because Asian households are not burdened with huge debts, so tax cuts or cash handouts are more likely to be spent than saved. It is also easier in a poorer country to find worthwhile infrastructure projects—from railways to power grids—to spend money on.

In China the easing of credit has been even more important than its fiscal stimulus. Although lending slowed sharply in July, new lending by banks in the first seven months of this year was almost three times its level a year earlier. And across the whole of emerging Asia, cheaper money has been more potent in lifting spending than in the West. This is because, unlike in America and Europe, local financial systems are not crippled, so banks are able to lend more. And since Asian households and firms had not previously been on a borrowing binge (South Korea is an exception), they can afford to borrow more.

Growth rates will almost certainly moderate after the second quarter’s astonishing bounce. Even so, Mike Buchanan, an economist at Goldman Sachs, has raised his forecast for GDP growth in emerging Asia to 5.6% for 2009 as a whole and 8.6% in 2010. He expects China to grow by a breathtaking 9.4% this year and 11.9% next.

India’s GDP is forecast to grow by a more modest 5.8% in this fiscal year (ending March 2010). Exports accounted for only 15% of India’s GDP in 2008, compared with 33% in China, so India should have been much less affected by the global downturn. But because of its dire fiscal finances (a budget deficit of 10% of GDP last year), the government has had much less room to spur growth. The poor monsoon rains are also expected to reduce farm output this year. However, Mr Buchanan expects growth to increase to 7.8% next year.

Bubbling up

Even though these economies are only just starting to feel the upturn, policymakers now face a difficult problem: how to sustain a robust recovery without blowing up bubbles. There are growing concerns that a flood of liquidity is fuelling asset-price bubbles, which could destabilise economies when they burst. In China share prices have almost doubled since their trough last November, and most Asian countries have seen gains of around 50% or more since the start of the year (see chart 3). After falling last year, house prices are now rising rapidly in Hong Kong, Shanghai, Seoul and elsewhere. Home sales have surged by 70% in value in China over the past year. According to one estimate, one-fifth of all new lending this year in China has gone into the stockmarket or property.

Asset prices could rise much further. Despite the recent gains, average house prices in most countries are barely higher than a year ago. And although shares are starting to look pricey, China’s stockmarket is still 47% below its 2007 peak. But the lesson from America in recent years is surely that it is better to prevent bubbles forming. Asia’s monetary conditions are too loose now that economies are reviving; central banks need to raise interest rates. But with rates close to zero in the rich world, and likely to stay there for a while, this would lure in foreign capital, adding to domestic liquidity. Capital is already rushing in, attracted by the region’s growth, which is faster than the rest of the world’s.

The basic problem is that although the Asian economies have decoupled from America, their monetary policies have not. In a world of mobile capital, an economy cannot both manage its exchange rate and control domestic liquidity. By trying to hold their currencies down against the dollar Asian economies are, in effect, being forced to shadow the Fed’s monetary policy even though their economies are much stronger. Foreign-exchange intervention to hold down their currencies causes domestic liquidity to swell. Consumer-price inflation is not an imminent threat, because prices are falling in most Asian countries. Chinese consumer prices fell by 1.8% in the year to July. But asset prices look dangerously frothy. The obvious solution is to let exchange rates rise, but with exports still well below last year’s level, governments are reluctant to set their currencies free.

Making it stick

Several central banks in the region, including the People’s Bank of China, the Bank of Korea and the Hong Kong Monetary Authority, have given warnings about the risk of asset bubbles. But there is unlikely to be any significant policy tightening before next year, because boosting growth remains governments’ main priority. Indeed, the wealth effects of higher asset prices will help lift spending. Ample liquidity is therefore likely to continue to stoke asset prices. Andy Rothman, an economist at CLSA, a brokerage, predicts the “biggest round of asset-price inflation China has experienced since the command economy was dismantled”.

Its credit boom is clearly unsustainable, but China is unlikely to hit the monetary brakes until inflation turns positive and its year-on-year GDP growth tops 10%. Instead, policymakers will try to contain the bubble by tightening lending standards. For example, China’s banking regulator has warned banks to stick to rules on mortgages for second homes, which require a down-payment of at least 40% of a property’s value. It has also ordered banks to ensure that lending goes into the real economy, not shares.

Fiscal stimulus and the wealth effect of rising asset prices can provide only a temporary prop to domestic spending. Nor can Asia rely on a strong rebound in exports to America, where spending is likely to remain sluggish over the next few years as households are forced to save more in order to repay debt. In the longer term, Asia’s growth needs to come more from domestic demand rather than exports.

However, the standard policy prescribed by Westerners—Asian households must save less and spend more—is too simplistic. In China private consumption is indeed unhealthily low, at only 35% of GDP. But the average for the rest of Asia, at 58% of GDP, is not much lower than the OECD average of 61%. South Korean households, which have reduced their saving rate from 23% of disposable income in 1998 to only 3% last year, can hardly be accused of being overly thrifty.

In Indonesia, Malaysia, the Philippines, Taiwan and Thailand it is instead investment that looks too low. Investment as a percentage of GDP is little higher than in many rich economies, even though investment opportunities in a developing country should be far greater. For example, Malaysia’s investment has fallen from 43% of GDP in 1997 to only 19% last year, less than in the euro area or Japan and well below China’s 44%. Weaker investment is one reason why the trend growth-rates of some Asian economies have slowed over the past decade.

The appropriate measures needed to strengthen domestic demand therefore differ across the region. Although China’s goal should be to consume more, some of the other Asian economies need to invest more. That will require an improved regulatory environment, a crackdown on corruption, better infrastructure and—not least—greater political stability.

Even in countries like China, where low consumption is the main culprit, the necessary reforms are more complicated than the standard Western advice that the government needs to spend more on health care and welfare support to encourage households to save less. Companies, not households, have accounted for the bulk of the rise in saving across Asia over the past decade. Households’ spending has fallen as a share of GDP, not because they are saving a lot more, but because their share of national income has shrunk as that of corporate profits has grown.

To lift private consumption, governments therefore need to increase households’ share of national income by encouraging more labour-intensive services, rather than favouring capital-intensive manufacturing industries with subsidies and undervalued exchange rates. Recent estimates suggest that Asian currencies are among the most undervalued in the world. Stronger exchange rates would help shift growth away from exports and boost households’ real spending power.

Mind the gap

The gap between growth rates in emerging Asia and the G7 is forecast to rise to a record nine percentage points this year (see chart 4). But what of the future? Pessimists argue that Asia’s growth over the coming years will be much slower than before the global crisis because its main engine of growth, exporting to America, has broken down and it will take years to find a replacement. But this may overstate the importance of America to the Asian tigers. Between 2001 and 2006 (when America’s trade deficit peaked), the increase in emerging Asia’s trade surplus with America accounted for only 6% of the region’s GDP growth. If those exports cannot be replaced by domestic demand, growth will be slower, but not massively so.

Besides, long-term growth depends on supply factors, not just demand. A country’s long-term “potential” or “trend” rate of growth—the speed limit at which GDP can expand without igniting inflation—is determined by growth in its labour supply and productivity. The global financial crisis should not noticeably reduce productivity growth in emerging Asia. Indeed, recent increases in infrastructure spending across the region could boost productivity by reducing transport costs, especially in places such as inland China.

In America and many other rich countries, by contrast, potential growth rates are likely to fall over the next decade as soaring government debt and hence higher taxes blunt incentives to work and invest, the lingering credit crunch dampens investment, and increased government regulation deters innovation. All this could reduce productivity growth at a time when labour forces in these countries will be growing more slowly or even shrinking.

The tigers are unlikely to return to their breakneck growth rate, which averaged 9% during the three years to 2007. But this exceeded their safe speed-limit. Emerging Asia as a whole might enjoy annual growth of 7-8% over the next five years, at least three times the rate in the rich world. The sharp downturn in Asia late last year painfully proved that the region was not immune to America’s downfall. But the speed and strength of its rebound, if sustained, show that it is not chained to Uncle Sam either. If anything, the crisis has reinforced the shift of economic power from the West to the East.

http://www.motorship.com/currentnews/article.asp?ARTICLEID=7867
Cebu shipyard expanded
Date: 18 Aug 2009

Tsuneishi Heavy Industries’ shipyard in Cebu (THICI), the Philippines, has recently completed a $250,000 expansion project to build a fourth slipway. This will enable the shipbuilder to construct bulk carriers up to 190,000 dwt and increase its annual building capacity from 14 to 22 by 2011.

THICI director Roberto Aboitiz said that the shipyard had received several orders from overseas clients and that the yard’s order book was full up to 2013. The shipyard most recently delivered the 58,000 dwt geared bulk carrier ‘Medi Segesta’ to Orient Line in July. THICI is a joint venture between Tsuneishi Holdings, Japan and Aboitiz & Co, the Philippines.

Wednesday, August 19, 2009
http://www.manilatimes.net/national/2009/aug/19/yehey/top_stories/20090819top6.html


Japan’s recovery frees
Philippines from recession threat

By Angelo S. Samonte, Reporter

Japan’s announcement of a second-quarter growth bolsters the Philippine government’s projection that the local economy will be spared from a recession for the rest of this year.

“That’s good news. The US is expected to be out of recession and now the Japanese,” Gary Olivar, presidential economic spokesman, said Tuesday. “These are major partners [of the Philippines], and you know China is also dynamic. That’s why [former Socioeconomic Planning] Secretary [Ralph] Recto said recently that we’re not in a danger of recession anymore so this is an additional proof that we can totally escape recession.”

When asked if the Palace expects better economic environment later this year, he said: “Maybe in the third or fourth quarter. I think we are projecting growth this year of 2 [percent] to 3 percent in the low side . . .”

Out of the doldrums

Earlier Monday, Japan announced that it finally recovered from recession after posting positive growth in the second quarter. Japan followed Germany and France in posting growth after massive government spending resuscitated the ailing global economy.

Japan’s economy, the second largest in the world, grew by 0.9 percent from April to June, after contracting for four previous quarters. The country’s gross domestic product (GDP) grew at an annualized pace of 3.7 percent in the second quarter, having shrunk 3.1 percent in the first quarter and by 3.5 percent in the fourth quarter of 2008.

GDP, a key economic indicator, is the total cost of all goods and services produced in the country in a year.

Japan plunged into recession in the second quarter of 2008 after a severe global downturn crushed demand for its cars, electronics and other consumer goods.

Weak demand for its major exports appear to be over after it posted a 6.3-percent increase in exports from April to June—the first increase in five quarters.

Experts said they expected the Japanese economy to keep growing through the rest of 2009.

Manila Standard

August 18, 2009

P30 billion sought for farm projects

Saying that agricultural growth will make a difference in the lives of the poor, opposition Senator Francis Escudero yesterday sought the infusion of P30 billion in the rural economy.

Massive investments plus modernization of farms and fisheries will help the rural sector achieve its full potential, Escudero said at a forum before students of the University of the Philippines-Los Baños.

“More than half of the poor live in the countryside. They lack access to productive resources including land, credit, technology, and infrastructure,” he said.

“Even with our emergence as an important player regionally in the BPO and electronics industries, the Philippines is still mainly an agricultural country with the majority of the workforce engaged in tilling the soil,” Escudero pointed out.

According to the National Statistics Coordination Board, farmers and fishermen are the two poorest sectors in the country, with poverty incidences of 44 percent and 49.9 percent, respectively.

The unlimited potentials of agriculture will only be realized if the government fully implements the Agriculture and Fisheries Modernization Act that was approved in 1998, Escudero said.

The Act was meant to be a blueprint for Philippine agriculture, and its success hinged on the conceptualization of specific programs as well as availability of funding for several years on top of the annual budget for the Department of Agriculture.

“We need to focus on agriculture if we want to make a difference in the lives of the poor,” he said.

Farm output growth for the second quarter had missed targets and was the slowest in four years at .87 percent, compared to the 5.4-percent growth seen during the same period in 2008, according to the Department of Agriculture.:cheers:

India, RP team up to fight US, EU move against outsourcing jobs to other countries
Business Mirror
Written by Max V. de Leon / Reporter
Tuesday, 18 August 2009
http://www.businessmirror.com.ph/home/economy/14787-india-rp-team-up-to-fight-us-eu-move-against-outsourcing-jobs-to-other-countries.html

BUSINESS-process outsourcing (BPO) superpowers India and the Philippines are joining forces in blocking the plans of world economic superpowers United States and European Union in coming up with policies that would dissuade their corporations from outsourcing jobs to other countries.

Jonathan de Luzuriaga, executive director of the Business Process Association of the Philippines (BPAP), said his group will meet with officials of the National Association of Software and Services Companies (Nasscom) of India next week to map out strategies on how to counter the protectionist legislation that the governments of the US and EU are planning to enact.

“The Philippines and India are both BPO superpowers, so we need to have a common stand. We need to be ahead of the curb,” de Luzuriaga said at the sidelines of the opening of ExcelAsia’s new training site for BPO near-hires in Eastwood City, Libis, in Quezon City.

He said the governments of the US and EU have already made pronouncements that they will remove the incentives of companies that will continue to outsource some of their core operations.

India, being the top BPO destination in the world, has been actively lobbying against this, he added.

Nasscom has also talked to the BPAP to get the support of the Philippines.

“Nasscom said we are the No. 2 BPO destination in the world so we should help them out. It’s just a matter of educating some geographies that outsourcing is now a reality and a global trend,” de Luzuriaga said.

At the scheduled meeting next week, he said Nasscom and BPAP will come up with a common position paper that will be sent to the US and Europe.

If they cannot stop the US and EU from coming up with protectionist legislation, Nasscom and BPAP will go directly to the American and European companies to explain to them that the cost savings that they will get from outsourcing, plus the quality of work, will far outweigh any incentive that they are getting from their governments.

“In the end, it is still the CEOs who will decide,” de Luzuriaga said.


________________________________



More US firms plan local BPO operations
By Ayen Infante
Daily Tribune
08/19/2009
http://www.tribune.net.ph/business/20090819bus2.html


The country is seeking more investments in the business process outsourcing (BPO) industry for so-called new wave cities.

Trade and Industry Secretary Peter Favila told reporters that several BPO firms have called on President Arroyo during her recent state visit to the United States to indicate their intention to set up local BPO operations.

"We are eyeing another wave of players in these new wave cities. Because of the recession in the US, a lot of outsourcing is being done but they are doing it quietly given the sensitive issue of jobs there," Favila said.

He said Arroyo was invited to the World BPO Forum but was unable to attend because of her full schedule. The BPO firms instead held courtesy calls with Arroyo when she was in New York.

"To companies there, outsourcing is a business decision. It is cost effective for them to outsource. I told them the Philippines is ready, we are good in services. Here is a market for them, they are all welcome to come here," Favila, who was among the Cabinet members who joined the President in the US trip, said.

The BPO industry is the most promising sector in the country, especially with the global economic crisis. Companies overseas have opted to outsource some of their operations in a bid to lower their costs. The Philippines is one of the choice destinations for quality services at reasonable costs.

"They have acknowledged that the Philippines, just like India, is one of the primary growth areas for BPOs. In fact, they told the President that they have been endorsing the Philippines to new players," Favila said.

According to a recent study conducted by research firm Tholons, Metro Manila is the largest business process outsourcing city in the world. Metro Cebu, meanwhile, is the world’s largest emerging BPO city.

But the country has more cities to offer to BPOs beyond these two.

The Next Wave Cities 2009 report of the Business Processing Association of the Philippines, Commission on Information and Communications Technology and the Department of Trade and Industry ranked the top 10 cities as follows: Metro Laguna, Metro Cavite, Iloilo City, Davao City, Bacolod City, Metro Pampanga, Bulacan East (Baliuag-Marilao-Meycauayan), and West (Malolos-Calumpit), Cagayan de Oro City and Lipa City.

According to the report, these 10 "cities" have a combined absorptive capacity of 888,000. Current employment, however, is placed at a mere 35,000, which means these areas can still absorb a workforce of more than 850,000.

In choosing these next wave cities, the government and private sector used several criteria to ensure these are ready to host BPO locators, including a huge base of potential BPO workers; excellent power and telecommunications infrastructure, low vulnerability to natural disasters; efficient road network; accessibility to major airports; cost efficiency; friendly business environment, among others.

Customs shortfall hits P27B
Written by VG Cabuag / Reporter
Business Mirror
Tuesday, 18 August 2009
http://www.businessmirror.com.ph/home/top-news/14807-customs-shortfall-hits-p27b.html

The Bureau of Customs (BOC) missed its target collection again for the January to mid-August period.

Preliminary figures showed the second-largest revenue earner has a shortfall of P27.02 billion as of August 14, collecting only P135.42 billion versus the target of P162.45 billion.

The bureau said, however, that its collection shortfall in July was only P2 billion, or narrower than the June deficit of P5.62 billion. The target was P26.13 billion and the sum collected was P24.15 billion; August 14-day collection reached P6.46 billion, a fraction of the target P25.67 billion.

“Our performance depends on imports because ours is to capture revenue from external trade. The indisputable equation is less importation equals less collection,” said Customs Commissioner Napoleon Morales.

Nine of 17 ports missed their collection goal, led by the main gateways in Manila. Cumulative cash collections from main ports was down by P20.31 billion, more than half of which is from the Port of Manila, while a significant portion was from the Manila International Container Port (MICP), which is operated by International Container Terminal Services Inc.

The Port of Manila registered a shortfall of close to P12 billion, collecting only P21.3 billion against its P33.12-billion target, while the MICP had a deficit of P4.7 billion, collecting P33.34 billion as opposed to its P38.083-billion target.

The Port of Limay, an oil port, incurred the third-highest shortfall of P4.02 billion at P12.27 billion from target P16.3 billion, while the Batangas Port, where the two oil refineries of the country are, has a shortfall of P3.2 billion from target of P26.34 billion, with a collection of P23.07 billion.

The Ninoy Aquino International Airport, one of the major ports and which handles mostly high-value low-weight goods, posted a surplus of P829 million and collected P9.82 billion.

The BOC has a target of P310 billion for the year.


____________________________


Deficit climbs to P188 billion
Business World
http://www.bworldonline.com/BW082009/content.php?id=001

LOWER REVENUES blamed on weaker economic activity and higher expenditures led to the budget deficit ballooning to P188 billion as of end-July, the government yesterday reported.

The seven-month result — more than five times the P33.4-billion shortfall incurred in the same period last year and three-fourths of the full-year 2009 cap of P250 billion — prompted officials to admit that the fiscal situation was "tighter."

"This [deficit] is due mainly to increased expenditures which were used to fund economic pump-priming and a slight decline in revenues due to the slowdown in economic and business activities," Finance Secretary Margarito B. Teves said.

For July the budget gap was P34.6 billion, more than double the P15.4 billion incurred last year.

Mr. Teves said the space between the current shortfall and the full year target was "getting tighter," but added he remained optimistic.

"We are now P188 billion out of the P250 billion so we have to work harder," he said.

"We believe we can still handle P250 billion as projected even if the situation is somewhat tighter. We hope the situation in the second half will be better in terms of economic growth."

Privatization proceeds as well as dividends from Philippine National Oil Co. (PNOC), he said, will augment this year’s revenues.

"[W]e are expecting P17.6 billion worth of dividends [from PNOC]. The privatization program will include proceeds from FTI (Food Terminal, Inc.) and PNOC-Exploration Corp. These [will] give us [a] buffer to ensure we are within P250 billion," Mr. Teves said.

Asked to comment on the latest deficit results, University of the Philippines economist and former Budget secretary Benjamin E. Diokno said the government was likely to exceed the programmed deficit.

"My forecast for this year is P308 billion. I think the shortfall will worsen while public spending picks up. The [2009] budget was delayed so if spending picks up, it will be in the second half," he said in a telephone interview.

"The problem is revenue collection. It will worsen unless you do something about it. I am not optimistic that Congress will pass new revenue measures. What they can do is impose a moratorium on revenue-eroding measures."

University of Asia and the Pacific economist Victor A. Abola, on the other hand, said, "I don’t think that (the January-July deficit) is a cause of concern. The government can still improve on its collection and can sell some assets to meet the target."

Revenues for the period totaled P644.1 billion, lower than last year’s P671.4 billion. The tally for July was P98.4 billion, down from P101.4 billion a year ago.

The Bureau of Internal Revenue (BIR), which accounts for around three-fourths of the government’s tax revenues, collected P433.2 billion as of July, down from last year’s P453.2 billion. The bureau’s July take was P57.6 billion, down from P63.4 billion a year ago.

"The lower revenue for July was... principally due to non-recurring collections last year," BIR Deputy Commissioner Nelson M. Aspe said without elaborating.

The Bureau of Customs (BoC), meanwhile, generated P129 billion during the period, lower than the P142 billion earned last year. Collections for July totaled P24.2 billion, slightly lower than last year’s P25 billion.

"[The lower collection was] due to lower import [volumes]... However it was augmented by foreign exchange which posted a positive impact... But crude oil price was lower and had negative impact," Customs director Edna Barrida said.

Bureau of Treasury (BTR) income for the seven-month period totaled P42.7 billion while other offices earned P39.2 billion. For the month of July, the BTR earned P12.6 billion while other offices contributed P4.1 billion.

Expenditures, meanwhile, amounted to P832.1 billion as of July, higher than the P704.8 billion spent last year. July expenditures totaled P133 billion from P116.8 billion.

"We are appealing to Congress to act on our proposed revenue-enhancement measures and put a moratorium on revenue-eroding measures to help us ensure a steady flow of resources for the government and sustain business confidence," Mr. Teves said.

The government had raised this year’s deficit ceiling to P250 billion or 3.2% of gross domestic product, from P199.2 billion previously, on expectations that revenues would dip due to the economic downturn. Officials said the wider shortfall would allow the government to fund projects that will prop up the economy, which is expected to grow by just 0.8-1.8% this year.

P233.4-B deficit set for 2010
Business World
http://www.bworldonline.com/BW081409/content.php?id=001

THE NEED to sustain pump-priming efforts has prompted economic managers to raise the programmed budget deficit for next year to P233.4 billion from P208.4 billion, officials yesterday said.

A source from the Development Budget Coordination Committee (DBCC), which sets fiscal targets, said the new deficit cap was agreed upon following a meeting with Cabinet officials.

Asked to confirm the new figure, Budget Secretary Rolando G. Andaya, Jr. said in a text message: "The revised deficit program for 2010 is P233 billion, 2.8% of GDP."

The DBCC source, a member of the technical group who attended yesterday’s meeting, said the higher figure was "due to the need for spending. This will ensure that the gains from the stimulus [this year] will be sustained and will continue in 2010."

The revenue and expenditure program for next year will still be finalized by the DBCC, which consists of the National Economic and Development Authority, Budget and Finance departments, and the Bangko Sentral ng Pilipinas.

The adjustment will likely mean changes to the 2010 borrowing plan. "The revenues may not be lowered," the source said, adding, "Yes, it will involve changes in the financing."

Rosalia de Leon, head of the Finance department’s international finance group, also said the government still had to finalize next year’s plans but added that foreign debt issues may rise from the initial estimate of around $1.5 billion.

"Yes, that amount may rise," Ms. de Leon said, adding the government had to determine how much it would source from the global bond market, Samurai bonds, and official development assistance.

The government originally intended to achieve a balanced budget next year but declining revenues and the need to address the impact of the global downturn forced a deferment to 2013.

The Budget department has said the government would be implementing a stimulus program in 2010 similar to this year’s P330-billion Economic Resiliency Plan.

Next year’s package would focus on infrastructure and long-term projects in agriculture, health and other social services.

Government estimates released in June set the 2010 revenue target at P1.33 trillion from P1.24 trillion this year. Officials attributed the higher figure to a global economic recovery.

Expenditures, meanwhile, are expected to rise to P1.53 trillion next year from P1.49 trillion this year.

Treasury bureau data issued last month put 2010 state borrowings at P640.28 billion, down 3.12% from this year’s P660.9 billion. This is now expected to be changed given the new deficit figure.

As of now, however, the bulk of next year’s borrowings, 74.53% or P477.19 billion, is to be sourced locally. This is higher than this year’s P451.8 billion. Foreign borrowings were set at P163.09 billion, lower than this year’s P209.1 billion.


_____________________


2010 debt issues may hit P98B
Increased borrowings to fund wider budget deficit
Business World
http://www.bworldonline.com/BW081909/content.php?id=001


THE GOVERNMENT is looking to raise over $2 billion in foreign commercial borrowings next year, higher than earlier planned, to finance a wider-than-expected budget deficit, a senior government official said.

National Treasurer Roberto Tan told Reuters the country’s overseas debt issues next year may reach P98 billion, up from an earlier estimate of $1.5 billion, after the government raised its budget deficit target for 2010.

Asked to confirm the report, he told BusinessWorld, "[That is the] emerging scenario. It’s still under review."

The country’s foreign debt sales in 2010 would include global and yen bonds, a government source, who asked not to be named pending the finance secretary’s approval of the debt plan, told Reuters last week.

Manila was allowed by the Japan Bank for International Cooperation (JBIC) to sell up to $1 billion in Samurai bonds within two years to help bridge its fiscal gap. But it wants the JBIC to lower the guarantee fee to make it a cheaper funding source.

The government has set a budget deficit goal of P233.4 billion, or 2.8% of GDP, under its proposed 2010 spending plan of P1.54 trillion — at the high end of an earlier indicative range of 2.5-2.8% of GDP.

Mr. Tan said the government also aims to raise P87.2 billion in official development loans next year, and P475.2 billion from the domestic debt market to help fund the budget gap.

"These are the emerging numbers based on the P233.4 billion budget deficit [target next year]," Mr. Tan said.

Manila, one of Asia’s largest sovereign debt issuers, sold a total $2.25 billion of global bonds this year to finance a budget deficit set to hit a record high of P250 billion or 3.2% of GDP.

Rosalia de Leon, head of the Finance department’s international finance group, told Reuters the Asian Development Bank was close to approving the Philippines’ request for a $500-million loan from the bank’s $3-billion counter-cyclical fund.

The loan has a five-year maturity with a three-year grace period, an carries an annual interest rate of LIBOR plus 2%, Ms. de Leon said.

She said the government expects to receive the funding assistance in late September.

Ms. de Leon last week said planned issuance of $1 billion worth of Samurai bonds may also take place early next year.

Mr. Tan earlier said the government was not keen on pursuing another global bond issuance this year as it was counting on the Samurai bonds to pre-fund its 2010 spending plan.

A plan to offer retail Treasury bonds (RTBs) within the year — to cater to the clamor of investors on the lookout for more investment outlets following maturity of some P16 billion in RTBs in July — is still under discussion, he said.

Gosh! utang na naman! Idagdag itong 11 billion dollars sa 4.2 trillion pesos next year!

Talagang panigurado bankrupt ang gobyernong i-take over ng bagong presidente next year dahil huling tongpats na yung makukuha sa 11 billion dolars na uutangin ng administrasyon ni Gloria!!:bash::bash::bash:

RP eyes $2 billion in foreign loans

By Iris C. Gonzales
(The Philippine Star)
Updated August 19, 2009 12:00 AM

MANILA, Philippines - The government is looking at borrowing $2 billion from foreign commercial creditors :bash:next year, higher than earlier planned to finance a wider-than expected budget deficit, National Treasurer Roberto Tan said yesterday.

The rest of the financing requirements for 2010 would be sourced from domestic sources. This would amount to P475.2 billion or roughly $9 billion, Tan said.:bash:

However, he stressed that the numbers could still change as these are constantly being reviewed.

“These are all emerging numbers. They are all subject to review,” he said in a telephone interview.

The emerging borrowing mix for 2010, meanwhile, is that 72 percent would come from domestic sources and 28 percent would come from foreign lenders.

This year, the government has so far raised $2.25 million from foreign commercial creditors after successfully selling $1.5 billion in dollar-denominated bonds last January and $750 million last month.

The government borrows from local and foreign sources to finance its budgetary requirements.

The Development Budget Coordination Committee (DBCC), the interagency group that sets the country’s macroeconomic assumptions, approved a wider deficit of P233.4 billion for 2010 from the previous program of P208 billion.

The DBCC also announced that the economy may grow anywhere from 2.6 percent to 3.6 percent in 2010, higher than the revised projected growth range for the year of 0.8 percent to 1.8 percent.

With gross domestic product (GDP) projected at a range of 2.6 percent to 3.6 percent for 2010, the DBCC approved a budget of P1.541 trillion for next year.

This is P115 billion or eight percent higher than the 2009 budget of P1.426 trillion and is consistent with the goal of reducing the budget deficit to 2.8 percent of GDP from 3.2 percent of GDP in 2009, the DBCC said.

Palace admits GMA overspent travel budget by P1B
By Marvin Sy (The Philippine Star)
August 19, 2009
http://www.philstar.com/Article.aspx?articleId=497227&publicationSubCategoryId=63

MANILA, Philippines - Malacañang admitted yesterday that the Office of the President had exceeded its budget allocation for travel expenses by over P1 billion from 2001 to 2009 but insisted that there was nothing wrong with it.

Deputy Executive Secretary for administration and finance Susana Vargas presented figures showing the overspending at a press briefing in Malacañang yesterday.

Vargas disclosed that P1.4 billion had been allocated for local and foreign trips of the Office of the President (OP) from 2001 to 2009 but the actual amount spent was close to P2.5 billion.

Vargas noted that on a yearly basis, the OP received P130 million for travel expenses until 2007, when the figure was raised to P170 million and then to P244.6 million each for 2008 and this year.

Malacañang’s disclosure came on the heels of an announcement by Bukidnon Rep. Teofisto Guingona III that the OP exceeded its travel budget by P1.3 billion from 2002 to 2008. Guingona said his figures were provided by the Commission on Audit (COA).

But Vargas explained that there was nothing irregular about the OP’s travel expenses and that it was allowed to draw from “savings” on other items in the miscellaneous and other operating expenditures provision in the OP’s budget.

She said that most of the additional funds needed for the travels were taken from the maintenance and other operating expenses (MOOE) while only P67 million was taken from the contingency funds.

“The difference was drawn from our regular MOOE. It’s allowed. It’s still within the allotment cast,” Vargas said.

Deputy presidential spokesman Gary Olivar also defended the Palace’s travel expenses.

“It is the ability provided within the GAA (General Appropriations Act) to cover expenditures on any given item in excess of the budget allocation by savings from other budget items and it should be within the appropriately authorized class,” Olivar said.

“For example, under the local or foreign travel which is an item under MOOE, the savings have to come from class of MOOE,” he explained.

Olivar also defended the use of the contingency fund for President Arroyo’s travel expenses, saying it is legal.

“When the congressman said that the entire contingency fund was exhausted because of the travels, he is wrong. The contingency fund can be used for other MOOE in excess of allocation as provided by the law. So he misspeaks,” Olivar said, referring to Guingona.

The controversy over the President’s travel expenditures came immediately after reports on her supposed lavish dinners in US restaurants with her entourage and friends. The controversy overshadowed reports on her meeting with US President Barack Obama.

Vargas noted that Mrs. Arroyo’s trip to the US cost the taxpayers a total of P19.19 million.

But Olivar emphasized that the overall benefits of the trips should also be taken into account.

“This is a mishmash of numbers. If we look at all the numbers together, we are looking at over $6 billion, a very rough estimate. That’s about 312,000 dinners at Le Cirque, assuming that the number is correct, which by the way, the restaurant management has denied,” Olivar said.

Le Cirque was the posh restaurant in New York where Mrs. Arroyo and her entourage had dinner.

According to the New York Post, the presidential entourage was billed $20,000 for the dinner.

An article in the Filipino Reporter quoting the contact manager of Le Cirque denied the $20,000 bill reported by the New York Post.

At yesterday’s briefing, Vargas also clarified that the OP did not spend a single centavo for the expenses of the members of Congress who accompanied the President to the US.

Probe, not excuses

Guingona, meanwhile, challenged Speaker Prospero Nograles yesterday to lead an inquiry on allegations of overspending in Mrs. Arroyo’s foreign travels instead of making excuses for the controversy, which has sparked public uproar.

“I had expected that, as the leader of the House, Speaker Nograles would be the first in ensuring the proper use of the budget, especially so because the power over the purse is exclusively entrusted to Congress,” Guingona said.

“Instead, he is providing excuses for the abuse of budget,” he told reporters at a press briefing.

Guingona earlier said a Commission on Audit briefing last Aug.12 revealed that in 2008, the Office of the President spent P920 million from the contingency fund when the budget only allowed for P800 million.

“From previous hearings I already knew that the travel expenses of the Office of the President in excess of the budget was, in fact charged to the contingency fund,” Guingona said.


_________________________


Palace aides admit Gloria overspending
By Aytch S. de la Cruz
Daily Tribune
08/19/2009
http://www.tribune.net.ph/headlines/20090819hed2.html


Malacañang, beleaguered by public furor over the high-flying lifestyle of President Arroyo, tried to fend off charges Arroyo has been constantly overspending on her numerous trips but ended up confirming Bukidnon Rep. Teofisto "TG" Guingona III’s allegation of overspending.

Malacañang presented to reporters the Palace’s deputy executive secretary for administration and finance Ching Vargas to dispute Guingona’s claims.

Equipped with copies of documents furnished by her office, Vargas gave a breakdown of the budget allocated to the Office of the President (OP) for Arroyo’s local and foreign trips.

Based on Vargas’ record, the OP was given a P130-million budget from 2001 to 2006 for the trips, the following year, 2007, this increased to P170 million and soared to P244.6 million from 2008 until August of this year, totaling approximately P1.5 billion during the entire period Vargas cited.

When asked on the reason for the rapid increase in the budget in the past three years, Vargas said it was due to the fluctuating exchange rate of the peso against the dollar and as a result of the "demands of the time." The peso in the past three years, however, was on a constant rate of below 50 per dollar and had even strengthened to around 47 per dollar during the period.

"For an allocation of the Office of the President of P1,439,232,000 for local and foreign trips, we spent from 2001 up to August 14, 2009 P2,499,280,595.08," Vargas stated which clearly indicated that the OP has indeed exceeded its budgeted allocation for Mrs. Arroyo’s trip by P1.2 billion.

Vargas, however, was adamant to admit the apparent overspending by resorting to what she referred to as the three ‘allotment classes’ which was allowed according to the mandate of the budget procedure that include personal services (PS), maintenance and other operating expenditures (MOOE), and the capital outlay.

"So we stayed within our regular MOOE. We spent for foreign travels, instead of…let’s say as of Aug. 14 the total allocation, as I said earlier, was P1,439,232,000. But we spent P2,499,280,595.08. The differences in these were obtained from our regular MOOE, since it is allowable," Vargas asserted.

She added that the OP only drew P67 million from the contingent fund last 2007 for the foreign trips which was part of what Guingona was alleging.

Arroyo’s Economic Spokesman Gary Olivar tried to back up Vargas citing the concept of ‘budget flex’ in respect of the provision in the budget.

"There was budget flex applied, over the period in question, wherein we were short or rather we were in excess of allocation by about P1.2 billion. Out of that P1.2 billion, budget flex was applied to other MOOE items to a total of P870 million and a balance of P337 million was taken from the contingency fund," Olivar said.

He lectured media that such measure was allowed under the budget act and under normal budget procedures in any organization.

Olivar claimed Guingona erred in his assertion with regard to the use of the contingency funds citing an article written in the official gazette which says that ‘contingent funds are used to fund requirements of new and/or urgent projects and activities that need to be implemented during the year including the cost of local and foreign travels of the President.’

Arroyo’s spokesmen appeared vexed when reported demanded further clarification on the overspending allegations.

The Palace nonetheless remained clueless as to where some of the congressmen who were part of the recent US trip of Arroyo got the money spent for their own expenses given that these congressmen already said they did not draw any amount from their own wallets.

Press Secretary Cerge Remonde only said that Speaker Prospero Nograles take care of this matter since he already issued a statement that some of the congressmen who tagged along in the recent official visit to the United States were already informed that they would be the one to shoulder the expenses they incurred from that particular trip out of their own personal funds.

Despite the public furor over the ostentatious junkets of Arroyo, Nograles rejected calls for the forming of a special body to look into what he charged as overspending in Arroyo’s travels.

Nograles said creating a special body for the sole purpose of investigating the President who Guingona is accusing to have spent over her budgeted travel allocation is highly illegal.

In a press conference yesterday, Guingona said the President had violated the law when she overshot by P2.7 billion her travel expenses since assuming the presidency in 2001.

"The Office of President has consistently exceeded its budget on travel. The excess amounts were charged to the contingent fund. In 2008, the expense of the Office of the President exceeded even the contingent fund," Guingona said.

"That was illegal and she had violated the law. I dare Speaker Nograles to stop making excuses in behalf of the President and create a special investigate this matter as it is Congress which is empowered to appropriate the national budget," he added.

He, however, admitted most of his figures came from the Department of Budget and management (DBM).

Nograles said the President is empowered to realign the budget as provided for in Presidential Decree 1177.

"It’s better for him (Guingona) to file a measure and let it go through legislative process," said Nograles.

The Speaker also shrugged off Guingona’s accusation that he is making excuses in behalf of Malacañang.

"If he stops attacking then we’ll stop defending," Nograles said.

"I also have the right to reply but my reply is not an excuse," Nograles said.

Senators were also united in saying that legislators who took part in the US junket should shell out money to pay for what they spent during the trip.

Senate President Juan Ponce Enrile did not buy congressmen’s claims that they do not have any idea as to who covered their bills, including their hotel accommodation.

Asked on who foot the travel expenses of Senators Miriam Defensor-Santiago and Manuel "Lito" Lapid, Enrile admitted being unaware of these.

"I don’t know, this has become muddled. Maybe the best thing is to find it out from the restaurant," Enrile said, referring to the reported lavish dinner incident.

Sen. Panfilo Lacson said there might be a fourth or a fifth lavish dinners. "We don’t know that," he said. Why is Malacañang so evasive in tackling this issue? Why is Malacañang pointing to just anybody of footing the bills? There must be something into this evasiveness, he said

Earlier, three lawmakers named two more restaurants that President Arroyo and her entourage dined at while in the US. Her entourage reportedly also visited Bouley restaurant and Wolfgang’s Steakhouse in New York.

Manila Rep. Bienvenido Abante and Batangas Rep. Hermilando Mandanas earlier confirmed that the group had dined in Bouley restaurant on Aug. 2. Mindoro Occidental Rep. Amelita Villarosa, meanwhile, said the entourage also dined at Wolfgang’s Steakhouse on Park Avenue, Manhattan.

The two dinners are separate from Mrs. Arroyo’s two "lavish" dinners in Bobby Van’s Steakhouse on July 30 and Le Cirque restaurant on Aug. 2.

Ang sisi ng taong bayan ay mararamdaman ng susunod na pangulo. Wala ng paki-elam si Gloria kasi paalis na naman sya. :bash:

Ang sisi ng taong bayan ay mararamdaman ng susunod na pangulo. Wala ng paki-elam si Gloria kasi paalis na naman sya. :bash:

Kailangang kumita na sila. Tapos na ang malilgayang araw pagwala na sa puder.

Tsaka kailangan ng pera kasi pag kinasuhan na si Gloria et al...kailangang makatakbo kaagad sa ibang bansa na wala tayong extradition treaty!:bash:

USA and European countries--gurus of globalization are going protectionism...(i.e. outsourcing, farm subsidies, non-tariff etc)..attacking poor countries like the Philippines (i.e. wine, BPO etc)..

These f*cks should practice what they preach or just stop endorsing paradigms that they themselves dont believe in!!:bash::bash:

May karma punish these a-holes!:bash:

‘P1B in the hole, but did not call it overspending’
BY REGINA BENGCO
Malaya
http://www.malaya.com.ph/aug19/news3.htm

MALACAÑANG yesterday said it spent P1.06 billion more than what was allocated for President Arroyo’s local and foreign trips in 2001 to Aug. 14, 2009.

Susana Vargas, deputy executive secretary for finance and administration, said from January 2001 to August 2009, the allocation for the President’s trips was P1,439,232.

She said the actual expenses reached P2,499,280,595.08, or a difference of P1,060,048,595.08 or almost double the amount earmarked for Arroyo’s travel expenses.

However, Vargas and Arroyo’s spokesmen do not want to call it "overspending" as they said it is legal for government agencies, including the Office of the President, to augment their operating expenses from savings and the Contingent Fund.

Gary Olivar, deputy presidential spokesman for economic affairs, said the practice is allowed under the "budget flex" policy which is provided for in the national budget law.

Vargas said her figures are backed by receipts and vouchers which have been submitted to their finance division and the Commission on Audit.

"We stayed within our MOOE (maintenance and other operating expenses). I don’t think it is correct also to say that we overspent," she said, adding "these are the usual expenses we undertake during presidential trips."

She said Malacañang tapped the Contingent Fund for foreign travel expenses in 2007, getting P67 million out of the P800-million funding.

Olivar said out of the "excess in allocation" of around P1.2 million, "budget flex" was applied for around P870 million and the balance of about P330 million came from the Contingent Fund.

Vargas said the travel allocation for the OP was constant at P130 million in 2001-2006, but it was raised to P170 million in 2007 and to P244.616 million in 2008 and 2009.

She said Malacañang increased the travel allocation "because of the needs of the times."

"Sometimes there are more trips that are already earmarked for the year. These are international commitments made by the President, so we added P40 million, from P130 million to P170 million. Perhaps the dollar, we also suffer from the fluctuating effects of the dollar so it, must have grown in 2007, the exchange rates," she said.

Olivar said it is "normal practice" to raise the travel allocation after a few years to reflect actual costs incurred.

He said the budget for the President’s travel started to increase in 2007 because the fruits from the fiscal reforms such as the expanded value added tax had started to kick in.

"Basically, the government was enjoying a windfall from the new tax into coffers and of course a lot of that went into pro-poor programs and infrastructure but there was certainly enough from that to fund an additional P40 million of budget allocation for traveling. So the overall fiscal picture was growing healthier, round 2004-2005," he said.

Vargas said she liquidates travel expenses a week after a trip, well within the 60-day period required by COA.

Vargas said Arroyo’s trip to the US on July 29 to August 5 cost government P19,198,918.53. She said this included hotel expenses, airline fare (in case of commercial flights), rent of equipment, purchase of supplies, expenses for meetings with the Filipino community, transportation and gratuities.

She said the OP only paid for the expenses of the President’s party (staff and security) and Senators Miriam Santiago and Lito Lapid and Speaker Prospero Nograles Jr., who were members of the party.

She said she "never spent a single centavo" for the expenses of the Cabinet members and the other lawmakers, including presidential son and Camarines Sur Rep. Diosdado Ignacio Jose Maria Arroyo.

She said the expenses of the Cabinet members are charged to their agencies.

She said they stayed at the Waldorf and Willard hotels during the US trip because "they offer one of the lowest rates," with each room costing $250 for Waldorf and $249 for Willard.

Olivar said the reported third dinner at the French Boulay restaurant in New York was not really lavish and that the claim of a $16,000 bill was just based on estimates from blogs. He denied reports that money from the Philippine consulate in New York was used for the dinner.

"These future discussions and charge properly belong in a duly constituted venue of inquiry, and that is the Ombudsman’s office. The Palace, I think, has decided to seek protection, if you will, through due process in this torrent of misinformation, however motivated it may be. That’s why the Ombudsman is there to clear these things up properly," he said.


312,000 DINNERS

Olivar said the economic benefits of the US trips would total at least roughly $6 billion, including $136 million for security and development assistance, $350 to $500 million from the Millennium Challenge Corp., $1.6 billion from the Generalized System of Preferences, $190 million from the Veterans Equity Fund, $1.2 billion in investments from the Save Our Industries Bill, $429 million from defense and military assistance, $212 million from US Aid in Mindanao, and $1 billion in Coca-Cola investments.

He said still to be quantified are the benefits from the Coral Triangle Initiative, opening up of market access, gains for overseas Filipinos to the US and other commitments.

"That’s about 312,000 dinners at Le Cirque, assuming that number is correct, which by the way the restaurant management has denied," he said.

Asked if Arroyo will not forego future travels because of the controversies that the US trip has elicited, he said: "The President will have to make her decisions on the basis of what is the best of the national interest as she sees fit."

Rep. Teofisto Guingona (NP, Bukidnon) said the House should investigate the Office of the President for consistently exceeding its travel budget since 2001.

In a press conference, Guingona said the excess amounts were charged to the Contingent Fund which he said was "illegal."

"She had violated the law. I dare Speaker (Prospero) Nograles to stop making excuses in behalf of the President and investigate this matter as it is Congress which is empowered to appropriate the national budget," he said.

Nograles rejected Guingona’s request for the creation of a special investigating body.

"I don’t think the Speaker on his own volition can make that special body," he said, adding Guingona should just wait for the passage of his bill prohibiting the President from realigning portions of the budget to her office’s own funds.

Nograles chided Guingona for asking him to "stop making excuses."

