The Philippine Economy - Compiled Threads [Archive] - Page 5

JAMAICUS

April 2nd, 2006, 01:54 PM

Remove onerous economic provisions in Charter -- Teves

First posted 05:12am (Mla time) Mar 27, 2006
By Tonette Orejas
Inquirer

Editor's Note: Published on page A2 of the Mar. 27, 2006 issue of the Philippine Daily Inquirer

CLARK SPECIAL ECONOMIC ZONE, Pampanga -- Finance Secretary Margarito Teves said Congress should begin debating the economic provisions of the 1987 Constitution and agree to remove its restrictive policies to draw more foreign investments into the country.

"As an individual and as a student of economics, I'd like to see something take place at a minimum which is to move the economic provisions away from the Constitution and that these be debated in Congress," Teves told reporters here on Friday.

At this time, however, legislators still differ over the mode for changing the Constitution. The House of Representatives wants to convene itself as a constituent assembly while the Senate wants to call a constitutional commission that would entail electing its own delegates.

Aside from liberalizing the economy, the Charter change agenda includes the switch to a parliamentary form of government that critics of President Gloria Macapagal-Arroyo said would keep her in power longer.

Teves told business leaders and government officials of Central Luzon on Friday that he was sad over having many provisions in the Constitution that limit the equity of non-Filipino investors to only 40 percent in key economic sectors.

He said he was "hoping that Congress itself would move toward the direction of what most countries are doing, which is for liberal type of provisions."

The Malacañang-formed Consultative Commission on Charter change proposed the removal of the protectionist policies on the ownership of land, use and exploitation of natural resources, public utilities, education and mass media.

Teves said other Asian countries like China, Indonesia and Vietnam have enjoyed 7 to 9 percent growth rates because they had decided to make their countries more attractive by improving their regulatory and business environments.

No more coups -- rumors or otherwise -- would help, he added.

"I'm just saying that we'd like to continue working on the economic and fiscal reform agenda and if we're successful, together with [the soldiers'] help, this would have a favorable spillover effect on the military and other sectors of our economy," Teves said.

Teves said it helped that the economic team stayed "focused" on its work as the national leadership quelled the coup plot in late February.

"So far that strategy has worked well for us," he said.

Revenue collections from January to February this year reached P136.9 billion, up by 9.1 percent for the same period last year.

The national government's deficit in 2005 has been tamed, representing 2.7 percent of the gross domestic product, he said.

Diwa Guinigundo, deputy governor of the Bangko Sentral ng Pilipinas, said investors and market players put "greater risk premiums" on the peso when political developments turned adverse to the government.

Trade Undersecretary Elmer Hernandez said "any political noise will definitely have an impact on foreign direct investments."

http://news.inq7.net/nation/index.php?index=1&story_id=70693

JAMAICUS

April 2nd, 2006, 02:01 PM

Meralco monopoly over
Competition opens to other power producers

First posted 01:18am (Mla time) April 02, 2006
By Gil C. Cabacungan Jr., Abigail L. Ho
Inquirer

Editor's Note: Published on page A1 of the April 2, 2006 issue of the Philippine Daily Inquirer

IT’S now open season in the power sector.

Under pressure to lower electricity rates, the Manila Electric Co. has finally agreed to allow other power producers to supply the electricity requirements of its large industrial and commercial customers who consume at least 1 megawatt (MW) a month.

Meralco’s “unconditional offer,’’ contained in a letter to President Macapagal-Arroyo, was immediately accepted by the government which only a few months ago had threatened to take over the country’s largest power utility for non-payment of P42 billion owed to the National Power Corp. (Napocor).

Meralco currently has 494 large industrial and commercial customers each with a demand volume of 1 MW and above. These large clients accounted for about 25 percent of Meralco’s total electricity sales last year.

Meralco, however, will continue to serve those customers who do not choose an alternative power supplier.

“Meralco fully supports the government’s desire to move forward on deregulation which would enable customers to avail of cheaper electricity rates, facilitate the privatization of Napocor, and address the looming capacity problem,” Meralco chair and chief executive officer Manuel Lopez said in his letter to the President last March 20.

Albay Rep. and Ms Arroyo’s economic adviser Joey Salceda, who brokered the deal, described Meralco’s “goodwill gesture’’ as the “breakup of the last major oligopoly in the Philippine domestic market.’’

“Meralco has been studying how it can concretize its support and believes it may have a solution in the light of the new strategic directions for Meralco called for by the Epira (Electric Power Industry Reform Act). At this time, Meralco believes that it should concentrate on its distribution business and on supplying its captive market which are its franchise obligations under Epira,’’ Lopez said.

Lopez told the President that Meralco’s offer would result in lower rates to large industrial and commercial customers and encourage them to stay and attract new investors to the country.

Foreign investors have been complaining of the high cost of doing business in the Philippines which has one of the highest electricity rates in Asia.

In a joint statement, Energy Secretary Raphael M. Lotilla and National Economic and Development Authority Secretary General Romulo Neri said the government was accepting Meralco’s “unconditional offer.”

“We anticipate that this offer and its acceptance will help enable the industrial sector to avail of the lower time-of-use (TOU) rates of the National Power Corp., help reduce the cost of doing business in the Meralco franchise area, promote investment and the creation of additional jobs, and help push privatization forward,” Lotilla and Neri said.

Finalize in 2 weeks

Lotilla said the President had directed Napocor and the National Transmission Corp. to finalize the details and mechanics of the new arrangement with Meralco within two weeks.

The scheme would be implemented immediately after the Energy Regulatory Commission’s approval of its details and mechanics.

“We are looking forward to meeting with Napocor and Transco as directed. Among the topics to be discussed is the dispatch of our (independent power producers),” Meralco president and chief operating officer Jesus Francisco said.

The Lopez family which owns Meralco also controls a number of IPPs which would now have to compete with other power suppliers.

Lotilla said Meralco’s partial open access scheme would have a positive impact not only on investors, but also on the government’s efforts to privatize Napocor’s generation assets.

He explained that the new arrangement would create a new market for potential buyers of Napocor plants that would be placed on the auction block.

‘Big sacrifice’

“This is an excellent deal for Meralco consumers and export manufacturers,” said Salceda. “This is a big sacrifice for Meralco which is swimming in red ink while nursing mortal wounds from a P31 billion refund while facing another P16 billion refund.”

Salceda said that while facing competition, the deal would have a liberating effect on the Lopezes to move on. “Just like PLDT overcame telecom deregulation and moved from a P3 billion profit in 1995 to P31 billion in 2005.”

Once implemented, Lotilla said Meralco’s large commercial and industrial customers could take advantage of Napocor’s TOU rates by shifting their loads to off-peak hours, or the times when rates are lower.

The TOU scheme provides Napocor customers with flexible hourly rates that are lowest during off-peak hours, or between 10 p.m. and 7 a.m., and highest during peak hours, or from 10 a.m. to 4 p.m. and from 6 p.m. to 9 p.m. Sundays and holidays are also considered off-peak times.

Rates are also lower during the wet season, or from July to December, as electricity demand usually falls during this time due to the colder weather. Hydroelectric plants are also able to produce more power during these months.

Savings for expansion

“Large industrial users may be able to save on their electricity rates, and these savings could be significant enough to make them more competitive. They could also channel their savings to expansion activities,” Lotilla said.

Francisco said Meralco was not at all apprehensive that it would lose its growth-driving customers even if most of its sales growth came from one of the segments that would be affected by its partial open access scheme.

“Between Meralco’s blended generation rate and Napocor’s TOU rate, some may choose to stay, especially the commercial (customers),” he told the Inquirer.

In 2005, Meralco’s revenue from electricity sales rose 15.9 percent to P170.85 billion from P147.35 billion the previous year. One-fourth of this amount came from customers with a monthly demand of 1 MW and above.

Other consumers benefit

Lopez also told Ms Arroyo that with the “dispatch of Meralco’s IPPs at MEQ (Minimum Energy Quantity) levels, the other Meralco customers with demands of less than 1 megawatt would also benefit from lower purchase costs.

A power plant’s MEQ level is the level at which it becomes more efficient and cost-effective, thus resulting in lower generation charges.

But Meralco vice president and utility economics chief Ivanna de la Peña said Meralco would only be able to determine exactly how the new scheme would affect the dispatch of IPPs First Gas Power Corp., through the Sta. Rita and San Lorenzo plants, and Quezon Power Philippines Ltd. when the mechanism for the scheme had been established.

“We’ll still have to work out the mechanics. But the dispatch of our IPPs will affect the rates to consumers. It has always been our position that dispatch should not be below (minimum energy quantities) to keep rates down,” she said.

Separate concern

“At this point, we are giving more importance to lowering the rates to our industrial customers and, perhaps, to all our other customers, too, if our IPPs can reach MEQ,” Francisco said.

Lotilla and Neri said the government would consider Meralco’s separate concern on the dispatch of its IPPs. “In any event, any possible arrangement concerning dispatch will have to fall away upon the full commercial operations of the Philippine wholesale electricity spot market (WESM) which is expected to happen in the near future.”

http://news.inq7.net/nation/index.php?index=1&story_id=71353

JAMAICUS

April 2nd, 2006, 02:25 PM

RP aspires to be Asian grain hub

By DOLLY AGLAY
Reuters

Alison Sy dreams of massive cargo ships docking at her automated grain handling facility in the northern Philippines after it opens in May or June.

The grains port, the biggest of three such terminals in the country, has ambitions to become a transshipment hub in Asia.

Sy will be the first port operator to test this set-up for grains in Asia, traders said. Singapore and Hong Kong are classified as transshipment hubs for container cargoes, they said.

Her terminal is a miniscule version of Rotterdam, Europe's busiest port, which handled 185 million tons of all types of cargo -- from animal feed, coal and crude oil to soybeans, tapioca and vegetable oils -- in the first half of 2005.

"My dream is to bring capesize ships into the country," Sy told Reuters as she leafed through shipping magazines at her office in Manila's Makati business district.

"If you order bigger ships to transport grain, it's cheaper. That's economies of scale," said Sy, whose family has been involved in local trading of rice and corn since 1969.

News that Sy's Nation Granary Inc. will open a 3.2 billion peso ($62.5 million) bulk terminal to accommodate ships holding more than 85,000 tons of grain created ripples in the market.

It also raised eyebrows as the facility lies in the sleepy town of Sariaya in Quezon province, where there is lack of infrastructure and communist rebels are active.

"I think people would think twice about bringing a capesize with a cargo worth $30-$40 million to the Philippines, where support infrastructure is poor," said a chartering manager with a multinational grains trading firm.

Local grain traders were concerned about the security of the port and their cargoes when they were transported by truck to feedmills and poultry and hog farms in other provinces.

Communist guerrillas have attacked power pylons, telephone towers and police stations in various areas in recent years.

An executive at one of the country's largest feedmills said he had not seen any capesize vessel delivering grains to the Philippines as local buyers import only what they need each month to avoid additional stocking costs.

Capesize vessels can carry 85,000 to 150,000 tons of cargo and are built mainly to ship iron ore and coal.

"The transshipment concept is a questionable proposition," the executive said, adding it was costly to transfer the grain from a big ship to smaller vessels and then bring it to other countries.

He also said the bulk of Philippine imports of milling wheat come from the United States, while soybeans and soymeal come mostly from Argentina and pass through the Panama Canal, which can take only Panamax or smaller ships like Handymax vessels.

Panamax vessels carry 60,000 to 84,999 tons of freight, while Handymax vessels carry 40,000 to 59,999 tons.

Future of grains trade?

But Sy insisted her concept was the future of the grains trade. "Capesize for grains is not for today. It's for the future. We expect 20 such ships to be coming on the grains market in 2007," she said.

Sy, chairwoman and chief executive of Nation Granary, recently imported 33,000 tons of Chinese corn, 55,000 tons of Argentine wheat and 30,000 tons of Argentine soymeal to test the unloader at her port.

They were the first grain imports for Sy, who also brings in liquid petroleum gas for the local market.

Grains experts say the possibility of the Philippines importing from non-traditional suppliers that can handle capesize ships hinges on the price of the commodity and freight charges.

"Economics dictate the market. You buy from the cheapest source," a trader said, adding that the Philippines has bought big volumes of feed wheat from Europe in the last two years.

The chartering manager with a grain trading firm agreed. "It's possible to bring capesize sometimes but not most of the time," he said. "It's nothing you can plan in the long term."

Positive

Traders said Nation Granary's new port will be busy handling imports for local consumption -- even if it does not become a transshipment hub.

The Philippines is one of Asia's biggest importers of rice, its main food staple, and other grains and feedstuffs because of its rapidly rising population and poor farming infrastructure.

The country bought 1.8 million tons of rice last year. In a typical year, it imports up to 3 million tons of both milling and feed wheat, 1.5 million tons of soymeal, 400,000 tons of soybeans and sometimes corn.

The Philippines does not grow wheat or soybeans.

"There is business locally," said Eduardo Alino, president of Subic Bay Freeport Grain Terminal Services Inc. "There is enough volume. You don't need to go into transshipment."

Alino's grain bulk handling facility at Subic, a former US military base northwest of Manila, opened in January but he is already planning to double its capacity to 200,000 tons to meet the country's growing appetite.

Nation Granary will have capacity of 225,000 tons, while the Mariveles facility of Asian Terminals Inc. in Bataan, also on Luzon Island, has a 180,000-ton capacity.

Ric Pinca, vice president of the Philippine Association of Feedmillers Inc., said more grain ports would eventually reduce the cost of animal feed, bread, noodles, chicken and pork.

"All these developments should change the way the Philippines imports grain. As unloading becomes more efficient, our costs will be cheaper," Pinca said. "In the long run, this will be good for the country as this will reduce the cost of food."

http://www.abs-cbnnews.com/storypage.aspx?StoryId=34302

JAMAICUS

April 2nd, 2006, 06:51 PM

BIR: March tax collection goal met

By LIKHA CUEVAS

The Bureau of Internal Revenue (BIR), which accounts for about 80 percent of the Philippines’ taxes, said it met its collection target for March.

"After the P590-million shortfall in January, we exceeded our target in February and we’ll also meet the P43-billion target this March," BIR Commissioner Jose Mario Bunag told reporters on the sidelines of last week’s Philippine Development Forum, an annual workshop between the government and foreign donor agencies.

Last January the BIR collected some P49.5 billion, or 0.6 percent lower than its target of P50.1 billion, but 17 percent higher than the previous year P42 billion in actual collections.

In February the agency collected P41.7 billion, 32 percent over last year’s P31.7 billion. Including other sources, the government’s revenues that month was up by 32 percent from last year’s P48.7 billion, and exceeded this year’s target of P58.0 by P6.3 billion.

Bunag said 53 percent of the targeted P675.4 billion in tax collection this year would come from the BIR’s Large Taxpayers Service.

Earlier, he said the government would secure $15 million in technical assistance from the World Bank for the purchase of computer software and hardware to be used in creating tax databases for the central office and the various revenue regions and revenue district offices.

Jaochim von Amsberg, World Bank country director and PDF cochairman, said that tax collection improvements is one of the most important measures the government has undertaken to turn around the country’s fiscal position last year.

To increase collections this year, the government plans to upgrade taxpayer registration and filing, develop risk-based audits, enforce sanctions against tax evaders and build credibility through information campaigns.

Govt to be selective in granting investor perks

Besides improving tax collection, the government also plans to restrict tax and other perks for investors, the Department of Trade and Industry (DTI) said.

In the same forum, Trade Secretary Peter B. Favila said fiscal incentives would be granted on a case-to-case basis especially for critical priority investments, as suggested by donor agencies.

Under this arrangement, an evaluation of specific investments would be undertaken, unlike before wherein all investments that fell under priority industries were given perks, he said.

The trade secretary said investments in the power, infrastructure, water and garments and textile manufacturing would be granted incentives, but the DTI would ask for flexibility in granting perks on a case-to-case basis.

He insisted that granting fiscal incentives does not translate to forgone revenues. "These would be considered forgone revenues if these are granted to investments that already exist," he said.

Tax breaks granted to potential investors should not be counted as forgone revenues since "these businesses would not be here if not for these incentives," he added.

Favila said local governments can also grant incentives to businesses within their jurisdictions, something the Department of Finance (DOF) has suggested.

DTI would work closely with the DOF, "and DTI would defer to DOF in granting the incentives," since the government’s main priority is still the balanced budget by 2008, he said.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=34600

JAMAICUS

April 2nd, 2006, 06:53 PM

BSP forecasts higher foreign investments

By MARICEL E. BURGONIO
The Manila Times Reporter

The Bangko Sentral ng Pilipinas has forecast higher foreign direct investments (FDI) this year given the continued improvement in the country’s fiscal position as well as strong macroeconomic fundamentals.

BSP Governor Amando M. Tetangco Jr. told reporters that net FDI would rise to $1.6 billion this year from $1.1 billion last year.

Last year the manufacturing and real-estate sectors enjoyed the bulk of FDI inflows, with most of the funds coming from the US and Hong Kong.

Tetangco said its higher forecast for this year is due to a more bullish investor sentiment, driven by the government’s improving budget deficit, and indicators like a stronger peso vis-à-vis the dollar, robust balance of payments (BOP), reasonable interest rates and a resilient banking sector.

The Department of Finance earlier reported that the country’s fiscal position continued to improve in February, as its revenue shortfall for the month was slightly below ceiling.

The government generated P64.3 billion in revenues and spent P89.2 billion, resulting to a budget deficit of P25 billion. Although 6 percent higher than the year before, February’s funding gap was P2.2 billion below the P27.2-billion ceiling.

Recently, the BSP adjusted its BOP forecast for this year to a surplus of $1.6 billion, higher than the original forecast of $900 million. The BOP summarizes the country’s economic transactions with the rest of the world.

The peso has gained more than six percent of its value vis-à-vis the dollar since last year, while interest rates have been on a downtrend on account of the government’s improving fiscal position. Banks, meanwhile, have been shedding their bad assets, with more set to be sold this year after Congress extended tax perks for their sale.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=34598

JAMAICUS

April 3rd, 2006, 05:13 AM

Feb M3 growth accelerates to 9.4% on strong inflows

DOMESTIC liquidity or M3 grew 9.4 percent year-on-year to 3.238 trillion pesos in February, up from January's 8.4-percent rise, on the back of strong remittances from Filipinos overseas and investment inflows, the central bank said.

On a month-on-month basis, M3 grew 1.1 percent in February following a 0.9-percent contraction in January.

"Growth in liquidity continued to be driven by strong inflows of foreign exchange from overseas Filipino workers, and direct and portfolio investments, " the central bank said in a statement

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=03&file=2

JAMAICUS

April 3rd, 2006, 06:27 AM

Stocks down, peso at 51.090:$ early

Stocks were down early Monday at the Philippine Stock Exchange with the Phisix shedding 0.87 points or 0.0396 percent at 2,195.08, ANC reported.

The broader All shares index was also down 0.15 points or 0.0111 percent at 1,352.38.

Leading the actives list as of 9:46 a.m. was Bank of the Philippine Islands at P62.50. Philippine Long Distance Telephone Company and First Philippine Holdings Corporation trailed BPI.

Value turnover has reached P299.1 million so far.

Decliners led advancers, 9 to 8, while 25 issues were unchanged.

At the Philippine Dealing System the peso averaged 51.090 against the US dollar as of 9:45 a.m.

Trading volume has reached $81.5 million so far.

The peso opened at 51.10 against the US dollar Monday, higher than Friday's 51.125 close.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=34639

mhe-ann

April 3rd, 2006, 06:52 AM

BIR: March tax collection goal met; BSP forecasts higher foreign investments... good news. thanks @jamaicus. keep on reviving this thread. :)

JAMAICUS

April 3rd, 2006, 06:55 AM

^^ Just doing my job. Our economy should always be updated here.

JAMAICUS

April 3rd, 2006, 08:30 AM

Final 2006 Investment Priorities Plan now awaits President Arroyo’s approval

By BERNIE CAHILES–MAGKILAT

Trade and Industry Secretary Peter B. Favila has submitted for Malacañang’s approval the proposed 2006 Investment Priorities Plan (IPP) which expanded its coverage with the inclusion of three sectors as the government seeks to retain investments, bring back those that left and encourage new locators in critical sectors of the economy.

After a presentation before the Cabinet, the President is expected to approve the list of preferred sectors that are eligible for government incentive packages before the end of this month.

Consistent with the Medium Term Philippine Development Program (MTPDP), the Board of Investments and the Philippine Economic Zone Authority are targeting a 10 percent growth in investments this year from their last year’s combined investments of P231 billion.

The three new inclusions in the 2006 IPP are the RED (retention, expansion, diversification) and relocation program, cement and the granting of full incentives to all export enterprises as long they are listed under the Medium Term Philippine Development Program.

"We practically carry the 2005 IPP plus the three new inclusions," said Trade and Industry Undersecretary Elmer C. Hernandez, also Board of Investments managing head, said.

"We put in additional sectors because of the need of the times to attract investments," Hernandez said.

According to Hernandez the RED program aims to retain existing companies and encourage them to expand and diversify here rather than in other countries.

At present, the RED program is aimed at retaining existing enterprises in the country and not losing them out to other countries like China but it has now expanded to include relocation or projects from outside the country country and relocating here.

The RED program was conceptualized last year by the BoI and supported by the Multilateral Investment Guarantee Agreement of the World Bank.

The second new inclusion is the granting of full incentives to export sectors listed under the MTPDP and the Philippine Exports Development Plan (PEDP) to encourage the use of indigenous raw materials and intermediate inputs for the priority sectors.

"This is also to give full support to all export sectors," Hernandez said.

Both the MTPDP and PEDP are targetting a $ 50 billion exports level by this year. Last year’s exports reached over $ 44 billion.

Under the present policy, the BoI only grants incentives to export-oriented enterprises that are listed under the IPP. Other export sectors may be considered for registration with the BoI but with limited incentives only or they do not enjoy income tax holiday incentives.

With the new BoI policy, all export sectors are eligible for full tax perks such as ITH of as long as six years, one percent duty on imported capital equipment, employment of foreign nationals, among others.

The 11 priority sectors listed under the existing IPP include agriculture, healthcare and wellness products and services, information and communications technology, electronics, motor vehicle products, energy, infrastructure, tourism, shipbuilding/shipping, jewelry, and fashion garments.

The third inclusion is the restoration of the cement sector in the proposed IPP to pave the way for new cement projects to be put up here and prevent the expected shortfall in local cement supply by 2010.

The restoration of incentives under the 2006 IPP was based on the assumed 12 percent growth in the construction industry for the next five years under the MTPDP.

According to Hernandez, data from the Cement Manufacturers Association of the Philippines (CeMAP) showed that total industry’s kiln capacity is placed at 462 million bags a year. Local cement demand in 2005 was at 265 million bags.

Based on the 12 percent annual growth of the construction industry, demand is expected to reach 468 million bags by 2010 as against total industry capacity of 462 million bags.

This means that while there is a surplus in local cement supply until 2009, shortage in supply is expected by 2010. Cement consumption is based on the growth of the construction industry.

The BoI has also taken into consideration the long gestation period of between three to three and a half years to construct a cement plant.

It could be recalled that since the delisting of cement production in the IPP three years ago, no new cement plant was put up. This time, however, there are new parties that have expressed interest to put up cement plants.

What happened then was pure acquisition of existing plants by global players such as CEMEX, Lafarge and Holcim. What remains now are two small cement plants, the Northern Cement and Pacific Cement in Surigao.

http://www.mb.com.ph/archive_pages.php?url=http://www.mb.com.ph/issues/2006/04/03/BSNS2006040360524.html

JAMAICUS

April 3rd, 2006, 01:36 PM

Small dealers cut LPG prices by P1/kilo

The Liquefied Petroleum Gas Marketers Association slashed prices of its LPG products by P1 a kilo, an ANC reported Monday.

The price cut, which takes effect midnight Monday, brings the retail price of cooking gas sold by the groups' members to P444 for the 11-kg cylinder. Members of LPGMA include Island, CAT and Pinnacle Gas.

The group implemented a similar LPG price cut last Friday, which it attributed to a $90 a barrel cut in international contract prices of LPG.

This should translate to a P4 a kilo reduction in local LPG prices.

Two major oil companies and two independent players also lowered the prices of their LPG products Saturday.

Pilipinas Shell, Petron Corp., Total and Liquigaz slashed LPG prices by P1.68 per kilogram or an average of P18.50 per 11-kg tank.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=34667

JAMAICUS

April 3rd, 2006, 02:15 PM

Megaworld’s world
By Tony Lopez

EVEN by today’s age of mega-deals, P47 billion packs a wallop as development fund by a single private enterprise.

That is the amount committed by Megaworld Corp. to spend for its expansion over the next 10 years, a whopping P4.7 billion per year, making Megaworld one of the largest investors locally.

Why is Megaworld willing to spend so much for such an extended period?

“The property is on the verge of an unprecedented boom,” beams Andrew L. Tan, chairman and CEO of Megaworld. “The boom will last for five to six years,” he reckons.

Not since the Asian Crisis struck in 1997 have the likes of such a massive property upturn been seen.

Recent land sales in such areas like Fort Bonifacio, Tan notes, were done at P130,000 per square meter. This the level reached just before the 1997 Asian Crisis. And this the ground zero of the expected real estate boom.

Megaworld’s own data indicate an upswing in prices, from P55,124 per square meter for its residential units in 2003 to P56,111 in 2004, and P58,270 in 2005.

That’s a 5.7-percent increase in two years or about 2,85 percent per year gain. To be sure, office space prices have remained sluggish, at P54,410 per sqm during each of the last three years, 2003, 2004, and 2005. That’s a reflection of the pre-1997 overbuilding that has resulted in a huge overhang.

In Megaworld’s case, though prices have not risen, demand has. Megaworld sold 1,813 gross floor area last year, up a hefty 37 percent from 1,323 in 2004.

Now, why the boom?

“The bottom has been reached,” says the Megaworld CEO.

The market has been on an extended eight-year slump, he points out.

Another reason is the booming demand from the OCW market. With at least $11 billion remitted by eight million Filipinos abroad, the Philippines has become the world’s third largest dollar earner from remittances, behind China and India, and overtaking Mexico.

A third reason is demand from business process outsourcing (BPO) office space.

The fourth reason is that banks are awash with cash, from deposits and internally generated profits. They are just too eager to lend this money even long term for property loans rather than park it in low-interest bearing government securities.

Finally, there is the overall buoyancy of the economy. Quarterly economic growth has hit its highest in the last five years and this is only the beginning.

Finally, there is the overall buoyancy of the economy.

Quarterly economic growth has hit its highest in the last five years and this is only the beginning.

The robustness has largely been due to President Arroyo’s economic reforms and policies. “She bites the bullet,” says one businessman.

As a result, there is overall optimism about the economy. Even the Philippines’ creditors and donor countries are upbeat.

The real estate industry has been quick to respond to the upsurge in demand.

Megaworld estimates 19,807 residential condominium units are planned between 2006 and 2010. And reflecting its primacy as a location, Fort Bonifacio accounts for 30 percent of this supply, followed closely by Ortigas with 27 percent, and Eastwood City with 19 percent.

What about Makati? Well, it is now seen as a mature market. The business city will account for only 2,434 units or 12 percent of the 19,800 planned over the next five years.

sugbuanon

April 4th, 2006, 03:14 AM

T-enabled services seen to yield US$ 12.2-B in revenues

MANILA - The country’s information technology-enabled service (ITES) industries, pumped up by the global outsourcing rush, are charted to yield up to US$ 12.2 billion in aggregate annual revenues and directly engage as many as 920,764 workers by 2010.

Catanduanes Rep. Joseph Santiago said of the US$ 12.2 billion in revenues, some US$ 5.29 billion or 43 percent would be generated by customer care; US$ 2.39 billion or 19 percent by back office operations; US$ 1.71 billion or 14 percent by medical transcription services; US$ 1.28 billion or 10 percent by software development; and US$ 759 million or six percent by animation.

He said the rest of the revenues would be produced by engineering design, US$ 357 million; digital content, US$ 208 million; and legal and other data transcription services, US$ 204 million.

This year, the country’s ITES industries are expected to yield US$ 3.63 billion in revenues, an increase of US$ 1.21 billion or 50 percent from last year’s US$ 2.42 billion, according to the Business Processing Association of the Philippines.

Revenues are projected to surge to US$ 4.99 billion next year; US$ 6.77 billion in 2008; US$ 9.13 billion in 2009; and US$ 12.19 billion in 2010.

In terms of employment, Santiago said ITES industries are charted to fully engage a total of 343,013 workers by 2007; 479,519 by 2008; 668,126 by 2009; and 920,764 by 2010.

By the end of this year, ITES industries are expected to wholly employ 244,675 workers, an increase of 82,425 or 50 percent over last year’s 162,250.

Of the 920,764 workers in ITES industries in five years, Santiago said 331,000 would be in customer care; 299,000 in back office operations; 122,000 in medical transcription services; 75,000 in software development; 41,000 in animation; 21,000 in engineering design; 16,000 in digital content; and 15,764 in legal and other data transcription services.

Santiago underscored the need for both government and the private sector to adopt "bold and broad" measures to quickly build up the school system so it would produce the human resources with suitable skills needed by rapidly growing ITES industries.

He particularly cited "the need to upgrade the core competencies" of both high school and college students in English, math and science.

kiretoce

April 4th, 2006, 07:33 AM

RP needs to do more to lure investors -- study said
April 3rd, 2006

TAGAYTAY CITY- The Philippines lags Thailand in attracting much-needed foreign capital due to huge gaps in infrastructure, investment perks and taxation, according to a study conducted by the Japanese Chamber of Commerce and Industry of the Philippines.

The comparative study, presented by Japan's bilateral delegation to the government during the Philippine Development Forum here, found out that while the Philippines was still sufficiently competitive in labor costs, Thailand was way ahead in terms of the general state of investment climate.

The study, conducted in 2005, covered five specific areas of most interest to investors: labor-related matters, investment incentives, tax system, infrastructure and foreign exchange control.

It said labor costs in the Philippines were competitive with that of Thailand, with Filipino workers even edging out the Thais in terms of English proficiency. However, the study said the Philippines must deal with the following to maintain and improve this competitiveness:

The Philippines risks being perceived to be an unfavorable destination of investment if the minimum wages are further increased.

Radical unionism is a major disadvantage for the Philippines against Thailand as a major cause of disruption of production.

Unpredictable non-working holidays should be discontinued in the Philippines as they abruptly disrupt production and shipping plans, including labor costs.

The Philippines needs to raise the level of education in order to upgrade workers' productivity.

The study also lamented that the Philippines had a different set of government bodies offering various investment incentives as against Thailand whose Board of Investment was virtually a "one-stop shop."

It added that the Philippines had constitutional constraints prohibiting foreign ownership of land and limiting foreign equity participation.

Corporate taxation in the Philippines was also noted to be the highest among major Asean countries, putting the country "at risk of being considered an investor-unfriendly" destination.

Thailand was also cited to be ahead in terms of value-added tax refund, which is approved and settled in a year, at the longest.

The study added that it was a general perception among Japanese companies that Thailand was ahead in terms of transparency and fairness in tax administration.

In terms of infrastructure, Thailand was seen much ahead in almost all areas, including roads, ports, airports and electric power.

"The Philippine government needs to concentrate its infrastructure funding on the development of the Grand Growth Corridor which connects Subic Bay and Batangas area through Manila," the study said.

The study specifically noted that the government must speed up the following projects: highway link between Manila and Batangas port, improvement of the Alabang viaduct, construction of the Subic Bay-Clark-Tarlac Highway Corridor, and phase 2 of the Batangas port development project.

"Many of the government projects on infrastructure development are being delayed, mostly due to shortage of budget and insufficient coordination among government agencies involved," the study said.

The study added that Naia 3 had become a symbolic failure of private investment in the Philippines.

chixbebe

April 4th, 2006, 09:55 AM

By Roderick T. dela Cruz
http://www.manilastandardtoday.com/?page=business04_april04_2006

Economic growth has resulted in reduced poverty incidence in the Philippines in 2005, according to data from the World Bank.

In its latest estimate, the multilateral lender said poverty at the $1-a-day level fell to 10.8 percent of the Philippine population in 2005 from 11.7 percent in 2004. At $2-a-day level, poverty incidence is estimated to have eased to 41.9 percent last year from 43.5 percent in 2004.

The gross domestic product of the Philippines grew by 5.1 percent year-on-year in 2005, the second consecutive time it grew above 5 percent, after posting a 6.0 percent expansion in 2004.

Because of higher growth, the World Bank estimated that the number of poor Filipinos at $1-a-day level went down by 600,000 to 9 million in 2005 from 9.6 million in 2004. The number of poor Filipinos at $2-a-day level also shrank by 700,000 to 35.1 million from 35.8 million.

The WB said it expects poverty reduction in the Philippines to continue over the next two years. However, it expressed concern over the results of local polls showing that more Filipinos were considering themselves as poor and hungry.

Data also showed that poverty reduction in the Philippines was not as rapid as in other countries. The WB said poverty at the $1-a-day level fell to 8 percent of the population in East Asia in 2005 from 9.1 percent in the previous year. At $2-a-day level, poverty is estimated to have fallen to a little over 31 percent in 2005, down from just over 34 percent in 2004.

This means that the number of poor East Asians at the $2 level is estimated at some 585 million in 2005, down by 51 million from the previous year.

JAMAICUS

April 4th, 2006, 12:15 PM

2005 public sector budget deficit beats target
Posted: 4:17 PM | Apr. 04, 2006

THE PHILIPPINES' consolidated public sector deficit reached 106 billion pesos last year, ahead of the government's target of 180.3 billion, Finance Secretary Margarito Teves said.

The figure, which combines the budget deficit of the government, state pension funds and government corporations was equivalent to 2.0 percent of GDP, the lowest level in eight years.

The public sector's budget gap last year was 54 percent lower than the deficit recorded in 2004, Teves said in a statement.

The national government incurred a budget deficit of 146.5 billion pesos last year, also beating its target of 180 billion, supported by higher tax collections and lower expenses.

The 14 government-owned and controlled corporations registered a deficit of 21.7 billion pesos, lower than the projected 42.5 billion, due to improved earnings and reduced expenses.

State pension funds, meanwhile, posted a surplus of 51.8 billion pesos last year.

http://money.inq7.net/breakngnews/view_breakingnews.php?yyyy=2006&mon=04&dd=04&file=21

JAMAICUS

April 4th, 2006, 12:34 PM

Japan businesses fault politics for loss of RP competitiveness

Political instability, high taxes and mediocre infrastructure have left the Philippines lagging far behind its Southeast Asian neighbors, the local Japanese chamber of industry said Tuesday.

A study commissioned by the chamber on the investment environment in Thailand and the Philippines noted that Manila was a "leading economic power of Southeast Asia" in the 1970s before being dramatically overtaken by Bangkok over the past 30 years.

"Those managing Japanese corporations in both countries voiced their general evaluation that Thailand is solidly ahead of the Philippines. Political stability and secure peace and order situation are vitally important and integral part of an overall evaluation whether a country is investor-friendly or not," the study concluded.

"We have seen in the Philippines that political instability has been a major obstacle in implementing consistent industrial development policy over a long period of time.

"This has been particularly true in the development of local supporting industries, which are very important for foreign direct investment in the manufacturing sector."

The survey was released amid political troubles faced by both Thai Prime Minister Thaksin Shinawatra and the Philippines' President Arroyo.

Mrs. Arroyo survived an impeachment vote in Congress in September over opposition allegations that she stole the May 2004 elections.

But she remains massively unpopular, threatening her economic reform agenda as well as her efforts to amend the constitution to make the Philippines more investor-friendly.

Aside from law and order and political bickering, the Japanese Chamber of Commerce and Industry of the Philippines urged Manila to attend to specific issues on labor, investment incentives, the tax system, and infrastructure.

Labor costs in the Philippines were "equally competitive with that of Thailand" and Filipino workers have a "clear and apparent edge over Thai workers" in English-language proficiency, the study said.

But it complained about a minimum wage that is "prone to increase every year," the "presence of radical unionism," and Mrs. Arroyo's tendency to abruptly declare public holidays, disrupting factory work.

The study also cited Philippine constitutional constraints on foreign ownership of land and foreign equity participation.

While Manila was successful in attracting foreign investment in export-oriented industries, unlike Bangkok it "has not been successful in developing a sustainable domestic industrial policy."

It said the Philippines' corporate tax of 35 percent was the highest in Southeast Asia, putting it "at risk of being considered an 'investor-unfriendly' country."

Thailand was much ahead of the Philippines in almost all areas of infrastructure, and Manila should concentrate on the development of the main logistic corridor in the provinces around the capital, it said.

Manila should crack the whip and take over private infrastructure projects when they fall behind schedule, and ensure that state-funded projects have sufficient funding, it added.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=34771

JAMAICUS

April 5th, 2006, 03:55 AM

World Bank cites RP for better finances

By EDU H. LOPEZ

The World Bank (WB) has cited the government for improving its finances and welcomed the Arroyo administration’s plans to achieve a front-loaded revenue adjustment of 1.4 percent of gross domestic product (GDP) this year.
"Strong performance on the revenue side in 2006 and beyond would ensure that government’s deficit targets of 2.1 percent of GDP and public sector deficit of 2.0 percent of GDP in 2006 are met that would pave the way for achieving a balanced budget in 2008," said World Bank country director Joachim von Amsberg.
In a recent Philippine development forum, Von Amsberg noted that if 2005 was the year of tax legislation, 2006 is the year of tax administration.
"The Philippines can draw on national and international best practice to strengthen collection. Measures to improve the performance of the BIR include accelerating efforts to improve taxpayer registration and filing, developing risk-based audits, enforcing sanctions for evasion, and building credibility through the use of information campaigns."
Von Amsberg has also welcomed the creation of a reform manager in the BIR.
"In the BoC, a reform program focusing on building strong leadership, simplifying procedures, and building capacity is crucial," he said. "The recent crackdown on smugglers is a welcome sign and should be expanded."
"In both agencies, improving the framework for performance management would support comprehensive revenue collection initiatives," Von Amsberg added.
"Improving the overall financial balances of government-owned and controlled corporations (GOCCs) would complement revenue enhancement initiatives."
Von Amsberg said accelerating reforms and privatization in the power sector is important. The launching of the wholesale electricity spot market and the successful bidding of the National Transmission Co. (Transco) would help.
Progress on this front would create space to improve expenditures in priority areas such as infrastructure and social services, he added.
The World Bank has acknowledged the significant progress achieved by the Philippines last year. "Fiscal reforms have moved the country away from the acute risk of crisis to a virtuous circle of fiscal reform and restored market confidence," said Von Amsberg.
The forum also welcomed the government’s efforts last year to develop an overall national anticorruption plan of action.
However, Von Amsberg said the country’s rating in some major perception surveys has declined. "The development and robust measures of anti-corruption outcomes, such as cases resolved, cost savings, increased transparency and civil society participation, could lead to improved perception ratings."
"Good governance also requires strengthening the performance and accountability of key government agencies, which will improve the public confidence in government," Von Amsberg added.
http://www.mb.com.ph/MAIN2006040560654.html

demented_pigeon

April 5th, 2006, 04:23 AM

jamaicus, meron kang bagong balita tungkol sa WTO?

JAMAICUS

April 5th, 2006, 04:34 AM

^^ S, what about WTO? Unfair trade, cases, whaT?

demented_pigeon

April 5th, 2006, 04:42 AM

yung tungkol dun sa agricultural subsidies ng first world countries... kahit statistics lang... thanks...

JAMAICUS

April 5th, 2006, 04:48 AM

^^ Sorry, I'm low on WTO news today.

demented_pigeon

April 5th, 2006, 04:49 AM

ahhh salamat na lang... kanina ko pa kasi hinahanap sa agence press, bbc, at cnn yung mga datos

sugbuanon

April 5th, 2006, 05:50 AM

SBMA closes US$ 300M deal with top Chinese glass maker

SUBIC BAY FREEPORT — Subic Bay Metropolitan Authority Administrator Armand C. Arreza has just arrived from China where he closed a US$ 300 million investment deal with the Hebei Jingniu Group, the biggest high-end glass manufacturer in China which is eyeing the Freeport as its distribution hub in Southeast Asia.

Hebei Jingniu plans to put up a production plant in the Subic Bay Freeport Zone, which is expected to generate some 6,000 new jobs from the construction period to its full operation.

“We can see its impact not only in employment but from the export standpoint as well,” Arreza told PNA as soon as he reported to SBMA from his official trip to China with the top-level investment mission led by Trade and Industry Secretary Peter Favila.

During the construction period, the project will hire more than 3,000 skilled and non-skilled workers. Upon completion, the company will employ 2,000 operation workers and 1,000 administrative employees.

Jingniu produces a variety of float sheet glass, solar-control reflective glass and rolling crystallite glass. Its products are exported to more than 70 countries in Europe, Asia, the United States and Africa.

“For instance, the glass components of the high-rise buildings that you see in Makati - a lot of those are imported but now, it’s going to be manufactured completely here in Subic,” Arreza pointed out, adding that “they (Jingniu) want to use Subic as their base to export to the rest of Southeast Asia.”

The Chinese glassmaker is sending a technical team to do soil tests and other technical studies at the possible plant sites after the Holy Week. Two sites have been identified in the Subic Gateway District near the Subic-Tipo expressway.

Jingniu needs more than 100 hectares of flat land to accommodate the facilities to be established for its Freeport operations, which include two online float coated glass lines, two high-tech rolling crystallite glass lines, a glass deep processing line and a crystallite glass deep processing line.

The SBMA CEO noted that the company is also planning to source its silica from the Philippines.

Jingniu is based in Hebei province in Northern China, near Beijing and Taijin. China is the country’s sixth-largest source of foreign direct investments after the United States, Japan, Taiwan, Australia and Korea.

Jingniu is one of only three glass companies in the world that own patents to glass production - seven national patents for rolling crystallite glass and online solar control reflective glass. It is a pioneer in high-technology production of rolling crystallite glass and online float coated glass and has manufacturing and trading companies in Zimbabwe and Kenya.

JAMAICUS

April 5th, 2006, 07:19 AM

Shares close slightly higher for second straight session
Posted: 12:47 PM | Apr. 05, 2006

SHARE prices closed slightly higher for the second straight session on selective buying, with turnover sluggish before the Easter break, dealers said.

The main index closed up 3.70 points at 2,197.90 after trading between 2, 187.22 and 2,200.45.

The broader all-shares index gained 4.72 points at 1,078.72.

Gainers outnumbered losers 69 to 26, while 54 stocks were unchanged.

Volume reached 1.96 billion shares worth 970.36 million pesos.

Philippine Long Distance Telephone Co was top-traded, ending unchanged at 1,935, on volume of 102,500 shares worth 198.2 million pesos.

(1 dollar = 50.99 pesos)

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=05&file=14

JAMAICUS

April 5th, 2006, 10:14 AM

RP still on track for 2006 deficit goal

The Philippines is still on track to narrow its budget deficit to P125 billion ($2.45 billion) or 2.1 percent of GDP this year from P146.5 billion last year, Budget Secretary Rolando Andaya said on Wednesday.

Andaya said the shortfall was expected to hit P122 billion by the end of the third quarter this year because the state's expenditure would be focused in the first three quarters.

A government official told Reuters the government would move to quarterly reporting of the budget deficit from monthly reporting currently.

An increase in a national sales tax helped the government squeeze the budget deficit in February to P25 billion, 8.8 percent below target.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=34896

JAMAICUS

April 5th, 2006, 11:23 AM

World Bank cites RP for better finances
spacer

By EDU H. LOPEZ

The World Bank (WB) has cited the government for improving its finances and welcomed the Arroyo administration’s plans to achieve a front-loaded revenue adjustment of 1.4 percent of gross domestic product (GDP) this year.

"Strong performance on the revenue side in 2006 and beyond would ensure that government’s deficit targets of 2.1 percent of GDP and public sector deficit of 2.0 percent of GDP in 2006 are met that would pave the way for achieving a balanced budget in 2008," said World Bank country director Joachim von Amsberg.

In a recent Philippine development forum, Von Amsberg noted that if 2005 was the year of tax legislation, 2006 is the year of tax administration.

"The Philippines can draw on national and international best practice to strengthen collection. Measures to improve the performance of the BIR include accelerating efforts to improve taxpayer registration and filing, developing risk-based audits, enforcing sanctions for evasion, and building credibility through the use of information campaigns."

Von Amsberg has also welcomed the creation of a reform manager in the BIR.

"In the BoC, a reform program focusing on building strong leadership, simplifying procedures, and building capacity is crucial," he said. "The recent crackdown on smugglers is a welcome sign and should be expanded."

"In both agencies, improving the framework for performance management would support comprehensive revenue collection initiatives," Von Amsberg added.

"Improving the overall financial balances of government-owned and controlled corporations (GOCCs) would complement revenue enhancement initiatives."

Von Amsberg said accelerating reforms and privatization in the power sector is important. The launching of the wholesale electricity spot market and the successful bidding of the National Transmission Co. (Transco) would help.

Progress on this front would create space to improve expenditures in priority areas such as infrastructure and social services, he added.

The World Bank has acknowledged the significant progress achieved by the Philippines last year. "Fiscal reforms have moved the country away from the acute risk of crisis to a virtuous circle of fiscal reform and restored market confidence," said Von Amsberg.

