Local firms see bright future in chip designing

By Abigail L. Ho
Philippine Daily Inquirer
First Posted 22:05:00 02/23/2010

LOCAL companies seek to make the Philippines known not only as a chip-manufacturing location, but also as a chip-design destination.

According to Robert Minguez II, president and senior design engineer of Xinyx Design, Filipino engineers are more than capable of performing highly specialized and high-value services for the semiconductor industry.

“Our goal is to keep our competencies and encourage jobs locally for our engineering graduates,” he said in a statement issued Tuesday, adding that the Philippines could very well host an integrated circuit design industry.

Xinyx is composed mainly of former IC design engineers of Intel Corp., which closed its Philippine manufacturing facility in Cavite last year. The company does outsourced design and layout services for US-based memory chip firms.

Another local IC design firm, Apac IC, has joined forces with US-based Synopsys Inc. for the adoption of a custom designer tool for its layout engineers.

“We want to grow our IC physical design business and contribute to establishing the Philippines as a center of semiconductor excellence,” Apac IC president and chief executive Jerome Avondo said. “We want to leverage on the Filipino talent and resources, which provide excellent value and high-quality work, with no long lock-in periods.”

He related that for several years now, Filipino software engineers were responsible for around 70 percent of flash memory design work for huge global companies, with these chips being used by tech bigwigs such as Nokia, Samsung, and Blackberry.

“A lot of people are excited about the features of these phones, but they do not realize that a good chunk of it was done by Filipinos here in the Philippines,” he said.

Filipino firm Golf Electronics Corp. is also helping make a name for the Philippines in the global tech arena with the development of cost-saving wired devices such as keyboards, mouse, game controllers, and PC remotes and converting these into wireless.

^^ AYAN ANG MAGANDA!!
it will really help in the industrialization of the country, hinde lang puro taga manufacture....

Xinyx Design and Apac IC- medyo aabangan ko yang pangalan na yan in the near future. :D

“Our goal is to keep our competencies and encourage jobs locally for our engineering graduates,” he said in a statement issued Tuesday, adding that the Philippines could very well host an integrated circuit design industry."

"Xinyx is composed mainly of former IC design engineers of Intel Corp., which closed its Philippine manufacturing facility in Cavite last year. "

Blessing in disguise pa yung nagclose ang INTEL PLANT, at least naging independent na ang Filipino Engineers.
i'm excited for these companies.. sana maging successful sila.. comparable to the chip designers ng Taiwan Semiconductors. :D

R&D AGRI industry + integrated circuit design industry
ANOTHER QUATERNARY SECTOR addition to the industries of the Philippines. on the way to Industrialization na tayo! hehe well slowly.. but surely,i hope.. :D

and some people say that manufacturing insudtry is the key to industrialization.. well i think not, it is the "technology R&D industries" like these above which is a key to a country's industrialization. :D

WOOOHOOOO!! Finally, a Filipino CHIP DESIGNER COMPANY!

Election spending to boost Q1 growth

By Ronnel Domingo
Philippine Daily Inquirer
First Posted 19:51:00 02/24/2010

ELECTION SPENDING SHOULD boost the country’s economic output at a faster rate in the first quarter this year compared to the previous quarter, according to the investment banking unit of Barclays Bank.

In a 14-page report on the Philippines, Barclays Capital said that in the 2004 and 2007 elections, growth accelerated in the quarter preceding the polls.

“This was on account of election-related spending, with the domestic demand getting a boost, particularly investment and private consumption,” the paper said.

“We also show the experience in 2001, although that election was over-shadowed by the 2000-01 global recession,” it added.

Also, Barclays Capital puts a 60-percent probability that a fully automated ballot count will only be partially successful—meaning that authorities may have to rely on manual counting that would delay the proclamation of winners.

Such a scenario would initially dampen the financial market, but this sentiment would turn around once the election process is completed, the bank said.

Further, Barclays capital sees a 30-percent probability that the first-ever automated elections will sail smoothly, with credible results.

“Once the new president is sworn in, financial market participants will be keen to see the composition of the new Cabinet members and will be interested to hear the new administration's fiscal policy,” it added.

On the other hand, there is a 10-percent probability that the elections will fail completely, to which the market's reaction would be “very negative.”

The National Economic and Development Authority also expects election spending to help the economy regain momentum amid confidence that the worst of the global financial crisis over.

Dennis M. Arroyo, director of Neda's national planning and policy staff, said a study based on the 2007 national elections suggests that election spending accounts for an additional 0.34-percentage-point push on growth.

In a separate research issued in January, think tank GlobalSource Partners said that while election-related spending is often cited as a possible growth driver, it expects “a political business cycle...with effects masked by domestic or regional crises,” citing as examples the power crisis that ushered in the Ramos administration in 1992, and the Asian financial crisis and El Niño drought that welcomed the Estrada administration in 1998.

Even then, GlobalSource admits some evidence of elections driving GDP growth in recent national polls under the Arroyo administration.

GlobalSource notes that apart from boosting particular industries, such as publishing and print and broadcast media, elections tend to line the pockets of consumers with cash through proliferation of election-related jobs and handouts.

^^ AYAN ANG MAGANDA!!
it will really help in the industrialization of the country, hinde lang puro taga manufacture....

Xinyx Design and Apac IC- medyo aabangan ko yang pangalan na yan in the near future. :D

“Our goal is to keep our competencies and encourage jobs locally for our engineering graduates,” he said in a statement issued Tuesday, adding that the Philippines could very well host an integrated circuit design industry."

"Xinyx is composed mainly of former IC design engineers of Intel Corp., which closed its Philippine manufacturing facility in Cavite last year. "

Blessing in disguise pa yung nagclose ang INTEL PLANT, at least naging independent na ang Filipino Engineers.
i'm excited for these companies.. sana maging successful sila.. comparable to the chip designers ng Taiwan Semiconductors. :D

R&D AGRI industry + integrated circuit design industry
ANOTHER QUATERNARY SECTOR addition to the industries of the Philippines. on the way to Industrialization na tayo! hehe well slowly.. but surely,i hope.. :D

and some people say that manufacturing insudtry is the key to industrialization.. well i think not, it is the "technology R&D industries" like these above which is a key to a country's industrialization. :D

WOOOHOOOO!! Finally, a Filipino CHIP DESIGNER COMPANY!

that seems to be the trend now, fab-less chip companies. AMD followed that route when it spun off its foundries into a separate company called Global Foundries. ARM too.

^^ AYAN ANG MAGANDA!!
it will really help in the industrialization of the country, hinde lang puro taga manufacture....

Xinyx Design and Apac IC- medyo aabangan ko yang pangalan na yan in the near future. :D

“Our goal is to keep our competencies and encourage jobs locally for our engineering graduates,” he said in a statement issued Tuesday, adding that the Philippines could very well host an integrated circuit design industry."

"Xinyx is composed mainly of former IC design engineers of Intel Corp., which closed its Philippine manufacturing facility in Cavite last year. "

Blessing in disguise pa yung nagclose ang INTEL PLANT, at least naging independent na ang Filipino Engineers.
i'm excited for these companies.. sana maging successful sila.. comparable to the chip designers ng Taiwan Semiconductors. :D

R&D AGRI industry + integrated circuit design industry
ANOTHER QUATERNARY SECTOR addition to the industries of the Philippines. on the way to Industrialization na tayo! hehe well slowly.. but surely,i hope.. :D

and some people say that manufacturing insudtry is the key to industrialization.. well i think not, it is the "technology R&D industries" like these above which is a key to a country's industrialization. :D

WOOOHOOOO!! Finally, a Filipino CHIP DESIGNER COMPANY!


matagal nang merong chip design companies sa pinas, 20 years ago meron na. Nag re reverse engineer na din nga tayo ng chips, isa yung ROHM. Pero japanese owned.