"If he stops attacking then we’ll stop defending," said Nograles. "I also have the right to reply but my reply is not an excuse."


OVERSPENDING

Guingona, quoting from a COA report, said while the Contingent Fund for 2008 amounted to only P800 million, the Palace spent P919 million last year, or P119 in excess.

He said part of the contingent fund could have been used for travel – a practice which is legal – but could not provide details.

Quoting the Department of Budget and Management’s Budget of Expenditures and Sources of Financing (BESF), Guingona earlier claimed that the Palace had already spent P2.8 billion for travel from 2001 to 2008 when the total budget for eight years was only P1.530 billion.

The COA report also showed that the appropriations for the Priority Development Assistance Fund-Maintenance and Other Operating Expense (PDFA-MOOE) for 2008 also reached P6.895 billion which is P2 billion above the appropriated amount of P4.98 billion.

PDFA is better known as "pork barrel" with each congressman allotted at least P70 million and each senator, P200 million.

The calamity fund also reached P3.275 billion which is P1.3 billion more than the P2 billion appropriated budget.

Guingona said the concerned parties should be held answerable for all the overspending "but let’s take it up some other time."

Nograles has said the presentation of Assistant Commissioner Carmela Perez to the House did not specify anything about the President’s travels although it included the issue on allotments that exceeded appropriations for some Special Purpose Funds of which Contingent Fund was one of the items.

In terms of the total travel expenses amounting to P2.7 billion as claimed by Guingona, Nograles said the research done by his staff may have included all agencies under the Office of the President.

"Over three dozen agencies report to the Office of the President, which require also foreign travels in the course of their work. Their expenses may have been inadvertently attributed by the research staff of Rep. Guingona to the person of the President," he said.


_______________________



Probe pork barrel overspending, Speaker told
By Lira Dalangin-Fernandez
INQUIRER.net
08/18/2009
http://newsinfo.inquirer.net/breakingnews/nation/view/20090818-220892/Probe-pork-barrel-overspending-Speaker-told


MANILA, Philippines — Spending for the controversial pork barrel or Priority Development Assistance Fund (PDAF) in 2008 exceeded the budget by almost P2 billion, while that of the calamity fund was above the budget by about P1.3 billion.

These were the initial findings of the Commission on Audit (CoA) on the implementation of the 2008 budget presented to select members of the House of Representatives in a briefing last week.

In a press conference Tuesday, Bukidnon Representative Teofisto Guingona III distributed a portion of the CoA findings to point out the excesses in government spending of Malacanang's travel budget and contingent fund.

Quoting the report, he also said that contingency fund for 2008 amounted to P800 million, but that Malacanang has spent P919 million last year, or P119 million more.

Guingona surmised that portion of the contingent fund could have been used for travel, too, as this was allowed by the law. But when asked, he said CoA did not give details how the government spent the amount.

Guingona said the contingent fund should not be used up “for the capricious travel of the President.”

He asked Speaker Prospero Nograles to form a “special investigating committee” to look into the “abuses” in the travel and contingent fund.

As the leader of the chamber, which approves the budget, Nograles should show the way that the budget is spent for its desired purpose, he said.

“Take the lead in this investigation. Be objective, be factual, do your homework, be the leader that Congress badly needs at this time. Stop making excuses for those who abuse the budget. Stop lawyering for those who do not respect the rule of law,” he said.

Malacanang has been in hot water over the July trip of President Gloria Macapagal-Arroyo to the United States, where she and her entourage reportedly spent close to a million pesos in a dinner at the Le Cirque restaurant in New York City.

Several of the 28 congressmen who joined the trip also said they did not spend for their plane fare and hotel expenses. The Speaker said he did not know if Malacanang shouldered the cost or if it was the US government.

Quoting the Department of Budget and Management's Budget of Expenditures and Sources of Financing (BESF), Guingona earlier said that Malacanang had already spent P2.8 billion for travel from 2001 to 2008 as against the total budget for eight years of P1.530 billion.

In the CoA document, appropriations for PDAF-Maintenance and Other Operating Expense also totaled to P6.895 billion or some P2 billion above the appropriated amount of P4.98 billion.

Pork barrel is the amount used by congressmen and senators to fund their pet projects. Each congressman receives P70 million in PDAF a year, while each senator gets P200 million.

According to the CoA document, spending for calamity fund also totaled to P3.275 billion, or some P1.3 billion more than the appropriated amount of P2 billion.

"They have to answer for this too, but let's take it up some other time," Guingona said.

Probe pork barrel overspending, Speaker told
By Lira Dalangin-Fernandez
INQUIRER.net
08/18/2009
http://newsinfo.inquirer.net/breakingnews/nation/view/20090818-220892/Probe-pork-barrel-overspending-Speaker-told


MANILA, Philippines — Spending for the controversial pork barrel or Priority Development Assistance Fund (PDAF) in 2008 exceeded the budget by almost P2 billion, while that of the calamity fund was above the budget by about P1.3 billion.

These were the initial findings of the Commission on Audit (CoA) on the implementation of the 2008 budget presented to select members of the House of Representatives in a briefing last week.

In a press conference Tuesday, Bukidnon Representative Teofisto Guingona III distributed a portion of the CoA findings to point out the excesses in government spending of Malacanang's travel budget and contingent fund.

Quoting the report, he also said that contingency fund for 2008 amounted to P800 million, but that Malacanang has spent P919 million last year, or P119 million more.

Guingona surmised that portion of the contingent fund could have been used for travel, too, as this was allowed by the law. But when asked, he said CoA did not give details how the government spent the amount.

Guingona said the contingent fund should not be used up “for the capricious travel of the President.”

He asked Speaker Prospero Nograles to form a “special investigating committee” to look into the “abuses” in the travel and contingent fund.

As the leader of the chamber, which approves the budget, Nograles should show the way that the budget is spent for its desired purpose, he said.

“Take the lead in this investigation. Be objective, be factual, do your homework, be the leader that Congress badly needs at this time. Stop making excuses for those who abuse the budget. Stop lawyering for those who do not respect the rule of law,” he said.

Malacanang has been in hot water over the July trip of President Gloria Macapagal-Arroyo to the United States, where she and her entourage reportedly spent close to a million pesos in a dinner at the Le Cirque restaurant in New York City.

Several of the 28 congressmen who joined the trip also said they did not spend for their plane fare and hotel expenses. The Speaker said he did not know if Malacanang shouldered the cost or if it was the US government.

Quoting the Department of Budget and Management's Budget of Expenditures and Sources of Financing (BESF), Guingona earlier said that Malacanang had already spent P2.8 billion for travel from 2001 to 2008 as against the total budget for eight years of P1.530 billion.

In the CoA document, appropriations for PDAF-Maintenance and Other Operating Expense also totaled to P6.895 billion or some P2 billion above the appropriated amount of P4.98 billion.

Pork barrel is the amount used by congressmen and senators to fund their pet projects. Each congressman receives P70 million in PDAF a year, while each senator gets P200 million.

According to the CoA document, spending for calamity fund also totaled to P3.275 billion, or some P1.3 billion more than the appropriated amount of P2 billion.

"They have to answer for this too, but let's take it up some other time," Guingona said.

how can that happen? many opposition congressmen didn't even get their PDAF. Does that mean some poor elementary school didn't have their roofs fixed because they had the misfortune of having an opposition congressman? I guess their money went somewhere like paying for foreign trips of some congressman they don't even know.

RP economy showing ‘signs of recovery’
By Ronnel Domingo
Philippine Daily Inquirer
08/18/2009
http://business.inquirer.net/money/topstories/view/20090818-220938/RP-economy-shows-signs-of-recovery

MANILA, Philippines - Amid hints that the world's biggest economies are on the wayto a rebound, the National Statistical Coordination Board said latest data on the so-called local flash economic indicators “show signs of recovery.”

NSCB director general Romulo A. Virola said the numbers pointed to modest signs of recovery starting from the end of the first quarter.

Virola said most promising were the data on manufacturing output, exports and imports as well as the composite stock index, stock market capitalization and automotive vehicle sales.

The Philippines felt the impact of the global financial crisis in October 2008 as exports decreased, manufacturing production dropped, the stock index declined and car sales weakened.

“Indicators on manufacturing, such as the value and volume of production index and capacity utilization rate, started to improve by February 2009,” Virola said.

NSCB data showed that the value of manufacturing output as of May reached 129.9 points based on 2000 figures after dipping to an eight-month low of 103.5 points in January.

Similarly, the volume of manufacturing output inched up to 75.1 points in May after falling to 60.3 points four months earlier.

As for the capacity utilization rate, this climbed up to 80.1 percent from 77.5 percent in January.

“Total exports as well as exports of electronics and agricultural products exhibited a similar trend,” he added.

The NSCB chief said the same trends were observed in total imports and imports of raw materials and capital goods as well as the composite stock index, stock market capitalization and volume of cars sold.

There are 81 so-named flash indicators which are grouped into eight sectors—prices, production, employment, sales, external sector, national government cash operations, money and banking, and tourism.

According to the NSCB, the levels and movements of these indicators could serve as early warning signals of an economic crisis or recovery when the indicators start to shift significantly from their “normal” levels.

Last May, Virola warned that the Philippines was “teetering into a recession” with the gross domestic product (GDP)—or the total value of domestic output of goods and services—growing a mere 0.4 percent in the first quarter compared to the same period last year.

Virola said that seasonally adjusted GDP contracted 2.3 percent compared to the last three months of 2008, the lowest quarter-on-quarter record in the past two decades.

For easier observation of a series of data, statisticians make seasonal adjustment by leaving out the effects of events that follow a more or less regular pattern in a given period.

A commonly accepted definition of an economic recession is a decrease in GDP, seasonally adjusted and comparing previous quarters, for at least two consecutive quarters.


________________________


Indicators positive now
Business Mirror
Written by Cai A. Ordinario / Reporter
http://www.businessmirror.com.ph/home/top-news/14870-indicators-positive-now.html

THE Philippines has shown “modest signs of recovery” at the end of the first quarter this year from the global financial crisis.

This was reported by the National Statistical Coordination Board (NSCB), based on the conclusions of the Task Force on Flash Indicators to Measure the Impact of the Global Crisis in the Philippines (TFFI) from 81 flash indicators.

The task force is chaired by Dennis Arroyo, director of the National Planning and Policy Staff at the National Economic and Development Authority (Neda).

“The impact of the global financial crisis was felt in the Philippines starting October 2008 as exports decreased, manufacturing dropped, the stock index declined, and car sales weakened. However, statistics point to modest signs of recovery by the end of the 1st quarter of 2009.”

The indicators singled out by the NSCB included those in manufacturing like the value and volume of production index and capacity utilization rate that started to improve by February 2009.

The Volume of Production Index (VoPI) or the manufacturing output had contracted by 13 percent based on the May 2009 round of the Monthly Integrated Survey of Selected Industries (Missi), but the VoPI in May still showed some improvement from the 18.2-percent contraction in April.

The same goes for the Value of Production Index (VaPI) that diminished by 13.1 percent in May, also an improvement from the reduction of April of 17 percent.

Total exports, added the NSCB, exhibited a similar trend as well as exports of electronic products and agricultural products. This was true also in the total imports of raw materials and capital goods.

Total exports in June were slightly larger at $3.41 billion from the $3.09 billion in May. Fresh and processed agricultural-product exports of $175.1 million in May slightly dipped in June’s $117.6 million, while electronic products exports of $1.95 billion in June were up from $1.81 billion in May.

“Other indicators which showed improved performances were the composite stock index, stock-market capitalization and volume of cars sold,” the NSCB said. “The levels and movements of these indicators can serve as early warning signals of economic crisis or recovery when the indicators start to shift significantly from their ‘normal’ levels.”

The indicators are grouped into eight: prices, production, employment, sales, external sector, national government cash operations, money and banking, and tourism.

“These indicators are intended to serve as basis in the measurement of the impact of the global financial crisis in the Philippines and are likewise useful as inputs for economic analysis, target-setting and policy/legislative actions, and research/ studies on the impact/effect of the financial crisis to the poor,” the NSCB said.

RP economy showing ‘signs of recovery’
By Ronnel Domingo
Philippine Daily Inquirer
08/18/2009
http://business.inquirer.net/money/topstories/view/20090818-220938/RP-economy-shows-signs-of-recovery

MANILA, Philippines - Amid hints that the world's biggest economies are on the wayto a rebound, the National Statistical Coordination Board said latest data on the so-called local flash economic indicators “show signs of recovery.”

NSCB director general Romulo A. Virola said the numbers pointed to modest signs of recovery starting from the end of the first quarter.

Virola said most promising were the data on manufacturing output, exports and imports as well as the composite stock index, stock market capitalization and automotive vehicle sales.

The Philippines felt the impact of the global financial crisis in October 2008 as exports decreased, manufacturing production dropped, the stock index declined and car sales weakened.

“Indicators on manufacturing, such as the value and volume of production index and capacity utilization rate, started to improve by February 2009,” Virola said.

NSCB data showed that the value of manufacturing output as of May reached 129.9 points based on 2000 figures after dipping to an eight-month low of 103.5 points in January.

Similarly, the volume of manufacturing output inched up to 75.1 points in May after falling to 60.3 points four months earlier.

As for the capacity utilization rate, this climbed up to 80.1 percent from 77.5 percent in January.

“Total exports as well as exports of electronics and agricultural products exhibited a similar trend,” he added.

The NSCB chief said the same trends were observed in total imports and imports of raw materials and capital goods as well as the composite stock index, stock market capitalization and volume of cars sold.

There are 81 so-named flash indicators which are grouped into eight sectors—prices, production, employment, sales, external sector, national government cash operations, money and banking, and tourism.

According to the NSCB, the levels and movements of these indicators could serve as early warning signals of an economic crisis or recovery when the indicators start to shift significantly from their “normal” levels.

Last May, Virola warned that the Philippines was “teetering into a recession” with the gross domestic product (GDP)—or the total value of domestic output of goods and services—growing a mere 0.4 percent in the first quarter compared to the same period last year.

Virola said that seasonally adjusted GDP contracted 2.3 percent compared to the last three months of 2008, the lowest quarter-on-quarter record in the past two decades.

For easier observation of a series of data, statisticians make seasonal adjustment by leaving out the effects of events that follow a more or less regular pattern in a given period.

A commonly accepted definition of an economic recession is a decrease in GDP, seasonally adjusted and comparing previous quarters, for at least two consecutive quarters.


________________________


Indicators positive now
Business Mirror
Written by Cai A. Ordinario / Reporter
http://www.businessmirror.com.ph/home/top-news/14870-indicators-positive-now.html

THE Philippines has shown “modest signs of recovery” at the end of the first quarter this year from the global financial crisis.

This was reported by the National Statistical Coordination Board (NSCB), based on the conclusions of the Task Force on Flash Indicators to Measure the Impact of the Global Crisis in the Philippines (TFFI) from 81 flash indicators.

The task force is chaired by Dennis Arroyo, director of the National Planning and Policy Staff at the National Economic and Development Authority (Neda).

“The impact of the global financial crisis was felt in the Philippines starting October 2008 as exports decreased, manufacturing dropped, the stock index declined, and car sales weakened. However, statistics point to modest signs of recovery by the end of the 1st quarter of 2009.”

The indicators singled out by the NSCB included those in manufacturing like the value and volume of production index and capacity utilization rate that started to improve by February 2009.

The Volume of Production Index (VoPI) or the manufacturing output had contracted by 13 percent based on the May 2009 round of the Monthly Integrated Survey of Selected Industries (Missi), but the VoPI in May still showed some improvement from the 18.2-percent contraction in April.

The same goes for the Value of Production Index (VaPI) that diminished by 13.1 percent in May, also an improvement from the reduction of April of 17 percent.

Total exports, added the NSCB, exhibited a similar trend as well as exports of electronic products and agricultural products. This was true also in the total imports of raw materials and capital goods.

Total exports in June were slightly larger at $3.41 billion from the $3.09 billion in May. Fresh and processed agricultural-product exports of $175.1 million in May slightly dipped in June’s $117.6 million, while electronic products exports of $1.95 billion in June were up from $1.81 billion in May.

“Other indicators which showed improved performances were the composite stock index, stock-market capitalization and volume of cars sold,” the NSCB said. “The levels and movements of these indicators can serve as early warning signals of economic crisis or recovery when the indicators start to shift significantly from their ‘normal’ levels.”

The indicators are grouped into eight: prices, production, employment, sales, external sector, national government cash operations, money and banking, and tourism.

“These indicators are intended to serve as basis in the measurement of the impact of the global financial crisis in the Philippines and are likewise useful as inputs for economic analysis, target-setting and policy/legislative actions, and research/ studies on the impact/effect of the financial crisis to the poor,” the NSCB said.

This is huge:cheers:

Ayalas and partner creating $1-billion global BPO firm
By EMMIE V. ABADILLA
August 17, 2009, 3:23pm
http://www.mb.com.ph/node/216247/ayala
Ayala-backed eTelecare Global Solutions, Inc. and Stream Global Services, Inc. have combined forces to create an international Business Process Outsourcing (BPO) concern to hire 30,000 workers and haul in $1 billion sales next year.

The merger of Stream, with $523 million revenues and eTelecare, with $299 million, will create a global BPO leader located in 50 solution centers in over 20 countries in North America, Europe, the Philippines, Latin America, India, the Middle East, and Africa.

LiveIt Investments Ltd., Ayala Corporation’s BPO investment company, yesterday disclosed that its investee company EGS Corp., the indirect parent company of eTelecare Global Solutions, Inc., has entered into a definitive agreement to combine with Stream Global Services, Inc., in a stock-for-stock exchange.

As a result, the current Stream stockholders will own 57.5 percent of the combined venture and EGS Corp. stockholders will have 42.5 percent. Already, the Boards of Directors and principal stockholders of both firms have approved the deal.

These include Ares Management LLC and certain founding Stream stockholders representing 90.2 percent of Stream’s outstanding shares, as well as LiveIt and Providence Equity Partners LLC, who together own 100 percent of EGS Corp.

Worldwide, the merger will operate under the Stream Global Services name and under the eTelecare brand in the Philippines. It will have a broadly diversified Fortune 1000 customer base, an experienced executive team, plus technical and product leadership across a wide range of industries, including the technology, retail, entertainment, media, telecommunications and financial service sectors.

The combination of a world class company like Stream, with a Philippine leader like eTelecare, will create one of the largest and most competitive companies in the global BPO industry, uniquely positioned to deliver a full range of market leading solutions to clients, announced Fernando Zobel de Ayala, President of Ayala Corporation.

“The Philippines is playing an increasingly critical role in the outsourcing strategies of global clients, due to its many advantages, such as a large and high quality workforce and robust infrastructure,” he stressed.

how can that happen? many opposition congressmen didn't even get their PDAF. Does that mean some poor elementary school didn't have their roofs fixed because they had the misfortune of having an opposition congressman? I guess their money went somewhere like paying for foreign trips of some congressman they don't even know.

Most likely.

This is huge:cheers:

Ayalas and partner creating $1-billion global BPO firm
By EMMIE V. ABADILLA
August 17, 2009, 3:23pm
http://www.mb.com.ph/node/216247/ayala
Ayala-backed eTelecare Global Solutions, Inc. and Stream Global Services, Inc. have combined forces to create an international Business Process Outsourcing (BPO) concern to hire 30,000 workers and haul in $1 billion sales next year.

The merger of Stream, with $523 million revenues and eTelecare, with $299 million, will create a global BPO leader located in 50 solution centers in over 20 countries in North America, Europe, the Philippines, Latin America, India, the Middle East, and Africa.

Worldwide, the merger will operate under the Stream Global Services name and under the eTelecare brand in the Philippines.
The combination of a world class company like Stream, with a Philippine leader like eTelecare, will create one of the largest and most competitive companies in the global BPO industry, uniquely positioned to deliver a full range of market leading solutions to clients, announced Fernando Zobel de Ayala, President of Ayala Corporation.

“The Philippines is playing an increasingly critical role in the outsourcing strategies of global clients, due to its many advantages, such as a large and high quality workforce and robust infrastructure,” he stressed.

No doubt, this is definitely a good news!:cheers:

Hopefully, with a booming BPO industry, local (Pinoy)value added must increased (i.e. locally made hardware and software, equipments etc. aside from labor) to maximize the benefits of the Philippines.:)

You need money to pump into an economy whenever there is threat of a recession or if a recession is already in place. Cutting interest rates would usually spur an economy, but cutting interest rates would not help in this environment.

How do we expect to bring jobs to the masses and expect zero borrowing/deficits at the same time.

America's debt was 113% of gdp after world war two. That would be almost 8 trillion dollars today. The lesson during that time is that when faced with depression or crisis not alleviated by interest rates, the government must spend and face deficits in order to stimulate the economy. Spending money on infrastructure and other government programs put people to work and money on people's pockets.

I know that the main concern of deficit hawks here is mounting debt on future generations. The concern is valid, but the spending today should be viewed as an investment for the future. By 1974, America's debt dropped 24% of GDP. All that spending during world war two gave Americans the resources to fulfill their American dreams, we can do the same for Filipinos.

Another issue among deficit hawks are tax leaks in the government. The biggest difference between world war two america and the Philippines today is FRANKLIN DELANO ROOSEVELT. FDR was a consumate politician who was able to control corruption during his unprecedented 16 years as President. FDR along with Harry Hopkins knew that corruption from local officials did not benefit them at all, but it put their reputations at risk. THIS IS AN IDEA THAT I THINK ALL OUR PRESIDENTS, INCLUDING GLORIA, REALLY DON'T UNDERSTAND. Corruption in the Philippines is very grassroots, how can GMA address this problem? how can she and future presidents monitor corruption from local officials up to congress??

I believe that the administration is doing the right thing by spending on infrastructure and other beneficial government programs even if it incurs greater debt to gdp ratio. However, it is important that during a time of increased federal spending, corruption should be tightly monitored.

^^ I'd like to add that this administration has really neglected its responsibilities in overseeing where stimulus money is going to. GMA has really improved on our economy, but the lack of control she has had on local and administrative corruption has really tarnished what should have been a really really good assessment on her handling of the economy.

I hope the next president will have economic policies similar to that of GMA, but at the same time have the fortitude to fight corruption even if it alienates allies.

Theres The Rub

May araw din kayo

By Conrado de Quiros
Philippine Daily Inquirer
First Posted 01:04:00 08/17/2009

Tatagalugin ko na nang makuha n’yo. Kahit na lingwaheng kanto lang ang alam kong Tagalog.

Tutal Buwan ng Wika naman ang Agosto. Baka sakali ’yung paboritong wika ni Balagtas ay makatulong sa pag-unawa n’yo dahil mukhang ’yung paboritong wika ni Shakespeare ay lampas sa IQ n’yo. Kung sa bagay, ang pinakamahirap gisingin ay ’yung nagtutulug-tulugan. Ang pinakamahirap padinggin ay ’yung nagbibingi-bingihan. Ang pinakamahirap paintindihin ay ’yung nagmamaangmaangan. Bueno, mahirap din paintindihin ’yung likas na tanga. Pero bahala na.

Sabi mo, Cerge Remonde, alangan naman pakanin ng hotdog ang amo mo. Bakit alangan? Hindi naman vegetarian ’yon. At public service nga ’yon, makakatulong dagdagan ng cholesterol at salitre ang dugong dumadaloy papuntang puso n’ya. Kung meron man s’yang dugo, kung meron man s’yang puso.

Bakit alangan? Malamang di ka nagbabasa ng balita, o di lang talaga nagbabasa, kung hindi ay nalaman mo ’yung ginawa ni Barack Obama at Joe Biden nitong nakaraang Mayo. Galing silang White House patungong Virginia nang magtakam sila pareho ng hamburger. Pina detour nila ang motorcade at tumuloy sa unang hamburgerang nakita nila. Ito ang Ray’s Hell Burger, isang maliit at independienteng hamburger joint.

Tumungo ang dalawa sa counter at sila mismo ang nag-order, hindi mga aides. Nagbayad sila ng cash na galing sa sariling bulsa at kagaya ng ibang customers ay pumila para sa turno nila.

Ito ay presidente at bise presidente ng pinakamakapangyarihang bansa sa buong mundo. Kung sa bagay, ’yung amo n’yo ay hindi naman talaga presidente. Di lang makita ang pagkakaiba ni Garci kay God kaya nasabing “God put me here.” Pekeng presidente, pekeng asal presidente.

Sabi mo, Anthony Golez, maliit lang ang P1 million dinner kumpara sa bilyon-bilyong pisong dinala ng amo mo sa bansa.

Ay kayo lang naman ang nagsasabing may inambag ang amo n’yo na bilyong-bilyong piso sa kaban ng bayan. Ni anino noon wala kaming nakita. Ang nakita lang namin ay yung bilyon-bilyong piso—o borjer, ayon nga sa inyong dating kakosa na si Benjamin Abalos—na inaswang ng amo n’yo sa kaban ng bayan. Executive privilege daw ang hindi n’ya sagutin ito. Kailan pa naging pribilehiyo ng isang opisyal ang di managot sa taumbayan? Kailan pa naging pribilehiyo ng isang opisyal ang magnakaw?

Maliit lang pala ang P1 million, ay bakit hindi n’yo na lang ibigay sa nagugutom? O doon sa mga sundalo sa Mindanao? Tama si Archbishop Oscar Cruz. Isipin n’yo kung gaano karaming botas man lang ang mabibili ng P1 million at karagdagang P750,000 na nilamon ng amo n’yo at mga taga bitbit ng kanyang maleta sa isa pang restawran sa New York.

Maliit lang pala ang P1 million (at P750,000), bakit hindi n’yo na lang ibigay doon sa pamilya ng mga sundalong namatay sa Mindanao? Magkano ’yung gusto n’yong ibigay sa bawat isa? P20,000? Sa halagang iyan 50 sundalo na ang maaabuluyan n’yo sa $20,000. Pasalu-saludo pa ’yang amo n’yo sa mga namatay na kala mo ay talagang may malasakit. Bumenta na ’yang dramang ’yan. At pasabi-sabi pa ng “Annihilate the Abus!” Di ba noon pa n’ya ’yan pinangako? Mahilig lang talagang mangako ’yang amo n’yo.

Bukod pa d’yan, saan ba nanggaling ’yung limpak-limpak na salapi ng mga kongresista na pinansisindi nila ng tabako? Di ba sa amin din? Tanong n’yo muna kung ayos lang na i-blowout namin ng wine at caviar ang amo n’yo habang kami ay nagdidildil ng asin—’yung magaspang na klase ha, ’di yung iodized. Ang tindi n’yo, mga p’re.

At ikaw naman, Romulo Macalintal, tapang ng apog mo. Maiisip mo tuloy na sundin na lang ang mungkahi ni Dick the Butcher sa “Henry VI” ni Shakespeare: “First thing we do, let’s kill all the lawyers.” Pa ethics-ethics ka pa, pasalamat ka di nasunog ang bibig mo sa pagbigkas ng katagang ’yon.

Marami mang sugapa rin sa aming mga taga media, di naman kasing sugapa n’yo. At di naman kami sineswelduhan ng taumbayan. Wala naman kaming problemang sumakay sa PAL at kailangan pang bumili ng P1.2 billion jet. Anong sabi n’yo, kailangan ng amo n’yo sa pabyahe-byahe? E sino naman ang may sabing magbabyahe s’ya? Ngayon pang paalis na s’ya—malinaw na ayaw n’yang umalis. Bakit hindi na lang s’ya bumili ng Matchbox na eroplano? Kasya naman s’ya ro’n.

Lalo kayong nagpupumiglas, lalo lang kayong lumulubog sa kumunoy. Di n’yo malulusutan ang bulilyasong ginawa n’yo. Para n’yo na ring inagaw ang isinusubong kanin ng isang batang nagugutom. Tama si Obama at Biden: Sa panahon ng recession, kung saan nakalugmok ang mga Amerikano sa hirap, dapat makiramay ang mga pinuno sa taumbayan, di nagpapakapariwara. Sa panahon ng kagutuman, na matagal nang kalagayan ng Pinoy, at lalo pang tumindi sa paghagupit ng Typhoon Gloria, dapat siguro uminom na lang kayo ng insecticide. Gawin n’yo ’yan at mapapawi kaagad ang kagutuman ng bayan.

Sa bandang huli, buti na rin lang at ginawa n’yo ’yung magpasasa sa P1 million dinner habang lupaypay ang bayan sa kagutuman—di lang sa kawalan ng pagkain kundi sa iba pang bagay—at pagdadalamhati sa yumaong Ina ng Bayan. Binigyan n’yo ng mukha ang katakawan. Katakawang walang kabusugan. Mukhang di nakita ng masa sa usaping NBN, mukhang di nakikita ng masa sa usaping SAL. Mukhang nakita lang ng masa dito sa ginawa n’yong ito. Sa pagpapabondat sa New York habang naghihinagpis ang bayan.

At buti na rin lang mayroon tayong sariling wika. Di sapat ang Inggles para iparamdam sa inyo ang suklam na nararamdaman namin sa inyo. Di sapat ang Inggles para ipakita sa inyo ang pagkamuhi na nararamdaman namin sa inyo. Di maarok ng Inggles ang lalim ng poot na nararamdaman namin sa inyo.

Isinusuka na kayo ng taumbayan, mahirap man sumuka ang gutom.

May araw din kayo.

^^ Wow! Tinagalog pa ah! Palaban......... yan ang dapat na asal ng mga Pinoy!

At yung mga naninira sa Pangulo ngayon, ay usto nang kumandidato sa pagkapangulo. Naks naman:ohno:

Ang tapang ni Conrado. It makes sense but overkill.

Pero at least he's got the guts......... like in this quote " To be a critic, you have to have maybe three percent education, five percent intelligence, two percent style and ninety percent gall and egomania in equal parts. " by Judith Crist...........

World recovery has begun — IMF
Business World
http://www.bworldonline.com/BW082009/content.php?id=002

WASHINGTON — The global economic recovery has begun but sustaining it will require refocusing the United States toward exports and Asia toward imports, the International Monetary Fund’s chief economist said.

In an article released by the IMF on Tuesday, Olivier Blanchard also said potential economic output may be lower than it was before the financial crisis struck.

"The turnaround will not be simple," Mr. Blanchard said.

"The crisis has left deep scars, which will affect both supply and demand for many years to come," he added.

US consumption, which accounts for about 70% of the US economy and a large chunk of global demand, would not quickly return to pre-crisis strength as households cope with trillions of dollars in losses from the falling housing and stock markets.

He said the financial crisis had made Americans more conscious of "tail risks" — events that are unlikely to occur but when they do have devastating consequences.

That means US consumers are unlikely to return to their free-spending ways, and both the United States and its trading partners will have to adjust. Emerging Asian countries, especially China, must play a big role.

"From the point of view of the United States, a decrease in China’s current account surplus would help increase demand and sustain the US recovery," he said. "That would result in more US imports which would help sustain world recovery."

But in order for China to boost domestic demand, it will need to provide a stronger social safety net and increase household access to credit, which will encourage its consumers to save less and spend more.

"Both higher Chinese import demand and a higher (yuan) will increase US net exports," he said.

In the short term, Mr. Blanchard said most countries will see positive economic growth for the next few quarters, although probably too tepid to reduce unemployment, which is not expected to crest until some time next year.

Much of that growth is predicated on fiscal stimulus and inventory rebuilding, both of which will have to come to an end, and the stimulus comes at a cost to future growth.

"In nearly all countries, the costs of the crisis have added to the fiscal burden, and higher taxation is inevitable," Mr. Blanchard said.

"All this means that we may not go back to the old growth path, that potential output may be lower than it was before the crisis," he added.

If the rebalancing toward more US exports and more Asian imports fails, the future looks far more grim.

In that case, a weak US recovery would likely lead to intense political pressure to extend fiscal stimulus until private demand recovers.

If officials resist that pressure, the US recovery would be very slow, he said. If they bow to the pressure, high fiscal deficits may persist, leading to doubts about debt sustainability, US government bonds, and the dollar.

Under that darker scenario, the dollar may depreciate "in a disorderly fashion, leading to another episode of instability and high uncertainty, which could itself derail the recovery," Mr. Blanchard warned.


________________________


Asian economies outpacing US; Europe on growth track
Business World
http://www.bworldonline.com/BW082009/content.php?id=003

SINGAPORE — Asia is outpacing the United States and Europe in the rebound from the global economic slump, thanks to multibillion-dollar stimulus packages and robust demand from China, analysts said.

Second-quarter indicators showed the region’s recession-hit economies such as Singapore and Hong Kong have returned to the growth path despite sluggish demand from the US and European markets, their main export destinations.

Countries with bigger domestic populations, including China, India, Indonesia, South Korea, the Philippines and Vietnam, have been growing during the global downturn although the pace has slowed.

Japan, the world’s second largest economy, lumbered out of recession in the second quarter and Prime Minister Taro Aso credited the government’s stimulus package for the achievement.

In contrast, US gross domestic product was estimated to have shrunk 1.0% in the second quarter, and the eurozone economy dipped a milder than expected 0.1% after Germany and France emerged from recession.

US-based credit ratings firm Standard and Poor’s said that five of the 14 Asia-Pacific economies it covers will post positive growth this year, with nine expected to report contractions.

But by next year, all 14 should post year-on-year growth, led by China’s projected expansion of 8.0-8.5%.

The US economy is forecast to contract by 2.9% this year and grow 1.5% in 2010, it added.

Asian economies were hammered after a crisis in the US housing market sparked global financial and economic turmoil late last year.

Some analysts said the impact on Asia showed that the region’s fortunes remain largely linked to the West and that there would be no recovery until after the industrialized economies had rebounded.

But the speed and strength of the region’s recovery showed it is not entirely dependent on the US economy.

"The pattern we’re seeing is that while the US remains a very significant contributor to Asian growth, it has become less significant over time," Subir Gokarn, Standard & Poor’s chief economist for the Asia-Pacific, said at a recent media briefing in Singapore.

"The ability of the Asian region to use its domestic policy instruments... and also take advantage of what is a growing regional market is helping it sort of move a little bit ahead of the recovery in the US and Europe."

He stressed that US and European consumers remain important drivers for Asian growth.

But he noted: "Both increasing affluence within the region and increasing integration within the region have helped it to withstand the shock a little more effectively than I think some people were concerned about in the early part of 2009."

Massive stimulus packages rolled out by Asian governments to perk up domestic demand played an important role in helping the region weather the downturn, he said.

The packages totalled more than one trillion US dollars, according to S&P’s tally, led by China’s staggering $585 billion in spending.

"Asian governments came into the crisis with a strong fiscal position and relatively low debt which allowed them to react rapidly and aggressively," Mark Williams, an economist with consultancy Capital Economics, told AFP.

He said Asia’s more export-reliant economies such as Singapore, Malaysia and Hong Kong, were unlikely to return to high-flying growth in the medium term.

Mr. Gokarn said strong demand from China also helped cushion the blows of reduced exports to the West.

"China has become sort of a locomotive in the region. We are seeing significant shifts in export baskets away from the US," he said.

Despite Asia’s rapid growth, the US economy will maintain its global economic dominance, Mr. Williams said.

World recovery has begun — IMF
Business World
http://www.bworldonline.com/BW082009/content.php?id=002

WASHINGTON — The global economic recovery has begun but sustaining it will require refocusing the United States toward exports and Asia toward imports, the International Monetary Fund’s chief economist said.

In an article released by the IMF on Tuesday, Olivier Blanchard also said potential economic output may be lower than it was before the financial crisis struck.

"The turnaround will not be simple," Mr. Blanchard said.

"The crisis has left deep scars, which will affect both supply and demand for many years to come," he added.

US consumption, which accounts for about 70% of the US economy and a large chunk of global demand, would not quickly return to pre-crisis strength as households cope with trillions of dollars in losses from the falling housing and stock markets.

He said the financial crisis had made Americans more conscious of "tail risks" — events that are unlikely to occur but when they do have devastating consequences.

That means US consumers are unlikely to return to their free-spending ways, and both the United States and its trading partners will have to adjust. Emerging Asian countries, especially China, must play a big role.

"From the point of view of the United States, a decrease in China’s current account surplus would help increase demand and sustain the US recovery," he said. "That would result in more US imports which would help sustain world recovery."

But in order for China to boost domestic demand, it will need to provide a stronger social safety net and increase household access to credit, which will encourage its consumers to save less and spend more.

"Both higher Chinese import demand and a higher (yuan) will increase US net exports," he said.

In the short term, Mr. Blanchard said most countries will see positive economic growth for the next few quarters, although probably too tepid to reduce unemployment, which is not expected to crest until some time next year.

Much of that growth is predicated on fiscal stimulus and inventory rebuilding, both of which will have to come to an end, and the stimulus comes at a cost to future growth.

"In nearly all countries, the costs of the crisis have added to the fiscal burden, and higher taxation is inevitable," Mr. Blanchard said.

"All this means that we may not go back to the old growth path, that potential output may be lower than it was before the crisis," he added.

If the rebalancing toward more US exports and more Asian imports fails, the future looks far more grim.

In that case, a weak US recovery would likely lead to intense political pressure to extend fiscal stimulus until private demand recovers.

If officials resist that pressure, the US recovery would be very slow, he said. If they bow to the pressure, high fiscal deficits may persist, leading to doubts about debt sustainability, US government bonds, and the dollar.

Under that darker scenario, the dollar may depreciate "in a disorderly fashion, leading to another episode of instability and high uncertainty, which could itself derail the recovery," Mr. Blanchard warned.


________________________


Asian economies outpacing US; Europe on growth track
Business World
http://www.bworldonline.com/BW082009/content.php?id=003

SINGAPORE — Asia is outpacing the United States and Europe in the rebound from the global economic slump, thanks to multibillion-dollar stimulus packages and robust demand from China, analysts said.

Second-quarter indicators showed the region’s recession-hit economies such as Singapore and Hong Kong have returned to the growth path despite sluggish demand from the US and European markets, their main export destinations.

Countries with bigger domestic populations, including China, India, Indonesia, South Korea, the Philippines and Vietnam, have been growing during the global downturn although the pace has slowed.

Japan, the world’s second largest economy, lumbered out of recession in the second quarter and Prime Minister Taro Aso credited the government’s stimulus package for the achievement.

In contrast, US gross domestic product was estimated to have shrunk 1.0% in the second quarter, and the eurozone economy dipped a milder than expected 0.1% after Germany and France emerged from recession.

US-based credit ratings firm Standard and Poor’s said that five of the 14 Asia-Pacific economies it covers will post positive growth this year, with nine expected to report contractions.

But by next year, all 14 should post year-on-year growth, led by China’s projected expansion of 8.0-8.5%.

The US economy is forecast to contract by 2.9% this year and grow 1.5% in 2010, it added.

Asian economies were hammered after a crisis in the US housing market sparked global financial and economic turmoil late last year.

Some analysts said the impact on Asia showed that the region’s fortunes remain largely linked to the West and that there would be no recovery until after the industrialized economies had rebounded.

But the speed and strength of the region’s recovery showed it is not entirely dependent on the US economy.

"The pattern we’re seeing is that while the US remains a very significant contributor to Asian growth, it has become less significant over time," Subir Gokarn, Standard & Poor’s chief economist for the Asia-Pacific, said at a recent media briefing in Singapore.

"The ability of the Asian region to use its domestic policy instruments... and also take advantage of what is a growing regional market is helping it sort of move a little bit ahead of the recovery in the US and Europe."

He stressed that US and European consumers remain important drivers for Asian growth.

But he noted: "Both increasing affluence within the region and increasing integration within the region have helped it to withstand the shock a little more effectively than I think some people were concerned about in the early part of 2009."

Massive stimulus packages rolled out by Asian governments to perk up domestic demand played an important role in helping the region weather the downturn, he said.

The packages totalled more than one trillion US dollars, according to S&P’s tally, led by China’s staggering $585 billion in spending.

"Asian governments came into the crisis with a strong fiscal position and relatively low debt which allowed them to react rapidly and aggressively," Mark Williams, an economist with consultancy Capital Economics, told AFP.

He said Asia’s more export-reliant economies such as Singapore, Malaysia and Hong Kong, were unlikely to return to high-flying growth in the medium term.

Mr. Gokarn said strong demand from China also helped cushion the blows of reduced exports to the West.

"China has become sort of a locomotive in the region. We are seeing significant shifts in export baskets away from the US," he said.

Despite Asia’s rapid growth, the US economy will maintain its global economic dominance, Mr. Williams said.

Ironic articles centering on fastfood/Mcdo. Ang mura sa iba/mayaman, mahal naman sa iba/masa.


LIKE OBAMA : Arroyo slips into fast-food joint in Makati
By TJ Burgonio
Philippine Daily Inquirer
http://services.inquirer.net/print/print.php?article_id=20090522-206446

MANILA, Philippines—Away from the glare of news cameras, President Gloria Macapagal-Arroyo quietly slipped into a fast-food restaurant at the Makati Central Business District, and ordered a value meal breakfast before chatting with call center agents.

Ms Arroyo motored to the McDonald’s branch at the Paseo Center on Paseo de Roxas Avenue in Makati City and ordered a meal of longganisa (local sausage) before joining a gaggle of call center agents at a table at around 6:30 a.m.

She chatted with more than a dozen call center pioneers from companies like People Support, Convergys, DSM Manila and E-Telecare, according to RTVM (Radio Television Malacañang).

Ms Arroyo’s trip to McDonald’s brought to mind US President Barack Obama’s sortie on May 5 into Ray’s Hell burger joint in Arlington, Virginia, where he ordered a cheddar cheeseburger—without ketchup.

Obama also bought burgers—reportedly costing roughly $7.95 each—for the journalists covering him, and left a $5 tip.

On video

Ms Arroyo’s unexpected sortie into McDonald’s was not open to media but RTVM has a video footage of it.

The value meal of rice and longganisa costs P67. It was not known if Ms Arroyo left any tip.

Ms Arroyo later spoke at the general membership meeting of the Pharmaceutical and Healthcare Association of the Philippines at the Philamlife Tower on Ayala Avenue and Paseo de Roxas.

At McDonald’s, Ms Arroyo, who was accompanied by Anthony Chua, chair of the Commission on Information and Communications Technology (CICT), talked about the government’s plans to boost the BPO (business process outsourcing) industry.

No age limit

According to RTVM, Ms Arroyo told the call center agents that the government had been investing heavily in training individuals to work for the BPO industry, one of the fastest-growing industries in the world.

The trainings are being spearheaded by the Business Processing Association of the Philippines and the Technical Education and Skills Development Authority (TESDA), she said.

“She thanked everyone and noted happily that working in the BPO industry requires no age limit and when you’re employed part-time, you can still continue schooling or get a day job,” RTVM said on its website.

Ms Arroyo took note of the agents’ request that the Metro Rail Transit extend its operations on EDSA (Epifanio delos Santos Avenue) by another two hours until 12 midnight to accommodate them, according to RTVM.


_________________________



Metro Manila workers must toil more to afford a Big Mac
Business World
http://www.bworldonline.com/BW082009/content.php?id=005

METRO MANILA workers have to toil roughly twice longer than the global average to earn enough for a Big Mac, again placing nearly at the bottom of purchasing power rankings in this year’s UBS Prices and Earnings study.

An hour and 18 minutes’ work equals a Big Mac in Metro Manila. The metropolis ranked 71st out of 73 cities in terms of domestic purchasing power or the ratio of wages to local prices, only a notch improved from when it placed second to the last in 2006.

Workers here must put in 88 minutes — seven more than in 2006 and more than double than the 37-minute global average — to be able to afford the fast-food chain’s burger.

The city’s purchasing power index score of 18.7, however, is up 38.5% from the 13.5 recorded in 2006.

The UBS study, conducted every three years, bases the comparison on the average wage of 14 professions and price of a standard basket of 122 goods and services in March 2009.

It is in Zurich where workers get the most bang for their buck, followed by Sydney, Luxemborg, Dublin and Miami.

Manila is better off than last-placer Jakarta but is outranked by the three other Southeast Asian cities on the list: Kuala Lumpur, Singapore, and Bangkok.

The poor ranking came even as the cost of living in the Philippine city was said to be still among the lowest in the world. Prices of goods and services here are third to the cheapest among the 73 countries, bested only by Delhi and Mumbai.

The study mentions specifically that, "nowhere in the world is clothing cheaper than in Kuala Lumpur and Manila".

The price gap among easy-to-transport goods such as food, clothing, and electronics is small across cities, while prices for services fluctuate more.

"Thanks to countless international trade agreements and efforts to eliminate protective tariffs, people and companies can now buy a seemingly limitless variety of products and exploit the relative cost advantages of the global marketplace," the UBS study stated.

"[But the gap in prices of services] persists because virtually no trade exists between countries for many services," it added.