The forum also welcomed the government’s efforts last year to develop an overall national anticorruption plan of action.

However, Von Amsberg said the country’s rating in some major perception surveys has declined. "The development and robust measures of anti-corruption outcomes, such as cases resolved, cost savings, increased transparency and civil society participation, could lead to improved perception ratings."

"Good governance also requires strengthening the performance and accountability of key government agencies, which will improve the public confidence in government," Von Amsberg added.

http://www.mb.com.ph/MAIN2006040560654.html

JAMAICUS

April 5th, 2006, 11:25 AM

RP sees Japan trade deal in July
Posted: 4:43 PM | Apr. 05, 2006

TOKYO -- Philippine Foreign Affairs Secretary Alberto Romulo said Wednesday he hoped to sign a delayed free-trade deal with Japan in July to mark the 50th anniversary of the re-establishment of relations after World War II.

Romulo said he handed an invitation to Prime Minister Junichiro Koizumi to take part in anniversary celebrations where the free-trade agreement would be signed.

"I believe the goal that we both have is when we celebrate the 50th anniversary of normalization of Japan-Philippine diplomatic relations. That will be July 23," Romulo said when asked when the countries would sign a trade deal.

"This will define our relationship for the next decade or so. That's why it is important that we have a good agreement," Romulo told a news conference.

Romulo, who is on a four-day visit to Japan, said the two sides had ironed out most issues including investment, tourism and exchanges of workers.

The countries had initially planned to ink the pact last year but disagreements have lingered. Japan has sought a more open investment climate in the Philippines which in turn has pushed to send more workers to Japan, mostly nurses.

Since the re-establishment of diplomatic ties, Japan has become the top aid donor to the Philippines.

Japan has contributed 9.4 billion dollars over the past 23 years or 51 percent of all foreign loans and grants to Manila in the period.

Japanese Foreign Minister Taro Aso told Romulo on Tuesday that Tokyo was willing to consider resuming grant aid instead of loans, according to an official at the talks.

Japan has been seeking closer relations with Southeast Asia including through free-trade deals amid tense relations with its closer neighbor China over its war history.

On Tuesday, Japan said it would propose launching talks in 2008 to create a massive Asian trade bloc of 16 countries.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=05&file=19

JAMAICUS

April 5th, 2006, 02:21 PM

RP must create central trade agency--senator

First posted 05:06pm (Mla time) April 05, 2006
By Veronica Uy
INQ7.net

Subscribe to Breaking News alerts, send ON EXTRA BREAKING to 2207 for Globe, or send EXTRA BREAKING to 386 for Smart.

THE Philippines must create a central agency that will formulate international trade policies, handle trade negotiations, and make sense of all state functions related to global trade, Senator Manuel Roxas II said Wednesday.

In his Senate Bill 2236, the head of the Senate committees on economic affairs and trade and commerce sought to create a “single authoritative agency” on trade policy development and negotiations to be called the Philippine Trade Representative Office.

The former trade secretary said this office would address the “undeniable deficiencies” with the way the Philippines formulated trade policies and carried out trade negotiations.

The proposed measure calls for the appointment by the President of the Philippine Trade Representative and three deputies with a rank of ambassador.

Aside from representing the country in trade negotiations, the trade representative will advise the President on trade policies and act as chief spokesperson in international trade agreements.

The bill also provides that an inter-agency committee and an advisory committee for trade and policy negotiations will assist the representative.

Roxas, who is asking for an initial appropriation of 20 million pesos, named the many line agencies and ad hoc committees with overlapping functions as the Trade and Related Matters, the WTO (World Trade Organization) Desk of the Bureau of International Trade Relations under the Department of Trade and Industry, the Philippine Council on ASEAN (Association of Southeast Asian Nations) and APEC (Asia-Pacific Economic Cooperation), the Philippine Coordinating Committee, and the Department of Foreign Affairs.

“There is clearly a replication of functions and fragmentation of authority which does not serve the country's interest,” Roxas said, echoing the observation of the Philippine Institute for Development Studies, which had said that the “different line agencies sitting in the Trade and Related Matters Committee tend to be caught up in a turf mentality that prevents the creation of a cross-country strategy.”

http://news.inq7.net/breaking/index.php?index=1&story_id=71752

JAMAICUS

April 5th, 2006, 02:38 PM

BOC exceeds Q1 collections target

The Bureau of Customs (BOC) collected P42.28 billion in the first quarter of the year, exceeding its P38.62 billion target for the period, ABS-CBN learned Wednesday.

Customs Commissioner Napoleon Morales said the collections were higher than the P31.17 billion recorded in the first quarter of 2005.

He said the BOC's collections for March reached P16.71 billion, higher than the P14.26 billion target for the month and the P11.38 billion posted on the same month last year.

In January the BOC collected P12.396 billion, 2.6 percent above the collection target of P12.083 for the month, and 17.34 percent more than the P10.564-billion collections in the same month last year.

For February collections were 1.7 percent higher than the P12.282-billion target, and 35.5 percent more than the P9.216 billion in actual collections in the same month last year.

The agency is expected to collect some P197 billion this year, including noncash items and incremental revenues from the implementation of new tax measures, including the expanded value-added tax law. These would help the government keep its budget deficit within a P125-billion ceiling.

The BOC has been intensifying its antismuggling campaign since the start of this year, with the agency leading a recent raid at 168 Mall in Divisoria, Manila, wherein stalls were caught selling items that were allegedly smuggled into the country.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=34912

JAMAICUS

April 6th, 2006, 05:36 AM

GDP growth seen at 5%-6% in next 5 years--ADB
Posted: 10:44 AM | Apr. 06, 2006

THE PACE of economic growth in the Philippines is likely to remain stuck in a tight range over the next five years due to uncertain prospects for agriculture and the country's political troubles, the Asian Development Bank said.

In its Asian Development Outlook for 2006 released Thursday, the ADB said annual GDP growth in the Philippines would likely average 5-6 percent until 2010, compared with 5.1 percent last year.

The government recently scaled down its GDP growth target for this year to 5.5-6.2 percent from 5.7-6.3 percent, as it sees full-year growth for exports weaker than the initial forecast of 10 percent.

The ADB said growth in the medium-term would continue to be supported by remittances from the growing ranks of Filipino workers abroad, which will give a strong boost to domestic demand.

On the supply side, the Manila-based lender said the services sector would continue to drive growth, led by the transport and telecommunications industries.

The government's budget deficit is expected to further narrow this year and in 2007, following "significant achievements" in fiscal reforms, which should support a continued easing of interest rates, the ADB said.

"Further gains in fiscal consolidation, especially demonstration of sustained results in tax administration, will help build credibility and provide the basis for strengthening macroeconomic stability," the ADB annual report said.

However, the ADB said the country's political problems could weigh on investor confidence.

The government launched last month a crackdown on leftist legislators and military officers accused of plotting to topple President Gloria Arroyo.

But her political foes still insist she must step down for alleged cheating in the 2004 presidential polls. She has strongly denied the allegations.

"Political uncertainty has yet to completely subside, and this has the potential to undermine growth prospects over any time scale," the ADB said.

The bank said its forecasts also assume that further progress is made in Manila's power asset privatization program, which has been criticized for moving slowly.

"(Power sector reforms) will help strengthen the investment climate and support a more positive outlook for the medium term," it said.

The ADB said uncertain prospects for agriculture because of the La Nina weather phenomenon, which is expected to bring above-normal rainfall and may reduce crop production, could also drag on the economic growth rate. Agriculture represents a fifth of the country's economy.

The bank sees Philippine exports growing 7 percent this year, compared to the government's downscaled growth forecast of 8 percent.

It expects the services sector to maintain growth of 6.0-6.3 percent in 2006 and 2007, while the industrial sector is seen expanding at around 5 percent over the medium term.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=06&file=6

JAMAICUS

April 6th, 2006, 05:53 AM

World Bank urges RP: Streamline fiscal incentives
spacer

By EDU H. LOPEZ

To facilitate private investments in infrastructure and other sectors, the World Bank has urged government to streamline fiscal incentives.

"An important objective will be the consolidation of the eight investment promotion agencies to address revenue leakages," said World Bank country director Joachim Von Amsberg.

"With over 100 independent incentives in conjunction with a very complicated legislative environment poses a significant challenge for any business."

An underlying source of growth, jobs, and greater inclusion is unleashing the potential of small and medium-sized enterprises, said Amsberg.

"To make this happen, LGUs could reduce red tape for establishing and running businesses. An immediate focus should be on streamlining business registration. The development partners can support this and other objectives."

Amsberg stressed that the key to growth is improved infrastructure. "The poor who need better access to market are hampered most by deficient infrastructure.

A critical challenge to improving infrastructure is the strengthening of the government’s institutional capacity."

A key priority will be to improve the overall planning and coordination of infrastructure investment, while ensuring protection of the country’s natural resources, said Amsberg.

"Related to this is the need to shift the oversight agency responsibilities from detailed project-level review to a more forward looking role, including the formulation of strategies and policies."

Amsberg believes that the government could develop a mechanism to select and prioritize strategic investments especially for transport, water and energy.

"A related need is a better implementation model for public-private partnership. For their part, line agencies will need to develop the capacity to better plan, prepare, and implement the prioritized investments."

At the recent Philippine forum, Von Amsberg noted that to reduce poverty, actions are needed to improve the delivery of social services.

"Education outcomes can be improved through efforts to support early childhood education, alternative learning systems, and private sector participation under the Basic Education Reform agenda that makes schools more accountable to parents and teachers. "

Health outcomes can be improved through implementation of programs that support children and women’s health services for early childhood interventions, Amsberg said.

"Improving women’s reproductive health continues to be handicapped by a high rate of population growth. The country needs to find common ground on this difficult issue and define a specific policy and strategy on population, possibly as an element of the government’s health sector strategy."

Von Amsberg said the targeting of social assistance benefits to poor households can be improved by use of evidencebased instruments.

"More can be done for other social services in the areas of social protection, social assistance, and social development especially for vulnerable groups."

The forum participants agreed on a much deeper level of coordination and consideration of an immediate increase of resources for the conflict-affected areas.

They emphasized the need for better tracking of development indicators, greater participation of LGUs, and improved project implementation by the government.

Amsberg said that inequality and exclusion are holding back development of the Philippines.

"Social policies to ensure that all Filipinos benefit from economic development and to ensure that all Filipinos can contribute to development deserve a prominent place in the national policy debate."

Amsberg said the forum also emphasized the need for improving the quantity and quality of social spending particularly in the key focus spending areas of the government.

http://www.mb.com.ph/BSNS2006040660742.html

chixbebe

April 6th, 2006, 09:25 AM

By Lawrence Agcaoili
http://www.manilastandardtoday.com/?page=business04_april06_2006

The national government expressed confidence it outperformed fiscal goals during the first quarter despite higher expenditures from pump priming activities.

Finance Secretary Margarito Teves told reporters after the Investors’ Night sponsored by the Manila Overseas Press Club (MOPC) Tuesday night that the national government continued to outperform its targets due to higher revenues and prudent spending.

“Revenues are up while expenditures exceeded the program due to pump priming activities but we are definitely better than the program,” Teves said in an interview with reporters.

The interagency Development Budget and Coordination Committee (DBCC) expects the budget deficit to hit P71.8 billion during the first quarter of the year or 13.14 percent higher than the P63.46 billion shortfall incurred during the same period last year.

He said the figures are still being finalized by the Bureau of Treasury and National Treasurer Omar Cruz is expected to make the official announcement in two weeks.

Teves said both the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) exceeded their revenue collection goals from January to March this year.

Budget chief Rolando Andaya Jr. said in a statement that the better-than-program budget deficit during the first three months of the year was achieved despite the frontloading of releases for the “pump-priming” program of the government.

JAMAICUS

April 6th, 2006, 02:42 PM

Peso slips to 51.12:$, stocks up

The peso closed at 51.12 against the US dollar Thursday, three centavos weaker than Wednesday's finish of 51.09.

The peso opened 51.10 and the dollar was traded from 51.06 to 51.175. Transaction volume reached $321 million.

Dealers said the peso tracked Asian currencies, which were generally subdued following stellar gains the previous day.

The Philippine Stock Exchange index (PSEi), meanwhile, breached the 2200 resistance level as investors accumulated select stocks on hopes for a rally following the long Easter break, traders said.

The PSEi rose 1.0223 percent, or 22.47 points, to 2,220.37.

Except for the property subindex, which retreated, all other sectorial indicators advanced. Gainers outnumbered losers, 62 to 33, while 56 stocks were unchanged. Volume was pegged at P2.41 billion.

Alan Canizares, CitisecOnline analyst, said good economic fundamentals including the low budget deficit and the steady inflation along with good corporate results lifted the stocks.

He said he expects trading to be cautious next week ahead of the long Easter weekend. Financial markets will be closed April 13 and 14 for the holiday.

Top-traded telecoms giant Philippine Long Distance Telephone Co. jumped P40 to P1,975 tracking the advance in its American Depositary Receipts.

Bank of the Philippine Islands finished unchanged at P62. BPI announced during its stockholders meeting Wednesday morning that it expects a 10 percent increase in net income this year.

BPI's sister firm, Ayala Land, shed P0.25 to P11. Ayala Land said it has earmarked P4 billion for the ongoing development of its shopping mall projects.

Megaworld Corp. rose P0.02 to P1.56 a share.

Equitable PCI Bank dropped P1.50 to P73 after the SM group clarified that it has not received a binding offer for its 34 percent stake in EPCI.

Banco de Oro advanced P1 to P36.50 per share.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=35062

sugbuanon

April 6th, 2006, 09:20 PM

US firm invests $ 25M on technopark development in Clark

CLARK, Pampanga - A major industrial developer based in the United States and the Middle East will invest $ 25 million for the development of 228- hectare technopark inside Clark Special Economic Zone (CSEZ).

This, after Clark Development Corporation (CDC) President Antonio R. Ng signed a business agreement with Peregrine Development International President Dennis L. Wright to realize the development of the Clark Technopark Project.

The agreement was signed Tuesday during the 59th birth anniversary of President Arroyo who has included Clark in her 10-point agenda as one of the country's prime movers for economic growth.

According to Ng, the technopark project here is expected to generate employment for at least 20,000 workers once fully developed.

Peregrine has been involved in the development of industrial estates in Kuwait and the US which has been generating thousands of employment for their various clienteles.

Wright said that Peregrine provides specialized knowledge and expertise in all areas necessary to develop and execute work in emerging and transitional markets.

The firm has also an extensive experience in strategic planning and marketing where the firm uses its vast networks and relationships to shape the best possible outcome for business needs of their clients, Wright said.

Ng said the technopark project rise at the Industrial Estate 5 (IE5) near the aviation complex here. The project is included in the master plan designed for the development of the economic zone.

Ng said Peregrine would develop areas that could accommodate high-tech manufacturing firms, which are mostly labor intensive in nature. Clark is host to some American, Japanese and Taiwanese companies that are into production of electronic components, semiconductors, touch panels, liquid crystal displays and other products.

Meanwhile, Angelo C. Lopez, Jr., CDC public relations manager, said that these new projects are geared towards making Clark as a center for jobs and investments.

"We want Clark to continue to serve as an anchor for economic development where thousands of jobs could be generated by hosting more investors," Lopez said.

Lopez also attributed the industrial development program in Clark to key initiatives being pursued by the current CDC management.

amras

April 7th, 2006, 12:54 AM

ADB cites factors stunting RP growth
Warning: Don't rely on OFW money

First posted 01:43am (Mla time) April 07, 2006
By Doris C. Dumlao
Inquirer

Editor's Note: Published on page A1 of the Apr. 7, 2006 issue of the Philippine Daily Inquirer

THE ASIAN Development Bank yesterday warned that sluggish investments, along with high dependence on overseas Filipino workers' remittances and consumption, were stunting potentials for higher economic growth in the Philippines.

In its flagship annual economic publication, Asian Development Outlook (ADO), the bank projected that the country's gross domestic product would rise by only 5 percent this year against the government's downscaled growth target of 5.5 to 6.2 percent and the 5.1-percent growth posted in 2005.

full article can be found here (http://news.inq7.net/nation/index.php?index=1&story_id=71906)

beads_strawberries

April 7th, 2006, 06:02 AM

The ADB opinion is premised on a position of strength gained by the economy as a result of prudent and persistent push for economic reforms. It is not a negative result, as per ADB senior economist Felipe. What the ADB stated is that potentials for HIGHER economic growth in the country could be achieved by further enhancing the present economic agenda of the government This coupled with less political noise could create long term impact on our economic stability. I think this should be noted by the opposition leaders so as to prevent them, if possible, to further create political noises just so to pester the administration.

JAMAICUS

April 7th, 2006, 10:03 AM

JAMAICUS

April 7th, 2006, 10:43 AM

Forex reserves at new record high in March
Posted: 3:17 PM | Apr. 07, 2006

THE COUNTRY'S gross international reserves (GIR) hit a new all-time high of 20.844 billion dollars at end-March, boosted by the government's latest foreign borrowings, the central bank said.

In a statement, the central bank said its foreign exchange operations and income from investments abroad also helped lift the GIR, which grew 1.2 percent from the previous month's 20.586 billion dollars.

The end-March level was adequate to cover about 4.3 months of imports of goods and payments of services and income, the central bank said in a statement.

It was also equivalent to 3.3 times the country's short-term debt based on original maturity and 1.8 times based on residual maturity.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=07&file=13

JAMAICUS

April 7th, 2006, 12:42 PM

Peso steady at 51.12:$, stocks dip

The peso closed unchanged at 51.12 against the US dollar Friday.

The peso opened 51.10 and the dollar was traded from 51.07 to 51.145. Transaction volume amounted to $419 million.

Dealers said most Asian currencies were little changed Friday.

Share prices, meanwhile, closed lower on profit-taking. The Philippine Stock Exchange index lost 0.4454 percent, or 9.89 points, to 2,210.48 after rising 1.02 percent on Thursday to a six-year high.

The holding firms and mining and oil subindices advanced while the all shares, financials, industrial, property and services subindicators retreated. Losers outnumbered gainers, 39 to 44, while 58 stocks were unchanged. Volume was pegged at P1.32 billion.

Mark Alan Canizares, analyst at CitisecOnline, said the market will continue to see some correction in the coming sessions as investors will likely take a more cautious stance given the long Holy Week break.

He clarified this will not mean the market's upward trend will slow down.

Top-traded SM Investments Corp. fell P1 to P227.

Ayala Corp. shed P7.50 to P350 per share.

Equitable PCI Bank ended flat at P71.50. Equitable PCI said it has no information regarding the reported deadline extension of the GSIS' sale of its 12 percent stake in the bank.

Bucking the downtrend were mining stocks following the continuous surge in metal prices.

Philex Mining B rose P0.20 to P3.10 while its A shares also finished higher by P0.15 to P3.05.

Lepanto Mining A inched up P0.01 to P0.28 even after reporting a net loss of P400 million for 2005.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=35174

adverg

April 7th, 2006, 01:02 PM

It is a matter of a process, let us be patience. We been patience for few decades, why now we can't be since we see the light of hope. God Bless The Philippines.

chixbebe

April 7th, 2006, 01:55 PM

Government revenues are expected to hit P1.655 trillion by 2010, rising to about 17.6 percent of gross domestic product (GDP) from 15.2 percent in 2005.

Projections made by the Department of Finance (DOF) showed that government revenues would increase by an average of 15.15 percent per year in the next five years due mainly to the rise in tax rates.

This year, the DOF said total revenues would reach P978.844 billion, rising to 14.8 percent of GDP from to 13.1 percent last year. By 2007, total revenues would pass the trillion-mark and reach P1.114 trillion, going up to 16.6 percent of GDP.

At the end of the Arroyo administration’s six-year term, government revenues would reach P1.163 trillion or 15.5 percent of GDP. Revenues would go up to P1.418 trillion before finally hitting P1.655 trillion.

The projections indicated that tax revenues would comprise the bulk of government revenues, with non-tax revenues accounting for less than 10 percent, mainly from fees and charges, privatization proceeds, foreign grants and income by the Bureau of Treasury (BTr).

Tax revenues alone are expected to reach P884.829 billion or 11.3 percent of GDP as approved by the Development Budget Coordinating Committee (DBCC).

The DOF said revenues from the Bureau of Internal Revenue (BIR) would account for over half or P675.353 billion of total revenues, equivalent to about 11.3 percent of GDP. This would go up to 11.9 percent of GDP equivalent to P793.932 billion.

BIR collections would go up to P915.771 billion or 12.2 percent of GDP but the bureau would not pass the trillion-mark until 2009 when its collections are expected to reach P1.045 trillion.

By 2010, the DOF said the BIR’s revenue collections would reach P1.233 trillion, equivalent to 13.1 percent.

On the other hand, the Bureau of Customs (BOC) is expected to collect a total of P200.850 billion, equivalent to about 3.4 percent of GDP in 2006, mostly from import duties and the value-added-tax on imports.

BOC collections are projected to go down to 3.3 percent of GDP by 2007 although the actual amount would go up to P220.672 billion. In 2008, BOC revenues would go up to P238.021 billion although as a percentage of GDP, this would drop to only 3.2 percent.

By 2010, BOC collections are projected to reach P305.952 billion, steady at 3.2 percent of GDP.

--By Des Ferriols
The Philippine Star 04/07/2006
http://www.philstar.com/philstar/NEWS200604070713.htm

normandb

April 7th, 2006, 02:10 PM

It is a matter of a process, let us be patience. We been patience for few decades, why now we can't be since we see the light of hope. God Bless The Philippines.

nalito ako sa sinabi mo :D

JAMAICUS

April 7th, 2006, 02:34 PM

Index surges to highest level in nearly 7 years

The Philippine Star 04/07/2006

Share prices rose for a third day, lifting the index to its highest close in almost seven years after the government said its deficit in the first quarter was probably lower than earlier forecast.

Philippine Long Distance Telephone Co. (PLDT), International Container Terminal Services Inc. (ICTSI), and Security Bank & Trust Co. jumped to their highest closes on record, sending the index to its highest since Aug. 27, 1999.

The Philippine Stock Exchange Index added 22.47, or one percent, to 2,220.37 at the noon close, extending a two-day, 0.4 percent gain.

"A lower deficit than what the market has priced in is good for sentiment,’’ said Eduardo Banaag, an equity fund manager at Manila-based First Metro Investment Corp.

The first-quarter deficit was probably lower than the government’s P72 billion estimate for the period, indicating a "stable" fiscal position and sending "a strong signal" that the budget will be balanced by 2008, Finance Undersecretary Gil Beltran said. Beltran said the government may post a surplus this month as individuals and companies pay taxes.

PLDT, the countrys largest phone company, surged P40, or 2.1 percent, to P1,975, its biggest gain since Feb. 15. SM Prime Holdings Inc., its largest shopping mall operator, added 10 centavos, or 1.3 percent, to P7.90, after climbing 2.6 percent in the past two days.

The government has raised taxes to help it trim the budget deficit this year to P125 billion, a seven-year low. It is also betting the additional taxes will help it trim P3.9 trillion of debt, swollen by eight years of budget deficits.

Optimism over the government’s improving finances helped the yield on the two-year bond fall to 7.12 percent on April 3, the lowest since Bloomberg began tracking the two-year securities. The peso has also strengthened, gaining 3.8 percent against the dollar this year, the fourth-biggest gainer among Asian currencies.

"The investment story continues to improve in the Philippines," Chris Wood, regional strategist at CLSA, said in a report today. "The Philippines is on the brink of a virtuous cycle with the peso having already appreciated and the sovereign bond spread having already declined."

Ayala Corp., owner of the country’s second-largest lender by assets, its largest property developer, and second-biggest mobile phone company, rose P5, or 1.4 percent, to P357.50. ICTSI, its largest non-government port operator, gained P1, or 8.5 percent, to a record P12.75, as it had its biggest gain since Jan. 17. – Bloomberg

http://www.philstar.com/philstar/NEWS200604070703.htm

JAMAICUS

April 7th, 2006, 02:35 PM

Gov’t sees budget surplus in April due to tax payments

The Philippine Star 04/07/2006

The Philippines expects a surplus in its budget this month as individuals and companies pay income and value-added taxes, Finance Undersecretary Gil Beltran said yesterday.

The government will probably beat its P72-billion budget deficit estimate for the first quarter, Beltran said, without providing figures. The shortfall totaled P40.4 billion in January and February, less than the P48.1 billion estimate for the two-month period.

"We usually have a surplus in April because its tax payments’ time," Beltran said. "This shows that our fiscal position is very stable and it’s a strong signal to investors of our commitment to balance the budget by 2008."

President Arroyo aims to narrow the budget shortfall to P125 billion this year, the smallest in seven years, helping reduce borrowings. Government debt has nearly tripled to P3.9 trillion since 1997, the last time the nation posted a surplus in its annual budget.

The Philippines posted surpluses in its monthly budget in August, June and April last year. Revenue exceeded spending by P3.3 billion in April 2005, according to Bloomberg data. The surpluses helped the government cap the deficit at P146.8 billion in 2005, less than its 180 billion peso estimate.

A narrowing deficit will help the government reduce borrowing costs because investors will demand lower premiums when buying its debt. The government is spending a third of its budget to pay interest on its debt and lower borrowing costs will mean more spending on building roads, bridges and other public works, spurring economic growth in a nation where a third of the population lives on less than 60 US cents a day.

"Bond yields will likely fall further with favorable revenue numbers and stable inflation," said Jonathan Ravelas, bond and currency strategist at Banco de Oro.

Yields on government debt due in two years or longer will likely fall by a quarter of a percentage point more this week, Ravelas said.

Ravelas said he expects the budget deficit to reach P120 billion this year, lower than his previous forecast of P140 billion.

The government this quarter will be spending more on irrigation, farm-to-market roads and other infrastructure that would boost farm output, Beltran said. Agriculture accounts for a fifth of the economy. The government expects the economy to expand 6.2 percent this year from 5.1 percent in 2005.

"We will be front-loading our spending for infrastructure, especially for agriculture, before the planting season starts in June," Beltran said.

National Treasurer Omar Cruz said the extra revenue from the changes in value-added-tax will likely be counted in this month’s tax collection. The government may release revenue and spending figures for March and for the first quarter by April 21, he said.

Standard & Poor’s and Fitch Ratings in February raised their outlook on the nation’s junk debt ratings to stable from negative after Arroyo increased and broadened the value-added tax. S&P rates the nation’s long-term foreign-currency debt BB-, three rungs below investment grade. Fitch’s rating is one step higher than S&P. – Bloomberg

http://www.philstar.com/philstar/NEWS200604070704.htm

cyrusal

April 7th, 2006, 02:48 PM

Ganda naman ng mga extra-extra ng good news na yan.. sana mawala din ang mga extra-extra kurakot ng mga opisyal ng gobyerno..

richard24

April 7th, 2006, 03:42 PM

nalito ako sa sinabi mo :D

ako din. :sleepy:

JAMAICUS

April 8th, 2006, 05:42 AM

LPG prices rolled back by P1.50 per kilo
spacer

By MYRNA M. VELASCO

For the second time this month, the country’s oil companies have brought down prices of liquefied petroleum gas (LPG) by P1.50 per kilogram (or P1.68 inclusive of value added tax).

Those who announced price cuts effective April 7 were Petron Corporation, Pilipinas Shell Petroleum Corporation, Chevron Philippines, Inc. and Total Philippines Corporation.

This brings to P3.00 per kg the total drop in LPG prices this April, following the drastic 2 per metric ton plunge in LPG contract prices.

With the winter months already at tailend, international LPG contract costs have softened to 8 per MT from the March figure of 0 per MT.

Energy Secretary Raphael P.M. Lotilla noted that they are expecting a series of price cuts in LPG but not in other fuel products such as diesel, the regional spot prices of which are still increasing.

"Oil prices are very volatile, the difference between March and February prices is at the very least for diesel," the energy chief said.

Oil firms are expected to increase prices for diesel products.

"There is a lot of pressure impinging on fuel prices, that’s why we’re glad LPG prices are going down, especially for the taxis that have shifted from gasoline to LPG," Lotilla said.

The benchmark price for diesel based on the Mean of Platts Singapore (MOPS) has gone up to .99 per barrel in March from the February average of .90 per barrel. April prices have even gone higher hitting .01 per barrel average as of April 6.

Unleaded gasoline in the Asian regional market, meanwhile, went up to .64 per barrel this March from .02 the previous month; while the April average is at .82.

Dubai crude, which is the benchmark for refiners, has also gone up this month to .29 as against the March average of .82 per barrel.

http://www.mb.com.ph/MAIN2006040860931.html

[dx]

April 8th, 2006, 06:20 AM

ADMINISTRATION officials speak of the strong peso and the resurgent stock market not only as if they were signal achievements but also powerful engines that would propel the country to the long-awaited economic takeoff. "The strong peso represents a resurging economy," Presidential Political Adviser Gabriel Claudio was quoted as saying earlier this year. "Eventually it is the peso that will silence detractors of the government and their destructive type of politics."

Claudio should just stick to politics. Very few people with some familiarity with economics would agree that a strong peso is an unqualified blessing. In fact, several economists have been warning that the strong peso has weakened the competitiveness of Philippine exports aside from diminishing the purchasing power of families who depend on the remittances of overseas workers. And many of them have called for some form of intervention to moderate the rise of the currency.

But isn't the strong peso driving economic growth? Not at all, said the Asian Development Bank. On the contrary, the high dependence on foreign exchange remittances and consumption, together with sluggish investments, is weighing down the Philippine economy, the ADB said in its latest "Asian Development Outlook." And whatever growth the country has achieved is not really something to crow about-not by Asian standards especially.

For this year, the ADB sees the Philippine gross domestic product growing by 5.0 percent -- a shade slower than last year's 5.1- percent growth rate but way below the government's forecast of between 5.5 and 6.2 percent -- and inching up to 5.3 percent in 2007. Such growth rates put the Philippines among the very few economic laggards of Asia, ADB senior economist Jesus Felipe has pointed out.

How badly it is lagging can be seen from a comparison with the ADB's growth forecast for the region. The bank projects Southeast Asia's GDP to expand at 5.5 percent this year, accelerating to 5.7 percent next year. On the other hand, the Asian economy as a whole will grow at a much faster rate of 7.2 percent this year and slow down somewhat to 7.0 percent the following year. China and India will lead the charge with growth rates of 9.5 percent and 7.8 percent, respectively, this year; and 8.8 percent and 7.8 percent the following year.

If having one of the slowest growth rates in the region already looks bad, what makes things even worse is that no takeoff is in sight. "There is no immediate prospect of a significant improvement in the growth outlook," says the ADB report. Looking a little further into the future, it predicts the growth rate to move within the range of 5.0 to 6.0 percent until the year 2010. Felipe said the Philippine economy "has only marginal scope for fiscal or monetary maneuver to support demand and growth."

In other words, there is little government can do to spur higher growth rates in the next few years. But that is not an excuse for government to do nothing. What the country needs are more investments to drive growth. "No investment, no growth," Felipe said. Further improvements in tax collection and further reductions in the budget deficit could strengthen economic stability, the ADB says. "To invigorate investment, momentum must build behind reforms."

From sick man to laggard -- that's how far the country has progressed in the last few years. And that should be a sobering thought for government officials who keep boasting about how great the government fiscal reforms have been and how the peso has become stronger, and how the Philippine stock market has become the best performer in the region.

Inq7 Editorial - April 8,2006

JAMAICUS

April 8th, 2006, 06:24 AM

Forex reserves at new historic high
Posted: 1:43 AM | Apr. 08, 2006

THE country's gross international reserves to a new historic high of $20.84 billion at end-March, up 1.2 percent from $20.59 billion at end-February, the Bangko Sentral ng Pilipinas (BSP, the central bank) said Friday.

The increase was due "mainly to the deposit by the national government of its loan proceeds, as well as the BSP's foreign exchange operations and income from investments abroad," BSP Deputy Governor Nestor Espenilla said.

The buildup in the reserves over the past few months has been supported by proceeds from a front-loading of the government's foreign borrowings, money remittances from overseas Filipino workers, and, to a certain extent, foreign direct investment and foreign portfolio investments.

In the January-March quarter, the government sold $2.1 billion worth of bonds in the global market, inflows from which were partly offset by payments of maturing foreign debts of the public sector, which accounted for 67 percent of the country's $54.2-billion foreign debt as of end-2005.

The gross international reserves, or GIR, consist of the BSP's gross foreign currency holdings, gold reserves, Special Drawing Rights (the currency of the International Monetary Fund) and foreign investments. It is an indicator of the country's ability to service the foreign exchange requirements of the economy for importation and debt servicing.

Espenilla said the end-March GIR was enough to cover about 4.3 months' worth of imports of goods and payments of services. With INQ7.net

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=08&file=2

JAMAICUS

April 8th, 2006, 02:28 PM

Teves wants balanced-budget target moved back
Posted: 1:42 AM | Apr. 08, 2006

FINANCE Secretary Margarito Teves has recommended to the Development Budget Coordination Committee, which sets the government's economic targets, to move back the target of balancing the budget to 2010 from 2008, to free up more funds for economic pump-priming.

The present targets are a zero deficit in the budget in 2008, a budget surplus of P12.1 billion -- 0.1 percent of the gross domestic product -- in 2009 and a budget surplus of P17 billion -- 0.2 percent of the GDP -- in 2010.

According to the latest forecasts of the Development Budget Coordination Committee (DBCC), government debt will slow down to 68 percent of the GDP this year from 72 percent in 2005, and further to 43 percent of the GDP in 2010.

Teves said that instead of tightening spending to achieve a budget surplus starting in 2009, the government should have leeway for increased spending for priority sectors.

An Inquirer source said the DBCC would stick to its commitment to balance the budget by 2008, after front-loading tax and other reforms, but "agreed to use existing fiscal figures up to 2008 and revise those for 2009 and 2010 as proposed by Secretary Teves."

A balanced budget is not a prerequisite for an upgrade of the government's credit rating, said Agost Benard, associate director for US-bssed credit rating firm Standard & Poor's.

Benard said at a recent forum that "what's important is the capacity to generate more revenues, to reduce your outstanding debt stock and at the same time increase spending for infrastructure and education in order to increase future growth prospects." Doris Dumlao, with INQ7.net

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=08&file=1

JAMAICUS

April 9th, 2006, 01:15 PM

Sunday, April 09, 2006
Traceability of Philippine goods to be introduced this year

IF A FILIPINO-American buys Manila mango or a familiar brand of soy sauce in a supermarket in California, can he trace back the product to the manufacturer or exporter in the Philippines?

The present tracing system for Philippine exports are too cumbersome and costly, finding out for sure where it really originated, is a hit or miss affair.

Most likely, the mango came from Mexico and the soy sauce is an imitation made in Thailand or China.

The technology is now available to keep track of products from the moment they are released from the factory to the time and place where a buyer consumes or uses it.

Catching fire elsewhere in the world in the wake of more stringent standards on health, safety and quality of goods that get across national borders, the GS1 traceability standard and its enabling technology will be introduced in the Philippines this coming July.

GS1 Philippines is teaming up with the Philippine Exporters Confederation, Inc. (Philexport) to spearhead the adoption of the emerging global traceability standard.

They have targeted chief executives of leading manufacturers in a forum that introduces the system.

It was learned that already in use in 150 countries, the GS1 traceability standard has been effective in detecting fake products particularly in pharmaceuticals, preventing bio-terrorism, and plain detecting of technical smuggling.

More importantly, traceability standards has made it more efficient the new supply chain management system and keep the quality of traded goods at a high level. (Abe P. Belena/Philexport News and Features/Sunnex)

http://www.sunstar.com.ph/static/man/2006/04/09/bus/traceability.of.philippine.goods.to.be.introduced.this.year.html

JAMAICUS

April 10th, 2006, 06:03 AM

Gov't allots extra P410B for pump-priming
Posted: 7:10 PM | Apr. 09, 2006

Doris C. Dumlao

Published on Page B1 of the April 10, 2006 issue of the Philippine Daily Inquirer

THE GOVERNMENT has committed to allocate p410.4 billion of its revenues over the next three years to boost spending for infrastructure and other priority sectors.

The inter-agency Development Budget Coordination Committee approved last week a plan to set aside an extra budget each year from 2007 to 2009 for new projects in four priority sectors--infrastructure, basic education, health, and government compensation or personal services.

The budget would amount to P49.6 billion for 2007, P127.3 billion for 2008 and P233.5 billion for 2009, official documents showed.

Out of additional funds earmarked on top of obligations already programmed for projects in the pipeline for each year, infrastructure will get the lion's share in line with the government's target to raise annual infrastructure spending as a ratio of gross domestic product from 2.2 to as much as 5 percent over the medium term.

Based on the plan, infrastructure spending will increase by P28.1 billion in 2007, P75.9 billion in 2008 and P149.7 billion in 2009.

For the three-year period, infrastructure will get a total of P253.7 billion or 62 percent of the extra budget, the documents showed.

Projects focused on basic education, on the other hand, will get an additional P55.8 billion for the next three years, health and personal services will receive P4.6 billion, and personal services, P97.4 billion.

With this "forward-looking" budget process, the government hopes to match costs of ongoing projects with existing revenue measures as well as measure the leeway for new programs.

Based on estimates from the National Economic and Development Authority, the country needs P1.1 trillion in fresh investments from this year to 2010 to unclog infrastructure bottlenecks in transportation, power, water, communications and social safety nets.

Asked whether he was confident that the funds needed to fill the country's huge infrastructure backlog would be raised, Economic Planning Secretary Romulo Neri said: "Our problem is not financing. Our problem is choosing the right projects. If there are good projects, the financing will come."

Finance Undersecretary Gil Beltran said the DBCC's approval of "allocable" project for the next three years meant that these identified expenditures would automatically be included in the annual budget to be submitted to Congress for each year.

"Our focus is really on infrastructure," he said.

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=10&file=1

JAMAICUS

April 10th, 2006, 06:36 AM

Study: RP can replicate economic boom in Chile

The Philippines can follow in the footsteps of Chile and turn its abundant mineral resources into national wealth to get Filipinos out of poverty while protecting the environment.

In a study by the University of Asia and the Pacific, the Philippines is prodded to duplicate the growth and development of Chile’s mining industry, with active participation of foreign investors, to become an engine of economic growth.

In fact, formerly poor and undeveloped countries like Canada and Australia started their march toward economic prosperity by developing their rich natural resources through foreign investments and technical know-how in mining.

Mining as lead industry in Chile

With mining as the lead industry for its economic prosperity, Chile is now ahead of several developing countries including Malaysia, Thailand, Mexico, Brazil, Argentina, Indonesia and the Philippines.

Last year, Chile’s mining industry allowed it to post a gross domestic product of 6.1 percent; increased its trade surplus to 0.2 billion. Its mineral imports reached 0.6 billion. Its economy was primarily driven by its mining industry, which accounts for 8.0 percent of gross domestic product and 55 percent of exports.

While mineral deposits of Chile are primarily copper (it is the world’s top producer of copper), in contrast the Philippines has substantial deposits of gold, copper, nickel and chromites (making it the world’s fifth largest mineral deposits).

Potential buyers

While the boom in Chile’s mining industry started with the high economic growth of China (which steadily bought Chile’s mineral resources) in the second half of the 1990s, the Philippines’ mining development was stalled when the constitutionality of the Philippines’ Mining Act of 1995 was challenged (although it was later held constitutional by the Supreme Court in 2004).

Already, China has expressed its willingness to buy available iron ores from the Philippines for its steel industry because it is not economical for China to import from far-away places considering the transport costs.

The big buyers of mineral supplies aside from China are Japan, South Korea, Europe and North America. China, the world’s fastest growing economy and forecasted to be the biggest economy by 2020 is the voracious importer of available large mineral supplies of Chile, Peru and African countries.

Large supply of mining deposits

The availability of large supply of diversified mining deposits in the Philippines (copper, gold, nickel, chromite and silver) could supply the large requirements in nearby markets of China, Japan, South Korea and India, thus, it could edge out suppliers of mineral resources coming from countries in South America, Africa and Australia.

Mining has multiplier effect as direct job and business opportunities have a multiplier effect as they encourage new business to be put up and employ more people. These are on top of the taxes mining firms will be paying the government.

New mining giant in Asia

Revitalizing the mining sector can make the Philippines a new mining giant in Asia. Mining will increase tax collection, reduce creditor risk perceptions and improve credit rating, which will reduce the interest that foreign creditors charge the country for its loans.

It will also allow the country to pay its huge foreign and domestic debts, generate substantial fiscal revenues for national development, stabilize and strengthen the local currency and foreign exchange reserves, upgrade its educational and health sectors and modernize infrastructure.

The study also said that the impact of mining operations on the country’s environment and local communities can be minimal if implementing rules and regulations will be strictly followed and monitored by the government preventing abuse.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=35386

stephencua

April 10th, 2006, 06:48 AM

sana nga magaya natin to.. our country and people deserve something good after several long years of hardship..

xDieselJockx

April 10th, 2006, 08:07 AM

@ Jamaicus post^^^^^ The only thing that is stopping the Philippines from moving forward is the very volatile political atmosphere in the country. The safety issue is just secondary but lately it does not even matter anymore since the tourists are gaining more and more confidence in this regard.

JAMAICUS

April 10th, 2006, 08:16 AM

Outsourcing seen sharply rising in the Philippines

First posted 02:01pm (Mla time) April 10, 2006
Agence France-Presse

Outsourcing is the way forward for the Philippines, with employment, revenues and investments from the sector expected to rise by at least 42 percent this year, Economic Planning Secretary Romulo Neri said Monday.

While call centers are now at the forefront, other big business process outsourcing firms are expanding their operations beyond call centers in the English-speaking Southeast Asian country, Neri said in a statement.

He cited a study jointly sponsored by the trade department's Board of Investments and the industry groups Business Process Association of the Philippines, and the Commission on Information, Communication and Technology that forecast outsourcing jobs rising by 44 percent this year compared to 2005.

The study also projected outsourcing revenues growing by 52 percent, and investments surging by 42 percent in 2006, he said.

He said the study forecast investments would be around 12 billion pesos this year and by 2010, up to 1.2 million people would be employed in the sector from 233,000 people at present.

"Outsourcing is a sector with much dynamism. Companies are also getting more creative to respond to industry demand. For example, some firms are buying warehouses because of the lack of office space," Neri said.

He cited industry estimates that business process outsourcing will bring 3.8 billion dollars in revenues to the Philippines this year, close to four times higher than the 2001 figure of one billion dollars.

In 2001, Philippine revenues from business process outsourcing amounted to 349 million dollars, Neri said.

Global consultancy McKinsey has reported that at least 120 outsourcing companies operate in the Philippines, predicting that revenues from the sector would reach 10 billion dollars by 2010, Neri said.

Neri said the Philippines should aim to get 10 percent of the market for medical transcription, which comes amid a massive exodus of Filipino doctors, nurses and other medical workers for higher-paying jobs abroad.

"Think of all the high-paying jobs that will provide our medical professionals," Neri said, citing reports that the United States lacks about 80,000 medical transcriptionists.

Medical transcription outsourcing in the Philippines occupies just a one-percent share of the US market of 12 billion dollars, he added.

Neri said the outsourcing boom should also be a boon for other industries.

"This is clearly a market for the telecom companies offering landline connectivity. Real estate is also benefiting from the surging demand for office space while restaurants open 24 hours a day to cater to the food and leisure needs of call center agents," he added.

http://news.inq7.net/breaking/index.php?index=7&story_id=72279

JAMAICUS

April 10th, 2006, 08:56 AM

Shares close lower on profit-taking
Posted: 1:26 PM | Apr. 10, 2006

Cecille Yap

Subscribe to Business News SMS Alerts on your mobile phone! Send ON EXTRA BUSINESS to 2207 for Globe, or EXTRA BUSINESS to 386 for Smart.

(UPDATE) Share prices closed lower for the second straight session, with turnover thinner than usual as profit-taking continued before the Easter break, dealers said.

The benchmark composite index ended down 8.79 points or 0.40 pct at 2,207. 94, after trading between 2,201.01 and 2,216.73.

The broader all-shares index was 1.30 points lower at 1,095.64.

Losers outnumbered gainers 46 to 32, while 61 stocks were unchanged.

Volume was 1.07 bln shares worth 896.17 mln pesos.

"Obviously, most of the investors are already out on vacation," said Accord Capital Equities Inc analyst Lawrence de Leon.

Dealers said market players who have opted to stay prefer to take square positions ahead of the long break, cashing-in gains made from the market's rally last month.

On-line brokerage firm 2TradeAsia.com said it expects trading to be listless for the rest of the week, with interest to focus on lower-capitalized counters such as mining stocks.

"Second-liners might take the spotlight for now as most fund managers take their early Lenten season break," it said.

Dealers expect the main index to move between 2,200 to 2,230 for the rest of the shortened trading week. The markets here will be closed for the Easter public holidays on Thursday and Friday.

Bank of the Philippine Islands was the top-traded stock, ending steady at 62 pesos on volume of 1.88 mln shares worth 116.9 mln pesos.

Second most active was Philippine Long Distance Telephone Co, which ended steady at 1,975. Its rival, Globe Telecom Inc, was unchanged at 870.

Ayala Land Inc retreated 0.25 to 11, while parent Ayala Corp was down 2. 50 at 347.50. Ayala unit Manila Water Co gained 0.10 at 6.40. Equitable PCI Bank fell 1.50 to 70 on extended profit-taking following last month's sharp gains.