Sobrang baba magpasahod ng mga yan. Kaya yung mga designers nag a abrod. Yan nga ang problema sa pinas, sobrang baba ng pasahod, pano magtyatyaga ang mga magagaling nating engineers?
:bash::bash:

^^ kasi foreign companies ang may hawak..
eto.. FILIPINO owned na. :D
and we can call it FILIPINO TECHNOLOGY.. not Jap-tech, anymore..

but.. yes mababa talaga compared to foreign companies.. and it is a big challenge for them. just hope they can manage it very well, after all the Future of Philippine Chip technology relies on them.. dpat ata maki merge na lang sila kay MR. AYALA para maging competitive sila. hehe :D

that seems to be the trend now, fab-less chip companies. AMD followed that route when it spun off its foundries into a separate company called Global Foundries. ARM too.

yep, you are right. Cause they are actually separating the high-tech industries already from manufacturing. it is a way for them to keep the Technology within the country, and keep the high paying jobs, while they offshore manufacturers.

dapat hindi lang isa. dapat marami. Kase parang dead-end job ang mga ganyang trabaho pag iisang kumpanya lang, kawawa yung mga empleyado. Mas maganda parang tulad ng BPO's na maraming choices ang mga chip designers. Hirap kase pag kokonti lang ang kumpanya,kontrolado nun kumpanya ang pasahod, dahil walang lilipatang iba yung mga tao.

Mas maganda marami pang kumpanya sa pinas ang mag venture into chip design and reverse engineering.

Then ang manufacturing within pinas din, hiring local workers.

^^ who knows.. this could be just the start? dba? :D
the one person i'm waiting for some action is Mr. Ayala.. he is actually venturing heavily on Filipino technologies. one proof is the UP R&D tech park he invested. With his help the industry could be more competitive.

Remember Taiwan.. they also started as small start up companies.. right now they are one of the biggest and most successful in the world.

but yea.. once na naging successful ang Chip industry sa Pinas.. these Filipino Owned Companies would have "the say" to keep the manufacturing based in it's own country. And i hope they do stay to provide jobs for the people.. that's the advantage of having your own technology... rather than subcontracting from foreigners.

LET'S CROSS OUR FINGERS! :D

Arroyo: Nautical highway behind tourism boom in Visayas

By Irene Sino Cruz
Philippine Daily Inquirer
First Posted 21:37:00 02/24/2010

TAGBILARAN CITY, Philippines –President Macapagal-Arroyo said on Wednesday her nautical highway program has spurred development in Central Philippines by effectively opening them up to tourists.

The President said her administration’s decision early in her presidency to open up other areas in the country for development was largely responsible for the growth of tourism in the countryside.

The President showcased her administration’s achievement for the Central Philippines Super Region in a briefing held on board the fastcraft Supercat 2 during a trip from Cebu City to Tagbilaran City Wednesday afternoon.

The Central Philippines Super Region is composed of Regions 4-B (Southern Tagalog), 5 (Bicol), 6 (Western Visayas) 7 (Central Visayas), 6 (Eastern Visayas), and the Mindanao islands of Camiguin and Siargao.

Ms. Arroyo said that the implementation of the nautical highway project, which included the rehabilitation of roads, seaports and airports, corrected the inequitable distribution of projects that were mostly focused on Metro Manila.

The project enabled the country’s tourism industry to grow considerably, Ms. Arroyo said.

Although the tourist arrivals declined by 8.5 percent worldwide in the first half of 2009, the country’s foreign tourist arrivals grew by six percent, based on the data provided by the World Travel and Tourism Council (WTTC).

The Department of Tourism also reported that foreign visitors’ volume reached 3.14 million in 2008, higher than the 1.8 million foreign tourists in 2001.

The National Statistical Coordination Board also disclosed that the tourism industry employed 3.8 million people or 11 percent of the 34.53 million employed.

The President also noted that the tourism industry accounted for nine percent of the country’s gross domestic product in 2008. The tourism industry contributed $11 billion to the 2008 GDP while overseas Filipino remittances reached $15 billion and the business process outsourcing (BPO) sector generated $6 billion in earnings.

Meanwhile, the GDP of Central Philippines expanded by 38 percent from P226.3 billion in 2000 to P313.16 billion in 2008.

But she also stressed the importance of protecting the environment as a way of sustaining the growth of the tourism sector.

“We have to embrace the concept of sustainable economic model. There is no contradiction between the clean environment and economic development,” Ms. Arroyo said.

In Central Philippines alone, she said about 100 marine reserves were established to protect the marine resources, a major tourist attraction.

The nautical highway project, which was implemented in 2003 and completed in 2006, brought down transport costs by as much as 65 percent, opened up new markets for agricultural products, increased tourists and helped boost the logistics industry, Transportation and Communications Undersecretary Aneli Lontoc disclosed during the briefing.

A briefing paper lists downs massive investments in tourism-related infrastructure in Central Philippines since 2001, including 42 airport projects worth P27.31 billion, 108 ports (P8.76 billion), 145 municipal ports (P1.23 billion)and P54.14 billion worth of roads and bridges.

In the morning of Wednesday, the President inaugurated two more infrastructure projects in Cebu, the P100.4 million Curva-Medellin-Daan Bantayan-Maya Road and the P30-million Cabancalan-Canduman Bridge.

After a brief visit in Tagbilaran City, Ms. Arroyo was scheduled to return to Cebu City to attend the charter day celebration of Cebu City.

"Meanwhile, the GDP of Central Philippines expanded by 38 percent from P226.3 billion in 2000 to P313.16 billion in 2008."


if this accurate... WOW! CONGRATS TO THE VISAYAS REGION. :D

^Masarap magbasa ng healthy debate, wag lang sanang mag-deteriorate...

IMHO, walang na-o-obsolete na trade... mas ok siguro kung sabihin nalang nating nag-e-evolve kesa obsolete... :)

In manufacturing, some line/assembly personnel were replaced by robots, while pre-historic call center personnel (i.e. telephone operator's) were reduced by technology (IDD, etc.)...

Based on experience, some manufacturing companies in RP develop products from conceptualization, design, proto-type, testing, manufacturing, assembly, packaging, logistics and sales. The type of workers vary from Engineers, Accountants, Technicians, College level to HS grads... so I guess this type of investments covers both categories of manufacturing and BPO. Both can actually work for an organization.

I guess if RP can develop both (manufacturing & BPO) and succeed, then it would certainly reduce poverty and move the country forward. Industrialization does not only entail BPO's and factories, but infrastructure (IT, road, rail, bridges, power plants, etc.) as well.

For me, the bottomline is: people should have more disposable income to keep the economy's motion fluid... more investors would come, be it in manufacturing or BPO or KPO... and when these industries evolve, for sure, the people working for them will be able to adapt (find a new job, develop new capabilities, etc.).

^^ true, true, to keep an economy very healthy, we should at least give jobs to all people, whether what industry it is from BPO or manufacturing etc.. etc... nobody will deny that.

but to make the Philippines to become a developed country, with high income and high HDI is a different story..
it would need more than just providing jobs.
It would need to specifically develop the quaternary sectors and the tertiary sectors of industries as defined by the theory posted before. :D

^I agree...But let's do it, step by step. :)

^^ yeah.. slowly but sure.
but doing it fast wouldn't hurt, or would it? :D

the philippines will never move to a high-income country. The most it will go is upper-middle income country

^^ yea.. that's what economists predicts.. well i would love the Philippines to prove those economists wrong. after all , economists, were never accurate in their predictions. :D

but being in the upper-middle income is not really that bad. actually it should be the ultimate goal of the government. to be in that bracket already is enough for an ordinary Filipino to have a decent living.

i personally, will be content in the upper-middle income bracket. Being in the High Income bracket entails many sacrifices for the people... more work work and work and less play will be the norm of the every day life.. and that will be too boring.. and I don't think that will be ideal to the majority of Filipinos.

^^ yeah.. slowly but sure.
but doing it fast wouldn't hurt, or would it? :D

If we go fast, I am just worried those who are not fast enough to catch up with the growth.