The low prices in Manila are offset by the similarly low wages earned by its workers. Wage levels in the city ranked 71st out of 73, higher than only Jakarta’s and Mumbai’s and again outpaced by the three other Southeast Asian neighbors.

"Zurich and Geneva top the rankings in our international comparison of wages. By contrast, the average employee in Delhi, Manila, Jakarta and Mumbai earns less than one-fifteenth of that amount," the study stated.

Even as the study notes that "what really matters is how many goods and services workers can buy" after taxes, net hourly income in Manila remained third from the bottom of the list.

Sought for comment, University of Asia and the Pacific economist Peter Lee U said in a telephone interview: "To improve purchasing power, it’s more of a question of income really, and the increase in the level of development... since our prices are relatively low."

"Income is tied up to people’s productivity so investing in people I guess, in education, will mean higher-paying jobs."

Mr. U noted, however, that the ranking does not mean Metro Manila is among the poorest in the world.

"I’m sure there are other poorer cities not included," he said.

Sus ko po baluktot na pag-iisip talaga! OK lang daw maski malaki ang gastos nila GMA sa mga biyahe niya kasi mas malaki naman daw ang nakukuha niyang kapalit para sa bansa. Tanong kay GMA: Hindi ba pwedeng liitan ang gastos niyo sa mga biyahe maski na malaki ang nakukuha niyo para sa bansa para mas maganda pa lalo ito at more "bang for the buck" di ba? :bash: :bash: :bash:

Palace justifies foreign sorties
Business World
http://www.bworldonline.com/BW082009/content.php?id=077

AMID ALLEGATIONS of overspending for President Gloria Macapagal-Arroyo’s foreign trips, Malacañang yesterday said benefits from such visits outweighed the costs, with the country generating $6.2 billion from the recent United States trip alone.

Press Secretary Cerge M. Remonde said Mrs. Arroyo’s global engagements helped the country deal with the global financial crisis.

"If not for her aggressive foreign engagements, our economy could have been worse. We escaped recession and to a certain extent, this was a result of the President’s aggressive initiatives abroad," he told reporters.

The Palace, however, did not disclose that much of the legwork for such visits has been done by deputies who have finalized the agreements whose signing would only be witnessed by the President.

Malacañang data showed the foreign trips in 2007 generated $873 million in investments, trade and assistance, with the Middle East accounting for $579.8 million and the European Union with $185.4 million. In 2008, the visits raked in $399.9 million, bulk of which came from the United Arab Emirates with $375.4 million.

From the recent seven-day US visit, Mr. Remonde noted the $1-billion pledge by the Coca-Cola Co. to expand its local operations. Others include $136 million in security and development aid; a $350-million grant from the Millennium Challenge Corp. and $198 million from the Filipino veterans’ equity fund.

Since 1999, the Philippines has received $429 million in military assistance from the US. From 2001 to 2008, the country also benefited from $312 million in assistance to Mindanao from the US Agency for International Development.

"Any of these numbers are well in excess of the P2.5 billion or about $15 million that has been spent on both local and foreign travel by the President since 2001," Mr. Remonde said. Malacañang on Tuesday said it spent P2.5 billion for Mrs. Arroyo’s local and foreign trips in 2001 to Aug. 14, 2009 against a budget of only P1.4 billion.


__________________________


Palace outlines benefits of Arroyo’s trips
By Christian V. Esguerra
Philippine Daily Inquirer
http://newsinfo.inquirer.net/breakingnews/nation/view/20090820-221143/Palace-outlines-benefits-of-Arroyos-trips

MANILA, Philippines—Malacañang wants the public—especially critics—to show their gratitude instead of hitting President Gloria Macapagal-Arroyo for the multimillion-dollar foreign trips she took since she was installed in office in 2001.

For the second day in a row, Press Secretary Cerge Remonde spent much of the Palace’s regular media briefing Wednesday outlining the “benefits” of Ms Arroyo’s recent visit to the United States.

On Tuesday, Remonde said he would no longer entertain questions about the presidential delegation’s allegedly ostentatious dinners in Washington DC and New York, costing around P1.7 million.

“Let’s face it—there are people who, whatever the administration says, won’t really listen because of their respective political agenda,” he said. “The fact that we have escaped recession when most of the world didn’t, to a certain extent, that’s a result of the diligence and perseverance of our President.”

From 2001 to Aug. 14 this year, the Office of the President exceeded its P1.43-billion allocation for local and foreign travels, spending a total of P2.5 billion.

Malacañang Wednesday released a “spreadsheet” showing the “gains” from Ms Arroyo’s trips to the US, United Arab Emirates, China, South Korea, Japan, Australia, New Zealand, Thailand, Russia and parts of Europe and the Middle East.

In the US trip alone, it said the government got $6.2 billion in investments and other forms of financial assistance. Curiously, the list included $429 million worth of military assistance starting from the Estrada administration in 1999 until this year, and aid to Mindanao amounting to $312 million from 2001 to 2008.

In visits to parts of Asia and the Middle East in 2007, the Palace said the country got $873.4 million worth of “sales, investments, and grants.” A similar trip in 2008 generated $399.9 million.

Meanwhile, Senate President Juan Ponce-Enrile Wednesday defended Ms Arroyo’s foreign trips, saying no one could “shackle” the President when it comes to implementing foreign policy.

GMA runs up P4.2T debt in 8 years
Malaya
http://www.malaya.com.ph/aug20/news7.htm

PRESIDENT Arroyo has racked up debts of P4.2 trillion in the eight years she has been in office which makes for a yearly borrowing average of P525 billion for Arroyo.

In contrast, Aquino borrowed P469 billion over six years for an average of P78 billion while Ramos borrowed P387 over six years for an average of P64 billion.

Estrada borrowed P654 billion during his two and a half years in office, for a yearly average of P261 billion.

Finance Secretary Margarito Teves, in a press briefing yesterday, downplayed Arroyo's borrowing spree, saying the "effective" debt generated during her term stands at P1.5 trillion.

Teves said of the P4.2 trillion, P2.7 trillion went to payment of maturing principals of debts obtained by previous administrations, P1.2 trillion went to service interest payments, and P33 billion went to cash build-up.

"So, only P1.5 trillion can be attributed to the present administration," he said.

He did not provide a similar breakdown of the application of the borrowings of Aquino, Ramos and Estrada.

Teves added that it was during the term of Arroyo that the debt-to-gross domestic product ratio improved from a high of 78.2 percent in 2004 to 56.8 percent in 2008.

In 2001, when the Arroyo took power from Estrada, the debt-to-GDP ratio was 65.7 percent.

Looming Fiscal Crisis

Sought for comment, University of the Philippines economist Benjamin E. Diokno said the government’s huge debt will weigh on the next administration.

"She [President Gloria M. Arroyo] was not able to fix the fiscal house. There is a huge deficit and you have to service that," he said in a phone interview.

"The next president will be facing a looming fiscal crisis."



_____________________________


Peso falls to 48.50:$1 on fiscal concerns;
Asian stocks dumped in selloff
BUsiness Mirror
Written by Erik de la Cruz / Reporter
Wednesday, 19 August 2009
http://www.businessmirror.com.ph/home/banking-a-finance/14818-peso-falls-to-48501-on-fiscal-concerns-asian-stocks-dumped-in-selloff.html

THE peso came under strong pressure on Wednesday, hitting a two-month low against the US dollar, after Manila announced a further widening of its budget deficit and investors dumped Asian stocks in a selloff that highlighted a renewed bout of risk aversion, analysts said.

The local unit closed at the day’s low of 48.50 per dollar, resuming its downtrend as worries resurfaced about the Philippine government’s ability to keep its budget gap within the P250-billion target.

It dropped 0.5 percent from Tuesday’s close of 48.255, with turnover on the Philippine Dealing System’s electronic exchange rising to $696.94 million from the previous session’s $683.64 million.

Figures released on Wednesday showed the January to July budget deficit swelled to P188 billion, representing 77 percent of the full-year ceiling.

“The peso weakened due to regional risk aversion worsened by the larger-than-expected budget deficit,” said Rafael Algarra, treasurer at Security Bank Corp.

Investors were spooked by news that Shanghai’s key stock index had fallen by as much as 5 percent during afternoon trading on Wednesday on concerns valuations had already exceeded growth expectations for the world’s third-largest economy.

The big drop followed heavy selling in Chinese stocks on Monday, which also saw a global selloff that mirrored investor nervousness about the weak sentiment of American consumers.

Investors were worried about the weak consumer spending in the US, Asia’s key export market, and its impact on recovery prospects for the world economy.

Jonathan Ravelas, chief market strategist at Banco de Oro Unibank, said volatility was expected to continue in the foreign-exchange market.

“A break above the 48.70 levels is needed to bring the dollar ‘bulls’ to play to test the 49 levels,” he said.

Ravelas expected the peso to trade between 48.40 and 48.80 on Thursday.

Some analysts said the Bangko Sentral ng Pilipinas may not be aggressively trying to defend the peso amid the slowing remittances of Filipinos abroad. The central bank should allow the peso to depreciate to encourage Filipinos to send home more money, economist Bernardo Villegas recently said.

Economist Lim Su Sian of DBS Bank in Singapore, meanwhile, said: “While the government has already revised the budget-deficit forecast for the full year several times to a record P250 billion, we think there is a good chance that the actual outcome will turn out a lot worse than the official projection.”

Indicators positive now

Written by Cai A. Ordinario / Reporter
Wednesday, 19 August 2009 22:31
Business Mirror

THE Philippines has shown “modest signs of recovery” at the end of the first quarter this year from the global financial crisis.

This was reported by the National Statistical Coordination Board (NSCB), based on the conclusions of the Task Force on Flash Indicators to Measure the Impact of the Global Crisis in the Philippines (TFFI) from 81 flash indicators.

The task force is chaired by Dennis Arroyo, director of the National Planning and Policy Staff at the National Economic and Development Authority (Neda).

“The impact of the global financial crisis was felt in the Philippines starting October 2008 as exports decreased, manufacturing dropped, the stock index declined, and car sales weakened. However, statistics point to modest signs of recovery by the end of the 1st quarter of 2009.”

The indicators singled out by the NSCB included those in manufacturing like the value and volume of production index and capacity utilization rate that started to improve by February 2009.

The Volume of Production Index (VoPI) or the manufacturing output had contracted by 13 percent based on the May 2009 round of the Monthly Integrated Survey of Selected Industries (Missi), but the VoPI in May still showed some improvement from the 18.2-percent contraction in April.

The same goes for the Value of Production Index (VaPI) that diminished by 13.1 percent in May, also an improvement from the reduction of April of 17 percent.

Total exports, added the NSCB, exhibited a similar trend as well as exports of electronic products and agricultural products. This was true also in the total imports of raw materials and capital goods.

Total exports in June were slightly larger at $3.41 billion from the $3.09 billion in May. Fresh and processed agricultural-product exports of $175.1 million in May slightly dipped in June’s $117.6 million, while electronic products exports of $1.95 billion in June were up from $1.81 billion in May.

“Other indicators which showed improved performances were the composite stock index, stock-market capitalization and volume of cars sold,” the NSCB said. “The levels and movements of these indicators can serve as early warning signals of economic crisis or recovery when the indicators start to shift significantly from their ‘normal’ levels.”

The indicators are grouped into eight: prices, production, employment, sales, external sector, national government cash operations, money and banking, and tourism.

“These indicators are intended to serve as basis in the measurement of the impact of the global financial crisis in the Philippines and are likewise useful as inputs for economic analysis, target-setting and policy/legislative actions, and research/ studies on the impact/effect of the financial crisis to the poor,” the NSCB said.

Economy begins recovery (http://www.manilastandardtoday.com/insideBusiness.htm?f=2009/august/19/business1.isx&d=2009/august/19)
Manila Standard (http://www.manilastandardtoday.com/insideBusiness.htm?f=2009/august/19/business1.isx&d=2009/august/19)
by Roderick T. dela Cruz

Latest flash indicators point to a modest Philippine economic recovery from the global financial crisis that started in October last year, the National Statistical Coordination Board said yesterday.

“The impact of the global financial crisis was felt in the Philippines starting October 2008 as exports decreased, manufacturing dropped, stock index declined and car sales weakened. However, statistics point to modest signs of recovery by the end of the first quarter of 2009,” NSCB secretary-general Romulo Virola said yesterday.

The NSCB released the indicators ahead of the announcement of the second quarter gross domestic product growth scheduled in the last week of August. GDP growth slowed to 0.4 percent in the first quarter of 2009 from 3.9 percent a year ago.

Economic Planning Secretary Ralph Recto earlier said second quarter growth was expected to be better than the 0.4-percent expansion in the first quarter due to the slowing inflation rate and improving exports growth data.

The statistical agency also confirmed that while indicators on manufacturing such as the value and volume of production index and capacity utilization rate showed declining trend from October 2008, they began to reflect improvement by February this year.

“Total exports as well as exports of electronic products and agricultural products exhibited similar trend. The same can be said for total imports and imports of raw materials and capital goods. Other indicators which showed similar trend are composite stock index, stock market capitalization, and volume of cars sold,” it said.

Data showed that Philippine exports hit a seven-month high of $3.4 billion in June 2009. While shipments were down 24.7 percent from a year ago, the drop was significantly slower than the steep 40.6-percent contraction recorded in January.

Inflation rate, or the rate at which consumer prices are rising, hit a 22-year-low of 0.2 percent in July.

Sales of motor vehicles in the Philippines reached 11,597 units in July, the highest monthly figure in 2009.

At the local stock market, the PSEi, the 30-company benchmark index of the Philippine Stock Exchange, breached 2,850 points in the second week of August, its highest level in more than a year.

These data are among the 81 flash indicators identified by the NSCB Task Force on Flash Indicators to measure the impact of the global crisis on the Philippines. The body is headed by Dennis Arroyo, director of the National Planning and Policy Staff of Neda.

^^ Very good news :cheers:

Add more trade partners, RP urged

By Michelle Remo
Philippine Daily Inquirer
First Posted 23:19:00 08/19/2009


MANILA, Philippines – The Bangko Sentral ng Pilipinas said that the global crisis, driven by recession in the United States and Europe, has signaled a shift in the world’s economic power from the West to giant economies elsewhere.

Given this backdrop, the BSP said the Philippines must expand its export markets and attract more foreign investments from economies that have shown resilience throughout the turmoil.

China, for instance, has managed to post robust growth despite the world economic downturn. China’s gross domestic product rose by 7.9 percent in the second quarter. Its foreign currency reserves have also risen continually, already moving way past the $2-trillion mark.

China’s rising resources prompted suggestions for Asian countries like the Philippines to do more business with the giant economy.

Similarly, India also managed to post decent growth rate despite the turmoil. India’s GDP grew by 5.8 percent in the first quarter.

“The shift in the balance of economic power is probably one of the legacies of this crisis. As such, it would be prudent for the country to explore new markets, both in trade and for capital, that this shift would present,” BSP Governor Amando Tetangco Jr. said.

Earlier, the Asian Development Bank said the Philippines and other Asian countries should increase intra-regional trade. ADB said heavy reliance on the US and Europe for export markets made Asian countries feel the spillover effects of the global turmoil.

ADB added that Asia has shown strength amid the crisis with their economies avoiding serious contractions suffered by industrialized nations in the West. However, ADB said Asia could have suffered less from the turmoil if they were less export-dependent on US and European markets.

Echoing this, Tetangco said exporters must increase trade with giant economies that have shown resiliency amid the crisis. The government should also provide more incentives to the export sector to make them more competitive.

The central banks also suggested that the government help attract more foreign investments from strong economies, besides those of the US and Europe.

^^^^ Good new indeed............. hope the Philippines would skyrocket it's growth in the 3rd quarter............

Originally Posted by RonnieR View Post
LIKE OBAMA : Arroyo slips into fast-food joint in Makati
By TJ Burgonio
Philippine Daily Inquirer
http://services.inquirer.net/print/p...0090522-206446

MANILA, Philippines—Away from the glare of news cameras, President Gloria Macapagal-Arroyo quietly slipped into a fast-food restaurant at the Makati Central Business District, and ordered a value meal breakfast before chatting with call center agents.

Pakitang tao? :lol:

^^:lol: hindi pa nilubos ang pagiging patronizer:D sana sa Jollijeep este Jollibee na lang sana;)

We should tap our co-developing countries like Bangladesh, Vietnam, Cambodia, Africa and South American countries. They have higher growth potentials than those of already developed.

Only 7 of RP’s top 30 exports grew–Philexport (http://business.inquirer.net/money/breakingnews/view/20090819-221048/Only-7-of-RPs-top-30-exports-grewPhilexport)
By Judy Quiros

But glimmer of recovery by last quarter seen

DAVAO CITY – Only seven of the country's top 30 export products, including food, have shown positive growth as of May as the export sector suffered its ninth month of retreat since being affected by the global recession last October, Sergio Ortiz-Luis, Jr., president of the Philippine Exporters Confederation, Inc. (Philexport), said.

Ortiz-Luis told reporters here that one of the products that survived the global crunch was General Santos City's tuna, which posted a growth of 13.2 percent to $143.6 million as of May.

Pineapple – both fresh and processed – grew by 3.55 percent to $103.7 million as of the same period, he said.

Other food products that managed to stay on the positive side include desiccated coconut, with export earnings of $54.1 billion.

Ortiz-Luis said industrial products such as fertilizer and fine jewelry joined the dwindling group of the battered export sector.

He said testimonies of exporters revealed that orders have gone down to trickles during the first half of the year.

He said that based on the forecast of the Export Development Council, the export sector's revenue would retreat by 16 percent throughout 2009 or the equivalent of $8 billion less than 2008's $49 billion.

But Ortiz-Luis said the export sector continued to hope, especially with reports from a few exporters that they were beginning to recover lost grounds with new orders coming back.

He said this could be attributed to the perking up of consumer spending in the United States.

This development could also mean "the worst is over," he said.
Ortiz-Luis said most experts were expecting the export sector to recover during the last quarter of the 2009.

We should tap our co-developing countries like Bangladesh, Vietnam, Cambodia, Africa and South American countries. They have higher growth potentials than those of already developed.

Agree!

is the data of our economy for Q2 available already?

guys those who have Philhealth, read this...

Philhealth on the brink
Bankruptcy in 7 years unless DBM pays
By HANNAH L. TORREGOZA
August 19, 2009, 5:22pm

The Philippine Health Insurance Corp. is in danger of going bankrupt in the next seven years unless the government pays the P19.2 billion arrears it owes the agency.

Sen. Loren Legarda made this assessment Wednesday after a hearing on the measure calling for mandatory universal health care coverage pending at the Senate committee on health and demography.

Legarda, who chairs the committee, said Philhealth officials themselves disclosed that the country’s health care institution is in danger of insolvency because of unpaid debts by the Department of Budget and Management to the company since 2001.

Philhealth Vice President and Deputy Chief Actuary Nerissa Santiago pointed out to the committee that the multi-billion debt of the government could affect its delivery of services to some 17 million current Philhealth members by 2016.

Legarda slammed the DBM for failing to pay its obligations of nearly P20 billion. Officials of the DBM were a no-show during the hearing.

“Papaano na iyong 17 million Filipinos na umaasa sa Philhealth para sa kanilang pangangailangan sa kalusugan? Kaya dapat talaga tingnan ng husto ang operations ng Philhealth at bayaran ng national government sa pamamagitan ng DBM ang utang na halos P20 billion sa Philhealth mula 2001,” Legarda said after the hearing.

Santiago said that based on their study, the life fund of Philhealth could shrink in the next seven to ten years if the DBM debt remains unresolved.

“Regarding the resource and the life of the fund, based on our study as of 2008…without increasing the contribution rate…and considering the projections based on what we perceived would be the membership for the next 10 years or so, the life of the fund is only until 2016,” Santiago told the committee.

During the hearing, it was also learned that some politicians are using Philhealth cards to advance their electoral plans but the cards themselves are already expired.

Legarda vowed to look into the matter, saying that while there is nothing wrong for politicians to allot their countrywide development funds (CDF) or “pork barrel” to Philhealth premiums, it must not be used for politicking.

“I want to know what comprises the P19.2 billion that could cause the bankruptcy of PhilHealth,” Legarda said.

“I also want to know who were those who got an ‘overnight’ concern with Philhealth at meron mga litrato sa mga PhilHealth cards, tapos expired palang ipinamimigay,” she stressed.

^^out of 90 million pinoys, 17 milyon lang ang member ng Philhealth?

Mumbai & Delhi among world's cheapest cities
By: Agencies Date: 2009-08-20 Place: London
http://www.mid-day.com/news/2009/aug/200809-Big-Mac-burger-iPod-Kuala-Lumpur-Manila.htm

Going by the time it takes to earn a burger and an iPod in 73 cities

Mumbai and New Delhi are among the cheapest cities in the world, according to research by UBS, the investment bank. The other cheapest cities are Kuala Lumpur and Manila.

Someone earning the average wage in Zurich and New York can buy an iPod Nano after nine hours of work, while workers in Mumbai, need to work 20 nine-hour days, or about a month, to purchase the same player.

Oslo is now the world's most expensive city, according to the study, followed by Zurich, Copenhagen, Geneva, Tokyo and New York, according to the figures, which are based on a basket of 144 goods and services.

Pet Ka Sawaal: The survey was based on the hours people in each of the cities have to work to earn a Big Mac burger and buy an iPod.
It takes a Sydneysider on an average wage 14 minutes of work time to afford a Big Mac burger, compared with a global average of 22.

In Nairobi, due mainly to lower wages, a worker must labour for nearly 2 ½ hours for the same burger.

The concept of purchasing power the quantity of goods and services you can buy with the average wage used in the survey is in some ways a more meaningful measure of cost pressures, relating it to the spending power people have.

The survey translated prices into US dollars to compare the outright cost of goods across countries.

Suit mera dekho

While complicated by fluctuating exchange rates, Kuala Lumpur and Manila emerge as the cheapest cities in the world to buy clothes.

A two-piece suit and shoes will cost $120 (Rs 5,850) for women and about $200 (Rs 9,750) for men.

In food prices, the same basket of 39 groceries costs an average of $385 (Rs 18,760) globally.

UBS's head of wealth management research in Japan, Brian Rose, said humans had a natural tendency to focus on increasing costs.

"I think it's one of those things where the grass is always greener somewhere else,'' he said.

"It seems like some place may be cheap, things cost less, but then actually if you look at how much people make there, it is not so great."

is the data of our economy for Q2 available already?

I've found this

Philippine economy expected to grow 0.9% in Q2
www.chinaview.cn 2009-08-20 10:27:34 Print

MANILA, Aug. 20 (Xinhua) -- The Philippine economy is forecasted to have expanded 0.9 percent in maximum in the second quarter of this year as consumption remains weak, the government socio-economic planning agency said Thursday.

The National Economic and Development Authority (NEDA) said that the economy could still have fallen into recession in the worst case scenario as its forecasted for the gross domestic product (GDP) growth is placed at -o.1 to 0.9 percent from April to June.

NEDA policy planning director Dennis Arroyo said that despite the steady inflow of remittances from overseas Filipino workers, a survey done by the Philippine central bank revealed that consumer sentiment remains weak.

The global recession is discouraging consumers from spending, he said.

The NEDA predicted that the industry sector - on back of weaker manufacturing and exports - contracted by 1.3 to 2.9 percent in the second quarter of this year. The agriculture, forestry and fisheries sector is seen to have grown 0.4 to 1.4 percent, driven by the expansion in the commercial fisheries and aquaculture industries.

The services sector is expected to have grown by 1.7 to 2.2 percent, Arroyo said, describing the sector as "the main source of growth for the economy."

The consumption-driven Philippine economy expanded 0.4 percent in the first quarter, the slowest pace in a decade and far below the official forecast. But as loss in trade incomes narrows and Asia showed signs of recovery, the Philippines expected the economy to improve in the second quarter.

The official growth rate will be announced by the government next week.

Despite the expected contraction in the second quarter, Arroyo said "there's only one in ten chance of a recession in the Philippines."

"The worse is behind us," he said, adding that that the global recession is seen bottoming out.

NEDA's Thursday forecasted, however, cast doubts on Philippine economic managers' expectation of a decent recovery soon.

Chinese Stimulus Superiority or Just Another Bubble?:nuts:

Posted by Larry Doyle on July 27th, 2009 8:48 am

Is China leading the global economy out of the severe economic recession or is it setting the table for another leg down by creating another bubble? Is the United States economy beholden to developments in the People’s Republic of China? Let’s look eastward and navigate the Chinese economic landscape.

Recall that China has recently become our largest creditor. Additionally, China’s economic stimulus enacted and largely disbursed is already three to four times the size of the United States stimulus as a percentage of GDP. (U.S. stimulus of $700 billion is approximately 5% of GDP. China’s stimulus of approximately $600 billion is the equivalent of 20% of their overall GDP of $3 trillion) From China’s perspective, it is nice to have an enormous surplus and a government controlled economy.

Let’s review some of the inner workings within the Chinese stimulus and the current view of the Chinese economy and markets. From Stratfor Global Intelligence, we learn:

1. fully one fourth of the Chinese stimulus is targeted at helping the province of Sichuan recover from a massive earthquake in May 2008.

2. the bulk of the Chinese stimulus is focused on infrastructure with little assistance for faltering export based industries.

3. loan growth has exploded in the first half of the year. This has to be a positive, correct? Stratfor is very concerned and writes:

China is more concerned about maintaining employment than about ensuring that money is used efficiently. And the result of such a sudden surge in loan-granting will inevitably be a mounting of nonperforming loans that will eat at the very heart of the Chinese financial system (a similar problem is what brought down Japan in 1991).

And that is the good news. Much of this loan surge — by some reports, perhaps as much as half — is being lost to scams, corruption and simply using the money to play the various Chinese stock markets. The Shanghai Composite Index, for example, is up 50 percent since its lows in November 2008 — an otherwise inexplicable development considering the steady stream of bad economic news that has trickled out of Beijing in recent months.

As I think of this analysis, I immediately wonder if China is creating a semblance of a bubble in their economy and in their stock market. Arjun Divecha, portfolio manager of Berkeley, CA based GMO, holds similar concerns. In an interview published in Barron’s this weekend, Divecha was aksed about his concerns in China and specifically Chinese lending. He asserts:

“I believe a lot of the money is not going into productive investment. What we are hearing anecdotally is that a lot is being lent by the banks, which remember, are government-owned. Who are they lending to? For the most part, this money is going to state-owned enterprises, which are not particularly efficient companies.

We know they are buying real estate, and they are doing all kinds of things we don’t think in the long run is particularly productive investment.

Barron’s asks Divecha what will be the consequences in China of this stimulus plan? He responds:

“Two things are likely to happen. First, longer term, if the banks don’t have a problem with bad loans now, they will almost certainly have a lot more bad loans two or three years from now. Second, from a short term point of view, at some point the government is going to get really worried about having too much credit-creation; that leads to a credit bubble, just like you had in this country and everywhere else. As a result, they will start to withdraw liquidity by tightening the gates on the money. I don’t know when that will be. But I worry that it is coming.

A fair amount of the stimulus money has found its way into the real estate and stock markets because China has a closed economy. So there is no way for money to leave the country. The stock market and real estate have had huge spikes. So when that liquidity is withdrawn, it seems inevitable that the stock market will take it badly.

Is the United States likely to suffer a similar consequence? I am very concerned.

For further analysis of China and all the emerging markets, please review my interview last evening with Dr. Paulo Vieira da Cunha on No Quarter Radio’s Sense on Cents with Larry Doyle. Dr. Vieira da Cunha is a former Brazilian central banker and currently works at Tandem Global Partners in New York. He is also a visiting scholar at Columbia and serves as a consultant to the International Monetary Fund. He provided riveting insights and perspectives not commonly found in financial periodicals or the financial media.

Andrew Tan group to invest P36 billion in Pasay's Newport City
By Mary Ann Ll. Reyes (The Philippine Star) Updated August 20, 2009 12:00 AM
http://www.philstar.com/Article.aspx?articleId=497408&publicationSubCategoryId=66

MANILA, Philippines - A group of local and foreign investors, led by Alliance Global Inc. of tycoon Andrew Tan, is investing around $740 million (P36 billion) until 2012 to transform the old Philippine Air Force barracks near Villamor Air Base in Pasay City into a world-class integrated tourism development, the first of its kind in Southeast Asia.

The 25-hectare Newport City will feature not only residential condominiums which are mostly sold out, but will also play host to the $600-million Resorts World Manila that will occupy around 7.8 hectares.

“With Resorts World Manila, we are aiming to transform the Philippines into Asia’s next tourism powerhouse,” Travellers International Hotel Group president Kingson Sian told The STAR.

Behind Resorts World Manila is Travellers, which is 50 percent owned by Alliance Global, 40 percent by Star Cruises, and 10 percent by Megaworld. The latter chose to own 10 percent of Travellers in exchange for the land which Resorts World Manila will occupy.

Alliance Global is the parent company of Megaworld, Golden Arches (McDonalds) and Travellers International.

Star Cruises, meanwhile, is the third largest cruise line operator in the world and is part of Genting Berhad Group, one of Malaysia’s largest conglomerates and a global gaming company. Genting owns the Genting Highlands Resort-Casino in Kuala Lumpur and is building Resorts World at Sentosa which will have the world’s largest oceanarium and a Universal Studio theme park.

Following the Philippine government’s decision to deregulate the gaming industry last year, Travellers International was awarded the first private gaming license to develop, own and manage casinos, with the Philippine Amusement and Gaming Corp. (Pagcor) as regulator. Its first casino will be located at the Resorts World Manila while the second one will be at the Pagcor City at the Reclamation Area. The first floor of the three-floor casino will be opened to the public on Aug. 28.

Sian, who is also a director of Megaworld, said all the aspects of Resorts World Manila will be available by yearend or early next year at the latest, except for the budget hotel.

Resorts World Manila will have three hotels. The first one will be the six-star 172 all-suites Maxims Hotel and Gaming Center while the second will be the 342-rooms five-star Marriott Hotel. The third will be the 1,000-room budget hotel Remington.

Aside from the three hotels, Resorts World will feature the Newport Mall which will have four high-end cinemas, four-levels of luxury brand stores, and will have a glass roofing similar to the MGM Hotels and Casinos. The Newport Theater, meanwhile, will offer world-class entertainment for the performing arts.

Sian said aside from the “live and play” aspects of Newport City, there is also the work component, highlighted by the operations of Star Cruises which have been moved from Malaysia to here. “They retrenched 500 Malaysians and moved their world operations headquarters here. From here, they can have surveillance satellites that can see all their ships anywhere in the world,” he pointed out.

He also stressed that Genting and Star Cruises are the perfect partners for this integrated tourism development, which will bring in not only a total of $740 million in investments on a once-idle government property, but also 10,000 in new employment and the potential to bring in 11 million tourists.

“This is a game changer and will put the Philippines on the global tourism map. Being in front of NAIA Terminal 3 and very near the other airport terminals, Newport City will serve as the jump-off point for other tourism destinations in the country like Boracay and Bohol. The global sales networks of both Genting and Star Cruises can help us attract more tourists into the country, And they are very familiar with junket operations,” he said. The casinos will be run by Genting Management Services.

He said the Philippines has the perfect location to be the region’s next tourism powerhouse, with a two billion market potential within a four-hour flight radius to Manila. “The country just needed the right product,” Sian emphasized.

He said the Philippines reported an all-time high of 3.14 million tourist arrivals last year and the figure is expected to grow five percent annualy from 2009-2010. “We see this as an opportunity because we are coming from a low base. The problem was that we didn’t have the right product that will attract international tourists to come,” Sian explained.

Alliance Global chairman Andrew Tan earlier said their group is investing around $1.55 billion over the next five years for its tourism programs, including building 5,000 rooms.

Sian explained that aside from the 1,500 rooms of the three hotels at Resorts World at Manila, Travellers International will build another 3,000 to 4,000 rooms at Pagcor City once they develop another tourism type of development, including a casino and hotels, there. “While here at Resorts World, we only have around eight hectares, at the Pagcor City, we will have 40 hectares,” he stressed.

As for the casino that will occupy the first three floors of Maxims Hotel, Sian said the casino will occupy a total of 30,000 square meters and will have 300 table and 1,000 slot machines.

“We expect around 10,000 people to play here every day and that around 65 percent of our guests will be local and the rest, foreign. We are investing money to expand the market and attract tourists. We do not want to just take away customers from the Pagcor casinos. While there may be high rollers who will move to our casinos, we expect the bulk of our market to be local tourists who have never entered casinos and who want to play on weekends while their family is engaged in some other activity here at Newport City.”

This is what's scary about China, a $3 Trillion economy with a $540B NPL's in their books contrast this with the very low NPL ratio of our financial sector. And if we are to believe the experts all these stimulus money that China is flooding their economy is bound to increase this figure even more. :badnews:

China's Nonperforming Loans: A $540 Billion Problem Unsolved

Tong Li
Milken Institute

October 3, 2008

Abstract:

China's banking industry has grown rapidly over the past three decades. As the major source of funding for Chinese enterprises (especially state-owned enterprises), the banking sector has helped finance the nation's transformation from a centrally planned economy to a market-oriented economy. In the meantime, large amounts of nonperforming loans have accumulated on the balance sheets of Chinese banks, partly due to the cost of reform, partly due to poor management and inadequate regulation. In 1999, four asset management corporations were established to resolve the nonperforming loan problem. As stated in their charters, these asset management corporations would cease operation by the end of 2009. It is therefore of interest to examine the progress they have made in disposing of nonperforming loans. In this paper, the author attempts to draw a picture of how the nonperforming loan problem has developed since mid-1990s, provide an estimate of the total nonperforming loans held by Chinese financial institutions, and assess to what extent these bad assets might pose a threat to the country's financial stability.

If you guys want to read all the details, here's the full document that you can download in pdf format;

http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1336226_code478764.pdf?abstractid=1278235&mirid=5

I hope the projection regarding the GDP growth for the 2nd quarter is more than 1%. This will officially confirm that we are out of recession already.

^^out of 90 million pinoys, 17 milyon lang ang member ng Philhealth?

And a significant number out of that 17million are ofw's since it's a requirement for all ofw before going out of the country to register with owwa and philhealth.

I'm wondering also where does majority of the OWWA funds goes? If ever there was some news item i've read regarding the usage of this fund like those retrenched ofw loans, the amount released/used seems so miniscule compared to the total collected which runs into hundreds of millions.

And a significant number out of that 17million are ofw's since it's a requirement for all ofw before going out of the country to register with owwa and philhealth.

I'm wondering also where does majority of the OWWA funds goes? If ever there was some news item i've read regarding the usage of this fund like those retrenched ofw loans, the amount released/used seems so miniscule compared to the total collected which runs into hundreds of millions.

That number actually for me is big but not enough of course.

Perhaps, the 17 million does not include the beneficiaries...

That number actually for me is big but not enough of course.

Perhaps, the 17 million does not include the beneficiaries...

tara, pustahan tayo... sandali, wala pang konek.

Hindi pala ako dapat nagquote agad tapos sasaksakan ko ng kung ano anong usapin.:lol:

Buti pa China dami pera...:)

pero tingnan mo population nila............. more than one billion.........

sabi nga ng mga economist.......... whether how large China's GDP will be........ it will not replace America as the world's richest country in terms of income per capita........... currently, a Chinese individual earns $5000.

one sad news........... China's economic stimulus package ensures only in maintaining jobs and not the efficiency of it's spending........

I hope the projection regarding the GDP growth for the 2nd quarter is more than 1%. This will officially confirm that we are out of recession already.

unfortunately that is not the case at least base on this article:

GDP growth shrinks further in Q2 (http://www.mb.com.ph/articles/216867/gdp-growth-shrinks-further-q2)

By DOW JONES
August 20, 2009, 5:30pm

The Philippine economy continued to limp in the second quarter, hobbled by sluggish growth in the agriculture and services sectors and a likely contraction in the industry, the latest forecast of the National Economic and Development Authority showed Thursday.

S&P growth forecast for RP: 1% to 1.5%
Business Mirror
Written by Jun Vallecera| Reporter
http://www.businessmirror.com.ph/home/top-news/14950-sap-growth-forecast-for-rp-1-to-15.html

WHILE most countries in Asia were seen to post negative growth rates this year, the Philippines was cited as one of five that will continue to expand, the global credit watcher Standard & Poor’s (S&P) said on Thursday.

In its latest Asia-Pacific Market Update report, S&P said the country’s local output, measured as its gross domestic product (GDP), should range from a low of 1 percent up to a high of 1.5 percent.

This was an improvement from an earlier forecast in June when S&P projected growth ranging from 0.5 percent to only 1 percent for the Philippines this year.

“In our baseline scenario, the combined impact of a modest recovery in the US [and an even more modest one in Europe], the persistent effects of expansionary monetary and fiscal policies—and the locomotive effect that the Chinese economy appears to be having on the region, all point to a return to positive growth for all the 14 countries in 2010. Despite this, in many countries the GDP level in 2010 will be lower than it was in 2008,” S&P said.

These comments echoed the optimism bared earlier in the day by the Bangko Sentral ng Pilipinas (BSP) in which Deputy BSP Governor Diwa Guinigundo expected the economy to fare better this year than most forecasts by various experts.

Guinigundo cited resilient consumer activities in the past six months, a more bullish business-process outsourcing sector that had fallen into despair early on, and increased public-sector spending for the rest of the year as reasons for the optimism the economy should defy the doomsayers and post positive growth as forecast.

Nevertheless, S&P acknowledged the potential pitfalls ahead that could wreck the much-hoped-for growth in the Philippines.

One of them is the potential revival of inflation, especially if oil and commodity prices were to surge “beyond levels warranted by demand-supply conditions.”

“This may be a reflection of liquidity-driven investment activity in the markets for these commodities. While prices have moderated in recent weeks, the threat of a surge similar to the one seen in first-half 2008 remains. If this were to happen, central banks would feel pressured to move to a tightening monetary stance sooner than would be warranted by fundamental factors. This could forestall a recovery,” it said.

It also noted interest rates have risen in recent weeks across the Asia-Pacific region, which could hinder the transition from public to private spending, making the process dependent on yet-larger fiscal stimulus, threatening the fiscal balance in the region.”

unfortunately that is not the case at least base on this article:

GDP growth shrinks further in Q2 (http://www.mb.com.ph/articles/216867/gdp-growth-shrinks-further-q2)

By DOW JONES
August 20, 2009, 5:30pm

The Philippine economy continued to limp in the second quarter, hobbled by sluggish growth in the agriculture and services sectors and a likely contraction in the industry, the latest forecast of the National Economic and Development Authority showed Thursday.

Oh GOD, this is not good.

I do hope, the government led by Gloria Arroyo to harness whatever money that the government have, in stimulating particularly agriculture, the main driver of our economy.

Say it aint so... :ohno: :ohno: :ohno:

Neda estimates show economy in recession
Daily Tribune
08/21/2009
http://www.tribune.net.ph/headlines/20090821hed5.html


It could very well be that the economy may have entered into a recession in the second quarter, going by estimates of a senior official of the National Economic and Development Authority (Neda) that the gross domestic product (GDP) contracted by between minus 0.1 and 0.9 percent in the three months to June?

The GDP already shrank a seasonally adjusted 2.3 percent in the first quarter from the previous quarter, its worst contraction in two decades.

A technical recession requires that the GDP contracts by two successive quarters compared to the previous three months. Although Neda gave only estimates on the economy’s performance compared to the previous year, the GDP posted a lower 4.4 percent on-year growth in the second quarter last year compared to first quarter of last year’s 4.7 percent growth.

Compared to the same quarter a year ago, the economy grew a meager 0.4 percent in the first three months.

Senior planning official Dennis Arroyo said the services and agriculture sectors displayed sluggish growth, compounding the projected contraction of industry for the period.

He gave a range of minus 0.1 percent and 0.9 percent GDP growth for the quarter, following a paltry 0.4 percent growth in the three months to March.

The official figures are scheduled for release on Thursday next week.

Arroyo said services, which accounts for one-half of the economy, likely expanded between 1.7 and 2.2 percent, while agriculture, which accounts for less than a fifth, may have grown by just 0.4 percent to 1.4 percent, the report said.

The official said industry likely contracted despite increased government spending to build roads and other infrastructure.

In relation to the dim economic prospects, credit rating agency Standard and Poor’s gave an "underweight" rating on the country along with Japan and Taiwan.

"Our Underweight view on the Philippines is mainly due to the expected limited corporate earnings growth," according to S&P’s "Asia-Pacific Markets Outlook Mid-Year Update 2009" released yesterday.

Market consensus expectation is for a positive earnings per share (EPS) growth at 5.7 percent this year which beats the region’s negative 15.8 percent median decline but EPS growth of 9.9 percent next year will lag the region’s 18.6 percent growth.

"Philippine’s growth prospects are lagging and this may dampen attraction," it stated.

Nevertheless, S&P still cited the Philippines as one of five countries in the region that will eke out an economic expansion this year.

The country’s GDP growth should range from a low of one percent up to a high of 1.5 percent this year, it said.

The projection was an improvement from an earlier forecast in June of growth ranging from 0.5 percent to only one percent.

"In our baseline scenario the combined impact of a modest recovery in the U.S. (and an even more modest one in Europe), the persistent effects of expansionary monetary and fiscal policies—and the locomotive effect that the Chinese economy appears to be having on the region, all point to a return to positive growth for all the 14 countries in 2010. Despite this, in many countries the GDP level in 2010 will be lower than it was in 2008," S&P said.

BSP deputy gov. Diwa Guinigundo maintained the economy will fare better than forecasts this year citing resilient consumer activities the past six months, a more bullish business process outsourcing sector and increased public sector spending.

S&P listed potential pitfalls that may frustrate growth: the potential revival of inflation, especially if oil and commodity prices were to surge "beyond levels warranted by demand-supply conditions."

"This may be a reflection of liquidity-driven investment activity in the markets for these commodities. While prices have moderated in recent weeks, the threat of a surge similar to the one seen in first-half 2008 remains. If this were to happen, central banks would feel pressured to move to a tightening monetary stance sooner than would be warranted by fundamental factors. This could forestall a recovery," it said.

It also noted more recent interest rates have risen in recent weeks across the Asia-Pacific region which could hinder the transition from public to private spending, making the process dependent on yet-larger fiscal stimulus, threatening the fiscal balance in the region.

Also cited was persistent global sluggishness.

"Domestic and regional demand are playing a role in stabilizing the region’s economies but a full recovery will depend on a revival in exports to the U.S. and Europe. Our baseline scenario is, therefore, contingent on the baseline scenarios for these markets playing out as anticipated. If there are further shocks in these economies, they will transmit to the region," it said.

GMA's Plan B for Jet purchase... Totoo kaya ito? :bash: :bash: :bash:

Palace jet purchase still on
By Aldrin Cardona Sports Editor
Daily Tribune
http://www.tribune.net.ph/headlines/20090821hed1.html


President Arroyo may have publicly announced that Malacañang is dropping its plan of purchasing a $1.2-billion jet after drawing public flak, but the plan to purchase a jet plane is still on, except that the "mode" of purchasing the jet plane has shifted to what is termed as Arroyo’s Plan B.

Malacañang will still be purchasing a jet plane, now at a reduced price, and will now be utilizing the funds allotted for the elite 250th Presidential Airlift Wing of the Philippine Air Force.

Despite claims by Malacañang that Arroyo has realized that she only has some months to go prior to her departure from the Palace and that the decision to purchase a Palace jet for the use of the Malacañang tenant will be left to her successor, a highly-reliable source yesterday claimed Malacañang has not totally dropped plans to buy a new plane for Arroyo despite public pronouncements it was withdrawing its invitation to bid for a "presidential fixed-wing executive jet" amid public furor over Arroyo’s reported lavish spending during her state visit to the US early this month.

The evidence of Arroyo’s lavish and ostentatious lifestyle is found in the official documents of the Malacanang’s expenses for her US visit which showed that Arroyo and her entourage lavishly spent P6 million in tips during their six-day US stay.

A report in the GMA Website said Arroyo and her entourage gave away about P6 million in gratuities during the chief executive’s working visit to the US from July 29 to Aug. 5.

The report stated that based on an official breakdown of expenses provided to GMA News by Ching Vargas, Malacañang’s deputy executive secretary for administration and finance, Arroyo’s party spent $66,000 in Washington DC and $59,000 in New York for various service tips, or a total of $125,000 in tips.

All this spending in a foreign country in the tens of millions in dollars amid a recessionary period in the country.

The National Economic and Development Authority (Neda) official yesterday said the Philippine economy may have contracted in the second quarter of this year. Technically, with the economic growth contracting for two quarters, this puts the country in a recession (see related story this page).

And still, the purchase of the jet is still on.

The Tribune source revealed that the PAF is now quietly looking for bidders in its plan to purchase a "second hand" plane, which is claimed to be much much cheaper than the original plan to purchase a jet for $1.2 billion.