San Miguel A-shares, limited to Filipino investors, were flat at 60. San Miguel B-shares, available to foreign investors, ended unchanged at 79.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=10&file=11

chixbebe

April 10th, 2006, 09:44 AM

By Marianne V. Go
The Philippine Star 04/10/2006
http://www.philstar.com/philstar/NEWS200604100704.htm

The Cabinet has approved the 2006 Investment Priority Plan (IPP) which will now await President Arroyo’s signature before publication.

The 2006 IPP basically carries over the provisions of the 2005 IPP but includes three new provisions that would help the government hold on to its investors and attract investors looking to relocate their investments within the region, extend incentives to all types of exports and provide incentives for producers of capital equipment, raw materials and supply chain providers for manufacturers in the Philippines.

The BOI has also decided to include in the 2006 IPP the grant of incentives to new investors in the cement industry to address a projected shortfall in cement production in the country.

However, the grant of incentives to the cement industry has been placed under the mining section, specifically involving clinker production.

Thus, a cement firm’s clinker production would be entitled to incentives such as those provided for pollution control devices.

These incentives include duty-free importation of capital equipments as well as accelerated depreciation resulting in less income tax.

Separately, regular cement production would be entitled to incentives granted under Executive Order 226 otherwise known as the Omnibus Incentives Act.

These incentives include income tax holiday.

Last year, the government, through the Department of Trade and Industry had launched its RED (Retention, Expansion and Diversification) program which would encourage investors to retain, expand and diversify their activities in the country.

To further strengthen the RED program, the National Economic and Development Authority (NEDA) Board approved the inclusion of the RED program as a preferred investment activity, entitling it to fiscal perks.

Hernandez had earlier explained that the Philippines wants to provide "the necessary environment" for investors to come in.

However, availment of the RED program would still face some limitations and restriction as provided for in Article 11 of the Omnibus Investment Code.

Thus, specifically restricted to avail of the RED program would be commercial banks, savings and mortgage banks, rural banks, savings and loan associations, building and loan associations, development banks, trust companies, investment banks, finance companies, brokers and dealers in securities, consumers’ cooperatives and credit unions, and other business organizations whose principal purpose or principal source of income is to receive deposits, lend or borrow money, buy and sell or otherwise deal, trade or invest in common or preferred stocks, debentures, bond or other marketable instruments generally recognized as securities, or discharge other similar intermediary, trust or fiduciary functions.

The Philippines, in the past, has lost some big investors which chose to locate in other countries in the region due to more attractive incentives offered.

These included Toshiba and Intel which left and then returned.

Philippine economic authorities have thus come up with a program that would now encourage and even reward existing investors that choose to retain their investments, expand or diversify their activities.

Incentives would also be extended to companies that are planning to relocate to the country.

Incentives are normally given only to new investors and are for a specified number of years only.

rockwell baller

April 10th, 2006, 10:32 AM

nagbabakasyon n daw ang mga investors kaya mababa ang phisix sana totoo to at wala nang ibang dahilan hehe! keep up the good economy!

JAMAICUS

April 10th, 2006, 04:24 PM

March net portfolio inflows $91.9M
Posted: 11:05 AM | Apr. 10, 2006

THERE was a net inflow of 91.9 million dollars in portfolio investments last month, bringing the cumulative net inflow for the first quarter to 389.9 million dollars, the central bank said.

A net inflow of 514.8 million dollars was recorded in February, offsetting a net outflow of 117 million dollars in January, central bank data show.

However, the net inflow last month was only about 16 percent of the net inflow of 562.1 million dollars recorded in March 2005.

The first-quarter net inflow was only 63 percent of the net inflow of 1.52 billion dollars recorded in the same period of last year.

"The decline was traced partly to the inclusion in the first-quarter 2005 report of substantial investments in shares that were made in previous years but which were registered with the central bank only in March 2005," the central bank said in a statement.

It also cited greater foreign investment in last year's initial public offerings (IPOs) of Manila Water Co and SM Investments Corp than in this year's IPO of First Gen Corp and Universal Robina Corp's additional stock offer.

Factors that may have contributed to the net inflow in March include the continuing strength of the peso and remittances from Filipinos abroad, it said.

Other contributing factors, the central bank said, were the two-year extension of the Special Purpose Vehicle Law, which should further reduce the non-performing assets of banks; the record earnings of a number of listed firms; and the government's report that its actual budget deficit in February was again significantly below the programmed level.

Of the 1.47 billion dollars in registered foreign portfolio investment in the first quarter, about 77 percent or 1.13 billion dollars was in stocks listed at the Philippine Stock Exchange and 23 percent was in peso-denominated government securities, the central bank said.

"These investments were funded with new inward remittances of foreign exchange converted into pesos through banks operating in the Philippines," it said.

By country of origin, over 81 percent of the new registered investment came from the US, Singapore and the UK.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=10&file=7

JAMAICUS

April 11th, 2006, 05:19 AM

Exports rose 9.8% in February
Posted: 10:41 AM | Apr. 11, 2006

Erik de la Cruz

Subscribe to Business News SMS Alerts on your mobile phone! Send ON EXTRA BUSINESS to 2207 for Globe, or EXTRA BUSINESS to 386 for Smart.

(UPDATE) MERCHANDISE exports in February grew 9.8 percent year-on-year to 3.296 billion dollars, helped by increased electronics shipments, the National Statistics Office (NSO) said.

Electronics exports, which accounted for 65.9 percent of total shipments, rose 10.3 percent to 2.171 billion dollars, the NSO said.

Overall exports for the first two months of the year were up 4.2 percent from a year earlier at 6.562 billion dollars.

Apparel and clothing accessories remained Manila's second top revenue earner, with a combined share of 5.7 percent of total export receipts in February, worth 188.71 million dollars and up 9.3 percent year-on-year.

Exports of ignition wiring sets and other wiring sets used in vehicles, aircraft and ships ranked third, with sales of 60.69 million dollars, down 5.3 percent year-on-year.

The United States was the Philippines' top export market in February, accounting for 18.9 percent of total exports. Shipments to the US rose 19.9 percent year-on-year to 623.34 million dollars.

Exports to Japan accounted for 16.5 percent of receipts in February and were worth 544.53 million dollars, down 11.4 percent from the year earlier.

The Netherlands was the country's third largest export market, with shipments worth 380.60 million dollars or 11.6 percent of the total. Sales to that country rose 32.2 percent year-on-year.

China was the Philippines' fourth major export destination, accounting for 9.7 percent of total sales in January. Receipts were up 26.6 percent to 319.67 million dollars.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=11&file=4

JAMAICUS

April 11th, 2006, 05:23 AM

Rice, corn harvests up in first quarter – DA
spacer

By EDGARD HILARIO

The country’s rice and corn production may exceed expectations in 2006, the Department of Agriculture (DA) said yesterday as it reported that first-quarter harvests surpassed last year’s output by 7.23 percent for rice and 20.5 percent for corn.

Agriculture Secretary Domingo Panganiban said that rice production may reach 3.63 million metric tons while corn production is expected to reach 1.51 million metric tons for the first quarter of 2006, compared to 3.38 million metric tons for rice and 1.25 million metric tons for corn production in 2005.

Panganiban said that as of March 15 this year, 2,397,572 metric tons of palay had been harvested, higher than last year’s production of 2,136,359 metric tons.

The harvest in about 693,204 hectares represents 67 percent of the total expected harvest area for January to March, 2006.

Compared to the production in 2005, this year’s first-quarter rice harvest of 1,902,837 metric tons in irrigated areas was higher by 10.6 percent than last year’s 1,720,867 metric tons. In rainfed farms, the harvest was 494,735 metric tons, an increase of 19.1 percent over the 415,492 metric tons produced in 2005.

With the positive outlook in palay yields, Panganiban said the harvest this year is expected to surpass last year’s production of 3,316,985 to 3,626,512 metric tons for the first quarter this year.

The planting for the first quarter is nearing completion with 703,453 hectares or 98 percent already planted from a total planted area of 716,108 hectares. This period’s plantings were higher by 5.2 percent compared to last year.

As of March 15, the status of standing palay nationwide is as follows: 50 percent was at maturing stage, 19 percent at vegetative, and 31 percent at reproductive stage.

In corn production, Panganiban said, 1,037,450 metric tons was harvested by March 15 from 432,855 hectares representing 72 percent of total expected hectarage for January to March, 2006.

This is higher than last year’s production of 1,002,203 metric tons in a total area of 442,926 hectares.

The area planted to corn this year was lower by 2.3 percent but production surpassed the 2005 record by 6.2 percent.

As of March 15, actual planting had reached 402,914 hectares – compared to 300,921 hectares in 2005. Of the 410,043 hectares intended for corn planting for January to March this year, 98 percent had been planted, higher by 34 percent than last year.

http://www.mb.com.ph/MAIN2006041161180.html

JAMAICUS

April 11th, 2006, 07:07 AM

Shares close higher on bargain-hunting
Posted: 12:52 PM | Apr. 11, 2006

SHARE prices closed higher as bargain-hunting emerged after the market's two-day slide, dealers said.

The benchmark composite index ended up 9.44 points or 0.43 percent at its day-high of 2,217.38. It hit a low of 2,202.08.

The broader all-shares index rose 5.54 points to 1,101.18.

Gainers outnumbered losers 63 to 26, and 48 stocks were unchanged.

Volume reached 2.7 billion shares worth 1.15 billion pesos.

Philippine Long Distance Telephone Co. was the most active stock. It closed up 15.00 pesos at 1,990 on 62,780 shares worth 123.8 million pesos

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=11&file=15

JAMAICUS

April 11th, 2006, 08:00 AM

Gov’t sees 42% rise in outsourcing jobs, investments

MANILA - Outsourcing is the way forward for the country, with employment, revenues and investments from the sector expected to rise by at least 42 percent this year, Economic Planning Secretary Romulo Neri said yesterday.

While call centers are now at the forefront, other big business process outsourcing firms are expanding their operations beyond call centers in the English-speaking Southeast Asian country, Neri said in a statement.

He cited a study jointly sponsored by the trade department’s Board of Investments and the industry groups Business Process Association of the Philippines, and the Commission on Information, Communication and Technology that forecast outsourcing jobs rising by 44 percent this year compared to 2005.

Revenues

The study also projected outsourcing revenues growing by 52 percent, and investments surging by 42 percent in 2006, he said.

He said the study forecast investments would be around P12 billion pesos ($234.83 million) this year and by 2010, up to 1.2 million people would be employed in the sector from 233,000 people at present.

“Outsourcing is a sector with much dynamism. Companies are also getting more creative to respond to industry demand. For example, some firms are buying warehouses because of the lack of office space,” Neri said.

He cited industry estimates that business process outsourcing will bring $3.8 billion in revenues to the Philippines this year, close to four times higher than the 2001 figure of $1 billion.

Transcription

In 2001, Philippine revenues from business process outsourcing amounted to $349 million, Neri said.

Global consultancy McKinsey has reported that at least 120 outsourcing companies operate in the Philippines, predicting that revenues from the sector would reach $10 billion by 2010, Neri said.

Neri said the Philippines should aim to get 10 percent of the market for medical transcription, which comes amid a massive exodus of Filipino doctors, nurses and other medical workers for higher-paying jobs abroad.

“Think of all the high-paying jobs that will provide our medical professionals,” Neri said, citing reports that the United States lacks about 80,000 medical transcriptionists.

Medical transcription outsourcing in the Philippines occupies just a one-percent share of the US market of $12 billion, he added.

Boom

Neri said the outsourcing boom should also be a boon for other industries.

“This is clearly a market for the telecom companies offering landline connectivity. Real estate is also benefiting from the surging demand for office space while restaurants open 24 hours a day to cater to the food and leisure needs of call center agents,” he added

http://www.sunstar.com.ph/static/ceb/2006/04/11/bus/gov.t.sees.42.rise.in.outsourcing.jobs.investments.html

JAMAICUS

April 12th, 2006, 04:09 AM

BI posts P375-M revenue for 1st Q
spacer

By JUN RAMIREZ

The Bureau of Immigration (BI) posted a revenue of more than P375 million in the first three months of the year, up by 31 percent over the agency’s first quarter target of P287 million.

Immigration Commissioner Alipio Fernandez Jr. disclosed the three-onth income was R42-million or 12 percent more than the P333.34 million the bureau collected in the same period last year.

The figures could further increase by as much as P10 million when reports from other immigration sub-ports come in.

He pointed out that despite the political turmoil that gripped the country in the second half of 2005, the BI still managed to post a record collection of P1.3 billion last year, the highest in the bureau’s 65-year history.

Fernandez attributed the steady surge in immigration revenues to the continuing influx of foreigners into the country.

According to BI finance chief Elvira Presado, the BI posted its highest collection in January when it earned P135.59 million, followed by P126.9 million in February, and P113.1 million in March.

Presado said the sharp increase in revenue is significant, considering that the bureau’s income would have been higher were it not for the implementation of the dual citizenship law.

http://www.mb.com.ph/MTNN2006041261261.html

JAMAICUS

April 12th, 2006, 05:01 AM

Philippines records expansion in exports
By Jun Ebias Bloomberg News

TUESDAY, APRIL 11, 2006
MANILA Philippine exports in February recovered from the previous month's slump as overseas sales of computer parts and other electronic goods rose, the government said Tuesday.

Exports gained 9.8 percent from a year earlier to $3.3 billion, the National Statistics Office said. Sales of computer parts and other electronics, which account for 67 percent of exports, rose 10.3 percent in February after declining 2.2 percent in January.

Overall exports in January dropped 0.7 percent.

"Going forward, global electronics demand will support overseas shipments," said Leslie Khoo, an economist at Forecast Singapore, who expects Philippine exports to rise 9 percent this year after slowing to 3.9 percent in 2005.

The government expects exports to gain 8 percent this year, helping create jobs and accelerating economic growth to as much as 6.2 percent. The Philippines has the highest unemployment rate among 14 Asia-Pacific economies and a third of its population lives on less than 60 cents a day.

The Asian Development Bank last week predicted that rising global demand for electronics, which began in 2005, would "continue through most of 2006." Demand for semiconductors and other electronic goods "is expected to be robust," the Manila-based lender said.

IDC, an industry research firm, said last month that worldwide spending on information technology would rise 6.3 percent this year, more than previously forecast, because of better-than-expected growth in Japan and Western Europe. Global technology spending climbed 6.9 percent last year to $1.08 trillion.

Gains in exports, which account for about two-fifths of the $85 billion Philippine economy, last year slowed from 2004's 10 percent increase.

Shipments to the United States, the biggest buyer of local goods, rose 19.9 percent to $623.3 million, faster than the previous month's 0.4 percent gain. Sales to China, the fourth-biggest market, rose 26.6 percent to $319.7 million.

Exports to Japan, the second-largest market, fell for the sixth month in seven, declining 11.4 percent to $544.5 million.

Competition from China and India, particularly in electronics, is hurting Philippine exports to Japan, Khoo, of Forecast Singapore, said.

Christy Tan, a Singapore-based economist at Bank of America, said: "The growth in February is not spectacular enough for us to conclude that this is the beginning of a recovery" for Philippine exports.

Bad-loan ratio decreases

Philippine commercial banks' ratio of bad loans to total credit fell in February to the lowest level in almost eight years as lenders sold some of these assets, the central bank said in a statement.

The ratio fell to 8.27 percent from 8.43 percent in January as bad loans - those at least 90 days overdue - fell 1.5 percent, the bank said. Bad loans declined to 158.7 billion pesos, or $3.1 billion, from 161.1 billion pesos, it said. Total loans grew 0.4 percent to 1.92 trillion pesos.

Declining bad loans may encourage banks to lend more, helping the government spur economic growth to as much as 6.2 percent, from 5.1 percent in 2005. Banks are required to set aside funds as reserves for possible losses from bad loans.

The February bad-loan ratio is the lowest since April 1998's 8.79 percent, according to central bank data.

The central bank is asking Congress to extend for two more years a law granting tax and other perks to lenders selling nonperforming assets such as bad loans and assets seized from defaulting borrowers. The law expired in April last year.

A two-year expansion of the incentives is expected to reduce bad loans by another 100 billion pesos, the central bank governor, Amando Tetangco, said in January. That would cut the bad-loan ratio to less than 7 percent, he said.

Since the law was passed in January 2003, banks have sold 97 billion pesos of bad loans, according to the central bank.

The bad-loan ratio may fall in coming months as more banks sell assets. Bank of Philippines Islands, the nation's second-biggest lender by assets, said last week that it had sold 6.3 billion pesos of bad loans to Avenue Asia.

MANILA Philippine exports in February recovered from the previous month's slump as overseas sales of computer parts and other electronic goods rose, the government said Tuesday.

Exports gained 9.8 percent from a year earlier to $3.3 billion, the National Statistics Office said. Sales of computer parts and other electronics, which account for 67 percent of exports, rose 10.3 percent in February after declining 2.2 percent in January.

Overall exports in January dropped 0.7 percent.

"Going forward, global electronics demand will support overseas shipments," said Leslie Khoo, an economist at Forecast Singapore, who expects Philippine exports to rise 9 percent this year after slowing to 3.9 percent in 2005.

The government expects exports to gain 8 percent this year, helping create jobs and accelerating economic growth to as much as 6.2 percent. The Philippines has the highest unemployment rate among 14 Asia-Pacific economies and a third of its population lives on less than 60 cents a day.

The Asian Development Bank last week predicted that rising global demand for electronics, which began in 2005, would "continue through most of 2006." Demand for semiconductors and other electronic goods "is expected to be robust," the Manila-based lender said.

IDC, an industry research firm, said last month that worldwide spending on information technology would rise 6.3 percent this year, more than previously forecast, because of better-than-expected growth in Japan and Western Europe. Global technology spending climbed 6.9 percent last year to $1.08 trillion.

Gains in exports, which account for about two-fifths of the $85 billion Philippine economy, last year slowed from 2004's 10 percent increase.

Shipments to the United States, the biggest buyer of local goods, rose 19.9 percent to $623.3 million, faster than the previous month's 0.4 percent gain. Sales to China, the fourth-biggest market, rose 26.6 percent to $319.7 million.

Exports to Japan, the second-largest market, fell for the sixth month in seven, declining 11.4 percent to $544.5 million.

Competition from China and India, particularly in electronics, is hurting Philippine exports to Japan, Khoo, of Forecast Singapore, said.

Christy Tan, a Singapore-based economist at Bank of America, said: "The growth in February is not spectacular enough for us to conclude that this is the beginning of a recovery" for Philippine exports.

Bad-loan ratio decreases

Philippine commercial banks' ratio of bad loans to total credit fell in February to the lowest level in almost eight years as lenders sold some of these assets, the central bank said in a statement.

The ratio fell to 8.27 percent from 8.43 percent in January as bad loans - those at least 90 days overdue - fell 1.5 percent, the bank said. Bad loans declined to 158.7 billion pesos, or $3.1 billion, from 161.1 billion pesos, it said. Total loans grew 0.4 percent to 1.92 trillion pesos.

Declining bad loans may encourage banks to lend more, helping the government spur economic growth to as much as 6.2 percent, from 5.1 percent in 2005. Banks are required to set aside funds as reserves for possible losses from bad loans.

The February bad-loan ratio is the lowest since April 1998's 8.79 percent, according to central bank data.

The central bank is asking Congress to extend for two more years a law granting tax and other perks to lenders selling nonperforming assets such as bad loans and assets seized from defaulting borrowers. The law expired in April last year.

A two-year expansion of the incentives is expected to reduce bad loans by another 100 billion pesos, the central bank governor, Amando Tetangco, said in January. That would cut the bad-loan ratio to less than 7 percent, he said.

Since the law was passed in January 2003, banks have sold 97 billion pesos of bad loans, according to the central bank.

The bad-loan ratio may fall in coming months as more banks sell assets. Bank of Philippines Islands, the nation's second-biggest lender by assets, said last week that it had sold 6.3 billion pesos of bad loans to Avenue Asia.

MANILA Philippine exports in February recovered from the previous month's slump as overseas sales of computer parts and other electronic goods rose, the government said Tuesday.

Exports gained 9.8 percent from a year earlier to $3.3 billion, the National Statistics Office said. Sales of computer parts and other electronics, which account for 67 percent of exports, rose 10.3 percent in February after declining 2.2 percent in January.

Overall exports in January dropped 0.7 percent.

"Going forward, global electronics demand will support overseas shipments," said Leslie Khoo, an economist at Forecast Singapore, who expects Philippine exports to rise 9 percent this year after slowing to 3.9 percent in 2005.

The government expects exports to gain 8 percent this year, helping create jobs and accelerating economic growth to as much as 6.2 percent. The Philippines has the highest unemployment rate among 14 Asia-Pacific economies and a third of its population lives on less than 60 cents a day.

The Asian Development Bank last week predicted that rising global demand for electronics, which began in 2005, would "continue through most of 2006." Demand for semiconductors and other electronic goods "is expected to be robust," the Manila-based lender said.

IDC, an industry research firm, said last month that worldwide spending on information technology would rise 6.3 percent this year, more than previously forecast, because of better-than-expected growth in Japan and Western Europe. Global technology spending climbed 6.9 percent last year to $1.08 trillion.

Gains in exports, which account for about two-fifths of the $85 billion Philippine economy, last year slowed from 2004's 10 percent increase.

Shipments to the United States, the biggest buyer of local goods, rose 19.9 percent to $623.3 million, faster than the previous month's 0.4 percent gain. Sales to China, the fourth-biggest market, rose 26.6 percent to $319.7 million.

Exports to Japan, the second-largest market, fell for the sixth month in seven, declining 11.4 percent to $544.5 million.

Competition from China and India, particularly in electronics, is hurting Philippine exports to Japan, Khoo, of Forecast Singapore, said.

Christy Tan, a Singapore-based economist at Bank of America, said: "The growth in February is not spectacular enough for us to conclude that this is the beginning of a recovery" for Philippine exports.

Bad-loan ratio decreases

Philippine commercial banks' ratio of bad loans to total credit fell in February to the lowest level in almost eight years as lenders sold some of these assets, the central bank said in a statement.

The ratio fell to 8.27 percent from 8.43 percent in January as bad loans - those at least 90 days overdue - fell 1.5 percent, the bank said. Bad loans declined to 158.7 billion pesos, or $3.1 billion, from 161.1 billion pesos, it said. Total loans grew 0.4 percent to 1.92 trillion pesos.

Declining bad loans may encourage banks to lend more, helping the government spur economic growth to as much as 6.2 percent, from 5.1 percent in 2005. Banks are required to set aside funds as reserves for possible losses from bad loans.

The February bad-loan ratio is the lowest since April 1998's 8.79 percent, according to central bank data.

The central bank is asking Congress to extend for two more years a law granting tax and other perks to lenders selling nonperforming assets such as bad loans and assets seized from defaulting borrowers. The law expired in April last year.

A two-year expansion of the incentives is expected to reduce bad loans by another 100 billion pesos, the central bank governor, Amando Tetangco, said in January. That would cut the bad-loan ratio to less than 7 percent, he said.

Since the law was passed in January 2003, banks have sold 97 billion pesos of bad loans, according to the central bank.

The bad-loan ratio may fall in coming months as more banks sell assets. Bank of Philippines Islands, the nation's second-biggest lender by assets, said last week that it had sold 6.3 billion pesos of bad loans to Avenue Asia.

MANILA Philippine exports in February recovered from the previous month's slump as overseas sales of computer parts and other electronic goods rose, the government said Tuesday.

Exports gained 9.8 percent from a year earlier to $3.3 billion, the National Statistics Office said. Sales of computer parts and other electronics, which account for 67 percent of exports, rose 10.3 percent in February after declining 2.2 percent in January.

Overall exports in January dropped 0.7 percent.

"Going forward, global electronics demand will support overseas shipments," said Leslie Khoo, an economist at Forecast Singapore, who expects Philippine exports to rise 9 percent this year after slowing to 3.9 percent in 2005.

The government expects exports to gain 8 percent this year, helping create jobs and accelerating economic growth to as much as 6.2 percent. The Philippines has the highest unemployment rate among 14 Asia-Pacific economies and a third of its population lives on less than 60 cents a day.

The Asian Development Bank last week predicted that rising global demand for electronics, which began in 2005, would "continue through most of 2006." Demand for semiconductors and other electronic goods "is expected to be robust," the Manila-based lender said.

IDC, an industry research firm, said last month that worldwide spending on information technology would rise 6.3 percent this year, more than previously forecast, because of better-than-expected growth in Japan and Western Europe. Global technology spending climbed 6.9 percent last year to $1.08 trillion.

Gains in exports, which account for about two-fifths of the $85 billion Philippine economy, last year slowed from 2004's 10 percent increase.

Shipments to the United States, the biggest buyer of local goods, rose 19.9 percent to $623.3 million, faster than the previous month's 0.4 percent gain. Sales to China, the fourth-biggest market, rose 26.6 percent to $319.7 million.

Exports to Japan, the second-largest market, fell for the sixth month in seven, declining 11.4 percent to $544.5 million.

Competition from China and India, particularly in electronics, is hurting Philippine exports to Japan, Khoo, of Forecast Singapore, said.

Christy Tan, a Singapore-based economist at Bank of America, said: "The growth in February is not spectacular enough for us to conclude that this is the beginning of a recovery" for Philippine exports.

Bad-loan ratio decreases

Philippine commercial banks' ratio of bad loans to total credit fell in February to the lowest level in almost eight years as lenders sold some of these assets, the central bank said in a statement.

The ratio fell to 8.27 percent from 8.43 percent in January as bad loans - those at least 90 days overdue - fell 1.5 percent, the bank said. Bad loans declined to 158.7 billion pesos, or $3.1 billion, from 161.1 billion pesos, it said. Total loans grew 0.4 percent to 1.92 trillion pesos.

Declining bad loans may encourage banks to lend more, helping the government spur economic growth to as much as 6.2 percent, from 5.1 percent in 2005. Banks are required to set aside funds as reserves for possible losses from bad loans.

The February bad-loan ratio is the lowest since April 1998's 8.79 percent, according to central bank data.

The central bank is asking Congress to extend for two more years a law granting tax and other perks to lenders selling nonperforming assets such as bad loans and assets seized from defaulting borrowers. The law expired in April last year.

A two-year expansion of the incentives is expected to reduce bad loans by another 100 billion pesos, the central bank governor, Amando Tetangco, said in January. That would cut the bad-loan ratio to less than 7 percent, he said.

Since the law was passed in January 2003, banks have sold 97 billion

http://www.iht.com/articles/2006/04/11/bloomberg/sxpeso.php

MirageBistro

April 12th, 2006, 06:59 AM

Ahh GDP getting higher
Hallelujah :happy: :2cents:

JAMAICUS

April 12th, 2006, 07:01 AM

^^ I'm getting this impression, from the posts you are posting, that you are just posting for the post count. A lot of threads get easily closed with that you know.

JAMAICUS

April 12th, 2006, 07:03 AM

Shares close higher on last-minute bargain-hunting
Posted: 12:45 PM | Apr. 12, 2006

SHARE prices closed slightly higher for the second straight session, on last-minute bargain-hunting before the Easter break, with mining stocks taking center stage because of rising metal prices, dealers said.

The composite index closed at the day's high, up 6.59 points or 0.3 percent at 2,223.97. It touched a low of 2,215.01.

The broader all-shares index ended down a marginal 0.07 point at 1,101.11.

Gainers outnumbered losers 61 to 33, while 49 stocks ended unchanged.

Volume was 5.38 billion shares worth 1.2 billion pesos.

Ayala Land Inc. led the gainers, ending up 0.25 peso or 2.27 percent at 11.25, on volume of 7.2 million shares.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=12&file=14

Tallers

April 12th, 2006, 07:28 AM

sa akin lang, papunta na tayo sa kinalalagyan ng Thailand ngayon. Diba life is a wheel, minsan nasa baba tayo at sila nasa itaas (Thailand) pero ngayon nag iba nanaman ang momentum. Bumababa ang currency nila pero patatag naman sa atin. Palala ang political situation nila pero sa atin unti unti nang nagbabago and we're already used of political noises kaya di na tayo maapekyuhan nyan dahil matatag na tayo. Pagulungin lang natin ang mga araw at makikita natin sa huli ang ating tagumpay.

diz

April 12th, 2006, 08:11 AM

http://economywatch.com/world_economy/philippines/philippines-trade.gif

JAMAICUS

April 12th, 2006, 08:30 AM

^^ The import-export ratio seems to be good. Can our exports surpass imports when new incentives will be implemented?

chixbebe

April 12th, 2006, 09:23 AM

The country’s export earnings in February recovered from the previous month’s slump as overseas sales of computer parts and other electronic goods picked up, the National Statistics Office (NSO) reported yesterday.

Exports gained 9.8 percent to $3.3 billion in February from $3 billion in the same period last year.

In the first two months of the year, exports rose 4.2 percent to $6.561 billion from $6.294 billion a year earlier.

Sales of computer parts and other electronics, which account for 67 percent of exports, rose 10.3 percent in February after declining 2.2 percent in January.

"Going forward, global electronics demand will support overseas shipments,’’ said Leslie Khoo, an economist at Forecast Singapore Pte, who expects Philippine exports to rise nine percent this year after slowing to 3.9 percent in 2005.

Garments were the second top revenue earner in February with a combined share for apparel and clothing accessories of 5.7 percent worth $188.71 million, while imports of ignition and other wiring sets ranked third with sales of $60.69 million, down 5.3 percent year-on-year.

The government expects exports to gain eight percent this year, helping create jobs and accelerating economic growth to as much as 6.2 percent.

The Asian Development Bank (ADB) earlier predicted that rising global demand for electronics, which began in 2005, would "continue through most of 2006." Demand for semiconductors and other electronic goods "is expected to be robust," the Manila- based lender said.

Worldwide spending on information technology will rise 6.3 percent this year, more than previously forecast, because of better-than-expected growth in Japan and Western Europe, researcher IDC said. Global technology spending climbed 6.9 percent last year to $1.08 trillion.

Gains in exports, which account for about two-fifths of the $85 billion Philippine economy, last year slowed from 2004’s 10 percent increase.

Shipments to the US, the biggest buyer of local goods, rose 19.9 percent to $623.3 million, faster than the previous month’s 0.4 percent gain. Sales to China, the fourth-biggest market, rose 26.6 percent to $319.7 million.

Exports to Japan, the second-largest market, fell for the sixth month in seven, declining 11.4 percent to $544.5 million.

Competition from China and India, particularly in electronics, is hurting Philippine exports to Japan, Forecast’s Khoo said.

"The growth in February is not spectacular enough for us to conclude that this is the beginning of a recovery" for Philippine exports, said Christy Tan, a Singapore-based economist at Bank of America, who had forecast a 17 percent gain.

Philippine exporters need to develop new products that would be more competitive overseas and seek new markets to increase sales, Tan said. The government should invest in improving roads and ports to help reduce transportation time and costs, she said.

-By Rica D. Delfinado
The Philippine Star 04/12/2006
http://www.philstar.com/philstar/NEWS200604120701.htm

JAMAICUS

April 12th, 2006, 09:31 AM

Overseas workers' remittances rose 11.6% in February
Posted: 3:06 PM | Apr. 12, 2006

REMITTANCES from Filipinos working abroad grew 11.6 percent from a year earlier to 866 million dollars in February, the central bank said.

Inflows for the first two months of the year totaled 1.8 billion dollars, up 12.5 percent from 1.6 billion in the same period last year.

"The higher level of remittances during the review period was partly attributed to commercial banks' expansion of banking services," the central bank said.

There are about eight million Filipinos working overseas.

The central bank expects remittances to rise by 10 percent this year from a record 10.7 billion dollars in 2005.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=12&file=17

JAMAICUS

April 12th, 2006, 09:34 AM

Cash transfers by overseas workers seen doubling by 2010
Posted: 3:16 PM | Apr. 12, 2006

ANNUAL remittances by Filipinos abroad are expected to double to 21.4 billion dollars by 2010 as the populations of host nations age, requiring more guest workers, a labor leader said Wednesday.

"We foresee migrant (sic) worker remittances increasing by at least 100 percent over the next five years, barring a global economic shock, such as one that might be set off by a possible avian flu pandemic," said Ernesto Herrera, secretary-general of the Trade Union Congress of the Philippines.

As head of the country's largest labor group, Herrera said the graying of the post-World War II generation in the United States, soaring energy prices, and globalization were aiding Filipino workers seeking a better standard of living abroad.

"The ageing of the 77.5 million baby boomers in the US, which has spurred the demand for foreign health care workers, including nursing home staff," would be a key growth driver for remittances, he said in a statement.

Filipinos remitted 10.7 billion dollars through formal banking channels last year, up from 8.55 billion dollars in 2004. The central bank expects the figure to rise to 11.8 billion dollars this year.

Already, remittances has reached 866 million dollars in February, an 11.6 percent rise over cash transferred in February last year.

Oil-rich Middle East countries should continue hiring large numbers of foreign workers in construction, travel, and oil and gas exploration and production, while globalization has increased the need for multinationals to hire English-proficient Filipinos, Herrera added.

Last week, the World Health Organization warned at least 15,000 nurses and other medical workers were leaving the Philippines for better pay in the US and elsewhere every year, threatening the country's health infrastructure.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=12&file=18

buboy

April 12th, 2006, 11:27 AM

Fantastic news, kudos to the arroyo gov't. well done. AAA+++ :D

Cash transfers by overseas workers seen doubling by 2010

Overseas workers' remittances rose 11.6% in February

sponge_bob_oy

April 12th, 2006, 05:42 PM

Fantastic news, kudos to the arroyo gov't. well done. AAA+++ :D

Maganda ngang balita na malaki ang pumapasok na pero pero don't lose sight of its impact on the Filipino family. I've met quite a number of people whose marriages broke up because of the time they have spent away from their spouses. Everything comes with a price, my friend.

Don't get me wrong. Hindi ko sila sinisisi dahil kailangan nilang mabuhay and nor am I making a moral judgment because it's not my place to do so. I place all the blame squarely on our government for consistently failing to foster an economic and political environment that's conducive to local and foreign investment.

JAMAICUS

April 13th, 2006, 07:40 AM

Gov't to retire $411M in Brady bonds

Doris C. Dumlao
Inquirer

THE government has firmed up plans to retire by June up to $411 million, representing 53 percent of its remaining Brady bonds, a high-ranking government source said.

Prepayment of these Bradys through call options will allow the government to ride on the peso's sharp appreciation to replicate the foreign debt management strategy pursued by Latin American countries that have bounced back from financial difficulties, like Brazil, Mexico and Colombia.

The central bank recently approved retirement of part of $774 million in outstanding Brady bonds -- a bitter reminder of the country's debt crisis in the 1980s.

The source said an offer had been made for bondholders to sell back the debt paper to the government.

The call option gives the government the right, but not the obligation, to buy back the bonds within a specific period.

The next window to call on the remaining Bradys will be in 2008, the source said.

"This prepayment will reduce foreign debts and send a positive signal to investors," the source said.

The source also said the government had decided to refinance the Brady bonds with proceeds of domestic borrowings, which cost less.

The Brady bonds have become more expensive than new global bond floats as interest rate spreads tightened over the years following improvements in the government's financial position.

If all investors holding the $411 million Bradys for which the Philippines has issued a call will agree to liquidate their holdings, about $300 million worth of collateral consisting of zero-coupon US treasury notes will be freed up, the source said.

The release of the underlying collateral, which will revert to the central bank's gross international reserves, will minimize the foreign exchange outflows from the buyback transaction.

To prepay the Bradys, the government will buy dollars from the central bank, using proceeds of domestic borrowings.

The government had wanted to retire the $774 million in remaining Bradys in full but the central bank approved only a buyback of half of the bonds to prevent a big dent on its international reserves.

The government issued a total of $4.25 billion worth of Brady bonds between 1990 and 1992 in a debt-restructuring program. Some of these were retired in previous bond exchange programs. The remaining Brady bonds will mature as far in the future as 2018 but some will mature in three years.

The bonds were named after Nicholas Brady, the US treasury secretary under Ronald Reagan who proposed issuing them to help heavily indebted countries like the Philippines restructure their commercial bank debt starting in the 1980s.

Some Latin American countries have bought back Brady bonds following strong improvements in finances. In recent years, Mexico has retired $6.6 billion worth, Brazil $6.8 billion, and Colombia $600 million. With INQ7.net

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=13&file=3

JAMAICUS

April 14th, 2006, 08:56 AM

Philippines, China seen leading retail sales growth
Posted: 2:06 AM | Apr. 13, 2006

RETAIL sales growth across most Asia-Pacific markets is expected to weaken in the first half of 2006, according to the latest MasterIndex of Retail forecast released by MasterCard International.

Ten of the 12 Asia-Pacific markets in the report are predicted to see growth of retail sales slow down in the first half of 2006, with only Hong Kong and Japan expected to show higher year-on-year growth of 4.2 percent and 3.0 percent, respectively, the report said.

China and the Philippines will take the lead with double-digit growth, both at 12.0 percent, in the first six months, followed by Malaysia (8.8 percent) and Singapore (7.5 percent), the report said.

The less bullish markets and their respective sales growth projections include Thailand (4.0 percent), Indonesia (3.9 percent), New Zealand (3.6 percent), Taiwan (2.9 percent), Australia (2.5 percent) and Korea (2.3 percent).

In the first half of last year, the Philippines registered a retail sales growth of 14.5 percent. The rate in China was 13.2 percent.

"The projected slowdown in retail sales growth in Asia is not surprising given the steadily rising interest rates, higher world price of oil and the continuing uncertainty due to the bird flu and persistent terrorism threats," said Yuwa Hedrick-Wong, economic adviser to MasterCard in the Asia-Pacific region.

"The interest rate cycle will likely peak by mid-2006 and we should see a stronger showing in retail sales by the end of this year," he added.

Launched in June 2003, the MasterIndex of Retail is conducted twice a year, in June and December. It gives six-month forecasts of retail sales growth in Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Thailand.

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=13&file=2

Konsehal

April 15th, 2006, 04:07 PM

JAMAICUS

April 17th, 2006, 05:19 AM

2006 IS TURNING POINT FOR RP ECONOMY`
Dutch banking giant raises RP growth forecast

Doris C. Dumlao
Inquirer

THE YEAR 2006 is a turning point for the Philippines, which has freed itself from a fiscal crisis and is now in a good position to lock in gains from resilient economic fundamentals, Dutch banking giant ABN-Amro said.

In an upbeat country assessment dated April 7, ABN-Amro upgraded its gross domestic product growth forecast for the Philippines for this year to 5.4 percent from 4.8 percent, citing "pockets of strengths" arising from a likely recovery in farm output and strong inflows from overseas Filipino workers that boost private consumption.

But the new forecast for this year is near the lower end of the 5.5-6.2 percent GDP growth targeted by the government.

"We believe 2006 marks the turning point for the Philippines; the nation is no longer struggling with a ballooning debt problem so the government can shift the focus back to longer term issues such as infrastructure and social development," the bank's report said.

It noted that investor confidence in the country remained high and the attempted coup in February was brushed aside with no more than a knee-jerk selldown in the stock and foreign exchange markets.

"We believe this is what investors should continue to focus upon-an economy that has shown resilience and (corporations) that remain innovative in increasing their top lines in a tough macro environment," ABN-Amro said.

Aside from the favorable impact of sustained OFW remittances, expectations of a weak La Niña weather pattern should boost agricultural output and thus perk up household income as the farm sector employs 40 percent of the country's labor force, the bank stressed.

It projected that ample rainfall would benefit crops such as palay, sugar and coconut, which account for 26.4 percent of the country's farm output.

Services, which contribute 48 percent to domestic output, are also seen to remain robust, riding on the continued strong demand for business process outsourcing.

An improved take-up of residential property was also noted during the past year, aided by rising household incomes.

"Recent capital appreciation has also seen property purchases emerge as a good alternative to savings deposit, as the rate of return has finally surpassed the pace of inflation," it said.

ABN-Amro said the growth in the BPO sector had also led to sustained strong demand for office space.

"We expect a low interest rate environment this year and hopefully, the lower cost and greater availability of funds will encourage further take-up of consumer credit and mortgage loans, extending the current upswing in private consumption," it said.

"The competition in the consumer segment has the potential to begin driving down lending rates especially in the mid-income housing segment where developers are adopting a volume growth strategy to sustain earnings growth," it added.

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=17&file=1

JustHorace

April 17th, 2006, 05:36 AM

We're always with the fours, fives and the sixes! When will we ever get nines and tens!

JAMAICUS

April 17th, 2006, 05:40 AM

^^ Sevens would be enough for our country yet our debt keeps it there and growing population keeps it down in terms of per capita. Yet, I think a 5's growth is a healthy growth.

JAMAICUS

April 17th, 2006, 07:28 AM

Bear Stearns forecasts budget surplus in April

By LEE C. CHIPONGIAN

American investment firm Bear, Stearns & Co. Inc. said the Philippine government could be looking at its first budget surplus for the year when the April numbers are released this week.

In its April 7 report, it says the Philippines "is expecting a surplus in its budget for April as individuals and companies pay income taxes and value-added taxes. As a result the government will probably beat its P72-billion budget deficit target for the first quarter."

The inter-agency Development Budget Coordination Committee recently approved the quarterly deficit goals of P72.9 billion for the first quarter and P8.2 billion for the second quarter. By the end of the third quarter, the DBCC expects a deficit of P122 billion while the full-year target is P124.9 billion, which is 2.1 percent of gross domestic product.

Bear Stearns said the "continued flow of good budget news" has pushed yields on government bonds downward. At the moment Finance Secretary Margarito B. Teves is leading his economic team in the US and Europe for a road show. "Presumably to preview plans of retiring its stock of Brady bonds," it said.Last week the Monetary Board of the Bangko Sentral ng Pilipinas approved the partial buyback of the outstanding 4 million Brady bonds, or about 1 million.

In the meantime, the DBCC has approved a new revenue program of P974.2 billion this year from previous target of P968 billion, with the inclusion of non-cash collection of P5.5 billion from the Bureau of Customs.

The DBCC also increased the disbursement level from P1.093 trillion to P1.099 trillion or by P5.5 billion to maintain the P124-billion budget deficit target for the whole year. In 2005 disbursements totaled P942.2 billion.

The budget deficit quarterly program takes into consideration the frontloading of releases for the "pump-priming" program of the government. These are basically in the form of operating expenses and capital outlays.

The phasing of the deficit target is as follows: for the quarterly deficit path, 58 percent to the total deficit target or P72.9 billion was in the first quarter; 6.6 percent in the second quarter or P8.2 billion and P34.8 billion or about 27.9 percent in the third quarter. By the fourth quarter this would be 7.09 percent of the total deficit target, or P8.8 billion.

Last year the government incurred a budget deficit of P146.5 billion in 2005, lower by 21.69 percent or P40.5 billion compared to P187 billion in 2004.

http://www.mb.com.ph/BSNS2006041761511.html

evangelistik

April 17th, 2006, 07:38 AM

The RP needs to fix some major issues first before it can see a higher surge in GDP % growth.

For example... isn't the corporate tax for the Philippines something absurd, like 35%?! It's also very unfriendly when it comes to the ease with accepting Foreign Direct Investments. And then there's the infrastructure problem...

I believe that this country can take off, though, I really do. The Govt. just needs to keep up the pace with its economic deregulations.

JAMAICUS

April 17th, 2006, 07:43 AM

MAIN INDEX AT FRESH SIX-YEAR HIGH
Shares close up ahead of Q1 results
Posted: 1:07 PM | Apr. 17, 2006

Cecille Yap
XFN-Asia

(UPDATE) SHARE prices closed firmer for the third straight session, bringing the main index to over fresh six-year highs on buying in stocks of companies likely to report strong first-quarter results, dealers said.

Mining shares also extended their rally after the four-day Easter weekend as prices of gold and other metals climbed last week amid continuing political tension between the US and Iran, they added.

Financial markets were closed on Thursday and Friday.

The composite index closed up 5.39 points or 0.24 percent at 2,229.36 after trading between 2,218.68 and 2,231.38. It was the main index's best finish since Aug 26, 1999 when it ended at 2,236.71.

The broader all-shares index was down 1.95 points at 1,099.16.

Gainers outnumbered losers 58 to 30, while 55 stocks were unchanged.

Volume reached 7.02 billion shares worth 1.16 billion pesos.

"The market has been moving up quite steadily, supported by expectations of better corporate results," Asiasec Equities Inc analyst Oliver Plana said.

Corporate results for the three months ended March are expected to be released from later this month.

"While corrections happen along the way, its overall direction is on the uptrend," Plana said.

Dealers said it is possible for the market to continue rising before profit-taking would set in.

Based on technical factors, Banco de Oro Universal Bank market strategist Jonathan Ravelas said last week's close above 2,220 points implies a further test of 2,250 and any correction may be limited to 2,170.

Gains in Bank of the Philippine Islands helped lift the composite index. It closed up 0.50 peso or 0.83 percent at 61.00 on 523,800 shares.

Most active Philippine Long Distance Telephone Co was steady at 1,980 on 75,440 shares while rival Globe Telecom Inc retreated 10 to 890.

The mining sub-index rose 12.74 points to 3,057.76, after gold futures closed past 600 dollars an ounce on the New York Mercantile Exchange last week, logging a weekly gain of more than 7 dollars.