Masyado lang siguro akong na-impluwensyahan sa mga nabasa kong article ukol sa mga taong naiwanan sa mabilis na pag-unlad sa bansang Tsina. :)

^^ yea.. that's what economists predicts.. well i would love the Philippines to prove those economists wrong. after all , economists, were never accurate in their predictions. :D

but being in the upper-middle income is not really that bad. actually it should be the ultimate goal of the government. to be in that bracket already is enough for an ordinary Filipino to have a decent living.

I don't believe in economists predictions anymore.

^^ I don't blame you. :D

Local firms see bright future in chip designing

By Abigail L. Ho
Philippine Daily Inquirer
First Posted 22:05:00 02/23/2010

LOCAL companies seek to make the Philippines known not only as a chip-manufacturing location, but also as a chip-design destination.

According to Robert Minguez II, president and senior design engineer of Xinyx Design, Filipino engineers are more than capable of performing highly specialized and high-value services for the semiconductor industry.

“Our goal is to keep our competencies and encourage jobs locally for our engineering graduates,” he said in a statement issued Tuesday, adding that the Philippines could very well host an integrated circuit design industry.

Xinyx is composed mainly of former IC design engineers of Intel Corp., which closed its Philippine manufacturing facility in Cavite last year. The company does outsourced design and layout services for US-based memory chip firms.

Another local IC design firm, Apac IC, has joined forces with US-based Synopsys Inc. for the adoption of a custom designer tool for its layout engineers.

“We want to grow our IC physical design business and contribute to establishing the Philippines as a center of semiconductor excellence,” Apac IC president and chief executive Jerome Avondo said. “We want to leverage on the Filipino talent and resources, which provide excellent value and high-quality work, with no long lock-in periods.”

He related that for several years now, Filipino software engineers were responsible for around 70 percent of flash memory design work for huge global companies, with these chips being used by tech bigwigs such as Nokia, Samsung, and Blackberry.

“A lot of people are excited about the features of these phones, but they do not realize that a good chunk of it was done by Filipinos here in the Philippines,” he said.

Filipino firm Golf Electronics Corp. is also helping make a name for the Philippines in the global tech arena with the development of cost-saving wired devices such as keyboards, mouse, game controllers, and PC remotes and converting these into wireless.

:banana: wow im excited about this news. pde na ako magwork sa pinas :)

In order for our country to succeed in IC design, we must have more MS's and PHD's in this specialized field. Taiwan and also s.korea, sends a lot of their graduates abroad especially in the US for MS and PHD. As I have known, most of them even worked for years in silicon valley, and later on returned to establish their own companies. That was how IC design started in taiwan and S.Korea as well.

My Professor/Adviser was one of those privileged ones.:cheers:

^^ good for you :D

^^ yea.. that's what economists predicts.. well i would love the Philippines to prove those economists wrong. after all , economists, were never accurate in their predictions. :D

but being in the upper-middle income is not really that bad. actually it should be the ultimate goal of the government. to be in that bracket already is enough for an ordinary Filipino to have a decent living.

i personally, will be content in the upper-middle income bracket. Being in the High Income bracket entails many sacrifices for the people... more work work and work and less play will be the norm of the every day life.. and that will be too boring.. and I don't think that will be ideal to the majority of Filipinos.

we will become upper-middle income after china becomes upper-middle income too. And with such a huge population, that will take a long time. Maybe 20-30 years.

I just read on some news that Thailand has been accepting immigrant workers from Cambodia and Laos. If that's the case, the Philippines would not need immigrant workers because we can easily fill up those jobs. All it needs are proper education and the willingness of the Filipinos to work hard.

Perhaps 5% unemployment may be not that far.

:banana: wow im excited about this news. pde na ako magwork sa pinas :)

In order for our country to succeed in IC design, we must have more MS's and PHD's in this specialized field. Taiwan and also s.korea, sends a lot of their graduates abroad especially in the US for MS and PHD. As I have known, most of them even worked for years in silicon valley, and later on returned to establish their own companies. That was how IC design started in taiwan and S.Korea as well.

My Professor/Adviser was one of those privileged ones.:cheers:


chip designer ka? sang bansa?

we will become upper-middle income after china becomes upper-middle income too. And with such a huge population, that will take a long time. Maybe 20-30 years.

I just read on some news that Thailand has been accepting immigrant workers from Cambodia and Laos. If that's the case, the Philippines would not need immigrant workers because we can easily fill up those jobs. All it needs are proper education and the willingness of the Filipinos to work hard.

Perhaps 5% unemployment may be not that far.

interesting...

does that mean that our income is directly related if not in proportion to China?? is there any studies to prove it? just curious.. would love to read it, if there is any..

if that's the case.. we've got a long way to go....

interesting...

does that mean that our income is directly related if not in proportion to China?? is there any studies to prove it? just curious.. would love to read it, if there is any..

if that's the case.. we've got a long way to go....

because china is the world leader in export, and a wealthy, fast growing country. China is a BRIC country, the Phils is part of the Next 11. So Philippines should follow china next.

But the simple logic to that is China will have to relinquish its manufacturing role to other lower income countries. That's why Vietnam will soon overtake the Philippines. But them some of these manufacturing roles can also benefit the Philippines.

China will not be competitive anymore with manufacturing with higher labor cost. It has to move somewhere else. And the Philippines will benefit from that.

^^ Manufacturing wise.. it could be true.

but what if the Philippine economy gets a boost other than the manufacturing industry that would move from China? let's say, mainly because of the rising KPO, BPO(it's our niche already, and we are actually doing a good job in stealing the industry from INDIA .. lol ) or even mining and tourism and on the sideline higher OFW remittances..

so i guess that logic is not entirely true and applicable for the Philippines.. cause Manufacturing isn't really the only big industry in the Philippines right now. The government has done a good job in diversifying the economy from manufacturing to something else.. coz they know for sure it will be very hard to compete with China and decided that "we could not wait forever for the Manufacturers to go back to the Philippines". So having a niche on the other industries, aside from manufacturing could give us the possibility that the Philippines could get ahead of China in terms of PER CAPITA INCOME and not lag behind it..

but i could say that the logic was true in the case of China before.. and may also possibly be true for the Philippines in the future..

i see... anyway, it was a very logical thought. Only shows how volatile the Manufacturing industry has become. Who knows, after Marikina lost the Shoe industry to china and even INTEL, it could go back to the Philippines again in the next couple of decades, only when they can't afford China anymore... lol

the biggest hope for the Manufacturing Industry in the Philippines is to develop it's own technology, by investing heavily in tech R&D.. in that way, we can monopolize something and manufacture our own products.. and wouldn't rely to much on subcontracting for foreign companies who likes to shift from one country to another country...

because china is the world leader in export, and a wealthy, fast growing country. China is a BRIC country, the Phils is part of the Next 11. So Philippines should follow china next.

But the simple logic to that is China will have to relinquish its manufacturing role to other lower income countries. That's why Vietnam will soon overtake the Philippines. But them some of these manufacturing roles can also benefit the Philippines.

China will not be competitive anymore with manufacturing with higher labor cost. It has to move somewhere else. And the Philippines will benefit from that.


I think Vietnam is still more expensive to work with compared than China. I don't see that Vietnam will make a huge impact on this sector because simply Vietnam doesn't have that much disposable labor as China. Remember China has over a billion people, they can still afford to give crap salary to their rank and file. However, Vietnam do invest a lot in its people - they are churning out a lot of engineers (which reminded me of India) something that the Philippines lacks.

IMHO, I think the Philippines should focus its economic strategy moreso in value added, knowledge based industries rather than producing cheap products as well as tourism and agriculture. In order to do that, we must have a very highly educated population, proper infrastructure, and strong R&D.

:banana: wow im excited about this news. pde na ako magwork sa pinas :)

In order for our country to succeed in IC design, we must have more MS's and PHD's in this specialized field. Taiwan and also s.korea, sends a lot of their graduates abroad especially in the US for MS and PHD. As I have known, most of them even worked for years in silicon valley, and later on returned to establish their own companies. That was how IC design started in taiwan and S.Korea as well.