It is not known whether the second hand plane will be a different purchase from a "brand new jet engine" with a separate expense for the presidential jet’s special VIP configuration.

The Tribune source also claimed the budget reserved for the second hand plane will be coursed through the 250th Presidential Airlift Wing, an elite Air Force unit whose function is to secure the First Family by providing them with safe and efficient air transport.

The Wing utilizes an aging air transport fleet for the Chief Executive, among them F-28 and F-27 Fokkers, S-70 Blackhawk, S-76 helicopters, S-330 Puma and Belljet helicopters, some of which, however, are scheduled for maintenance work.

"The involvement of the 250th Wing is actually part of Plan B as (Malacañang) officials are aware their first invitation to bid for the $1.2 billion jet won’t fly," the source said.

"But they are quietly working for this second plane as they don’t want another botched job in acquiring a plane for Mrs. Arroyo."

According to the Tribune source, who purposely did not specify the model of the jet being eyed by the Palace, the plane is "now presently in the country," even hinting that it "could be owned by a top business leader who is a known close supporter of the president."

"Those in the know about plane and chopper purchases would know (the plane’s present owner) if we will divulge the make and model of the plane," the Tribune source said. "There are only few very influential people who own planes in the country."

Air Force officials, he said, are currently under negotiations with civilian aeronautic agents looking to form a consortium that would act as "middle men" to make the purchase possible.

Malacañang recalled its call to bid for a presidential fixed-wing jet worth $1.2 billion early this week after criticisms over Arroyo’s lavish spending and high-flying lifestyle snowballed.

The President came under fire after two US newspapers revealed Mrs. Arroyo and her entourage spent more than P2 million to wine and dine at Le Cirque, Bobby Van’s, David Bouley and Wolfgang (Puck’s) Steakhouse, all ritzy restaurants serving only wealthy clients.

On the lavish spending in the US, dining in expensive Washington DC and New York restaurants and staying in very expensive hotels in both cities, the GMA website said the Arroyo party distributed money to bellboys, porters, drivers, convoy escorts, and housekeeping personnel in the US for the services they gave Arroyo and her entourage, and the tips certainly weren’t peanuts, considering the fact that Malacañang documents showed that $125,000, or P6 million, was handed down by the Palace in both cities for tips,

Malacañang last Tuesday presented to reporters copies of documents furnished by Vargas, who gave a breakdown of the budget allocated to the Office of the President (OP) for Arroyo’s local and foreign trips.

Based on Vargas’ record, the OP was given a P130 million budget from 2001 to 2006 for the trips, the following year, 2007, this increased to P170 million and soared to P244.6 million from 2008 until August of this year, totaling approximately P1.5 billion during the entire period Vargas cited.

Malacañang has defended the President over critics’ claim that the expensive meals showed Mrs. Arroyo’s insensitivity toward the plight of many Filipinos suffering from the effects of the global financial crisis.

According to Press Secretary Cerge Remonde, said when the President is abroad for official visits, her expenses are exempted from the government’s austerity measures. He says Mrs. Arroyo’s "aggressive" foreign engagements have brought huge investments to the country.

But the United Opposition, through its president, Mayor Jejomar Binay, reminded Malacañang that Arroyo is not exempt from the austerity measures she herself had ordered implemented in 2004.

"Malacanang should be reminded that no one, most especially Mrs. Arroyo, is exempt from government rules and regulations, including the austerity measures which Mrs. Arroyo herself had imposed on all government personnel and offices," Binay said.

The statement, he added, "betrays the mind set of Malacañang that Arroyo and those who surround her are exempt from the law."

Arroyo signed Administrative Order No. 103 in 2004, citing the need to maintain "prudent fiscal management" in order to ensure "a balanced budget by 2009."

Among other measures, Arroyo ordered a suspension on all foreign travels "except for attendance in ministerial meetings, scholarship/trainings that are grant-funded or undertaken at no cost to the government."

Palace officials - determined to stamp out the controversy over the lavish dinners and the plush accommodations of the Arroyo party during their recent trip to the United States - said Wednesday that her foreign travels are an exception to the austerity measures.

The opposition leader also questioned the veracity of the list of benefits from Mrs. Arroyo’s recent scandal-ridden US trip.

The list of benefits, he said, is no different from the list of so-called benefits from Mrs. Arroyo’s other trips.

"They contain mostly pledges that may or may not materialize, commitments made under existing agreements with the US government that will materialize even without a visit to the US, and agreements entered into by previous administrations, including that of President Joseph Estrada," he said.

"This is what is called ‘drawing’", he added.

In a related development, a youth group yesterday, in a statement, challenged Malacañang to show the nation the receipts.

Directed at the Palace occupant, the statement said: "Show us the receipts! Not your cheap talk, but the details of all your spending from air fare to hotel accommodation up to the last payment receipt you made during the Obama trip. You claim your expenses were not illegal? Then show us!"

This was the challenge made by the Movement of the Youth for Empowerment, Reform, Advocacy and Progress (MYERAP) amid left and right denials and cover-ups of the Arroyo allies in Congress. Ginno Jaralve, the movement’s spokesman said.

"Somebody must be made accountable for that display of lavishness and callousness while hunger and poverty are escalating in surveys."

Uncertainties brought by election, the wait and see attitude of investors, the still looming recession, and the missing stimulus package that the government is talking about contributed perhaps to this anemic growth.

Even with record OFW remittances, the money sent by our OFW are either deposited in banks as savings or spent on non-productive purposes like buying imported luxury goods like LCD, laptops, SUVs, electronic gadgets, foreign travels or attending concerts of foreign artists .

On the other hand, massive importation remains. Imported rice, corn, wheat, coconut, pork, beef, soya, fruits, vegetables, fish and chicken, appliances, wine, liquor, motor vehicles-that are produced by our farmers,fishermen and workers--flood our market with majority are smuggled of poor quality and simply junks from Japan, Korea, China and ASEAN countries.

This situation displaces millions of Pinoys working in agriculture and industry.

The millions unemployed turned to services for work as sales agents and clerks.

But with a Philippine populace with reduced income due to the almost death of agriculture and industry, who will buy those good which are almost imported?

The services sector will suffer contraction.

Overall, the economy will decline.

The stimulus package was meant to stimulate local production. But if the money was used for foreign travels, infrastructures like roads that lead to nowhere, behest loans of relatives of people like tongressman Suarez, election spending...we might end up the only Asian country to experience recession this year.

I beg Gloria Arroyo to please spend our money through the NFA, DA, PCA DOH and other government agencies in buying rice, corn, coconut, fruits, construction materials and all the products of our farmers, fisherman and laborers to spur local production, employment, income and consumption of local goods.

Its a simple circular flow of economic activity that will bring domestic growth.

‘The best story we’ve ever covered’

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20090821-221316/The-best-story-weve-ever-covered

Arroyo party gave P6M in tips during six-day US stay
GMA News
08/20/2009
http://www.gmanews.tv/story/170245/arroyo-party-gave-away-p6m-in-tips-during-six-day-us-stay

President Gloria Macapagal Arroyo and her entourage gave about P6 million in gratuities during the chief executive’s working visit to the United States from July 29 to August 5.

Based on an official breakdown of expenses provided to GMA News by Susanna Vargas, Malacañang’s deputy executive secretary for administration and finance, Mrs. Arroyo’s party spent $66,000 in Washington D.C. and $59,000 in New York for various service tips to bellboys, porters, drivers, convoy escorts, and housekeeping personnel in the US for the services they rendered to the President and her party.

Mrs. Arroyo came under fire after media reported on her supposed lavish meals with husband Jose Miguel Arroyo and government officials in at least four restaurants in Washington D.C. and New York City.

The Washington Post reported that President Arroyo and her entourage dined on lobster, steak, and fine wines for $15,000 at Bobby Van’s Steakhouse on 15th Street in Washington D.C. The dinner took place on July 30 hours after Mrs. Arroyo met with US President Barack Obama.

Quezon Rep. Danilo Suarez, an Arroyo ally, later claimed that he paid for the Bobby Van’s dinner, including the $1,500-tip for the celebration of the 41st wedding anniversary of the President and her husband.

The second dinner was at Le Cirque last August 2, according to US tabloid New York Post. Arroyo’s group reportedly spent $20,000 for the meal that included "very expensive wine" at the upscale French restaurant in Manhattan, New York City.

Malacañang later admitted that Mrs. Arroyo’s group dined at Le Cirque, but denied that the Office of the President spent for the meal.

Press Secretary Cerge Remonde said it was Leyte Rep. Ferdinand Martin Romualdez who picked up the tab for the Le Cirque dinner. But Romualdez evaded media queries about the issue.

The third meal was at the posh Bouley Restaurant on Broadway Avenue in New York also on August 2. This was confirmed by Batangas Rep. Hermilando Mandanas who said it was part of the celebration of the First Couple’s wedding anniversary.

The fourth was at Wolfgang’s Steakhouse on Park Avenue in Manhattan, according to Mindoro Rep. Amelita Villarosa.

Malacañang has defended the President over critics’ claim that the expensive meals showed Mrs. Arroyo's insensitivity toward the plight of many Filipinos suffering from the effects of the global financial crisis.

According to Remonde, when President Arroyo is abroad for official visits, her expenses are exempted from the government’s austerity measures. He says Mrs. Arroyo’s "aggressive" foreign engagements have brought huge investments to the country.


^^ ^^ ^^


GMA windfall from US visit may actually not be what it seems
By Jose Katigbak STAR Washington bureau (The Philippine Star)
August 21, 2009
http://www.philstar.com/Article.aspx?articleId=497907&publicationSubCategoryId=63

WASHINGTON – Who says a bird in hand is better than two in the bush? By counting the birds before they have even hatched or counting them long after they’ve flown the coop, Malacañang has come up with a rosy estimate that “the Philippines generated at least $6.2 billion in investments, trade, and aid from the recent visit of President Arroyo to the United States.”

A Philippine embassy press statement on Wednesday quoted Press Secretary Cerge Remonde as saying the windfall from her visits to Washington and New York in July was higher than the total benefits generated in her combined foreign trips for 2007 and 2008.

Remonde said benefits received by the Philippines included $136 million in security and development aid, $350 million Millennium Challenge Corp. grant, $1.6 billion involving the Generalized System of Preferences, $198 million for the Filipino veterans’ equity fund, $1 billion in estimated garment exports, and $1.2 billion in estimated investments.

He also cited a $1-billion investment commitment by US-based Coca-Cola Co., $300 million of which has already entered the country, the embassy statement said.

Remonde’s tally as reported by the embassy does not conform to Generally Accepted Accounting Principles, a set of standardized accounting rules, so it is not surprising that the sum conjured seems totally out of whack with reality.

The STAR Washington bureau, parsing his tally, notes that:

• The $350-million millennium grant has not yet been approved as the Philippines still has to pass a ‘control of corruption’ criterion.

• The $1-billion in garment exports refers to a bill filed by Rep. Jim McDermott in June to allow certain types of clothing made in the Philippines to enter the US duty free or at substantially reduced tariff. If, and that’s a big IF, Congress takes up the bill next year and approves it, Philippine garments exports to the US are projected to increase by $1 billion after the first full year of implementation.

• The $198-million for veterans was signed into law by President Barack Obama in February after decades of tortuous negotiations between both sides.

• On the $1.6 billion involving the GSP, the Philippines has consistently not fully utilized its benefits under this program aimed at promoting economic growth in the developing world by providing preferential dutyfree entry to the US for nearly 5,000 products.

• The rest of Coca Cola’s proposed $1- billion investment in the Philippines will be spent over five years for the construction of a new soft drink plant as well as the improvement of distribution networks.

President Arroyo is under fire at home for alleged extravagant dinners during her recent US visit and for overspending her travel budget and it appears the “Remonde Defense” is aimed at deflecting some of that criticism.

Estimate pa lang naman ng NEDA but I'm hoping for a growth kahit 0.1% lang.

Arroyo party gave P6M in tips during six-day US stay
GMA News
08/20/2009
http://www.gmanews.tv/story/170245/arroyo-party-gave-away-p6m-in-tips-during-six-day-us-stay

President Gloria Macapagal Arroyo and her entourage gave about P6 million in gratuities during the chief executive’s working visit to the United States from July 29 to August 5.

Putong inamoy talaga itong si gloria at ang entourage nya na galing sa Davao crocodile farm gago talaga!!!:bash::bash:

Puro budget deficit na nga tayo, tip lang 6 million. Ilang sako ng pataba at farm inputs yan para sa kooperatiba ng magsasaka yan?:bash::bash:



GMA windfall from US visit may actually not be what it seems
By Jose Katigbak STAR Washington bureau (The Philippine Star)
August 21, 2009
http://www.philstar.com/Article.aspx?articleId=497907&publicationSubCategoryId=63

WASHINGTON – Who says a bird in hand is better than two in the bush? By counting the birds before they have even hatched or counting them long after they’ve flown the coop, Malacañang has come up with a rosy estimate that “the Philippines generated at least $6.2 billion in investments, trade, and aid from the recent visit of President Arroyo to the United States.”

A Philippine embassy press statement on Wednesday quoted Press Secretary Cerge Remonde as saying the windfall from her visits to Washington and New York in July was higher than the total benefits generated in her combined foreign trips for 2007 and 2008.

Remonde’s tally as reported by the embassy does not conform to Generally Accepted Accounting Principles, a set of standardized accounting rules, so it is not surprising that the sum conjured seems totally out of whack with reality.

The STAR Washington bureau, parsing his tally, notes that:

• The $350-million millennium grant has not yet been approved as the Philippines still has to pass a ‘control of corruption’ criterion.

• The $1-billion in garment exports refers to a bill filed by Rep. Jim McDermott in June to allow certain types of clothing made in the Philippines to enter the US duty free or at substantially reduced tariff. If, and that’s a big IF, Congress takes up the bill next year and approves it, Philippine garments exports to the US are projected to increase by $1 billion after the first full year of implementation.

• The $198-million for veterans was signed into law by President Barack Obama in February after decades of tortuous negotiations between both sides.

• On the $1.6 billion involving the GSP, the Philippines has consistently not fully utilized its benefits under this program aimed at promoting economic growth in the developing world by providing preferential dutyfree entry to the US for nearly 5,000 products.

• The rest of Coca Cola’s proposed $1- billion investment in the Philippines will be spent over five years for the construction of a new soft drink plant as well as the improvement of distribution networks.

.
malinaw na si Ab-cerge (absurd) remonde ay saksakan ng sinungaling at sa sobrang pagsisinungaling talagang certified tanga at istupido na sya!

Magsisinugaling na lang mali-mali pa, BOPOL!!:bash::bash:

all these foreign artists performing in the Philippines, hard earned ofw money coming in and just as quickly going out. If only ofw monies are harnessed to its fullest multiplier effect potential on the economy it wouldn't matter that we get the lowest percentage of fdi amongst regional peers. the middle men like Mr Sy, the smugglers and foreign countries are the winners while we get complacent in producing anything.

Lights, camera . . . people power in action! (http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20090821-221323/Lights-camera-----people-power-in-action)

By Bayani San Diego Jr.
Philippine Daily Inquirer
First Posted 07:29:00 08/21/2009


MANILA, Philippines — Imagine these: a GMA 7 crew asking permission from an ABS-CBN team before setting up equipment. All networks dipping into a “footage pool” or borrowing videos from one another. News anchors from different stations riding the same van to a location. Stars from rival channels singing together for a single televised event.

In death, as in life, Tita Cory played the role of peacemaker, uniting warring media organizations, if only briefly, via the multi-platform coverage of her funeral.

“There was actually a ceasefire in the network war,” noted Cory Vidanes, Channel 2 head.

For the Requiem Mass held at the Manila Cathedral on Aug. 5, GMA 7 talents Ogie Alcasid and Regine Velasquez performed with ABS-CBN stars Zsazsa Padilla and Piolo Pascual.

Ogie pointed out, “Regardless of political beliefs or network affiliation, we were all one that day.”

The musical program within the Mass featured many other stars from the stations’ competing Sunday noontime shows “ASAP” and “SOP.”

International stage actress-singer Lea Salonga, who sang the Edsa I anthem “Bayan Ko,” recalled “rehearsing repeatedly.” In her column last week for Inquirer Entertainment, she said she rose on the day at 4:30 a.m. and was at the Manila Hotel, meeting place for the performers, at exactly 6:15 a.m.

After breakfast, she recounted, the performers rehearsed their group number, “Handog ng Pilipino sa Mundo,” the second Edsa I anthem.

..........

Arroyo orders monument to Cory Aquino built

“I am pleased to announce that the President has ordered the immediate construction of a monument to the late President Corazon Aquino at Rizal Park,” Golez said.

“We have long honored Tita Cory in our hearts, and now we will celebrate in deathless lineaments of concrete and steel the life and passage of a national heroine for the constant reminder of future generations.”

Either Manila or Makati (http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20090821-221302/Arroyo-orders-monument-to-Cory-Aquino-built)

Should be in Makati. Similar to Ninoy's.

As for the "Lights, camera... People Power in action!", I cannot agree more.

all these foreign artists performing in the Philippines, hard earned ofw money coming in and just as quickly going out. If only ofw monies are harnessed to its fullest multiplier effect potential on the economy it wouldn't matter that we get the lowest percentage of fdi amongst regional peers. the middle men like Mr Sy, the smugglers and foreign countries are the winners while we get complacent in producing anything.

definitely agree!:cheers::)

PEZA approves 59-hectare economic zone in South Cotabato

By BERNIE CAHILES-MAGKILAT
August 21, 2009, 6:15pm
Manila Bulletin

The Philippine Economic Zone Authority has granted an economic zone status to the 59-hectare manufacturing and IT project of Richmond Land Innovations Inc. in South Cotabato with project cost of P701.1 million.

Dubbed as the Mindanao Economic Development Zone, the project is located in Barangay Matinao, Polomolok, South Cotabato.

PEZA Director-General Lilia B. De Lima has informed Trade and Industry Secretary Peter B. Favila that the project’s approval is still subject to the issuance of the required Malacañang proclamation.

Richmond Land is a subsidiary of the RD Group of Companies, a family-controlled enterprise, founded and managed by businessman Rodrigo E. Rivera Sr.

Of the 59.911 hectare ecozone, 50 percent would be allocated for light industrial area and 20 percent for IT component. The remaining 30 percent would be roads and open spaces.

Target locators are export-oriented light manufacturing industries and IT services.

The development of the Mindanao Economic Development Zone is expected to help perk up economic developments in the area.

Although South Cotabato is a peaceful area in southern Mindanao, it has not improved much.

Polomolok is a 1st class municipality of South Cotabato. Situated between General Santos City and Tupi, it has a population as of 2007 census of 131,436 people in 22,492 households. Polomolok is home to Dole Philippines, the biggest pineapple plantation in the world. The town of Polomolok has a potential to become a city.:)

Economy likely grew 0.9%

by Roderick T. dela Cruz
Manila Standard
August 21, 2009

The Philippines’ gross domestic product, which represents the total value of goods and services produced within the country, likely grew up to 0.9 percent year-on-year in the second quarter of 2009, the National Economic and Development Authority said yesterday.

“For the second quarter of 2009, real GDP is projected to have grown between negative 0.1 and positive 0.9 percent as all sectors are seen to weaken vis-a-vis last year, except for the construction, mining and quarrying, and finance sub-sectors,” Neda policy and planning director Dennis Arroyo told reporters yesterday.

The National Statistical Coordination Board will release the official GDP growth figures for the second quarter on August 27.

“There is only one in ten chance of the [economy] leading to recession,” Arroyo said, noting that the economy grew 0.4 percent in the first quarter. Recession, in the technical definition, means two consecutive quarters of negative growth.

“We still felt the impact of the global financial crisis in the second quarter. Based on our data, the economy began to recover in the third quarter,” Arroyo said.

The National Statistical Coordination Board earlier said latest flash indicators point to modest signs of recovery at the end of the first quarter of 2009 after feeling the impact of the global financial crisis that was felt beginning October 2008.

Arroyo, however, said consumer spending remained sluggish in the second quarter because of fear to spend among consumers amid the global crisis. He said families of migrant Filipino workers were trying to prepare for the worst, in case jobs abroad were lost.

Arroyo said that to boost consumer spending, “we have to make the public aware that the recession is winding down.”:)

Ironic articles centering on fastfood/Mcdo. What a contrast! Ang mura sa iba/mayaman, mahal naman sa iba/masa. Really shows the growing gap between the rich and the poor in our country. :ohno: :ohno: :ohno:

GMA's imprudence increases public disapproval
Manila Times
http://www.manilatimes.net/national/2009/aug/22/yehey/opinion/20090822opi1.html

THE Palace admission that it exceeded its foreign travel budget by a billion pesos is frankly quite horrific, to say the least. For one, a billion pesos is hardly loose change.

That amount can finance the construction of at least 300 three-story, six-classroom buildings—infrastructure that our public school system desperately needs to ensure the rural poor’s children get a decent education.

Education experts had said the country needs at least 74,000 more classrooms to ensure a single-shift arrangement, which is the ideal situation—and by ideal we mean an environment conducive to learning.

In fact, Malacañang’s overspending on its foreign sorties already amounts to more than half the P1.7 billion the Department of Education (DepEd) allocated for the construction of new classrooms and repair of existing ones for this year alone.

We can’t help but suspect that one of the reasons Malacañang accepted the sub-par arrangement of having at least two shifts a day in the public schools is to ensure the Palace entourage would have ample money to wine and dine during state visits in the US and elsewhere.

Now that leaves a bad taste in the mouth for existing and potential sponsors of the DepEd’s Adopt-a-School Program.

How can the government expect the private sector to forgo their corporate jets and huge expense accounts for the benefit of the country’s public school system if the national leadership is hardly the model of judicious spending?

Palace spin-meisters protest that a president cannot be expected to eat at McDonald’s.

But we beg to disagree.

Indeed it would have been a very strong sign of fiscal prudence—and a publicity coup, to boot—had Mrs. Arroyo led her entourage all the way to Times Square and spent less than a dollar each on a Sabret hotdog sandwich. But Malacañang opted for the very insensitive route of dining in a ritzy place like Le Cirque.

Many countries—including the world’s richest—are scrambling to secure money to pump prime their economies and prevent a prolonged global slump.President Arroyo’s US host, President Barack Obama, is spending 5.6 percent of his country’s output this year to stimulate the world’s biggest economy, even as his lieutenants are hot on the heels of Wall Street’s high-flying executives, especially those manning the boardrooms of some of the largest banks that benefited from Federal subsidies.

At a time when every other nation’s leader is trying to boost confidence among their people so they can help jump-start their economies and prevent a repeat of the 1930s Great Depression, Malacañang is breeding public contempt for itself, and eroding the thankless efforts of its economic managers to keep the Philippines from slipping into a recession.

It’s too soon to wine-and-dine and celebrate. Clearly, we’re not yet out of the woods.


________________________


Metro Manila workers must toil more to afford a Big Mac
Business World
http://www.bworldonline.com/BW082009/content.php?id=005

METRO MANILA workers have to toil roughly twice longer than the global average to earn enough for a Big Mac, again placing nearly at the bottom of purchasing power rankings in this year’s UBS Prices and Earnings study.

An hour and 18 minutes’ work equals a Big Mac in Metro Manila. The metropolis ranked 71st out of 73 cities in terms of domestic purchasing power or the ratio of wages to local prices, only a notch improved from when it placed second to the last in 2006.

Workers here must put in 88 minutes — seven more than in 2006 and more than double than the 37-minute global average — to be able to afford the fast-food chain’s burger.

The city’s purchasing power index score of 18.7, however, is up 38.5% from the 13.5 recorded in 2006.

The UBS study, conducted every three years, bases the comparison on the average wage of 14 professions and price of a standard basket of 122 goods and services in March 2009.

It is in Zurich where workers get the most bang for their buck, followed by Sydney, Luxemborg, Dublin and Miami.

Manila is better off than last-placer Jakarta but is outranked by the three other Southeast Asian cities on the list: Kuala Lumpur, Singapore, and Bangkok.

The poor ranking came even as the cost of living in the Philippine city was said to be still among the lowest in the world. Prices of goods and services here are third to the cheapest among the 73 countries, bested only by Delhi and Mumbai.

The study mentions specifically that, "nowhere in the world is clothing cheaper than in Kuala Lumpur and Manila".

The price gap among easy-to-transport goods such as food, clothing, and electronics is small across cities, while prices for services fluctuate more.

"Thanks to countless international trade agreements and efforts to eliminate protective tariffs, people and companies can now buy a seemingly limitless variety of products and exploit the relative cost advantages of the global marketplace," the UBS study stated.

"[But the gap in prices of services] persists because virtually no trade exists between countries for many services," it added.

The low prices in Manila are offset by the similarly low wages earned by its workers. Wage levels in the city ranked 71st out of 73, higher than only Jakarta’s and Mumbai’s and again outpaced by the three other Southeast Asian neighbors.

"Zurich and Geneva top the rankings in our international comparison of wages. By contrast, the average employee in Delhi, Manila, Jakarta and Mumbai earns less than one-fifteenth of that amount," the study stated.

Even as the study notes that "what really matters is how many goods and services workers can buy" after taxes, net hourly income in Manila remained third from the bottom of the list.

Sought for comment, University of Asia and the Pacific economist Peter Lee U said in a telephone interview: "To improve purchasing power, it’s more of a question of income really, and the increase in the level of development... since our prices are relatively low."

"Income is tied up to people’s productivity so investing in people I guess, in education, will mean higher-paying jobs."

Mr. U noted, however, that the ranking does not mean Metro Manila is among the poorest in the world.

"I’m sure there are other poorer cities not included," he said.

Instead of lavish dinner:
What $20,000 can do for our environment
By Anabelle E. Plantilla
Manila Times
http://www.manilatimes.net/national/2009/aug/22/yehey/opinion/20090822opi5.html

Much has been said and printed about the lavish dinner our president had in New York. A little birdie even told me that she celebrated her wedding anniversary in their presidential suite at the Waldorf Astoria. What can $20,000 do for our environment?

It can buy 12,800 native seedlings that can be planted and maintained in at least five hectares of denuded forests. Our forest cover is less than 20 percent and scientifically we need 54 percent to regulate ecological processes, water supply being one of the primary benefits we get from a healthy forest ecosystem. Without water, our food security is threatened because agriculture (irrigation) is the primary user of water. It is imperative that we restore our forests as soon as possible. In relation to this, $20,000 can help establish ten native tree nurseries to ensure a steady supply of seedlings to bring back our forests.

Last week I was in Surigao where I had the opportunity to interact with our partner peoples organizations (PO) to whom Haribon is providing livelihood projects to relieve human pressures on the forest. Upon their request, we provided them with training on liquid dishwashing and detergent soap-making as these are basic household needs. Materials to make one cycle of 24 liters of liquid dishwashing soap cost P700. When sold, the PO generates 100-percent profit. $20,000 will enable these POs to produce approximately 1,370 cycles of soap and profit a thousand fold. Definitely, the much-needed revenue will benefit the POs and enable them to use the extra income for primary household expenses like food, education and health.

$20,000 can buy a dozen motor boats for the Bantay Dagats to patrol marine protected areas and deter illegal fishing activities in these important breeding areas and shelters of fish and other marine organisms. A multitude of stakeholders depend on fisheries including municipal and commercial fishers, canneries, fish markets and various industries. Fish provides direct income to some 1.3 million small fishers and their families. This generates an average earning of P4,000 per household per month, or over P62-billion worth of employment every year. (Haribon/Pamana Ka, 2005)

Last year, Congress signed into law R.A. 95121, or the Environmental Awareness and Education act of 2008. $20,000 can buy almost a thousand reference books on Philippine biodiversity that can be distributed to school libraries on the month of November which is Environmental Awareness Month. These reference books are the best tools a teacher can have in making sure that this new law is enforced. The knowledge that will be gained by the students on the environment is priceless and can change their behavior toward how the environment is perceived and valued as a resource.

$20,000 can provide funding to ten field-based research on threatened species and their habitats. Our country is one of the world’s mega-diverse countries and the endemicity or uniqueness of our wildlife is very high. Five out of 10 plants and animals can only be found in the Philippines. Brazil, which is almost 25 times the size of our country has an endemicity of only 25 percent! Data on our species is important in developing policies that are responsive and appropriate. For example, aquatic mammals are generally less known than the terrestrial mammals. Although dolphins are widely distributed and perhaps better known locally, they are poorly understood at the global level (Baillie et al. 2004). Whales are also poorly understood even though they have been hunted commercially for centuries. Thus, while these animals are listed at lower categories of endangerment, the real picture of the level of threat is not necessarily low, especially for populations in the Philippines (Sinha 2005). Thus, this situation calls for information that is accurate to help policy makers respond properly.

Indeed, money spent for dinner could have made strides in conservation and could have inspired and motivated natural resource dependent communities and other stakeholders to look at the environment at an entirely different perspective, care for it and appreciate it for what it is—our life support system that should always be protected above all else.

No Arroyo ‘Plan B’ in jet purchase according to Palace
Daily Tribune
08/22/2009
http://www.tribune.net.ph/headlines/20090822hed6.html


Malacañang yesterday denied the reported continuous pursuing of the new executive jet for President Arroyo despite publicly announcing that the proposal was already turned down by her for the second time around.

"I personally talked to the commander of the Presidential Security Group and the commander of the Presidential Airlift Wing and they were as shocked as all of us here in Malacañang about that report.

There is no such plan as far as I know. There is no Plan B," Press Secretary Cerge Remonde told a press briefing.

The Palace official said if ever there would be any new proposal submitted to the Chief Executive regarding the purchase of the Palace jet it would still be rejected and disapproved since the decision of the President to cancel such purchase was already final and considered irrevocable at this point.

The Philippine Air Force (PAF), for its part, reiterated that the plan to purchase a presidential plane has been called off.

"The plan to buy a presidential plane has been called off," Air Force spokesman Lt. Col. Gerry Zamudio told the Tribune, citing the announcement made by Malacañang earlier.

"There is no ongoing plan to buy that plane," he added, citing the specific instruction of Arroyo to scrap the plan and allot the P1.2 billion to the Armed Forces of the Philippines (AFP).

At present, the Air Force 250th Presidential Airlift Wing, which is tasked to provide secure air transport for the President and the First Family, only has an S28 plane, five Bell412 helicopters and one Blackhawk in its fleet.

Zamudio, however, said there are programmed purchases under the Air Force capability upgrade, among them are the acquisition of P3.2 billion worth of attack helicopters, P3-billion combat utility helicopters, 18 basic trainer aircraft worth P207 million, two light lift plane – which can carry a maximum of 12 passengers – amounting P460 million each.

"These are all programmed to address the capability gap of the Air Force’s internal security operations," Zamudio said.

Also in the pipeline are the refurbishment of one C130 airplane and the purchase of 20 engines for the upgrading of MG520 helicopters.

The Tribune reported on Friday that despite pronouncements from Malacañang that the planned purchase of a presidential plane was called off, the plan still is still in the works but shifted to Malacañang’s supposed Plan B.

Under such plan, the Tribune source revealed that the PAF is now quietly looking for bidders in its plan to purchase a "second-hand" plane, which is claimed to be much much cheaper than the original plan to purchase a jet for P1.2 billion.

"If ever the said amount (P1.2 billion) would be given to the Armed Forces, the general headquarters (Camp Aguinaldo) will have the authority where to allocate that," Zamudio said.

The source also claimed that the second-hand plane being considered for the purchase could be owned by a top businessman who is known to be a close supporter of the President.

The procurement of the new executive jet was first announced last week by presidential economic spokesperson Gary Olivar.

A couple of days after that announcement, Remonde declared that the President has reversed her decision and would no longer pursue such plan.

According to the Palace, Arroyo’s decision to cancel such purchase came upon realizing that she now only has less than a year to complete her term and thus leaving the procurement decision to her successor instead.

It also clarified that this decision by the President was not part of the defensive measures being taken by the Palace to stop the critics from pressing so much on the issue of the lavish dinners partaken by the presidential party several weeks ago while on official visit to the United States.

Sen. Alan Peter Cayetano, however, criticized Malacañang’s overspending amid reports that it will still pursue plans of purchasing a presidential jet.

"The overspending on the wrong items and misplaced priorities combined with a worsening tax collection inefficiency may explain the ballooning budget deficit," he noted.

"This administration has incurred more debts than many previous presidents combined. Her spending pattern shows an illusion of a poor country pretending to be a first world, what with her P1 million dinner and a dream of a P1.2-billion jet at a time of growing hunger among Filipinos.

"They’d rather pursue political and graft-ridden projects rather than engage in programs that will uplift the lives of Filipinos," Cayetano added.

Malacañang’s mouthpieces have constantly spoken in unison that they did not want to give further comments involving the series of reports released by local and international media that exposed how lavish the President’s lifestyle had always been especially when visiting foreign countries.

The President came under fire after two US newspapers revealed Arroyo and her entourage spent more than P2 million to wine and dine at Le Cirque, Bobby Van’s, David Bouley and Wolfgang (Puck’s) Steakhouse, all ritzy restaurants serving only wealthy clients.

'Bankrupt government for next president'

By Jess Diaz
(The Philippine Star)
Updated August 22, 2009 12:00 AM

MANILA, Philippines - President Arroyo’s successor faces a big budgetary problem, as he or she will inherit a practically bankrupt government, newly resigned economic planning secretary Ralph Recto said yesterday.

“Those aspiring to succeed her must explain to the people how they intend to solve this serious fiscal problem,” Recto told reporters in a chance interview.

“It’s easy to promise more jobs, more roads, more school buildings, but how you raise the funds to accomplish all that is the difficult part,” he said.

Recto said the president to be elected in the May 2010 elections will take over a government that is deep in debt and burdened with a budget deficit of more than P200 billion.

“Next year’s interest payments are projected to increase by P85 billion. The funding requirement for the salary standardization is about P75 billion. Billions more will be needed for the increase in the pension of retired military personnel. Where do you get the money for all those additional expenses?” he said.

By salary standardization, the former economic planning chief was referring to a law passed by Congress this year mandating a four-year adjustment in the salaries of the more than one million government personnel.

When the full increase is given, the lowest-paid employee will have received a 50-percent adjustment, while those getting huge salaries and allowances will have received more than 100 percent.

State workers started getting the first installment of the Malacañang-initiated adjustment last month.

Recto said Congress passed the law without an accompanying revenue measure.

He said the money needed for the pay increase and other big-ticket expenses will come from borrowings.

“That is why you have a projected 2010 budget deficit of about P230 billion. That will again add to our growing debt,” he said.:bash::bash:

The country’s debt, according to former budget secretary Benjamin Diokno, has increased to P4.3 trillion under President Arroyo from about P2 trillion during the time of ousted President Joseph Estrada.

Recto is the author of the expanded value added tax (EVAT) law as well as the measure adjusting excise taxes on cigarettes and liquor.

He said EVAT has served as cushion against the impact of the global financial crisis.

He said the next president should tap all revenue sources, including cigarettes and liquor or the so-called sin products, as well as telecommunications services.

“But the government must first conserve resources by collapsing agencies that are not needed and saving on expenses. We cannot impose more taxes without resorting to honest-to-goodness austerity measures,” he stressed.

He pointed out that there are a lot of items in the annual budget where tens if not hundreds of billions in savings could be realized.

He suggested that the next administration, in formulating the budget, should start from scratch.

“We have to start from zero, decide which agencies and personnel to keep, how much to spend. The next president must have the political will to do that and collect taxes from everyone, including big business. He must not be hamstrung by political debts,” he said.

There are at least two tax measures pending in the House of Representatives that aim to narrow this year’s budget deficit, which is projected to reach an unprecedented level of P300 billion.

These are the increase in sin taxes and the metering of mobile phone services, including the imposition of a five-centavo tax on text messages.

Quezon Rep. Danilo Suarez, proponent of the measures, has accused Speaker Prospero Nograles of sitting on his proposals.



As I said before, this stupid admionistration and its stupid economic team is leaving a government with mountains of debt both from foreign and domestic lenders.

GOD, will somebody stop this stupid government's profligacy !!!:bash::bash::bash::bash:

Group sees more growth under Arroyo (http://www.mb.com.ph/articles/217019/group-sees-more-growth-under-arroyo)
By DEXTER A. SEE Manila Bulletin (http://www.mb.com.ph/articles/217019/group-sees-more-growth-under-arroyo)
August 21, 2009, 7:12pm

BAGUIO CITY -- The national government has satisfactorily, effectively, and efficiently managed the country’s economy which resulted in no recession despite the global economic meltdown that affected several developed nations, an official of the Philippine Chamber of Commerce and Industry (PCCI) said here late Thursday afternoon.

The good export climate, the positive foreign receipts coupled with the improving American economy are now indicators that the country’ s economy will slowly improve in the remaining quarters of the year, Ambassador Donald Dee, PCCI chairman emeritus, said.

Contrary to the perception of the opposition and other militant groups that the country’s economy had been poorly managed during the Arroyo administration over the past eight years, the PCCI said it is only during the period 2001-2008 that the country realized 36 quarters of positive growth and a stable foreign direct investment climate which greatly helped shield the serious negative effects of the global economic crisis in the local scene.

The largest business group in the country believes that by next year economic growth will increase to levels where the poor Filipino families could feel the effects of improving fiscal position through the provision of better socio-economic and basic services.

However, Dee said they are hoping that there will be no overspending in the forthcoming May 2010 synchronized elections so that there will be no inflationary pressure which could affect the country’s fiscal position before and after the elections.

He said elections usually unite people and there is a clear indication that the country will be able to achieve a stable economic situation once national and local leaders will be put in place by the voters.

In the business aspect, Dee pointed out the country’s economy was slightly over the positive level and never reached negative levels during the term of President Arroyo.

The recession which many people fear would affect the country never occurred because of the strong fiscal position of the national government brought about by the good stewardship of the economic managers, he said.

At the same time, he credited the Arroyo administration for the multi-billion investments it poured in infrastructure development, health and education which is now making a big difference in improving the living conditions of the poor families in the countryside.

Dee underscored that such investments provided the avenue for more employment opportunities, access to potential growth centers, and agricultural enhancement, among others, which are vital aspects in charting the country’s future.

The country’s export services which had recorded growth from 5 to 6 percent over the past several years could now be given a big lift with the improving economic conditions of developed countries such as the US, translating to improved economic growth for the country in the coming months.

Meanwhile, the group said the alleged excessive spending of President Arroyo and her party in her foreign trips was not a big deal since she is carrying the image and credibility of the country once she steps on a foreign land.

Dee said it is unfortunate that some politicians are making use of senseless issues against the Arroyo administration just to advance their own agenda.

Dee said it is only in the Philippines where people scrutinize expenses of top officials which should not actually be the case since the services of the President in promoting the country as an investment cannot be given a price tag.

The PCCI official cited a leader of an Asian country who ordered the re-modeling of a hotel room in Europe just to stay there for only one day but the people in his country never questioned such excessive spending of their leader.

According to Dee, the re-modeling of the Europe hotel room is far more expensive than Arroyo’s US trip but it seems politics is prevailing in our country due to the upcoming May 2010 elections.

What is important, Dee emphasized, is that the Philippines is known worldwide as an investor-friendly nation so that foreign direct investments will continue to come.

Dee said there are more pressing issues in the country which should be addressed by both the administration and opposition leaders.

He said the 90 million Filipinos must wake up to the reality that they should not vote for people who are trying hard to gain publicity by simply barking up the wrong tree for their names to be broadcasted, printed and televised in media.

Arroyo's team should just shut up!

They're always promising for jobs and more infra but they're burying us again in debt............. very much like Ferdi Marcos!

The next Pres. will maybe facing a bunkrupt government and a country spiraling into recession because of debt!

Group sees more growth under Arroyo (http://www.mb.com.ph/articles/217019/group-sees-more-growth-under-arroyo)
By DEXTER A. SEE Manila Bulletin (http://www.mb.com.ph/articles/217019/group-sees-more-growth-under-arroyo)
August 21, 2009, 7:12pm

BAGUIO CITY -- The national government has satisfactorily, effectively, and efficiently managed the country’s economy which resulted in no recession despite the global economic meltdown that affected several developed nations, an official of the Philippine Chamber of Commerce and Industry (PCCI) said here late Thursday afternoon.

The good export climate, the positive foreign receipts coupled with the improving American economy are now indicators that the country’ s economy will slowly improve in the remaining quarters of the year, Ambassador Donald Dee, PCCI chairman emeritus, said.

Oh yes, the certified ass-licker Dee ( one of the defenders and one of those implicated on the ZTE deal) now rewarded by his master as a fu@k up ambassador. I think this Gloria puppy should just shut the fu@k up!

Arroyo's team should just shut up!

They're always promising for jobs and more infra but they're burying us again in debt............. very much like Ferdi Marcos!

The next Pres. will maybe facing a bunkrupt government and a country spiraling into recession because of debt!


Well said!

^^ Leaders of far progressive and developing countries never traveled to often just for looking investments because these come voluntarily if they see that there is enough sincerity of the Administration and enough trust from the people to the Government...........

And no leader of a poor country sad to say.......... ever had a lavish dinner and carrying over many companions in their trip.

Gloria should always think................ on what country she leads........ is it progressive enough that she'd waste lots of money for one meal instead of helping in the country's development or even decreasing the country's debt and not bubbling it up!

Agree again!:cheers:

^^ Leaders of far progressive and developing countries never traveled to often just for looking investments because these come voluntarily if they see that there is enough sincerity of the Administration and enough trust from the people to the Government...........

And no leader of a poor country sad to say.......... ever had a lavish dinner and carrying over many companions in their trip.

Gloria should always think................ on what country she leads........ is it progressive enough that she'd waste lots of money for one meal instead of helping in the country's development or even decreasing the country's debt and not bubbling it up!

Where did RP debt go? (http://www.abs-cbnnews.com/business/08/22/09/where-did-rp-debt-go)

MANILA - All borrowings under President Arroyo's term--that racked up the country's outstanding debt to a whopping P4.2 trillion as of 2008 from only P2.2 trillion in 2000--were necessary, her economic managers argue, amid accusations the President was responsible for the country's deepening financial woes.

The question now is: Where did all the debt go?

Finance Secretary Margarito Teves said bulk of the present administration's borrowings were used to settle debts, which were not its own. He added some went to interest payments while some were used to pump-prime the economy to highs in the recent past.

But President Arroyo's critics, including University of the Philippines economist and former budget chief Benjamin Diokno, beg to differ.

Diokno said while the Arroyo administration paid off debts, it also nurtured an appetite for overspending and corruption that filled up the pockets of a few.

Paying off debts with debts

Insisting that the President should not be blamed for the growing national debt, Teves said in recent interviews that Mrs. Arroyo's predecessors actually started the debt problem.

Of the Philippines' P4.2 trillion debt, Teves said the chunk of P2.7 trillion was paid for principal maturing obligations of the past administrations of Cory Aquino, Fidel Ramos and Joseph Estrada.

He said P1.2 trillion of the amount was used to pay interests on existing loans, and P300 billion for the government's cash build-up program.

"Anywhere between P300 to P320 billion annually is used for interest payments. The portion that was used to pay for principal maturing obligations amounts to P2.7 trillion or 64% of the P4.2 trillion total national debt," he said.

Nonetheless, the figures don't change the fact that the country's debt stock more than doubled under Arroyo's watch.

Data from the Bureau of Treasury showed that Mrs. Arroyo contributed P2.06 trillion to the P4.2 trillion debt stock, exceeding the aggregate amount of debts of the 3 presidents before her. (Read: Lower RP debt: Truth or spin? - http://www.abs-cbnnews.com/business/07/28/09/lower-rp-debt-truth-or-spin [12])

Even when new debts incurred by all post-Marcos administrations are adjusted to 1985 prices (to eliminate inflation and other aspects), the Arroyo administration's P923.76 billion was still the highest, according to data from anti-debt group Freedom from Debt Coalition


http://www.abs-cbnnews.com/sites/default/files/a_images/graphics/graphs/Debts_per_president.JPG

Spending for debts vs investments

Diokno said paying off the past administrations' debts also won't pass as an excuse for the enormous borrowings the Arroyo government alone incurred.

Although he acknowledged the need to honor the previous debts, he said this should be balanced with sound spending to boost the economy.

Normally, when a government spends more than what it takes in through taxes or other means of generating funds (such as privatization), it must make up for the shortfall through borrowings. This shortfall is known as the deficit.

Ideally, according to Diokno, borrowings should be spent on public investments in infrastructure or social services, "which would pay for [themselves]" or generate funds enough to cover the government's expenditures and debt payments in the future.

"There's nothing wrong if the money you'll borrowing will be used for investments in, for example, roads and education, which would help expand the economy," he said.
But what happened during Arroyo's term was far from the ideal.