Manila Mining's A-shares, exclusive to Filipinos, rose 0.003 pesos or 11.54 percent to 0.029 on hefty volume of 1.73 billion shares and its B-shares, which foreigners can buy, was up 0.002 or 6.25 percent at 0.034 on 731.5 million shares.

Lepanto Consolidated Mining A climbed 0.06 or 17.14 percent to 0.41 on 221.3 million shares and Lepanto B gained 0.06 or 16.22 percent to 0.43 with 46.9 million shares traded.

Oil refiner Petron Corp rose 0.10 to 4.45 after crude oil prices hit 70 dollars per barrel during Asian trading hours on concerns over tight US gasoline stocks and continued fears the US could launch military strikes against Iran's nuclear facilities, dealers said.

San Miguel A closed flat at 60 pesos while San Miguel B advanced 0.50 to 79.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=17&file=15

JAMAICUS

April 17th, 2006, 08:07 AM

PLEASE TAKE TIME TO READ THIS, PLEASE!!!!!

Economic impact of Filipino migration
Posted: 7:54 PM | Apr. 16, 2006

Aurelio R. Montinola III
Inquirer

Published on Page B2-2 of the April 17, 2006 issue of the Philippine Daily Inquirer

I WILL HAVE TO START with an Albert Einstein test question. Supposedly, he gave the same test to his graduate students at Princeton, and one confused student said "Professor Einstein, these are the same questions you gave us last year." To which Einstein smiled, and said, "Yes, but the answers are different."

The OFW issue is similar to Einstein's test. Three decades ago, when Filipino migration began to accelerate, we coined the phrase "brain drain" to emphasize its phenomenon being inimical to national development.

Today, the answer is different, or at least mixed.

Why? There are three major reasons. First, there is globalization, which has brought the world's economies into closer integration. Second, there is the information revolution through the fax, the cellphone, the Internet, and even VOIP. Third, there are changing demographics as the developed countries find themselves with aging populations with job needs, which in turn developing countries (including the Philippines with a 21.6 years median age) fill with mobile jobseekers.

These tidal changes have transformed the 8 million overseas Filipinos into a powerful national force. They have opened the world literally for our people. They have increased many times over the earnings and remittances of overseas Filipinos. Perhaps, as never before, Filipino migration is now in a position to make a lasting contribution to the modernization of the country.

Migration facts and figures
Whether because of adverse local conditions or attractive opportunities abroad, some 2,700 Filipinos leave daily for abroad--or almost one million annually. Compare this with the situation in 1975 when the Marcos government deployed 35,000 workers as the start of a new national policy.

Next to Mexico, the Philippines has become the second largest migrant sending country in the world, with an estimated 8 million abroad. The key difference is that Mexicans generally go to the neighboring U.S., while the Filipinos go everywhere.

In turn, after Mexico and India, we are the third largest remittance receiving country.

Of the 8 million abroad, some 3 million are immigrants (permanent), another 3.5 million are contract workers (temporary), and some 1.2 million are classified as irregular.

The $10 billion POEA reported dollar inflows last year come generally from the Americas , with 60 percent of the total. Whether these come truly from the United States or from worldwide remittance companies using US bank accounts is harder to track. Also, some $8 billion come from land-based OFWs and the remaining $2 billion from seafarers.

Top 5 destinations last year were Saudi Arabia, Hongkong, the United Arab Emirates, Taiwan, and Japan; the fastest growing are Qatar, Singapore, and the UAE 65 percent of the OFWs are women--domestic workers, entertainers, nurses, and teachers.

We also supply 29 percent of all seamen worldwide--the largest percentage of any country in the world.

Government has always been involved, through the Philippine Overseas Employment Administration (POEA), and this is one area where they have generally been considered to have done well, or at least not badly.

In short, as the columnist Jessica Zafra once stated tongue in cheek, "The Filipinos will rule the world--with a maid in every ruler's bedroom and bathroom." Thankfully, today, we have upgraded our OFWs to our missing, hopefully to return one day, middle class.

The migration debate
Opinion is mixed on the economic benefits of migration.

One side sees only a negative impact--excessive consumption, perpetuation of a culture of dependence on overseas remitters, and, similar to countries cursed with too much oil, the government's reluctance and delay in passing much needed structural reforms to put our economic house in order.

These reservations are not to be ignored. However, lately, the evidence for a positive economic impact has been compelling.

The Asian Development Bank , in its first in-depth report on OFW remittances, notes, "Remittances provide the most direct, immediate, and far reaching benefit to overseas workers, their families , and their country. These international transfers... are a more constant source of income than official development assistance, foreign direct investment, and other private inflows."

I submit the following additional evidence:

1. At the macro level, country effects have been positive.

As OFW remittances have steadily grown in the past three years, the peso/dollar rate has increasingly become more stable. In fact, it can be posited that during the dark days of the Asian economic crisis, it was OFW inflows that kept the Philippines from falling further.

OFW remittances pay for the annual amortization of Philippine foreign debt principal and interest. Previous to 2003, this was not the case; however both in 2004 and 2005, OFW remittances cover annual foreign debt amortization, probably the only country in the world to do so. Paradoxically, Filipinos outside the Philippines are paying for the debt of Filipinos in the Philippines.

We hear of other countries using "other people's money" in the form of direct foreign investment or tourism to grow their economies. Our OFWs use "other people's infrastructure" to live and go about their business, and in this way, ease the strain on our own limited infrastructure resources. Put another way, we don't have room for 8 million OFW pay jobs in our country, but our citizens are resourceful and intrepid to find these jobs in someone else's country.

We know that the Social Security System (SSS) and the GSIS pay for the benefits of employed private sector and government sector employees, but in amounts less than desired. One can posit that the OFWs serve as the defacto SSS of their beneficiary families, many of whom may not be employed, as they steadily send $ 300 - $ 400 a month to their families. These were about $1.4B equivalent in SSS and GSIS benefits in 2004: if you assume that only 20 percent of total OFW remittances are requested from relatives overseas for unexpected calamities, this already doubles the local SSS and GSIS benefit amount.

While recognizing that population control is a major developing standblock, we have national debates on what is the appropriate form. I will submit that OFWs going abroad is one of the more natural forms of birth control, and as the women majority of OFWs leave and become more educated about globalization, this eases our population control problems. In fact, I am told that our population growth rate has reduced from 2.36 percent for the period 1995 - 2000 to 2.2 percent estimated for the period 2001 - 2005; I understand, however, that you have to go below 2 to make progress.

2. Sectoral influence has likewise been beneficial.

Targetting remittances
For the banks, targeting OFW remittances started simply as national development assistance and an alternative source of much needed dollars. About 10 years ago, most major banks strategically bet on adding overseas outlets and tie-ups, improving their technology, and then loudly advertising their branding and product reach. The results are impressive, as total OFW remittances through the banking channels have increased from around $2 billion 10 years ago to almost $ 11 billion today. Also, as competition has increased and as volumes of scale have developed, remittance fees and spreads have come down significantly.

For the telecom companies, the cellphone has been the great global connector. TV ads constantly show overseas families talking to each other, and one day they may even do VOIP conversations at economical prices. Again, aside from the branding focus on this large segment, competition and volumes of scale have enabled the rival telecom companies to advertising continually dropping outward long distance calls, and even text or SMS messages. A guesstimate is that 10 - 20 percent of telecom revenues come from calls from Pinoys to their OFW relative.

For property companies, the effects are even more dramatic. Development companies are now building housing communities with OFWs clearly part of the target market, and some companies regularly send sales people to OFW-rich foreign locations. Today, 25 percent of all cash payments and 25 percent of all housing loans are OFW in nature, and this has caused the mini property development boom you are witnessing today.

Retail shopping
Finally, there is retail shopping, which was the original beneficiary of OFW consumption shopping and eating, particularly during the Christmas season and in all the growing malls around the country.

3. Geographical growth has been noticeable.

Cavite, Laguna, and Batangas are primary examples of OFW driven housing developments. However, there are many other examples around the country.

In fact , a study by Dean Young and Claudia Martinez on remittances and poverty in migrants' home areas observed, "Remittances have broader effects on economic activity in migrants home areas, leading to changes in poverty and inequality even in households without migrant members."

Sadly, it means that families without OFWs are poorer than families with OFWs.

While excessive consumption is criticized, in fact the act of consumption creates a multiplier effect on the demand for goods and services, and even indirect investment. When used for health or education reasons, human development is in fact aided.

Lately, there has been rising evidence that an increasing portion of remittances is being invested and saved. The ADB study indicates that 9 out of 10 overseas Filipinos surveyed in the US save in banks, and 70 percent of these maintain bank accounts in the Philippines. In fact, as all the Philippine banks have improved their overseas reach and their local distribution capability, they have strongly contributed to helping increase the total amount of remittances being sent through formal banking channels to the Philippines.

Given all these, it can be hypothesized that, with some behavioral changes, the OFW funds can be used as an important tool of national development.

Looking forward
Looking forward, much still has to be done to better understand and study the phenomenon of Philippine labor migration and its impact on economy and society. Professor David has eloquently spoken on the social side, but others will continue the search for more insight.

Overseas Filipinos constitute our country's biggest comparative advantage in the borderless world of our time. We are way ahead of other countries in proactively training and deploying our workers overseas. Before the new global economy emerged, we were already there. Now we are in position to negotiate better arrangements for our workers in receiving countries.

Wired magazine hit the nail on the head when it observed: "The Philippines is the forerunner of tomorrow's distributed economy in supplying nurses, teachers, techies, and sailors to the global village...

With advances in transportation and telecommunications barreling ahead, it's only a matter of time before the Philippine miracle becomes a standard for the new mobile global order, zapping their wages homeward through space, reentering for a new assignment."

What is strategically significant is that this resource and competitive edge will abide for many more years. The demand for migrant labor will increase, particularly in Europe, Japan and the US, because their work forces are diminishing with every passing year.

The challenge is not whether we can sustain the numbers of our people overseas, but how we can improve their development, maximize their earnings, exact better terms for their labor, and utilize more effectively their remittances for national development. The ADB study makes this observation that we do well to heed: "The sheer volume, stable growth overtime, and anti cyclical nature of remittances suggest that they hold tremendous potential as a source of external development finance. With resources for development assistance dwindling, migrants' remittances are emerging as a strategy for uplifting conditions in developing countries."

Harvard program
A Harvard program on International Migration has also been recently initiated, with special focus on the Philippines. Its focus will be to help academe understand the complex dynamics between socio economic development and global migration, to assist Philippine policy makers to anticipate and to respond to migration in many countries, and to identify cross border and cross population learnings.

I would also like to thank the Ayala Group, Doris Ho, Washington Sycip , and all other individuals who are doing current research on this same problem today.

Conclusion
The time for feeling guilty about our OFWs is over. We must shift gears and recognize the vital role they can play in national development and modernization.

The government and the private sector must therefore work together to pursue a strategic policy on labor migration that will eventually turn the current "Brain Drain" into, as Fernando Zobel has stated in another speech, a " Brain Gain." India today is the best example of its overseas non-resident Indians coming back to assist in specific technology locations and fields; if they can do it, why can't we dream the same?

While migrants' remittance reached record levels last year, we now have the more encouraging news that OFWs and their families are saving and investing more. If we can convince them to save and invest in the Philippines, as actually many of them are predisposed to do so at least partially, then even better.

We are constantly told that the Philippines by growing 5 percent GDP a year will at best stay flat. If we can utilize our OFW remittances and their corresponding savings or investment better, perhaps we can raise this to a more growth oriented 7 percent. As a banker, I recognize the vital role that financial institutions must play in linking remittances to development. Large banks as well as community based financial institutions should strive to provide products and services that encourage savings among OFWs and support their entrepreneurial ventures. We at BPI will be prepared to assist in these national development objectives.

chixbebe

April 17th, 2006, 11:00 AM

Dutch banking giant raises RP growth forecast
Posted: 2:02 AM | Apr. 17, 2006
Doris C. Dumlao
Inquirer
http://money.inq7.net/topstories/view_topstories.phpyyyy=2006&mon=04&dd=17&file=1

THE YEAR 2006 is a turning point for the Philippines, which has freed itself from a fiscal crisis and is now in a good position to lock in gains from resilient economic fundamentals, Dutch banking giant ABN-Amro said.

In an upbeat country assessment dated April 7, ABN-Amro upgraded its gross domestic product growth forecast for the Philippines for this year to 5.4 percent from 4.8 percent, citing "pockets of strengths" arising from a likely recovery in farm output and strong inflows from overseas Filipino workers that boost private consumption.

But the new forecast for this year is near the lower end of the 5.5-6.2 percent GDP growth targeted by the government.

"We believe 2006 marks the turning point for the Philippines; the nation is no longer struggling with a ballooning debt problem so the government can shift the focus back to longer term issues such as infrastructure and social development," the bank's report said.

It noted that investor confidence in the country remained high and the attempted coup in February was brushed aside with no more than a knee-jerk selldown in the stock and foreign exchange markets.

"We believe this is what investors should continue to focus upon-an economy that has shown resilience and (corporations) that remain innovative in increasing their top lines in a tough macro environment," ABN-Amro said.

Aside from the favorable impact of sustained OFW remittances, expectations of a weak La Niña weather pattern should boost agricultural output and thus perk up household income as the farm sector employs 40 percent of the country's labor force, the bank stressed.

It projected that ample rainfall would benefit crops such as palay, sugar and coconut, which account for 26.4 percent of the country's farm output.
Services, which contribute 48 percent to domestic output, are also seen to remain robust, riding on the continued strong demand for business process outsourcing.

An improved take-up of residential property was also noted during the past year, aided by rising household incomes.

"Recent capital appreciation has also seen property purchases emerge as a good alternative to savings deposit, as the rate of return has finally surpassed the pace of inflation," it said.

ABN-Amro said the growth in the BPO sector had also led to sustained strong demand for office space.

"We expect a low interest rate environment this year and hopefully, the lower cost and greater availability of funds will encourage further take-up of consumer credit and mortgage loans, extending the current upswing in private consumption," it said.

"The competition in the consumer segment has the potential to begin driving down lending rates especially in the mid-income housing segment where developers are adopting a volume growth strategy to sustain earnings growth," it added.

JAMAICUS

April 17th, 2006, 04:55 PM

BY JUDY T. GULANE, Reporter
Exporters to get gov’t aid
... given expectations of even stronger peso

The government remains committed to helping exporters hurting from a stronger peso, President Gloria Macapagal-Arroyo yesterday reiterated.

In a discussion aired live from Malacañang, Mrs. Arroyo said "we will take care of [our exporters], we will look for ways so they will remain competitive, especially in view of the UBS forecast of P50 to a dollar this year."

Swiss financial giant UBS has revised its peso-dollar exchange rate forecast for end-2006 to P50:$1 from P52:$1 on the expectation of a continued surge in dollar remittances from overseas workers.

The currency barely moved yesterday, closing at P51.34 to the US dollar from its previous close of P51.33 last Wednesday.

Mrs. Arroyo said the government is willing to forego or lower fees that different government agencies collect from exporters, and has in fact directed these agencies to review their fee structures. The matter will be taken up in a Cabinet meeting today.

Exporters will also benefit from the open access scheme, where they can buy cheaper electricity from other power producers other than Meralco.

The government cannot intervene in the peso-dollar exchange rate however, Mrs. Arroyo said, since this is decided by the market.

And while it has hurt exporters, a stronger peso has not been unwelcome, she added, since this has tempered inflation and lowered the government’s cost of financing dollar-denominated loans.

"The world market price of oil has increased, but we hardly feel this because of a stronger peso," she said. "A stronger peso has also freed government funds that can now be used on food subsidies for the poor."

Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo, who took part in the discussion, agreed, saying "when the exchange rate improves, everybody benefits, whether rich or poor, exporter or importer."

He said that electronic exporters, who account for 67% of the country’s total exports, have benefited from the peso’s appreciation against the dollar since they import their raw materials.

Other exporters, described by Philippine Exporters Confederation, Inc. President Sergio R. Ortiz Luis Jr. as "indigenous" who account for small volumes yet comprise 80% of the sector, benefit from a strong peso as well through lower production costs, he added.

"Whether ’indigenous’ or not, they would have been hit by high oil prices if the peso were weak," Mr. Guinigundo pointed out.

"While the exchange rate is important, it is not the only factor that determines competitiveness ... there’s the quality of the product, the ability to deliver on time, the development of alternative markets," he added.

The government can help through other ways, he said, by improving infrastructure, for one. The BSP, for itself, is keeping its rediscount-ing facility for exporters’ loans still open so they can continue to borrow in dollars from commercial banks.

He dismissed the thought of government extending subsidies to exporters, however.

"While its fiscal position has improved, the government has no capability of extending subsidies to exporters at this time. But exporters should avail of a good outcome of this improving position - the lowering of interest rates," Mr. Guinigundo said.

Exporters interviewed by BusinessWorld last week said that while the elimination or lowering of government fees and charges will help their sector, the government can help them more by assisting them in research and development and promotions, improving infrastructure, and lowering the cost of power.

They pointed out that other countries are helping their exporters remain competitive by infusing a lost of funds into these areas.

The BSP is hosting a forum with exporters today, Mr. Guinigundo said, to discuss their problems and the ways these can be addressed without tampering with the peso-dollar exchange rate.

http://www.bworldonline.com/BW041806/content.php?id=001

JAMAICUS

April 18th, 2006, 05:18 AM

Peso's gains seen to trim public sector deficit by P366B
Posted: 0:59 AM | Apr. 18, 2006

Inquirer

THE government has trimmed its projection on the public sector debt this year by P366 billion, saying the rise of the peso and the additional revenues from the expanded value-added tax will substantially improve its debt position.

The outstanding public sector debt (OPSD) -- comprising liabilities of the national government, state-owned corporations (except financial institutions), and local government units -- was originally expected to reach P5.246 trillion at the end of the year, equivalent to 88.7 percent of the gross domestic product.

The Department of Finance has revised the figure to P4.88 trillion, 81.4 percent of the expected GDP this year, on account of the strengthening of the peso versus the US dollar.

The Development Budget Coordination Committee (DBCC), the government body tasked with setting economic policies and targets, has changed its forecast on the exchange rate from 55-57 to the dollar to 51-53.

Investment bank UBS has said the peso can reach 50 to the dollar at yearend and 49 to the dollar at end-2007, taking into consideration the increasing inflow of remittances from overseas Filipino workers and the improving financial climate.

Estimates by the finance department show that a unit of appreciation of the peso against the dollar reduces the debt stock of the national government by P52 billion, as debts denominated in foreign currencies become cheaper.

Finance Undersecretary Gil Beltran said the revision of the OPSD assumption also took into account the expected revenues from the value-added tax, which was expanded in scope last November and increased in rate to 12 percent, from the previous 10 percent, effective last February. These changes are expected to generate P75 billion in additional revenue for the government this year.

The government aims to cut its budget deficit to zero in 2008. The deficit amounted to P146.8 billion last year. With INQ7.net

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=18&file=2

JAMAICUS

April 18th, 2006, 01:02 PM

BIR beats March collection target

The Bureau of Internal Revenue (BIR), which delivers more than two-thirds of government revenue, beat its collection goal by nearly 2.6 percent in March, the head of the agency said on Tuesday.

The BIR collected P43.7 billion ($852 million) last month, higher than its target of P42.6 billion, Commissioner Jose Mario Bunag said.

That brought the agency's total collection for the first quarter to P135 billion, 2.7 percent higher than its goal for the period of P131.4 billion.

"We've been monitoring taxpayers in each and every region, making sure they pay," Bunag told Reuters, adding the imposition of a broader sales tax last year and a higher sales tax rate in February had helped lift revenues in the first quarter.

The Philippine government, Asia's most active issuer of sovereign bonds after Japan, had a budget deficit target of P71.8 billion in the January-March period. It is set to announce its fiscal performance for the first quarter on Wednesday.

In November, the government widened the value-added tax (VAT) to include previously exempt sectors such as oil and power.

In February, it raised the VAT rate to 12 percent from 10 percent, completing a key reform measure that is expected to bring in extra revenue of P75 billion this year.

The budget deficit is closely watched by financial markets because of the government's relatively high debt levels and chronically weak revenues.

The state's collection agencies are battling corruption, evasion and lax implementation of tax laws as they try to shore up revenues and aim for a balanced budget by 2008.

The BIR has a target for collections in April -- the month of annual income tax payments -- of about P79 billion. Monday was the last day for filing tax returns.

"We will try our best to make it. It sets the tone for the balance of the year," Bunag said of the April tax goal.

In April 2005, the Philippines had a budget surplus of P3.3 billion, its first in four years. There were also surpluses in June and August of last year.

The government wants to narrow this year's budget deficit to P125 billion or 2.1 percent of gross domestic product from a shortfall of P146.5 billion or 2.7 percent of GDP last year.
Reuters

http://www.abs-cbnnews.com/storypage.aspx?StoryID=35957

JAMAICUS

April 18th, 2006, 04:49 PM

BY JUDY T. GULANE, Reporter and JENNEE GRACE U. RUBRICO, Senior Reporter

Gov’t eyes mitigating measures as oil soars

World oil prices hit new highs yesterday, prompting the government to announce a possible cut in the duty on crude and refined petroleum products as an immediate palliative.
Oil companies said they would have no choice but to increase fuel prices, but added they were looking at staggered hikes, possibly around 50 centavos per week, to make the adjustments more palatable.
Economists pointed to growth targets not being met, with gross domestic product (GDP) possibly rising lower than last year’s 5.1%. This year’s target is 5.5-6.2%.
The Finance department, meanwhile, put a positive spin on things, saying the government could benefit from rising world oil prices by way of more tax revenues.
Oil surged to a record high above $72 yesterday on mounting concerns over Iran’s nuclear stand-off with the West. (Story below)
In London, North Sea Brent crude oil jumped 74 cents to an all-time high of $72.20 a barrel, while US West Texas Intermediate crude oil hit a record $70.88.
Dubai crude, the benchmark used by the Philippines, hit a record $64.70. Diesel and gasoline prices in the Mean of Platts Singapore (MOPS) -- also used in domestic pricing -- also hit new highs.
Energy Secretary Raphael P.M. Lotilla told a press briefing after a Cabinet meeting in Malacañang yesterday that the government will also go full-blast on other measures to wean the country away from the use of fossil fuels. These measures, however, need a gestation period.
The reduction of the duty on petroleum products, on the other hand, will give an immediate impact on local pump prices. "We will see if there is room for reduction," Mr. Lotilla said.
A 3% duty is imposed on crude and refined petroleum imports. The rate used to be 5% but this was brought down to 3% middle of last year by virtue of Executive Order 440 to temper local pump and liquefied petroleum gas (LPG) prices after the enactment of a new value-added tax (VAT) law.
Petroleum products and LPG used to be exempt from VAT. Executive Order 440 reduced the duty on LPG, which is used in most Filipino homes, to 0%.
Reducing the import duty, however, will adversely affect the revenue collections of the Bureau of Customs. Acting Commissioner Napoleon L. Morales said projected revenues from petroleum products, assuming a 3% duty, comprise 60% of its P200 billion internal target.
"If we reduce or bring down the rate to zero, then we will have to ask the Finance Secretary to bring down our collection target also," he said.
The government wants to collect P968.5 billion this year to reduce the deficit to P125 billion from P146.5 billion last year. The Bureau of Internal Revenue has a collection target of P675.4 billion, and Customs, P196 billion, which Finance Secretary Margarito B. Teves has rounded off to internal revenue targets of P700 billion and P200 billion, respectively.

OTHER MITIGATING MEASURES
Other oil-price mitigating measures, which are already in place or about to be started, are:

increasing the production of coco-biodiesel;

planting of jatropha, a plant that has been found to be a good potential source of biodiesel;

accelerating vehicle engine conversion to be able to use LPG;

expanding the number of stations offering P1 discounts to jeepneys;

finalizing the system for importing ethanol; and

providing incentives for flexible fuel vehicles, which can run on a mix of ethanol and gasoline at concentrations higher than 10%.

Mr. Lotilla said additional coco-biodiesel production facilities, particularly those by Chemrez Inc., are set to open within the year.
"To complement this, the President instructed the Philippine National Oil Company to enter into joint ventures with the (armed forces, for the growing of jatropha within military camps)," he said.
Jatropha curcas, locally known as tuba-tuba or tubang-bakod, is found all over the country.
The Energy secretary also said the government will push more strongly the use of LPG in vehicles, particularly among taxi fleets.
The government is presently coordinating with the oil companies, he added, to increase the number of stations offering discounts to public utility vehicles.
The government is also asking the oil companies and LPG importers to continue selling LPG at discounted prices even if world LPG prices have eased.
"The President also instructed the BIR and Customs to finalize the regulations on the system of importing ethanol," Mr. Lotilla said.
The Cabinet, during the meeting yesterday, also agreed to review the provisions of a proposed bio-fuels law that pertain to flexible fuels vehicles.
Oil and gas explorations are also being accelerated, with 16 contracts awarded since December.
"I hope this [increasing world oil prices] is going to be only temporary and not result in too high increases, but I think it is important to recognize that oil prices around the world are going up and will continue to go up and that is a fact that all of us must recognize," Mr. Lotilla said.

FUEL PRICE INCREASES
Meanwhile, given the increase in Dubai crude and MOPS diesel and gasoline, oil executives polled by BusinessWorld said they will have to recover between P1 and P2.13 per liter for gasoline and diesel.
If world oil prices stay at current levels, oil firms might have to factor in an additional P1.50 per liter increase for both gasoline and diesel, they added.
The increases will be done in increments and on a weekly basis.
Dubai crude’s $64.70 per barrel yesterday led to an average $62.36 for this month from $57.82 a month ago, or up by $4.55.
MOPS-based diesel reached a record high of $86.48 per barrel. For April 1 to 17, diesel averaged $83.45 per barrel from $77.99 last month. MOPS unleaded gasoline increased $8.02 to average $77.66 per barrel from $69.64 last month.
"What we will be doing is we will be implementing it on a staggered basis. It will probably be 50 centavos per week. That’s how much the market can take," a spokesman of a major oil company who requested anonymity said.
An official of an independent oil firm, meanwhile, said how much the oil companies can recover will depend on the market.
"In the real world, we can expect a staggered increase or recovery. But as in the past, we will try to mitigate the impact of higher world oil prices," the official said.
Oil companies implemented a 50-centavo per liter price hike last weekend, but officials said this does not yet take into account the P1-2.13 that they have to recover.
Flying V President Ramon Villavicencio said that when the 50-centavo oil price hike was implemented, diesel based on MOPS pricing was only at $83 per barrel versus yesterday’s $86.
"We hope that the price will go back to $83 or $84 levels so that we won’t have to add to the P2 increase," he said.
Not everyone, however, is optimistic. An official of an independent oil company said that it is more likely that prices will continue to increase in the near future.
"Until the standoff between the US and Iran is solved, there will always be uncertainty and that will push up prices," she said.
Oil executives said that they will continue to subsidize diesel prices by giving a P1 per liter discount to public utility vehicles in selected gasoline stations. Among those who said that they will continue the discount scheme were Petron Corp., Pilipinas Shell Petroleum Corp., Total Philippines Corp. and Flying V.

INCREASED REVENUES?
Also yesterday, Finance Undersecretary Gil S. Beltran said "It (the oil price hikes) would lead to higher revenues, but at the same time, there could be higher inflation," without going into details.
Oil refiners could also benefit by increasing their value-added because of higher market prices, he added.
The government earlier revised its assumption on the price of oil, based on Dubai crude, to an average of $62 per barrel this year and $63 next year.
Mr. Beltran explained that the projections relied on the International Monetary Fund’s world economic outlook.
"We think they’re right," he said.
The Bureau of Internal Revenue is supposed to collect almost P12 billion in excise taxes from fuel and oil. From crude oil imports, Customs is tasked to collect more than P9 billion in import duties based on the government’s budget program.
Since November, the government began collecting the value-added tax (VAT) on petroleum products. This year, an additional P12.33 billion in VAT is expected from petroleum products and P16.093 billion from raw materials for petroleum products.

ECONOMIC OUTLOOK
In an interview, meanwhile, University of Asia and the Pacific economist Stephen Huang said the economy would grow only by 5% this year given current increases in the crude prices.
Ateneo de Manila University economist Dr. Fernando T. Aldaba, said GDP would only grow by 4.9%. "We will have to make new GDP adjustments as the crude prices continue to increase," he said. -- with a report from Felipe F. Salvosa II

http://www.bworldonline.com/BW041906/content.php?id=001

chixbebe

April 19th, 2006, 09:57 AM

http://www.malaya.com.ph/apr19/busi2.htm

The Bangko Sentral ng Pilipinas said yesterday the country’s exports may increase by 11 percent in 2007 as electronics exports rise by an estimated 10 percent.

Export growth for this year is seen at eight percent the same growth expected for electronics.

Exports of machinery and transport equipment are seen to grow at a steady 16 percent from this year supported primarily by a 42-percent growth in exports of mineral products from 40 percent this year.
Besides a rebound in global output, the BSP is also expecting sustained increase in intra-Asian regional trade.

Philippine exports rose by 4 percent last year, lower than the 9.5 percent in 2004, owing to weak demand for electronics, and machinery and transport equipment.

But while the United States, Japan and the EU remained the top export markets accounting for 18 percent, 17.5 percent and 16.4 percent of the country’s total exports, exports to Asian countries posted significant growths.
The share of China alone rose to 9.9 percent from only 1.6 percent in 1999 while Singapore, Malaysia and Thailand also accounted for an increasing share.

The government is expecting exports to reach $43.6 billion this year from $41.2 billion last year.

The country’s major exports are electronics, 66.2 percent; garments, 5.6 percent; food and agro products, 5 percent; machinery, 4.5 percent; and minerals and petroleum products; 3.4 percent.

JAMAICUS

April 19th, 2006, 01:17 PM

GAINS IN AYALA LAND OFFSET PROFIT-TAKING
Shares close little changed

Erik dela Cruz
XFN-Asia

(UPDATE) SHARE prices closed nearly flat following a listless session, with Ayala Land Inc gaining due to falling interest rates while other stocks deemed overbought were hit by profit-taking, dealers said.

The market seesawed after opening higher following Wall Street's rally overnight, as investors exercised caution with crude oil prices hovering at the 71-dollars-a-barrel mark in Asian trading this morning.

At the close, the 30-company composite index was down 1.99 points at 2, 223.73. It moved between 2,218.46 and 2,233.29.

Volume was 6.36 billion shares worth 1.52 billion pesos.

The all-shares index rose 3.32 points to 1,369.06.

There were 47 gainers and as many losers with 51 stocks closing flat.

"A good portion of today's activity was still concentrated on the mining sector where we saw profit-taking following recent sharp gains driven by the rise in metal prices," Accord Capital Equities analyst Lawrence de Leon said.

"Investors are expected to return to the market after these much-needed corrections, but that may not happen soon because of inflation worries," he added.

At 12:10 pm (0410 GMT), New York's main contract light, light sweet crude for May delivery, was down 36 cents at 70.99 dollars a barrel from its record settlement price of 71.35 dollars in US trading Tuesday.

Ayala Land, the most actively traded stock, was up 0.25 peso at 11.50 on volume of 13.36 million shares. Dealers said the Philippines' low interest rate environment may further boost sales in the property sector which is already benefiting from brisk remittances from Filipinos abroad.

The mining and oil sub-index fell 163.56 points to 4,925.09.

Among miners, Philex A and B shares were down 0.10 each at 3.80 and 3.85, respectively.

IT firm Philweb Corp rose 0.004 pesos or 16.67 percent to 0.028 after Philippine Long Distance Telephone Co's IT unit, ePLDT Inc, said it will soon sign an agreement to acquire a 20-percent stake in Philweb.

PLDT retreated 10 to 1,955.

San Miguel Corp's A shares were unchanged at 60 while its B shares advanced 1.00 to 80, after Moody's Investors Service said it has assigned "Ba1" local currency corporate family and indicative foreign currency senior unsecured ratings to Southeast Asia's largest food and beverage conglomerate.

The outlook on the ratings is stable, Moody's said in a statement.

Moody's also assigned a "(P)Ba3" foreign currency rating to a proposed preferred stock issuance of San Miguel's wholly-owned offshore unit San Miguel Capital Funding Ltd.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=19&file=12

JAMAICUS

April 19th, 2006, 05:24 PM

First-quarter deficit data expected to be promising

Analysts and bankers expect the government to have posted a better-than-expected fiscal performance in the first quarter, largely due to higher tax collections.

The government is set to announce its January to March fiscal results today. The announcement was supposed to be made yesterday but officials said data are still being collated.

"We are just finalizing a few details," National Treasurer Omar T. Cruz said. He declined to give more details although expectations are high the government will again surpass expectations.

"The deficit will probably be lower than target. The government has largely been successful in trimming its deficit," said Jonathan L. Ravelas, Banco de Oro market strategist.

He pointed out that the January to February deficit was P40.4 billion, below the target P48.1 billion. The goal for the first quarter is P71.8 billion. The deficit target for 2006 is P125 billion.

Vikki L. Guevara, Philippine National Bank assistant vice-president, noted that revenue collections of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) for the first quarter are all higher than their targets.

"The higher revenues will definitely reduce the government’s deficit," Ms. Guevara said.

The BIR has announced that tax collections for the first quarter reached P135 billion, better than the P131-billion target, mainly due to the expanded value-added tax which was raised to 12% from 10% last February.

The BoC, meanwhile, also said collections for the same period amounted to P42 billion, more than 10% higher than the P39-billion target.

Mr. Ravelas said market players are already factoring in the government’s fiscal performance as evidenced by the huge drops in debt yields from government securities.

"The market continues to believe that the government’s fiscal program is on track. The government’s announcement is expected to further substantiate market expectations," Mr. Ravelas added.

Rates for government debt papers had been falling across all tenors, although bigger for securities with longer maturities. Last Tuesday, the four-year T-bond rate fell to a new low of 6.5%. -

http://www.bworldonline.com/BW042006/content.php?id=001

Lili

April 19th, 2006, 07:00 PM

US envoy: RP a laggard in Asia
By Pia Lee-Brago
The Philippine Star 04/20/2006

The Philippines is still lagging behind its neighbors despite recent improvements in its economic performance, US Ambassador Kristie Kenney told American businessmen in the country yesterday.

In her first major public address since taking up her appointment last month, Kenney said rampant corruption and poor enforcement of intellectual property rights remain two of the biggest obstacles to rapid economic growth.

"On the economic side, I know there are great opportunities economically. The growth rate here looks extremely great, but compared to some of the dynamic, really fast-moving economies in Asia, the Philippines is not where it ought to be," Kenney told a luncheon meeting of the American Chamber of Commerce at the Shangri-la Hotel in Makati City. "Again, corruption and intellectual property issues play a role here."

Kenney, a career diplomat and the first female ambassador assigned to Manila, said the United States had not given up on its former colony despite political strife and sluggish economic growth.

She described US-Philippine relations as solid and "special."

"Relations between our two countries today are more important than ever before," she said. "Our two countries share a special bond of history which we value."

She noted that the United States remains the Philippines’ largest investor, largest foreign donor and biggest market for Philippine products.

Kenney said the Philippines should be a great place for investments because of its natural resources and its people.

Kenney declined to comment on the political crisis hounding President Arroyo, which analysts have warned could derail economic recovery.

"This is for the Filipino people to work on. It is no secret anywhere in the world that stability leads to economic growth and development. But the Filipino people have the institutions to strengthen democracy," she said.

"From my various postings abroad, what I see here actually gives me real optimism that this can be a country that is peaceful and prosperous."

Washington is closely watching Mrs. Arroyo’s economic reforms for results, particularly an improvement in the local business climate.

Corruption and intellectual property rights are two issues that highly concern Washington.

Robert Ludan, counselor for economic affairs of the US Embassy, earlier said the Philippine government needs to invest more in infrastructure, education and health care.

Kenney is optimistic of a breakthrough in the peace negotiations between the government and the More Islamic Liberation Front (MILF).

"I think there is a real prospect for peace with the MILF and I think that will be something the US will be delighted by and continue supporting," she said.

But she admitted the threat of terrorism in Mindanao still worries Washington. "I think we all worry about terrorist activities anywhere in the world."

Kenney added that the United States will continue supporting Philippine military reform but the amount spent will be up to the US Congress.

Asked later how much that support would cost, Kenney said: "I don’t know. No one can predict what our Congress will do. But I can assure you we will continue to support the reform program."

The Philippine military, which is battling communist insurgents and Muslim extremists, has one of the most poorly-equipped forces in Southeast Asia. It no longer has fighter aircraft and some of its warships date back to World War II.

The Philippines began a defense reform program in 2003 involving the total overhaul of the defense establishment but cash shortages have hampered modernization of the armed forces.

The United States is seen as a key partner in the modernization program which is expected to take five years to complete.

Washington has deployed troops in the southern Philippines to train Philippine troops in fighting Muslim rebels alleged to have ties with the al-Qaeda and Jemaah Islamiyah Muslim extremist networks.

dancethingy

April 20th, 2006, 10:11 AM

Hey Lili, you know i actually read the transcript of her speech and i am just livid at how journalists here make a mountain out of a mole. A more balanced approach to this speech was tackled by Manila Bulletin. This newspaper is becoming more desperate, it has been letting go apocalyptic tendancies as of late. The speech doesn't say "laggard" but simply emphasizes that we are lagging behind more dynamic Asian economies.

dancethingy

April 20th, 2006, 10:32 AM

Ok, ate lili and of course everyone else. Read carefully through this article and decide whether its a good outcome or a bad outcome. The focus should be on budget deficit for the first quarter, BIR and BOC revenue generation, and spending vs revenue generation. The overall outlook is good, but the name of the article is negative. Damn the Inquirer. Im not trying to be too pro-Arroyo here, but am just trying to hit at the negative media for doing its part in keeping everyone down.

Subscribe to Business News SMS Alerts on your mobile phone! Send ON EXTRA BUSINESS to 2207 for Globe, or EXTRA BUSINESS to 386 for Smart.

(2ND UPDATE) THE GOVERNMENT incurred a budget deficit of 27.2 billion pesos in March, more than its target ceiling of 23.7 billion pesos, National Treasurer Omar Cruz said.

This brought the first-quarter budget gap to 67.6 billion pesos, less than the 71.8 billion-peso target ceiling.

"The first quarter performance is of good quality in the sense that it is driven primarily by revenues and at the same time the government is not underspending," Cruz told reporters after releasing the fiscal data.

"There's an element of pump-priming in the first quarter, which is a trend that will continue in the second quarter. This is the kind of thing that international credit rating agencies really want. What we're doing is a balancing act."

Revenues in March reached 68.1 billion pesos, above the target of 63.8 billion pesos and better than the year earlier's 58.6 billion.

Expenditures however rose sharply coming in at 95.3 billion pesos against the target of 87.6 billion.

For the first quarter, total revenues reached 205 billion pesos, better than the goal of 191.7 billion pesos. Last year, first quarter revenues stood at 171.7 billion pesos.

Expenditures in the January to March period were also higher than the ceiling, reaching 272.6 billion pesos against the target of 263.5 billion pesos. Spending in the first quarter last year was at 235.1 billion pesos.

Cruz said expenses exceeded the program after the government front loaded interest payments as a result of its recently concluded bond exchange.

In late February, the government swapped a total of 111.1 billion pesos worth of government securities for three-year, five-year and seven-year benchmark bonds.

If interest payments are removed from the expenditure, the government achieved a surplus of 7.9 billion pesos in March and 36.9 billion pesos for the first quarter, the Bureau of Treasury said.

The Bureau of Internal Revenue (BIR) continues to be the government's main revenue earner, collecting 43.7 billion pesos in March, better than its target of 42.6 billion pesos and the year earlier's 36.3 billion.

For the first quarter, the BIR collected 135 billion pesos against its goal of 131.4 billion and collections of 110 billion last year.

Lili

April 20th, 2006, 04:40 PM

^ Hey Ben, I was wondering how you are? :)

Balanced presentation of the news is always good. :okay:

chixbebe

April 21st, 2006, 05:39 AM

The International Monetary Fund (IMF) raised its forecast for the Philippine economy this year on a stronger inflow of funds from Filipinos working overseas – and painted a rosier picture for 2007 – in a report released yesterday.

The IMF’s latest World Economic Outlook projected the Philippines’ gross domestic product will expand five percent this year, down from 5.1 percent in 2005 but higher than the IMF’s September forecast of 4.8-percent growth.

For 2007, the IMF forecast the Philippine economy will expand 5.6 percent.

The IMF credited the growth with surging remittances. About eight million overseas Filipino workers last year sent home a record $10.7 billion (euro8.6 billion), up 25 percent from the previous year and constituting around 11 percent of 2005 GDP.

The Central Bank expected overseas workers to remit a total of $11.8 billion (euro9.5 billion) this year.

The IMF said that, like with other Southeast Asian countries, policy priorities for the Philippines include reducing public debt and containing inflation amid rising energy prices.

Since last year, the Philippines has been implementing tax reform and other measures to boost revenue and narrow a yawning budget deficit.

The government expects to cap the budget deficit this year at P125 billion compared with the 2005 deficit of 146.5 billion. The government hopes to balance the budget as early as 2008.

But many challenges remain, including corruption.

US Ambassador Kristie Kenney, addressing the American Chamber of Commerce on Wednesday, said while the growth rate looked good, "compared to some of the dynamic, fast-moving economies in Asia, the Philippines is not where it ought to be."

"Corruption plays a role in this, as do issues such as intellectual property rights," she said.

The Philippine Star 04/21/2006
http://www.philstar.com/philstar/NEWS200604210702.htm

dancethingy

April 21st, 2006, 08:11 AM

Hi ate lili, im in Panay Island. I've decided to take a stint at lecturing nursing students at Iloilo city, Kalibo, and Roxas city. I've been all over Capiz, Iloilo, and Aklan. Its an adventure and im having a good time. I'll show all the pics when i get back to manila in two months time. I'll be going to Guimaras soon and im so excited. In june im going to be going to Cebu and Bohol to lecture more students.

here's a good article from businessworld
Deficit kept under control

The government yesterday announced a better-than-projected first-quarter deficit, largely due to improved revenues, unlike in the past where lower shortfalls were caused by large expenditure cuts.

The deficit for January to March reached P67.6 billion, narrower by P4.2 billion or 5.85% than the programmed P71.8 billion. However, it was also 6.46% higher than the P63.5-billion shortfall recorded for the same period last year.

National Treasurer Omar T. Cruz said the deficit would have been lower had it not been for huge interest payments made when the government conducted a bond exchange last February.

"On a net basis, the interest payments for this year remains the same. But it was frontloaded in the first quarter due to the bond swap," Mr. Cruz explained, noting that this was reflected in the March deficit.

The deficit for March thus stood at P27.2 billion, higher than the P23.7-billion target and the P23.4 billion posted last year.

Interest payments for the first quarter reached P103.8 billion, larger than the programmed P96 billion. It was also higher than the P85.5 billion recorded last year.

The government spent P272.6 billion during the first quarter, higher than the programmed P263.5 billion. This is also higher than the P235.1 billion it spent for January to March of last year.

Overspending was offset in part by P13.3 billion in excess revenues as collections reached P205 billion, better than the P191.7-billion target and the P171.7 billion last year.

Mr. Cruz said the government wanted to spend more during the first half of the year, during the typically "dry season," to propel the economy.

March Target Jan - Mar Target
(in billion pesos)
Budget Deficit 27.2 23.7 67.6 71.8
Revenues 68.1 63.8 205.0 191.7
Bureau of Internal Revenue 43.7 42.6 135.0 131.4
Bureau of Customs 16.7 14.3 42.3 38.6
Bureau of Treasury 4.8 4.0 17.3 11.6
Other offices 2.8 2.9 10.4 10.0
Expenditures 95.3 87.6 272.6 263.5
Note: Numbers may not add up because some non-tax revenues, such as fees and charges by state agencies, may not be included.)

"We are not underspending. Operating expenditures, net of interest payments, were in line with the fiscal strategy of the government in maximizing spending to help pump prime the economy," he said.

The national treasurer admitted that the lower deficit last year was primarily driven by reducing expenditures which could have slowed the growth of the economy. Last year, the economy grew by 5.1% but the National Economic and Development Authority expects it to go up to 5.7% to 6.3% this year.

Mr. Cruz expressed optimism that the government will meet the P125-billion target deficit for this year as it expects more revenues to pour in from the expanded value-added tax (EVAT) which was raised to 12% from 10% last February.

"We are just getting warmed up especially with the EVAT," he said.

Banks polled by BusinessWorld said the latest results proved the government is continuing to succeed in its fiscal program.

"It seems that the recent figures were what the market expected. What we can derived here is the fact that given these deficit numbers, the government fiscal program is paying off," said Jonathan L. Ravelas, Banco de Oro market strategist.

"It will continue to support a low interest environment. The risk premiums asked by investors on government securities should go down," he added.

Rates for government debt papers have been falling across all tenors although the drops are bigger for securities with longer maturities.

Last Tuesday, the four-year T-bond rate fell to an all-time low at 6.5%.

However, the deficit data failed to lift the peso yesterday which closed even lower against the dollar at P51.495 from P51.32. The main stock index closed 0.86% higher at 2,242.76 points before the deficit data was released.

"It seems that the market has priced this in already," a currency dealer from a local bank said.