My Professor/Adviser was one of those privileged ones.:cheers:

If our system of education focuses on these kinds of projects instead of producing diploma mills of nurses for export, for sure it's going to be the brightest spot in the country.

If our system of education focuses on these kinds of projects instead of producing diploma mills of nurses for export, for sure it's going to be the brightest spot in the country.

it will never work, unless the Filipinos become nationalistic. The government has been giving out shell-dost scholarships yearly, and the graduates just keep on escaping abroad.

chip designer ka? sang bansa?

Di pa po ganap :D. Im still on my MS now. Im still fighting for a PHD grant. hopefully this year d2 sa taiwan.

it will never work, unless the Filipinos become nationalistic. The government has been giving out shell-dost scholarships yearly, and the graduates just keep on escaping abroad.

we will become upper-middle income after china becomes upper-middle income too. And with such a huge population, that will take a long time. Maybe 20-30 years.

I just read on some news that Thailand has been accepting immigrant workers from Cambodia and Laos. If that's the case, the Philippines would not need immigrant workers because we can easily fill up those jobs. All it needs are proper education and the willingness of the Filipinos to work hard.

Perhaps 5% unemployment may be not that far.

Philippines won't need immigrant workers. It's greatest asset is it's people. If the government can fine tune themselves to create more opportunities, it might stop the brain drain phenomenon and might even entice Filipinos abroad, armed with skills, knowledge and experience to come back and participate in the overall development of the country. Nationalism alone won't work because the sole reason why Filipinos migrate to seek for greener pasture is economic.

it will never work, unless the Filipinos become nationalistic. The government has been giving out shell-dost scholarships yearly, and the graduates just keep on escaping abroad.

Yeah I really agree with this. Thats the most significant difference of filipinos compared to taiwanese and koreans and other first worlds. I really think the government should really promote nationalism. Perhaps media can help, instead of criticizing the governent for its faults.

Philippines won't need immigrant workers. It's greatest asset is it's people. If the government can fine tune themselves to create more opportunities, it might stop the brain drain phenomenon and might even entice Filipinos abroad, armed with skills, knowledge and experience to come back and participate in the overall development of the country. Nationalism alone won't work because the sole reason why Filipinos migrate to seek for greener pasture is economic.

Unbelievably, it did work on s.korea and taiwan. These countries are much poorer than the philippines before as what our elders told us. But then, their people still did return from abroad to help their country.

Yeah I really agree with this. Thats the most significant difference of filipinos compared to taiwanese and koreans and other first worlds. I really think the government should really promote nationalism. Perhaps media can help, instead of criticizing the governent for its faults.

I think the problem lies in the government's credibility and integrity in promoting nationalism - because they themselves are not putting the nation ahead of anything else but sit there, getting paid for barely doing anything, cheat, steal and thinking way ahead of the elections for the sole purpose of perpetuating themselves in power for eternity. Now, with that kind of system, how on earth can you expect the citizens to be nationalists? :ohno:

What's needed is a total change of this kind of corruption-infested system to a more robust form leaning heavily on meritocracy and competence.

Unbelievably, it did work on s.korea and taiwan. These countries are much poorer than the philippines before as what our elders told us. But then, their people still did return from abroad to help their country.

Note some Koreans decide to move abroad including The Philippines.

Nationalism is slowly happening especially in popular culture. If you noticed todays popular music, arts and fashion, they spark nationalism or the proudness of being Filipino.

Note some Koreans decide to move abroad including The Philippines.

Nationalism is slowly happening especially in popular culture. If you noticed todays popular music and arts, they spark nationalism or the proudness of being Filipino.

True, I see more and more people sporting national symbols. Now it is more fashionable to be Filipino.

El Niño damage keeps rising
DA says toll at P3.77B, but Cabinet reportedly told cost now some P7B
Business World
http://www.bworldonline.com/main/content.php?id=6761

THE DAMAGE CAUSED by the El Niño weather pattern has nearly reached P4 billion according to official estimates, but the government remains hopeful the cost will be contained and that first-half agricultural output targets -- particularly for palay -- will still be achieved.

The toll to crops arising from a worsening dry spell, Agriculture Undersecretary Joel S. Rudinas told reporters yesterday, had risen to P3.77 billion as of February 17.

Reuters, however, said a government source had put the cost at around P7 billion based on data gathered this week. The figure was said to have been presented at a Cabinet meeting last Tuesday.

The estimate -- near the limit for what the government says would be the cost of a moderate El Niño -- could not be immediately confirmed.

Earlier in the day, Mr. Rudinas said 133,000 hectares planted to corn had been destroyed, with losses totalling P2 billion. Adding to that was P1.7 billion in losses from 64,000 hectares planted to rice, and P1.3 million worth of high-value commercial crops.

Nine regions or 23 provinces have been affected as of February 17, he said. The weather bureau has predicted that El Niño -- the abnormal warming of waters in the equatorial Pacific -- would last up to June this year.

Mr. Rudinas, however, said: "The seven million metric tons palay production target for the first half is still achievable because we are looking at the situation where some of the areas could be benefiting from El Niño."

Likely to benefit are those that are normally flood prone, he said.

No other details were provided.

The regions and the respective provinces affected were identified as: Cagayan Valley (Cagayan, Isabela, Nueva Vizcaya, Quirino), Central Luzon (Bulacan, Nueva Ecija), CALABARZON (Laguna), MIMAROPA (Occidental and Oriental Mindoro, Marinduque, Romblon, Palawan), Bicol (Masbate), Western Visayas (Antique, Guimaras, Negros Occidental), Davao (Davao del Sur), SOCCSKSARGEN (North Cotabato, Sultan Kudarat, South Cotabato), and the Autonomous Region in Muslim Mindanao (Maguindanao, Lanao del Sur, Basilan).

Victor A. Abola, economist at the University of Asia and the Pacific, said the first half palay production target of seven million MT remained achievable if the government implements the needed interventions.

"It is hard to say [if the goal is achievable] because I cannot say how much work has [been] done already by the government. But if they say it is possible, I will not rule it out," he said.

"The key assumption here is that they will be able to actually deliver the assistance needed."

Mr. Rudinas admitted that the damages would further increase in the coming days as more provinces report losses but stressed that so far the toll was still within the estimated P8 billion under a mild El Niño and P20 billion under a severe dry spell.

"The way El Niño is behaving right now, the [P]3.77 [billion] can still go higher but it will still be within the range," he said.

Last week, Mr. Rudinas said farm losses could top P10 billion, describing the damage reported as "alarming".

Earlier this month, Agriculture Undersecretary Bernardo G. Fondevilla said the country could lose 816,372 tons of palay worth P12.24 billion from a severe dry spell. This would be on top of a 449,429-ton reduction for corn, 42,362 tons for fish and other marine catch, and 3.08 million tons of other crops

A mild El Niño may help reduce palay losses to a smaller 264,940 tons. Under this scenario, corn losses would total 174,000 tons; fish and other catch, 21,000 tons; and other crops, 3.17 million tons.

The Agriculture department has said it would be setting aside P1.7 billion for El Niño mitigation measures that include cloud seeding and increased irrigation.

RP among countries with growing biotech crop share
Business Mirror
Written by Dennis Estopace / Reporter
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=22287:rp-among-countries-with-growing-biotech-crop-share&catid=33:economy&Itemid=60

MOST people do not know it and may believe the environmentalist groups’ drive against genetically modified (GM) corn being planted in Mindanao has succeeded, but according to a nonprofit group, biotech corn (maize) planted in the country has increased to 500,000 hectares, making the Philippines one of the developing nations contributing in a major way to GM crops.

The latest report of nonprofit International Service for the Acquisition of Agri-biotech Applications (ISAAA) noted that the Philippines had a 25-percent growth in the size of GM crop area last year.