Statistics have shown high economic growth rates in the previous years, particularly the 30-year peak of 7.1% in 2007, but the increase in government revenues remained modest, Diokno said, noting that "tax collections are still not enough."

Measly revenues, coupled with what he said was Arroyo's bad habit of overspending, resulted in a yearly deficit of P200 to P300 billion for the government, which in turn, resulted in the pileup of debts, he added.

Overspending and corruption

Diokno said he, and the public, could not help but suspect that the yearly deficit is going into some people's pockets.

"Every year there is a deficit. Where does it go? We don’t see any projects that are actually going to the people,” he lamented.

Mrs. Arroyo's more than 8 years of stay in office has been marred by a series of corruption scandals (Read: Scandals! - http://www.abs-cbnnews.com/special-report/07/17/09/scandals [13]), which economists said very well explain the leakage of public funds.

Recently, the Arroyo government's excesses were highlighted in media reports after the President and her huge entourage reportedly incurred huge bills from expensive dinners in a recent visit to the United States.

Malacañang had admitted that Mrs. Arroyo's trips abroad went over budget, but insisted that the Office of the President did nothing illegal.

Deputy Executive Secretary for Administration and Finance Ching Vargas said that from 2001 up to this year, the government has already spent P2.5 billion for Mrs. Arroyo's travels, way above the allocated budget of P1.4 billion.

^^

Are they so sure that it's only for the roads and other infras?:wtf:

Or does it also include the extraordinary TONGPATS in every infrastructure projects................:down:

Does it include her travels outside the country like a tourist? Cory used her own money in traveling for international meetings...........:ohno:

I'm sure............ no very large amount would ever be borrowed without the controversial "Additional Expenses"...........:sly:

^^ It would have been more "tongpats" kung hindi na purnada yung ZTE project.

Even if the loans were invested minus their "bukols", we would never know how much was their "take" or "cut" on the return profits. For one thing, being part of that gov't management is a profitable business venture right now. In a few more months, it is exciting on how the new administration will handle the inherited economy.
Kaya sagaran na ngayon ang nakawan before the 2010 election. :lol:

wow, si Prez Arroyo ang naka kuya nang Honor role...ang laki pala nang utang. sigurado mahihirapan ang susunod na Prez.

^^ It would have been more "tongpats" kung hindi na purnada yung ZTE project.

Even if the loans were invested minus their "bukols", we would never know how much was their "take" or "cut" on the return profits. For one thing, being part of that gov't management is a profitable business venture right now. In a few more months, it is exciting on how the new administration will handle the inherited economy.
Kaya sagaran na ngayon ang nakawan before the 2010 election. :lol:

Ganun na nga. Kailangang sulitin na ang tongpats para malaki-laki rin ang reserba pag nagtago na sila sa ibang bansa o kaya labanan ang patong patong na kaso ni Gloria at ang mga alipores niyang matakaw at buwaya.

Hwag kakalimutan ang buwayang tulad ni Benjamin "burjer" Abalos, Joc Joc " fertilizer scam Bolante" at galante ngunit matakaw ring Tongresman Suarez!

Yung mga tuta tulad ni doberman ni Gloria na si Esperon, Razon at Gonzales.

At si swarding na Neri at super sinungaling na Ab-cerge remonde at Lore-LIE.

Manila bridge, hospital in Cory’s name

By Tina Santos
Philippine Daily Inquirer
First Posted 22:55:00 08/22/2009

Filed Under: Heroism, Infrastructure

MANILA, Philippines – The Lambingan Bridge and a 10-story public hospital under construction, both in Sta. Ana, Manila, will be named after the late president Corazon Aquino as a way of honoring her and the selfless dedication she gave for the country.

Mayor Alfredo Lim announced this during the commemoration Friday of the 26th death anniversary of former senator Benigno “Ninoy” Aquino Jr. held at his monument on P. Burgos Drive and Roxas Boulevard.

“This is the least we can do to show our gratitude to President Aquino who has sacrificed a lot for the country,” Lim said.

Lim also announced that the monument to Cory, which would be built beside her husband’s, would be unveiled on Jan. 25, 2010, to coincide with her birthday.

The hospital, situated at the site where the Trinity Hospital used to stand, will also be inaugurated on the same date.

Lim added that the renaming of Lambingan Bridge was inspired by the undying love that the Aquino couple had for each other.

The mayor earlier named a public high school and a playground, both in Baseco, Tondo, after the late President.

During the program, Lim extolled Ninoy’s martyrdom even at the expense of his own happiness and family.

He also called on the younger generations to emulate the late opposition leader’s patriotism and the kind of dedication that he and his wife exhibited in public service.

This will be a great honor to Cory Aquino and her family, I think naming a hospital is very appropriate at this time.

nagkatotoo yata yun sabi ni QUezon nah I'd rather have the Philippines run like hell by Filipinos, than run like heaven by Americans."

Hot money flowing back to RP - BSP official (http://www.philstar.com/Article.aspx?articleId=498713&publicationSubCategoryId=66)
By Iris C. Gonzales (The Philippine Star (http://www.philstar.com/Article.aspx?articleId=498713&publicationSubCategoryId=66)) Updated August 24, 2009 12:00 AM

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) expects hot money flows or investments in foreign stocks, government securities and peso-denominated assets to continue pouring into the Philippines on the back of improving investor confidence.

BSP Deputy Governor Diwa Guinigundo said risk aversion on the part of investors has tapered off because of improving global economic conditions.

“Financial markets have stabilized and risk appetite has increased. Investors are willing to go to emerging economies and the Philippines, given its sound macro fundamentals will naturally attract capital flows,” Guinigundo said.

Latest data from the BSP showed that foreign portfolio investments improved to a net inflow of $65.87 million in July or better than the previous month’s net inflow of $77 million.

Hot money recorded in July were also better than the net inflow of $7.38 million recorded in the same month last year, data from the BSP also showed.

The July foreign portfolio investments brought the year-to-date figure to a net inflow of $265 million which the central bank described as a marked improvement from the $577-million net outflow recorded in the same period last year.

The BSP attributed the rosy figures to improving investor confidence, brought about by positive reports on the country’s credit rating.

Last July, Moody’s Investors Service has raised its sovereign rating for the Philippines to Ba3 from B1 previously, noting the country’s high degree of resiliency against external shocks. A Ba3 rating is three notches below investment grade while a B1 rating is four notches below investment grade. The outlook on the ratings is positive.

“Investor confidence was boosted by positive reports of the country’s credit rating. Global consumer confidence rose following the previous quarter’s perception that the recession has bottomed out, and as consumers started to embrace the idea of a recovery,” the BSP has said.

Guinigundo said that these developments indicate that investors would again be parking their funds in emerging markets like the Philippines.

Economic growth seen better in second quarter (http://www.manilatimes.net/national/2009/aug/24/yehey/business/20090824bus9.html)
Manila Times (http://www.manilatimes.net/national/2009/aug/24/yehey/business/20090824bus9.html)


THE Philippine economy is likely to have grown fater in the second quarter of the year due to the improvement in remittances and capital inflows, a government official said.

The country’s gross domestic product (GDP), which is the amount of final goods and services produced in the country, may have grown by at least 1 percent in the second quarter from 0.4 percent in the previous three-month period.

The up tick may have been due to a pick up in consumption, fueled mainly by continued remittance flows.

Remittances, which contribute 10 percent of GDP, grew by 2.9 percent to $1.5 billion in the first half of the year due to the continued deployment of sea- and land-based Filipino workers abroad.

Household consumption is the main driver of Philippine economic expansion.

The improvement in capital inflows also indicates better GDP growth in the second quarter, with the Bangko Sentral ng Pilipinas (BSP) reporting foreign direct investment (FDI) inflows of $1.07 billion at end-May this year, surpassing the $700 million full year target.

“Risk aversion seems to have been reduced and financial markets have stabilized though risks are still elevated. Given the generally sound macro fundamentals, the country will naturally attract capital flows. This is what we’re seeing today,” the official said.

Based on its most recent report, the BSP said foreign portfolio investment yielded a net inflow of $265 million for the first seven months, a turnaround from the $577 million net outflow recorded for the comparable period last year.

“With lower risk aversion, risk appetite has somewhat increased. Therefore, they’re willing to go into emerging markets, so they will begin to invest and the Philippines will be a good candidate for investment destination,” the official said.

The peso however is likely to appreciate as the economy recovers, thus damping remittances and exports but providing the public and private sector an opportunity to repay loans.

“The appreciation of [the] domestic currency will post some difficulty for exports and overseas Filipino worker recipients,” the official said.

At end-June this year, the peso weakened against the US dollar by 1.3 percent, with the Philippine unit closing at 48.13 against the greenback. The peso weakened due to market concerns on prospects of a wider fiscal deficit, weak economic growth, and political noise surrounding the proposal to amend the constitution.

BSP Governor Amando M. Tetangco, Jr. earlier said capital flows to emerging economies, particularly those with sound macroeconomic policy and good growth prospects, are expected to improve in the second half of the year and next year with the ongoing realignment in risk perceptions.

Capital inflows help relax the foreign exchange financing constraints of the domestic economy. Because of this, they can have a positive impact on the external accounts, contribute to liquidity expansion and help lower domestic interest rates. However, policymakers would need to be prepared to face the possibility of exchange rate appreciation and increased liquidity growth, along with associated concerns, Tetangco said.
-- Maricel E. Burgonio

nagkatotoo yata yun sabi ni QUezon nah I'd rather have the Philippines run like hell by Filipinos, than run like heaven by Americans."

@Leonell, no matter how other people dismiss or laugh off the idea that we are not really run by fellow Pinoys but by remote control by foreign interests--- still holds water.

One good example is that we cant just come up with independent economic policies that will definitely benefit us.

Even certain legislation, like the repeal of the automatic debt payment (PD 1177 appropriation law of Marcos cannot be done because of pressure coming from our lenders (foreign governments, IMF-WB).

The E.O. of Gloria regarding Buy Filipino was never implemented because of pressure coming from foreign interests.

ODA given to the Philippines is controlled by donor/lender countries. So even if Pinoy taxpayers are the ones who will pay for it, its the foreigners who will dictate as to how we will spend it. For instance, China will provide us with funds, we cant choose our own local contractor, consultant or material to stimulate local production and consumption because they will insist of using their own labor, consultant, material.

In other words, the money that they lend to us, in the end, goes back to their pocket plus we have to pay with interests.

We are helpless when we file complaints against unfair trade practices of other countries like Australia becase of pressures coming from rich countries allied with Australia.

The cheap medicine law cannot be fully implemented because of the maneuverings of multinationals and their mother country like Pfizer and GlaxoSmithKline

And many more...

Although, I admit, in the final analysis, our leaders are still the main culprit..

Canadians Buying Las Vegas Real Estate

j_wrlc0Z9JI

Canadian suckers don't see the road ahead. The Subprime crisis was only a prelude of things to come here's the danger that lies ahead ... :ohno:

US Housing Market Collapse in 2010 Will Be Worse Than 2008

kunB4SnAh4g

Buti nga!!

At kasuhan mga foreigners na nahuli na yan!

Wala na ngang makain mangingisdang Pinoy ninanakawan pa!:bash::bash:

Imbes kasi itong si kapal muks na Gloria na bumili ng jet na panglamierda niya, dapat bumili ng patrol boats para mahuli mga foreign poachers dito sa Pinas!!

Three foreign fishing vessels sink off Mahatao port in Batanes


Written by Rosenda B. Alluad / Correspondent
Sunday, 23 August 2009 22:24
Business Mirror

TUGUEGARAO CITY—Three foreign fishing vessels earlier apprehended for poaching have sunk while docked at Mahatao port during the height of Typhoon Kiko on Batanes island-province, according to a report received by the Bureau of Fisheries and Aquatic Resources (BFAR) from the Batanes provincial police.

The fishing vessels were Qng 95979 and Qng 90127, both from Vietnam, and CT3 3995, a Taiwanese vessel.

The Taiwanese vessel was apprehended on December 4, 2008, while the Vietnamese boats were apprehended on March 23 and April 3 this year, respectively.

Crew members of the three vessels, consisting of 21 Vietnamese, four Taiwanese and one Chinese, have been detained at the Philippine National Police (PNP) Provincial Detention Center in Basco, Batanes, pending resolution of their administrative and criminal cases.

The Taiwanese fishermen filed on June 4 a manifestation before the BFAR signifying their intent to surrender their fishing vessel in exchange for the termination of their administrative case.

In an order on July 6, the BFAR, through Director Atty. Malcolm Sarmiento, granted their request, citing that the “alternative mode of settlement of the case is advantageous to both parties.”

“The bureau accepted their offer with the intention to auction said vessel, proceeds of which can then add to state coffers, but the recent development has put a dent on this plan. Nonetheless, the vessel may still be salvaged to recover whatever is left on the vessel,” BFAR regional director Jovita Ayson said.

A fourth vessel, CT2 3759, also apprehended by the PNP in Batanes, caught fire for unknown reasons while docked in the same port on July 10. It has now sunk at the port.

According to BFAR RO2, its five Taiwanese/Chinese crew are now under the custody of the Bureau of Immigration, Aparri, which arrested them at Tuguegarao City airport on August 5.

The BFAR wrote Regional Committee on Illegal Entrants chairman and PNP regional director Gen. Roberto Damian, to express objection for the repatriation of the foreigners pending the resolution of their administrative and criminal cases.

“The fact that their vessel has caught fire and has sunk does not mean that they are free from any liability,” Ayson said.

Meanwhile, 12 crewmen of one of two Taiwanese fishing vessels apprehended by the BFAR and Philippine Coast Guard personnel in Cagayan waters have escaped custody during the height of Typhoon Jolina earlier this month, officials said.

Reports from the Coast Guard indicate that they saw a vessel, named Tz Fu Tien with side marking BJ 4771, escape off the Cagayan waters, but they cannot do anything since they were onboard the other boat.

The vessel which fled was manned by two Taiwanese officers and 10 Indonesian crew members.

The RCIE members have yet to conduct investigation on the matter.

Due to the incident, the BFAR has filed a manifestation before the Assistant Provincial Prosecutor’s Office seeking an order for the transfer of the crew of the remaining vessel, named Ching Hong Cherng CT4–2006, to the provincial jail in Aparri, to prevent similar incident.

The Prosecutor’s Office has approved the request, and the respondents are now detained at the provincial jail, according to a BFAR official.

The Prosecutor’s Office in Aparri has dismissed the complaint against BJ 4771 even before the escape incident, citing insufficient evidence. However, the BFAR has filed a motion for reconsideration, debunking findings of the prosecutor.

“We hope that the case will still be reopened to enable us to finally have a jurisprudential case on poaching,” Ayson said.

The flight of apprehended foreign fishing vessels and crew has been a perennial problem for fishery law-enforcement authorities in Cagayan Valley.

“It is sad to note but member-agencies of the RCIE need to intensify their cooperation so that escapes like this will be prevented and efforts of apprehending authorities will not be put to waste” Ayson said.

^^

At sana maubos na kayo!:rant:

Sinisira niyo ang karagatan!:rant:

_________________________________


mabuti ba talaga ang low inflation, kasi pagkakaalam ko.... pag tumataas ibig sabihin mataas ang demand at mas aktibo ang ekonomiya?

mabuti ba talaga ang low inflation, kasi pagkakaalam ko.... pag tumataas ibig sabihin mataas ang demand at mas aktibo ang ekonomiya?

Maganda mababa kung maganda ekonomiya. Problema kaya mababa inflation kasi una, anu pa itatas e mataas na.Wala namang nabili (consumption is anemic). Ikalawa, buti low inflation lang kasi pag deflation talagang napakasama ng lagay ng ekonomiya! (equilibrium price tends to go down with poor demand...)

Ungok kasi pamahalaang ito! Hay, ang tagal ng eleksyon! Gusto ko ng maalis sa puwesto mga inutil ng administrsyong Gloria!:bash::bash::bash:

Ungok kasi pamahalaang ito! Hay, ang tagal ng eleksyon! Gusto ko ng maalis sa puwesto mga inutil ng administrsyong Gloria!:bash::bash::bash:

At pa'no kung di na bumaba? Kapit-tuko nga eh!

We need a very good economist who is also very good in deeds!

At pa'no kung di na bumaba? Kapit-tuko nga eh!

We need a very good economist who is also very good in deeds!

Very right!:)

Propesyonal pa naman tong si Arroyo pero di parin bumababa mga bilihin..................... import tayo ng import..........

Parang mas mabuti pa sa kanya si Ramos, kahit Militar lang ang alam dahil nga Heneral............... maganda parin ang ekonomiya noon........ si Gloria nga na larangan pa niya ang ekonomiya............. hahayz Gloria..........:hammer::bash:

We are helpless when we file complaints against unfair trade practices of other countries like Australia because of pressures coming from rich countries allied with Australia (especially US and UK).




Manila expected to lose imported liquor tax case

08/24/2009 | 06:27 PM

The Philippines is expected to lose a case filed by the European Union (EU) over Manila’s alleged discriminatory taxation on imported liquor, officials said on Monday.

Similar disputes submitted by South Korea, Japan, and Chile at the World Trade Organization (WTO) against the EU have lost, the Trade Department’s assistant secretary Jose Antonio Buencamino said.

As a result, the Philippines may only end up spending a lot of money only to lose in the end, the Finance Department’s fiscal planning director Teresa Habitan said.

Tokyo, Seoul, and Santiago launched a strong and even a well-funded counter case at the global trade body but later lost, Habitan said, adding that the Department of Finance does not have the budget for such expenses.

Trade Undersecretary Thomas Aquino has informed the House ways and means committee that the case could involve millions in litigation costs since the government will have to hire international trade lawyers who will be paid in dollars or euros.

However, the government may be put in a bind since the legal costs are excluded from the country’s national budget, he said.

“But they [Congress, Department of Finance] know somebody has to pay," Aquino said in an interview.

Habitan said the solution involves changing the current arrangement to a single uniform excise tax system for “sin products" through legislation.

Congress should already enact the long-sought changes to the sin tax law this year to keep the pressure off from the WTO and the EU.

In the meantime, local distillers have sought government approval to allot funds for the trade dispute’s litigation costs.

The government should shoulder the cost of prolonged litigation to ensure that the case is won, Olivia Lim-Aw, a spokesperson of Philippine distillers said.

“Earmarking a little of the P4 billion in our excise payments would just be fair," she said. “It’s the Republic of the Philippines being sued not us. We must allocate funds for this purpose."

This sentiment was shared by House ways and means chair Rep. Exequiel Javier who said that the DOF should take care of the legal expense.

In an earlier hearing, Buencamino warned that the case filed at the WTO may drag on for 15 months and that the EU may cut its purchase of Philippine-made goods such as canned tuna and electronics products. [See related story here.]

In 2008, some $8.5 billion worth of locally-made goods were sold to the EU. Of this figure, $5.85 billion were electronics products while $163.25 were canned tuna exports. - GMANews.TV



Well, life is unfair. Rich vs poor. Asians vs. Europeans in European controlled WTO?Hands down. EU wins.

nagkatotoo yata yun sabi ni QUezon nah I'd rather have the Philippines run like hell by Filipinos, than run like heaven by Americans."

The curse of president quezon is way worse than king tut of Egypt. :lol:

^^:lol:

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSBKK39489420090825?rpc=401&

Thai CP Foods in $45 mln Philippine investment

BANGKOK, Aug 25 (Reuters) - Charoen Pokphand Foods PCL CPF.BK, Thailand's biggest chicken exporter, said on Tuesday it planned to invest 1.52 billion baht ($45 million) in the Philippines, mainly in the aquaculture business.

Overseas expansion is part of the company's strategy to expand its revenue. Its net profit for the second quarter more than tripled, due in part to growth overseas.

The aquaculture business, after an investment of 1.4 billion baht through a wholly owned subsidiary in the Philippines, was scheduled to start in 2010. The remaining investment was in pig farming, it said in a statement.

The company was on track for higher earnings for the second half of this year, it said. It aims for a 2009 net profit of 8 billion baht, more than twice that of 2008.

At 0741 GMT, CP Foods shares were up 1.8 percent at 5.75 baht while the main Thai stock index .SETI was up 0.31 percent. ($1=34.02 Baht) (Reporting by Viparat Jantraprap; Editing by Alan Raybould)

Tuesday, August 25, 2009

Philip Morris expands
Subic lease arrangement
http://www.manilatimes.net/national/2009/aug/25/yehey/business/20090825bus8.html

PHILIP Morris Philippines Manufacturing Inc. (PMPMI) has increased the total land area it will lease from the Subic Bay Metropolitan Authority (SBMA) as the company puts up its regional tobacco leaf warehouse at the freeport zone, SBMA said in a statement on Monday.

Armand Arreza, SBMA administrator, said he and Christopher Nelson, PMPMI managing director, last week signed a 50-year lease agreement through which the company will lease an additional 49,279 square meters of land at the freeport.

SBMA said the additional property will be the site of the second phase of PMPMI’s upcoming P1-billion regional tobacco leaf warehouse. The company currently operates a 9,600-square-meter refurbished warehouse in Subic, which it has been leasing since beginning operations there in 2007.

SBMA said the new warehouse will have a capacity of about 24,000 metric tons of tobacco leaves. The current warehouse only holds 6,100 metric tons of tobacco.

“The new warehouse will boast of features like humidity control, fire suppression equipment and air conditioning, to handle the imported tobacco leaves from foreign suppliers, which will then be shipped and processed in cigarette manufacturing facilities in the Philippines, Malaysia and Indonesia,” Nelson said.

“[The 50-year lease agreement with PMPMI] strengthens Subic Bay Freeport’s competitive posture as Southeast Asia’s logistics hub,” Arreza said.
-- Ben Arnold O de Vera

MPIC’s entry into North Harbor hailed

By Doris Dumlao
Philippine Daily Inquirer
First Posted 02:49:00 08/25/2009

MANILA, Philippines—The business community Monday hailed the entry of Metro Pacific Investments Corp. (MPIC) into the business of operating the Manila North Harbor Port, saying this will improve service and help put pressure on the neighboring international container terminal and South Harbor to lower their rates.

MPIC is led by Philippine Long Distance Telephone Co. chief Manuel V. Pangilinan.

“It’s better for the country [to have] more competition. For those shipping cargos, it will impact on the rates and benefit stakeholders. It’s better if there are more vendors on the street, and if there are more service providers,” said Astro del Castillo, managing director at First Grade Holdings.

The consortium of MPIC, the local infrastructure holding company of First Pacific Co. Ltd. of Hong Kong, and Harbour Centre of the Romero family announced on Sunday that the joint venture had passed the two-year rigorous prequalification and bid process conducted by the Philippine Ports Authority.

The consortium submitted a P14.5-billion investment proposal for the modernization of the North Harbor port in Tondo, Manila.

In a disclosure to the Philippine Stock Exchange Monday, MPIC announced that after a 15-day post-evaluation process, the PPA was expected to give a notice of award to the consortium, the lone group that qualified to bid for the 25-year contract to modernize and operate the port.

Jose Mari Lacson, head of research at Campos, Lanuza & Co., said the immediate impact would likely be on volume rather than pricing, as it remained to be seen whether Harbour Centre would compete head-on with the container business of the older players.

Harbour Centre CEO Michael Romero said the project would improve the image of Manila and the Philippines as the project would raise more than P6.8 billion in revenues for the PPA over the next 25 years and reduce port rates at an average of 10-15 percent.
Boosting competition

The entry of the Pangilinan group in the port business is expected to boost competition in this sector and may put pressure on rates charged by long-established players International Container Terminal Services Inc. (ICTSI) and Asian Terminals Inc. (ATI).

ICTSI is led by businessman Enrique Razon, while ATI is led by Australia-based P&O Ports and the group of Eusebio Tanco.

Del Castillo said there was a lot of interest in the port business because of the good prospects once the domestic and global economy turns around.

On Monday, for instance, the stock market posted its best performance this year as investors cheered comments from the US Federal Reserve chief that the US recession may be ending.

Access to NLEx

Lacson said the entry of MPIC in port operations was in line with its infrastructure business, as Manila’s North Harbor could be the only port that would have access to the North Luzon Expressway (NLEx).

A unit of MPIC holds the concession to operate NLEx. Recently, it unveiled plans to put up new toll roads linking the expressway to Letre, Malabon, a gateway to the port area.

Lacson said it could be cheaper for goods landing in Manila going all the way to Clark using the MPIC’s network of roads.

“Port operations are still regulated but I guess you could say that it’s being liberalized now. There’s more competition here in terms of having a third player,” he said.

With parent First Pacific coming from Hong Kong where the big conglomerates are into port businesses, MPIC may start with “something small” and work its way from there, according to Lacson.

Long overdue

Romero said the North Harbor modernization plan had been long overdue.

He said about 1,000 laborers at the harbor would be absorbed by the consortium and the collective bargaining agreement of the four labor unions would be upheld.

Some 5,000 more jobs may be generated due to the construction and development of North Harbor.

The consortium is expected to invest in Information Technology equipment and systems to ensure efficient and accurate data transfer. Investment cost is placed at almost P1 billion for the IT systems.

The consortium is also committed to invest heavily in equipment, such as shore and gantry cranes, a fleet of chassis trucks and forklifts.

Ro-Ro container, vessels

One terminal of the port will provide roll-on, roll-off (Ro-Ro) container and passenger vessels.

Another will offer container and passenger vessel services while a terminal will be used for conventional, non-containerized, bulk or break-bulk vessels and passenger ships.

Diversification

The venture marks a diversification by MPIC—which is now into toll roads, water distribution and hospital businesses—into a new business line.

The involvement of Reghis Romero II in the project has had its share of criticisms over the years.

Former Socioeconomic Planning Secretary Romulo Neri, now president of the Social Security System, had earned the ire of ICTSI chair and president Enrique Razon for his advocacy of liberalizing Manila’s port services.

Manila Times

Wednesday, August 26, 2009


RP debt to swell next year

By Lailany B. Gomez, Reporter

THE Philippines’ debt stock would swell next year as the government may have to borrow more from domestic lenders to prop up a weakening economy, data from the Department of Finance showed.:ohno:

The government’s debt stock may climb 5.45 percent to P4.733 trillion from the expected total debts of P4.489 trillion by the end of this year.

“It’s because we are pump-priming the economy. But it won’t be forever. It’s not a prudent policy,” Finance Undersecretary Gil Beltran said.

Of the total debt for next year, about P2.78 trillion will be sourced from domestic creditors and P1.96 trillion from foreign lenders.

Next year’s total debt will be equal to 56.9 percent of the country’s gross domestic product (GDP), down from 57.6 percent this year, but still the highest among Asian countries.:bash::bash::bash:

An indicator of economic performance, GDP is the amount of goods and services produced in a country.

The debt-to-GDP ratio is a key measure of how manageable is a country’s obligation relative to its annual economic output, with a declining ratio viewed favorable as this means the country would allot a smaller amount to pay off its debt.

Pundits had warned that lower economic growth, coupled with a higher budget deficit and rising borrowing costs, could accelerate the vulnerability of countries like the Philippines to debt stress.

They said the country’s debt-to-GDP ratio may rise by 15 percent by 2015 in a scenario of a higher primary deficit to GDP. This may climb by 5.1 percent amid lower nominal GDP growth rate; by 3 percent on higher nominal interest rates on public debt; and by 12.7 percent on a combination of the three shocks.

The government’s debt went up 8.9 percent to P4.229 trillion in the first quarter this year from P3.881 trillion in 2008.

Finance Secretary Margarito Teves earlier said that national government’s debt-to-GDP ratio in 2001, when President Gloria Arroyo took over, was 65.7 percent to 78.2 percent in 2004 and then started to go down to 56.3 percent in 2008.

The Development and Budget Coordinating Committee (DBCC), meanwhile, had also recommended a P1.541-trillion budget for the national government in 2010 as the government prepares for another economic resiliency package worth at least P200 billion.

This is 8 percent higher than this year’s P1.426-trillion appropriation.

The latest assumptions have led to a revised budget deficit of P233.4 billion from P208.4 billion.

Economic managers earlier said there is a need to widen the deficit so the government could spend more next year and help the economy prepare for “global recovery.”

Budget Secretary Rolando Andaya had said the proposed 2010 budget is in line with the goal of reducing the fiscal deficit to 2.8 percent of GDP from an estimated 3.2 percent this year.

In June, the DBCC agreed to raise the 2009 budget deficit to P250 billion, or 3.2 percent of GDP from P199.2 billion, or 2.5 percent of GDP, which was approved in April.

The DBCC also scaled down the projected GDP growth for 2009 to a range of 0.8 percent to 1.8 percent from the previous range of 3.1 percent to 4.1 percent. :ohno::ohno::bash::bash:

Wow grabe na to! :ohno: :ohno: :ohno:

Where did RP debt go? (http://www.abs-cbnnews.com/business/08/22/09/where-did-rp-debt-go)

MANILA - All borrowings under President Arroyo's term--that racked up the country's outstanding debt to a whopping P4.2 trillion as of 2008 from only P2.2 trillion in 2000--were necessary, her economic managers argue, amid accusations the President was responsible for the country's deepening financial woes.


__________________________



Finance trains sights on fiscal gap
Business World
http://www.bworldonline.com/BW082609/content.php?id=058

THE GOVERNMENT can allow the budget deficit to breach 3% of gross domestic product (GDP) for no more than two consecutive years, since going beyond that point could make debt unmanageable and interest rates prohibitive to business, a Finance official said.

Finance Undersecretary Gil S. Beltran said in an interview yesterday that while deficit spending can prod growth during a crisis, the government should also consider the costs it will have to bear down the road due to such policy.

"We can allow the deficit to exceed 3% of the GDP...for two years only. That is the general rule...We are pump-priming the economy, but it won’t be forever. It is not a prudent fiscal policy. You will have problems," Mr. Beltran said.

"There are costs involved when you go beyond what is necessary. The private sector will be affected by the high interest rates. The government will incur a high debt."

Expectations of lackluster revenues on account of a slower business activity has forced the government to widen this year’s programmed deficit to P250 billion, or 3.2% of the GDP, from P199.2 billion previously.

Next year’s budget shortfall, however, is expected to improve to P233.4 billion or 2.8% of the GDP as the government expects revenues to increase amid a global recovery.

Even so, Mr. Beltran said they will work hard to keep the 2010 shortfall at 2.8% of the GDP, noting that next year’s targets had been adjusted just recently.

"It is not right to think of revising something that has been revised recently. We avoid those things. We made the adjustments early this month," he said.

Sought for comment, University of Asia and the Pacific economist Victor A. Abola agreed that the government should limit the fiscal gap since a high debt would eat up funds that can be used for vital projects.

"I agree with him [Mr. Beltran]. We still have a high debt ratio. If the debt ratio is too high, it will become difficult to bring it back again [to its previous level]," he said in a telephone interview.

"That [higher debt] means more money [of the government] will go to interest payments instead of social services and infrastructure."

For his part, Ateneo de Manila University economist Leandro A. Lanzona said the amount of deficit spending should depend on economic performance.

"We are in a global recession right now. While we are practicing discipline, we may also reduce the growth of the economy in the process. Whatever savings you will have will go to waste because the economy will fall into a recession," he said.

"What is crucial is to stimulate the economy. If the economy does not improve, then it is okay to spend."

Economic mangers decided to raise next year’s deficit to P233.4 billion from the original target of P208.4 billion, citing the need to raise expenditures to sustain the government’s pump-priming efforts.

The expenditure program for 2010 had been raised by P35 billion to P1.569 trillion from the previous program of P1.534 trillion.

Next year’s revenue target, on the other hand, had been adjusted to P1.335 trillion, from P1.325 trillion previously.

Mr. Beltran said the higher deficit will result in a debt-to-GDP ratio of 56.7% next year, slightly higher than the previous target of 56.3%.

This would hike the 2010 nominal debt forecast to P4.723 trillion from PP4.698 trillion.

The Finance department had previously claimed that the debt-to-GDP ratio has improved in the recent years due to fiscal measures like the Reformed Value Added Tax Law of 2005 and higher taxes on cigarette and tobacco.

The debt-to-GDP ratio was trimmed to 71.4% in 2005 from 78.2% in 2004. The ratio was at 64.2% in 2006, 55.8% in 2007, and 56.3% in 2008. The government expects this year’s outstanding debt to reach P4.489 trillion or 57.6% of the GDP due to higher expenditures.

Latest data from the Treasury Bureau showed that the government’s outstanding debt as of May this year hit P4.22 trillion, lower than the P4.26 trillion incurred in April, but still more than the P3.93 trillion posted in May 2008.

ADB provides RP with $.5-B relief loan
Business Mirror
Written by Jun Vallecera / Reporter
Tuesday, 25 August 2009
http://www.businessmirror.com.ph/home/top-news.html

THE Asian Development Bank (ADB) has provided the Philippines with temporary relief from persistent revenue downturns already averaging more than 37 percent in the first six months alone.

The multilateral lender based in Manila announced on Tuesday the approval of a $500-million loan designed to support the government’s inability to generate revenues on target and keep the year’s budget deficit from falling off a cliff.

The ADB said in a statement the five-year money was the first such loan approved under the bank’s $3-billion Countercyclical Support Facility (CSF) window.

The CSF was created only in June to help member-countries weather the fiscal impact of the global financial crisis that, in the case of the Philippines, was seen to force its economy to go into recession.

This year the ADB projected negative growth for the Philippines as deep as 1.5 percent of local output, or the gross domestic product.

With the loan, Finance Secretary Margarito Teves has some P24 billion worth of loan proceeds that he can use to spend his way out of a feared recession.

Teves and Budget Secretary Rolando Andaya are spearheading government efforts at labor-intensive infrastructure building and ramped-up conditional cash-transfer programs to inject as much liquidity into the system and fire up an economy reluctant to spend in the face of an economic downturn.

Accessing the loan implies the government’s own recognition that its finances are being hobbled by persistent revenue issues even as it continues to adhere to sound macroeconomic policies and has put in place so-called countercyclical measures.

“This loan is critical for the Philippine government to stimulate the economic recovery, protect its social spending and poverty-reduction programs, and continue with its longer-term development objectives in 2009,” Arjun Thapan, director general of the ADB’s Southeast Asia Department, said.

“It is designed to maintain momentum of the country’s key development efforts by expanding the fiscal space at a challenging time for the global economy,” he quickly added.

The loan will have a five-year repayment term, with a three-year grace period, and will cost around 200 basis points over the ADB’s financing cost, pricing that reflects spreads before the onset of the global economic crisis.


____________________


Govt hikes borrowing for continued pump priming
GMA News
08/25/2009
http://www.gmanews.tv/story/170660/govt-hikes-borrowing-for-continued-pump-priming

The Philippine government will increase borrowing next year to ensure continued spending that will benefit the economy, a finance official said.

Instead of borrowing P4.489 trillion as previously programmed, the government plans to increase its debts by P244 billion more to P4.733 trillion come 2010.

Next year’s programmed foreign debt is also P18 billion higher than this year’s debt goals of P2.815 trillion while local obligations for the same period represents a P57-billion jump from this year's P2.031 trillion.

The increase in next year’s debt stock is the result of the government’s decision to retain a higher budget deficit ceiling and to continue pump priming activities, Department of Finance undersecretary Gil S. Betran said.

Originally, next year’s debt target was set at P4.698 trillion. However, it was later revised upwards after economic managers agreed to incur a higher deficit for 2010 to P233.4 billion from P208 billion.

“It's expected to increase because we are pump priming the economy and because of higher deficit, but it's not forever," Beltran added.

Of the government’s total debt stock for next year, P2.088 trillion will come from local debt sources while P2.833 will come from abroad.

The government can tolerate two straight years of continued higher deficits and pump priming, Beltran added.

For 2010, the government is expected to post a fiscal shortfall of P233.4 billion, or 2.8 percent of the Philippines’ gross domestic product (GDP). This is lower than this year’s programmed funding gap of P250 billion, comprising 3.2 percent of GDP.

As of May, the government’s debt stock has already reached P4.220 trillion, near its programmed obligations of P4.489 trillion.

Earlier, Finance Secretary Margarito B. Teves said that the Arroyo administration has borrowed P4.2 trillion in the last eight and a half years, making it the biggest “debt maker."

As a result, the Arroyo government has incurred more financial obligations than the combined debt of the late former president Corazon Aquino, Joseph Estrada, and Fidel Ramos.

However, Teves said that only P1.5 trillion can be attributed to the Arroyo administration since the rest were used to settle principal and interest payments incurred by previous governments.

RP imports contract 31.12% in H1
Business Mirror
Written by Cai U. Ordinario / Reporter
Tuesday, 25 August 2009 22:54
http://www.businessmirror.com.ph/home/top-news/15131-imports-contract-3112-in-h1.html

THE country’s imports contracted by 31.12 percent in the first six months of 2009, the latest external trade performance report released by the National Statistics Office (NSO) on Tuesday shows.

The NSO reported that imports contracted to $20.36 billion from January to June 2009 from $29.57 billion in the same period last year. With this, total external trade in goods for January to June 2009 reached $37.586 billion, exhibiting a 31.9-percent decline from the $55.188 billion recorded during the same period in 2008.

The balance of trade in goods for the Philippines in the first six months registered a $3.143-billion deficit from a $3.943-billion deficit in the same six-month period last year.

In June the country’s total merchandise imports posted a contraction of 22.8 percent to $4.108 billion, from $5.322 billion in June 2008. The total merchandise trade for June 2009 contracted by 23.7 percent to $7.514 billion, from $9.849 billion in June 2008.

However, on a month-on-month basis, imports appreciated by 13.6 percent from $3.617 billion recorded in May 2009.

“This is the second month-on-month positive growth of merchandise imports, indicating possible recovery from the trade slump,” said Acting Director General Augusto Santos of the National Economic and Development Authority (Neda). “All major commodity groups registered positive month-on-month expansion.”

The NSO said aggregate payment for the country’s top 10 imports for June 2009 reached $3.259 billion, or 79.4 percent of the total import bill.

Accounting for 33.8 percent of the aggregate import bill, payments for electronic products, including consigned and direct importation using the expanded coverage of electronic products in June 2009, amounted to $1.390 billion.

This represented a contraction of 20.3 percent over last year’s figure of $1.743 billion. This was due to the 21.2-percent decrease in components/devices or semiconductors, which comprised the biggest share of 25.7 percent among the major groups of electronic products. However, electronic products rose by 6.8 percent month-on-month from $1.301 billion in May 2009.

Imports of mineral fuels, lubricants and related materials, comprising 20.8 percent of the total imports in June 2009, ranked second, valued at $855.16 million over the previous year’s level of $1.233 billion.

“Materials used for the manufacture of electrical equipment grew by 19.1 percent following the partial recovery of the demand for electronic products in the world market,” the Neda said in a statement.

The NSO said around 36.3 percent of total import payments in June 2009 for raw materials and intermediate goods amounted to $1.493 billion, or a 24.8-percent decline over last year’s figure of $1.985 billion. Compared with the previous month, purchases increased by 3.8 percent from $1.438 billion.

Semiprocessed raw materials accounted for the biggest share of 31.1 percent, valued at $1.279 billion. This, however, represented a contraction of 30.5 percent from $1.838 billion a year ago.

Capital goods, contributing 27.2 percent to the total imports, plummeted by 15.1 percent year-on-year to $1.117 billion from $1.315 billion. Similarly, mineral fuels, lubricants and related materials, with 20.8-percent share, declined by 30.6 percent to $855.16 million from $1.233 billion in June 2008.

The Neda said, however, that imports of major commodity groups rose on a month-on-month basis, led by mineral fuels, lubricants and related materials at 69.3 percent.

Other commodity groups also posted gains, such as capital goods at 6.1 percent, raw materials and intermediate goods at 3.8 percent, and consumer goods at 1 percent.

“All [our] Asian neighbors registered positive month-on-month import growths in June 2009. The significant gains broadly reflect the impressive rebound of emerging Asian economies in the second quarter of 2009,” Santos said.

Payments for imports from the top 10 sources for June 2009 amounted to $3.056 billion, or 74.4 percent of the total.

Japan, including Okinawa, was the country’s biggest source of imports for June 2009 with 11.9-percent share and recorded payments worth $486.92 million, a decline of 21.2 percent year-on-year from $617.57 million.

Revenue from the country’s exports to Japan, on the other hand, reached $578.64 million, generating a total trade value of $1.066 billion and a $91.73-million trade surplus for the Philippines.

The United States, which includes Alaska and Hawaii, composed 11.2-percent share of the total import bill, amounting to $458 million, and followed as the second-biggest source of imports for June 2009. This value is lower by 24 percent from $602.58 million in June 2008.

Exports to the US amounted to $607.96 million, yielding a two-way trade value of $1.066 billion and a trade surplus for the Philippines of $149.96 million.

China, meanwhile, accounted for 7.8-percent share of the total import bill in June 2009. This represented a contraction of 22.5 percent to $319.74 million from $412.55 million during the same month in 2008.

Exports to China amounted to $274.31 million, resulting to a total trade value of $594.06 million and a trade deficit of $45.43 million.


_________________


Factory output contraction eases to 10.8% in June
Business World
http://www.bworldonline.com/BW082609/content.php?id=004

MANUFACTURERS slashed production for the eighth month in a row last June, but at a slower pace, as lingering global economic uncertainties continued to dampen consumer appetite and investor confidence, the government yesterday reported.

Output of the country’s 20 major manufacturing sectors, as measured by the volume of production index, fell by 10.8% year-on-year in June, according to the National Statistics Office (NSO).

June’s manufacturing data was softer than May’s 12.1% slump, but was a reversal from the 3% growth recorded during the same month last year.

Economists said shrinking markets as a result of the US-led global downturn weighed on the manufacturing sector, whose output has been contracting since November last year.

"The continuous cutback in manufacturing output is a response to the lukewarm market demand conditions. Consumers are deciding resolutely to keep their spending in check until economic and business conditions improve," University of Asia & the Pacific senior economist Cid L. Terosa said in an e-mail.

The NSO said 12 out of the 20 sectors surveyed posted double-digit declines on a yearly basis, led by leather products (-47.3%), footwear and wearing apparel (-32.8%), beverages (-32.3%), petroleum products (-28.6%), and paper products (-24.9%).

Electrical machinery, meanwhile, led the gainers with 14.2% annual growth.

"More telling is the demand for furniture and fixtures. It has declined significantly since they have been very much affected by the collapse of the housing industry particularly in the US," economist Rolando T. Dy said.

Orders will continue to trickle in as consumer appetite remains sour, while investors will hold on to cash until an economic recovery is certain, said Donald G. Dee, chairman emeritus of the Philippine Chamber of Commerce and Industry.

"People are spending less because there is low purchasing power. Even amid rising remittance inflows, overseas Filipino workers (OFWs) are saving more than spending due to the uncertainties," Mr. Dy said.

Green shoots of a recovery have yet to sprout, economists said.

After destroying local industries and agriculture...shipping naman!

Grabe talaga!

The government should protect the local shipping industry!!

Pimentel bucks proposal for foreign vessels to operate local routes

Economy
Written by Claudette Mocon / Correspondent
Sunday, 23 August 2009 21:08
Business Mirror


SENATE Minority Leader Aquilino Pimentel Jr. called on the government to protect local vessels from abusive foreign ship owners who seek exclusion in the cabotage—the transport of goods and people between two points within the Philippine territorial waters.

In a forum held in Greenhills, San Juan City, on Saturday, Pimentel asked the Arroyo government to ensure the safety and protection of local shipping firms, as he called on agencies, including the Department of Transportation and Communications (DOTC) and Maritime Industry Authority (Marina), to investigate the reported lobbying of foreign vessels to be excluded in the cabotage.

“Let us not give up that right because some foreign shipping firms want it,” Pimentel said. He added that the government should try and determine first the effects that it will cause to the local industry if the foreign firms are allowed to be excluded.

“We should know what advantages it will redound to our country,” he added. Cabotage is trade or navigation in coastal waters, or the exclusive right of a country to operate the air traffic within its territory.

Commonly used as part of the term “cabotage rights,” cabotage is the right of a company from one country to trade in another country.

Reports said foreign vessel owners are asking the government for an exemption in the cabotage, to allow them to not only sail from one docking point, but to allow them to sail to various docking points all over the Philippines, thus rivaling the existing local players.

“It could kill the local industry eventually,” Pimentel added.

Earlier, nongovernment organization National Association of Independent Travel Agencies (Naitas) called for an investigation by the Senate and the DOTC, after receiving such reports.

Robert Lim Joseph, chairman emeritus of the Naitas, warned that the Philippine shipping industry is in grave peril because of a hidden danger that lurks in the guise of fair trade and enlightened consumerism.

Joseph explained that foreign vessels are promising lower fares and freights than Philippine ships, but this is because of tax exemptions they seek to be made available for their operation here.

“Even if they invoke fair trade, this is not a level playing field because they [the foreign interests] want tax exemptions which will not be given Philippine shipping companies,” he said. “This is unfair trade!”