Mr. Ravelas said investors will continue to watch over the progress of the government in improving its finances.

"The next question is whether this is sustainable. What the government needs to do it to continue to top expectations," he said.

Meanwhile, Macquarie Bank economist Tim Bowring, reacting to the latest deficit data, said "Revenue is heading in the right way ... at this stage, we’re quite confident that the government would certainly meet its [full-year budget deficit] target of 2.1% of GDP ... In fact our forecast for 2006 is a little bit more optimistic. We’re looking at a deficit sitting around 1.7% of GDP ... based on the current momentum."

Song Seng Wun, regional economist at CIMB-G.K. Securities, said "Rather than look at it on an individual month, we should be looking at Philippine fiscal numbers on a cumulative basis ... In terms of key indicators that we used to watch out for, the fiscal position is no longer in the deteriorating column."

"I think politics is now the key. Socioeconomic indicators are also in the negative list which, if allowed to continue to deteriorate, might marginalize the Philippines in the longer run." -- with a report from Reuters

JAMAICUS

April 21st, 2006, 11:46 AM

Shares close at nearly 7-year high on earnings hopes

XFN-Asia

(UPDATE) SHARE PRICES closed higher for the second straight session, with the main index at its highest level in nearly seven years, as investors accumulated index heavyweights that are likely to report strong earnings for the first quarter, dealers said.

They said the government's better-than-expected budget deficit for the first quarter also lifted sentiment.

The composite index ended at the day's high, up 20.21 points or 0.90 percent at 2,262.97, after touching a low of 2,227.65. It was index's highest finish since August 24, 1999, when it ended at 2,265.31.

The broader all-shares index advanced 11.68 points to 1,394.49.

Gainers outnumbered losers 51 to 45, while 54 stocks ended unchanged.

Volume reached 4.79 billion shares worth 1.87 billion pesos.

Philippine Long Distance Telephone Co. led the rally, ending at a record high of 2,000 pesos, up 45.00 pesos or 2.30 percent, on volume of 169,980 shares worth 336.4 million pesos.

The market opened on a weak note as investors took profits on mining stocks, but buying in index heavyweights helped the market recover in the middle of the session.

"People have started to rotate funds by cashing-in on mining chips and buying into blue chips that are expected to report solid growth," said Citiseconline analyst Mark Alan Canizares.

He said encouraging economic data, such as the government's lower-than-expected budget deficit for the first quarter, also gave market sentiment a boost.

The government reported after the market closed on Thursday that it had a budget deficit of 67.6 billion pesos in the first quarter, less than its target ceiling of 71.8 billion pesos, as growth in revenue outpaced a rise in spending.

The budget gap for March was 27.2 billion pesos, more than the target limit of 23.7 billion pesos, as the government spent more to boost the economy, National Treasurer Omar Cruz said.

"As soon as share prices corrected, you saw people coming back. That shows you the strength of the market," said DA Market Securities Inc. president Nestor Aguila.

Dealers expect investors to cash-in gains from the market's rally next week, but they said any weakness might be taken by some as an opportunity to position in select stocks that are likely to report strong profits for the first quarter.

Top-traded Ayala Land Inc. gained 0.25 peso or 2.17 percent at 11.75, on volume of 45.47 million shares, while its parent, Ayala Corp., was up 2.50 at 370, on 293,560 shares.

Banco de Oro Universal Bank was up 0.50 at 35, while its parent, SM Investments Corp. gained 7.00 at 233.

Mining shares, led by Philex, succumbed to profit-taking after recent gains, tracking the sharp decline of gold and silver prices in US trading overnight.

Philex Mining A-shares, restricted to Filipino investors, were down 0.15 at 3.85. Philex Mining B-shares, available to foreigners, fell 0.15 to 3.90.

San Miguel A-shares ended steady at 60, while San Miguel B-shares were up 0.50 at 82.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=21&file=18

JAMAICUS

April 22nd, 2006, 10:36 AM

VAT, privatization to balance RP budget by 2008

By Gilbert Le Gras

WASHINGTON - The Philippines, Asia's second largest sovereign debt issuer after Japan, expects to balance its budget in 2008 rather than the original target date of 2010, Treasury Secretary Margarito Teves said on Friday (Saturday in Manila).

Manila's fiscal deficit is expected to narrow to 2.1 percent of gross domestic product this year from 2.7 percent last year then shrink further 1 percent in 2007, he said.

"In 2008 we expect to have a balanced budget principally from revenue from our expanded VAT (value-added tax)," Teves told Reuters on the sidelines of the International Monetary Fund's semiannual meeting in Washington.

"This time we're trying to finance ourselves through our own resources, rather than going to markets or multilaterals," Teves said moments after meeting with a half dozen IMF and World Bank officials. "We're trying to improve our capital markets and to expand our secondary market."

Earlier on Friday the World Bank said it planned to resume sector reform loans to the Philippines due to its improved fiscal position. The World Bank had halted the loans, which the government used to fund its budget deficit, because of delays and limited success in promised reforms.

Teves said Manila plans to issue less debt in the coming years due to growing VAT revenues and aims to target its denomination mix at 60-65 percent in pesos this year and next.

"We've talked with credit rating agencies and maybe Moody's might consider an upgrade as long as we meet our fiscal target this year," he said.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=36394

chixbebe

April 24th, 2006, 05:31 AM

BY LEE C. CHIPONGIAN
http://www.mb.com.ph/BSNS2006042462156.html

National Government interest payments are expected to drop 6-8 percent in 2007 to below P318.9 billion from the programmed P340 billion this year.
The Department of Finance sees debt servicing further declining to P316.8 billion in 2008 and P315.8 billion a year later. However this will increase to P331.8 billion by 2010 when the budget deficit starts to balance out.

According to the interagency Development Budget Coordination Committee (DBCC), interest payments will decrease an average of three percent beginning next year.

In 2005 NG debt service amounted to P299.8 billion, P13.6 billion lower against programmed of P313.4 billion.

Interest payments on the loans were lower on account of a lower foreign exchange. Compared to 2004, government’s interest obligations decreased by 14.6 percent from P260.9 billion.

Interest payments comprise more than one-third of the government budget and because of its huge payment, funds for basic services were sacrificed for the most part.

This "imbalance" has made the government vulnerable to potential shocks from currency depreciation, interest rate hikes, inflationary pressures and other fortuitous events. Presently the country’s foreign debt is 76 percent of GDP.

The NG posted better than program first quarter deficit of P67.6 billion against ceiling of P71.8 billion. For the first three months interest payments is P35.1 billion, higher compared to the same period last year of P28.8 billion.
The government’s fiscal strategy is to minimize spending and to pump primp.

The DBCC recently approved a revenue program of P974.2 billion this year from previous target of P968 billion, with the inclusion of non-cash collections.

The DBCC also increased the disbursement level from P1.093 trillion to P1.099 trillion or by P5.5 billion to maintain the P124-billion budget deficit target for the whole year. In 2005 disbursements totaled P942.2 billion.

dancethingy

April 24th, 2006, 06:05 AM

Teves vows balanced budget in 2010

By GILBERT LE GRAS

WASHINGTON, Apr. 23 (Reuters) — The Philippines, Asia’s second largest sovereign debt issuer after Japan, expects to balance its budget in 2008 rather than the original target date of 2010, Finance Secretary Margarito Teves said.

Manila’s fiscal deficit is expected to narrow to 2.1 percent of gross domestic product this year from 2.7 percent last year then shrink further 1 percent in 2007, he said.

"In 2008 we expect to have a balanced budget principally from revenues from our expanded VAT (value-added tax)," Teves told Reuters on the sidelines of the International Monetary Fund’s semi-annual meeting in Washington.

"This time we’re trying to finance ourselves through our own resources, rather than going to markets or multilaterals," Teves said moments after meeting with a half dozen IMF and World Bank officials. "We’re trying to improve our capital markets and to expand our secondary market."

Earlier on Friday the World Bank said it planned to resume sector reform loans to the Philippines due to Manila’s improved fiscal position. It had halted the loans, which the government used to fund its budget deficit, because of delays and limited success in promised reforms.

Teves said Manila plans to issue less debt in the coming years due to growing VAT revenues, and aims to target its denomination mix at 60-65 percent in pesos this year and next.

"We’ve talked with credit rating agencies and maybe Moody’s might consider an upgrade as long as we meet our fiscal target this year," he said.

Overall macroeconomic conditions such as the fiscal balance and inflation should gradually improve.

Annual inflation of 7.6 percent should remain high in the near term because of high oil prices and carry-over effects of last year’s increase in the VAT to 12 percent from 10 percent but consumer prices should moderate in the mid-term, he said.

The government is ramping up agricultural infrastructure spending in the first half of 2006 ahead of the rainy season in a bid to spur growth which it hopes will cut food prices.

Farm output last year grew at an anemic 2 percent compared with its recent annual averages of 4-5 percent so investing in this sector should increase supply and lower retail prices for low-income earners, Teves said.

"Hopefully, some improvement in the peso should have some bearing on inflation," he added.

The central bank has held overnight rates steady for the last six months at 7.50 percent for borrowing and 9.75 percent for lending — a four-year high point.

Manila is also trying to generate revenues through some privatizations in the power generation industry, he said.

The opening up of the country’s wholesale electricity spot market, vital to the sale of state-owned power plants, should be ready in July or August rather than June — as was expected by analysts.

"Let’s give it until July or August to allow for slippages," Teves said.

Furniture industry bats for lifting of ban on abaca harvest

By MELODY M. AGUIBA

The furniture sector is batting for the lifting of an executive order (EO) banning the harvest of abaca leafsheaths or "umbak" used as indigenous material which adversely affects the Philippines’ $ 500 million furniture export.

Believing that the EO, issued last Feb. 2, 2006, is "imbalance" in favoring only the sector in the Philippine economy or the pulp and fiber sector, furniture makers feel the policy will not only hurt the industry but also farmers who take advantage of the umbak livelihood opportunity.

Farmers prefer harvesting the umbak because it enables them to convert the harvest into cash over four days because the sheath dries fast while abaca (wet, inner sheath) takes one month to process. The inner sheath is the one used by the fiber and pulp sector which contributes to abaca’s $ 70 million to $ 80 million Philippine exports.

EO 502 has banned the harvest of umbak since its harvest threatens supply of fiber for the pulp and fiber sector. This is because umbak is a host for arthropods which are vectors of viral diseases — abaca bunchy top, abaca mosaic, and abaca bract which are transferred through mechanical means.

However, Alexander K. Tan, Solingen Indl. Corp. chairman, said proper quarantine procedures can solve the infestation problem while a ban will hurt the furniture sector.

"There’s a win-win solution. Fumigation is the answer. The furniture industry can afford it. FIDA (Fiber Industry Development Authority) can issue licenses for the transportation of umbak," said Tan.

Umbak is the exposed, outer layer composed of young and mature sheaths of the abaca plant which has been in-demand as a raw material for furniture particularly for those bound to US and Europe due to its attractive, natural dark shade that does not need coloring.

"Markets abroad really like the dark species which are found in Bicol, Sorsogon, Leyte," said Noel L. Cunanan, Mecca Mfg. Phils. Inc., president.

While agreeing that umbak causes spread of pest and disease infestation, Cunanan asserted that the ban should only be imposed on severely-infected areas so as to allow the furniture industry to harvest in non-infected areas.

Marlene Gatpatan-Bedia, cluster development head of the Cebu Furniture Industries Foundation Inc. (CFIF), said it is not even certain yet if umbak is the only host of the vectors.

"That is contentious to us. If the outer part is infected, why can’t you say that the inner part is not inected," she said.

CFIF indicated in a statement that the furniture industry should be supported by government considering that umbak never used to have any commercial use for a long time until exporters tapped the former waste material.

"The industry put to good use umbak which were originally waste materials (but are now) used to produce furniture and home furnishings exported worldwide," it said.

Fifty percent of CFIF, a $ 270 million group as Cebu is the Philippines’ furniture capital, use umbak as raw material.

"This will seriously jeopardize the furniture industry specially in Cebu whose remaining competitive edge over other furniture manufactures in the world is its unique designs and local materials. It employs 200,000 people and is considered one of the most dynamic industries in the region," CFIP said.

Because of the lobby of fiber and pulp industries, several local government units (LGU) had already issued a ban on the harvest of umbak including Southern Leyte and Baybay Town, Leyte.

The Southern Leyte LGU said its abaca industry brought an income of P302.75 million in 2002 which caused it to prevent the spread of diseases in abaca farms, hence the ban.

JAMAICUS

April 24th, 2006, 02:24 PM

RP may lower Q3 domestic borrowings

The Philippines may cut its planned domestic debt issues for the third quarter with the government ahead of its borrowing needs by P14 billion to P15 billion ($271-290 million), National Treasurer Omar Cruz said on Monday.

The government has yet to disclose its third quarter borrowing plan but market players said the Treasury may decide to cut debt auctions in the July to September period.

Asked to comment on debt traders' view that they should aggressively buy government debt now as supply may dwindle, Cruz said: "They should start thinking about it if I'm P14 billion-P15 billion ahead of program."

The Philippines, which taps local and foreign debt markets to fund its budget deficit, borrowed P132.7 billion in the domestic market in third quarter of last year, the Treasury said.

For the second quarter of this year, the government earlier said it would borrow P66 billion, in line with the P66.3 billion it borrowed in the first quarter.

The government spends about a third of its budget on interest payments and is keen to cut its borrowing this year, particularly foreign debt issues, given extra revenues expected from a broader sales tax.

The government aims to cut this year's budget deficit to P125 billion, or 2.1 percent of gross domestic product, from last year's below-target shortfall of P146.5 billion, or around 2.7 percent of GDP. Reuters

http://www.abs-cbnnews.com/storypage.aspx?StoryID=36585

sugbuanon

April 24th, 2006, 06:14 PM

Canadian entrepreneurs strike $ 50M in commercial deals

TORONTO - Canadian small and medium entrepreneurs struck some $ 50 million in commercial agreements during the recent trade mission to the Philippines led by the Philippine Chamber of Commerce-Toronto (PCCT).

Cora de la Cruz, PCCT President, reported that more than 20 agreements were signed between the mission participants and executives of Philippine firms during the mission.

Dela Cruz said at least three more agreements would be formalized later this year.

The trade pacts sought for include cooperation and partnership in the areas of science and bio-technology; information and communications technology; education and training; hospitality and tourism; agriculture and food; financial and insurance services; recycled products; and building and construction.

Representatives from four firms that joined the mission have returned to the Philippines to start work on the agreements they have earlier signed.

Dela Cruz cited the eagerness of Canadian and Philippine businessmen to explore bilateral commercial opportunities.

She said the trip provided a great chance for Canadian merchants to be part of efforts to help boost the Philippine economy.

With the PCCT in the mission were the Canada-Philippines Business Council and the Manitoba Filipino Business Council.

Dela Cruz also cited the assistance of Philippine government agencies and private business groups to the mission.

Among those cited were the Philippine Consulate General in Toronto; Philippine Embassy in Ottawa; Departments of Foreign Affairs, Trade and Industry, and Tourism; Philippine Chamber of Commerce and Industry, Philippine-Canada Business Council, Subic Bay Management Authority, Clark Development Authority.

sugbuanon

April 24th, 2006, 06:15 PM

Fish port expansion project nearing completion

MANILA - The Philippine Fisheries Development Authority-General Santos Fish Port Complex (PFDA-GSFPC) expansion project reported significant advances in its implementation.

PFDA-GSFPC Manager Rodrigo Bulaon and Mr. Zhang Zhaoyang, Project Manager of the China Agricultural Machinery Import Export Corporation (CAMC), reported that so far, the total work accomplishment has reached 73.69 percent of the total contract package amounting to approximately US$ 20 million.

The latest accomplishments include significant finishing works on the Cold Storage Facility and backfilling and concreting of breasting wall at Wharves 1 and 2.

The General Santos Fish Port Complex (GSFPC) Expansion Project is one of the projects under the US$ 100 million supplier’s credit facility in the field of agricultural modernization and development granted by the People’s Republic of China to the Philippines through the China Agricultural Machinery Import Export Corporation (CAMC).

China will provide the US$ 24.985 million needed to finance 90 percent of the project through a loan from CAMC.

The project was conceptualized through the combined initiative of concerned local and national government agencies, in collaboration with fishing industry players and economic managers, to boost the capabilities of GSFPC for local and foreign frozen fish suppliers.

It includes the construction of 500 meters of deep draft wharves to accommodate large tonnage fishing vessels over 300 GRT. Ancillary facilities to be provided include cold storage facility with 1500 MT capacity, 500-cubic meter wastewater treatment plant, pipeline collection system, overhead water tank, and power sub-station with stand-by generator set.

The expansion project will provide the needed infrastructure facilities for fish landing and marketing, facilitate the centralization of operations and unloading of fishing vessels and carriers, promote maximum capacity utilization of existing canneries in the area, improve quality handling of frozen fish products, increase employment opportunities, and accommodate the additional volume of wastewater to be generated from the expected industries inside the complex.

The availability of adequate and improved berthing facilities, fish handling equipment, market, processing, canning and ancillary facilities will further boost General Santos City as the tuna capital of the Philippines.

JAMAICUS

April 24th, 2006, 07:07 PM

Japan rating agency upgrades RP outlook

By Maricel E. Burgonio
The Manila Times Reporter

The Japan Credit Rating Agency on Monday revised the Philippines’ credit rating outlook to stable from negative in a vote of confidence that the country’s economy would continue its stable performance this year.

JCRA clarified, however, that its BBB- rating on the country’s domestic and foreign currency long-term senior debts remains.

In a statement, JCR said it has improved the Philippines rating outlook but will keep a close watch on the government’s efforts to better the country’s fiscal position. It is particularly interested in how the proposed parliamentary form of government would affect the Philippine political and economic situation.

In JCRA’s view, it is unlikely the political uncertainty could get any worse. Saying the military coup would only succeed if majority of the people and military act hand in hand and the antigovernment forces have a person of strong leadership, JCRA has concluded "[t]hese conditions are less likely to be met at the present."

It cited the economic growth in 2005 of 5.1 percent as comparatively high given the political unrest in the country in the late part of 2005. The Philippines gross domestic product (GDP) grew 6.1 percent in 2004.

The expansion of private consumption, fueled by overseas Filipino workers remittances, will be the main driver of the country’s economic growth this year, which is expected to post the same growth rate in 2005 despite sluggish exports growth.

JCRA said it expects the implementation of EVAT and intensified tax collection efficiency to play vital roles in fiscal reforms, most especially in reducing the budget deficit.

However, it has suggested that government pursue the reinforcement of fiscal discipline through the legislation of a fiscal responsibility act as well as the privatization of the National Power Corp. to reduce the public sector deficit.

The ratio of the total public sector fiscal deficit to GDP significantly decreased to 2 percent in 2005 after hitting 5.6 percent in 2002. The main factors for the turnaround were reduced budget deficit and increased electricity rates.

JCRA downgraded the country’s rating outlook to negative from stable on July 15, 2006, in the face of the political crisis that beset the Arroyo administration and the suspension of the expanded-value added tax (EVAT) implementation by the Supreme Court.

http://www.abs-cbnnews.com/storypage.aspx?StoryID=36622

dancethingy

April 25th, 2006, 05:57 AM

Debt-to-GDP ratio to drop to 68%

By LEE C. CHIPONGIAN

Philippine debt, currently 76 percent of gross domestic product and one of the highest debt-to-GDP ratios in Asia, is expected to decline to 68 percent by the end of the year and to a low of 43 percent by 2010.

As of January, government debt totaled P3.964 trillion. National Treasurer Omar Cruz said that despite the rise in debt, the pace of increase is actually "decelerating as a result of fiscal reforms."

The inter-agency Development Budget Coordination Committee (DBCC) said the outstanding debt as a percentage to GDP will improve over the medium-term from 72 percent in 2005 to 68 percent this year. It will decline below 50 percent by 2008 and then finally, 43 percent of GDP by 2010.

At the moment the DBCC is discussing adjusting the balanced budget target to allow pump priming, using surpluses that will be gained by 2008.

Finance Secretary Margarito B. Teves, currently in the US for a road show, has recommended a study on the possibility of maintaining the 2008 until 2010 program to use excess cash or surplus to spend more as well as improve the debt-to-GDP ratio.

For 2005 the DBCC increased the disbursement level from P1.093 trillion to P1.099 trillion or by P5.5 billion to maintain the P124-billion budget deficit target for the whole year.

The DBCC executive technical board is now looking at Teves’ recommendation and to study how the economy will move to improve the debt-to-GDP ratio.

In the meantime finance and monetary authorities are currently assessing prepayment plans and how government borrowings can be reduced to lessen foreign exchange costs.

With the continued favorable foreign exchange rate, the government is considering converting some of its 0 million foreign borrowing to peso and source requirements from the domestic market.

A strong local currency results to savings for the NG in terms of lower interest rates and reduced payments for old debts. For every peso appreciation, the government saves P5 billion in interest payments.

JAMAICUS

April 25th, 2006, 06:03 AM

Gov't allays investors' concern on 1st-quarter spending
Posted: 1:52 AM | Apr. 25, 2006

Inquirer

THE Department of Budget and Management is trying to allay investors' fears over the government's high spending in the first quarter of the year, saying the government's pump-priming initiative does not mean it will abandon its target of reducing the budget deficit to P125 billion this year.

"As we disburse funds, we are not taking our eyes off the deficit meter," Budget Secretary Rolando Andaya said.

The spending "will taper off in the homestretch," he said.

Andaya said in a statement that the government had to design a fiscal program in such a way that the bulk of the spending -- along with its corresponding limits on the budget deficit -- for the year would be carried out in the first few months.

He said spending on infrastructure should be done mostly in the first quarter, in time for the dry season.

"We are taking advantage of the good weather summer brings," Andaya said.

"There is the threat of La Niña this year, so we're practically racing against time," he said, referring to the rain-inducing weather disruption.

The statement was made in response to concerns that the government's strategy of concentrating the bulk of its expenses in the early part of the year might lead to a breach in the budget deficit target.

Some investors cited the events of 2002, when the government hit its full-year deficit target in the middle of 2002 and had difficulty controlling spending in the latter months of that year.

Andaya said that the budget deficit in the first quarter of 2006 was lower than programmed, which indicated that the government would maintain its deficit target for the year.

In the first quarter of 2006, the budget deficit amounted to P67.6 billion as against the target limit of P71.8 billion. It is 54 percent of the target ceiling of P125 billion for the year.

The deficit ceiling is set at P18.6 billion in the second quarter, P31.6 billion in the third and P2.9 billion in the fourth.

National Treasurer Omar Cruz said the events of 2002 were not comparable to those in 2006.

This year, he said, the government has improved revenue collections by implementing various tax measures, such as an expansion in scope and increase in rate of the value-added tax.

Cruz said that while expenditures are frontloaded this year, these are backed up by the revenue gains from the tax measures. Michelle V. Remo, with INQ7.net

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=25&file=3

JAMAICUS

April 25th, 2006, 10:06 AM

RP sugar harvest seen better, imports lower

Raw sugar output in the present crop year ending in August will likely be higher than initially forecast, raising prospects of lower imports, a senior official said on Tuesday.

"We have not authorized additional imports. We need to review whether we still need it," James Ledesma, administrator of the Sugar Regulatory Administration, told reporters on the sidelines of an international sugar forum in Manila.

The Philippines has allowed seven trading firms to import 50,000 tons of refined sugar to replace part of the 200,000 tons it aims to export to the United States.

It had also said it was considering raising its sugar imports this year by another 30,000 tons.

Ledesma said he believed local trading firms had bought 50,000 tons of refined sugar from Europe in recent weeks, and that the first batch of 800 tons had arrived in the country in the second week of April.

"The crop is coming out slightly higher than our earlier projection," Ledesma said, adding the latest raw sugar projection in the present crop year was 2.04 million tons, up from an earlier forecast of 2.018 million tons.

The country produced 2.150 million tons in the last season.

Ledesma said he expected the country’s raw sugar output to increase by 5 to 8 percent in the 2006/2007 crop year starting in September due to the high price of the sweetener in both the domestic and world markets.

"When prices are good, farmers take care of their crop a little better," Ledesma said, adding a 50-kg bag of raw sugar is now sold at the mills at P1,250 ($24.2) compared with P850 at the same time last year.

"The weather also seems to be cooperating," he added.

Reuters

http://www.abs-cbnnews.com/storypage.aspx?StoryID=36688

amras

April 25th, 2006, 10:30 AM

it doesnt make sense... why do we have to export sugar then import again to cover our exports. why dont we just decrease the amount of exported sugar?

bustero

April 25th, 2006, 02:43 PM

^^haha that's is the beauty of trade distorting tariff regulations and protectionism

JAMAICUS

April 25th, 2006, 05:52 PM

BY MARICEL E. ESTAVILLO, Reporter
Semiconductor, electronics export target on track
The country’s biggest exports sector, semiconductor and electronics, remains on track in reaching the 10% growth in exports receipts this year, despite the slight drop in the February imports value.

Total February imports for the industry -- which accounts for some 70% of the country’s annual exports -- dropped to $1.612 billion, a 1.1% decrease from the $1.629 billion during the same month last year.

Still, industry group Semiconductor and Electronics Industries in the Philippines, Inc., (SEIPI) said recovery is forthcoming.

The industry wants to make up for its sector’s sluggish performance last year -- a mere 0.91% growth from the $27 billion total exports earnings in 2004.

"We are keeping the target. For the period of January to February, semiconductor exports grew by 8.77% while electronics exports grew by 3.75%," SEIPI executive director Ernesto B. Santiago told BusinessWorld in a telephone interview.

Semiconductor or chip production accounts for 74% of the industry while the non-chip exports component or the electronics manufacturing service (EMS) accounts for the remaining 26%.

Total exports for the first two months reached $4.3 billion, an improvement from the $4.13 billion during the same period last year.

In a recent interview, Arthur J. Young Jr., SEIPI president and chairman of power semiconductor maker PSi Technologies, Inc., said exports and imports figures for the first quarter do not totally mirror the industry’s performance for the year.

In trending, Mr. Young said the industry and most companies use end-of-the-quarter figures.

At the general membership meeting (GMM) of SEIPI held over the weekend in Baguio City, Mr. Santiago recounted that most of the big industry players said they are bullish on this year’s prospects.

"2006 semiconductor growth will be driven by strong demands for analog devices mostly for portable consumer electronics, handsets, network and personal computer applications," Mr. Santiago said.

In another interview, Kazuya Takeda, general manager of disc drive manufacturer Hitachi Global Storage Technologies (GST) Phils. Corp., said indeed the consumer electronics business this year is growing.

Without disclosing much detail, Mr. Takeda said Hitachi GST will increase this year the production for the one-inch micro drive, 1.8-inch Travelstar micro drive, and the 2.5-inch hard drive. All these are used for consumer electronics items.

The plant’s present production volume accounts for 15% of Hitachi’s global annual production of 46.6 million drive.

Mr. Santiago said the local semiconductor industry will grow at par with the global market.

"Worldwide semiconductor market will continue to show gradual improvement in 2006. A higher, double-digit revenue growth is projected versus 2005, which grew by 6.9% over 2004," he said.

Global first quarter results showed a strong semiconductor revenue performance with notable growth coming from the analog device sector and mobile phones and wired comunications end applications.

"The semiconductor supply chain inventory remains below target levels in the first quarter, spurring robust replenishment orders," Mr. Santiago said. Still, the overall local electronics industry will continue to lag the world market in growth, primarily a result of Toshiba Corp.’s pullout of its laptop production. The pullout took away an estimated annual exports revenue of $1 billion.

http://www.itmatters.com.ph/news.php?id=042606a

JAMAICUS

April 26th, 2006, 07:42 AM

Shares close higher on hopes fuel tax will stay
Posted: 1:25 PM | Apr. 26, 2006

Cecille Yap
XFN-Asia

(UPDATE) SHARE prices closed higher after two days of losses as investors picked up bargains after the government clarified that suspending the value-added tax (VAT) on petroleum products would be the last option the state will take to cope with high oil prices, dealers said.

The composite index closed up 14.59 points or 0.65 percent at 2,247.14, just off the day's high of 2,247.44. It hit a low of 2,232.55.

The broader all-shares index advanced 10.24 points to 1,388.18.

Gainers outnumbered losers 61 to 31, and 55 stocks were flat.

Volume was 2.17 billion shares worth 2.39 billion pesos.

Finance Secretary Margarito Teves said the government is studying measures to ease the impact of rising oil prices on consumers, while keeping its fiscal consolidation program on track.

Press Secretary Ignaco Bunye said the proposed tax exemption on oil will be considered, but will be the last priority.

The government estimates it will raise 30-35 billion pesos from the VAT on petroleum products this year, or 40 percent of the total projected revenues from the new VAT law that took effect in November last year.

"Though we recognize that this move would be one way to reduce the pressure on consumer spending, we believe it fails to take into consideration the long-term benefits to the economy," said Nadine Javellana, an analyst at Macquarie Research Equities.

DA Market Securities Inc president Nestor Aguila said, "the clarification from the presidential palace and the finance department provided investors some relief."

Most actively traded Philippine Long Distance Telephone Co finished up 10 pesos or 0.50 percent at 1,995 on 386,400 shares.

Conglomerate Ayala Corp was down 2.50 pesos at 347.50, while unit Bank of the Philippine Islands retreated 0.50 to 61. Ayala Land Inc gained 0.50 to close at 12.25.

SM Investments Corp was up 1.00 peso at 229, while unit SM Prime Holdings Inc gained 0.30 to 8.00, ahead of the release of their quarterly results anytime now.

Manila Electric Co's (Meralco) A-shares which are limited to Filipino investors, fell 0.25 peso to 12.75 and the B-shares, which foreigners can buy, was down 0.50 at 18.75.

Dealers said Meralco shares retreated on worries that the Supreme Court may further delay its verdict on the company's rate restructuring case, which would mean additional provisions by the electricity distributor to cover potential losses.

Meralco on Tuesday reported first-quarter net loss of 748 million pesos, much smaller than the year-earlier's 2.2 billion.

San Miguel A closed flat at 60.50 pesos, while San Miguel B was up 0.50 at 81

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=26&file=9

philwily

April 26th, 2006, 08:30 AM

I don't really understand the stock market... :bash:
but from what I hear and read, it's good times for the peso right? :banana2:

well, hope it stays that way (or improves). :)

chixbebe

April 26th, 2006, 09:06 AM

By Lawrence Agcaoili
http://www.manilastandardtoday.com/?page=business01_april26_2006

Finance Secretary Margarito Teves yesterday assured investors that the government was sticking to its fiscal program aimed at trimming the budget deficit to P125 billion this year.

Teves, fresh from a nondeal road show in London and Washington, told reporters that the government was looking at several options to cushion the impact of surging oil prices in the world market.

“We need to raise more revenues to finance infrastructure and social services in order to try to achieve our level of economic growth and at the same time (address) fiscal concern,” he said.

The Department of Finance chief said removal of the value added tax on petroleum products would erode the government’s revenue base and result in higher borrowings to plug the yawning budget deficit.

Teves said the government would borrow if it failed to raise enough revenues to fund much-needed infrastructure and social services projects.

National Treasurer Omar Cruz told reporters in a separate interview that the government had not departed from its fiscal program that aims to narrow the budget deficit to P125 billion or 2.1 percent of gross domestic product this year from P146.5 billion or 2.7 percent of GDP last year.

“There is no departure from the fiscal program. No decision or no policy decision has been made,” Cruz said.

He said pronouncement on the possible lifting of the VAT on petroleum products had spooked the market, resulting in lower yield for bonds issued by the Philippine government and a weaker peso versus the US dollar.

The peso yesterday bucked wider trend in Asia, undermined by concerns over the country’s fiscal position. It sank to a two-month low of 51.90 per dollar at the close of trading from 51.735 on Monday.

Budget Secretary Rolando Andaya Jr., meanwhile, warned that the removal of the VAT on petroleum products would result to cuts in government spending on education and health.

“There will be some tradeoffs. That is inevitable. If we give up the tax on oil, then we must be ready to give up many social and infrastructure projects,” he said.

The Expanded Value Added Tax Act of 2005 that was implemented last Nov. 1 removed the exemptions of several industries, including petroleum products and power. The law also raised the VAT rate to 12 percent from 10 percent on Feb. 1.

The government expects to raise as much as P47.8 billion from the imposition of VAT on crude oil and petroleum products this year.

Of the entire P75 billion proceeds from the implementation of the new VAT law, Andaya said 30 percent or P22.7 billion would be used to finance infrastructure and social services while 70 percent or P52.5 billion would be used to trim the budget deficit.

He said projects that could be cancelled include the P1.6 billion mass feeding program, the P500 million fund for teachers’ training, P150 million computers for high schools, P120 million library hubs as well as airport development activities.

kiretoce

April 26th, 2006, 06:53 PM

Rising remittances seen supporting economic growth
By Rosemarie Francisco

Rising remittances from workers overseas will support consumption and growth of the Philippine economy this year, but weak net exports and investment spending will limit expansion, a Reuters quarterly poll shows.

A recovery in the agriculture sector after drought last year will also help lift the economy but risks remain from crude oil prices, which hit fresh record highs this month, economists said.

The Philippines imports almost all of its crude oil needs.

The median forecast in the quarterly poll was for the economy to grow 4.9 percent this year, slightly slower than 5.1 percent in 2005. For 2007, the median estimate was for 5 percent growth.

The 2006 growth forecast was slightly higher than 4.7 percent forecast in a similar Reuters poll in January, but was well below a government target of 5.5 percent to 6.2 percent.

"Net exports are unlikely to add much to growth this year with rising oil prices and competition from China seen putting upward pressure on the trade deficit," said George Worthington, chief economist for Asia-Pacific at IFR Thomson Financial.

The government expects exports growth to accelerate to 8 percent this year from just 4 percent in 2005. Analysts said a slowdown in global demand in the second half of the year may weigh on the country’s electronics shipments.

The poll showed that analysts have downgraded their expectations for the Philippines trade deficit this year to a median forecast of .3 billion from .1 billion in the January survey. The 2005 shortfall was .16 billion.

"The key for Philippine GDP growth to break out of the 4.5 to 5.5 percent range is a revival of investment," UBS said in a research note last week.

A government plan to raise infrastructure spending by 50 percent this year, off the back of an improved fiscal position, would help fuel economic activity but private-sector spending continued to be limited by persistent political uncertainty, UBS said.

Although President Gloria Macapagal Arroyo survived the desertion of allies and an impeachment attempt last year, analysts expect allegations of election fraud and graft to continue to hound her.

Remittances from Filipinos working overseas are expected to rise 10 percent to .8 billion this year, which would help the peso sustain gains against the dollar, economists said.

JAMAICUS

April 26th, 2006, 07:23 PM

Mining investments hit $525M in Q1
By Rocel C. Felix
The Philippine Star 04/27/2006

Despite spirited anti-mining campaigns, committed investment inflows into the local mining industry reached $525 million in the first quarter alone and is bound to increase further in the coming months, said Chamber of Mines of the Philippines (CMP) president Benjamin Philip Romualdez.

"While there will always be opposition to mining, the general sentiment of investors is very positive. There is a movement forward, with some of the projects on stream, while others are merely delayed," said Romualdez.

He said that foreign investors remain confident that government will stick to its policy of revitalizing the mining sector despite congressional moves to review the mining law.

"As the dust begins to settle, people realize that most of the anti-mining efforts are rhetorical," stressed Romualdez.

From January to March this year, mining companies that announced new or additional investments included Sumitomo Metal Mining Co., Ltd. (SMMC), one of the world’s biggest nickel producers and refiners, which has a 54-percent stake in the Coral Bay Nickel Corp.’s nickel and refinery processing project in Rio Tuba, Palawan.

Sumitomo which spent $120 million last year to double its nickel processing plant’s output to 20,000 metric tons (MT) in the next two to three years, is spending an additional $280 million this year to further expand its existing facilities such as its high-pressure acid leaching (HPAL) plant that processes low-grade oxides to produce nickel/cobalt mixed sulfide (MS), an intermediary product of nickel refining. HPAL is a revolutionary process, recently developed, enabling recovery of nickel from low-grade oxide ores at low cost.

Atlas Consolidated Mining Corp. has completed its $120-million financial requirements and will raise an additional $50 million this year to restart the development of its copper mines in Toledo, Cebu.

Canadian mining firm TVI Pacific Inc. which is listed in the Toronto Stock Exchange has earmarked $15 million this year to expand its mining activities in the Canatuan orebody in Zamboanga del Norte in Mindanao.

TVI filed applications for new exploration grounds in the Zamboanga Peninsula and also plans to pursue exploration of other properties in its inventory. Last year, TVI invested $7 million or about P385 million for the Canatuan development program which involves the immediate re-activation of the company’s existing precious metals processing plant located in Zamboanga del Norte.

The project which started in 2003, includes the development of both a gold and silver-rich oxide zone, and an underlying gold, silver, copper, and zinc - rich, volcanic-hosted massive sulphide (VMS) zone.

The re-activation of the existing processing plant represents the first step in a multi-phase plan to develop the Canatuan deposit mineral resources and to realize the full production potential of the extensive metal-bearing VMS belt surrounding the Canatuan deposit.

Indophil Resources which is now undertaking exploration work at the Tampakan Mines in South Cotabato with local mining firm Sagittarius Mines, expects one of its partners, Australia-based Xstrata Mining Co. to exercise its option to invest $52 million into the Tampakan mining property and acquire a 60-percent stake in the company by July.

Apex Mining Corp. and foreign partner Crew Gold are jointly spending $8 million this year to revive idle mines.

Earlier, the Mines and Geosciences Bureau said there are strong interests by both foreign and local investors to pursue in the next five years 24 medium and large-scale mining projects requiring new investments of $8 billion.

The primary minerals production will come from gold, copper and nickel mining projects.A mining update by the MGB show that nine mining firms are still pursuing groundwork activities in preparation for subsequent full-scale mining operation.

As this developed, the CMP is collaborating with various stakeholders to come up with a guidebook that would among others, establish protocols and define responsibilities and obligations of mining companies to their host communities.

"We have very good mining standards but we will come up with our own standards that will incorporate the nuances or peculiarities of the local mining industry. With this, we hope to remove the suspicion that big mining companies are colluding with the government to advance only their economic interests with total disregard for their legitimate concerns," said Romualdez.

http://www.philstar.com/philstar/news200604270701.htm

JAMAICUS

April 27th, 2006, 08:04 AM

Shares close higher; main index at near 7-year high
Posted: 12:46 PM | Apr. 27, 2006

Erik de la Cruz

SHARE prices closed higher led by market heavyweight Philippine Long Distance Telephone Co. (PLDT), pushing the key index to its highest closing level in nearly seven years, dealers said.

They said investors were positioning themselves in anticipation of a healthy set of first-quarter results, while the continued decline in oil prices from a record high of above 75 dollars a barrel hit last Friday also buoyed up the market.

The government's firm stand in keeping the value-added tax on petroleum products despite high oil prices also aided sentiment, dealers said.

The 30-company composite index closed up 34.25 points or 1.52 percent at 2,281.39, near its intra-day high of 2,284.08. It hit a low of 2,258.51.

It was the index's best finish since August 6, 1999, when it closed at 2,298.18.

Volume was 2.1 billion shares worth 2.9 billion pesos.

The all-shares index rose 20.95 points to 1,409.13.

Gainers beat losers 54 to 44, with 52 stocks unchanged.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=04&dd=27&file=14

JAMAICUS

April 27th, 2006, 11:57 AM

Govt allots P1.5 trillion for infrastructure projects

The government plans to spend P1.5 trillion ($28 billion) on major infrastructure projects over the next five years, seen as a hindrance to investments, the government said Thursday.

It plans to finance 56 percent of the costs and rely on the private sector for the balance of funds required for the projects.

About P743 billion worth of transportation projects lead the list, the economic planning department said in a statement.

The rest would be spent on the power sector, water utilities, communications and social infrastructure.

Infrastructure spending would account for about four percent of the country's total gross domestic product for 2006 to 2010, the statement added.

"Infrastructure plays a crucial role in boosting economic growth and reducing poverty. Substantial investment is needed to create new infrastructure and maintain or improve existing ones," Economic Planning Secretary Romulo Neri said.
http://www.abs-cbnnews.com/storypage.aspx?StoryID=36947

marites4

April 27th, 2006, 06:11 PM

I hope they upgrade edsa^

OtAkAw

April 28th, 2006, 08:55 AM

^^I hope they focus on T3 first with that money.

chixbebe

April 28th, 2006, 10:03 AM

http://www.manilastandardtoday.com/?page=news07_april28_2006

The Philippines’ economic team has assured the Filipino-American media in New York of the country’s good economic performance and intensified anticorruption measures.

Led by Finance Secretary Margarito Teves, the team briefed reporters and editors of the New Jersey-based Filipino Express, the New York-based Filipino Reporter, and the California-based Philippine News on President Gloria Macapagal Arroyo’s fiscal, monetary, and trade programs.

Consul General Cecilia Rebong, quoting Teves, said “the Philippine government has been implementing critical fiscal and monetary reforms” and that “some of those reforms have resulted in greater macroeconomic and fiscal stability for the country.”

Rebong said the Fil-Am media had expressed concern on the political situation in Manila and its possible repercussions to the economy.
Teves replied that “we cannot divert our attention because of political issues; we chose instead to focus on economic reforms which have yielded tangible results.”

He went on to say that in January to February alone, internal revenue collections totaled P136.9 billion, higher than the P127.8 billion target. Ferdinand Fabella

dancethingy

April 28th, 2006, 02:21 PM

Gov’t courts Goldman Sachs
By Marianne V. Go
The Philippine Star 04/28/2006

Investment bank, securities and investment management firm Goldman Sachs is being courted by the Philippines to invest some of its managed funds in the country.

According to Trade and Industry Secretary Peter B. Favila, Goldman Sachs Asia chairman Tom Morgan recently visited the country and paid a courtesy call on President Arroyo.

Morrison, along with other top Goldman Sachs officials, also met with Favila to explore possible investment opportunities.

Goldman Sachs, Favila said, expressed interest in a range of areas including tourism.

One particular area the firm was eyeing was Busuanga in Palawan province where an Amanpulo-type of resort could be built.

Favila offered the Subic Bay Freeport and Clark as possible investment areas especially since Subic is keen on developing more high-end tourism facilities while the Government is set to privatize the Mimosa Golf Resort in Clark.

The Mimosa Golf Resort, Favila said, has been doing good lately due to the influx of Korean tourists.

Apart from tourism, Goldman Sachs, Favila said, expressed interest in the Transco privatization.

Goldman Sachs, Favila said, already has existing investments in the Philippines in bonds, equity funds and a few others.

The Goldman Sachs top executive was able to spend only a brief one-day visit, but Favila has invited the officials to return for a longer exploratory visit.

dancethingy

April 28th, 2006, 02:24 PM

MIND YOU THAT OUR SENATE HAS YET TO PASS THE DAMN BUDGET FOR 2006, SUPPOSEDLY THEY ARE STILL IN RECESS!!!!! Bong Revilla for example is in Boracay with one of his hoes. THIS SENATE IS RIDICULOUS!!!

Today’s Headlines
P1.136-billion national budget eyed for next year

The government has set next year’s budget ceiling at P1.136 billion, 8% higher than this year’s P1.05-trillion proposed budget.

The bigger budget will allow higher spending on infrastructure projects next year, Budget Secretary Rolando G. Andaya, Jr. said in a statement.

The 2007 budget also assumes a deficit of P63 billion - with revenues projected at P1.113 trillion and disbursements at P1.176 trillion - which will be consistent with the government’s goal of balancing the budget by 2008.

This year’s budget deficit ceiling has been set at P125 billion or 2.1% of the gross domestic product (GDP). The P63 billion deficit will improve the proportion to 0.9% of GDP.

The Budget department is set to issue a "budget call" next month, which signals the start of budget preparations by the different government agencies. Congress, meanwhile, has yet to approve the 2006 budget.

Mr. Andaya said the Budget department will use a "planning ceiling" of P340.8 billion for personnel services, P591.6 billion for maintenance and other operating expenses, and P204.3 billion for capital outlays.

The budget for capital outlays will be higher by P58.4 billion than the P145.9 billion allocated in the 2006 budget.

Debt servicing will eat up P316.8 billion or 4.7% of GDP, whereas the 2006 budget has set aside P340 billion or 5.7% of GDP on interest payments.

"This will be largely due to the improvement in the fiscal position of the government," Mr. Andaya said.

He added that the Budget department has established a three-year budget strategy that sets aside funds for new or expansion programs after the funding requirements of existing priority programs are considered.

dabert

April 28th, 2006, 02:32 PM

"The government has set next year’s budget ceiling at P1.136 billion, 8% higher than this year’s P1.05-trillion proposed budget."

Is it really 1.136 billion? coz it stated that its 8% higher than this year's P1.05-trillion proposed budget.. so if we were to put them in a mathematical relation.. it would be 1.136 billion > 1.05 trillion...
please correct me if i'm wrong whether there really is an error on the article or im just missing out some economics-related terms which would verify the relation...

JAMAICUS

April 28th, 2006, 02:34 PM

It's likely a typo error.

JAMAICUS

April 29th, 2006, 06:14 AM

Govt eyes zero deficit, sets 2007 budget ceiling

While the 2006 national budget awaits action in the Senate, Budget Secretary Rolando Andaya Jr. has gone ahead to announce that his department has pegged the government’s "indicative budget ceiling," or the amount of programmed expenditures programmed, at P1.136 trillion for 2007.