The UN Food and Agriculture Organization (FAO) had estimated food production must increase by 60 percent over the next 25 years to keep up with world population needs.

Major food crops that had been the focus of genetic manipulation are corn and soya, with wheat and rice lagging due to complications. 

”The country was one of seven developing countries that exhibited proportional growth in biotech crop area of 10 percent or more,” according to the ISAAA report.

Burkina Faso led these countries with a 1,353-percent increase in the hectarage of biotech crop areas, followed by Brazil, 35 percent, and Bolivia, 33 percent. The Philippines is fourth in percentage growth.

The United States topped the 25 countries with 64 million hectares growing biotech crops—from soybean to sugar beet, according to the “Global Status of Commercialized Biotech/GM Crops: 2009” ISAAA report.

“As in the past, the 2009 percentage growth in biotech crop area continued to be significantly stronger in the developing countries [13 percent and 7 million hectares] than industrial countries [3 percent and 2 million hectares],” the report said.

This “strong trend for higher growth in developing countries versus industrial countries is highly likely to continue in the near, mid and long term, as more countries from the South adopt biotech crops as crops like rice, 90 percent of which is grown in developing countries, are deployed as new biotech crops.”

The Philippines was also recognized by the ISAAA report for what it calls the country’s stacked product that is said to have “pest resistance and herbicide tolerance in maize.” Crops with “stacked gene traits,” means having more than one engineered trait in a single variety.

In 2008 the ISAAA estimates that areas growing stacked traits of biotech herbicide tolerant (bt/h) maize is 200,000 hectares. A year before that, the estimate was only some 63,000 hectares growing that crop in the country.

The Philippines also contributed to last year’s increase of biotech crop farmers in the world to 14 million, with an estimated 250,000 farmers growing or working on areas growing biotech corn.

ISAAA forecast the Philippines would adopt GM golden rice by 2012, which would help increase future adoption of biotech crops.

Mindanao power gap worsens
Business Mirror
Written by Manuel T. Cayon & Paul Anthony A. Isla / Reporters
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=22295:mindanao-power-gap-worsens&catid=23:topnews&Itemid=58

DAVAO CITY—The power-supply deficiency in Mindanao more than doubled within a span of 24 hours early this week, as water inflow from the two main sources of water for the hydroelectrics—Lake Lanao in Lanao del Sur and Pulangi River in Bukidnon—dropped precipitately to reduce inflow by as much as 80 percent.

The latest bulletin of the National Grid Corp. of the Philippines (NGCP) said the generation deficiency in Mindanao “is now at 358 megawatts [mW], a marked increase from yesterday’s [February 22] deficit of 183 mW.”

The NGCP added the power reductions were 80 percent and 60 percent in the available capacities from the Agus and Pulangi hydroelectric power plants, respectively, in the face of peak load expected to reach 1,220 mW against the 863 mW of available capacity in the Mindanao grid.

The NGCP said that “nonavailability of the Iligan diesel power plant (35 mW) and the planned outage of power barge 117 (50 mW) also contributed to the deficiency in Mindanao” and would “result in the curtailment of power load transmitted to Mindanao grid users.”

Rationing has thus not been ruled out. Household customers have been advised to coordinate with distribution utilities in their area for information on the schedule and areas to be affected by the power interruptions.

Energy Secretary Angelo Reyes said he will brief President Arroyo on the precarious state of power supply in Mindanao.

Reyes added that the matter of purchasing modular generating sets or power barges would need invoking Section 71 of the Electric Power Industry Reform Act (Epira), which allows government through Napocor to lease or enter into contracts for power generation.

Although the Epira prohibits Napocor from incurring new obligations or indebtedness or generating additional capacities, there is a remedy, according to Reyes.

“In other words, Section 71 states that upon determination by President Arroyo of a looming power shortage and the approval of Congress through a joint resolution, the Napocor may be authorized to purchase, lease or enter into new contracts to increase the generating capacity,” said Reyes.

The Davao del Norte Electric Cooperative has, meanwhile, released a public advisory on the schedule of brownouts that would entail one-hour outages two times a week.

In the Sarangani area, residents have said that one-hour brownouts have already been imposed three times daily.

Davao Light and Power Co. has called on its more than 260,000 customers in its franchise area to save on electricity.

Ross Luga, Davao Light assistant vice president for corporate communications, said that “with the precarious situation of power, the electric utility feels it imperative to advise its customers to be prudent in their use of electricity [to] help reduce the demand for power from the already fast depleting source.”

The Mindanao grid has a peak demand of 1,200 mW but now has only 842 mW available.

In the Visayas, the NGCP said that power consumers have only a 38-mW deficiency from a peak demand of 1,167 mW and available supply of 1,129 mW.

“The Visayas will continue to experience generation deficiency. Geothermal plants, which comprise around 70 percent of the Visayas grid’s power source, have a total available capacity of 730 mW out of the total rated capacity of 936 mW,” the NGCP said.

It said the Luzon grid was already exporting up to 20 mW to augment the available capacity in the Visayas but has assured Luzon that “no Luzon grid customers are expected to experience power interruptions as long as all running power plants stay connected and synchronized to the grid.”

It said that Luzon has 662 mW of reserve and it expects the grid “to remain stable and under normal status.”


______________________


No lasting power supply solution in sight for Mindanao’s residents
Business World
http://www.bworldonline.com/main/content.php?id=6748

DAVAO CITY -- Mindanao’s power deficit seems to be getting worse by the day, and with no new generation project in sight, the situation is expected to deteriorate further next year at the very least.

Central business districts in the cities of Davao and Cagayan de Oro, which were hardly affected by rotating brownouts in recent weeks, were powerless for less than an hour late Wednesday morning.

While the Web site of the National Grid Corp. of the Philippines (NGCP) -- the private operator of the country’s transmission network -- showed that Mindanao had a 357-megawatt shortage yesterday, a check with the regional branch here of the NGCP showed that the entire grid’s deficiency had neared 500 MW by mid-afternoon.

The situation may not be short-lived, as NGCP estimates that Mindanao will need an additional 484 MW in four years, assuming a 5.76% annual average growth rate in demand.

But aside from the 200-MW coal-fired plant in Maasim, Sarangani by the Conal Holdings Corp., which now has to contend with protest actions from religious and environmentalist groups; the 42-MW project of Hedcor Corp. in Sta. Cruz, Davao del Sur; and the 8 MW hydro-power plant of the Cagayan Electric Power and Light Co., there are no new investments in the power sector.

And since it takes about three years to build a power plant, the current situation is expected to get worse. Already, the NGCP expects Mindanao’s power deficit to average 308 MW by next year.

Among the reasons given by NGCP for the currently grim situation are low output from hydro-electric facilities, with the Agus’s six plants in Lanao provinces running at only 120 MW out of the total 727-MW capacity, and Pulangi plant in Bukidnon running at 100 MW of its 255-MW rated capacity.

Ironically, rains have fallen in southern Mindanao in recent days, including more than an hour of heavy downpour in Davao City on Tuesday night.

Nevertheless, the Davao Light and Power Co. said it has implemented rotating hour-long power interruptions in its entire franchise.

Rossano C. Luga, Davao Light corporate communications officer, said the brownout schedule has to be implemented in the city since the NGCP has imposed a 93-megawatt curtailment for the Davao Region as of Wednesday morning.

Mr. Luga called on consumers to save on electricity in order to help the company rationalize power supply.

The 30-minute brownout before noon in Davao City is the first since the start of the year. The city had been largely spared from the rotating brownouts experienced in most parts of Mindanao since two weeks ago, due to Davao Light’s 58-megawatt Bajada backup plant.

Cagayan de Oro’s situation is worse, with power utility officials forced to schedule four-hour daily rotating brownouts starting yesterday.

"Even with [backup power generating plants] and the voluntary load shedding of the big industries in the city, we could not accommodate the high load curtailment," said Marilyn A. Chavez, senior manager and customer relations head of the Cagayan Electric Power and Light Co.