He said foreign-owned vessels are not only asking the Philippine government to be able to operate in the country like domestic shipping companies but also to give them tax exemptions, something which are not enjoyed by local bottoms despite problems like high oil costs.:bash:

“This means the death of the local shipping industry,” warned Joseph, who described himself as “provocateur” of nation building for true and real fair trade.

“By any definition, it means economic sabotage through cabotage,” he added.:bash::bash:

During the forum, Joseph gave a short presentation as he showed how foreign ships can pick up cargoes from, say, Davao, to Europe and other countries like Singapore.:bash::bash::bash:

The risk of a double-dip recession is rising
By Nouriel Roubini
Published: August 23 2009 18:55 | Last updated: August 23 2009 18:55

T he global economy is starting to bottom out from the worst recession and financial crisis since the Great Depression. In the fourth quarter of 2008 and first quarter of 2009 the rate at which most advanced economies were contracting was similar to the gross domestic product free-fall in the early stage of the Depression. Then, late last year, policymakers who had been behind the curve finally started to use most of the weapons in their arsenal.

That effort worked and the free-fall of economic activity eased. There are three open questions now on the outlook. When will the global recession be over? What will be the shape of the economic recovery? Are there risks of a relapse?

On the first question it looks like the global economy will bottom out in the second half of 2009. In many advanced economies (the US, UK, Spain, Italy and other eurozone members) and some emerging market economies (mostly in Europe) the recession will not be formally over before the end of the year, as green shoots are still mixed with weeds. In some other advanced economies (Australia, Germany, France and Japan) and most emerging markets (China, India, Brazil and other parts of Asia and Latin America) the recovery has already started.

On the second issue the debate is between those – most of the economic consensus – who expect a V-shaped recovery with a rapid return to growth and those – like myself – who believe it will be U-shaped, anaemic and below trend for at least a couple of years, after a couple of quarters of rapid growth driven by the restocking of inventories and a recovery of production from near Depression levels.

There are several arguments for a weak U-shaped recovery. Employment is still falling sharply in the US and elsewhere – in advanced economies, unemployment will be above 10 per cent by 2010. This is bad news for demand and bank losses, but also for workers’ skills, a key factor behind long-term labour productivity growth.

Second, this is a crisis of solvency, not just liquidity, but true deleveraging has not begun yet because the losses of financial institutions have been socialised and put on government balance sheets. This limits the ability of banks to lend, households to spend and companies to invest.

Third, in countries running current account deficits, consumers need to cut spending and save much more, yet debt-burdened consumers face a wealth shock from falling home prices and stock markets and shrinking incomes and employment.

Fourth, the financial system – despite the policy support – is still severely damaged. Most of the shadow banking system has disappeared, and traditional banks are saddled with trillions of dollars in expected losses on loans and securities while still being seriously undercapitalised.

Fifth, weak profitability – owing to high debts and default risks, low growth and persistent deflationary pressures on corporate margins – will constrain companies’ willingness to produce, hire workers and invest.

Sixth, the releveraging of the public sector through its build-up of large fiscal deficits risks crowding out a recovery in private sector spending. The effects of the policy stimulus, moreover, will fizzle out by early next year, requiring greater private demand to support continued growth.

Seventh, the reduction of global imbalances implies that the current account deficits of profligate economies, such as the US, will narrow the surpluses of countries that over-save (China and other emerging markets, Germany and Japan). But if domestic demand does not grow fast enough in surplus countries, this will lead to a weaker recovery in global growth.

There are also now two reasons why there is a rising risk of a double-dip W-shaped recession. For a start, there are risks associated with exit strategies from the massive monetary and fiscal easing: policymakers are damned if they do and damned if they don’t. If they take large fiscal deficits seriously and raise taxes, cut spending and mop up excess liquidity soon, they would undermine recovery and tip the economy back into stag-deflation (recession and deflation).

But if they maintain large budget deficits, bond market vigilantes will punish policymakers. Then, inflationary expectations will increase, long-term government bond yields would rise and borrowing rates will go up sharply, leading to stagflation.

Another reason to fear a double-dip recession is that oil, energy and food prices are now rising faster than economic fundamentals warrant, and could be driven higher by excessive liquidity chasing assets and by speculative demand. Last year, oil at $145 a barrel was a tipping point for the global economy, as it created negative terms of trade and a disposable income shock for oil importing economies. The global economy could not withstand another contractionary shock if similar speculation drives oil rapidly towards $100 a barrel.

In summary, the recovery is likely to be anaemic and below trend in advanced economies and there is a big risk of a double-dip recession.


(The writer is professor of economics at the Stern School of Business, NYU)



_____________________


Banker says RP on upside of recovery
Written by Dennis D. Estopace / Reporter
Business Mirror
http://www.businessmirror.com.ph/home/top-news/15077-bankers-say-rp-on-upside-of-recovery.html

A HONG Kong-based Filipino banker said the pace of the Philippines’ economic recovery is on track, since it is one of three countries not directly affected by the collapse of the global financial system.

“The Philippine economy never quite got into the ‘V’- or ‘U’-shaped pattern that clutched the countries directly hit by the crisis,” Eli Remolona of the Bank for International Settlements (BIS) said on Monday.

Remolona, BIS chief representative, spoke to reporters after receiving an award from Bank of the Philippine Islands (BPI) as one of three highly exceptional Filipinos overseas.

He explained that the global economy is on a “U”-shaped pattern of recovery after the United States’ housing industry collapsed from unsecured debts and rolled over outside its borders.

Remolona said, however, the recovery on the right side of the “U” is flatter, signaling weakness.

“The Philippines is on the good part of the upside of this ‘U’,” he noted, citing that the country was affected only because of ROP bonds. “But this is also marginal.”

BPI executive Raul Dimayuga agreed, saying he sees the recovery more of the shape of a hockey stick, with recovery slow and may take a longer time.

Dimayuga, BPI overseas banking and channel services group senior vice president, said continuous remittance of overseas Filipino workers would ensure that the Philippines remain on track with its recovery.

The National Economic and Development Authority has stuck to its forecast growth range of 0.8 percent to 1.8 percent in the country’s gross domestic product for this year.

However, low consumer spending remains an uneasy factor shadowing chances of the economy hitting this target.

“But we’re resilient as a people and as a nation. Despite the hardships, we have this ability to take everything in stride,” Remolona said.

He noted, however, that the shifts in leadership positions next year may affect the pace of recovery.

Remolona is one of the 2009 BPInoy awardees, recognized for his outstanding achievements in the field of banking and economics.

Despite GMA’s powers, RP in a drift, warns Ramos
Business Mirror
Written by Recto Mercene / Reporter
Monday, 24 August 2009
http://www.businessmirror.com.ph/home/top-news/15071-despite-gmas-powers-rp-in-a-drift-warns-ramos.html

FORMER President Fidel V. Ramos said on Monday he refused to accept the chairmanship of the administration’s merged parties of Lakas-Kampi- CMD because his concern is not about political parties or about “presidentiables” but the direction the country is going.

“My concern is not about political parties or presidentiables, my message is also addressed to the leader of this nation, President Gloria Macapagal-Arroyo, the Chief Executive, Commander in Chief, head of government, head of state all rolled into one,” Ramos said at a press conference at his office in Makati.

Ramos emphasized the vast powers of Mrs. Arroyo, compared to some countries where the head of state and the head of government are in two different persons. As Mrs. Arroyo has only 10 months to go before she leaves office, he urged her to “reform, perform and transform.”

“There is precious little time left, she should set a good example from the highest office of the land down to the lowest barangay.”

The former President described the administration’s policies as “opaque,” “malabo” and without transparency, and said many others shared this observation.

As a result of such drift, Ramos said the country has fallen in the United Nation’s Human Development Index to 93 (out of 177 countries), where before the country used to be ranked in the lower 60s.

Ramos said there is only one word that the President should follow and that is “pagbabago [reform].”

“It’s not yet too late. If the President makes a bold change, reform, transform, perform; at siya ang nagtitimon [she holds the rudder] and she sets the example that represents the whole nation in the whole community,” then the drift and decline may yet be arrested.

Ramos said the President’s popularity started going downhill since the revelations of the “Hello Garci” tapes and the resignations of the so-called Hyatt 10.

He said that since then, he had been writing about things that in his experience he saw as not contributing to the overall welfare.

Ramos said leaders can listen but they don’t have to carry out the unsolicited advice given them. “That’s the privilege of any leader who is elected by the people and made responsible to the electorate, it’s a take-it-or-leave-it situation.”

In this respect, the former President said: “You know the best advice that we can give at this point—because perhaps the incumbent President is fearful of being brought before a congressional commission or before a court of law—is just to face the music.”

He said that during his incumbency, he also faced two Senate and one congressional investigations, and his testimony led to the exoneration of other personalities linked to the alleged scandals.

Ramos said there are many other things “on the table” in Malacañang that President Arroyo could address, such as whether she is going to run for a congressional seat in Pampanga.

“For instance, and it should not be the spokesperson saying it the President, is she going to resign before she runs for her congressional seat, or is she going to run for that congressional seat while still retaining her position as President, even if it is allowed under the law?”

But Ramos said he sees no advantage of a congressional position because it does not guarantee immunity for criminal prosecution.

“I don’t see any advantage to that one, and why is she hanging on to that option?” he asked, adding that “at least she has not denied it personally, although it’s her spokesperson saying this and saying that and therefore continuing to muddle the issue.”

“You are not immune to heinous crimes. The immunity of a President is not absolute while in office. Neither is that of a prime minister in a parliamentary system, because the nonperforming or abusive president or prime minister can be removed by a no-confidence vote in parliament. Ano ba ’yung hinahabol nilang immunity na ‘yan. Parang napakapowerful yung immunity na ’yan.”

“What I’m saying is, if you have done your best according to your own judgment at the time—because everything is [a judgment call] in the Office of the President—you can’t be listening to everybody, you have to make a decision.”

Ramos said that no one should be afraid to face the music.

______________________


[B]PALACE SHRUGS OFF RAMOS, CITES GMA RECORD
Manila Times
http://www.manilatimes.net/national/2009/aug/26/yehey/top_stories/20090826top3.html

President Gloria Arroyo was not worried about recent stinging pronouncements of former President Fidel Ramos because her achievements speak for themselves, her Press secretary said Tuesday.

Cerge Remonde told a press conference aired over a state-run radio that President Arroyo was not affected by the comments of Ramos regarding her administration since she has been able to carry out necessary reforms during her watch.

Although the President was in the twilight of her term, the former president said on Monday that it was not too late for Mrs. Arroyo to “change,” and it was still possible for her to “reform, perform and transform.”

In a statement, Cabinet Secretary Silvestre Bello 3rd also on Tuesday said that the former leader should not be advising the President on what to do when it came to implementing reforms in the government.

Mrs. Arroyo, according to Bello, has been heeding previous pieces of vice from Ramos on reforms in the government at the same time that she was focusing on making the economy stable.

Commenting on the President’s supposed plan to run for Congress to escape possible future charges in court for alleged wrongdoing, Deputy Spokesman Anthony Golez said that Mrs. Arroyo was ready to face any charges if her detractors could present enough evidence against her.

“Any president could be charged after his or her term if there was enough evidence [against him or her], but if there is no evidence, any case would not push through,” Golez added. “There are so many allegations [against the President], but there is no proof that could stand in court.”

Ramos also on Monday said that Mrs. Arroyo would not be immune from suit even if she were elected as congresswoman.

The immunity of the president or a prime minister, the former president added, is not absolute and Mrs. Arroyo should face the music after her term ends.

After destroying local industries and agriculture...shipping naman!

Grabe talaga!

The government should protect the local shipping industry!!

:bash::bash::bash:

Eto pa!!!:bash::bash:



Editorial:

Onions to cry over

Opinion
Tuesday, 25 August 2009 21:22
Business Mirror

FOR the past few years, the evidence of onion smuggling has been there for all to see, besides the occasional news reports quoting some farmers’ group or nongovernment organization helping them. These days, the ante has been upped, so to speak, to intolerable levels, prompting an estimated half a million farmers in Central and Northern Luzon to demand quick, decisive action from the government.

The unabated smuggling of onions, said the farmers, has all but killed a sector that took decades to strengthen, and on which millions of Filipinos depend. Thriving in nine provinces, onion growing’s annual gross production of about 100,000 metric tons is valued at P5 billion—clearly an economic growth potential for the country that cannot be sneezed at. And yet, sadly, in failing to really support agriculture where it counts—by way of more funding for modernization, and by cutting down smuggling—the government sends the signal it cared little if the farmers keep falling by the wayside.

A front-page story in this paper on Tuesday quoted the Katipunan ng mga Samahan ng Magsisibuyas ng Nueva Ecija (Kasamne) as saying the farmers are reeling from a double whammy—the smuggling and the damage from recent typhoons—that could soon kill the onion industry in that Central Luzon province if the government doesn’t help with both low-interest agricultural loans and effective antismuggling efforts.

Vice chairman Leander Tañeda said Kasamne farmers have, as of this month, harvested some 228,000 sacks of onions, but they now face huge losses because of the low prices prevailing. They blamed the smuggled onions for this, and said that if they could not sell soon enough at a fair price, they also face massive spoilage.:bash::bash:

Tañeda said only 20,000 sacks of onions so far have been moved to some public markets in Nueva Ecija and some nearby provinces.

Kasamne, whose onion production accounts for 65 percent of the country’s total production, said their farmers have delayed the sale of P824 million worth of onions (roughly 967,800 sacks) because of competition from the smuggled onions.

It wants the Bureau of Plant Industry to hold the further issuance of import permits for onions that smugglers use as cover for the slip in foreign onions. Why the alarm? Well, 2.3 million bags of onions from China and India have been smuggled into the country since the start of this year alone.

On Tuesday the chairman of the Senate trade and industry committee, Sen. Mar Roxas II, vowed to open an investigation into the matter, warning of “the displacement and marginalization of 500,000 stakeholders in the industry, including 125,000 onion farmers, farm workers and their families.” :ohno::ohno:But there’s a certain urgency here, something that we hope won’t be lost in the frenzy of yet another congressional investigation. The trade-panel chairman’s concern is laudable, but he must make sure the issue doesn’t get mired in the politics that usually comes into play when the Executive and Congress start tossing the blame on each other. The farmers cannot afford to lose more time.

As it is, even within the Executive agencies, there’s a political wrangling that could hurt the farmers’ cause: Undersecretary Antonio Villar of the Presidential Antismuggling Group (PASG) seems to put the blame on the Bureau of Customs for failing to stop the smuggling of onions and other farm products from China. Customs officials, on the other hand, are citing the complaints of some business groups about the heavy-handed operations of the PASG. Whatever is really behind the flood of onions, any investigation should be able to craft suggested remedial action and exert political pressure for their enforcement—soon. Otherwise, these onions will be something to cry over for much longer.:bash::bash:

The risk of a double-dip recession is rising
By Nouriel Roubini
Published: August 23 2009 18:55 | Last updated: August 23 2009 18:55

T he global economy is starting to bottom out from the worst recession and financial crisis since the Great Depression. In the fourth quarter of 2008 and first quarter of 2009 the rate at which most advanced economies were contracting was similar to the gross domestic product free-fall in the early stage of the Depression. Then, late last year, policymakers who had been behind the curve finally started to use most of the weapons in their arsenal.

That effort worked and the free-fall of economic activity eased. There are three open questions now on the outlook. When will the global recession be over? What will be the shape of the economic recovery? Are there risks of a relapse?

On the first question it looks like the global economy will bottom out in the second half of 2009. In many advanced economies (the US, UK, Spain, Italy and other eurozone members) and some emerging market economies (mostly in Europe) the recession will not be formally over before the end of the year, as green shoots are still mixed with weeds. In some other advanced economies (Australia, Germany, France and Japan) and most emerging markets (China, India, Brazil and other parts of Asia and Latin America) the recovery has already started.

On the second issue the debate is between those – most of the economic consensus – who expect a V-shaped recovery with a rapid return to growth and those – like myself – who believe it will be U-shaped, anaemic and below trend for at least a couple of years, after a couple of quarters of rapid growth driven by the restocking of inventories and a recovery of production from near Depression levels.

There are several arguments for a weak U-shaped recovery. Employment is still falling sharply in the US and elsewhere – in advanced economies, unemployment will be above 10 per cent by 2010. This is bad news for demand and bank losses, but also for workers’ skills, a key factor behind long-term labour productivity growth.

Second, this is a crisis of solvency, not just liquidity, but true deleveraging has not begun yet because the losses of financial institutions have been socialised and put on government balance sheets. This limits the ability of banks to lend, households to spend and companies to invest.

Third, in countries running current account deficits, consumers need to cut spending and save much more, yet debt-burdened consumers face a wealth shock from falling home prices and stock markets and shrinking incomes and employment.

Fourth, the financial system – despite the policy support – is still severely damaged. Most of the shadow banking system has disappeared, and traditional banks are saddled with trillions of dollars in expected losses on loans and securities while still being seriously undercapitalised.

Fifth, weak profitability – owing to high debts and default risks, low growth and persistent deflationary pressures on corporate margins – will constrain companies’ willingness to produce, hire workers and invest.

Sixth, the releveraging of the public sector through its build-up of large fiscal deficits risks crowding out a recovery in private sector spending. The effects of the policy stimulus, moreover, will fizzle out by early next year, requiring greater private demand to support continued growth.

Seventh, the reduction of global imbalances implies that the current account deficits of profligate economies, such as the US, will narrow the surpluses of countries that over-save (China and other emerging markets, Germany and Japan). But if domestic demand does not grow fast enough in surplus countries, this will lead to a weaker recovery in global growth.

There are also now two reasons why there is a rising risk of a double-dip W-shaped recession. For a start, there are risks associated with exit strategies from the massive monetary and fiscal easing: policymakers are damned if they do and damned if they don’t. If they take large fiscal deficits seriously and raise taxes, cut spending and mop up excess liquidity soon, they would undermine recovery and tip the economy back into stag-deflation (recession and deflation).

But if they maintain large budget deficits, bond market vigilantes will punish policymakers. Then, inflationary expectations will increase, long-term government bond yields would rise and borrowing rates will go up sharply, leading to stagflation.

Another reason to fear a double-dip recession is that oil, energy and food prices are now rising faster than economic fundamentals warrant, and could be driven higher by excessive liquidity chasing assets and by speculative demand. Last year, oil at $145 a barrel was a tipping point for the global economy, as it created negative terms of trade and a disposable income shock for oil importing economies. The global economy could not withstand another contractionary shock if similar speculation drives oil rapidly towards $100 a barrel.

In summary, the recovery is likely to be anaemic and below trend in advanced economies and there is a big risk of a double-dip recession.


(The writer is professor of economics at the Stern School of Business, NYU)



_____________________


Banker says RP on upside of recovery
Written by Dennis D. Estopace / Reporter
Business Mirror
http://www.businessmirror.com.ph/home/top-news/15077-bankers-say-rp-on-upside-of-recovery.html

A HONG Kong-based Filipino banker said the pace of the Philippines’ economic recovery is on track, since it is one of three countries not directly affected by the collapse of the global financial system.

“The Philippine economy never quite got into the ‘V’- or ‘U’-shaped pattern that clutched the countries directly hit by the crisis,” Eli Remolona of the Bank for International Settlements (BIS) said on Monday.

Remolona, BIS chief representative, spoke to reporters after receiving an award from Bank of the Philippine Islands (BPI) as one of three highly exceptional Filipinos overseas.

He explained that the global economy is on a “U”-shaped pattern of recovery after the United States’ housing industry collapsed from unsecured debts and rolled over outside its borders.

Remolona said, however, the recovery on the right side of the “U” is flatter, signaling weakness.

“The Philippines is on the good part of the upside of this ‘U’,” he noted, citing that the country was affected only because of ROP bonds. “But this is also marginal.”

BPI executive Raul Dimayuga agreed, saying he sees the recovery more of the shape of a hockey stick, with recovery slow and may take a longer time.

Dimayuga, BPI overseas banking and channel services group senior vice president, said continuous remittance of overseas Filipino workers would ensure that the Philippines remain on track with its recovery.

The National Economic and Development Authority has stuck to its forecast growth range of 0.8 percent to 1.8 percent in the country’s gross domestic product for this year.

However, low consumer spending remains an uneasy factor shadowing chances of the economy hitting this target.

“But we’re resilient as a people and as a nation. Despite the hardships, we have this ability to take everything in stride,” Remolona said.

He noted, however, that the shifts in leadership positions next year may affect the pace of recovery.

Remolona is one of the 2009 BPInoy awardees, recognized for his outstanding achievements in the field of banking and economics.

OFW's Ask: Why Is the Philippines Still Poor?
By Dr. Bernardo Villegas
INQUIRER.net
08/25/2009
http://globalnation.inquirer.net/viewpoints/viewpoints/view/20090825-221948/Why-Is-the-Philippines-Still-Poor

MANILA, Philippines—Overseas Filipino workers ask why the Philippines remains to be a poor country while many of our East Asian neighbors, who used to be less developed economically than we (such as South Korea, Taiwan, Singapore, Malaysia) have eradicated or significantly reduced mass poverty.

Why are close to 30 percent of our population still suffering from dehumanizing poverty? It is grinding poverty that drives millions of Filipinos to incur very high social and spiritual costs, leaving their loved ones at home, in order to eke out a decent living for their respective families.

I do not pretend to know all the answers. I have been asking myself the same question over the last 40 years and have come out with a few basic answers. I hope I can contribute some light especially to our OFWs who are sacrificing some of the best years of their lives to help us combat this most important economic challenge through the remittances that they send year in and year out. As I have said in several occasions, this year 2009 we may get as much as much as $18 billion from our OFWs, contributing to the 4 percent GDP growth that I am personally forecasting for 2009, surpassing the more pessimistic prognostications of international and national agencies.

It is easy to blame corrupt government officials and greedy capitalists for our enduring poverty. Without condoning corruption and dishonest practices, I must point out that, with the exception of Singapore, East Asian countries that have eliminated poverty were also notorious for corruption. Just think of Japan, South Korea, Malaysia, and Thailand. Their government officials and private entrepreneurs were not exactly paragons of honesty and fair play during the decades when their respective economies were growing by leaps and bounds. Every society has to uproot corruption for moral reasons.

Dishonesty is immoral. It should never be tolerated in any democratic society. But it does not explain the main difference between countries that succeed in eliminating poverty and those that fail. We must find the difference somewhere else.

The neo-Malthusians blame rapid population growth for our poverty situation. I find this explanation laughable especially during these times when the only countries in Asia that are posting positive GDP growth rates are the countries with huge populations, and therefore sizable domestic markets which partly immunize them from collapsing export markets. If one takes a look at the so-called emerging markets that are forecasted to dominate the global economy in the next 20 years, they have a common denominator: they all have at least 50 million people, i.e., Brazil, Russia, India, China, Indonesia, Pakistan, Mexico, Indonesia, Vietnam, the Philippines, etc.

Large and young populations have two advantages: They provide low labor costs and attractive consumer markets. The ones who are afraid that the Philippines will have Standing Room Only (SRO) if our population keeps growing should be told that our rich East Asian neighbors have population densities much higher than the Philippines: Singapore (7,223 per sq. km), Hong Kong (6,501), Taiwan (625), and South Korea (483). When Philippine population peaks in 2025, the population density will not even exceed 400 persons per sq. km. In addition, the Philippines is much richer in natural resources than these four tigers.

Then why is the Philippines poor? The main answer is that for 30 long years after the Second World War, our leaders adopted economic policies that fostered an inward-looking, import-substitution industrialization based on protectionist, anti-market, and ultra-nationalist ideologies not very different from what most Latin American countries implemented with the same dire consequences. Over-reacting to our colonial past (as did the Latin Americans), we equated economic development with capital-intensive industrialization that did nothing to address our massive unemployment and underemployment problem. The worst consequence of these failed economic policies was not the eventual demise of the so-called infant industries that never grew up. The most devastating result was the almost criminal neglect of countryside and agricultural development. Because we used up our capital resources in the white elephants of the manufacturing sector, there were no resources left to build farm-to-market roads, irrigation systems, post-harvest facilities, seaports, and airports that were essential to making our small farmers productive. Agrarian reform failed, not because of the fragmentation of land, but because we did not provide the small farmers with the wherewithals to be both productive and cost-effective.

For some of our economic policy makers during this sad stage of our history, the neglect of countryside and agricultural development was more of a sin of omission: They were so obsessed with industrialization that they were blind to the needs of the rural populations, which accounted for 50 percent or more of the labor force. For a few others, however, the neglect of the countryside was based on an ideology that agriculture was a despicable sector that was the very symbol of colonial servitude. I remember debates that the late Jimmy Ongpin (who served as Finance Secretary under President Cory Aquino) and I had with some leading economists who were hell bent on investing more heavily on capital-intensive industries oriented to the domestic market. Because we were arguing for more investments in agriculture, we were accused of wanting to keep the Philippines as a "hewer of wood and a drawer of water." Jimmy Ongpin even made a trip to southern Spain to present evidence to these critics of agriculture that agribusiness can be even more high-tech than the old-fashioned manufacturing projects that the fanatics of industry wanted to push.

The rest is history. The bias against agriculture was so ingrained at the highest levels of Philippine society that it took almost till the end of the last century before a real shift toward agricultural and rural development could take place. In the meantime, our non-identical twin in the late 1970s and early 1980s, Thailand, was busy building farm-to-market roads, irrigation systems, post-harvest facilities, etc. The result was dramatic. Whereas we were well ahead of Thailand in almost all indicators of human development in the late 1970s, today Thailand—the agribusiness superpower of Southeast Asia—has twice our per capita income and a poverty line one-third ours. It has become the largest rice exporter in the world and a large exporter of many other high-value agricultural products. Because of the enlightened policy of focusing on rural and agricultural development, Thailand has been able to attain a higher level of development and significantly reduce poverty, despite the fact that corruption has also been rampant in that country.

Our story does not have to have an unhappy ending. In 1998, when Senator Edgardo Angara was the Secretary of Agriculture under the Estrada Administration, we saw a definitive shift away from inward-looking, import-substitution industrialization toward rural and agricultural development. Fortunately, this redirection of economic policy has been retained under the Administration of President Gloria Macapagal-Arroyo. Witness the significant improvements in countryside infrastructure represented by the Philippine nautical highway which has greatly improved the efficiency of transport of agricultural products from one island to another. The very visible improvements in Central Luzon (Clark-Subic-Tarlac highways) are being replicated in the Northern Luzon Agribusiness Quadrangle, in many regions in Mindanao, in very poor provinces like Aurora and Bicol, etc. As long as the next President will continue the focus on countryside infrastructure, we can be optimistic that we can make a dent on our serious poverty problem in the next 10 to 20 years. After all, 70 percent of the Philippine poor are in the rural areas.

There is one advice I would like to give to the OFWs reading this column. If and when you return to the Philippines, use your talents, experiences, and capital to engage in small- and medium-scale businesses in your respective provinces. You can grow high-value crops like tomatoes, lettuce, cabbage, papaya, sweet pineapple, honey dew melon—especially in provinces like Laguna, Cavite, Batangas, and Bulacan which have the 10 million consumers of Metro Manila as your market. You can also operate restaurants, bed-and-breakfast
and other tourist facilities, nurseries and kindergartens, and other service establishments in the increasingly urbanized rural areas in Central and Northern Luzon and in Northern and Southern Mindanao. Staying in the provinces does not mean that you have to be necessarily involved in agriculture. You can be in the many small-scale industries and services that are now dotting the countryside as better infrastructures are helping to disperse population away from the National Capital Region. As you come close to retirement age, you will find living in the Philippines much more pleasant than staying wherever you are. As you helped them with the remittances you sent all these years, you can also help to take care of your aging parents and grandparents with your physical presence upon your return.

^^^^^^

Ah, ok. The demented Bernardo Villegas.:bash::bash:

Maybe he needs to read papers from PIDs and the ill effects of liberalization and his f@ck up and bankrupt paradigm. Even US and EU are now becoming protectionists!

Its the prevalence of his ideas in our government that destroyed the vibrancy of our economy!

No thanks to him and his lackeys!

After destroying local industries and agriculture...shipping naman!

Grabe talaga!

The government should protect the local shipping industry!!

:bash::bash::bash:

For so long the shipping industry of this country is being controlled by the same taipans in the local shipping industry - Sulpicio, Gothong, WG&A, Negros Navigation and the Aboitiz (Spanish).

Look at Sulpicio - they are operating old vessels with the highest number of accidents and yet, they continue operating the cargo vessels. How about giving more choices to the Filipinos?

Remember Dona Paz, Dona Marilyn, etc.

Complete list:

MARITIME ACCIDENTS IN THE PHILIPPINES**

1980 M/V DON JUAN 18 DEAD/115 MISSING
1981 M/V SAN JUAN 52 DEAD
1986 M/V DONA JOSEFINA 150 DEAD
1987 M/V DONA PAZ 1,856 DEAD/13 MISSING
1988 M/V MARILYN 500 DEAD
1994 M/V CEBU CITY 66 DEAD/76 MISSING
1995 M/V VIVA ANTIPOLO VII 62 DEAD
1995 M/V KIMELODY CRISTY 17 DEAD/20 MISSING
1996 M/L GRETCHEN I 51 DEAD
1996 M/V DAVID JR 7 MISSING
1996 M/B NICKADEL 4 MISSING
1996 M/V VIVA PENAFRANCIA 2 THROWN OVERBOARD
1997 M/B FISH HUNTER 3 DEAD
1997 F/B ANNIE PAULINE 4 MISSING
1997 M/V KALIBO STAR 17 DEAD/13 MISSING
1998 M/V PRINCESS OF THE ORIENT 70 DEAD/80 MISSING
1999 M/V ASIA SOUTH KOREA 58 DEAD
2001 M/L ANNAHADA 124 DEAD/14 MISSING
2002 M/V MARIA CARMELA 39 DEAD/6 MISSING
2002 M/V NILODE-A 19 DEAD
2003 M/V SAN NICHOLAS 43 DEAD/21

^^ worth reading as related to above:

But the biggest irony, according to UFS president Nelson P. Ramirez, is that “while the Philippines is the top supplier of ratings and officers to the world’s fleet, it is unable to man its own ships.”

REALITIES

The statement of Ramirez provides a glimpse of the sad reality in the maritime industry in the Philippines today.

It’s true, the Philippines controls nearly 20 percent of the officer and rating positions in the world’s fleet with more than 180,000 seafarers. But it has no shipping industry to speak of.

There are more than 500,000 qualified and licensed Filipino seafarers, but many of them opt to wait for the opportunity to board foreign vessels.

“The biggest reason is economics,” Ramirez stresses. “The salary of entry level officer in international vessels is even more than the salary of a captain in local vessels.”

Indeed, the latest survey conducted by Cardiff University in Wales show that a Master Mariner or a Chief Engineer would receive a monthly remuneration of from a low of US $3,500 to a high of US $10,000 a month, compared to the local counterpart who earns from Php 20,000 to Php 120,000 month.

“But opportunities for the higher end position in the local shipping industry is extremely rare,” Ramirez notes. “Thus, only those who fail to make it in international shipping are left without a choice but board local vessels.”

Another reason that drives many of our young and bright officers to seek opportunities in international vessels is that many of the ships being operated in the Philippines are 15 years old or older and were only rehabilitated or refitted.

“Perhaps, this is another reason why many of our bright young officers want to work on foreign vessels,” Ramirez admits, noting that “they would rather work on relatively new vessels where they can practice what they have learned and with lesser risk as the vessel has a very high rating of seaworthiness.”

The UFS official describes many of the local vessels as substandard and do not meet international standards of seaworthiness. He cites the recent collision between Superferry 12 and M/V San Nicolas as something that could be attributed to inadequate equipment (on the part of the wooden-hulled M/V San Nicolas) for communication and signals and a lapse on the part of the officers of both ships.

“Had the communication equipment been more efficient and there is the corresponding VTSS (vessel traffic separation scheme), that tragedy that claimed more than 60 lives would have been averted,” Ramirez said.

TRAINING

Among seafarers worldwide, Ramirez revealed that Filipinos have the most training, assessment, and certification.

Aside from those prescribed under the Standard of Training, Certification and Watchkeeping of, as amended in 1995, there are a host of other requirements imposed only on Filipino seafarers.

Ramirez cites the certification assessment required by the Panama Maritime Authority (PMA) “only on Filipino seafarers.” He said that Filipino seafarers cannot board Panamanian-flagged vessels unless they undergo assessment through any of the two PMA-accredited training centers.

“Imagine, there are already assessments by the National Assessment Center and the Technical Education and Skills Academy, in line with STCW ’95, why is there a need for another assessment?” Ramirez asked.

Before a cadet can board a vessel, he is required to take up a series of trainings, which, according to Ramirez, are already redundant to what he has learned in maritime school.

“A cadet takes studies in maritime theories for three years and spends a year applying what he has learned on board, why don’t they just incorporate it in the curriculum instead of offering it after student graduates?” Ramirez asked.

He cites the Basic SOLAS training course which he said was meant only for those who want to board ship but have not attended maritime or nautical studies. “Now, this is being required of every one, even old salts,” he said. “There is no logic to this except the earnings of the training centers.”

During the First National Seafarers Convention in September 2002, one of the hottest issues was that of the quality of maritime education. It was found out that maritime education was below par compared to the demands of the profession. “The mushrooming of maritime schools in the 70s and 80s resulted into the commercialization of maritime and nautical education,” Ramirez said. “Thus, the quality of graduates went down significantly.”

PERFORMANCE

Many Filipino officers and ratings onboard foreign vessels have demonstrated their competence. This earned for them the respect of their foreign peers and even the foreign shipowners.

In the late 70s, the number of Filipino seafarers onboard foreign ships grew by leaps and bounds, reaching nearly 200,000 before the end of the century.

However, local shipowners, who cannot compete with the salaries offered by foreign shipowners, have to settle for those who failed to board foreign vessels.
“Also, the focus of trainings and certifications were the seafarers bound for international vessels,” Ramirez noted. “Not much attention has been given to the local seafarers.”

Apparently, Ramirez was trying to point out the obvious interest of the government on the dollar remittances of Filipinos onboard foreign ships. “This is tragic because while the government goes for the overtraining, overassessment, and overcertification of Filipino seafares that board foreign vessels, the utter disregard for strict qualification standards for local officers and ratings have resulted in unparalleled tragedies,” he observed.

The UFS official recalled that last year, the Maritime Industry Authority (MARINA) has pipelined a project to provide local seafarers with refresher courses and relevant trainings. “So far, nothing has been heard of about this,” he said.

“Bakit, ang tingin ba ng gobyerno sa pagmamarino ay barbero na hindi niya kayang gupitan ang kanyang sarili?” he asked in Filipino, adding that this kind of thinking will lead to more tragedies in the Philippine seas.

LOW MORALE

Many of the local officers and ratings, except those employed by the big shipping companies, receive measly pays and substandard working conditions.
“Many of the local shipping companies operate on low budget, that is why even their maintenance suffer,” he said.

But the greatest loser in this kind situation are those that patronize the ships, particularly those shuttling from Manila to the South and back.

“If passengers have a choice, they would not board ill-maintained ships. But given no choice, they are forced to, like the passengers of M/V San Nicolas,” he said.
The low salaries of local officers and crew have also significantly affected their morale. Instead of working hard to serve their passengers, there is a tendency for laxity and inadequate service as most passengers of local vessels would attest, Ramirez noted.

There are even cases of abuse of passengers by the crew of local passenger ships.
Several crews of a big passenger ferry were recently charged for the rape and murder of a lady passenger. Prior to this case, another crew of passenger vessel was charged with rape.

“One can say that there is command responsibility in the ship. But how can you motivate your crew when they are receiving only survival pay?” Ramirez again asked.

RO-RO HIGHWAY

If the tragedies – the collision of Superferry 12 and M/V San Nicolas, and the two rape cases – reflect the state of the maritime industry in the country today, it does not augur well to the much-vaunted launching of the “Strong Republic Highway.”
Prior to the launching of the “Strong Republic Highway” or “Ro-Ro Highway,” more than 60 lives were lost near Corregidor and two young women were raped by a local passengers ships’ crew, one of which was killed. If this is an indication of what to expect in the future, it’s not good, Ramirez said.
Meanwhile, maritime training centers are frenetically preparing other training modules that will be made compulsory in the next few months. This is in line with the worldwide fight against terrorism.
“While the world is fighting terrorism, we have yet to genuinely undertake well-meaning reforms for our maritime industry, not just making money from the blood and sweat of our seafarers,” Ramirez said.
http://www.ufs.ph/tinig/julaug03/07080301.html

^^^^

Ronnie, we can do it without giving special privileges to foreign vessels.

...Or give more incentives but with very strict implementation of maritime rules to existing local shipping companies..

^^^^

Ronnie, we can do it without giving special privileges to foreign vessels.

...Or give more incentives but with very strict implementation of maritime rules to existing local shipping companies..

sadly, how many Presidents have ruled this country and the maritime industry is still like this - plagued with accidents? I think we need new ideas, new ships, new owners to be more competitive.

Not in the list is Princess of the Stars by Sulpicio in June 2008. How many Filipinos more will die in sea tragedies if we continue operating like this? This has been going on since Marcos!

sadly, how many Presidents have ruled this country and the maritime industry is still like this - plagued with accidents? I think we need new ideas, new ships, new owners to be more competitive.

True. In fact, Aboitiz is doing it.

Negros Navigation Of Mr. Lacson and their new investors from Netherlands are going to modernize local shipping.:)

BSP to update its macroeconomic assumptions
Business World
http://www.bworldonline.com/BW082609/content.php?id=002

THE BANGKO SENTRAL ng Pilipinas (BSP) is set to update most of its 2009 macroeconomic targets, noting better-than-expected results so far for the year.

Increased investments and continued remittance growth, BSP Governor Amando M. Tetangco, Jr. said, would likely allow the Philippine economy to buck a worldwide decline.

"At the rate we’re going, we will have to revise our BoP (balance of payments) projections ... foreign direct investments (FDI) and remittances, these will also have to be reviewed," he told reporters late last Monday.

"These will likely turn out better than what we earlier projected," Mr. Tetangco said.

The BSP currently expects the country to post a BoP surplus of around $700 million this year, better than the $89 million posted in 2008.

The BoP is the summary of all the country’s transactions with the rest of the world. For the first seven months of the year, the country posted a surplus of over $2.7 billion.

Increased foreign borrowings this year — through two global bond issuances totaling $2.25 billion — will also contribute to a higher BoP surplus.

FDIs are expected to post a higher net inflow this year, coming from $1.5 billion in 2008.

FDI, which are long-term investments, hit $1 billion for the first five months of the year, nearly twice the level notched in that same period last year.

Remittances, meanwhile, grew by 2.9% in the first half, dispelling concerns that Filipinos working abroad would suffer due to massive job and salary cuts in host countries.

The BSP’s current remittance growth forecast is zero percent, or a 2009 tally the same as last year’s $16.4 billion.

"Remittances have been very resilient so if there is an improvement in the global economy, that should help support remittances for the rest of the year," Mr. Tetangco said.

The fresh macroeconomic targets are expected to be announced in October.

a reality - OFWs contribution to Philippine Economy:

Philippine workers abroad: the boon has a price
Remittances from Filipinos abroad are higher despite the global financial crisis. The $1 billion sent back monthly alleviates the effects of poverty and joblessness. But the exodus takes a toll.

By John M. Glionna
http://www.latimes.com/news/nationworld/world/la-fg-remittances26-2009aug26,0,2130696.story?track=rss
August 26, 2009

Reporting from Santa Barbara, Philippines - Looking down the main drag of this farm town, Police Chief Eric Noble marvels at the modern conveniences -- byproducts of the fierce ties binding Philippine families.

Sturdy houses with concrete foundations now replace the thatched huts of a generation ago. There are new cars, washing machines, children attending private schools and former sharecroppers who have purchased the farms where they once worked as lowly laborers.

Such economic progress has come from remittances, the staggering $1 billion sent to families nationwide each month by Filipinos working overseas in an attempt to overcome extreme poverty and joblessness in their native land.

Since they began leaving their island nation in droves in the early 1980s, Philippine workers have become a staple in other nations worldwide, with the money they send home in many cases remaining steady despite the worldwide financial crisis.

Filipinos sent a record $1.5 billion home in June as more sought work abroad. Remittances for the first six months of 2009 reached nearly $8.5 billion, a 2.9% increase over the same period last year.

In her annual state of the nation address in July, President Gloria Macapagal Arroyo hailed remittances as a driving force behind the economy. Labor Secretary Marianito Roque separately described the remittance system as a source of pride.

"The flow of overseas worker money in an unstable global economy demonstrates the resiliency of the Filipino people," Roque said. "Under the worst circumstances, our workers are getting jobs and sending home more money than ever. They are keeping the boat stable."

But some critics say the money comes at a continued social cost. The poverty-stricken nation of 90 million has seen 10 million workers -- more than 10% of its population -- join the overseas labor force.

The exodus of trained teachers, health professionals and engineers, some say, has done the Philippines more harm than good as those much-needed services go elsewhere.

There are also distinct social problems that arise when heads of households leave for greener economic pastures, officials say.

Though Noble, the police chief, praises the financial boost remittances give his town, he said the system is draining the Philippines of a prized resource: its people.

"Every day you look and shake your head," he says, "to see that someone else is gone."

Many Santa Barbara residents realize they must leave their isolated town to achieve a better life. But with millions of the poor living atop garbage dumps and under bridges in Manila, they know their nation's capital is not the solution.

And so they go abroad: One in 10 of Santa Barbara's 80,000 residents work in places such as Italy, Taiwan, Singapore and the U.S.

But recent months have hit hard. Since last fall, when the global financial crisis struck, many overseas workers have been forced to secure second and even third jobs to keep the remittance flow constant.

About 200,000 overseas Filipinos have lost their jobs since then, economists say. Many have returned to the Philippines, where, accustomed to the better salaries and working conditions abroad, they often do not want to take any available jobs.

Others are hounded by job placement businesses to repay hefty travel and work setup fees the agencies have laid out in advance of workers leaving the Philippines. "They're stalked by loan sharks who threaten their lives if they do not pay," said Garry Martinez, chairman of Migrante International, a watchdog group.

The remittance system has also altered the lives of the stay-at-home families of overseas workers.

A recent International Monetary Fund study found that many extended families of overseas Philippine workers are refusing to pursue jobs at home that they consider too low-paying, preferring to rely on their monthly remittance cut.

^^^^
Agree here.

Canadians Buying Las Vegas Real Estate

j_wrlc0Z9JI

Canadian suckers don't see the road ahead. The Subprime crisis was only a prelude of things to come here's the danger that lies ahead ... :ohno:

US Housing Market Collapse in 2010 Will Be Worse Than 2008

kunB4SnAh4g


Well, it depends on how much money they are spending and what properties they are buying. If they are planning on unloading their investments in a just a few years they wont be making as much money compared to years past. The times of quick and sudden appreciation of real estate investments much like in the past will not happen anytime soon.

As far as real estate in Vegas, it is one of the best buys in the country, not only you are getting new-er properties keep in mind, Vegas real estate was on the upswing the last 20 years so the quality of the homes are very high. Add to these world class neighbourhood is the proximity of the Strip, the Entertainment Capital of the World. World class neighbourhoods like Summerlin, Anthem, Seven Hills, Desert Shores, The Lakes, Peccole Ranch, Rhodes Ranch are all within half and hour or less from the 24/7 hustle and bustle of the Strip. Cookie cutter homes vary widely and are of high quality same with the condo/townhomes market.

Gov’t watches spurious imports in JPEPA
By BERNIE CAHILES-MAGKILAT
August 25, 2009, 6:30pm

The government has stepped up campaigns against the entry of spurious imports from Japan as the zero tariff bilateral trading regime under the Japan-Philippines Economic Partnership Agreement starts to roll.

Already, the Bureau of Customs has ordered a steel importer to pay over P88 million in tax payments for importing hot rolled plate sheet in coils (HRC) without the required import authority from the Department of Trade Industry that would have entitled the imported items of zero duty instead of the 7 percent regular tariff.

In a demand letter by BoC district collector in the Port of Manila Atty. Arnel C. Alcaraz dated August 3, 2009 has ordered importer Mayer Steel Pipe Corp. to pay P88.441 million in taxes inclusive of surcharges seven days from receipt of his letter or face legal action.

There was no mention as to the volume or value of the imported steel products held by the BOC but an industry source said the imported HRC is 20,000 MT. Current international prices range from $590 to $600 per MT. Accordingly, the imports arrived last July 22.

Alcaraz said that BOC has found out the shipments did not have the required authority to import from the DTI and JPEPA Certificate of Origin form JP prior to the importation as required under Department Administrative Order No. 09-03, series of 2009.