Government revenues are projected to be at P1.113 trillion; disbursements, which include liabilities carried over to 2007, are programmed at P1.176 trillion with a deficit cap of P63 billion for next year.

"Such budget configuration is consistent with our goal of balancing the budget in 2008 [and] these are good figures to pursue on the eve of a zero-deficit era," Andaya said.

According to Department of Budget and Management (DBM) forecast, the budget deficit for next year would improve by 0.9 percent from the target 2.1 percent of the gross domestic product (GDP) this year.

Expenditures in 2007, according to Andaya, will correspond to 17.8 percent of output. He also said that the DBM will use a "planning ceiling" of P340.8 billion for personal services, P591.6 billion for maintenance and other operating expenditures (MOOE) and capital outlays of P204.3 billion, which is P56.4 billion higher than this year’s programmed P145.9 billion.

Andaya said that the aggregate budget ceiling was formulated using conservative revenue estimates and "still has to consider new revenue measures expected to take effect on 2007."

However, the impact of the revised value-added tax (RVAT) bill is incorporated in the fiscal program underlying the budget ceiling, the Andaya said.

Meanwhile, interest spending this year of P340 billion, which is 5.7 percent of output, would drop by 7.3 percent to P316.8 billion by next year. This decrease to 4.7 percent of output, Andaya said, will be due to the "improvement in the fiscal position of the national government."

The bulk of the budget increase would be used to finance various infrastructure projects in line with the Arroyo administration’s 10-Point Agenda and Millennium Development Goals.

Budget preparation for 2007 began last month with the Development Budget Coordination Committee, led by the DBM, discussion of the macroeconomic assumptions used for calibrating the proposed budget level. Next month the DBM will issue a budget call for the budget preparation activities at government agency levels.

The DBM established a three-year budget strategy in formulating the aggregate budget ceiling for next year in order for the government to have a long-term view of budgeting its resources and help balance budget earlier than programmed through "enhanced revenue effort and prudent spending" by prioritizing high-impact programs.

Using this strategy, Andaya claims, the DBM was left with enough elbow room for spending on new programs and for expanded existing priority programs after it has allotted enough funding for ongoing programs. This strategy also provided for inflationary impact on affected expenditure items. Likha Cuevas

http://www.abs-cbnnews.com/storypage.aspx?StoryId=37109

dancethingy

April 30th, 2006, 08:34 AM

I hope that zero deficit will really happen. It'd be nice to be in the surplus for a change. Kudos Jamaicus for being up to date on all the topics here in the forum, especially on the economy. I adhere to the Clinton saying "IT'S THE ECONOMY STUPID"

JAMAICUS

May 1st, 2006, 08:29 AM

Corporate income tax collection up 20% in 1st quarter
By Des Ferriols
The Philippine Star 05/01/2006

Corporate income taxes went up by 20 percent in the first quarter of the year due to the combined effects of rising corporate incomes and the increase in the corporate income tax rate from 32 to 35 percent.

The Department of Finance (DOF) reported that corporate incomes went up by at least 12 percent in the first three months of the year, boosting tax revenues from corporate income taxes.

Normally considered the lean quarter, finance officials said the first quarter performance could be indicative of higher-than-expected corporate income tax collections for the whole of 2006.

Finance officials said corporate income taxes from January to March reached P29 billion this year compared to only P23.5 billion over the same period in 2005.

The DOF said the increases in taxes paid was due to the emerging 12-percent increase in income as well as the adjustment in corporate income taxes which became effective late last year.

Without the withholding taxes, the DOF said the total net corporate income tax actually went up even more dramatically from P3.3 billion to P6.6 billion, an increase of over a hundred percent.

With the increase in the corporate tax rate from 32 to 35 percent, the DOF said the projected incremental increase in the corporate income tax revenues was nine percent.

Factoring in inflation as well as the tax rate increase, officials said total collections are expected to increase by only 17.4 percent. The difference was made by rising corporate profits early in the year.

Since the first quarter is seasonally slow, officials said corporate incomes would surge faster in the peak months of June and December, thus resulting to even higher corporate income tax collection.

This year, total revenues are projected to reach P978.844 billion and P75 of this would be incremental revenues from the tax reform packages passed by Congress in 2005.

These reforms include the adjustment in corporate income taxes, the lifting of various tax exemptions previously enjoyed by sectors such as oil, petroleum and professional services.

Government revenues are expected to hit P1.655 trillion by 2010, rising to about 17.6 percent of gross domestic product (GDP) from 15.2 percent in 2005.

Projections made by the Department of Finance (DOF) showed that government revenues would increase by an average of 17 percent per year in the next five years due mainly to the rise in tax rates.

http://www.philstar.com/philstar/NEWS200605010702.htm

JAMAICUS

May 2nd, 2006, 11:12 AM

Govt collects more VAT,
excise taxes in first quarter

By Likha Cuevas

THE Philippines collected more taxes from tobacco products and the value-added tax (VAT) scheme in the first quarter, according to data from the Department of Finance.

For the first three months of this year, the government collected P14.2 billion in excise taxes, 5.2 percent higher than the P13.5 billion collected last year.

Sin tax collections, or excise taxes levied on tobacco and alcoholic products, accounted for P10.9 billion, or 76.8 percent, of the total amount collected in the first quarter.

The government collected from cigarette manufacturers some P6.5 billion, up by 66.7 percent from last year.

Collections from alcoholic product manufacturers, however, went down by 4.3 percent to P4.4 billion year on year.

Two months ago, the Bureau of Internal Revenue (BIR) announced that it aims to raise P48.042 billion in excise taxes on tobacco and alcoholic products this year. This is 18 percent higher than the P40.695 billion in actual collections last year.

DOF data showed that tax collections from alcoholic products were set at P19.672 billion, 15.76 percent higher than the P16.994 billion generated last year. For tobacco products, the government aims to raise P28.370 billion, or 19.7 percent more than last year’s P23.701 billion. The targets incorporated incremental gains expected from a new law that raised excise tax rates starting January last year.

Excise tax collections from petroleum products, meanwhile, dropped by 36.4 percent to P2.8 billion from last year’s P4.4 billion. According to the finance department, the government lowered its collection target for petroleum products to incorporate measures implemented to mitigate the impact of high world oil prices.

Automobiles and other products accounted for P500 million of the total amount of excise tax collected for the first quarter. This was a 16.7-percent decline over last year’s P600 million. For automobiles alone, the government aims to collect P281 million, or 13.3 percent higher than the P248 million generated last year.

The Arroyo administration earlier cut its excise tax collection target this year by at least half to P8.386 billion from P18.708 billion in actual collections last year. The DOF said earlier that the target was lowered since the increase in the VAT would compensate for the cut in excise tax revenues.

Total VAT collections in the January to March period grew by 57.5 percent to P32.3 billion from P20.5 billion in the same period last year. This quarter’s collection was 11 percent higher than the P29.1-billion target set by the government.

http://www.manilatimes.net/national/2006/may/02/yehey/business/20060502bus1.html

dancethingy

May 3rd, 2006, 06:39 AM

I know there are super smart economists on this forum, can anyone enlighten me if the recent 40B peso labor day proposal will actually create a positive dent on the lives of Filipino laborers. Also, what are the chances of a P125 wage hike actually happening?
Thanks all

Peaceful rallies boost market

The Philippine Star 05/03/2006

Stock prices rose 1.55 percent yesterday to the highest close in almost seven years as investors were reassured by relatively peaceful Labor Day protests, dealers said.

It was feared that mass protests by leftist groups on May 1 would result in violence but the day passed without major incident.

The peso also reacted positively by gaining 18 centavos to close at 51.60 to the dollar compared to Friday’s close of 51.78.

The Philippine Stock Exchange composite index added 35.11 points to 2,305.64 after trading between 2,270.53 and 2,313.74. This was the highest closing level since Aug. 5, 1999 when the main index settled at 2,348.24.

"Investors were relieved that contrary to expectations, Labor Day ended without any violence," Jose Vistan of AB Capital Securities Inc. said.

Dealers said they feel that most shares have been overbought and profit taking will likely emerge soon.

"Investors may start to cash in once first-quarter results start coming out," Vistan said, adding the earnings may have been hurt by higher taxes and rising commodity costs.

Meanwhile, the peso reportedly received a boost after Finance Secretary Margarito Teves said Moody’s Investors Service had agreed to reconsider its negative outlook on Philippine debt.

"Moody’s is willing to reconsider as long as we meet the target for this year and meet the value-added tax (VAT) collection target," Teves told reporters.

According to Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., the foreign exchange market had a "good two-way liquidity" with inflows more than enough to cover demand for dollars.

Inflows, according to Tetangco, were mostly from overseas Filipino workers as well as portfolio investments. "The demand was seen from oils and power companies," he said. "Plus the fact that the peso was also helped by firmer regional currencies."

Job well done

President Arroyo congratulated all sectors yesterday for the peaceful commemoration of Labor Day on Monday even as some protesters again pressed for her ouster and slammed the ban on demonstrations in Mendiola.

"We congratulate our workers for the meaningful and peaceful celebration of Labor Day, which reflects the political maturity of the Filipino upholding unity and hard work as the solution to the nation’s problems, not self-interest and incessant strife," Mrs. Arroyo said in a statement.

She said greater political stability and economic growth will push forward the welfare and benefits of Filipino workers.

"Payback time is here and we call on our people to further unite to stamp out political noise and elevate our common struggle against poverty, corruption and terror that are the bane of a just and progressive social order," she added.

The President also expressed appreciation for the enlightened stand of workers’ groups against destabilization attempts, saying that it speaks of the firm partnership between the government and the labor sector in improving the climate for growth, investments and jobs.

"I laud the Philippine National Police (PNP) and the Armed Forces of the Philippines (AFP) for their vigilance beside the people in maintaining law and order amid persistent threats of political mayhem," she said.

Press Secretary Ignacio Bunye said the designation of more freedom parks was a welcome development for both government and civil society.

"This ensures peaceful assemblies without disruption on the daily routines of a wide segment of the urban population," Bunye said.

He emphasized that freedom parks should not be viewed as a restriction of the right to free expression but guarantees that national and local governments would always uphold that right.

But left-wing workers from the Kilusang Mayo Uno (KMU) vowed to hold even bigger anti-government rallies later this month and in June.

Aside from demanding a wage hike, workers will protest the expanded value added tax (EVAT) and moves to change the constitution from a US-style presidential system to a parliamentary one, which KMU head Elmer Labog said would extend Mrs. Arroyo’s power.

Wage hike, not fringe benefits

In a nationally televised address on Monday, the President didn’t announce any wage increases but presented a package of benefits for workers, including scholarships, income tax exemptions for minimum-wage earners, and government health insurance and pension plans for farm laborers, fishermen, street hawkers and motorcycle drivers.

Opposition leaders at the House of Representatives, however, said that the P40 billion worth of non-wage benefits that Mrs. Arroyo gave to the working class are largely meaningless to most workers.

Minority Leader Francis Escudero told reporters that the package was taken from programs that are already in the pipeline and packaged as a new grant.

He cited that nearly half of the huge amount to be given to government personnel in terms of a salary increase is already in the 2006 budget, which the House approved last month.

"It is not a new grant as the administration would like to make it appear," he said.

He also clarified that what state employees would receive is an increase in monthly allowance, not a salary increase.

Escudero branded the President’s announcement as "misleading and deceptive." Part of the P40-billion package, he said, will also come in the form of scrapping penalties and surcharges on delinquent housing loans granted by the Social Security System (SSS) and Government Service Insurance System (GSIS).

But he maintained that these two pension funds should condone penalties and surcharges on loans without the President telling them what to do so and making it appear that workers owe her a debt of gratitude.

"These pension funds are like usurers. They collect not only interests and penalties and surcharges while losing billions of contributions from members in questionable investments such as the P14 billion they sank in Equitable-PCI Bank that is now worth only about half of that original investment," he stressed.

Besides, he added, a worker with no loan from the SSS or GSIS is not a beneficiary of the so-called non-wage benefits.

The opposition leader urged Mrs. Arroyo to support the proposal in the House for a P125-across-the-board increase in the daily minimum wage "if she really wants to help workers."

Like Escudero, detained Rep. Crispin Beltran of the militant party-list group Anakpawis described the grant of non-wage benefits as deceptive.

"The President’s Labor Day package will not make a dent in the lives of the toiling masses. For example, it will not uplift the welfare of millions of contractual workers, whose numbers are increasing by the day," Beltran said in a statement.

As for the President’s statement that she is allotting P100 million for the rehabilitation of the Philippine General Hospital, the former militant labor trader-turned lawmaker said it is the government’s duty to provide health services to the people.

"This package seems to me a false and deceptive gesture of charity. What workers need are substantial wage increases, not fringe benefits," he added. — AFP, AP, Aurea Calica, Jess Diaz

chixbebe

May 3rd, 2006, 07:20 AM

By Maricel E. Burgonio, Reporter
http://www.manilatimes.net/national/2006/may/03/yehey/business/20060503bus2.html

MERRILL Lynch, the world’s largest retail stock brokerage firm, expects Philippine economic growth to be broadly stable, while the national government cuts its debt substantially this year.

In a recent report, Benoit Anne, Merrill Lynch strategist, said the prospects for economic growth are favorable, with the Philippines seen expanding 5 percent this year from 5.1 percent last year.

Anne said buoyant private consumption and the dynamic services sector will remain the main drivers of economic expansion. Also, the acceleration of government spending should also support economic activity.

Despite the upbeat note, the outlook for the country’s exports sector will be uncertain, the report said.

The Development and Budget Coordinating Committee (DBCC) earlier said the economy, as measured by the gross domestic product (GDP), would grow from 5.5 percent to 6.2 percent this year.

The Merrill Lynch report said the Philippines is also likely to bring down its debt by at least 7 percentage points this year to about 65 percent of GDP from 74 percent last year. The creditor community said a 60-percent debt-to-GDP ratio is considered sustainable for a country like the Philippines.

The stronger peso and improvement in public-sector debt will contribute to the decline in the national government’s debt this year, Merrill Lynch said.

Anne said the external sector is likely to remain strong, largely due to the overseas Filipino workers’ remittances and foreign direct investments.

Merrill Lynch affirmed its overweight recommendation on the Philippines on the back of the improving fiscal position and macroeconomic fundamentals.

“As the strong macroeconomic story continues to unfold through out the year, we think there is more upside for the Philippine debt,” the report said.

“We think the fiscal outlook is strong for 2006 and is likely to translate into declining borrowing needs,” it added.

The government has programmed to reduce its budget deficit to P125 billion this year.

Merrill Lynch is set to conduct an investment mission from May 24 to 26 to review the Philippines’ economic performance, fiscal position and political situation.

The investor team, which will be headed by Anne, will fly in 10 high-profile US and UK investor clients with strong interest in investing in the Philippines.

dancethingy

May 3rd, 2006, 07:54 AM

OMG a great review.

beads_strawberries

May 3rd, 2006, 08:07 AM

The government is now working on a win-win solution to cover the proposal on the workers notwithstanding the situation of the employers who will also be affected if wage hikes will be implemented.

Non-wage benefits were unveiled by the president such as scholarships, tax exemptions, and pension plans. This would be helpful especially to those ordinary employees.

philwily

May 3rd, 2006, 08:51 AM

^^ - I watched a report last night that there will be a wage increase... but staggered. Can anyone verify? Or will it be all non-wage benefits? Thanks! :)

heathcliff

May 3rd, 2006, 08:58 AM

With scholarships, income tax exemptions for minimum-wage earners, and government health insurance and pension plans for farm laborers, fishermen, street hawkers and motorcycle drivers, one can see that it would definitely have a positive impact on the lives of poor Filipinos.

I think that rather than constantly whining about what is lacking in President Arroyo's actions towards poverty alleviation, the opposition lawmakers should instead help the president to supply the deficiencies. They should pass legislation that will help improve the people's lives.

dancethingy

May 3rd, 2006, 03:02 PM

^^^ I think the opposition is completely dysfunctional. i don't think they read their job description before running for congress.

BIR likely met April collection goal of P79B
By Clarissa Batino
The Philippine Star 05/03/2006

The Philippines, Asia’s biggest seller of overseas debt, "mostly likely" met its April tax collection target of P79 billion, Bureau of Internal Revenue Commissioner Jose Mario Buñag told reporters yesterday.

While the bureau collects 70 percent of government revenue, it’s "too early" to estimate the budget surplus or deficit for the month, Finance Secretary Gary Teves said at the same press conference. The government, which had a P67.6-billion deficit in the first quarter, aims to narrow its deficit to P125 billion this year from P146.5 billion last year.

Rising tax collections in April – the deadline for paying previous-year income taxes – may help the government meet its goal of ending deficits by 2008. The tax bureau collected P62.9 billion in April last year, a 19-percent gain from 2004.

Moody’s Investors Service Inc. may change the "negative" outlook on the Philippines’ junk debt rating to "stable," Teves said. Moody’s has a B1 rating on Philippine debt, four levels below investment grade and lower than the ratings of Standard & Poor’s and Fitch. It maintained its negative outlook on the rating last month. In February, S&P and Fitch raised their outlooks to stable, citing the increase in the value-added tax and the expansion of its coverage.

"Moody’s is willing to reconsider changing the negative outlook to stable for as long as we’re able to meet targets, especially of the expanded value-added tax," Teves said.

A negative outlook indicates a ratings company is more likely to lower the rating itself.

The Bureau of Customs exceeded its target of P16 billion in April by at least P300 million, its chief Napoleon Morales said at the press conference.

The Philippines will save as much as $32 million in interest payments when it completes a planned buyback of $411 million of so-called Brady bonds, Teves said. The government last month said it would complete the purchase by June. The government has $774 million of Brady bonds maturing through 2017.

The Philippines sold $4.3 billion of the bonds from 1990 to 1992, part of the reorganization of developing-country debt orchestrated by then US Treasury Secretary Nicholas Brady.

rockwell baller

May 4th, 2006, 08:42 AM

yeah the opposition should make a move to rather than just speaking blah-blahs and inviting rallies! they should sit down on their offices and do work make a solution! hope that the economic growth will still be stable if and only if the vat on petroleum products will be cut-oof or lowered. in the news they said that the government will lose a lot of money if they cut it. and they base it on the level or amount of the crude oil in the international market. and another one the peso is quite unruly now the chances of the P50 level is quite far.

OtAkAw

May 4th, 2006, 08:50 AM

^^I don't know what the opposition is playing at. A year more with a reisting president, the opposition will soon face death and decay! Wala na silang maipoprove eh! Baka next time gumawa sila ng sex video ni GMA para lang sabihing ipatalsik siya!

heathcliff

May 4th, 2006, 11:47 AM

^^^ I think the opposition is completely dysfunctional. i don't think they read their job description before running for congress.

They are there supposedly to act as check and balance to the executive, but it seems that all they know is just to check, without the balance part. They should be more productive and complement the president's efforts with their own, if good governance is to be promoted.

JAMAICUS

May 4th, 2006, 03:04 PM

Thursday May 4, 4:27 PM
Philippines sees Q1 GDP exceeding 5.5 pct
MANILA, May 4 (Reuters) - The Philippine economy could have grown faster than 5.5 percent in the first quarter compared to the same period last year as the La Nina wet weather pattern boosted agricultural output, the government said on Thursday.
"Hopefully, it will exceed it (5.5 percent) because agriculture is at 4.8 percent," Economic Planning Secretary Romulo Neri told reporters, referring to farm sector output in the first quarter.

Neri said he was also confident that the country could achieve its 2006 gross domestic product growth aim of 5.5-6.2 percent. GDP expanded 5.1 percent in 2005 from 2004 and grew 6.1 percent in the fourth quarter from a year earlier.

Neri said the government had been expecting the farm sector, which accounts for a fifth of the country's GDP, to grow 4 percent in the first quarter but above-average rains sparked by La Nina had boosted rice production.

The government will release the official farm sector performance on May 11.

The farm sector grew 3.3 percent higher in the fourth quarter compared to a year earlier.

http://asia.news.yahoo.com/060504/3/2k2m5.html

JustHorace

May 4th, 2006, 03:07 PM

I like this thread because it's mostly good news...and it's the ECONOMY thread we're talking about. Our future is really shaping up...

JAMAICUS

May 4th, 2006, 04:02 PM

Govt interest payments seen
to decline starting year 2007

By Likha Cuevas

BUDGET Secretary Rolando Andaya Jr. announced that government’s interest payments for 2007 will decrease, affirming that “next year will be the turning point” because the annual debt service will decline from thereon.

Andaya has predicted that debt payments next year will come down to P316.83 billion from this year’s P340 billion. He said the debt-service level in 2007 will be 4.7 percent of the gross domestic product (GDP), which is an improvement over the 5.7 percent of output for 2006.

He ascribed the decrease in interest spending to the improvement in the fiscal position of the government. Because of the government’s good cash position, treasury bills and bonds rates dropped the past few months (see related story on this page), which resulted in lower interest rates.

Of the total interest payments, he said P199.21 billion will go to domestic obligations and P117.62 billion to foreign lenders.

According to the Department of Budget and Management (DBM), the interest payment schedule was based on the forecast of P52 to a dollar exchange rate in 2007.

Andaya also said that next year’s interest payments will amount to 29 percent of the national budget, which has an “indicative ceiling” pegged at P1.36 trillion. Meanwhile, the interest payments for this year are 31 percent of the total disbursement program.

The DBM’s planned allocation for interest payments will be a decrease of 6.8 percent, which is an improvement after four years of annual double-digit growth in debt service. According to the budget department, the interest payments for this year are P13.4 percent higher than what was spent in 2005.

Time-bound passing of bills

In a related development, Finance Secretary Margarito Teves said that passing of bills, especially on economic and fiscal reforms in both legislative houses should be “time-bound.” He suggested that to prevent delays in the implementation of such laws, the Senate or Congress should be given a time frame, and if the lower or upper house goes beyond that, the bills would be deemed approved.

“We are government employees paid to do the job by taxpayers and we should do jobs at least cost,” Teves said. “We should try to come up with good pieces of high-quality legislation within a reasonable timeframe.”

Teves emphasized that legislators could come up with a law to make passing of bills time-bound.

Currently, there are a number of fiscal and economic bills pending at Congress, and these include the fiscal responsibility bill, the simplified net income tax system, and the fiscal incentives rationalization bill.

Teves, former representative of Negros Oriental, also mulls the removal of the country’s economic provisions in the Constitution. “Many of our economic provisions are embodied in our constitution,” he said, purporting that having the economic provisions in the charter constraints the government in making decisions on its fiscal and economic reforms. He pointed to the countries that have their economic provisions outside of their respective constitutions. “We need to have a liberal climate now,” Teves said.

He is in India to attend the 39th Annual Asian Development Bank Conference.

http://www.manilatimes.net/national/2006/may/04/yehey/business/20060504bus1.html

mygz14

May 5th, 2006, 05:26 AM

Philippine Stock Exchange Update: As of 05-May 2006, 11:18:18

PSEi Value
2,453.57

PSEi Change
83.28

PSEi % Change
3.5135

mygz14

May 5th, 2006, 06:02 AM

Philippine Stock Exchange Close: As of 05-May 2006, 12:10:02

PSEi Value
2,470.24

PSEi Change
99.95

PSEi % Change
4.2168

Previous Close:
2,370.29

PSEi Close, 5-April, 2006:
2,197.90

Monthly Change
272.34

Monthly % Change
12.3909

It resisted the 100-point gain....hehehehe :D

Peso Trading Mid-Day
Average: 51.50

normandb

May 5th, 2006, 07:00 AM

^^ hayyy.. Kanina ko pa nga sinusubaybayan yan pag bukas pa lang kaninang 9.30am ng PSE 60points agad tapos pataas na ng pataas hanggang sa mag-close ito sa 2,470.24.

Let' see how the PSE traded today compare to other stock exchange in the region.

PSE: 2,470.24 +99.95 up by 4.2168%
KLCI: 957.85 +3.69

SET: 768.22 -6.22 down by 0.80%
ST: 2,634.40 -10.30
JSX: 1474.19 -10.13

mygz14

May 5th, 2006, 07:19 AM

actually, when i w0ke up, i was surprised...seeings 0ther markets in the red, it was a surprised that the index was in the green, and really 0utperformed 0ther markets. I h0pe we bag title 0f being the best performing currency and st0ckmarket this year. :D Singap0re is just ahead...hehehehe :D

mygz14

May 5th, 2006, 07:21 AM

Shares close up; index posts biggest 1-day gain in 5 yrs

(UPDATE) SHARE prices closed sharply higher, with the main index posting its biggest single-day gain in over five years, supported by strong foreign buying interest, dealers said.

It was the fourth session in a row that the market has risen and the main index now stands at its best level since July 1999.

Dealers said sentiment is being driven by optimism for strong first quarter results from key corporates as well as some recent positive economic and fiscal data.

The composite index closed up 99.95 points or 4.22 percent at its day's high of 2,470.24. It is the index's best finish since closing at at 2,488.62 on July 22, 1999.

The previous biggest single day rise was on Jan 22,2001 when it surged 255.13 points or 17.56 percent after president Joseph Estrada was ousted from power.

The main index was up 8.9 percent from last week and has gained 17.9 percent since the start of the year.

The broader all-shares index ended up 44.97 points at 1,516.72.

Gainers swamped losers 59 to 42, while 50 stocks ended unchanged.

Volume totaled 3.04 billion shares worth 4.38 billion pesos.

The central bank kept its benchmark overnight interest rates unchanged at Thursday's policy meeting amid easing inflation.

Latest government data showed that inflation had slowed to 7.1 percent in April from 7.6 percent in March as the rise in prices of food and other items eased. The figure was at the lower end of the central bank's forecast range of 7.0-7.7 percent and below market estimates.

Meanwhile, Economic Planning Secretary Romulo Neri on Thursday said the economy may have expanded by more than 5.5 percent year-on-year in the first quarter, aided by a stronger-than-expected performance from the farm sector.

"The global arena is so awash with cash and so is the local market. And right now, the best hedge to inflation seems to be the stock market," First Grade Holdings managing director Astro del Castillo said.

Dealers however expect profit-taking to emerge on Monday with valuations of many stocks viewed as technically over-stretched at present levels.

"Many people who entered the market before this run-up have made loads of money and they're just waiting [to cash in gains]," Mark Alan Canizares, an analyst at Citiseconline said.

Bank of the Philippine Islands was the top-traded stock, up 4.00 pesos or 6.20 percent to 68.50 on 7.1 million shares. Its affiliate Ayala Land Inc ranked closed up 1.50 pesos or 11.32 percent at 14.75 on second top volume of 31.59 million shares.

Their parent Ayala Corp rose 27.50 pesos or 6.83 percent to 430.

The central bank's continued stable monetary policy boosted interest in banking and property stocks, dealers said.

Philippine Long Distance Telephone Co rose to a fresh record-high, ending up 65 pesos or 3.16 percent at 2,125 on 200,290 shares. Its rival Globe Telecom Inc advanced 20.00 pesos to 985.

Property developer Filinvest Land Inc was up 0.14 at 1.66, while Megaworld Corp gained 0.04 to 1.64.

Petron Corp rose 0.30 to 4.70.

San Miguel A shares, open to local investors, were up 0.50 at 64.50, while San Miguel B shares, available to foreign and local investors, gained 2.00 pesos to 84.

(1 dollar = 51.50 pesos)

www.inq7.net

dancethingy

May 5th, 2006, 08:59 AM

3 big infra projects costing P21.9 billion given go-signal
spacer

By EDU H. LOPEZ

The Investment Coordination Committee (ICC) has approved three major infrastructure projects worth P21.9 billion.

ICC also gave the go-signal for the implementation of the Pinatubo Hazard Urgent Mitigation Project (PHUMP) Phase III, Tulay ng Pangulo para sa Magsasaka—A Bridging Project for Agrarian Reform Communities, and Support for Strategic Local Development Investment (S2LDI).

The P4.1 billion PHUMP-III project aims to control flooding in the Porac-Gumain River by excavating and dredging several portions of the river and its tributaries, constructing a new diversion channel, raising principal roads, rehabilitating and constructing bridges, and dredging nearby rivers.

The PHUMP-III is part of the overall engineering intervention works whose ultimate objective is to rehabilitate affected areas devastated by the Mt. Pinatubo eruption, restore conditions to pre-eruption levels, and provide the necessary facilities to protect lives and properties from lahar deposition and flooding.

The project is proposed for possible Japan Bank for International Cooperation (JBIC) funding under the 27th Yen Loan Package.

It will be implemented by the Department of Public Works and Highways (DPWH) between 2007 and 2011.

Meanwhile, the P11.7-billion Tulay ng Pangulo para sa Magsasaka - A Bridging Project for Agrarian Reform Communities (ARCs) hopes to increase the productivity and income of Agrarian Reform Beneficiaries (ARBs) by constructing bridges in ARCs.

The project involves the construction and installation of 458 double-lane, pre-fabricated steel bridges with a total length of 11,963 lineal meters.

Some 1,800 lineal meters of single emergency lane bridges will also be added for disaster mitigation. It will link various ARCs to the economic mainstream and open up development potentials, which is in line with President Arroyo’s 10-point agenda of job creation and decentralized growth. The project will be implemented by the Department of Agrarian Reform (DAR).

The P6.0 billion S2LDI, the cost of which includes a possible grant equivalent of P410 million, is a relending program for Local Government Units (LGUs) to help facilitate access to viable financing options for the construction, upgrading and rehabilitation of urban infrastructure.

It also aims to assist LGUs in supporting local revenue enhancement programs.

The relending program is targeted primarily for LGUs assisted by the World Bank’s Cities Development Strategy (CDS) Project in the preparation of local plans and investment programs.

LGUs not assisted by the CDS may, however, apply for financing of projects in their local investment programs. The project will be implemented from 2007 to 2011.

NPC posts P14-B savings in 2005
spacer

State-owned National Power Corporation (NPC) reported that it saved as much as P14.022 billion last year; primarily due to the economic load dispatch of its power plants.

The company noted that P9.884 billion was trimmed down from its operating costs due to economic load dispatching; and while the other bulk of savings amounting to P3.834 billion came from deferment of capital expenditures.

"NPC saves an estimated P14 billion in 2005 following the continued implementation of stringent cost-cutting measures, including economic load dispatching and the prioritization of capital expenditures," the company has noted.

With the optimized use of local coal thru blending with imported supply, this likewise resulted in P44.286 million cut in the power firm’s costs.

Savings have further been achieved from the adoption of electronic bidding for supply and equipment, to the tune of P60.995 million; while cost-cutting in operating expenses logged P199.223 million in additional savings.

The power firm last year was reported to have wiped out its previously registered huge losses; and managed to put in modest pre-audited income of P16 million.

Given, however, that it still needs to settle some enormous indebtedness; including bullet repayments amounting to 0 million, power firm officials stressed that they cannot totally set themselves free yet from acquiring new set of loans.

Its successor-company, the Power Sector Assets and Liabilities Management Corporation (PSALM) sounded off that it would still need to secure new loans for NPC this year; but the level of borrowings is expected to soften.

NPC president Cyril C. del Callar noted that the diversification strategy in the country’s power mix worked well in their bid to significantly bring down operating costs - especially in reducing oil consumption to run generation plants.

"The new generation mix also made available financial resources that we will be able to use to implement projects," he said.

At the same time, he noted that the power firm’s move to utilize more renewable power sources, as well as indigenous fuel sources, "has lessened our dependence on imported fuel oil and at the same time, help assure the country of its security of supply."

He added that "having a stable power supply in the long-term results to sustained economic growth. This also increases our country’s competitive advantage in the international market, giving us a solid foundation to pursue our own national development goals." (MMV)

Economy likely grew 5.5% in Q1
spacer

The Philippine economy could have grown faster than 5.5 percent in the first quarter compared to the same period last year as the La Niña wet weather pattern boosted agricultural output, the government said on Thursday.

"Hopefully, it will exceed it (5.5 percent) because agriculture is at 4.8 percent," Economic Planning Secretary Romulo Neri said, referring to farm sector output in the first quarter.

Neri said he was also confident that the country could achieve its 2006 gross domestic product growth aim of 5.5-6.2 percent. GDP expanded 5.1 percent in 2005 from 2004 and grew 6.1 percent in the fourth quarter from a year earlier.

Neri said the government had been expecting the farm sector, which accounts for a fifth of the country’s GDP, to grow 4 percent in the first quarter but above-average rains sparked by La Niña had boosted rice production.

The government will release the official farm sector performance on May 11.

The farm sector grew 3.3 percent higher in the fourth quarter compared to a year earlier.

The National Economic and Development Authority (NEDA) is optimistic of a higher growth this year with the economy in good shape.

The government has earlier predicted that the agriculture sector would be growing at 4 percent with higher area harvested and yield, industry at 5.1 percent, and services at 6.7 percent.

Bureau of Agricultural Statistics (BAS) had forecast palay and corn to post robust growth of 5.9 percent and 33 percent for the first semester, respectively, with a strong external demand of high value crops like banana, coconut, pineapple, mango, coffee, and abaca.

The Philippines had been exporting pineapples to Australia in September 2005 after complying with the Australian Quarantine Regulations. While the country received higher US sugar quota in October last year, banana and pineapple plantations are expanding in Mindanao.

The price of sugar in the world market is also expected to rise on ethanol demand and as Europe holds back sugar production.

NEDA is also hoping that the fishery sector would sustain its 6.0 percent expansion given the bright outlook of the Bureau of Fisheries of Aquatic Resources (BFAR) especially on aquaculture due to good weather conditions and strong demand for seaweeds.

The industry sector was expected to grow by 5.1 percent, driven by the upbeat interest in mining. Geological estimates showed that 30 percent of the country’s total land area is a potential metallic mineral zone, with mining permits presently covering only 1.4 percent.

NEDA has estimated that nine million hectares more of mineralized areas have yet to be developed.

mygz14

May 5th, 2006, 09:51 AM

I hope the events on July would not hamper 0ur gr0wth. :( Alth0ugh we expect it t0 happen.

amras

May 5th, 2006, 10:46 AM

why? what will happen in July?

normandb

May 5th, 2006, 10:50 AM

cha-cha

rustyboi

May 5th, 2006, 01:32 PM

Check this out...
http://www.pse.com.ph/html/NewsRoom/pdf/PR-calpers.pdf

CalPERS' study confirms higher score for RP as investment site
May 04, 2006

Highlights:

+ In its latest review, it assigned to the Philippines an average score of "2.13" or 0.13 of a percentage point higher than the "2" threshold rating last year.

+ The Philippines moved up to 14th in ranking among the 27 emerging markets from 18th in the previous year.

+ The Philippines scored the second highest rate of improvement in scoring from Wilshire beating Asian neighbors like Indonesia and Malaysia which each got a score of "2".

+ 8 countries failed to get passing scores from Wilshire including Egypt, Pakistan and China.

+ The Philippine Stock Exchange helped convince Wilshire by correcting misconceptions about the country's foreign investment rules. "We were successful in arguing that contrary to previous conclusion, the general rule in the Philippines is that 100-percent foreign investment is allowed," Mr. Lim said. "The 40-percent foreign ownership limitation is more of an exception rather than a general rule."

mygz14

May 5th, 2006, 02:08 PM

I was talking ab0ut the impeachment... :D

JAMAICUS

May 5th, 2006, 05:09 PM

why? what will happen in July?

The one year impoeachment limit would be over. Once July hits, anyone can file for impeachment once again...

mygz14

May 6th, 2006, 07:32 AM

The 0pp0siti0n are saying that they will file it 0n June 28, 2006.

JAMAICUS

May 7th, 2006, 12:50 PM

Gov't Q1 debt payments 64% over target
Posted: 5:25 PM | May 07, 2006

THE PHILIPPINES, Asia's largest sovereign debt issuer after Japan, overshot its debt payments program in the first quarter by 64 percent after it embarked on domestic bond swap deals, official documents showed.

The government spent a total of 279.364 billion pesos in interest and principal debt payments from January to March against a programmed level of 170.218 billion pesos, finance department documents obtained by reporters showed.

In February, the government swapped 111 billion pesos worth of new local bonds with maturities of three, five and seven years to retire more than 90 illiquid domestic debt issues, stretch its average debt maturity by a year to 5.7 years and attract more foreign investors in the local debt market.

The government also plans to redeem 411 million dollars worth of expensive Brady bonds issued in the early 1990s when they become callable next month to cut back on its foreign debt.

The Philippines' principal debt payments in the first quarter reached 175.542 billion pesos, 136.6 percent higher than the programmed payments of 74.201 billion pesos for the period, according to the documents.

Interest payments amounted to 103.822 billion pesos in January-March, 8 percent higher than the programmed level of 96.017 billion pesos.

Both interest and principal payments on domestic debt exceeded the programmed level in the first quarter, while interest and principal payments for foreign debt were below target.

The central government, with total debts of around 76 billion dollars, is dependent on foreign and local borrowings to fund its budget deficit and pay off maturing debt. It has adopted a debt management scheme that includes cutting back on foreign debt and retiring costly debt issues whenever possible.

Government sources said last week the Philippines plans to retire up to four billion dollars worth of sovereign foreign currency bonds, mostly with maturities of less than five years, by replacing these with new debt issues with longer maturities.

But the debt retirement plan would likely be done in various tranches, the sources said.

The Philippines, which spends about a third of its budget on interest payments alone, has said it expects to cut its debt-to-GDP ratio to 68 percent this year from 72 percent in 2005.

It also expects to reduce its budget deficit to 125 billion pesos, or 2.1 percent of GDP, from 146.5 billion pesos, or 2.7 percent of GDP, in 2005.

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=05&dd=07&file=1

mygz14

May 8th, 2006, 04:38 AM

STOCK MARKET UPDATE

PSEi Value
2,583.43

Change
113.19

% Change
4.5821%

Update as of 11:02:49

normandb

May 8th, 2006, 05:15 AM

STOCK MARKET UPDATE

PSEi Value
2,583.43

Change
113.19

% Change
4.5821%

Update as of 11:02:49

if it will continue for two consecutive weeks the index will achieve the pre-crisis level where it averaged at 3300 :D

As of this posting, it is now up by 122.89 pts. It's too early to tell, we still have one hour to go before the trading ends but it will surely be better than last fridays closing :)

BTW, i found this chart on the internet.
http://www.mexi.com/ECO/IMA/image059.gif

mygz14

May 8th, 2006, 05:28 AM

http://i24.photobucket.com/albums/c3/mygz14/untitled.jpg

Notice that the lowest points of the market were during the times that political activities were at its peak like in July 2005 and February 2006. If the impeachment will be filed, let it be in the most peaceful manner. If the opposition losses again, do not protest. Accept their defeat.

:cheer::cheer::cheer::cheer::cheer:

Chart was taken from
bloomberg.com

http://quote.bloomberg.com/apps/cbuilder?ticker1=PCOMP:IND

mygz14

May 8th, 2006, 05:38 AM

STOCK MARKET UPDATE

PSEi Value
2,601.32

Change
131.08

% Change
5.3064%

Update as of 11:29:57

It already breached the 2,600 resistance level.

Straits Times Index (Singapore): as of 11:37 2,662.63

DoggMann

May 8th, 2006, 05:52 AM

http://www.mb.com.ph/BSNS2006050863347.html

Local stock market poised for a long bull run — PSE

By JAMES A. LOYOLA

The Philippine Stock Exchange believes the local stock market is poised for a long bull run.

PSE President Francis Lim said the dramatic rise in stock prices, especially during the last four trading days, reaffirms investors’ confidence on the Philippine economy.

"The economic reforms that the government is putting in place, along with reforms that we at the PSE are implementing, have started to bear fruit," Lim declared.

He believes favorable developments in the political front, like the peaceful holding of Labor Day celebrations, have convinced investors of our political maturity and sobriety.

"Our show of political maturity, combined with sound economic fundamentals, strong corporate performance and more transparent stock market operations, will definitely fuel a further surge in stock prices," Lim added.

"I believe we have the beginnings here of a bull run, provided, of course, that we maintain all these factors conducive to business," he said.

The PSEi, which is the overall barometer of stock price movements at the PSE, closed Friday at 2,470.24 points, or 99.95 points higher than its level a day before. It was the best finish of the index after it reached 2,488.62 points on July 22, 1999.

Based on PSE records, the market registered today the highest single-day increase in points of the main index since January 22, 2001 when it went up by 255.13 points. Percentage-wise, the 4.22 percent market increase today was the highest single-day surge of the index after it went up by 4.89 percent on June 17, 2003.

The Philippines earlier earned a higher score in a crucial review, which was commissioned by the California Public Employees’ Retirement System (CalPERS) among 27 emerging markets.

CalPERS, which is acknowledged as the biggest US pension fund, earlier commissioned Wilshire Associates, one of the world’s leading consulting and management firms, to conduct the study and guide the pension fund’s flow of investments to 27 emerging markets.

Wilshire has recently confirmed that, in its latest review, it assigned to the Philippines an average score of "2.13," or 0.13 of a percentage point higher than the "2" threshold rating that Wilshire gave to the Philippines last year.ok

mygz14

May 8th, 2006, 07:47 AM

STOCK MARKET CLOSE
8-May 2006

PSEi Value
2,589.17

Change
118.93

% Change
4.8145%

c0kelitr0

May 8th, 2006, 07:51 AM

^^ di ba alas 3 pa nagsasarado ang stock market?

chixbebe

May 8th, 2006, 08:59 AM

The Institute of International Finance’s latest country report on the Philippines showed that despite the uncertain political conditions, the local economy, accounts and balance of payments "have remained resilient."

According to the April report, "the government intends to preserve the progress recently made on fiscal correction and the central bank has brought money growth under control." It said that the maintenance of a current account surplus and a pickup in private capital inflows would continue to boost the country’s dollar reserves from $ 18 billion in 2005 to almost $ 21 billion by end-April this year.

Filipino migrant workers’ dollar remittances remain the supporting sector for the economy and BoP. Remittances are expected to amount to $ 13 billion by the end of 2006 while the BoP will close with a surplus of $ 1.6 billion or better.

"Further strong growth in workers’ remittances should compensate for an import-led increase in the trade deficit to keep the current account surplus around $ 2.5-3 billion in 2006 and 2007, about two percent of GDP (gross domestic product)," IIF’s Mitsutoshi Adachi said. For 2006 the Bangko Sentral ng Pilipinas is projecting a trade deficit of $ 10 billion from $ 9 billion in 2005.

However the "lack of clarity on the future course of political conditions" still presents a risk to the financial markets. Still, the strong BoP, smaller budget deficit, slowing inflation, a downward bias to interest rates and stable exchange rate – all contribute to a resilient economy.

"The attempted coup in February was another reminder of the underlying political fragility that has plagued the country for many years. While the coup was quickly put down by the senior military command, President Arroyo’s persistently low popularity perpetuates the political uncertainty," Adachi said.

He adds that President Arroyo "lacks the mandate to bolster public governance, pursue further tax reform needed for the government to provide lagging public services and chart a course of development that resuscitates investment and exports."

"Nevertheless," said Adachi, "the recent progress made correcting the large fiscal imbalance and controlling growth in the money supply should safeguard financial market stability over the near term."

The IFF report said compared with the rest of the region and India, the Philippines showed the most dramatic fiscal change in recent years. Spending restraint, for example, and new revenue-raising measures reduced the consolidated public sector budget deficit to about two percent of GDP in 2005 from a peak of 5.5 percent in 2002. The reduction lowered total public debt to 105 percent of GDP in September 2005 from 110 percent at the end of 2004.

The government also expects that the expanded value-added tax, which was increased to 12 percent in February will boost tax revenues to 14.5 percent of GDP in 2006, reversing the seven-year decline.

In the meantime, the IFF warned that the political uncertainty could intensify due to constitutional reform, which would replace the presidential system with a parliamentary form of government. Under this scenario, while the economy remains stable, follow-through fiscal reforms must be put in place as soon as possible. "The government has rightly focused on the immediate task of reducing the large budget deficit, but the failure to follow up with new measures to boost revenues raises concerns that the public finances have not yet been put on a sustainable track," the IIF report said.

BY LEE C. CHIPONGIAN
http://www.mb.com.ph/BSNS2006050863434.html

mygz14

May 8th, 2006, 09:09 AM

^^ di ba alas 3 pa nagsasarado ang stock market?

N0pe. 12:10 m0st 0f the time. Bef0re it used t0 be that way, per0 mas nging efficient ang st0ck market natin when it was 0nly half day. :D

mygz14

May 8th, 2006, 09:12 AM

The Philippine Stock Exchange index continued its rallying streak Monday, surging 118.93 points, or 4.8145 percent, to close at 2,589.17 points amid improving government finances, solid corporate earnings and low interest rates.

Mark Alan Canizares, senior investment analyst of Citiseconline Inc., is expecting that the market would continue to set new highs in the coming sessions. He said the release of corporate earnings would provide the next push for the market.

Earlier in the day, the PSEi posted its highest increase of 2,601.88 points, or 5.3 percent growth, in nearly seven years.

Philippine Long Distance Telephone Company recorded the biggest growth at P130, while Metrobank and Bank of the Philippine Islands gained P4.50 and P3, respectively.

BPI’s parent company, Ayala Corporation, also closed higher by P42.50.