In Zamboanga City, NGCP corporate communications officer Ma. Rosette Martinez said the power condition in the region, and in Mindanao as a whole, can be immediately alleviated only with sustained heavy rainfall in the coming days.

Edgardo S. Calabio, regional corporate executive of Davao Light’s Revenue and Regulatory Affairs, in a dialogue earlier this week that was organized by the Trade department cited immediate "doable measures" like fast-tracking Agus 5 repairs, resuming operations of the 100-MW Iligan Diesel Power Plant that shut down last month due to a row with the local government, and for companies to invest in embedded generators.

In the longer term, however, only additional plants will narrow the gap between supply and growing demand on the entire island.

The problem, Mr. Calabio said, is that attracting investments in the sector might not be easy since power rates here are cheaper than those in the Visayas and Luzon.

In Davao City, for example, the local power utility collects P6.58 per kilowatt hour against P7.22/kWh in Cebu and P9.32/kWh in Metro Manila. "What we [users] pay does not reflect the true cost of power; we should be paying more," Mr. Calabio said, explaining that grid rates are based on the value of the power plants and other assets, which are quite old. "Adjust the rates, if you would like to entice investors to come in; reflect the true cost of power."

ADB exec says El Niño may prompt reduction in growth targets
Business Mirror
Written by Dennis Estopace / Reporter
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=22273:adb-exec-says-el-nino-may-prompt-reduction-in-growth-targets&catid=33:economy&Itemid=60


AGREEING with the National Economic and Development Authority (Neda), the Asian Development Bank (ADB) country chief said the dry spell brought on by El Niño may prompt a downward revision of the year’s growth targets, especially if palay production suffers.

Neeraj Jain, the bank officer, said on Tuesday a big decline in palay production will have a “major impact on growth.”

Jain also took up the looming problems of reduced water supply that not only threatens rationing of domestic water but also a big cut in a target 17.4 million tons of palay production.

The government remains confident, however, that El Niño would have no significant impact on palay production and has forecast gross domestic product to grow this year to 3.6 percent from 2.6 percent.

Jain said the ADB is sticking to its forecast of “plus-3 percent based on the information that I currently have. I don’t see that being tweaked downward.”

They are running the numbers for the outlook the ADB will announce in April, he added.

On Monday Neda Acting Director General Augusto Santos said El Niño may negatively impact economic growth well into the second quarter based on the estimates of the Philippine Atmospheric, Geophysical and Astronomical Services Administration the weather phenomenon will last for another three months.

He added the two sectors that may be greatly affected are agriculture and power. Santos said his office may have to revise growth targets downward.

I think the problem lies in the government's credibility and integrity in promoting nationalism - because they themselves are not putting the nation ahead of anything else but sit there, getting paid for barely doing anything, cheat, steal and thinking way ahead of the elections for the sole purpose of perpetuating themselves in power for eternity. Now, with that kind of system, how on earth can you expect the citizens to be nationalists? :ohno:

What's needed is a total change of this kind of corruption-infested system to a more robust form leaning heavily on meritocracy and competence.

For me, the government can never be perfect. Even if we elect the most honest person to the position, people can still find faults. Especially those ambitious and opportunistic politicians who wants to lift themselves up by bringing down prominent people(most of the time, presidents :D).

The economics of squatting
Business World
http://www.bworldonline.com/main/content.php?id=6220

Urbanization has caused the proliferation of slums and informal settlements in Metro Manila. As of end 2002, there were some 701,764 depressed households, accounting for 33% of the total households in the metro.

As a result, development authorities are confronted with the problem of providing decent housing to these informal settlers and the tough task of preventing them from inhabiting other lands that could have been used for other purposes.

A casual observation, even just in the news, reveals that peaceful and well-meaning evictions hardly succeed. Messy squabbles normally arise from such incidents, snowballing to rallies and even court fights that take up even more precious resources from the government. These happen despite the obvious woes that informal settlers encounter in depressed areas, especially in terms of health and inaccessibility to proper facilities.

It is a curious case, to some extent. But this issue can be viewed from an economic perspective, which reveals various incentives at play that lead to this phenomenon.

The tragedy of the commons

When property rights are unclear, individuals have no incentive to take care of common resources, not only because doing so entails costs, but also because they will find it more rewarding to use more of that asset to maximize their own, individual benefits.

When every individual has the same tragic yet rational thinking, the resource eventually deteriorates: the so-called "ragedy of the commons". Take for example the case of squatting.

It just takes one group of individuals to start a colony of informal dwellings. For instance, suppose a family builds a house near a waterway where property rights are not explicitly defined. People who do not have permanent houses see the benefit or utility that this group gets, thus encouraging them to follow the initiative to reap for themselves the benefits of free land and unrestricted access to water.

The arrangement can be beneficial to a number of settlers, but beyond this limit, the informal settlers -- and additional ones that take residence there-- will gradually deplete the resources in the area. Also, if it is not the quality of land or the amount of water per se that is reduced, then the overall quality of living conditions diminishes due to increasing congestion.

As the benefits of the dwellers decrease, they tend to exploit the land further to compensate for their perceived losses, say, as in the hypothetical example above, residents start hoarding water. In the case of Metro Manila, when the property becomes saturated, informal dwellers start renting out portions of their dwellings to others. This, in turn, makes the population of the informal settlement even denser and exacerbates the deterioration of living conditions in the area.

Republic Act 7279

In its pursuit to provide decent housing for everyone and to maximize the use of urban land, the government passed into law Republic Act 7279 or the Urban and Development Housing Act of 1992.

Article VII of the law discusses Urban Renewal and Resettlement, providing guidelines on the management of slum areas. Generally, eviction or demolition is dissuaded; however, the law allows three cases in which eviction or demolition can be undertaken: (1) when these informal settlers reside in danger areas, including those near waterways, roads, garbage dumps or parks; (2) when projects of the government are ready to be implemented in the affected areas; and (3) and when the court orders such eviction and demolition to be carried out.

It also declares that the provision of a relocation site is mandatory for all eviction and demolition jobs, although this poses certain problems for the government. First, the relocation of informal settlers is costly.

The government must bear the burden of transporting these settlers to a different place. In addition, the government must also pay for the new relocation site. The government typically chooses a site that is away from the city, not only to reduce costs, but also to decongest the overpopulated metropolis.

Second, the government has to abolish "professional squatting". Informal dwellers are given more incentive to use the land when relocation sites are to be provided because they can use squatting as a means to get affordable decent housing from the government.

Contrary to its objectives, this gave rise to what has been known as professional squatting -- a phenomenon wherein an informal settler leverages his informal -- dweller status to obtain personal benefits.

For example, informal settlers who had been evicted and were provided free houses would sell these houses and go back to the city to squat again. While the law provides punishment for such practice, it has been very difficult to implement the policy.

Finally, the government has to combat the resistance of informal settlers in case of an eviction. This problem usually arises when the resettlement area for the evictee is far from their current location.

Urban economics and the problem of squatting

Resistance from informal settlers is somewhat expected. When an informal dweller looks for a job, he considers the travel costs he incurs when going to his job's location. When he is relocated to a farther place relative to his job, it means that he will have to incur higher travel costs, translating to a lower take home pay.

Still, rent or land prices adjust to ensure locational equilibrium. That is, people who want to be near the city center will have to pay higher rent than those farther away. To equalize the costs incurred in both locations, those near the center pay higher rent, while those farther away pay higher transport costs.

Like any other rational individual, the dweller-evictee would rather pay rent in another informal settlement near his job than to transfer to a relocation site, as long as the rent in the settlement is cheaper than his monthly travel costs. (Transport costs do not only include the monetary value, but also the time incurred in commuting.)

If that informal settlement is already saturated, and if all other rational dweller-evictees will do the same, then rent prices will bid up as space becomes scarcer. Upon the swelling of rent, the dweller-evictee will find it worthwhile for him to share the land that he rents with another dweller-evictee to divide the cost. This makes the population in slum areas denser, which worsens living conditions there.