The importer has used the super green lane (SGL) and availed the preferential tariff of zero percent pursuant to the JPEPA despite lack of supporting documents. This prompted the Port of Manila to conduct a thorough review and verification on the veracity of such information.

It was found out the steel shipments were not covered under the JPEPA preferential tariff treatment.

“Thus, your importations, as seen in the hereto attached list, were not entitled to avail of the preferential tariff of zero percent in accordance with the JPEPA,” Alcaraz concluded.

US govt borrowing 40 cents of every dollar it will spend this year...
http://www.youtube.com/watch?v=lnx8HFqLsQE
lnx8HFqLsQE


Peter Schiff Aug 25th VLOG

hqEwFpXqbvg

sadly, how many Presidents have ruled this country and the maritime industry is still like this - plagued with accidents? I think we need new ideas, new ships, new owners to be more competitive.

Not in the list is Princess of the Stars by Sulpicio in June 2008. How many Filipinos more will die in sea tragedies if we continue operating like this? This has been going on since Marcos!

We have rotten vessels and non-functional coast guards... Perfect combination... :ohno:

So far, I haven't heard of a typhoon related sea accident that the coast guards made efforts to save...If there is, I would be glad to hear it.

Anyway, with regards to the economy, i think, we have the momentum, as of now. Voting wisely this coming 2010, will maintain or even speed up the growth of our country.

So, let's vote wisely.

We have rotten vessels and non-functional coast guards... Perfect combination... :ohno:

So far, I haven't heard of a typhoon related sea accident that the coast guards made efforts to save...If there is, I would be glad to hear it.

Anyway, with regards to the economy, i think, we have the momentum, as of now. Voting wisely this coming 2010, will maintain or even speed up the growth of our country.

So, let's vote wisely.

There are some incidents that the Coast Guards were able to help some fishermen during a storm and lately that landslide incident, I think their choppers were able to extract some victims. And you are right, our Armed Forces are not well equipped to do an effective job since they have limited resources.

Vote wisely and hopefully proper fundings and budgets to all sectors of the government would be wisely distributed.

Gov’t watches spurious imports in JPEPA
By BERNIE CAHILES-MAGKILAT
August 25, 2009, 6:30pm

The government has stepped up campaigns against the entry of spurious imports from Japan as the zero tariff bilateral trading regime under the Japan-Philippines Economic Partnership Agreement starts to roll.

Already, the Bureau of Customs has ordered a steel importer to pay over P88 million in tax payments for importing hot rolled plate sheet in coils (HRC) without the required import authority from the Department of Trade Industry that would have entitled the imported items of zero duty instead of the 7 percent regular tariff.

In a demand letter by BoC district collector in the Port of Manila Atty. Arnel C. Alcaraz dated August 3, 2009 has ordered importer Mayer Steel Pipe Corp. to pay P88.441 million in taxes inclusive of surcharges seven days from receipt of his letter or face legal action.

There was no mention as to the volume or value of the imported steel products held by the BOC but an industry source said the imported HRC is 20,000 MT. Current international prices range from $590 to $600 per MT. Accordingly, the imports arrived last July 22.

Alcaraz said that BOC has found out the shipments did not have the required authority to import from the DTI and JPEPA Certificate of Origin form JP prior to the importation as required under Department Administrative Order No. 09-03, series of 2009.

The importer has used the super green lane (SGL) and availed the preferential tariff of zero percent pursuant to the JPEPA despite lack of supporting documents. This prompted the Port of Manila to conduct a thorough review and verification on the veracity of such information.

It was found out the steel shipments were not covered under the JPEPA preferential tariff treatment.

“Thus, your importations, as seen in the hereto attached list, were not entitled to avail of the preferential tariff of zero percent in accordance with the JPEPA,” Alcaraz concluded.

The government should be very very vigilant. because JPEPA will be greatly abused and might worsen the already bad state of domestic industries.

CPF to invest B1.5bn in Philippines

Bangkokpost Published: 26/08/2009 at 12:00 AM


Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of the Charoen Pokphand Group, plans to spend 1.53 billion baht to build aquatic feed plants and a pig farm in the Philippines.

The company will spend 1.4 billion baht to construct a shrimp-feed factory with a capacity of 30,000 tonnes per year in Cebu province and a fish-feed plant with a capacity of 60,000 tonnes per year on Luzon island.

It will also invest 125 million baht in a pig farm in Luzon, said Adirek Sripatak, CPF's president and CEO. Construction of the projects is expected to be completed next year.

"There is vast potential in the Philippines because of the country's large population," said Mr Adirek. "The pig farm should be successful because of high pork consumption among the Philippine people."

Average pork consumption in the Philippines is about 15 kilogrammes per person per year, compared with 13 kg in Thailand.

CPF has also increased its overseas investments in countries such as Russia, Turkey and Vietnam to improve profit growth.

The company's net income rose to a quarterly record of 3.19 billion baht in the three months ended June 30, on improving earnings in its domestic and overseas aquaculture businesses, with six-month net profit rising to nearly 4 billion baht on sales of 75.4 billion.

CPF to invest B1.5bn in Philippines

Bangkokpost Published: 26/08/2009 at 12:00 AM


Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of the Charoen Pokphand Group, plans to spend 1.53 billion baht to build aquatic feed plants and a pig farm in the Philippines.

The company will spend 1.4 billion baht to construct a shrimp-feed factory with a capacity of 30,000 tonnes per year in Cebu province and a fish-feed plant with a capacity of 60,000 tonnes per year on Luzon island.

It will also invest 125 million baht in a pig farm in Luzon, said Adirek Sripatak, CPF's president and CEO. Construction of the projects is expected to be completed next year.

"There is vast potential in the Philippines because of the country's large population," said Mr Adirek. "The pig farm should be successful because of high pork consumption among the Philippine people."

Average pork consumption in the Philippines is about 15 kilogrammes per person per year, compared with 13 kg in Thailand.

CPF has also increased its overseas investments in countries such as Russia, Turkey and Vietnam to improve profit growth.

The company's net income rose to a quarterly record of 3.19 billion baht in the three months ended June 30, on improving earnings in its domestic and overseas aquaculture businesses, with six-month net profit rising to nearly 4 billion baht on sales of 75.4 billion.

:cheers:

Too many people in here are pre-occupied with what is going on in the United States and not their home turf, hehehe. The posts here are definitely exposing the kind of forumers on this thread boohooho hehehe!!!!!

^^
... and what kind of forumer you think you are... :lol:
... I am pretty sure American forefathers nor Philippine heroes (specifically Jose Rizal if you still remember him and his quotes) did not sacrifice their lives for your kind... :lol:

Peter Schiff quotes

“The entire American standard of living is artificially high right now, resting on the ability of Americans to borrow money from foreigners.”

"Printing money is merely taxation in another form. Rather than robbing citizens of their money, government robs their money of its purchasing power."

"You don’t drive an economy by consuming – the consumer is not the engine, the consumer is the caboose."



PETER SCHIFF REPORT AUGUST 24, 2009 DECOUPLING AND OMB DEFICIT PROJECTIONS

85aReJ2UgE8

^^

This is also a proof that the Philippines really lagged behind it's neighbors.......

It is already Thailand and Malaysia that invests in the Philippines which before were supposedly poorer than us..............

^^ uh, yeah it's true that we are quite lagging behind our neighbors. But this article doesn't really count. It states that the company also invested in countries such as Russia and Turkey(pork? isn't that country a Muslim state? aren't they violating the halal?) which is a far more richer than Thailand. Oh well, that's how the cookie crumbles. But don't worry,. our country also have investors(everybody shout, REALLY?), that invested in countries like Vietnam and China and other countries as well,. am i right or, right? lol

^^

It's just a sad reality...........

though some of Philippine companies are expanding abroad........

______________________________

it makes me hate our leaders so much.............

^^ well, have a glimpse at the bright side,. we're not really deprived of investors,.. as a matter of fact, they are gradually flocking in our country once again,. like the BPO right? and even tourism is booming,. and almost all the sectors that affect our economy are following,.

Yes, we have investors that also invest abroad,. but isn't that a signal that we are not drastically failed state?

We'll get there when we get there:)

But it's quite long...........

_____________________

We're economically growing slow but we're populationally growing FAST........

That's why we never prosper.......

PMAP says retrenchments, layoffs over
By BERNIE CAHILES-MAGKkILAT
August 26, 2009, 6:03pm

The wave of job retrenchments and layoffs in the country are finally over and the good news is job training are on the rise, declared human resource management experts group.

People Management Association of the Philippines (PMAP) president Grace A. Zata told a press conference that companies are now undertaking training for workers.

PMAP, which is composed of 1,800 firms in the country, and is in the forefront of training of human resources.

“Definitely, the retrenchments and layoffs even in the exports sector are over,” Zata said.

“We are out of the panic bottom,” added Jerry Plana, PMAP executive director.

Zata, however, said that the job market has not yet recovered from the massive layoffs experienced in the last quarter last year and the first quarter of this year.

According to Zata, the fact that companies are now investing in training for workers is a strong sign that optimism in the local economy is back.

Companies are also “rehiring and starting to operate regularly.”

The Department of Labor and Employment has estimated over 300,000 people lost their jobs early this year due to the global financial crisis.
As of April this year, the country’s unemployment rate was at 7.5 percent.

The export sector was the hardest hit as foreign buyers stopped their placing orders.

The situation eased up a bit sometime in May when electronics exports by firms registered with the Philippine Economic Zone Authority showed a slight improvement over the previous month. Zata also noted business process outsourcing sector for having led among the domestic industries in the job market. Most of the training now is geared for placements in the BPO sector.

The BPO sector managed to stay afloat despite the global crisis because foreign companies are trying to cut cost have no choice but to outsource their non-core services to a third party at cheaper cost.
http://www.mb.com.ph/articles/217776/pmap-says-retrenchments-layoffs-over

RP avoids recession, expected to post GDP growth this year
August 26, 2009, 6:04pm

The Philippines will not slip into recession and is certain to post growth in terms of gross domestic product (GDP) this year as the global economy starts to recover from the worst recession in decades, the economic planning chief said on Wednesday.

The government will release official data on second quarter growth on Thursday.

''The Philippines is not going into recession. We will still exhibit positive economic growth for the whole year of 2009,'' acting Socio-Economic Planning Secretary Augusto Santos told reporters.

Malacañang has appointed Augusto Santos as acting Director-General (DG) of the National Economic and Development Authority (NEDA).

This is the third time that Malacanang designated him as NEDA head. His earlier appointments were as NEDA Officer-in-Charge from July 14, 2005 to February 16, 2006 and as Acting Director-General from August 16, 2007 to July 28, 2008.

Rising from the ranks, Santos started as an Economic Researcher of the Presidential Economic Staff of the National Economic Council.

Santos' comments reinforced results of a Reuters poll on Monday which showed the economy escaped recession in the second quarter, growing by a seasonally adjusted 2.0 percent to reverse the previous quarter's 2.3 percent contraction.

Two consecutive quarters of negative growth signals a recession.

''The global and Philippine economies appear to have bottomed out in the second quarter and we expect a rebound in the third quarter,'' Santos said.

Last week, the economic planning agency said the economy likely bottomed out in the first half and should post stronger growth later this year when election-related spending starts and consumers shop ahead of the Christmas holidays.
http://www.mb.com.ph/node/217779/rp-avoid

Rites set for P2-billion gas project:cheers:

Manila Bulletin - Tuesday, August 25
http://ph.news.yahoo.com/mb/20090825/tph-rites-set-for-p2-billion-gas-project-584a460.html

Pagbilao, Quezon - The ground-breaking ceremony for a P2-billion ($400 million) Liquefied Natural Gas (LNG) terminal and a power plant of the Energy World Corp. (EWC) is set 9 a.m. on Friday, Aug. 28, 2009 in Barangay Ibaba Polo here.

Expected to attend the ceremony are Energy Secretary Angelo Reyes, Quezon Gov. Rafael Nantes, Quezon first district Rep. Mark Enverga, EWC chairman and CEO Stewart Elliott, Pagbilao Mayor Venus Portes, and Ibaba Polo Barangay Captain Wilfredo Martinez.

Former Governor Eduardo Rodriguez said that the initiator of the LNG terminal is expected to finish the project before the end of 2010, while the 300-megawatt LNG power plant will be completed in the middle of 2011. The LNG project is the first of its kind in the Philippines.

Stewart Elliott, head of EWC, was formerly with Hopewell which constructed the power plant in this town during the provincial administration of Rodriguez more than a decade ago.

EWC is an Australian exploration company whose principal activities are exploration, development, and production of gas and oil, design, construction, operation and maintenance of gas, processing plant and gas pipelines; development, design, construction, operation and maintenance of power stations, and development and production of liquefied natural gas, design, construction, operation and maintenance of LNG plants and road transport of LNG.

Just an insight on Thailand's land policy and their booming tourism industry.

Foreigners 'own 90% of Phuket beach land'
Report says land grab rife in tourist spots

Writer: PENCHAN CHAROENSUTHIPAN
Published: 24/08/2009 at 12:00 AM
Newspaper section: News

About 90% of beach land in Phuket is controlled by foreigners through Thai nominees, a leading research body has found.

A similar situation exists in other prime tourism destinations in provinces such as Chiang Mai and Rayong.

Local officials and legal experts have helped clear the way for foreign investors to take control of the country's rice farms and property in resort provinces, according to research on foreign land ownership by the Thailand Research Fund.

TRF called a seminar on the research findings yesterday attended by economics and legal scholars.

There recently has been speculation that foreign businessmen, particularly from the Middle East, were snapping up rice fields in the central plains and elsewhere through proxy local companies.

Transnational business consortiums were said to be holding the land through Thai nominees, which is against the law.

Some farmers are leasing land they previously owned but have since sold to the foreigners' proxy firms, observers said.

Siriporn Sajjanont, from the economics faculty at Sukhothai Thammathirat Open University and a member of the research team, said the study showed many kinds of property had been bought by foreigners through Thai nominees.

"About 90% of land along the coastline in Phuket is controlled by foreigners through Thai nominees," she said.

Foreign investment capital was essential for developing Phuket and Samui, as Thais do not have enough money to invest themselves, Ms Siriporn said.

The coastal areas most sought after by foreign investors were Pattaya in Chon Buri, Koh Phangan and Koh Samui in Surat Thani, Phuket and Hua Hin in Prachuap Khiri Khan.

In Chiang Mai, foreigners had used legal loopholes to exceed the limit on sales of condominium units, Ms Siriporn said.

There was evidence they hold the property through Thai nominees by marrying Thais. In some cases, Thai women were asked to register the foreigners' property in their own names.

The study found similar problems in Rayong involving foreign landholdings through Thai nominees with foreigners marrying Thais.

In some land lease cases, the period of leasehold was unusually long, Ms Siriporn said. The study found that some lease contracts stated the leasehold was "for life".

Land ownership by foreigners had been made possible by their Thai lawyers who had found legal loopholes to clear the way for foreigners to take control, the research found.

Village heads also had acted as land brokers to arrange sales of state land given to local people so they could make a living, the panellists said.

Village heads were close to residents and knew which prime land was available.

Some legal entities had been set up with 51% of shares held by Thais, although those Thais turned out to be mere legal advisers for foreigners and had no power to run the legal entities, Ms Siriporn said.

"We also found the same people had set up many entities," she said.

Some entities' regulations on shareholding structures allowed foreign shareholders more power than Thais in running those entities.

Col Surin Pikulthong, president of the Community Organisations Development Institute, said he had received information that Hmong people in the US had provided financial support for Hmong in Nan province to buy land and grow rice for shipment to the US.

Silaporn Buasai, vice-president of the institute, said she had heard that investors from Taiwan had bought land here for growing oranges to be sold in Taiwan.

Wichian Phuanglamjiak, vice-president of the Thai Rice Growers' Association, said rice farmers held additional information on land grabs by foreign investors.

He said the problem had remained unaddressed for too long and no state agency had taken the matter seriously.

Mr Wichian said farmers were pinning their hopes on the Department of Special Investigation to pursue the matter.

DSI investigator Pakorn Sucheevakul on Saturday said the agency was investigating four Thai companies in Ayutthaya which own rice farms of almost 10,000 rai.

Malee Antasin, 59, a farmer in Ayutthaya's Bang Ban district, said businessmen had bought many plots in her village since 1995.

She said she had felt "besieged" and pressured to sell her rice plot as her land had been enclosed by other plots owned by those investors. She was now taking the matter to court.
http://www.bangkokpost.com/news/local/22577/foreigners-own-90-of-phuket-beach-land

Demand for cement prompts Holcim Philippines to reopen line
Aug, 26 2009

(Manila, Philippines) -- After hitting a record P6 billion in revenues from April to June, Holcim Philippines said it would reopen the second production line of its cement facility in Misamis Oriental this year.:cheers:

In a statement, the company said it is set to resume operations of the Lugait facility's second production line this November. Restarting the plant would take 2 to 3 months, and operations would continue based on market demand.

According to Holcim Philippines Chief Operating Officer Ian Thackwray, this move would enable the company to sustain strong sales as demand for cement is starting to pick up due to several infrastructure projects under the government's stimulus program.
"We recognize that government is hard at work, pump-priming the economy with infrastructure projects, and we want to make sure that we are able to continue supporting this initiative. By operating a second line in Lugait, we ensure that there continues to be sufficient market supply," he said.

The resumption of operations of the second Lugait line would increase Holcim Philippines' annual cement production capacity by 884,000 metric tons or 12.4%. The mothballed line's 100 employees would also be restored, with another 40 workers to be hired on a contractual basis.

Thackwray said the additional volumes to be generated in the reopened Lugait line will give the company more room for growth. "As of now, market demand remains strong and there are no indications, as yet, of any slowdown," he said.

At present, Holcim Philippines operates one production line in Lugait. The company also has 3 operating production lines in Bulacan, La Union, and Davao, and idled lines in Davao and Bulacan.

http://www.aggregateresearch.com/article.aspx?src=rss&id=17059

Deutsche sees faster growth for RP economy (http://www.manilatimes.net/national/2009/aug/27/yehey/business/20090827bus3.html)
Manila Times (http://www.manilatimes.net/national/2009/aug/27/yehey/business/20090827bus3.html)
By Maricel E. Burgonio, Senior Reporter

Deutsche Bank said Philippine economic growth would exceed the government’s projection for this year and next year, citing steady remittance inflows that would drive consumption growth.

In a briefing, Norbert Walter, Deutsche Bank chief economist, said the country’s gross domestic product (GDP) would grow by 2 percent this year and 3.5 percent next year.

“The growth rate will not be back to normal, it will be a modest growth only,” Walter said.

Philippine economic managers projected GDP to grow by 0.8 percent to 1.8 percent this year.

For next year, they forecast growth of 2.6 percent to 3.6 percent.

In the first quarter, GDP grew at a sharply lower 0.4 percent. The government is set to release the second-quarter figures today.

An indicator of economic performance, GDP is the amount of final goods and services produced in a country.

“Surprisingly, overseas workers’ remittances are holding up. [But] we don’t expect a growth rate that we’ve seen before the recession,” Walter said.

The Bangko Sentral ng Pilipinas (BSP) expects remittances to post flat growth this year from $16.4 billion last year.

Walter said the BSP should address excess liquidity to avoid an acceleration of inflation.

“I don’t expect any big increases of prices. It will happen if the central banks did not soften excess liquidity,” he said.

He said inflation will accelerate in 2011 but only disclosed estimates of 4 percent for this year and 3.9 percent next year.

The BSP has an inflation target of 2.5 percent to 4.5 percent this year and 3.5 percent to 5.5 percent for next year.

Walter said the BSP would hike its policy rates once the US Federal Reserves increase its rates next year.

Last week, the BSP paused from a monetary easing cycle that began in December last year. Before taking a breather, it shaved 200 basis points off its overnight borrowing and lending rates, which stand at record lows of 4 percent and 6 percent, respectively.

Proposed 2010 RP budget to sustain economic recovery (http://www.gmanews.tv/story/170803/proposed-2010-rp-budget-to-sustain-economic-recovery)
08/26/2009 | 11:21 PM
GMA News (http://www.gmanews.tv/story/170803/proposed-2010-rp-budget-to-sustain-economic-recovery)


Malacañang on Wednesday formally submitted its proposed 2010 national budget to the House of Representatives, indicating its continued commitment to the country’s social welfare and economic recovery.

The P1.541 trillion national budget is eight percent (or P115 billion) higher than last year’s, Budget Secretary Rolando G. Andaya Jr. said.

Besides sustaining the Philippines’ economic rebound, the increased budget will help the government “complete its infrastructure projects, develop human capital and well-being, and spur farm activity," he added.

Of the P864 billion allotted for maintenance and other operating expenses (MOOE), roughly one-third – or P340.8 billion – has been set aside to pay for the country’s financial obligations.

The debt service allotment covers P221.3 billion worth of domestic obligations. The remaining P119.5 billion has been set for foreign creditors.

One-third of the MOOE has also been earmarked for social services, including P235 billion for education and manpower and P101 billion for social security and welfare.

A total of P10 billion was also allocated for direct cash transfers to 700,000 poor families.

Economic services, which cover agriculture and environment, were also given allotments of P356 billion, under the MOOE, with defense getting P73.6 billion, and general public services P275.1 billion.

Some P494 billion has been allotted for salaries, pensions, and premium contributions for government personnel, up from P423 billion this year.

Malacañang on Wednesday submitted its national budget to the House of Representatives. Higher funds were proposed for social services, affording workers – such as the one pictured here – increased government protection. Zacky Abayon
The 15.2 percent climb in salaries is due to the passage of the Salary Standardization Law III. The law took effect in June, requiring an additional P68.4 billion on its second year of implementation in 2010.

Recruitment of 14,729 new teachers will cost the government P2.1 billion while the hiring of 10,000 additional policemen will cost of P1.4 billion, Andaya said.

Capital outlays (CO), which includes portions of the Internal Revenue Allotment (IRA) for local governments, was given a P235 billion in funds next year.

Of the infrastructure budget, P72 billion will be spent on roads and bridges, P5.8 billion on new school buildings, P27.6 billion for farm infrastructure, and P1.5 billion for bringing clean water to poor communities.

Funds for infrastructure have been “calibrated to complete projects promised by President Gloria Macapagal Arroyo in her State of the Nation Addresses," Andaya said.

Education, public works departments receive highest funds

In the meantime, the Department of Education secured a P172.8 billion allotment, making it the agency with the largest budget allocation.

Coming in at second is the public works department which was given P105.2 billion.

The Department of Interior and Local Government came in third, securing P65.4 billion in annual funds.

The Departments of Defense and Agriculture received yearly allotments of P62.7 billion and P37.8 billion, respectively.

The health department has the sixth-largest budget at P28.5 billion, followed by the departments of agrarian reform at P19.7 billion, social welfare and development at P16.5 billion, justice at P13 billion, and foreign affairs at P12.5 billion.

The Commission on Elections will get P10.6 billion for the May 2010 polls.

The proposed budget has a programmed P233.4 billion deficit, which is 2.8 percent of the country’s gross domestic product (GDP) as compared to 3.2 percent in 2009, Andaya added.

The proposed 2010 General Appropriation Act is also based on a growth target of 2.6-3.6 percent, an inflation rate of 3.5-5.5 percent, a Dubai crude oil price range of $60-$80 per barrel, and a population of 94.01 million.

Although interest payments are expected to rise next year, the country’s debt to GDP ratio – which measures the country’s ability to settle its obligations – will not increase, Andaya said.

In 2003, the Philippines’ debt to GDP ratio reached 38.3 percent, declining to 24.1 percent by the end of 2008, a level “where it will remain," Andaya said.

Andaya also asked Congress to pass the 2010 budget “with dispatch."

Speaker Prospero Nograles assured Malacaňang that the House will do its best to finish budget deliberations on time.

"I am promising that there would be no re-enacted budget next year," Nograles told reporters in a press conference after Andaya formally submitted next year’s proposed budget. - With Johanna Camille L. Sisante, GMANews.TV

Singapore's Callandra to invest $160 million in CNG project in RP

By Donnabelle L. Gatdula
(The Philippine Star)
Updated August 27, 2009 12:00 AM

MANILA, Philippines - Callandra Liquefied CNG Fuels Corp. will invest about $160 million for its compressed natural gas projects in the Philippines, a top company official said.

Company president Randall Antonio said they are holding talks with various banks to raise 70 percent of the planned investment.

He said the remaining 30 percent will be infused by Callandra investors, composed of investment houses based in London and the United States. Callandra’s holding firm is based in Singapore.

The investment would cover the establishment of six CNG refilling stations and a processing plant, he pointed out.

Antonio said this project will be implemented three phases. The first phase is expected to be completed in mid-2010 with the company serving 2,000 CNG buses. The second phase will involve 3,500 buses and is expected to be completed by 2012.

By 2014, the project is expected to be in full commercial operation involving 5,000 CNG buses.

Six CNG stations are likely to be located in Manila, Las Pinas, Pasig, Quezon City, Pasay and Monumento.

The CNG processing plant, on the other hand, will be built in the Batangas area.

Antonio said if they would be able to commercially operate their CNG project in the Philippines, they could offer their CNG 25 percent cheaper than the diesel. He said this price could even go lower if the government would provide subsidies from natural gas projects’ royalties.

“In all practical essence, costing should be subsidized by somebody. Maybe the government or Shell (operator of the natural gas project in Northwest Palawan). As a matter of fact in the US, the buses are federally funded 80 percent and 20 percent by the city. The infrastructure to fuel those buses is also being funded by federal and city governments,” he said.

If these subsidies apply, he said the price of CNG can go 40 percent lower than diesel.

Callandra has signified interest to enter into the CNG business in the country three years ago but has not been able to push for the project due to the continuing volatility of oil prices and supply of natural gas.

In November 2008, the Malampaya consortium offered 150 billion cubic feet of natural gas to interested parties from the country’s largest natural gas field, which is estimated to contain 3.7 trillion cubic feet of natural reserves.

Callandra was among those that joined the bidding for the additional gas from the Malampaya field.

The Department of Energy (DOE) has been receiving numerous proposals for the construction of CNG refilling stations in the country. At present, there is only one CNG refilling station in the country located in Laguna and run by Shell.

The DOE is now working out a way to allocate a portion of the additional gas to be produced from the $4.5-billion Malampaya gas project in Palawan to the transport sector.:):)

^^^^

Ronnie, we can do it without giving special privileges to foreign vessels.

...Or give more incentives but with very strict implementation of maritime rules to existing local shipping companies..


Magsaysay Transport unit accepts delivery of tanker

(The Philippine Star)
Updated August 27, 2009 12:00 AM


MANILA, Philippines - Batangas Bay Carriers, Inc. (BBCI) the tanker-barge division of the Magsaysay Transport and Logistics Group, recently accepted the delivery of the newly built M/T ‘Star Sirius’, a 1,875-deadweight ton double hull tanker-barge from Keppel Philippines Marine, Inc., through a signing ceremony held at the Keppel Batangas Shipyard (KBS) in Bauan, Batangas. Present during the affair were the officers and staff of BBCI and KBS led by Roberto Umali, BBCI president and Magsaysay Transport and Logistics COO and Kok Boon Heng, KSB president.

M/T ‘Star Sirius’, with its carrying capacity of about two million liters of black petroleum product, is exclusively chartered by Chevron Philippines, Inc. (CPI) for the transport of fuel oil products to various points of the country. Having successfully hurdled the CPI vetting inspection in July 2009, the newbuilding tanker-barge, classed under the American Bureau of Shipping (ABS), is already fully operational.

“BBCI is very proud to deliver and offer the services of our MT ‘Star Sirius’ to Chevron. MT ‘Star Sirius’ symbolizes our organization’s strong commitment to Chevron Philippines and likewise in support of our government’s goals,” Umali said:)

I would be happy if Philippines produce these kind of vehicles in the future:

vfhw59uEpY0

It runs on nothing but clean air.

Too many people in here are pre-occupied with what is going on in the United States and not their home turf, hehehe. The posts here are definitely exposing the kind of forumers on this thread boohooho hehehe!!!!!

^^
... and what kind of forumer you think you are... :lol:
... I am pretty sure American forefathers nor Philippine heroes (specifically Jose Rizal if you still remember him and his quotes) did not sacrifice their lives for your kind... :lol:


:lol::lol:

^^
... and what kind of forumer you think you are... :lol:
... I am pretty sure American forefathers nor Philippine heroes (specifically Jose Rizal if you still remember him and his quotes) did not sacrifice their lives for your kind... :lol:

Im most certainly happy at the moment and living the life I love in the United States. Can you say the same for yourself. :lol:

Carry on with your ill-intent posts. It gives us something to laugh at. Take care of your country, it definitely needs it. :lol:

Im most certainly happy at the moment and living the life I love in the United States. Can you say the same for yourself. :lol:

Carry on with your ill-intent posts. It gives us something to laugh at. Take care of your country, it definitely needs it. :lol:

Hey American, if you are asking a question use a question mark at the end of your sentence. :)

Too many people in here are pre-occupied with what is going on in the United States and not their home turf, hehehe. The posts here are definitely exposing the kind of forumers on this thread boohooho hehehe!!!!!

:Dbakit mo nga naman aasikasuhin at uunahin ang pamilya ng iba kung hindi mo naman kayang alagaan/arugain ang sarili mong pamilya.:hilarious


simpleng pinoy lang ang version nyan...at ang tawag dyan ay "chismis"

ipinangangalandakan mo ang kapit-bahay mo pero ikaw pala ang pinag-uusapan ng lahat at pinagtatawanan

:Dbakit mo nga naman aasikasuhin at uunahin ang pamilya ng iba kung hindi mo naman kayang alagaan/arugain ang sarili mong pamilya.:hilarious


simpleng pinoy lang ang version nyan...at ang tawag dyan ay "chismis"

ipinangangalandakan mo ang kapit-bahay mo pero ikaw pala ang pinag-uusapan ng lahat at pinagtatawanan


Hahaha it's the chika minute here at SSC but hey, whatever floats their boat.:lol:

If you are asking a question use question mark at the end of your sentence. :)

I would actually prefer to type your post this way. "If you are asking a question, use a question mark at the end of your sentence." Hahahahaha!

Guys, thanks for all the good news...One step at a time, and we will be better someday... :cheers:

Am so eager to get an electronic passport... :)

Way to go Pinas... :banana:

Too many people in here are pre-occupied with what is going on in the United States and not their home turf, hehehe. The posts here are definitely exposing the kind of forumers on this thread boohooho hehehe!!!!!

Actually, we should all be pre-occupied with what is going on in the US because the world economy is at stake. It's affecting us here already, and the economic impact is more severe in third world countries. :)

With more than $10 trillion expected deficit within a decade only, let's find out what our tax rates are going to be over time as the purchasing value of the dollar continues to fall (read: inflation). I even have doubts if I will ever get my social security benefits when I reach the retirement age.

Im most certainly happy at the moment and living the life I love in the United States. Can you say the same for yourself. :lol:

Carry on with your ill-intent posts. It gives us something to laugh at. Take care of your country, it definitely needs it. :lol:

... sobrang langsa ng hanging dumaan ah... muntik na ko masuka ... :puke:

... im sorry to tell you that our humble, safer, caring, civilized govt is better than yours... :)

... eto pakingan mo ... austrian economist ... baka bilib na bilib ka sa mga keynesian economist na nagpapatakbo ng gobyerno mo e ...

The Age of the Robber Barons (1/3)
wHf4siQScb0

The Age of the Robber Barons (2/3)
mWsAZ1aP9IU

The Age of the Robber Barons (3/3)
_X0taJ-xcVE

Those kind of vehicles help so much in stopping climate change.............

GDP up 1.5% in Q2—Neda (http://business.inquirer.net/money/breakingnews/view/20090827-222246/GDP-up-15-in-Q2Neda)

By Ronnel Domingo
Philippine Daily Inquirer
First Posted 11:31:00 08/27/2009

MANILA, Philippines—The gross domestic product in the second quarter grew 1.5 percent year-on-year with stronger construction, mining, and quarrying sectors as well as government services, the National Economic and Development Authority said Thursday.

Neda said the economy averted recession with 2.4 percent quarter-on-quarter growth.

Neda officials said the government's full-year goal of 1.8 percent is "easy" and "achievable."

The GDP refers to the total value of output of goods and services within the country at a given time, in this case for the period of April to June 2009.

GDP up 1.5% in Q2—Neda (http://business.inquirer.net/money/breakingnews/view/20090827-222246/GDP-up-15-in-Q2Neda)

By Ronnel Domingo
Philippine Daily Inquirer
First Posted 11:31:00 08/27/2009

MANILA, Philippines—The gross domestic product in the second quarter grew 1.5 percent year-on-year with stronger construction, mining, and quarrying sectors as well as government services, the National Economic and Development Authority said Thursday.

Neda said the economy averted recession with 2.4 percent quarter-on-quarter growth.

Neda officials said the government's full-year goal of 1.8 percent is "easy" and "achievable."

The GDP refers to the total value of output of goods and services within the country at a given time, in this case for the period of April to June 2009.
This is a good news! No recession for the Philippines.

^^ related to the above article.

Philippine Growth Climbs as Asian Economies Recover (Update2)

http://www.bloomberg.com/apps/news?pid=20601068&sid=ar_wJzxh7GcM
By Karl Lester M. Yap and Cecilia Yap

Aug. 27 (Bloomberg) -- Philippine economic growth accelerated in the second quarter from the slowest pace in a decade, adding to signs Asian nations are recovering from the global recession. Stocks rose.

Gross domestic product increased 1.5 percent from a year earlier, the National Statistical Coordination Board said in Manila today. That was three times the 0.5 percent median forecast of 17 economists surveyed by Bloomberg News. The economy expanded a revised 0.6 percent in the first quarter, the weakest pace since a recession ended in 1998.

Record-low borrowing costs and government stimulus are helping Asian nations from Thailand to Singapore report better second-quarter economic numbers. Philippine President Gloria Arroyo has boosted spending to avoid a recession and help companies including SM Investments Corp. survive the slump.

The government’s “stimulus programs have been successful in preventing a slowdown,” said Jonathan Ravelas, a market strategist at Banco de Oro Unibank Inc. in Manila. “They should continue to pump prime to create the necessary conditions for sustainable economic growth.”

The Philippine Stock Exchange Index rose 0.5 percent as at 11:14 a.m. in Manila, compared to a 0.8 percent decline in the MSCI Asia Pacific Index. The peso pared declines and traded at 48.885 per dollar as of 11:04 a.m. from 48.93 before the report was issued, according to Tullett Prebon Plc. The government’s benchmark five-year bonds dropped a second day.

Avoid Recession

“The government’s economic resiliency plan resuscitated the domestic economy during the second quarter,” Romulo Virola, secretary general at the statistical board, said in Manila today. Economic Planning Secretary Augusto Santos said the Philippine economy will escape a recession and is “on track” to achieve a 1.8 percent growth rate this year.

The government predicts expansion in the $167 billion economy will improve in the second half of the year as the global slowdown eases and state spending kicks in. The central bank kept its benchmark interest rate unchanged at a record low of 4 percent last week after slashing borrowing costs by 2 percentage points from mid-December to July.

“They have done much easing,” said Economic Planning Director Dennis Arroyo. “It’s time for fiscal policy to work.” The Philippine economy may grow more than the government target of 3.6 percent next year because the global recession is ending faster than expected, he said.

‘Worst is Over’

Consumer spending, which accounts for about 70 percent of the economy, rose 2.2 percent last quarter from a year earlier. The “worst is over” for the country’s retailers and the industry will grow moderately this year, the Manila Times cited Philippine Retailers Association Chairman Jorge Mendiola as saying Aug. 14.

SM Investments, whose assets include the Philippines’ biggest bank and largest shopping mall operator, said profit rose 16 percent in the second quarter as people spent more at its supermarkets and department stores.

Exports of goods and services by companies including Intel Corp., which account for about a third of the Philippine economy, dropped 16 percent in peso terms in the second quarter from a year earlier. The decline in Philippine exports narrowed to the least in seven months in June as the region showed signs of recovery.

China’s growth accelerated in the second quarter for the first time in more than two years after the government implemented a 4 trillion-yuan ($585 billion) stimulus plan and prodded banks to lend more. Singapore last month raised its 2009 economic forecast, predicting the economy will shrink 4 percent to 6 percent this year, less than earlier estimates.

Malaysia’s economy shrank a less-than-expected 3.9 percent in the three months ended June from a year earlier, easing from a 6.2 percent contraction in the first quarter, the central bank said yesterday. Thailand said this week its recession eased last quarter on government spending and improving export orders.

To contact the reporter on this story: Karl Lester M. Yap in Manila at kyap5@bloomberg.net;

^^ definitely a good news! :banana::banana: :cheers::cheers:

at least ligtas na tayo sa recession for now... it's also a sign na nakaka-recover na ang economy natin...

but then, it's not over yet.. we still have to see if things will be better in the next two quarters.. and it should be, since this 1.5% growth means that we are recovering... dapat magtuluy-tuloy yan..

^^Sana nga magtuloy-tuloy, pero normally maganda ang performance ng last two quarters kasi mataas ang consumer spending during this period.

Philippine GDP surprises; c.bank eyes policy shift
Reuters - Thursday, August 27


* Economy reverses Q1 GDP fall with 2.4 pct growth in Q2

* Q2 growth higher than market estimates

* Quarter on quarter Q2 GDP growth highest in over two years

* C.bank says data could set the stage for policy shift

By Karen Lema

MANILA, Aug 27 - The Philippines economy dodged the recession that engulfed much of Asia and enjoyed its strongest performance in more than two years in the second quarter, prompting the central bank to say it may change its policy.

Second-quarter gross domestic product growth at a seasonally adjusted 2.4 percent from the first quarter was the highest since 2.4 percent in the first three months of 2007, the state socio-economic planning agency said on Thursday, and beat market estimates.

The government's stimulus package -- investments in infrastructure and social services -- lifted economic output in the second quarter, offsetting stubbornly weak exports. Officials said they expect stronger growth in coming quarters as consumer spending rises ahead of Christmas and next year's elections.

"Growth came mainly from investments in construction, government consumption expenditure, and household spending," said Romulo Virola, head of the government's statistics board.

Analysts had expected the Southeast Asian economy to expand by a seasonally adjusted 2.0 percent in the second quarter and to reverse the previous quarter's revised 2.1 percent contraction, according to the median of a Reuters poll.

The data justified the central bank's decision last week to end an eight-month easing cycle, Diwa Guinigundo, a central bank deputy governor, told Reuters by text message.

"This clearly shows stronger signs of economic recovery," he said. "The recent decision to pause was correct, from which perspective, a possible shift in monetary policy may be decided."

STEADY RATES

The central bank last week kept its interest rate at a record low of 4.0 percent to join its Asian peers in assessing the impact of accommodative policies. It has cut rates by 2 percentage points in eight month

Analysts said the government will likely sustain spending and the central bank may keep rates steady for the rest of the year.

"Fiscal policies will very likely have to remain in expansionary mode," Vishnu Varathan, economist at Forecast. "The BSP is likely to keep rates steady at current record lows even with this growth uptick."

On an annual basis, second-quarter GDP climbed 1.5 percent, also higher than market estimates, and the government said it was likely to breach its full-year growth target this year and next.

The government had expected second-quarter growth to come in between a 0.1 percent contraction and 0.9 percent expansion from a year earlier.

Government spending climbed 9.1 percent in the second quarter from a year earlier, twice as fast as the 4.5 percent expansion in the first three months.

Private spending grew 2.2 percent in April to June from a year earlier, higher than the 1.3 percent gain in the first quarter. Consumption fuels about three-fourths of the economy.

The Philippines is one of few countries in Asia to escape recession amid the worst downturn in decades. Export-led economies such as Japan, Hong Kong, Singapore and Taiwan tumbled as demand from Western markets collapsed.

Japan, Hong Kong, Singapore and Thailand pulled out of their downturns in the second quarter but consumer demand remains weak, fueling worries about the sustainability of a global recovery.

Economists also fear that newfound growth could sputter as the impact of government stimulus spending wanes.

http://i22.photobucket.com/albums/b304/fighter24/PH_GDP0809.gif

http://ph.news.yahoo.com/rtrs/20090827/tbs-philippines-economy-gdp-8bedc88.html

^^ even i was surprised that GDP increased more than 1%, when getting even 0.5% seemed unclear.. surely our economy is really resilient... :cheers:

^^Sana nga magtuloy-tuloy, pero normally maganda ang performance ng last two quarters kasi mataas ang consumer spending during this period.

^^ it's the last quarter that's often the best quarter... Christmas season kasi, kaya mataas ang public spending...

Actually, we should all be pre-occupied with what is going on in the US because the world economy is at stake. It's affecting us here already, and the economic impact is more severe in third world countries. :)

With more than $10 trillion expected deficit within a decade only, let's find out what our tax rates are going to be over time as the purchasing value of the dollar continues to fall (read: inflation). I even have doubts if I will ever get my social security benefits when I reach the retirement age.

Were you born this morning? Obviously you are not catching on but anyway to each his own if you are not exactly getting what these forumers are trying to do.

There is a reason why my mother and my siblings are preparing for the future of my nephews here in the United States. Worse comes to worst, at least my nephews will never be homeless, we have at least 11 acres of land to our name aside from the homes we are currently paying a mortgage on but anyway..........

^^ GNP grew 4.4% including income from OFWs. :)

^^^^great news indeed! :cheers1:

^^
... and dont forget your 2nd amendment right ... you may need it to protect yourself and your family once the sh_t hits the fan ... :)

... American forefathers knew this will happen... the Republic (not democracy) will eventually succumb to constant pressure from the banker wolves and now they are running amok bailing out their wallstreet casino friends by loans(through t bills and bonds) and monetizing debt printing American future away :ohno: ... imagine additional 10T in 10 years???
... As Max Keiser have put it... that amount is enough to pay off all your citizens mortgage and credit card debt instead the bankers running your govt bailed out their gambling friends from wallstreet casino...

... BTW i have no ill intentions for Americans, I have relatives from Ohio, Chicago and Hawaii... :) ... im just extending my concerns for them to this forum... SO IF YOU CANT TAKE IT... DONT READ IT!!! :)

Peter Schiff Was Right: 2002 - 2009
It31BMYJvmU

Were you born this morning? Obviously you are not catching on but anyway to each his own if you are not exactly getting what these forumers are trying to do.

There is a reason why my mother and my siblings are preparing for the future of my nephews here in the United States. Worse comes to worst, at least my nephews will never be homeless, we have at least 11 acres of land to our name aside from the homes we are currently paying a mortgage on but anyway..........

Yes, you should prepare for the gloomy future of your country. Tama yang ginagawa ng pamilya mo. Extra effort pa:lol:

^^

This is the great news I've been waiting for!

_____________________________________

Filipinos are definitely beating the odds............

But let's face it........... we still have to keep a tight watch on the economy because the world economy hasn't fully recovered.............

nakahinga rin tayo ng maluwag. expect better results in Q3 and especially Q4 dahil sobrang taas ng market spending sa mga quarters na ito. not sure with Q3 but definitely Q4.

Were you born this morning? Obviously you are not catching on but anyway to each his own if you are not exactly getting what these forumers are trying to do.

There is a reason why my mother and my siblings are preparing for the future of my nephews here in the United States. Worse comes to worst, at least my nephews will never be homeless, we have at least 11 acres of land to our name aside from the homes we are currently paying a mortgage on but anyway..........

I caught on. I'm actually gearing my land back home for agri production.

I want to retire by 40's while my grafted mango trees will do the work by that time. :)

I caught on. I'm actually gearing my land back home for agri production.

I want to retire by 40's while my grafted mango trees will do the work by that time. :)
Oh we dont have to worry about that, we have property in the Philippines as well. :cheers:

Yes, you should prepare for the gloomy future of your country. Tama yang ginagawa ng pamilya mo. Extra effort pa:lol:

At least we are seeing the fruits of our labor, I doubt you can say the same for the people in your country.

METRO MANILA WORKERS MUST TOIL MORE TO AFFORD A BIG MAC
Business World

METRO MANILA workers have to toil roughly twice longer than the global average to earn enough for a Big Mac, again placing nearly at the bottom of purchasing power rankings in this year’s UBS Prices and Earnings study.

An hour and 18 minutes’ work equals a Big Mac in Metro Manila. The metropolis ranked 71st out of 73 cities in terms of domestic purchasing power or the ratio of wages to local prices, only a notch improved from when it placed second to the last in 2006.

Workers here must put in 88 minutes — seven more than in 2006 and more than double than the 37-minute global average — to be able to afford the fast-food chain’s burger.

The city’s purchasing power index score of 18.7, however, is up 38.5% from the 13.5 recorded in 2006.

The UBS study, conducted every three years, bases the comparison on the average wage of 14 professions and price of a standard basket of 122 goods and services in March 2009.