The peso, meanwhile, averaged 51.41 against the US dollar in mid-trade, slightly stronger than last week's 51.61 finish.

The peso was traded between 51.47 and 51.35 on $316.50 million worth of trades.

www.abs-cbnnews.com

mygz14

May 8th, 2006, 09:13 AM

The Philippine Stock Exchange index topped 2,600 points on Monday as investors snapped up stocks amid improving government finances, solid corporate earnings and low interest rates.

The stock exchange rose 5.3 percent to 2,601.88 points, its highest in nearly seven years.

www.abs-cbnnews.com

beads_strawberries

May 8th, 2006, 09:24 AM

^ Added to this, as per the broadsheets this morning, the national government has paid debt services 64%higher than what was originally projected in the 2006 fiscal program. I think this is due to the economic reforms instituted by the government which brings us more revenues and incomes to pay off for our debt.

This manifests the economic stability we are gaining right now. Aside from this economic stability, it can encourage investors and confidence of the international arena.

mygz14

May 8th, 2006, 09:34 AM

Alth0ugh in a way, I d0 appreciate the way h0w militants and the p0lice celebrated lab0r day but there were "PASAWAYS." This administrati0n c0uld really be the transiti0n age 0f 0ur c0untry t0wards p0litical maturity. 0nce we attain that, ec0n0mic gr0wth WILL be tremend0us.

dancethingy

May 8th, 2006, 11:14 AM

RP attractive site for reg'l operating hqtrs
spacer

The Philippines is becoming an attractive site for regional operating headquarters (ROHQ) with investments from this sector hitting .5 million in the first quarter this year as against $ 1 million in the whole of 2005.

Trade and Industry Undersecretary Elmer C. Hernandez, who is also Board of Investments managing head, cited the registration of 10 ROHQs in the January-March period this year as against 5 firms last year.

"Investors are saying that the Philippines is a good place to put up ROHQ operations," Hernandez said.

The ten ROHQs approved by the BoI in the first quarter are Paypal Asia Services Ltd., Naxos Global Distribution Ltd., Lindberg A/S, NP Regional Headquarters Phils., Jinchuan Group Manila Office, Manulife Data Services Inc., Branders.com. Inc., Blue Frog Mobile Inc., Valeant Pharmaceuticals International, and Hilo Fish Company, Inc.

On the other hand, the five ROHQs last year were registered only in the last quarter of 2005.

ROHQ is defined as a foreign business entity which is allowed to derive income in the Philippines by performing qualifying services to its affiliates, subsidiaries or branches in the Philippines, in the Asia-Pacific Region and in other foreign markets.

To qualify for BOI registration and incentives availment, the head office must initially remit into the Philippines at least US$ 200,000.00.

The entry of foreign firms establishing Regional or Area Headquarters and Regional Operating Headquarters in the country was encouraged under Republic Act No. 8756 passed in November 1999, which enhanced the old rule on the operations of RHQs in the country.

Previously, RQH’s were allowed only to act as administrative branches but were not allowed to make money. (BCM)

Under the new law, foreign companies that put up their regional headquarters in the country are allowed to derive income with substantially reduced taxes.

Incentives available to ROHQs include a preferential income tax rate of 10% on taxable income, exemption from all kinds of local taxes, fees or charges imposed by a local government unit, except real property tax on land improvements and equipment.

ROHQs are also entitled to tax and duty free importation of equipment and materials for training and conferences needed

and solely used for the ROHQ functions, and which are not locally available, subject to prior BOI approval.

Multiple-level entry visas are also granted to expatriates working at regional headquarters (previously, visas had to be renewed every year) and tax and duty-free importation on their personal and household effects; etc.(BCM)

dancethingy

May 8th, 2006, 11:15 AM

Local stock market poised for a long bull run — PSE
spacer

By JAMES A. LOYOLA

The Philippine Stock Exchange believes the local stock market is poised for a long bull run.

PSE President Francis Lim said the dramatic rise in stock prices, especially during the last four trading days, reaffirms investors’ confidence on the Philippine economy.

"The economic reforms that the government is putting in place, along with reforms that we at the PSE are implementing, have started to bear fruit," Lim declared.

He believes favorable developments in the political front, like the peaceful holding of Labor Day celebrations, have convinced investors of our political maturity and sobriety.

"Our show of political maturity, combined with sound economic fundamentals, strong corporate performance and more transparent stock market operations, will definitely fuel a further surge in stock prices," Lim added.

"I believe we have the beginnings here of a bull run, provided, of course, that we maintain all these factors conducive to business," he said.

The PSEi, which is the overall barometer of stock price movements at the PSE, closed Friday at 2,470.24 points, or 99.95 points higher than its level a day before. It was the best finish of the index after it reached 2,488.62 points on July 22, 1999.

Based on PSE records, the market registered today the highest single-day increase in points of the main index since January 22, 2001 when it went up by 255.13 points. Percentage-wise, the 4.22 percent market increase today was the highest single-day surge of the index after it went up by 4.89 percent on June 17, 2003.

The Philippines earlier earned a higher score in a crucial review, which was commissioned by the California Public Employees’ Retirement System (CalPERS) among 27 emerging markets.

CalPERS, which is acknowledged as the biggest US pension fund, earlier commissioned Wilshire Associates, one of the world’s leading consulting and management firms, to conduct the study and guide the pension fund’s flow of investments to 27 emerging markets.

Wilshire has recently confirmed that, in its latest review, it assigned to the Philippines an average score of "2.13," or 0.13 of a percentage point higher than the "2" threshold rating that Wilshire gave to the Philippines last year.ok

mygz14

May 8th, 2006, 11:54 AM

http://money.inq7.net/breakingnews/view_breakingnews.php?yyyy=2006&mon=05&dd=08&file=17

From Inq7.net

bigay q nlng ung link...yw q makasuhan ng plagiarism....hhahaa..alth0ugh, ung s0urces are cited nman. :D

mygz14

May 8th, 2006, 11:57 AM

http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=05&dd=08&file=2

Taken from Inq7.net

bigay q nlng ung link! hahahaha..ntk0t :D

normandb

May 8th, 2006, 01:06 PM

..................
Meanwhile, higher dividend payouts from telecom firms should continue to keep investors interested in the fast-maturing sector, it added.

Copyright 2006 Xinhua Financial News Service-Asia. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
From Inq7.net

:hahaha: lolz ... lagot ka! he he he

JAMAICUS

May 8th, 2006, 01:53 PM

AP
Philippine Shares Jump 4.8 Percent
Monday May 8, 6:48 am ET

Philippine Shares Jump 4.8 Percent to 7-Year High, Peso Closes Higher

MANILA, Philippines (AP) -- The Philippine stock market surged 4.8 percent Monday to a seven-year high, with foreign funds drawn by the country's improving fiscal and economic outlook.
The benchmark 30-company Philippine Stock Exchange Index rose 118.93 points to 2,589.17, its best close since July 13, 1999. That was the largest point gain since January 2001.

On Friday, the index jumped 4.2 percent. Since the start of May, the index has gained 14 percent.

Blue-chip Philippine Long Distance Telephone Co., or PLDT, was the most actively traded stock, rising 6.1 percent to a record closing high 2,255 pesos, ahead of the company's first-quarter financial results Tuesday Foreign interest played a pivotal role in the market's substantial gains over the past sessions, analysts said.

The rally staged by Wall Street Friday also provided additional incentive for investors to position in the market, they added.

The U.S. investment bank JP Morgan in a report heralded the current period as the "start of a new era" for the Philippines, saying it has upgraded the country to an "overweight" in both emerging markets and Asia Pacific ex-Japan mandates.

"The Philippines is on track to reach a balanced budget by 2008 and a surplus in 2009," it said.

Recent fiscal reforms, most notably in the implementation of the value added tax, have inspired the government to project a balanced budget two years earlier than the official target of 2010.

JP Morgan said the next stage is a higher annual growth trajectory of 6-8 percent in gross domestic product driven by the infrastructure and mining sectors, which are emerging from their lows and reclaiming their position as economic growth engines. The economy expanded 5.1 percent in 2005.

"For now strong growth in remittances and BPOs (business process outsourcing) will continue to fuel domestic demand," said JP Morgan. "Favored cyclical plays are the property and banking sectors, which have already seen a turnaround."

Total volume of shares traded grew to 3.42 billion shares valued at 5.30 billion pesos (US$101.92 million; euro84.93 million) from Friday's 3.22 billion shares valued at 4.96 billion pesos (US$94.23 million; euro78,52 million)

Foreign investors bought 3.77 billion pesos (US$72.50 million; euro60.42 million) and sold 2.15 billion pesos (US$41.34 million; euro34,45 million) worth of shares.

The Philippine peso, meanwhile, ended higher, bolstered by the weaker performance of the U.S. dollar against the Japanese yen and other regional currencies, traders said.

The dollar closed at 51.330 pesos on the Philippine Dealing System, down from 51.610 pesos Friday.

http://biz.yahoo.com/ap/060508/philippines_markets.html?.v=2

dancethingy

May 8th, 2006, 04:44 PM

It looks like this year is going to be a very pivotal year for our country in terms of economic recovery, let's pray!!!!!!!!!!

Bourse set for new highs as foreign buyers return

Share prices rose sharply yesterday, shooting up by 4.81% on the back of strong foreign investor support ahead of the release of first-quarter results of major companies.

The PSEi posted its biggest single-day increase in five years by gaining 118.93 points to 2,589.17. The index had surged by 17.56% or 255.13 points on Jan. 22, 2001.

Yesterday’s close breached its full-year target of 2,500 points. It was also the highest closing level in seven years, or since July 13, 1999 when the stock index ended at 2,604.49. Volume was heavy at 3.42 billion shares worth P5.3 billion. (See S2/2)

Dealers said investor sentiment was very positive on the back of the government’s improving fiscal performance, while political tensions had eased of late, allowing investors to focus more fully on the market.

The index has risen 14% over the past five days and investor interest remains unabated, with P5.3 billion worth of shares traded yesterday alone.

BACK ON THE RADAR SCREEN

"This is just the beginning," said Paul Joseph Garcia, chief investment officer at ING, adding that the medium-to-long term trend was up.

"This is an indication that, one, finally investors are recognizing that the Philippines is back on the radar screen, and, two, that the Philippines is an improving story on the macroeconomic front."

The Philippine stock exchange, which at two and a half hours has the shortest trading day in Asia, had been left behind by rival equity markets such as Indonesia amid political instability and ballooning government finances.

But fundamental factors have started to improve. The government’s budget shortfall has been shrinking due to a higher sales tax and Manila has said it is on track to hit a 2006 deficit target of P125 billion, or 2.1% of gross domestic product, down from P146.5 billion in 2005.

Fears of a possible attempt to overthrow President Gloria Macapagal Arroyo, who uncovered an alleged coup bid in February, have also eased after last week’s Labor Day demonstrations, traditionally a flashpoint for violence, passed off peacefully.

FOREIGN BUYING

Following the calm Labor Day celebrations, the first week of May had foreign investors pouring in P13.67 billion into the stock market, cornering 38.44% of the holiday-shortened trading week.

Net foreign inflows hit P1.6 billion on Monday with only the mining sector in the red, down 2.6% after hitting a record high in mid-April.

Year-to-date net foreign inflow of $163 million has already caught up with the total 2005 inflow, according to Nomura data, and is higher than both Indonesia and Malaysia.

Jose Vistan, Jr., research director of AB Capital Securities, Inc., said the market is showing no signs of letting up.

"With foreign funds leading the way, we should expect the market testing new highs today," he said.

"Still, we wouldn’t be surprised if the market should correct any time. A healthy correction is long overdue and any negative event can easily be used as an excuse to take profits. Earnings will be a factor as we start the first quarter earnings reporting season," he added.

PSE President and Chief Executive Francis Lim said the "dramatic rise" in stock prices reaffirms investor confidence in the Philippines.

"Our show of political maturity, combined with sound economic fundamentals, strong corporate performance and more transparent stock market operations, will definitely fuel a further surge in stock prices. I believe we have the beginnings here of a bull run, provided, of course, that we maintain all these factors conducive to business," Mr. Lim said.

RP A LAGGARD PLAY

"Foreign interest has returned. They view the Philippines as a laggard play," said Mark Tan, Singapore-based director of Asian equities at UOB Asset Management, which has Philippine investments.

"They have not performed as well as the rest of the Asian markets since the recovery in 2002. So there’s probably a lot of catch-up going on right now."

The market trades at less than five times expected 2006 earnings, cheaper than Thailand’s 10.4 times and Indonesia’s 12.2 times, according to Reuters data.

"Even laggards in the index are being bought," said Mark Canizares, analyst at Citisecurities Inc. "There should be corrections, but the short term and the long term trend still points up and the market is actually breaking into new highs."

Mr. Garcia, who sees the next key resistance at 2,700 points, said the biggest short-term risk was the possibility that opposition leaders could try to revive last year’s failed impeachment attempt against Mrs. Arroyo, though many analysts expect her allies in the lower house to defeat any impeachment bid.

The banking and property sectors have been particularly buoyant after the central bank decided last week to hold fire on borrowing costs -- but gains have been well spread amid solid first-quarter corporate earnings.

Martin L. Español of stock portal 2tradeasia.com said "The positive momentum would likely prevail for the rest of the week as companies continue to report better earnings."

FIRST QUARTER RESULTS

Unicapital Securities research analyst Nina Tinio, meanwhile, said investors, including foreign buyers, had taken their cue from impressive first quarter revenues of blue chips, including SM Prime Holdings, Inc. and Globe Telecom, Inc.

SM Prime, the country’s largest mall developer and operator, yesterday said net income for the first three months of the year had gone up by 8% year on year to P1.4 billion from P1.3 billion.

The company said higher value-added tax imposed starting February had failed to dampen consumer spending. Shares of SM Prime closed 11.11% or P0.90 higher at P9.

Ayala-led Globe Telecom, the country’s second largest mobile firm, said first quarter net income had risen by 19% to P3.5 billion as a result of its bigger subscriber base. Globe Telecom shares finished 4.57% or P45 higher at P1,030 apiece.

Philippine Long Distance Telephone Co. also closed at a record high, up P130 at P2,255.

Meanwhile, Ayala Corp. rose by P42.50 to P472.50. San Miguel Corp. saw its A and B shares remain unchanged at P64.50 and P84, respectively.

BPI Securities Corp., meanwhile, said "Volumes remain high, consistent with the higher levels of foreign activity. Despite short-term overbought signals, investors have continued to push up share prices and consequently, the composite index."

"It is uncertain up to what extent this liquidity-driven rise will persist; any tapering off of buying interest may be taken as a signal for punters to take profit," it added.

RECENT DEVELOPMENTS

Upbeat investors accumulated more shares after the policy-making Monetary Board left key interest rates unchanged and anticipation the economy fared better in the first quarter.

The economy could have grown faster than 5.5% in the first quarter due to the stronger-than-expected growth of the agricultural sector, Socioeconomic Planning Secretary Romulo L. Neri has said.

With this, the government may achieve its full-year growth target, but Mr. Neri said this should also be complemented by strong investment inflows throughout the year.

The Bangko Sentral ng Pilipinas kept overnight rates unchanged for the seventh straight month last Thursday. The rates stand at 7.5% for overnight borrowing and 9.75% for overnight lending.

The Monetary Board said inflation is expected to decelerate by the second half of the year.

Unicapital Securities’ Ms. Tinio said the first week of May is "seasonally strong" as investors speculate on the first quarter results of the listed companies.

Eduardo R. Banaag, Jr., fund manager for First Metro Save & Learn Equity Fund, added, "Other than an improving profit outlook this year, the ’weight of the money’ is and will be the strongest force behind the market’s climb."

Positive sentiment spilled over the equities market last week after Finance Secretary Margarito B. Teves was quoted as saying Moody’s Investors Services was "willing to reconsider" its negative outlook if the government meets its collection target and limit the fiscal gap.

The government announced a better first-quarter deficit, largely due to improved revenues, unlike in the past where lower shortfalls were caused by large expenditure cuts.

The deficit for January to March reached P67.6 billion, narrower than the programmed P71.8 billion.

Unicapital Securities, Inc. research head Elena Ponceca is cautiously optimistic on the uptrend on the PSEi which has been trekking uncharted territory.

"The participation of foreign investors are particularly strong on confluence of several factors such as improving fiscal position and good preliminary results and earnings performance of listed companies. News on merger and acquisition of banks also attracted investors," she said.

"However, the PSEi has ’huge leaps". If this enters into a correction, it will be deep. Foreign buying has peaked, if not reached the peak. Interest rates in the secondary market is inching up and there is tight liquidity. The US stock market is also going strongly. Other markets such as the Philippines may not be attractive; foreign investors may return to the US market which is more sophisticated," she said. -- reports from Ruby Anne M. Rubio, Jeffrey O. Valisno and Reuters

JudeD

May 8th, 2006, 05:15 PM

It's so ironic that Paypal is setting up their regional headquarters here when they don't even allow Filipinos to use their service! May security issues daw!

marites4

May 8th, 2006, 05:22 PM

baka marameng hackers sa pinas.
hu hu i sold my shares of ali. I missed the run. It would have quadruppled my money already. :bash: but i'm happy for the stock market though.

stephencua

May 9th, 2006, 02:16 AM

all great great news!

bustero

May 9th, 2006, 04:42 AM

I think soon we'll be able to use similar sort of payment systems. The market here is starting to gear up for it.

sugbuanon

May 9th, 2006, 08:53 AM

RP’s end-April GIR level reaches US$ 20.906-B

MANILA – The Bangko Sentral ng Pilipinas (BSP) on Friday disclosed that the country’s gross international reserves (GIR) reached another record-high level of USD 20.906 billion as of end-April 2006 from previous month's USD 20.844 billion.

The monetary authorities said the current GIR level is adequate to cover about 4.4 months of imports of goods and payments of services and income.

They added that this level is also equivalent to 3.3 times the country’s short-term debt based on original maturity and 1.7 times based on residual maturity.

Short-term debt based on residual maturity pertains to outstanding external debt with original maturity of one year or less, plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.

BSP indicated that the GIR level was boosted mainly by its foreign exchange operations and income from investments abroad, including the deposit by the national government (NG) of proceeds from its project loans.

These inflows were, however, partly offset by principal and interest payments of foreign exchange obligations of the BSP and the NG.

BSP said that with the improvement in the GIR, the net international reserves (NIR) rose slightly by USD 43 million to USD 20.264 billion.

Meanwhile, BSP said the country’s inflation declined to 7.1 percent year-on-year in April from 7.6 percent in March was within the monetary authorities’ forecast for the month of 7.0 to 7.7 percent.

The slowing down of inflation is attributed by BSP to the drop in liquefied petroleum gas (LPG) prices and lower inflation for selected construction materials.

The inflation report made by the National Statistics Office (NSO) is consistent with the BSP’s assessment that current price pressures continue to be linked largely to food and energy-related items.

Meanwhile, year-on-year core inflation slowed to 6.3 percent in April from 6.5 percent in March.

The BSP’s latest forecasts continue to suggest manageable inflation over the near term.

Inflation is still expected to decelerate in the second half of 2006 as cost-side pressures subside.

BSP noted that there are also indications that the average inflation rate in 2007 may settle within the four to five percent target in the absence of renewed domestic or external shocks.

Latest available data also point to limited demand-based pressures and manageable inflation expectations.

It added that it will continue to monitor closely the upside risks to the inflation outlook.

"Sustained strong demand for energy, against a backdrop of limited increases in world spare oil production capacity and continuing risks of geopolitical uncertainty, is likely to keep oil prices high in the near term,” BSP officials said.

BSP said the expected adjustments in domestic power costs imply a continuing build-up in supply-side pressures.

It added that such a prospect increases not only the risks to inflation expectations but also the likelihood of second-round effects.

BSP pointed out that its key policy priority remains managing the risks to inflation expectations and the risk of potential second-round effects in wage and price setting.

It added that BSP continues to support the use of non-monetary measures to mitigate the impact of increased consumer prices by concerned government agencies.

beads_strawberries

May 9th, 2006, 09:17 AM

Stocks hit its seven-year high, told by headlines today. Stocks was buoyed up by positive economic prospects, improving government finances, solid corporate earnings, low interest rates, and relative political calm. As analysts have stated, such is only the beginning of more positive economic recovery.

JAMAICUS

May 9th, 2006, 01:49 PM

Economy to go up on infra spending

The Philippine economy could have higher growth rates in 2009 and 2010 if the government would spend its projected budget surplus on infrastructure development.

Based on the new simulations done by the National Economic and Development Authority (NEDA), the country may hit a growth rate of 6.38 percent in 2009 and 6.61 in 2010 if it would allocate its budget surplus of P12.14 billion and P17 billion, respectively, to infrastructure spending.

The NEDA simulations show an incremental 0.14 percentage points (ppts) in gross domestic product (GDP) growth for 2009 from the original target of 6.24 and an additional 0.102 (ppts) to GDP growth from its original target of 6.31 percent in the following year.

Given that oil prices, inflation rate, interest rate, exchange rate, and projected exports and imports remain the same as what the Development Budget Coordination Committee agreed upon, investments are likely to grow by as much as 8.9 percent in 2009 from the original target of 8.1l percent. On the other hand, the growth rate for 2010 will grow by 9.0 percent instead of the original target rate of 8.9 percent.

Recently, the Institute of International Finance, Inc. (IIF) said that though a lower budget deficit will relieve the "pressures on the financial markets," the Philippines needs to invest more in infrastructure spending as the low revenue base of the government may not be enough to provide for the needed improvement in public goods and services. The group said decrepit infrastructure and inadequate social services raise the cost of doing business in the Philippines, which discourages investment.

The government aims to have a balanced budget by 2008 and plans to incur surpluses in the years thereafter.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=38092

mygz14

May 10th, 2006, 06:19 AM

PSEi up by 17.26 by 0.687%, it closed at 2,529.49.

JAMAICUS

May 10th, 2006, 08:02 PM

RP exports surge 25.8% in March

By EDU H. LOPEZ

The country’s export earnings posted a 25.8 percent increase to US.1 billion in March this year, a significant improvement from the previous month’s 14.9 percent growth.

"The sharp increase of total export revenues from January to March 2006 to US.9 billion is 13.8 percent higher compared with the US.6 billion posted in the same period last year," said Socioeconomic Planning Secretary Romulo L. Neri.

The growth was above the 8 percent export growth target for 2006.

The National Statistics Office (NSO) said electronic products expanded by 24.7 percent to US.7 billion, from US.2 billion a year earlier. Of the components of electronic products, semiconductors and electronic data processing machines went up by 29.3 percent and 4.9 percent respectively, making up for the slowdown in control and instrumentation (44.2%), consumer electronics (-13.2%), and communication/radar (-7.0%).

The Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) said that Philippine semiconductor exports are expected to grow by 10 percent, while total electronics exports is seen to rise by at least 8 percent in 2006.

Manufactured goods, accounting for 89.1 percent of total export receipts, increased by 25.1 percent to US.7 billion on a yearon-year basis.

Garments posted a strong growth of 29.6 percent. This was brought about by the bulk order of men’s and women’s wear.

Petroleum products, ranked as third top export earner, registered a total revenue increment of 163.1 percent to US.3 million from US.3million during the same period a year ago.

The robust growth can be attributed to the higher demand in lubricating greases, fuel oils and gas oil.

The United States continued to be the biggest export market, accounting for 17.1 percent of the country’s aggregate income for the month, at US2.1 million from last year’s US8.9 million.

Other top export markets are Japan (15.8 %), the Netherlands (13.3 %), and the People’s Republic of China (9.8 %

http://www.mb.com.ph/BSNS2006051163654.html

JAMAICUS

May 10th, 2006, 08:03 PM

FDI inflows soar 22% in first 2 months

By LEE C. CHIPONGIAN

The country’s foreign direct investments in the first two months of the year was up 22 percent to 4 million from 2 million the same period in 2005.

In February FDIs yielded a net inflow of million. According to Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr., net equity capital recorded a surplus of million – from the United States and Japan – which went to the manufacturing and real estate sectors.

Tetangco said the sustained equity capital inflows reflect investors’ "positive perception of the country". The influx of investments usually comes from Hong Kong, China and Australia. The US and Japan are the largest source of FDIs.

Last year BSP said FDIs recorded an increase of 64.5 percent to .1 billion. Improved macroeconomic conditions, particularly on the fiscal front, as well as upbeat expectations for 2006, "heightened investor confidence," said Tetangco.

FDI inflows are included in the country’s balance of payments, which summarizes the country’s economic transactions with the rest of the world.

They are major sources of cash flows to boost the country’s gross international reserves. Foreign exchange from exports and overseas Filipino workers’ remittances complete the dollar reserve components.

Tetangco said earlier that politicking so far, has not affected the inflows of portfolio and FDIs, based on the continued growth in these figures.

"Investors would react negatively if there’s evidence that political developments were beginning to impact on economic," the BSP chief said earlier. "But if you look at what’s happening to the economy right now the picture is quite favorable." He added: "We see investments continuing to flow in both portfolio and FDIs."

As of February BSP records show that non-residents’ investments remained strong. Of the 4 million, 6 million are other net capital while million are equity capital, of which million are withdrawals. Reinvested earnings in the meantime were a net of million.

http://www.mb.com.ph/BSNS2006051163655.html

Blackraven

May 11th, 2006, 06:38 AM

Paypal Asia Services Ltd.

I do hope that once they finish building their ROHQ, that would mean that they would launch the service here in the country.

Sa tingin ko, dalwang taon na akong naghintay para ilabas nila ang Paypal service dito sa Pinas.

Now I can have another extra payment in Play-Asia.com and also access to Ebay and Ebay Phils.

c0kelitr0

May 11th, 2006, 07:52 AM

good news! annual population growth rate in the Philippines went down to 1.95%!!!!

beads_strawberries

May 11th, 2006, 08:46 AM

^^That is just good news for us. We all know that overpopulation gives more burdens to the country's progress. Now, the people are getting more aware that overpopulation will not help this country.

I remember when I was writing paper of population growth, it was historical for us to reach below the 2% level, and basically it is the target. Good thing that we reached better than the target.

marites4

May 11th, 2006, 08:52 AM

heathcliff

May 11th, 2006, 11:50 AM

if we don't slow down our pop growht can you imagine 140 million pinoys and most of the growth i presume are from depressed areas. We can't even handle the trash problem now imaging adding another 80 million. How much trash are they going to generate since majority of pinoys cant be disciplined to recycle and proper waste segregation. Should we wait until it's a timebomb about to explode before nipping itin the bud .
This is good news indeed but i suspect baby factory was only halted due to the fight of MAnny paquiao.

It's actually only in the big cities like in Metro Manila that it's overcrowded. This is just a symptom of inequitable distribution of wealth that has hampered economic growth in the countryside. People would naturally go where they think they will have better livelihood prospects. If we shift to federalism, the now neglected regions (in the national budget) will be rendered more financially stable to pursue their individual development projects. Faster economic growth in the provinces will eventually result to decongestion of the metropolis as more people will be enticed to go back and work in their own hometowns/provinces.

At present, the establishment of economic zones (where the government gives incentives for investors) has helped a lot in encouraging people to move to and work outside the metropolis.

chixbebe

May 11th, 2006, 12:40 PM

By Roderick T. dela Cruz
http://www.manilastandardtoday.com/?page=business01_may11_2006

Exports surged 25.8 percent year-on-year in March 2006, the fastest in more than six years, to reach a fresh record level.

Data from the National Statistics Office showed merchandise exports went up by $842 million to $4.11 billion in March from $3.27 billion a year ago.

It was the first time the country’s monthly exports reached the $4 billion level, setting a new record that bodes well for the government’s target of achieving an 8 percent export growth for 2006, officials said.

It was also the second time exports grew at double-digit this year, after the revised 14.9 percent growth in February. Exports were down 0.9 percent in January 2006 and 2.8 percent in March 2005.

“The acceleration of more than 20 percent was the first time exports had recorded since July 2002 and the highest after six years since October 1999, when exports grew 36.1 percent,” NSO administrator Carmelita Ericta said.
This pushed the cumulative merchandise exports to $10.88 billion in the first quarter of 2006, up 13.8 percent from $9.562 billion recorded during the same quarter last year.

Dennis Arroyo, policy and planning director of the National Economic and Development Authority, said the recovery of the export sector would support the government’s growth target for 2006.

“This means that the gross domestic product growth would not be slowed down by weak exports as earlier anticipated,” he said.

The government looks at a GDP growth range of 5.5 percent to 6.2 percent in 2006, higher than the 5.1 percent in 2005.

Arroyo also said that with the 13.8 percent export growth in the first three months of the year, the full-year export would easily surpass the 8 percent growth target.

Data showed that electronic exports, which account for nearly two-thirds of all shipments, climbed 24.7 percent to $2.71 billion in March, the highest growth achieved since July 2002.

Shipments of semiconductors, for instance, went up by 29.3 percent to $2.09 billion.

Electronic shipments recorded a growth of 12.4 percent to $7.099 billion during the first quarter from only $6.316 billion last year.

Other top sellers in March were garments, petroleum products and coconut oil.

marites4

May 11th, 2006, 06:13 PM

It's actually only in the big cities like in Metro Manila that it's overcrowded. This is just a symptom of inequitable distribution of wealth that has hampered economic growth in the countryside. People would naturally go where they think they will have better livelihood prospects. If we shift to federalism, the now neglected regions (in the national budget) will be rendered more financially stable to pursue their individual development projects. Faster economic growth in the provinces will eventually result to decongestion of the metropolis as more people will be enticed to go back and work in their own hometowns/provinces.

At present, the establishment of economic zones (where the government gives incentives for investors) has helped a lot in encouraging people to move to and work outside the metropolis.
I don't want every place in the PHils to look like Metro Manila heaven forbid.
Plus all the other cities are starting to go there. Look at pampanga city now compared to just a few years ago. TOns of cars ,pollution, starting to look like manila now, baguio. laguna batanggas. We don't have a good track record of managing anything from population to environment to the economy.
WE are like the thirteenth or tweltfh most populated country in the world and slowly creeping up there. If you don't think we're overpopulated travel outside the county more.

JAMAICUS

May 12th, 2006, 04:34 AM

UBS lifts GDP forecast for RP

By LIKHA CUEVAS, The Manila Times

Looking at the country’s fiscal consolidation and what the drop in bond yields has done for the country’s real economy, the UBS Investment Research lifted its gross domestic product growth forecasts for the Philippines using Turkey as model.

The investment bank projects the country could grow to 5.2 percent in 2006 from 4.8 percent and to 5.8 percent in 2007 from 4.2 percent.

It came up with the figures by comparing the country’s economic situation with that of Turkey at the beginning of 2003. However, the UBS analysis has concluded that the Philippines would be hard pressed to replicate Turkey’s immediate boom, which the investment bank conceded has been "extraordinary by any standard."

In 2003 Turkey did some fiscal adjustments and successful disinflation program that collapsed interest rates and decreased bank lending to the government. Thus, banks were forced to look for new sources of growth.

In the Philippines today, bank lending remains "anemic" as banks prefer to lend to the government rather than to the private sector, UBS said. Unlike in Turkey where credits to the private sector nearly tripled and to households nearly four times, Philippine banks have not increased its lending to private and household sectors, because they are saddled with nonperforming loans (NPLs) at an average of 14 percent and assets (NPAs), which are 12 percent.

Other reasons cited by UBS for ruling out an economic boom for the Philippines in the near term were the banks’ weak capital base of banks and high lending rates despite the "collapse" in treasury bills and bond yields. Moreover, 28 percent of the banking sector in end-2005 did not comply with the 10-percent minimal adequacy ratio requirements.

On the other hand, the investment bank said this refusal of banks to risk lending may not be for long and has predicted that NPL and NPA ratios will fall again sharply this year. It noted that six banks have indicated to raise capital in 2006 and ongoing consolidation in the banking sector will be of help.

UBS also said that declining provision costs will enable banks "to take on more risk in the future." This means that banks must look for new areas of growth that would help lower their lending rates if they want their balance sheets to improve.

However, it clarified that stronger balance sheets and lower interest rate are not enough to boost credit growth as demand for credit is paramount. Although many say that the manufacturing sector in the Philippines has lost its competitiveness in recent years and is an unlikely source of much demand for credit, "credits to the sector surged in tandem with the rest of the economy," UBS said. Therefore, investment in manufacturing could take-off "if and when lending rates fall."

Another potential source of stronger investment activity, the investment bank pointed out, is private-sector infrastructure investment, especially in the power and water sectors. Jody Santiago, UBS Philippine head of research, said that privatization of state-owned corporations could be a "trigger for greater activity going forward."

Stumbling blocks for growth

The investment bank said that bond yield would increase by another 200 basis points across the yield curve between now and end-2007. "With the gradual pick up in the credit cycle we will see some upward pressure on bond yields. But overall, we still expect bond yields to stay markedly below historic levels," UBS’ Christa Janjic said.

Higher oil prices in the global market also pose a risk to inflation that would affect bond yields. The biggest risk that UBS sees is in the fiscal position of the government.

Any disruptions in the fiscal program such as a "blow-out" of the budget deficit could increase borrowing and "short-circuit any potential lending boom."

Volatile politics may damage investment climate and constitutional challenges still pose a threat, such as what happened last year when investment-to-GDP ratio fell below 16 percent and was the lowest in any Asian economy at that time.

Despite these challenges, UBS is still optimistic about the Philippines. "We don’t see why the Philippines could not repeat some of the trends that we saw in post-2002 Turkey," Christa Janjic said. "Turkey still provides an important lesson for the Philippine economy as far as the dynamics of adjustment are concerned."

According to UBS, ongoing microdevelopments, such as reforms in the banking sector and the "cyclical recovery" in real-estate sector, would spur lending and lead to economic growth.

http://www.abs-cbnnews.com/storypage.aspx?StoryId=38479

mygz14

May 12th, 2006, 05:16 AM

Its a pity that only some people in the country and appreciate the growth that the country experiences. The Philippines is beginning to be recognized again to be an economic powerhouse in the near future.

sugbuanon

May 12th, 2006, 06:25 AM

^^ i agree with that.. it seems that most of the filipinos are not too optimistic of our country..

RP is 14th most competitive economy in South East Asia, says report

MANILA - Sound economic policy and the slight improvement in government efficiency landed the country in the 14th spot as the most globally-competitive economy in South East Asia, the World Competitiveness Yearbook (WCY) 2006 bared Thursday.

Retaining its spot at 49th overall in the global scale, the Philippines, the report cited, is performing well in the following areas: cost of living index (1st), real short-term interest rate (2nd), consumption tax rate (6th), collected total tax revenues as percentage of Gross Domestic Product (GDP) (7th), compensation levels (4th), working hours (5th), remuneration in services profession (6th), hightech exports as percentage of manufactured goods (1st) and investments in telecommunications as percentage of GDP (9th).

"The improvement in terms of of government's efficiency is attributed chiefly to the 'likelihood' of improvement in the management of public finances, reforms in tax measures, real short-term interest rate (real discount/bank rate), central bank's policy's positive impact on economic development, and gender-related issues," the report said.

The WCY also noted that the world economy has been booming in 2005. Of the 61 countries surveyed last year, 22 posted growth rate by above 5 percent, 39 countries - including the Philippines - posted above 3 percent growth, while 48 nations posted above 2 percent growth. Italy is the only country which posted stagnant economic growth.

The United States held on to the top spot as the best-performing economy overall - although burdened with a US$ 318-billion budget deficit and $ 8,000-billion debt on its shoulders.

Italy, France and some Latin American nations are also confronted by the same scenario - suffering burden for their competitiveness.

Meanwhile, the Asia Pacific region has been experiencing a boom in its performance and is poised as the new driver of economic growth globally.

Several Asia-Pacific economies figured prominently in the rankings, where Hong Kong and Singapore placed second and third to the United States, respectively, while China, India and Japan are slowly inching their ways up.

Korea and Thailand's rankings, though, has declined. Indonesia, on the other hand, placed last in the region and second to the last globally.

Meanwhile, the report warned that threats to the Philippine's competitiveness could outweigh its gains in 2005.

It cited that the national government should place great focus on sectors such as improvements in education, basic infrastructure, population policy, among others to lift the country off poverty.

It recommended that local policy makers undertake a capacity-building measure for regulatory agencies to ensure transparency, non-descrimination and procedural fairness; improve the quality of basic education to further promote human capital development;

Progress on a clear and coherent population policy; improve distribution infrastructure for faster turn-around times and lower transaction costs; and accelerate implementation of e-governance projects to promote transparency and facilitate trade.

The WYC tracks the competitiveness of 61 national and regional economies based on 312 criteria. It is evaluated by over 4,000 economic experts in various countries worldwide.

The report aims to analyze and rank the ability of nations to create and maintain an environment that sustains the competitiveness of enterprises.

normandb

May 12th, 2006, 06:27 AM

^^ i agree with that.. it seems that most of the filipinos are not too optimistic of our country..

RP is 14th most competitive economy in South East Asia, says report

How is that possible? there are only 11 country in South East Asia :D

mygz14

May 13th, 2006, 07:10 AM

Yeah. The 11 countries in South East Asia are Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Askal82

May 13th, 2006, 07:37 AM

How is that possible? there are only 11 country in South East Asia :D

:lol: ano pa ba yung mga ibang bansa sa SEA? East Timor? what?

bitoy

May 13th, 2006, 09:10 AM

Maybe they are using the International Air Transport Association definition of SEA:

Brunei, Cambodia, Macau, Chinese Taipei, Christmas Island, Cocos Islands, Guam, Hong Kong, China, Indonesia, Kazakhstan, Kyrgyzstan, Laos, Malaysia, Marshall Islands, Micronesia, Mongolia, Myanmar, Northern Mariana Islands, Palau, Philippines, Russia in Asia, Singapore, Tajikistan, Thailand, Timor Leste, Turkmenistan, Uzbekistan, and Viet Nam.

mygz14

May 13th, 2006, 09:41 AM

Still, it would be sad if that is so.

sugbuanon

May 14th, 2006, 05:19 AM

How is that possible? there are only 11 country in South East Asia :D

hehe didnt notice that.. it should have been asia-pacific or simply asia..

sugbuanon

May 14th, 2006, 05:20 AM

PGMA launches 'Shell Super Unleaded E10'

MANILA - In line with the government's alternative fuel program, President Gloria Macapagal-Arroyo on Friday launched "Shell Super Unleaded E10," a new bio-ethanol blended gasoline, at the Pilipinas Shell service station in President Quirino Ave., corner Jorge St., Paco, Manila.

The President said the launching of Shell's E10 gasoline "is a welcome response to our recent calls for the use of alternative fuels as a mitigating measure that will soften the impact of high oil prices on the economy and the consuming public."

Pilipinas Shell is the first major oil company to heed the call of government to offer pre-blended ethanol at pump, in addition to independent players Seaoil and Flying V.

Shell will import its bio-ethanol from Australia, while Seaoil and Flying V are currently importing from Brazil.

The government has reduced the tariff of bio-ethanol fuel from 10 percent to one percent to encourage oil companies to use alternative sources of fuel energy.

Department of Energy (DoE) Undersecretary Melinda Ocampo said the 10 percent blend of bio-ethanol in gasoline would lessen the country's oil importation.

Estimates show that 10 percent bio-ethanol would result in potential gasoline displacement of about 565 million liters, or an equivalent foreign exchange savings of US$ 354 million per annum.

Apart from foreign exchange savings, Ocampo said bio-ethanol used as alternative transport fuel is expected to boost a car's octane level while reducing toxic emissions.

Priced at the same level as unleaded gasoline, bio-ethanol's advantage is in its octane rating which is two points higher than unleaded gasoline.

Bio-ethanol as an octane enhancer helps cars run smoothly while reducing cancer-causing benzene and butadiene emissions by more than 50 percent. Its high oxygen content translates to better engine performance and reduced carbon monoxide and unburned hydrocarbon emissions which also improves fuel economy, Ocampo said.

Bio-ethanol also has high volumetric efficiency and burns cooler than straight gasoline, helping to keep valves cool and contributing to an increase in engine power, she added.

sugbuanon

May 14th, 2006, 05:21 AM

Saudi to invest US$ 1 trillion in RP

CLARK ZONE, Pampanga - Saudi Arabia is planning to invest US $ 1 trillon in the Philippines which would generate some 500,000 new jobs in the country.

This was relayed here by president Tony Ng of Clark Development Corp. (CDC) who was with President Arroyo’s official entourage to Saudi Arabia.

According to Ng, King Abdullah Bin Abdul Aziz Al Saudi has instructed his staff to visit the Philippines and explore tourism opportunities.

He said that the President has always mentioned Clark and Subic economic zones as the best places for investments.

Ng said that the President presented to Saudi authorities many investment opportunities in the Subic-Clark areas prepared by the Subic-Clark Alliance Development (SCAD) under Secretary Ed Pamintuan .

He reported from Saudi that the President has made representations with Saudi Arabian Oil Company (Aramco), the world’s largest oil producer which owns 40 percent stake of Petron Corp., to put up refinery in Mindanao.

The planned refinery could supply the oil requirements of East Asia and the US Pacific Coast. It is expected to cost US $ 5 billion.

Presently, Petron-Aramco has a refinery in Batangas.

Ng, reported that the President's visit to Saudi Arabia gave a positive major impact to more than one million overseas Filipino workers there, particularly on how they would be treated now by their employers, policemen and other government agencies.

shadow_can2003

May 14th, 2006, 11:46 AM

JAMAICUS

May 14th, 2006, 12:02 PM

^^ Probably. You know the Saudi elite has "Trillions" of money from oil....

JustHorace

May 14th, 2006, 12:09 PM

Wow...Saudi loves us...then I love Saudi too :D I wish part of that $ 1 000 000 000 000 is their little donation for the construction of the new DMIA :D

shadow_can2003

May 14th, 2006, 12:17 PM

^^ Probably. You know the Saudi elite has "Trillions" of money from oil....

Yeah i know! I think part of that 1 trillion dollars investment is Four Season Hotel.

adverg

May 14th, 2006, 05:12 PM

WE are only in the trail of cathing up, it really takes time but if this is firm attributes program,we can see the impact in 5 years time.

amras

May 14th, 2006, 05:27 PM

US$1 trillion! naku, nangangati na naman siguro ang mga kamay ng mga pulitiko dyan...

bustero

May 14th, 2006, 06:06 PM

1 gazillion dollars ! hahaha. This is like a bad Austin Powers Movie. I think they they may have added a few 0's too many. 1 billion is quite probable, 10 billion puede pa rin. Very unlikely would announce a 100 billion unless you're in the superpower range which neither of us KSA and RP are.Even 1 trillion pesos is really a lot. Let's just root for the refinery in Subic which makes quite a bit of sense. That would be impressive if not entirely "environemental".

sugbuanon

May 14th, 2006, 07:20 PM

Investments rise 16% in 4 months

Investments are pouring into the country not just in the stock market but in hard investments as well with a total of P77.67-billion worth of investments have been registered with the Board of Investments (BoI) and the Philippine Economic Zone Authority (PEZA) for the January-April period this year reflecting a 16.25 percent improvement over P66.81 billion in the same period last year.

Trade and Industry Undersecretary Elmer C. Hernandez, also managing head of the BoI, said there were a total of 218 projects approved for the period with expected jobs generation of 40,370 once fully operational as against 22,534 jobs created in the same period last year.

"This is an indication that investors’ confidence in the country is not waning as we are seeing influx of investments not just in the stock market but also in hard investments, which have more permanent impact and translate to more job opportunities for our people," Hernandez said.

Of the total inflow, the BoI contributed the bulk of P59.6 billion while PEZA contributed P18.07 billion.

Hernandez explained that of the P59.6-billion investments registered by the BoI in the January-April period this year, the bulk of P52.8 billion were the additional investments of foreign retailers over the years but were reported only in April this year.

The Retail Trade Law, which opens retail trade activity to foreigners for the first time since it was reserved to Filipinos, was passed in 1997 but it was only three years after that registration of projects started.

"The P52 billion is on top of the original investments approved by the BoI when they registered. These are additional investments over the years but were only reported to us in April this year," Hernandez said.

Majority of the investments went to the manufacturing sector followed by the real estate sector, IT and industrial service facilities.

"The manufacturing sector accounts for 46 percent of the total investments inflow for the period," he stressed.

DoggMann

May 15th, 2006, 02:16 AM

http://www.manilastandardtoday.com/?page=police04_may15_2006

If you build it, they will come

By Freddie Tinga

Call centers and business process outsourcing (BPO) are driving economic activity in Metro Manila. These businesses did not exist 20 years ago, but are proving to be an enormous boon to the Philippine economy today.

We are looking at a hundred thousand call center seats by the year’s end with a target of a million seats by the year 2010.

India, our closest competitor, currently has over 600,000 seats and is gearing for a number several times that. If the infrastructure were in place, the Philippines would be a more attractive option for foreign companies to locate their remote service operations.

We are aggressively targeting this industry but it’s difficult to do so without a showcase. Companies usually send their senior executives over to view the facilities available before they sign on the dotted line. They want to be reassured that a customer inquiry from somewhere in the United States will be answered properly by a Filipino customer representative, working at 2:30 in the morning, preferably pumped up with Starbuck’s coffee.

Taguig is littered with government industrial estates that never quite made the grade. The Food Terminal is a 120-hectare project built in the Marcos years to serve as Metro Manila’s storage facility for agricultural produce from the countryside. The Veteran’s Center, just beside it, is another industrial park that is in need of an upgrade.