And as more and more people want to live near the city, congestion becomes a more urgent concern. Uplifting the quality of life in highly urbanized areas and the provision of decent housing for everyone is part of the development process of any country, but there is a need for more balanced and equitable growth.

Opportunities must be dispersed in areas outside cities for people to also want to live there. While there will always be incentives to move into urban dwelling, the government must do its part in deterring them from living in informal settlements, so that growth without development is prevented.

Aquino and Villar lead mass activities for EDSA anniversary today. (from Twitter).

No slowdown in data center services
Business World
http://www.bworldonline.com/main/content.php?id=6300

New analysis from Frost & Sullivan, "Asia-Pacific Data Centre Services Market", finds that the market --covering 14 Asia-Pacific countries, including Japan -- grossed an estimated US$8.0 billion in 2009, growing 12.8 percent year-on-year.

Revenues are expected to rise even higher by 14.7 percent this year to reach US$9.18 billion by-end 2010, and by as much as 16.4 percent in 2011.

Leading data center hubs in the region are Japan, Australia, Singapore, Hong Kong and, to a lesser degree, China, India and Malaysia. The largest of them, Japan, alone, accounted for over 71 percent (US$5.7 billion) of the revenues last year.

Much of the growth in most countries is fueled by strong domestic demand, prompted mainly by government initiatives towards e-governance and e-readiness. Singapore and Hong Kong continue to be prime hubs for regional facilities.

"Government-driven investments into next-generation broadband networks, IT infrastructure build-outs and e-ready nations have created a growing Internet-savvy population that demands rich content, collaboration and web applications, says Frost & Sullivan industry analyst Chengyu Wu.

This demand is the primary driver of the growth in data center space in the region.

She adds that the Internet media, telecom and IT industries together
account for up to 45 percent of the demand. These sectors are still growing at a fast pace in almost all Asia-Pacific countries and are expected to continue to be the biggest users of data center space over the next four to five years.

While the outlook appears highly promising with no lull in demand in sight, data center operators struggle with the high cost of operations which have increased exponentially in recent times.

According to Frost & Sullivan director Jayesh Easwaramony, "Power costs can often account for more than 50 percent of the overall operational expenditure (OPEX) of a data center, while real estate pricing could also seriously inflate costs."

"Oddly, in Asia, the larger data centers tend to be based in the most
expensive cities - Tokyo, Hong Kong, Singapore, Shanghai and Sydney,"he adds.

Adding to the rising OPEX, disruptive technologies also pressure data
center operators into upgrading their facilities continuously to keep pace with evolving technologies.

For instance, Mr. Easwaramony notes,"Many data centers have been compelled to upgrade their cooling system to meet the demand for blade servers, which, while requiring less space, now also consume more energy."

It is estimated that nearly two percent of the world's electricity supply
is spent powering data centers.

"The focus on green initiatives has moved rightly in the direction of cost savings rather than corporate social responsibility in the past twelve months, Ms. Wu reasons, "with discussions around new concepts such as virtualization, green data centers and utility computing emerging in the data center segment."

"However, not many data center owners in Asia-Pacific have embraced these in their facilities due to the skills required and the huge cost involved in implementation and maintenance," she concludes, adding that adoption by users has, likewise, been minimal due to inadequate compliance and governance.

For me, the government can never be perfect. Even if we elect the most honest person to the position, people can still find faults. Especially those ambitious and opportunistic politicians who wants to lift themselves up by bringing down prominent people(most of the time, presidents :D).

There can never be a perfect government. What's needed is a change of system, not just change of people. The current U.S.-style government doesn't work well with the administrative culture of the Filipinos and it shows.

No lasting power supply solution in sight for Mindanao’s residents (http://www.bworld.com.ph/main/content.php?type=4)

DAVAO CITY -- Mindanao’s power deficit seems to be getting worse by the day, and with no new generation project in sight, the situation is expected to deteriorate further next year at the very least.

Central business districts in the cities of Davao and Cagayan de Oro, which were hardly affected by rotating brownouts in recent weeks, were powerless for less than an hour late Wednesday morning.

While the Web site of the National Grid Corp. of the Philippines (NGCP) -- the private operator of the country’s transmission network -- showed that Mindanao had a 357-megawatt shortage yesterday, a check with the regional branch here of the NGCP showed that the entire grid’s deficiency had neared 500 MW by mid-afternoon.

The situation may not be short-lived, as NGCP estimates that Mindanao will need an additional 484 MW in four years, assuming a 5.76% annual average growth rate in demand.

But aside from the 200-MW coal-fired plant in Maasim, Sarangani by the Conal Holdings Corp., which now has to contend with protest actions from religious and environmentalist groups; the 42-MW project of Hedcor Corp. in Sta. Cruz, Davao del Sur; and the 8 MW hydro-power plant of the Cagayan Electric Power and Light Co., there are no new investments in the power sector.

And since it takes about three years to build a power plant, the current situation is expected to get worse. Already, the NGCP expects Mindanao’s power deficit to average 308 MW by next year.

Among the reasons given by NGCP for the currently grim situation are low output from hydro-electric facilities, with the Agus’s six plants in Lanao provinces running at only 120 MW out of the total 727-MW capacity, and Pulangi plant in Bukidnon running at 100 MW of its 255-MW rated capacity.

Ironically, rains have fallen in southern Mindanao in recent days, including more than an hour of heavy downpour in Davao City on Tuesday night.

Nevertheless, the Davao Light and Power Co. said it has implemented rotating hour-long power interruptions in its entire franchise.

Rossano C. Luga, Davao Light corporate communications officer, said the brownout schedule has to be implemented in the city since the NGCP has imposed a 93-megawatt curtailment for the Davao Region as of Wednesday morning.

Mr. Luga called on consumers to save on electricity in order to help the company rationalize power supply.

The 30-minute brownout before noon in Davao City is the first since the start of the year. The city had been largely spared from the rotating brownouts experienced in most parts of Mindanao since two weeks ago, due to Davao Light’s 58-megawatt Bajada backup plant.

Cagayan de Oro’s situation is worse, with power utility officials forced to schedule four-hour daily rotating brownouts starting yesterday.

"Even with [backup power generating plants] and the voluntary load shedding of the big industries in the city, we could not accommodate the high load curtailment," said Marilyn A. Chavez, senior manager and customer relations head of the Cagayan Electric Power and Light Co.

In Zamboanga City, NGCP corporate communications officer Ma. Rosette Martinez said the power condition in the region, and in Mindanao as a whole, can be immediately alleviated only with sustained heavy rainfall in the coming days.

Edgardo S. Calabio, regional corporate executive of Davao Light’s Revenue and Regulatory Affairs, in a dialogue earlier this week that was organized by the Trade department cited immediate "doable measures" like fast-tracking Agus 5 repairs, resuming operations of the 100-MW Iligan Diesel Power Plant that shut down last month due to a row with the local government, and for companies to invest in embedded generators.

In the longer term, however, only additional plants will narrow the gap between supply and growing demand on the entire island.

The problem, Mr. Calabio said, is that attracting investments in the sector might not be easy since power rates here are cheaper than those in the Visayas and Luzon.

In Davao City, for example, the local power utility collects P6.58 per kilowatt hour against P7.22/kWh in Cebu and P9.32/kWh in Metro Manila. "What we [users] pay does not reflect the true cost of power; we should be paying more," Mr. Calabio said, explaining that grid rates are based on the value of the power plants and other assets, which are quite old. "Adjust the rates, if you would like to entice investors to come in; reflect the true cost of power." -- CQF

Exporters get tips on Japan design tastes (http://www.bworld.com.ph/main/content.php?id=6822)

APPAREL, HOME DECOR and handicraft exporters were given design seminars this week to help them boost sales -- particularly to Japanese buyers -- in an upcoming trade fair, the Trade department said in a statement yesterday.