It is in Zurich where workers get the most bang for their buck, followed by Sydney, Luxemborg, Dublin and Miami.

Manila is better off than last-placer Jakarta but is outranked by the three other Southeast Asian cities on the list: Kuala Lumpur, Singapore, and Bangkok.

The poor ranking came even as the cost of living in the Philippine city was said to be still among the lowest in the world. Prices of goods and services here are third to the cheapest among the 73 countries, bested only by Delhi and Mumbai.

The study mentions specifically that, "nowhere in the world is clothing cheaper than in Kuala Lumpur and Manila".

The price gap among easy-to-transport goods such as food, clothing, and electronics is small across cities, while prices for services fluctuate more.

"Thanks to countless international trade agreements and efforts to eliminate protective tariffs, people and companies can now buy a seemingly limitless variety of products and exploit the relative cost advantages of the global marketplace," the UBS study stated.

"[But the gap in prices of services] persists because virtually no trade exists between countries for many services," it added.

The low prices in Manila are offset by the similarly low wages earned by its workers. Wage levels in the city ranked 71st out of 73, higher than only Jakarta’s and Mumbai’s and again outpaced by the three other Southeast Asian neighbors.

"Zurich and Geneva top the rankings in our international comparison of wages. By contrast, the average employee in Delhi, Manila, Jakarta and Mumbai earns less than one-fifteenth of that amount," the study stated.

Even as the study notes that "what really matters is how many goods and services workers can buy" after taxes, net hourly income in Manila remained third from the bottom of the list.

Sought for comment, University of Asia and the Pacific economist Peter Lee U said in a telephone interview: "To improve purchasing power, it’s more of a question of income really, and the increase in the level of development... since our prices are relatively low."

"Income is tied up to people’s productivity so investing in people I guess, in education, will mean higher-paying jobs."

Mr. U noted, however, that the ranking does not mean Metro Manila is among the poorest in the world.

"I’m sure there are other poorer cities not included," he said.

http://www.bworldonline.com/BW082009/content.php?id=005

At least we are seeing the fruits of our labor, I doubt you can say the same for the people in your country.

Perhaps to some...

And of course you can buy lots of properties in Nevada since the prices plunged to as low as 65% of its original value. And hopefully it'll continue so my relatives in Canada can continue buying. Who knows, some people here would be able to buy properties in your state if it reached its lowest level. :)

Nevada has always been cheap and it should remain cheap like its people;)

I hope the government will revive the our manufacturing and agricultural sector to accelerate growth, employment and income domestically.:)

Also, austerity measures to reduce budget deficits.:)

Manila Times

Friday, August 28, 2009


ECONOMY GROWS, DODGES RECESSION

By Darwin G. Amojelar, Senior Reporter

The Philippine economy dodged a recession, posting a modest growth in the second quarter thanks to huge government spending on infrastructure, officials said Thursday.

In a media briefing, Romulo Virola, secretary-general of the National Statistical Coordination Board (NSCB), said the economy as measured by gross domestic product (GDP) grew 1.5 percent from April to June. The rate of growth was lower compared with the 4.2-percent figure reported in the same quarter last year.

GDP, a key economic indicator, is the total value of all final goods and services produced in a country in a year.

The second-quarter GDP performance was an improvement over the revised 0.59-percent economic growth in the first quarter. It also exceeded the government’s forecast of negative 0.1 percent to 0.9 percent growth for the period.

From January to June, the economy grew 1 percent—also slower than the 4 percent growth in the first half of 2008.

The growth was supported by the services and agriculture sectors, which expanded by 3.1 percent and 0.3 percent, respectively.

But the industry sector was still in contraction with 0.3 percent mainly because of manufacturing.

Drivers of growth

“The Economic Resiliency Plan and the reinvigorated construction and mining and quarrying sectors resuscitated the domestic economy during the second quarter,” Virola said.

Improving exports, which are key to the economy, also helped growth so far this year. Although shipments in June fell 24.7 percent year-on-year, they have been steadily rising and were 10.4 percent higher than the previous month.

The government also put aside $330 billion ($6.75 billion) in its 2009 budget to pay for various projects to boost spending at home.

The gross national product (GNP) rose 4.4 percent in the second quarter. But that too is slower than the 5.3 percent growth in the same period last year.

GNP refers to the total value of goods produced by all Filipinos around the world.

‘Weak’ performance

Benjamin Diokno, former Budget secretary during the Estrada administration, said that the first half’s economic performance was “quite weak,” if the effects of government pump priming programs were discounted.

“[Government] spending is not sustainable given the worsening fiscal situation,” he explained.

Diokno added that the key driver of the GDP growth should still consumer and investor confidence. “The first has short term implications, investor confidence more on long term concerns.”

Augusto Santos, acting socioeconomic planning secretary said the 1.5-percent GDP growth was higher than the official growth forecast that range from negative 0.1 percent to 0.9 percent.

He said the Philippines remained as one of the few enjoying positive GDP growth rates in the second quarter.

Job generation

Santos added that despite earlier setbacks this year, employment growth was broad-based as employment grew strongly by 4.3 percent.

He added that employment generation reached 1.5 million, and the unemployment rate improved to 7.5 percent from 8 percent a year ago.

“Government and private sector hiring programs, flexible working arrangements, and the frontloading of infrastructure projects under the Economic Resiliency Plan, all helped cushion the economy’s growth and unemployment from the global recession,” Santos said.

Santos said the key growth drivers for 2009 are trade, business process outsourcing, construction, mining and quarrying, private and government services.

“Positive prospects are seen in new markets for agricultural products, in medical tourism, in election spending during the next quarters, in the green industries, in renewable energy and in the growing profit opportunities from measures concerning climate change adaption and mitigation,” Santos added.

METRO MANILA WORKERS MUST TOIL MORE TO AFFORD A BIG MAC
Business World

METRO MANILA workers have to toil roughly twice longer than the global average to earn enough for a Big Mac, again placing nearly at the bottom of purchasing power rankings in this year’s UBS Prices and Earnings study.

An hour and 18 minutes’ work equals a Big Mac in Metro Manila. The metropolis ranked 71st out of 73 cities in terms of domestic purchasing power or the ratio of wages to local prices, only a notch improved from when it placed second to the last in 2006.

Workers here must put in 88 minutes — seven more than in 2006 and more than double than the 37-minute global average — to be able to afford the fast-food chain’s burger.


With minimum salary of 320 pesos per day (excluding overtimes and other perks), workers in the Philippines should buy more nutritious food like vegetable instead of wasting money in buying an overpriced "walang lasang" hamburjer.:lol::lol:

Yes, you should prepare for the gloomy future of your country. Tama yang ginagawa ng pamilya mo. Extra effort pa:lol:

Perhaps to some...

And of course you can buy lots of properties in Nevada since the prices plunged to as low as 65% of its original value. And hopefully it'll continue so my relatives in Canada can continue buying. Who knows, some people here would be able to buy properties in your state if it reached its lowest level. :)

Nevada has always been cheap and it should remain cheap like its people;)


Agree!:lol::lol:

RP beats estimates, grows 1.5% in second quarter

By Ted P. Torres
(The Philippine Star)
Updated August 28, 2009 12:00 AM

MANILA, Philippines - The Philippine economy escaped from the threat of recession as it grew 1.5 percent in the second quarter – beating most market estimates – as the government’s stimulus package boosted spending in infrastructure and social services during the period, officials said yesterday.

Gross domestic product (GDP), the broad measure of the country’s output of goods and services, expanded 1.5 percent year-on-year in the second quarter, an improvement from the revised 0.6 percent growth in the first three months of 2009, the National Statistical Coordination Board (NSCB) said in a report.

On a seasonally adjusted basis, GDP grew 2.4 percent in the second quarter, “effectively avoiding recession” after a revised 2.1 percent contraction in the previous three months. A technical recession is judged as two consecutive quarters of negative growth.

The Philippines is one of few countries in Asia to escape recession amid the worst downturn in decades. Export-led economies such as Japan, Hong Kong, Singapore and Taiwan tumbled as demand from Western markets collapsed.

Japan, Hong Kong, Singapore and Thailand pulled out of their downturns in the second quarter but consumer demand remains weak, fueling worries about the sustainability of a global recovery.

“The economic resiliency plan of the government boosted construction consumption (growth) to 9.1 percent from zero growth in (the same period in) 2008,” NSCB chief Romulo Virola told a news conference.

National Economic and Development Authority (NEDA) acting Director General Augusto Santos said the moderate growth in the second quarter surpassed the official growth forecast of –0.1 to 0.9 percent.

“The development occurred amidst signals that the global economic recovery was underway, with some industrialized countries already exiting their respective recessions, like France and Germany,” he said in a statement.

Santos said key growth drivers were trade, business process outsourcing, construction, mining and quarrying, private and government services.

“Positive prospects are seen in new markets for agricultural products, also in medical tourism, in election spending during the next quarters, in the green industries, in renewable energy, and in the growing profit opportunities from measures concerning climate change adaptation and mitigation,” he added.

In the first semester, GDP growth registered at one percent from a year earlier.

With the positive performance in the second quarter, the Philippines should surpass an annual growth target of 0.8 – 1.8 percent this year as the government expects election-related spending to start in the second half, fuelling higher consumption, another NEDA official said. – With AP:cheers:

Geez the mentality of the people here are quite amusing. There are many people reading the posts on this thread including the moderators so carry on.

Peter Schiff quotes

"You don’t drive an economy by consuming – the consumer is not the engine, the consumer is the caboose."



Worst is Over

Consumer spending, which accounts for about 70 percent of the economy, rose 2.2 percent last quarter from a year earlier. The “worst is over” for the country’s retailers and the industry will grow moderately this year, the Manila Times cited Philippine Retailers Association Chairman Jorge Mendiola as saying Aug. 14.

Economies Recover (Update2)

http://www.bloomberg.com/apps/news?p...d=ar_wJzxh7GcM
By Karl Lester M. Yap and Cecilia Yap


--------


Bravo Philippines Bravo!!!:)

Mmmm... I wonder just how much of this (economic growth reported) can be truly attributed to GMA's policies/strategies versus simply improving global economic situation. Even Vitenam and Indonesia posted better growth figures than the Philippines for that matter. Just that I'm quite worried about the debt and debt-servicing the country is and will be facing for many years to come while many of our fellow Filipinos continue to struggle...

ECONOMY GROWS, DODGES RECESSION
By Darwin G. Amojelar, Senior Reporter
Manila Times
http://www.manilatimes.net/national/2009/aug/28/yehey/top_stories/20090828top5.html

The Philippine economy dodged a recession, posting a modest growth in the second quarter thanks to huge government spending on infrastructure, officials said Thursday.

In a media briefing, Romulo Virola, secretary-general of the National Statistical Coordination Board (NSCB), said the economy as measured by gross domestic product (GDP) grew 1.5 percent from April to June. The rate of growth was lower compared with the 4.2-percent figure reported in the same quarter last year.

GDP, a key economic indicator, is the total value of all final goods and services produced in a country in a year.

The second-quarter GDP performance was an improvement over the revised 0.59-percent economic growth in the first quarter. It also exceeded the government’s forecast of negative 0.1 percent to 0.9 percent growth for the period.

From January to June, the economy grew 1 percent—also slower than the 4 percent growth in the first half of 2008.

The growth was supported by the services and agriculture sectors, which expanded by 3.1 percent and 0.3 percent, respectively.

But the industry sector was still in contraction with 0.3 percent mainly because of manufacturing.

Drivers of growth

“The Economic Resiliency Plan and the reinvigorated construction and mining and quarrying sectors resuscitated the domestic economy during the second quarter,” Virola said.

On a seasonally adjusted quarter-to-quarter basis, the economy turned around to 2.4 percent from the 2.1 percent contraction posted in the first quarter.

Virola said the quarter-to-quarter growth spared the Philippines from a recession, which had threatened the economy. The 2.1 percent growth was a downgraded figure, announced as the economic managers warned that the country should brace for the worst from the fallout of the global financial crisis.

Improving exports, which are key to the economy, also helped growth so far this year. Although shipments in June fell 24.7 percent year-on-year, they have been steadily rising and were 10.4 percent higher than the previous month.

The government also put aside $330 billion ($6.75 billion) in its 2009 budget to pay for various projects to boost spending at home.

The gross national product (GNP) rose 4.4 percent in the second quarter. But that too is slower than the 5.3 percent growth in the same period last year.

GNP refers to the total value of goods produced by all Filipinos around the world.

‘Weak’ performance

Benjamin Diokno, former Budget secretary during the Estrada administration, said that the first half’s economic performance was “quite weak,” if the effects of government pump priming programs were discounted.

“[Government] spending is not sustainable given the worsening fiscal situation,” he explained.

Diokno added that the key driver of the GDP growth should still consumer and investor confidence. “The first has short term implications, investor confidence more on long term concerns.”

Augusto Santos, acting socioeconomic planning secretary said the 1.5-percent GDP growth was higher than the official growth forecast that range from negative 0.1 percent to 0.9 percent.

“The development occurred amid signals that the global economic recovery was underway, with some industrialized countries already exiting from recession, like France and Germany,” Santos said.

He said the Philippines remained as one of the countries enjoying positive GDP growth rates in the second quarter.

As measured by GDP, China’s economy grew 7.1 percent; Vietnam, 4.5 percent; and Indonesia 4 percent.

Others contracted: Taiwan, minus 7.5 percent; Japan, minus 6.4 percent; Thailand, minus 4.9 percent; Malaysia, minus 3.9 percent; Hong Kong, minus 3.8 percent; Singapore, minus 3.5 percent; and South Korea, minus 2.5 percent.


____________



Reality Check: Data affirm slim escape from recession
Manila Times
http://www.manilatimes.net/national/2009/aug/28/yehey/opinion/20090828opi1.html

THE Philippine economy registered positive growth in the second quarter this year, thus affirming that the country has narrowly escaped a recession.

According to the National Statistical Coordination Board (NSCB), pump priming by the government helped gross domestic product (GDP) grow by 1.5 percent in the three-month period ending June.

This is a respectable correction of the 0.4-percent growth in the first quarter, during which the NSCB said the country was “teetering into a recession.”

The NSCB squarely attributed the second-quarter economic improvement to the government’s Economic Resiliency Plan (ERP), the Philippines’ version of the fiscal stimulus packages being implemented in other parts of the world amid the worst downturn since the 1930s Great Depression.

State consumption grew 9.1 percent in the second quarter, an improvement over the no-growth situation seen in the same three-month period last year.

Construction picked up to 11 percent in the April to June period this year, with public construction jumping nearly 30 percent year-on-year.

Finally, the Arroyo administration’s spending tack—and we do not mean to include the Palace’s foreign trips—is bearing fruit.

To recall, President Gloria Arroyo had instructed key agencies, namely the Departments of Public Works and Highways, of Transportation and Communications, of Education, and of Agriculture to spend at least 60 percent of the productive portions of their allocation in the first half of this year.

While initial data from the National Economic and Development Authority showed that the four agencies’ spending had fallen below the Palace directive, we suppose a correction is forthcoming given the stellar performance of public expenditures in propping up the whole economy in the second quarter.

Having said the above, we must not forget that the Philippines is not entirely out of the woods just yet.

The fiscal boost to GDP comes at a price, namely the reversal of the government’s gains in narrowing its budget deficit.

True, other governments around the world are trying to spend their way out of a recession.

But unlike many of those governments, the Philippines suffers from a structural fiscal weakness: a tax collection system shot through with holes.

So far, the Arroyo government has managed to boost spending by jacking up its borrowings, especially from abroad.

As our debt debacle showed in the mid-1980s, we cannot rely on this fiscal tack for so long.

Internally generated funds—particularly, tax collections—should pick up the tab left behind by expansionary government spending.

Pending administrative and legislative measures should be pursued in earnest.

Without these reforms, the Philippines’ next president may end up being so tied down by the work of cleaning up the fiscal rubble the Arroyo administration left behind that he or she could do nothing else.

Worse, any economic recovery from the global turmoil would be hobbled by the country’s weak fiscal stance, preventing it from truly taking off.

Let's hope that the 2nd half will be better...

It's Official: First-half GDP growth at 1%
Written by Cai U. Ordinario / Reporter
Friday, 28 August 2009
Business Mirror
http://www.businessmirror.com.ph/home/top-news/15269-first-half-gdp-growth-at-1-.html

IT’S official: The National Statistical Coordination Board (NSCB) said the country managed to grow only by 1 percent in gross domestic product (GDP) in the first six months due to the continued contraction of the manufacturing sector and weak export performance, the results of the global financial crisis.

National Income Accounts data showed GDP posted a 1.5-percent growth in the second quarter and gross national product (GNP), fueled by Net Factor Income from Abroad (NFIA), had a growth of 4.4 percent.

GNP in the first half was pegged at 3.8 percent while NFIA posted a growth of 27.3 percent in the January to June period. In the second quarter, NFIA, composed mainly of overseas Filipino workers’ (OFW) remittances, was pegged at 29.7 percent.

“The modest economic growth benefited from the reinvigorated construction and mining and quarrying sectors, and the big push by government services. However, it was adversely affected by the second- consecutive quarter of decline in the manufacturing sector,” NSCB Secretary-General Romulo Virola said at a briefing in Makati City.

“The decline of the industry [sector] comes from manufacturing [with negative 4.81 percentage points], which could not be offset by the positive contributions of all the other sectors. The subsectors that caused the decline of manufacturing the most were products of petroleum and coal, food manufactures, and footwear [and] wearing apparel,” he added.

However, this was an improvement from the 0.6-percent GDP growth in the first quarter and “may already bode well for the economy considering that other countries in the region are still posting negative growth.”

Acting National Economic and Development Authority (Neda) Director General Augusto Santos said the Philippines is one of the few countries in the region that continues to enjoy positive growth.
Other countries that posted positive growth were China with 7.1 percent, Vietnam with 4.5 percent and Indonesia with 4 percent.

Other Asian economies are still reeling from the global financial crisis as seen in their negative growths—Taiwan with a contraction of 7.5 percent; Japan, a contraction of 6.4 percent; Thailand, -4.9 percent; Malaysia, -3.9 percent; Hong Kong, -3.8 percent; Singapore, -3.5 percent; and South Korea, -2.5 percent.

With this “modest growth,” the Neda said that in order to attain the high end of the 0.8-percent to 1.8-percent growth by year-end, the country needs to post growth in the second half of 2.6 percent.

Neda National Planning and Policy Staff Director Dennis Arroyo said the 2.6 percent may be attainable considering that government spending, particularly for construction projects under the Economic Resiliency Plan, is expected to kick in in the third quarter.

Election spending in the second half of the year, particularly after the filing of candidacies in November, would be another major factor, Arroyo said.

But Santos said the Neda will not recommend any upward revision to government full-year targets.
Economists’ positive outlook

Economists’ reactions to the GDP data are positive, and they expect succeeding quarters would also see positive growth.

Former Neda chief Dr. Cielito Habito said that while he could not provide a projection based on the recent second-quarter data, he is confident that election spending and better global conditions will make positive economic growth possible in the second semester.

However, former budget secretary Dr. Benjamin Diokno said the second-quarter growth may be a manifestation of what Deutsche Bank Group chief economist Dr. Norbert Walter said about a “triple U” recovery.

Dr. Walter said that real recovery will come after “three bumps,” the last of which will be felt in 2011 when the global economy would come out of the crisis completely. “This could be a part of a double-dip recovery that some economists are talking about. Deutsche Bank Group chief economist Prof. Norbert Walter talks of a ‘triple U’ recovery with real recovery taking place in 2011,” added Diokno.

NSCB data showed services (3.1-percent rise) and agriculture, fishery and forestry (0.3 percent) were the sectors that kept the economy afloat in the second quarter, while industry pulled down growth at a rate of -0.3 percent.

On the demand side, the NSCB said growth came mainly from investments in construction, government consumption expenditure and household spending, which all rose above their first-quarter levels.

The NSCB also announced revisions in the first-quarter GDP and GNP data. Virola said first-quarter GDP was revised upward to 0.6 percent from 0.4 percent, while GNP was revised downward to 3.1 percent from 4.4 percent.
Virola said the revision in GNP was mainly due to the downward revision of NFIA to 25.8 percent from 40.8 percent. Virola said the significant downward revision in NFIA was due to the revision by the Philippine Overseas Employment Administration of its deployment figures.


_______________________


Business getting optimistic, poll shows
Positive outlook for Q2 and Q3
By Michelle Remo
Philippine Daily Inquirer
08/28/2009
http://business.inquirer.net/money/topstories/view/20090828-222333/Business-getting-optimistic-poll-shows

MANILA, Philippines - Believing the worst of the global economic turmoil is over, businessmen have turned optimistic in their outlook on the economy and confident about the profitability of their businesses.

This was according to the results of the Bangko Sentral ng Pilipinas’ Business Expectation Survey [BES], which showed that in the third quarter of the year, the business confidence index hit +18.4 percent, a turnaround from

-12.9 percent in the same quarter last year and from -2.6 percent in the second quarter of this year.

The confidence index shows the difference between the number of optimists and pessimists in the sector. A positive index means more respondent firms said they were “optimistic” about their profitability during the quarter than those who said they were “pessimistic.”

“The increase in the index in the third quarter (by 31.3 index points) was the most pronounced year-on-year jump we have so far seen,” Ma. Cyd Tuano Amador said in a briefing yesterday.

There were 1,389 firms nationwide that served as respondents to the survey, which was conducted from the first week of July until Aug. 14. Of the respondents, 514 were based in the national capital region.

Rosabel Guerrero, director for economic statistics department of the BSP, attributed the improved sentiment of businesses in the country to the resiliency of the economy amid the global crisis. Specifically, she said, respondents’ sentiments were buoyed by the low inflation rate, low interest rates, relative stability of the peso and news about the gradual recovery of the world economy.

She added that firms were glad about the continued increase in remittances sent to the Philippines despite the global economic turmoil. According to BSP data, remittances amounted to $8.5 billion in the first half of the year, up 2.9 percent from a year ago.

Remittances help fuel household consumption, which is a major growth driver for the economy.

The National Statistical Coordination Board [NSCB] yesterday reported that the Philippine economy, measured in terms of gross domestic product, grew by 1.5 percent year on year in the second quarter, from the revised 0.6-percent growth in the first quarter.

The survey divided the respondents into four major sectors: Industry (whose confidence index was +18.8 percent), construction (+37.3 percent), wholesale and retail trade (+12.8 percent) and services (+20.2 percent).

“The respondent firms said they were bullish about their operations and about the economy’s performance,” Guerrero said.

Survey respondents also have positive outlook for the fourth quarter. The next-quarter confidence index stood at +33.7 percent.

:cheers:
Billionaire Tan, Star Cruises to Open Manila’s Biggest Casino
http://www.bloomberg.com/apps/news?pid=20601080&sid=aWGECT6jQeOI

By Ian C. Sayson

Aug. 28 (Bloomberg) -- Philippine billionaire Andrew Tan and Star Cruises Ltd. will today open their $700 million Resorts World Manila, which may more than double the city’s casino revenue.

“Our expectation is this will contribute to earnings within the first year of operations,” said Kingson Sian, president of Alliance Global Group Inc., the holding company of Tan, the Philippines’ fourth-richest person. “We believe in the potential of Philippine tourism.”

The venture, Travellers International Hotel Group Inc., will open the first floor of a three-level casino at a complex that will include hotels and a shopping mall. Resorts World Manila may earn 21 billion pesos ($430 million) in gambling revenue next year, compared with the city’s 17 billion pesos in 2008, according to Macquarie Group Ltd. analysts.

“This can create a lot of buzz and attract regional players into the Philippines,” said Manila-based CLSA Ltd. analyst Raffy Manalaysay. “It can help the government to get its casino project moving.”

Alliance Global rose 5 percent to 5.10 pesos yesterday in Manila trading, boosting its gain this year to 193 percent. Star Cruises’ Hong Kong-traded and Singapore-listed shares have more than tripled.

The resort will draw 11.1 million visitors and raise $315 million in gambling taxes over three years, Sian said.

Earnings Estimates

Travellers will make 6.41 billion pesos in net income next year on sales of 23.04 billion pesos, Macquarie analysts Nadine Javellana, Edward Ong and Alex Pomento said in an Aug. 10 report. The company’s profit will reach 7.44 billion pesos in 2011 on revenue of 25.02 billion pesos, they said.

Sian declined to comment on Macquarie’s forecasts.

The participation of Star Cruises will allow the project to tap the cruise operator’s network of more than 2.5 million customers, he said. Star Cruises operates casinos on its ships.

The resort will provide bus services for Filipinos living outside Manila, Sian said.

“The whole idea for this kind of investment is to grow the market and not grab from the existing businesses,” he added. We have a product that we can market for tourists to come in a big way. This is not just a casino.”

The project, occupying part of a former military camp near Manila’s airport, will have three hotels with 1,574 rooms, a 30,000 square meter (323,000 square feet) casino and a 30,000 square meter shopping mall.

The resort’s casino will have 300 tables and more than 1,000 slot machines by the end of the year, when all three floors will be ready, Sian said. The 100 tables that will be ready today already make it the Philippines’ biggest casino.

Asia’s Gambling Boom

Philippine Amusement, the casino regulator and state-owned casino operator, owns four casinos in Manila with a total of 293 tables, according government data. Pagcor Pavilion, the state-owned company’s biggest casino, has 92 tables.

The opening of Resorts World Manila is another step in the Philippines’ effort to tap Asia’s gambling boom. The casino resort could gain a 2 percent share of revenue earned from high rollers in Asia, estimated at $10.9 billion, the Macquarie analysts said.

Macau, the only city in China where casinos are legal, surpassed the Las Vegas Strip as the world’s biggest gambling hub in 2006.

In Singapore, Las Vegas Sands Corp. is building the Marina Bay Sands casino resort, estimated to cost more than $5.25 billion, to compete with the S$6.6 billion ($4.6 billion) project being built by Malaysian casino operator Genting Bhd.

Travellers is one of four groups that won approval last year to build hotels and casinos within the $20 billion Pagcor City on Manila Bay, a project of the government’s Philippine Amusement & Gaming Corp.

Sian said Travellers may start building its share of the project as early as next year. The venture last year committed to spend $1.1 billion to develop 91 acres in Pagcor City into a complex of hotels with 3,400 rooms and a theme park.

Star Cruises is controlled by Genting and its Chairman Lim Kok Thay, according to data compiled by Bloomberg. Genting shares have gained 78 percent this year.

RP beats estimates, grows 1.5% in second quarter (http://www.philstar.com/Article.aspx?articleId=499995&publicationSubCategoryId=66)
By Ted P. Torres (The Philippine Star (http://www.philstar.com/Article.aspx?articleId=499995&publicationSubCategoryId=66)) Updated August 28, 2009 12:00 AM

MANILA, Philippines - The Philippine economy escaped from the threat of recession as it grew 1.5 percent in the second quarter – beating most market estimates – as the government’s stimulus package boosted spending in infrastructure and social services during the period, officials said yesterday.

Gross domestic product (GDP), the broad measure of the country’s output of goods and services, expanded 1.5 percent year-on-year in the second quarter, an improvement from the revised 0.6 percent growth in the first three months of 2009, the National Statistical Coordination Board (NSCB) said in a report.

On a seasonally adjusted basis, GDP grew 2.4 percent in the second quarter, “effectively avoiding recession” after a revised 2.1 percent contraction in the previous three months. A technical recession is judged as two consecutive quarters of negative growth.

The Philippines is one of few countries in Asia to escape recession amid the worst downturn in decades. Export-led economies such as Japan, Hong Kong, Singapore and Taiwan tumbled as demand from Western markets collapsed.

Japan, Hong Kong, Singapore and Thailand pulled out of their downturns in the second quarter but consumer demand remains weak, fueling worries about the sustainability of a global recovery.

“The economic resiliency plan of the government boosted construction consumption (growth) to 9.1 percent from zero growth in (the same period in) 2008,” NSCB chief Romulo Virola told a news conference.

National Economic and Development Authority (NEDA) acting Director General Augusto Santos said the moderate growth in the second quarter surpassed the official growth forecast of –0.1 to 0.9 percent.

“The development occurred amidst signals that the global economic recovery was underway, with some industrialized countries already exiting their respective recessions, like France and Germany,” he said in a statement.

Santos said key growth drivers were trade, business process outsourcing, construction, mining and quarrying, private and government services.

“Positive prospects are seen in new markets for agricultural products, also in medical tourism, in election spending during the next quarters, in the green industries, in renewable energy, and in the growing profit opportunities from measures concerning climate change adaptation and mitigation,” he added.

In the first semester, GDP growth registered at one percent from a year earlier.

With the positive performance in the second quarter, the Philippines should surpass an annual growth target of 0.8 – 1.8 percent this year as the government expects election-related spending to start in the second half, fuelling higher consumption, another NEDA official said. – With AP

:cheers:

Signs of recovery in industrial sales--Meralco

[The Manila Times, Philippines]
(Manila Times (Phillipines) Via Acquire Media NewsEdge) Aug. 28--THE Philippines' biggest electricity distributor said its industrial sales are showing signs of a recovery.

In a press conference Thursday, Jose de Jesus, Manila Electric Co. (Meralco) president, said the utility's industrial sales, which took a hit from the global economic crisis, have begun improving.

From a dip of 18.70 percent at the start of the year, industrial sales, which constitute less than a third of its revenues, contracted by a slower 5.90 percent in July.

"Every month since January, it's been improving by about 1.60 percent. And the overall also turned positive for the first time even though it's very small," de Jesus said.

In terms of sales volume, Meralco's industrial account reached 4,111 gigwatt-hours at end-July, or a 5.84-percent decline from 4,366 gigawatt-hours in the same period in 2008.

Overall, Meralco's sales turned positive, inching up 0.10 percent, or 15,396 gigawatt-hours from a decline of 0.50 percent, or 15,379 gigawatt-hours over the same period.

Meralco serves the electricity needs of 4.63 million customers in Metro Manila and outlying provinces.

Despite enjoying the largest franchise area and customer base in the country, the company's sales at the start of the year slumped after exporting industrial customers took a hit from the global slowdown.

De Jesus said that around 80 percent of Meralco's industrial customers belong to the semiconductor manufacturing business, whose main markets are large economies abroad.

The Meralco official said the company projects to achieve a flat growth for the year.

"If indeed the economy will continue to recover, our sales almost correlates with the growth in the economy--so while we are forecasting a flat [growth] we are hoping sales growth will be positive," he said.
http://www.tmcnet.com/usubmit/-signs-recovery-industrial-sales-meralco-manila-times-philippines-/2009/08/28/4343995.htm?p=news

Bank Holiday, FDIC Report, and the Federal Reserve Secrets
sgykOHHCtDM

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAOhgVw78e3U#


Federal Reserve Says Disclosing Loans Will Hurt Banks (Update1)

By Mark Pittman

Aug. 27 (Bloomberg) -- The Federal Reserve argued yesterday that identifying the financial institutions that benefited from its emergency loans would harm the companies and render the central bank’s planned appeal of a court ruling moot.

The Fed’s board of governors asked Manhattan Chief U.S. District Judge Loretta Preska to delay enforcement of her Aug. 24 decision that the identities of borrowers in 11 lending programs must be made public by Aug. 31. The central bank wants Preska to stay her order until the U.S. Court of Appeals in New York can hear the case.

“The immediate release of these documents will destroy the board’s claims of exemption and right of appellate review,” the motion said. “The institutions whose names and information would be disclosed will also suffer irreparable harm.”

The Fed’s “ability to effectively manage the current, and any future, financial crisis” would be impaired, according to the motion. It said “significant harms” could befall the U.S. economy as well.

The central bank didn’t say when it would file its appeal.

Fed lawyer Kit Wheatley told Preska in a conference call today that she did not know how long it would take for the Fed board to search the New York Fed for records.

“We really don’t know what’s in New York,” Wheatley said. “We don’t control the system of record-keeping in New York.”

The Standard

The Fed’s lawyer went on to say that she did not know what records would fall under a “delegated function,” which would be a task assigned to the New York Fed.

Preska interrupted Wheatley, saying that “Ms. Wheatley, I held that’s not the standard. You didn’t search under the regulation. You’re supposed to search under the regulation.”

Preska scheduled another conference call for 2:30 p.m. today to discuss the schedule for a search of the New York Fed.

“Nobody is going to deny you your right to an appeal,” Preska said on the call, “We’re going to do it expeditiously, not in a piecemeal fashion and hand it all off to the Second Circuit.”

The Fed has refused to name the financial firms it lent to or disclose the amounts or the assets put up as collateral under the emergency programs, saying disclosure might set off a run by depositors and unsettle shareholders.

Bloomberg LP, the New York-based company majority-owned by Mayor Michael Bloomberg, sued on Nov. 7 under the Freedom of Information Act on behalf of its Bloomberg News unit.

Public Interest

“Our argument is that the public interest in disclosure outweighs the banks’ interest in secrecy,” said Thomas Golden, a lawyer with New York-based Willkie Farr & Gallagher LLP who represents Bloomberg.

Preska’s Aug. 24 ruling rejected the Fed’s argument that the records should remain private because they are trade secrets and would scare customers into pulling their deposits.

“What has the Fed got to hide?” said Senator Bernie Sanders, a Vermont independent who sponsored a bill to require the Fed to submit to an audit by the Government Accountability Office. “The time has come for the Fed to stop stonewalling and hand this information over to the public,” he said in an e- mail.

The Clearing House Association LLC, an industry-owned group in New York that processes payments between banks, filed a declaration that accompanied the request for a stay.

Negative Consequences

“Experience in the banking industry has shown that when customers and market participants hear negative rumors about a bank, negative consequences inevitably flow,” Norman Nelson, vice president and general counsel for the group, said in the document. “Our members have accessed the discount window with the understanding that the Fed will not disclose information about their borrowing, especially their identity.”

Members of the Clearing House are ABN Amro Holding NV, Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc.Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase Inc., UBS AG, U.S. Bancorp and Wells Fargo & Co.

The case is Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Mark Pittman in New York at mpittman@bloomberg.net
Last Updated: August 27, 2009 09:58 EDT

... the wallstreet gambling gangs threat that happened around the same time last year if the bailout wont be passed...
... this might have a repeat...

Rep. Brad Sherman Martial Law
HaG9d_4zij8

Philippine GDP surprises; c.bank eyes policy shift
Reuters - Thursday, August 27


* Economy reverses Q1 GDP fall with 2.4 pct growth in Q2

* Q2 growth higher than market estimates

* Quarter on quarter Q2 GDP growth highest in over two years

* C.bank says data could set the stage for policy shift

By Karen Lema

MANILA, Aug 27 - The Philippines economy dodged the recession that engulfed much of Asia and enjoyed its strongest performance in more than two years in the second quarter, prompting the central bank to say it may change its policy.

Second-quarter gross domestic product growth at a seasonally adjusted 2.4 percent from the first quarter was the highest since 2.4 percent in the first three months of 2007, the state socio-economic planning agency said on Thursday, and beat market estimates.

The government's stimulus package -- investments in infrastructure and social services -- lifted economic output in the second quarter, offsetting stubbornly weak exports. Officials said they expect stronger growth in coming quarters as consumer spending rises ahead of Christmas and next year's elections.

"Growth came mainly from investments in construction, government consumption expenditure, and household spending," said Romulo Virola, head of the government's statistics board.

Analysts had expected the Southeast Asian economy to expand by a seasonally adjusted 2.0 percent in the second quarter and to reverse the previous quarter's revised 2.1 percent contraction, according to the median of a Reuters poll.

The data justified the central bank's decision last week to end an eight-month easing cycle, Diwa Guinigundo, a central bank deputy governor, told Reuters by text message.

"This clearly shows stronger signs of economic recovery," he said. "The recent decision to pause was correct, from which perspective, a possible shift in monetary policy may be decided."

STEADY RATES

The central bank last week kept its interest rate at a record low of 4.0 percent to join its Asian peers in assessing the impact of accommodative policies. It has cut rates by 2 percentage points in eight month

Analysts said the government will likely sustain spending and the central bank may keep rates steady for the rest of the year.

"Fiscal policies will very likely have to remain in expansionary mode," Vishnu Varathan, economist at Forecast. "The BSP is likely to keep rates steady at current record lows even with this growth uptick."

On an annual basis, second-quarter GDP climbed 1.5 percent, also higher than market estimates, and the government said it was likely to breach its full-year growth target this year and next.

The government had expected second-quarter growth to come in between a 0.1 percent contraction and 0.9 percent expansion from a year earlier.

Government spending climbed 9.1 percent in the second quarter from a year earlier, twice as fast as the 4.5 percent expansion in the first three months.

Private spending grew 2.2 percent in April to June from a year earlier, higher than the 1.3 percent gain in the first quarter. Consumption fuels about three-fourths of the economy.

The Philippines is one of few countries in Asia to escape recession amid the worst downturn in decades. Export-led economies such as Japan, Hong Kong, Singapore and Taiwan tumbled as demand from Western markets collapsed.

Japan, Hong Kong, Singapore and Thailand pulled out of their downturns in the second quarter but consumer demand remains weak, fueling worries about the sustainability of a global recovery.

Economists also fear that newfound growth could sputter as the impact of government stimulus spending wanes.

http://i22.photobucket.com/albums/b304/fighter24/PH_GDP0809.gif

http://ph.news.yahoo.com/rtrs/20090827/tbs-philippines-economy-gdp-8bedc88.html

Its odd why they don't include Indonesia on the chart

Its odd why they don't include Indonesia on the chart

I was about to ask that, too. Indonesia posted the highest growth in ASEAN in 1st and 2nd quarter of 2009.

Do you agree that former President Cory should be place together with Ninoy in the new P500 Peso bill?
http://img132.imageshack.us/img132/4732/newcory500pesobill.png

^^ this post should be in the halalan thread IMO

Business community more upbeat in third and fourth quarters (http://www.manilastandardtoday.com/insideBusiness.htm?f=/2009/august/28/business5.isx&d=2009/august/28)
Manila Standard (http://www.manilastandardtoday.com/insideBusiness.htm?f=/2009/august/28/business5.isx&d=2009/august/28)
by Eileen A. Mencias

Business sentiment turned positive in the third quarter of the year with the confidence index jumping by 31.3 points quarter-on-quarter, the Bangko Sentral reported yesterday.

“Businesses are gaining confidence. It is true for this quarter and the outlook is even brighter for the quarter ahead. The upbeat mood is sustained until the last quarter and the down cycle has leveled off,” Bangko Sentral Assistant Gov. Cyd Tuaño Amador said in a briefing. “The expectation is that the domestic economy will improve in the second half with the recovery in domestic demand.”

The central bank conducted its quarterly business expectations survey from July 1 to Aug. 14, with 1,389 respondents and a response rate of 76.2 percent. Of those surveyed, 10.4 percent were importers, 7.8 percent were exporters and 14.7 percent were both exporters and importers.

“Business sentiment improved with the business confidence index reverting to positive territory. This means that the number of optimists outnumbered the pessimists,” Bangko Sentral director Rosabel Guerrero said.

“The favorable outlook is consistent with the outlook of improving global economic conditions,” she added.

Amador said the business expectations survey had a 75-percent correlation with the gross domestic product turnout and that the improvement in the outlook for the third and fourth quarters meant that the growth numbers would be higher for the quarters ahead.

Growth surprises analysts (http://www.manilastandardtoday.com/insideNews.htm?f=/2009/august/28/news1.isx&d=2009/august/28)
Manila standard (http://www.manilastandardtoday.com/insideNews.htm?f=/2009/august/28/news1.isx&d=2009/august/28)
by Karl Lester Yap and Cecilia Yap

THE economy rebounded in the second quarter from its slowest growth in a decade, boosted by government spending and adding to signs Asian nations are recovering from the global recession.

The gross domestic product increased 1.5 percent from a year earlier, the National Statistical Coordination Board said yesterday. That was three times the 0.5-percent median forecast of 17 economists surveyed by Bloomberg News.

The economy expanded a revised 0.6 percent in the first quarter, the weakest pace since a recession ended in 1998.

Record-low borrowing costs and government stimulus are helping Asian nations from Thailand to Singapore report better second-quarter economic numbers.

President Gloria Arroyo has boosted spending to avoid a recession and help companies including SM Investments Corp. survive the slump.

The government’s “stimulus programs have been successful in preventing a slowdown,” said Jonathan Ravelas, a market strategist at Banco de Oro Unibank Inc.

“They should continue to pump-prime to create the necessary conditions for sustainable economic growth.”

The governments benchmark five-year bonds dropped a second day.

The government’s economic resiliency plan resuscitated the domestic economy during the second quarter, Romulo Virola, secretary general at the National Statistical Coordination Board, said.

The government had earmarked P330 billion this year to boost the economy in the face of the global slowdown, spending mainly on infrastructure building to create more jobs.

Construction grew 11.7 percent from 1 percent a year ago as public construction jumped 29.9 percent from minus 5.6 percent, data showed.

Finance Secretary Margarito Teves said faster economic growth might boost revenue and allow the government to increase spending.

“We would like to reiterate our appeal to Congress to support our proposed revenue enhancement measures,” Teves said in a mobile phone message.

The government’s “tax effort,” or the ratio of tax revenue to gross domestic product, improved to 15.3 percent in the second quarter from 11.5 percent in the preceding quarter, he said.

Economic Planning Secretary Augusto Santos said the economy would escape a recession and was on track to achieve 1.8 percent growth this year.

The government predicts expansion in the $167-billion economy will improve in the second half of the year as the global slowdown eases and state spending kicks in.

The central bank kept its benchmark interest rate unchanged at a record low of 4 percent last week after slashing borrowing costs by 2 percentage points from mid-December to July.

“They have done much easing, Economic Planning Director Dennis Arroyo said.

“It’s time for fiscal policy to work. The Philippine economy may grow more than the government target of 3.6 percent next year because the global recession is ending faster than expected.”

Consumer spending, which accounts for about 70 percent of the economy, rose 2.2 percent in the second quarter from a year earlier.

The “worst is over” for the country’s retailers, and the industry would grow moderately this year, a newspaper quoted Philippine Retailers Association chairman Jorge Mendiola as saying on Aug. 14.

SM Investments, whose assets include the Philippines’ biggest bank and largest shopping mall operator, said profit rose 16 percent in the second quarter as people spent more at its supermarkets and department stores.

The export of goods and services by companies including Intel Corp., which account for about a third of the Philippine economy, dropped 16 percent in peso terms in the second quarter from a year earlier. The decline in Philippine exports narrowed to the least in seven months in June as the region showed signs of recovery. Bloomberg, with Lawrence Agcaoili

sana magtayo din d2 sa Antipolo kasi taga rito din sya...mas maganda sana nung bauhay pa sya para sya mismo mag unveil ng monumento nia...kaso kailagan ba mamatay muna bago ka tayuan ng monumento?

I was about to ask that, too. Indonesia posted the highest growth in ASEAN in 1st and 2nd quarter of 2009.

^^ even Vietnam, which i believe also did well in Q1 and Q2 of 2009, wasn't there...

perhaps it was only made to emphasize Philippines' economic performance compared with the more progressive SEA countries...

^^ even Vietnam, which i believe also did well in Q1 and Q2 of 2009, wasn't there...

perhaps it was only made to emphasize Philippines' economic performance compared with the more progressive SEA countries...

China over 7%
India over 5%
Vietnam 4.5%
Indonesia 4%
Philippines 1.5%

Cory Aquino monument in Rizal Park? :lol:

GMA is trying to ride the Cory wave to try to boost her popularity, OA na mashado kung sa Rizal park pa. Yung puntod nga ni Ninoy and Cory napaka simple lang e tapos gagawan mo ng major monument sa Rizal Park.

Sus, all these symbols won't help the country unless we ourselves change. Ninoy sa 500, yung airport, sa Makati, People Power monument along EDSA, EDSA Shrine, etc...

Don't forget, it's the people who made Cory kaya nga People Power e, she's mostly symbolic and she rose to power because of the people, she wasn't even a charismatic leader or speaker, simple lang sha. Heck, do you see grandiose statues of Mother Teresa?

^^ this post should be in the halalan thread IMO

my mistake, you should haved PM'd me na lang.

China over 7%
India over 5%
Vietnam 4.5%
Indonesia 4%
Philippines 1.5%

China and India (two of the next 11 countries along with the Philippines) are actually two of those with the highest growth rates. They are expected to perform well during the global recession. The emphasis and focus are given to Asian advanced economies [Japan, South Korea, Hongkong, Singapore, Taiwan] and the NICs [Thailand, Malaysia and Philippines]. Vietnam and Indonesia are still third world countries. While the economy of Indonesia is big, its characteristics are still more of a developing one. In SEA there is one developed country which is Singapore and 3 NICs - Thailand, Malaysia and Philippines, that's why the graph. IMO only.