Both the Polytechnic University of the Philippines and the Technological University of the Philippines have large campuses in the vicinity. These could easily be focused to supply the need for call center and BPO outsourcing. Other government agencies such as the Technical Education and Skills Development Authority (Tesda) and the Department of Science and Technology are also in the area, ready to give a helping hand.

The national government could very well transform these underutilized assets, as well as other properties in the area, into a call center and service outsourcing haven. We could create an entirely new commercial ecosystem, with the area becoming self-sufficient, complete with its own retail and residential components.

For its part, the Taguig local government could endorse the entire area to Philippine Economic Zone Authority and create the Taguig Technology Corridor economic zone. We have talked to telecom companies, real estate developers, as well as the universities in the area and they all see this project as a potential homerun for the country.

Due to the storm over the weekend, I could not e-mail nor fax this article to my editor. With technology, I was able to beat my deadline by texting this article in bits and pieces, to another person on the receiving end for it to be submitted.

Similarly in Taguig, we are looking to put the various pieces together in order to create the Taguig Technology Corridor. This could be the major selling point for the country, and would enable us to bring in business from overseas. We just need to get our act together.

If we build, they will come.

sandrin

May 15th, 2006, 04:00 AM

^ It reminds me of the lines from the movie “Under the Tuscan Sun”;

"Martini:Signora, between Austria and Italy, there is a section of the Alps called the Semmering. It is an impossibly steep, very high part of the mountains. They built a train track over these Alps to connect Vienna and Venice. They built these tracks even before there was a train in existence that could make the trip. They built it because they knew some day, the train would come.”

c0kelitr0

May 15th, 2006, 04:07 AM

$1 trillion?! :runaway:

it must a typo error!

Espma

May 15th, 2006, 02:40 PM

^^^lol yeahh it has to be right, a typo?! maybe its in peso or maybe even yen..not dollars? hahaha...imagine what that amount of money could do to the economy if injected seriously.......just cannot believe it..

JAMAICUS

May 15th, 2006, 07:17 PM

Morgan Stanley bullish on RP

The Philippine Star 05/16/2006

One of the United States’ largest investment banks remains bullish on the Philippine economy in the short term but pointed out structural flaws that could prevent long-term growth.

In its report on Asia-Pacific economies, Morgan Stanley said it had recently sent a team in Manila to meet with local analysts and officials and to assess the country’s economic prospects.

"Sentiment was upbeat and we expect the Philippines economy to perform better this year given improving investment and the stronger inflow of remittances from overseas Filipino workers," Morgan Stanley said in its report on the Philippines titled "Cyclical Bull."

It upgraded its earlier forecast on the country’s gross domestic product (GDP) to 5.5 percent this year, which is at the minimum end of the government’s projections. GDP is the total value of goods and services produced domestically.

Morgan Stanley has over $622 billion in managed assets and 600 offices in 30 countries worldwide.

It noted that the country’s exports are on the uptrend and it saw "signs of the pickup in the property market."

The report described the government’s recent and successful implementation of the 12-percent expanded value-added tax (VAT) as "a triumph in the country’s fiscal reform program."

"(The VAT) clears one of investors’ biggest concerns, in our view," the report said.

Morgan Stanley also said it shares the assessment of local policymakers that the peso could further strengthen and help suppress inflation and spur consumption.

Local economists, it noted, are not much concerned by the impact of adjustments in the peso on the country’s exports compared to other economies in the region.

Morgan Stanley did rule out the possibility, however, of the government hiking interest rates due to rising world market prices of crude oil.

"We are bullish on (the peso) in the near-term based on the accelerating economy, strong remittance inflows and the government’s policy stance," the report said.

The Philippines however remains "a structural bear," according to the report as it lacks structural reforms to sustain economic growth.

"The country’s fixed asset investment to GDP ratio is the lowest in the region. Productivity growth is capped. When the global economy turns down, the Philippines may be affected more than its regional counterparts, in our view," it said.

Since remittances from overseas Filipino workers come mainly from the United States and the Middle East, the Philippine economy is particularly sensitive to the vulnerable US consumer market and global commodity market, the report said. — Paolo Romero

http://www.philstar.com/philstar/NEWS200605160403.htm

chixbebe

May 16th, 2006, 09:29 AM

The Makati Business Club will support a new reform initiative being proposed by various sectors of society. It is a five-point proposal that gives a working outline of processes to resolve the country’s political and economic problems.
These matters were discussed at the MBC on Monday.

“We maintain our previous position and we will support those efforts to push for political and economic reforms in our country. The MBC will be part of that movement,” Guillermo Luz, the executive director of MBC, said Monday.

Luz said Charter change is one of the items in the five-point proposal that the MBC is now studying.

“Rushing to change the Constitution will be bad for the country,” Luz said.

“We fear that efforts to alter the Constitution will give more power to a single person, and the current congressional initiatives could elevate to a much higher level methods that will give more opportunity to our leaders to do what they want against the people’s interests,” Luz said.

“With these new proposals, we expect people to get together and speak out,” he added.

Several sectors and civil-society groups are planning to meet in the next two weeks to refine the five-point proposal that will pave the way to economic and political reforms in the country, Luz said.

Christian Monsod, a former chairman of the Commission on Elections, who will be part of the meeting, said the proposal will focus more on drafting a process in finding solutions but less on immediately solving problems and calling for the President’s ouster.

“This gathering will not call for the removal of President Arroyo,” he said. “This will discuss not only Charter change and electoral reforms but also reforms in society.”

The MBC had condemned presidential proclamations that were eventually declared unconstitutional by the Supreme Court recently.

“The core problems lie in the lack of transparency and accountability of our political leaders. Our sad state of affairs is the cumulative effect of controversy and cover-up in the 2004 elections,” the MBC said in an earlier statement.

According to the MBC, these political controversies were compounded by other corruption scandals, which remain unanswered and in which people have not been called to account for their actions.

The MBC added that government actions have already affected investor’s confidence in doing business in the Philippines as revealed by recent investment listings.

By Angelo Samonte, Reporter
http://www.manilatimes.net/national/2006/may/16/yehey/top_stories/20060516top3.html

mygz14

May 16th, 2006, 09:31 AM

The MBC is finally out again after being quiet for almost a year

JAMAICUS

May 16th, 2006, 01:42 PM

Stocks gain 4.8% more to close at 7-year peak

Philippine shares closed yesterday at their highest level in nearly seven years, with the benchmark index notching its best single-day performance since 2001, driven by foreign funds attracted by the country’s improving fiscal and economic outlook, traders said.

The benchmark 30-company Philippine Stock Exchange Index rose 118.93 points, or 4.8 percent, to 2589.17, its best close July 13, 1999, when it ended at 2604.49. Friday, the index rose 4.2 percent.

Yesterday’s rally also marks the biggest single-session point-rise since the index increased 255.13 points on Jan. 22, 2001, the first day after Joseph Estrada was ousted as president in a militarybacked mass revolt on corruption allegations.

The market’s advance yesterday brings the total index gain to 14 percent since the start of the month.

Blue-chip Philippine Long Distance Telephone Co., or PLDT, was the most actively traded stock, rising 6.1 percent to a record closing high R2,255, ahead of the company’s first quarter financial results Tuesday.

Foreign interest played a pivotal role in the market’s substantial gains over the past sessions, analysts said.

The rally staged by Wall Street Friday also provided additional incentive for investors to position in the market, they added. The Dow Jones Industrial Average rose 1.2 percent, while the Nasdaq Composite Index gained 0.8 percent Friday.

JP Morgan in its latest report heralded the current period as the "start of a new era" for the Philippines, saying it has upgraded the country to an "overweight" in both emerging markets and Asia Pacific ex-Japan mandates.

Total volume of shares traded grew to 3.42 billion shares valued at P5.30 billion from Friday’s 3.22 billion shares valued at P4.96 billion.

Foreign investors bought P3.77 billion and sold P2.15 billion worth of shares.

Stocks that drew strong buying interest included Bank of the Philippine Islands, up 4.4 percent at P71.50, Ayala Corp., higher by 9.9 percent at P472.50, and Metropolitan Bank, which gained 11 percent to P47.

SM Prime rose 11 percent to P9 after posting an 8.1 percent on-year increase in first quarter net profit to P1.34 billion shortly before trading ended. Its parent SM Investments gained 5.7 percent to P252.50. Benpres rose 16 percent to P1.18.

Gainers led decliners 69 to 38, while 52 stocks were unchanged. (Dow Jones)

http://www.mb.com.ph/BSNS2006051664087.html

mygz14

May 16th, 2006, 04:23 PM

^^I think this is an article last week.

PSEi 2,460.19 21.46 0.88%.

Other SEA Markets
STI 2,513.70 -21.13 -0.83%
KLCI 959.94 -4.68 -0.49%
SET 761.87 -4.10 -0.54%
JCI 1,427.81 -1.73 -0.12%
VSE 564.52 -25.73 - 4.36

chixbebe

May 17th, 2006, 06:31 AM

By Des Ferriols
The Philippine Star 05/17/2006
http://www.philstar.com/philstar/NEWS200605170702.htm

Standard & Poors (S&P) has expressed optimism that the Philippines’ fiscal consolidation will continue as its evaluation team arrived in the country for its annual credit ratings review.

Team leader Agost Bernard, S&P associate director for sovereign ratings, said yesterday that there is cause for optimism especially since the political instability that momentarily distracted the Arroyo administration had cleared up.

Bernard and his team are scheduled to meet with officials from the Bangko Sentral ng Pilipinas (BSP) to start off the week-long evaluation that Philippine officials are hoping could lead to an upgrade in the country’s credit outlook rating from "stable" to "positive".

Bernard declined to speculate on the outcome of the review but he indicated S&P’s meetings with Philippine officials were starting off on a positive note.

"There is optimism that the fiscal consolidation will continue," he told reporters. "There is a good economic team in place so there is reason to believe that there will be further fiscal consolidation."

More significantly, Bernard said there had been significant improvements in the country’s political situation following the declaration of the state of emergency in February.

"The political situation has improved considerably," Bernard said, adding that it augured well for the Arroyo administration’s efforts to further consolidate its fiscal position.

An earlier analysis by S&P indicated that the credit rating agency was less certain about the country’s political situation, saying that there was "no credible unified opposition to the incumbent, and no credible alternative government."

"Nevertheless, the disruption of any future impeachment effort and general politicking are likely to distract from economic reform. And without more proactive policies and fiscal flexibility to address longer term economic issues, credit improvements are likely to be limited," S&P said in the paper.

In February this year, S&P had upgraded its credit outlook from "negative" to "stable", expressing confidence that ongoing reforms would be sustained.

S&P also affirmed the country’s ‘BB-/B’ foreign currency and ‘BB+/B’ local currency ratings. A stable outlook meant that the country is no longer at risk of downgrade, at least for the time being.

"The stable outlook reflects revised expectations concerning the prospects of policy continuity and adherence to fiscal consolidation, which foreshadows improved chances for overall deficit reduction, and stabilization of the country’s debt dynamics," Bernard said at the time.

Despite the stemming of fiscal deterioration, however, Bernard said the Philippines’ debt service ratio was still one of the highest among rated sovereigns at about 36 percent of revenues.

"The administration’s challenge is to turn the recent fiscal advances into a sustained and expanded trend," Bernard said. "This will require ongoing political commitment, effective implementation and administration of the VAT, and continued reduction of tax evasion."

OtAkAw

May 17th, 2006, 08:35 AM

Saudi to invest US$ 1 trillion in RP
Isnt this a little bit too much? THis amount is larger than their entire economy for a year!(GDP)!

mygz14

May 17th, 2006, 10:01 AM

well, if so, thank you! hehehe... :D

dancethingy

May 17th, 2006, 11:57 AM

BOP posts $2.032-B surplus in Jan-Feb
By Des Ferriols
The Philippine Star 05/17/2006

The country’s balance of payments (BOP) surplus surged further than originally estimated, reaching $2.032 billion in the first two months of the year as the Bangko Sentral ng Pilipinas (BSP) revised its figures to comply with International Accounting Standards (IAS).

The BSP released its revised figures yesterday, adding that the March data would be released on May 26 as it continued to adjust its accounting of the country’s gross international reserves and balance of payments.

The BSP reported that the BOP in February alone was actually $107 million, up from the $104 million originally reported last month. The two-month BOP, on the other hand, went up from the original $2.029 billion.

The BSP said the revisions reflected the adjustments both due to late reports and the effects of the adoption of the IAS particularly regarding the shift to mark-to-market valuation.

The BSP said the cause of the BOP surge was the same, namely the large deposit made by the National Government (NG) from the proceeds of its January bond float amounting to $2.1 billion.

In January, the country’s balance of payments surplus was recorded at $1.925 billion, the highest one-month BOP surplus on record since 2002 as the government deposited the proceeds of its January global and euro-bond issues.

The two-month BOP surplus was almost 80 percent of the whole-year BOP in 2005 recorded by the BSP at $2.407 billion.

The BOP is the sum of the country’s transactions with the rest of the world and a surplus position indicates that the country would have more than enough foreign currency to service its maturing foreign obligations.

A high BOP surplus would give the BSP ample room to support the peso when volatility is high, thus preventing wild fluctuations in the peso-dollar exchange rate.

BSP Governor Amando M. Tetangco told reporters that the BOP surplus in February resulted from the all-time high level of gross international reserves (GIR) of $20.577 billion as dollar inflows also reached record levels due mainly to the Arroyo administration’s heavy foreign borrowing.

Tetangco said the foreign exchange deposits made by the national government represented proceeds from its bond sale in January of $1.5 billion worth of global bonds and $500 million worth of Euro-denominated bonds.

He said the NG also deposited dollar proceeds from its project loans from multilateral and bilateral sources.

"The BOP surplus was also helped by the BSP’s foreign currency operations and investment income," he said. "These inflows were partly utilized to repay the maturing obligations of the NG and the BSP."

The BSP said the GIR as of end-February was up by half a percent compared to the end-January level of $20.480 billion. The current GIR level, according to the BSP, was adequate to cover about 4.4 months of imports of goods and payments of services and income.

At this level, the BSP said the country also had enough reserves equivalent to 3.3 times the country’s short-term debt based on original maturity and 1.8 times based on residual maturity.

Short-term debt based on residual maturity refers to outstanding external debt with original maturity of one year or less, plus principal payments on medium- and long-term loans of the public and private sectors falling due within the next 12 months.

The BSP is projecting the end-2006 GIR to reach $18 to $18.6-billion and as a result, the balance of payments is expected to reach a surplus of at least $1 billion or higher, mainly due to record-high remittances from overseas workers.

Remittances from overseas Filipino workers, according to Tetangco, was expected to reach $11 billion and could possibly go up to as high as $12 billion including the inflows not captured by the banking system.

Gov’t to increase domestic borrowing in Q3
By Des Ferriols
The Philippine Star 05/17/2006

http://www.philstar.com/philstar/NEWS200605170704.htm

Coco oil exports up 33.12% in Q1

dancethingy

May 17th, 2006, 12:23 PM

MANILA (XFN-ASIA) - The government posted a budget surplus of P17.6 billion in April, over five times the surplus it made in the same month last year, due to increased revenue collections and lower expenses, National Treasurer Omar Cruz said.

The surplus helped narrow the budget gap to P50 billion for the first four months of the year from P60.1 billion a year ago.

No monthly target was disclosed after the inter-agency Development Budget Coordination Committee decided to re-adopt a policy of setting quarterly fiscal targets.

Revenues last month reached P95.0 billion, up 10 percent from a year ago while expenditures fell 7.2 percent to P77.4 billion. In April 2005, the government posted a surplus of P3.3 billion.

For January to April, revenues grew 16.1 percent to P300 billion from P258.4 billion a year earlier, while expenditures were up 9.9 percent to P350 billion from P318.5 billion.

April tax collection short of goal

Despite increases in various tax rates, the government’s tax collection in April amounted to P71.3 billion, lower than the P79 billion target for the month, the Bureau of Internal Revenue said Tuesday.

Revenue collected by the BIR accounts for around two-thirds of the government’s total revenue collection.

The news of the weakerthan-target tax collection comes at a time when a team from Standard & Poor’s Ratings Services is in the country to review fiscal and economic developments.

S&P and Fitch Ratings revised their outlooks for the Philippines’ sovereign ratings to stable from negative after the government raised the value-added tax rate to 12 percent in February. The sovereign ratings remain way below investment grade.

Moody’s Investors Service has kept its negative outlook unchanged, awaiting progress in the government’s revenue performance.

Early this month, Ministry of Finance officials said the government may not meet its tax collection target for April as it was too high.

Reports of weak collection in April, which includes the deadline for filing income tax, have spurred calls from politicians for the resignation of BIR Commissioner Jose Mario Buñag.

The presidential office has refused so far, saying it is waiting for Bunag’s explanation for the lowerthan-target collection for the month.

The government enacted revenue-raising measures earlier this year, including broadening the coverage of the VAT, lifting the VAT rate and increasing the corporate income tax rate to 35 percent from 32 percent.

The VAT reforms alone are expected to generate additional P75 billion in revenue this year. These reforms and other fiscal moves are expected to help the government narrow the budget deficit to a target P125 billion, or 2.1 percent of gross domestic product this year. The government hopes to balance the budget as early as 2008. (Dow Jones)

dancethingy

May 17th, 2006, 04:22 PM

Overall, i take this as good news. I think its very good that the government and business community are monitoring the moves of BOC and BIR very very closely, practically putting these bureaus under a microscope. I don't know if maybe the BIR is setting ridiculously high goals for themselves.

Underspending allows for April budget surplus

The government yesterday reported a hefty P17.6-billion budget surplus for April on account of a substantial cut in expenditures, as interest payments on debt and a "pump-priming" scheme slowed down amid poor revenues in what was supposed to be the strongest month for tax collections.

The April surplus was more than five times higher than in the same month last year, and the last time a surplus of this magnitude was recorded was in April 1997 when revenues exceeded disbursements by about P18 billion.

Some analysts saw the surplus as a sign that fiscal reforms - including a broader sales tax - were taking hold in the Philippines, Asia’s largest issuer of sovereign debt after Japan, but not everyone was impressed.

REACTIONS MIXED

"The details were less than stellar - with the Bureau of Internal Revenue (BIR) undershooting its revenue target for April by around 10%," Sin Beng Ong, economist at JP Morgan Chase, said in a note.

Market reaction to the fiscal data was mixed.

Banks bid higher for the 10-year Treasury bond in yesterday’s auction, leading the government to reject the rate.

But the peso rose against the dollar and recovered some of its losses in the past few days. It closed at P52.06, 31 centavos up from Tuesday’s P52.37.

Banks and investors polled by BusinessWorld said the fiscal results were largely expected.

"This is in line with market’s expectations. What the market would be watching out for is sustained revenues and lower budget gaps in the months ahead," said Jonathan L. Ravelas, Banco de Oro market strategist.

"This is really nothing new. The government has proven it can manage its budget well," another dealer said.

SPENDING DOWN

Finance Secretary Margarito B. Teves yesterday said revenues totaled P95 billion for the month, nearly 10% more than last year, while expenses reached only P77.4 billion, 7% lower than in April 2005.

Spending in the first four months of the year rose 10% to P350 billion as the government shelled out for bridges, schools and roads after years of scrimping.

Spending was expected to rise in May and June as Manila accelerates capital investment before the rainy season sets in.

The Finance department was unhappy with the underspending and said this must be examined.

"This is not something we should be comfortable with, because it will mean higher expenditures in May and June," Mr. Teves told reporters in Malacañang yesterday.

"For us at Finance, we have to work harder on the revenue side to handle the maybe higher level of cash disbursements during those months," he added.

Last month, the government reported that the January-March deficit reached P67.6 billion, lower by P4.2 billion from the programmed P71.8 billion for the period.

The government did not underspend then as it spent P272.6 billion in the first three months, higher than the programmed P235.1 billion for the period. The overspending was offset by P13.3 billion in excess collections.

Mr. Teves said expenses were lower because the Budget department did not want to spend unless it°s backed up by tax collections. "The expenditure side had a lower amount to compensate for the shortfall on the revenue side from the BIR," he said.

He said the government would never sacrifice economic growth for good fiscal performance.

COLLECTION SHORTFALL

The country’s chief economic manager acknowledged that the Bureau of Internal Revenue (BIR) fell P7.2 billion or 9% short of the target P78.6 billion. April is supposed to be the strongest collection month because of the yearly income tax deadline.

Income tax collections fell short of target by about P6 billion, reaching only P48.45 billion. Value-added taxes (VAT) also fell off the P11.4-billion target, although slightly, at P10.98 billion.

The only strong points were excise taxes (P4.34 billion versus the P4.03-billion goal), percentage taxes (P4.46 billion versus P3.67 billion), and other taxes (P3.09 billion versus P2.24 billion).

The head of the BIR’s large taxpayers unit, Merlinda Ordoyo, told reporters the agency failed to anticipate a deluge in tax credit claims, which decreased the cash collection. Exporters, for example, can refund taxes or import duties paid for raw materials and use these credits to offset tax liabilities.

Tax credit claims swelled by around P200 million over last year’s tally, Ms. Ordoyo added. Another reason is that the 10,000 biggest firms are now required to withhold a certain percentage from their suppliers and also use the amount to offset tax payments.

Ms. Ordoyo said the BIR even had to ask taxpayers to claim only half of their tax credits, which have a life of up to ten years, to shore up cash collections.

Companies which had a net loss in previous years, meanwhile, availed of the minimum corporate income tax rate of only 2% of gross sales, BIR Deputy Commissioner Lilian B. Hefti said.

As a result of the huge BIR shortfall, Mr. Teves ordered an audit of companies reporting a sharp decline in sales or net income, as well as an inventory of all tax credit certificates.

"We need to do that to be able to anticipate how much still is going to be presented to offset the cash tax payment. The truth is we don’t still have those numbers that is the reason why we need to improve on our database as well as our monitoring system," Mr. Teves admitted.

CUSTOMS ALSO SHORT

The Bureau of Customs also fell short of expectations, reporting a P16.3-billion collection, or lower than the P16.5-billion target. This broke three consecutive months of collection surpluses.

Earlier, Customs Commissioner Napoleon L. Morales reported a surplus for April, but the Bureau of the Treasury discovered that it had double-counted P180 million in March and wanted to take the amount off the April tally.

But Mr. Morales told reporters as far as his figures are concerned, Customs collected P16.58 billion or a surplus of more than P60 million for the month.

The Treasury, meanwhile, earned P4.8 billion, 2% higher than last year and 10% more than the target.

Despite poor collections, revenues still exceeded disbursements as interest payments went down by 8% over last year at P24.7 billion. Other expenses also declined by 9% at P34.9 billion.

For the first four months of the year, disbursements exceeded revenues by P50 billion, 70% less than the P60 billion recorded in the same period last year.

Economist Victor Abola of the University of Asia and the Pacific said the hefty budget surplus for April was not surprising since this was the trend in previous years. It was only in recent years that there was no surplus in April because of the country°s poor fiscal situation.

Even if tax collections fell below expectations, the decline in interest payments is still good news since this is an indication of better debt management, Mr. Abola said.

With the help of more VAT revenues, the Arroyo administration wants to narrow the deficit to P125 billion or only 2.1% of gross domestic product this from P146.5 billion or 2.7% of economic output in 2005, on the way to a balanced budget by 2008. The VAT was imposed on oil and power last November to expand the tax base. -- reports from Felipe F. Salvosa II, Judy T. Gulane, Karl Lester M. Yap and Reuters

sugbuanon

May 17th, 2006, 07:11 PM

RP's improved S&P ratings due to economic reforms of government

MANILA - A government official on Wednesday said the improved rating given by a major debt-rating agency in the credit quality of the Philippines was due to new economic reforms being implemented by the Arroyo administration.

Department of Finance (DOF) Secretary Margarito Teves in a press briefing in Malacanang said Standard & Poor (S&P) has placed the Philippines on a stable outlook from negative earlier this year because of the improvements in tax collection.

It said the Philippines’ fiscal performance in the first quarter of the year was better than expected because of the increase in revenue collections, but hinted that an upgrade may not be in the horizon as politics was stalling economic reforms.

Teves explained S&P and other ratings agencies take more time in upgrading an issuer’s credit ratings, but their downgrades come swifter.

S&P said the Philippines is on a stable outlook but may not expect an upgrade anytime soon. It may hope for an upgrade only when the outlook on its debt ratings turns positive.

It said the Philippine government would easily meet its fiscal targets for the year, but its fiscal outlook remained weak.

The agency attributed the improvements in the Philippines’ fiscal performance to the increase in tax collections resulting from its decision not to lower the value-added tax on oil.

“The deficit for the year should be met easily, but the fiscal outlook remains weak,” it said.

“This stems from a need to increase spending, especially capital expenditure to lift future growth prospects even as revenue increases,” it added.

S&P further said the Philippines’ interest rates had not been increasing as much as it was in other countries because of the lack of demand from manufacturers and the absence of wage pressures.

“This pause in raising lending rates should boost domestic growth, and higher remittances support external liquidity,” it said.

Teves said the Philippines' outlook can be improved further by making sure that fiscal economic programs are on track.

He said the government is also keen to bring down its deficit to zero by 2008.

National Economic and Development Authority (NEDA) Deputy Director General Nestor Mijares, on the other hand, sees a brighter prospect for the Philippines this year "provided the continued measures of fiscal consolidation, inflation control and policy directives to sustain economic growth are implemented as planned."

The government remains committed to its goal of balancing the national government budget by 2008.

He said the passing of four priority bills -- Personal Equity and Retirement Account, Investment Company Act, Lending Company Regulation Act, and the Credit Information System Act -- will further strengthen programs and projects of the government to sustain economic growth.

Raising the country's savings rate to 25-30 percent by 2010 will also be a priority to support an investment to the gross domestic product (GDP) target of 28 percent, Mijares said.

sugbuanon

May 17th, 2006, 07:12 PM

NEDA cites gains in RP's economy

MANILA - Contrary to the popular impression that the times have been getting harder and harder for Juan de la Cruz, the National Economic and Development Authority (NEDA) reported Wednesday that the economy has, in fact, been improving since 2001.

"From 2001 to 2004, the economy has been on the uptrend. Despite the difficulties (experienced) in 2005, the Gross Domestic Product (GDP) grew by 5.1 percent while the Gross National Product (GNP) grew 5.7 percent," NEDA Deputy Director General Nestor Mijares told a press briefing in Malacañang this afternoon.

The growth posted by the GDP and the GNP can be attributed to the strong fiscal measures put in place by the Arroyo government including the Reformed Value Added Tax (R-VAT) Law and the dollar remittances of overseas Filipino workers (OFWs), he said.

Mijares pointed out that fiscal reform measures undertaken by the Arroyo administration have led to the lowering to manageable levels of the budget deficits of the national government and the public sector.

Aside from the growth posted by the GDP and GNP, there are several other indicators of the strong showing of the Philippine economy, the NEDA official said.

Among these indicators are: the strengthening of the peso, lower inflation rates, the historic high of foreign currency reserves, record tourist arrivals, and the strong growth in service export industries specifically business process outsourcing and call centers.

Other indicators include: the roll-on-roll-off (Ro-Ro) Nautical Highways system which has greatly facilitated sea transport and have reduced travel costs and the liberalized telecommunications and Voice Over Internet Protocol (VOIP) which has significantly trimmed down the cost of communication.

Mijares said the revival of interest and investments in the mining industry has created 23 new and expanded mining projects generating 9.7 million in investments and creating over 5,000 jobs.

All these indicators, he said, have contributed to the "improvement in the confidence of investors (in the country) which can be seen in the increase in Foreign Direct Investment (FDI) as well as Foreign Portfolio Investments."

Mijares added that the incidence of poverty is "subsiding."

He admitted, however, that a lot remains to be done. These include:

Enactment of priority bills needed for sustained economic growth.

Accelerating and sustaining macroeconomic growth through fiscal and financial reforms.

Upgrading transport, tourism and digital infrastructure to decentralize development.

Stepped-up development of agri-business and promoting entrepreneurship via Small and Medium Enterprises (SMEs). Supporting such priority sectors as infrastructure, Information Technology (IT), automotive, electronics, mining, healthcare, tourism, housing and shipbuilding; and Pursuing energy independence and competitive power rates.

chixbebe

May 18th, 2006, 09:11 AM

BY LEE C. CHIPONGIAN
http://www.mb.com.ph/BSNS2006051864323.html

The National Government reported a budget surplus of P17.6 billion in April – the first time this year, while the four-month fiscal deficit reached P50.1 billion, lower compared to the same period in 2005.

The surplus was due to a lower expenditure profile of P77.4 billion from P83.4 billion last year while revenues rose 9.6 percent to P95 billion from P86.7 billion.

Of the total revenues the Bureau of Internal Revenue collected P71.4 billion, off its target of P78.6 billion by P7.2 billion because of difficulties collecting the income tax for April, explained BIR Deputy Commissioner for Legal Lillian Hefti. At the same time the large taxpayers group also availed of tax credits worth P200 million for the month.

Finance Secretary Margarito B. Teves said the surplus was mainly due to the lower actual disbursements during the period, masking the BIR tax collection shortfall.

"We have a revenue shortfall but it was largely isolated to income tax. But this does not mean that we will end all efforts there. (For the year) we have no intention of revising targets – we still to it (P872 billion) because we need money to finance our pump priming," Teves told reporters yesterday.

As for the expenditure side, the DoF chief said government spending would be higher for May and June since agencies have to pursue pump priming activities. However he also emphasized that revenue collection will improve in the coming months with the implementation of several measures to boost revenues.

For the January-April period total revenues reached P300 billion, 16.1 percent more when compared to the same period last year of P258.4 billion. Total expenditures on the other hand, was P350 billion or 9.9 percent higher from last year’s P318.5 billion.

For April BIR’s P71.4 billion collection was up 13 percent from last year of P63.1 billion. The Bureau of Customs collected P16.3 billion in April from P16.1 billion the year before.

On the other hand NG interest payments on its loans declined 8.3 percent to P24.7 billion because of lower interest rates.

Netting out the interest payments in the expenditures, the government recorded a primary surplus of P42.3 billion for the month, 40 percent higher from P30.3 billion last year. In the meantime the first four-month primary surplus totaled P78.5 billion, which is 50.1 percent more from 2005’s P52.3 billion.

"We are working very hard to quickly implement the measures that we have identified to achieve our revenue targets for the year," said Teves.

JustHorace

May 18th, 2006, 02:45 PM

Palace: Poverty down, economy up
By Paolo Romero
The Philippine Star 05/18/2006

Malacañang painted a rosy picture of the economy yesterday, saying poverty is declining and investments are up despite the latest surveys showing that hunger among Filipinos was hitting record highs.

At Malacañang, Nestor Mijares, National Economic Development Authority deputy director general, gave a briefing presented earlier to President Arroyo and the entire Cabinet that also showed the country’s deficit levels were heading down while currency reserves were at a record high.

The presentation came as economic managers met with officials of Standard & Poor’s rating seeking a possible upgrade in the country’s credit rating.

"Poverty is subsiding," Mijares said. "Between 2000 and 2003, poverty incidence or the proportion of the poor declined from 33 percent to 30.4 percent among population and from 27.5 percent to 24.7 percent among families."

He said those at the subsistence level, or living just above poverty, had also declined, reaching 13.8 and 10.4 percent among populations and families, respectively.

"Apart from economic growth, the improvement in poverty condition is attributed to the government’s successful efforts in controlling prices of commodities purchased by the poor and the improved distribution of household income during the same period (2000-2003)," he said.

Mijares said the country’s annual per capita poverty threshold reached P12,475 in 2003, up by 7.1 percent compared to the 2000 level of P11,451.

Thus, a family of five should have an income of at least P5,111 a month to be able to sustain their minimum basic needs, he added.

Mijares said the annual per capita food threshold increased from P7,707 in 2000 to P8,134, up by 5.5 percent during the period.

Since 2001, the national government deficit has been reduced to manageable levels or from a high of 5.3 percent of Gross Domestic Product (GDP) or P210.7 billion in 2002, down to 2.7 percent of GDP or P146.8 billion in 2005, he added.

Mijares said net foreign direct investments in 2005 amounted to $1.1 billion, exceeding the projected level of $971 million. Foreign portfolio investments for the full year last year resulted in a net inflow of $3.99 billion.

Tourist arrivals for the first quarter of the year exceeded 700,000, indicating that a full-year target of 3.07 million visitors with $22.98 billion in receipts and 3.74 million employment generated would be met, he added.

The latest survey of the Social Weather Stations (SWS) released earlier this month showed that the percentage of households reporting having experienced hunger, "with nothing to eat at least once in the past three months," had reached a new record high of 16.9 percent in March 2006, equivalent to 2.8 million families and surpassing the previous peak of 16.7 percent in December 2005.

"Severe Hunger," defined as families going hungry "often or always" in the last three months, was at 4.2 percent in March 2006, or almost 700,000 families, the SWS said.

dancethingy

May 18th, 2006, 06:26 PM

April budget surplus of P17.6B biggest in 9 yrs
By Des Ferriols
The Philippine Star 05/18/2006

The country posted a budget surplus of P17.6 billion in April, the biggest in nine years and a dramatic 428-percent increase from the P3.3-billion surplus recorded in the same period last year, thanks to higher revenue collections and lower expenses.

The Department of Finance (DOF) said yesterday the April figure brought the budget deficit for the first four months of the year to P50 billion, a 16.9-percent improvement over the P60.1-billion deficit recorded in the same period last year.

"Disbursements were so much more controlled in April. Our cash position remains very strong (so) we will spend more in May and June," National Treasurer Omar Cruz said yesterday.

The April budget surplus was the highest since April 1997’s P18 billion. It was also the first time that revenue exceeded spending since September 2005.

The budget surplus "shows the government’s efforts to address the fiscal problem is on track,"said Luz Lorenzo, an economist at ATR-Kim Eng Capital Partners. "The thing that most investors are looking at this year is the implementation of fiscal reforms, that’s why they are closely watching the monthly numbers."

April is the annual deadline for filing of corporate and income tax returns and for that month alone, the DOF reported that the collections of the Bureau of Internal Revenue (BIR) reached P71.4 billion.

The amount is 13 percent higher than last year’s collection of P62.9 billion but P7.4 billion short of the April target set by the DOF.

According to Finance Secretary Margarito B. Teves, however, there was an unexpected increase in the utilization of tax credit certificates (TCCs) in April to offset income tax payments at the end of the fiscal year.

Teves characterized the increase in TCC use as "significant" and admitted the government was at a loss as to exactly how much TCCs were in circulation that could potentially erode future income tax collections.

Nevertheless, Teves said there was still a surplus in April largely due to the decline in spending as the Arroyo administration continued to use the 2005 reenacted budget.

Actual disbursement, according to Teves, reached only P77.4 million, seven percent lower than the same period last year when total spending amounted to P83.4 million.

Total revenues, on the other hand, were 16.1 percent higher than last year, amounting to P300 billion compared to P258.4 billion over the same four-month period in 2005.

On the other hand, total spending amounted to P350 billion for the first four months, up 9.9 percent compared to last year’s P318.5 billion. Teves said that aside from the slowdown in spending, interest expense was also significantly lower this year at P24.7 billion for April alone, compared to last year’s P26.9 billion.

According to Teves, the government is expecting a surge in its public spending in May and June as the Arroyo administration embarks on its pump priming activities.

"We will be spending a lot more in the next two months so we have to make up for the shortfall of the BIR this month and make sure we do not repeat the same thing next month," Teves said. "We will have to push this from the revenue-site because we can not sacrifice growth by cutting further back on our spending."

Teves said the DOF intends to rationalize the use of TCCs for the rest of the year and taxpayers who declared huge declines in gross receipts and income would be audited by the BIR.

Teves said the DOF also intends to intensify its campaign against tax evasion including a crackdown on professionals for unethical practices.

"With these measures, we are confident we will be able to meet the goal of narrowing the budget deficit to P125 billion this year and achieving a balanced budget by 2008," he said. –With AFP

Gov't raises P16.1B in Q1 from new VAT, better than target
Posted: 6:08 PM | May 18, 2006

Cecille Yap
XFN-Asia

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THE GOVERNMENT raised 16.1 billion pesos from the new value-added tax (VAT) in the first quarter, 600 million pesos higher than its target of 15.5 billion for the period, the Department of Finance said.

Of the total, the Bureau of Customs collected 11 billion pesos or 1.2 billion higher than its goal due to increased import volumes and higher oil prices.

The Bureau of Internal Revenue (BIR) on the other hand failed to meet its VAT collection goal.

BIR revenues from VAT in the first quarter totaled 5.1 billion pesos, or 500 million pesos lower than target due to reduced oil output and lower yields from the input VAT cap and crediting.

The new VAT law which took effect last year expanded the coverage of the consumption tax to include oil, power and other previously-exempt sectors in November. In February, the VAT rate was raised to 12 percent from the previous 10 percent.

chixbebe

May 19th, 2006, 07:55 AM

By Des Ferriols
The Philippine Star 05/19/2006
http://www.philstar.com/philstar/News200605190402.htm

Businessmen are more optimistic about the country’s economic prospects over the next two quarters but still fear insufficient market demand might hamper business expansion plans and stall job growth.

The economy is expected to grow this year but the survey conducted by the Bangko Sentral ng Pilipinas (BSP) indicated that the business sector was concerned about stiff competition and there was also growing pessimism over what businessmen characterized as unclear economic laws.

The BSP disclosed yesterday the results of its quarterly Business Expectation Survey (BES) in which, according to officials, optimists in the business sector have outnumbered pessimists for three quarters in a row after a slump in the third quarter of 2005.

BSP deputy governor Diwa Guinigundo said businessmen in Metro Manila were more optimistic than their counterparts in regions outside the capital but there was a general perception of better times ahead up to the third quarter of the year.

"This survey is one of the tools we use to get a feel of what expectations are in terms of business expansions, market demand build-up and the overall plans of the business sector," Guinigundo explained. "Of course there are other macro-economic factors we consider but this captures perception going forward."

In the latest BES, the BSP said a total of 937 firms out of the top 500 corporations were asked about their sentiments and expectations for the second and third quarter of 2006.

Compared to the BES results in the first quarter of the year, Guinigundo said more firms were optimistic although there was a decline in optimism over the second quarter compared to the BES results of the first quarter.

"That means that when businessmen were asked in the previous quarter what they believed their prospects were in the second quarter, more of them were optimistic at the time," he said. "When we asked them again what they think now, less of them were optimistic, since they now have more information about the quarter."

The BES results indicated that the so-called diffusion index showed an improvement in expectations for the second and third quarter and businessmen expected an improvement in the volume of their business activity with the overall index rising by 15.3 points.

The volume of business activity was expected to further improve in the third quarter but the BES indicated that fewer firms believed this to be true as the index climbed by only 5.4 points.

However, Guinigundo said there was continued pessimism among businessmen over access to credit from financial institutions although there was a slight improvement in the pessimism level from -5.5 percent in the previous survey to the current -3.5 percent.

On the other hand, Guinigundo said the business sector expected their capacity utilization to remain largely unchanged at 75 percent of total capacity, a clear indication that despite the economic growth, local manufacturing is not growing by leaps and bounds.

Significantly, the survey also showed that although local firms expected to hire more people in the coming quarters, fewer of them intended to do so compared to when they were asked earlier this year.

This was an indication that employment would not grow as originally expected.

The BES showed that businessmen attributed their optimism to increased consumer spending towards the reopening of classes in June and the continued stability of the peso as well as stronger export earnings.

However, they expect constraints that could hamper expansion plans, namely stiff competition, insufficient market demand, unclear taxation laws and tight financial conditions.

beads_strawberries

May 19th, 2006, 08:25 AM

^ The stability of the economy gives our traders confidence in terms of putting their investments in this country. They have seen that the government is hell bent in pursuing effective economic reforms which proves to be useful to our present situation.

Blackraven

May 20th, 2006, 12:47 PM

Isnt this a little bit too much? THis amount is larger than their entire economy for a year!(GDP)!

$1 trillion, in US dollars?

1,000,000,000,000 x 50 (nearest estimate) = 50 trillion pesos (at least)

I find it hard to believe. It must be 50 billion pesos (or something like that).

sugbuanon

May 20th, 2006, 06:27 PM

PGMA: Growing global confidence moving country's blueprint for economic takeoff

MANILA - President Gloria Macapagal-Arroyo said Saturday the growing investors' faith and confidence in the country and the Filipino people is moving the blueprint for the country's economic takeoff.

In her message during the inauguration this morning of the Hinduja Technology Media and Telecommunications (HTMT) Ltd. Contact Center Facility in Barangay Ugong Norte in Quezon City, the President noted that the growing global confidence in the country was due to the implementation of fiscal and economic reforms.

"Our tough fiscal reforms and revenue generating measures are reaping a tide of confidence and investments and the social payback is starting to flow down to the people," she stressed.

"Our blueprint for economic takeoff is on the move on the back of growing global confidence in the Philippines," she added.

According to her, an apt example of investors’ faith in pouring in investments in the Philippines is India’s HTMT which invested some $ 25 million and created 2,500 jobs for Filipinos.

"I thank HTMT for the continued faith and confidence in our administration and in our people," the President said as she vowed to "continue doing our best to meet your expectations in the Philippines."

The President added that the inauguration of the HTMT's 10,000-square meter state-of-the-art facility came at a time when the Bangko Sentral ng Pilipinas (BSP) said that companies "expect better times ahead."

She noted that the Philippine economy indeed has taken off as the country posted its biggest budget surplus in the last nine years on the back of the hefty P16-billion additional revenues from the implementation of the Reformed Value Added Tax law.

"Analysts affirm that we are on track in our economy aside from the positive outlook of business surveys," the President said.

The HTMT is a growing global conglomerate operating in 50 countries spanning five continents. It currently delivers its services to the Fortune magazine’s top 100 companies.

"The Philippines is fast emerging as the world's favorite call center destination with its vast pool of human resources that have superior proficiency in the English language and a very supportive government," HTMT co-chairman Remi Hinduja said.

Department of Trade and Industry records show that Business Process Outsourcing (BPO) firms in the Philippines grew at an annual average of about 160 percent between 2001 and 2004 and amounted to about $ 1.655 billion in 2004.

The BPO industry in the country aims at creating a total industry worth $ 10 billion in 2010.

The Arroyo administration has been very supportive of the BPO industry by offering call center scholarships worth P500 million.

The President has instructed the Department of Education to make the English language as the medium of instructions in elementary and high schools to "increase the hiring rate" of BPOs and call centers.

marites4

May 20th, 2006, 07:02 PM

good news^
Bopols erap shouldn't have removed it in the first place just to accomodate him.

sugbuanon

May 21st, 2006, 03:26 AM

Mindanao export revenues increase by two-fold

The upbeat trade of coconut and rubber industries in the global market took off Mindanao export revenues, breaching the one-billion mark from $ 810 million in 2004 to $ 1.7 billion in 2005.

Agriculture Assistant Secretary Clayton Olalia during the Mindanao investment forum on rubber and coconut industries on Friday cited the coconut industry contributed $ 563.5 million, while rubber contributed $ 39 million in export revenues, accounting for a total of $ 602.5 million.

He said that Mindanao contributed the majority - or 58 percent at 8.6 million tons - of national coconut production annually with the biggest produce coming from Regions XI, IX and Autonomous Region in Muslim Mindanao (ARMM).

Region XI coconut production was placed at 2.5 million metric tons (MT), Region IX, 1.64 million MT and ARMM, 1.17 million MT.

Olalia said the Philippines' total coconut exports last year amounted to $ 854 million where major products include the following: coconut oil (crude and refined), desiccated coconut, copra meal, coco shell charcoal, coco coir and fiber and coconut food products, among others.

In addition to the traditional products are the breakthroughs of additional coconut produce such as the virgin coconut oil, coco coir and coco flour, according to Olalia.

He said the coconut export revenues is expected to further increase, citing that $ 191 million was accounted for the first quarter of this year which is seven percent more than the $ 178 million revenues the same period last year.

He said that the agriculture department has set a goal to develop two million hectares of new agribusiness lands by 2010 and about 1.35 million hectares is allocated for coconut farms and most of which is in Mindanao.

As to the rubber industry, Olalia said through the years, Mindanao has been the major and dominant player producing 99 percent or 315,540 tons last year valued at P8.28 billion at current prices.

Last year's total rubber output of 315,640 tons is one percent higher than that in 2004. Almost all of the country's rubber farms are in Mindanao.

Olalia said the Department of Agriculture along with the Philippine Rubber Industry Association (PRIA) would intensify rubber planting in Mindanao where half a million hectares of land are found suitable to grow rubber trees.

However, he said they need to seek the approval of the Department of Environment and Natural Resources (DENR) to lease the lands as most of the 500,000 hectares suitable areas are either government-owned or ancestral land.

He said they would entice more foreign and local investors to invest in the rubber industry.

Aside from rubber plantations, investors could also engage in the setting up of modern rubber processing plants that are capable of producing quality semi-finished or value-added natural rubber.

PRIA has estimated that investments would amount to about P180,000 per hectare of land for rubber planting and several millions of pesos to set up a processing plant.

"We may still have many problems in Mindanao and in the whole country, but certainly, we see many good things happening that point to a sustainable economic turn-around and recovery," Olalia said.