The department said its attached agency, the Center for International Trade Expositions and Missions, held a "trend briefing" for exporters yesterday in Manila and on Tuesday in Cebu in the run up to the Manila F.A.M.E International exhibition slated for April 22-25.

"Japanese design expert Junya Kitagawara was the guest speaker... to discuss prospects in the Japanese market," the department said in a statement, noting that Japan is the Philippines’ second largest export destination after the United States.

Last year, export sales of apparel fell 21.99% to $1.520 billion from 2008 levels, while furniture and woodcraft export sales dipped by 15.87% to $958.795 million, official data show. Total export sales to Japan, meanwhile, declined by a fifth to $6.196 billion in 2009.

^^What we really need now are investments.

Subsidies to agencies, state firms drop 17.4% in 2009 (http://www.bworld.com.ph/main/content.php?id=6823)

SUBSIDIES TO AGENCIES and state-run firms declined by 17.4% to P17.439 billion in 2009 from P21.109 billion in the previous year, data the Finance department released yesterday showed.
Heavily subsidized National Food Authority, which buys from local farmers at above-market rates and sells to the poor at below-market prices, accounted for the biggest state subsidy given to agencies and government-owned and -controlled corporations last year. -- <i>BW File Photo</i>
Heavily subsidized National Food Authority, which buys from local farmers at above-market rates and sells to the poor at below-market prices, accounted for the biggest state subsidy given to agencies and government-owned and -controlled corporations last year. -- BW File Photo

The data showed that the National Food Authority (NFA), which imports rice, and buys from local farmers besides at above-market prices, and sells the commodity to the poor at lower-than-market rates, accounted for the biggest subsidy for the year at P4 billion.

The National Housing Authority, which develops housing programs for the poor, accounted for the second highest subsidy at P3.858 billion.

The Local Water Utilities Administration, which implements projects designed to make potable water accessible to residents of rural communities, received the third largest subsidy last year at P1.950 billion.

The Philippine National Railways accounted for the fourth largest subsidy at P1.168 billion.

Other agencies and state firms which received considerable subsidies in 2009 were the National Home Mortgage Finance Corp. at P900 billion, the National Irrigation Administration at P892 billion, the Philippine Coconut Authority at P586 billion, as well as the National Electrification Administration at P524 billion.

Subsidies given to these state entities form part of the government’s total expenditures, which amounted to P1.421 trillion last year.

Debt issue awaits Palace OK (http://www.bworld.com.ph/main/content.php?type=2)

STATE LENDER Land Bank of the Philippines (Landbank) is hoping to hold its fund raising in March, with only Malacañang’s nod for the issue of up to $150 million in hybrid Tier 1 capital being awaited.

“We have already gotten the approval of the [Finance department] and the [Bangko Sentral ng Pilipinas],” Landbank President and CEO Gilda E. Pico told reporters Tuesday night. “We are just [waiting for] Malacañang’s approval.”

Landbank, the country’s fourth largest in terms of assets, plans to issue between $100 million and $150 million in hybrid Tier 1 capital.

Landbank Executive Vice-President Cecilia C. Borromeo, at the same briefing, said proceeds from the issue would be used for the bank’s lending and investment activities, but added the lender has not yet decided how much would be allocated to each.

“We will discuss pricing early next week and do road shows in Hong Kong and Singapore in the second week [of March],” Ms. Borromeo said.

Deutsche Bank and Citibank N.A. have been chosen serve as the issue’s arrangers.

Hybrid Tier 1 capital is high-quality, low-cost and long-term debt primarily meant to improve a bank’s capital position.

It has the qualities of both Tier 1 and Tier 2 capital since it is booked as equity even if this is offered in the form of unsecured subordinated debt or preferred shares.

Ms. Pico said Landbank is targeting a net income of P7.2 billion this year, up from P6.76 billion last year, with profit from loans to primarily drive income growth.

“Our loan growth [will drive that] because if you have a base of P195 billion in loans and you grow by 8% to 9%, then that’s another P16 billion and that should give us the income,” she said.

Ms. Pico added the state lender is on track to meet its target after net income rose by more than a fifth to P608 million in January. She said Landbank needs to book P600 million in net income every month to meet its goal.

The Landbank chief, however, said the state lender would cut its loans for rice production this year, as the dry spell induced by El Niño would erode the productivity of this sector.

“If they don’t plant, then we can’t loan to them. Last year we lent out P12 billion for rice production... But this year we are targeting P10 billion, which is already very optimistic,” she said.

Ms. Pico said Landbank also plans to reduce its holdings of real and other property assets (ROPA) this year to free up capital for lending and investments.

“We are targeting another P1-billion reduction in 2010, but of course we want to dispose more as fast as we can because the BSP imposes a 150% capital charge on ROPA,” she said.

Ms. Pico said Landbank also plans to expand further its network by installing 40 more automated teller machines to add to the 877 it has, and open five more branches in the Bicol and Visayas regions.

Landbank continued to rank as the country’s fourth largest lender -- a position it has held for several years -- after its assets rose by around 18% to P511.63 billion last year.

It raised P6.9 billion in June last year from the sale of Tier 2 notes. -- Don Gil K. Carreon

Welcome to Thread 13!

Keep posting dudes :okay:

Link to Thread 12 (http://www.skyscrapercity.com/showthread.php?t=97155&page=469).

New Thread here. (http://www.skyscrapercity.com/showthread.php?p=52484189#post52484189)

Sugar producer Roxas Holdings swings to profit (http://www.bworld.com.ph/main/content.php?id=6835)

LISTED SUGAR producer Roxas Holdings, Inc. managed to go back in the black in the first half of its fiscal year 2009-2010, reversing the almost P100-million loss in the previous year as a result of higher operating income.

In the July to December period, Roxas Holdings earned a profit of P5.36 million, reversing its P90.31-million net loss in the same period in 2008. This was supported by operating income, which went up by more than six times to P144.059 million.

Revenues also went up to P2.307 billion from P2.299 billion in 2008.

Roxas Holdings, which was established in 1927 as a Batangas-based sugar milling company, produces raw and refined sugar in different grades. It also provides toll or refining services to raw sugar owners.

In its financial report, Roxas Holdings said refined sugar output went up to 3.965 million 50-kilogram bags from 3.659 million bags in 2008 and 3.883 million bags in 2007.

For September to December last year, Roxas Holdings turned around to a P784,000 net income from a P36.258-million net loss year on year.

In the same period, revenues from operations rose to P40.426 million, reversing a P16.04-million operating loss during the same period last year.

Roxas Holdings also owns Roxol Bioenergy Corp. which aims to produce 30 million liters of bioethanol per year using sugarcane as feedstock starting this quarter. Last month, Roxas Holdings said it was planning to take in strategic investors through a follow-on offering next year to support its entry into the bioethanol business.

Shares in Roxas Holdings were last traded on Feb. 17 at P2.80 apiece.

Panasonic profits down 33% (http://www.bworld.com.ph/main/content.php?id=6833)

PROFITS OF listed Panasonic Manufacturing Philippines Corp. dropped by almost a third nine months into its fiscal year on the back of higher operating costs.

In its financial report, the local unit of Japan’s electronics giant Panasonic Corp. said net income slipped by 32.85% to P46.658 million in the three quarters of its fiscal year 2009-2010 ending March, from P69.488 million year on year.

Panasonic Manufacturing is a manufacturer, importer and distributor of electronic, electrical, mechanical, electromechanical appliances, other types of machinery. “Operating expenses increased by 15.9% mainly due to increase in direct selling expenses amounting from P724.5 million in 2008 to P913.6 million in 2009,” the firm said.

In the Philippines, Panasonic Manufacturing makes refrigerators, air-conditioners, television sets and washing machines.

Income from continuing operations was nearly halved to P46.658 million from P91.329 million in 2008.

Last year, Panasonic Manufacturing closed its battery unit in the town of Taytay in Rizal to cut costs. Sixty workers were laid off.

The firm has a manufacturing plant at Carmelray Industrial Park II in Laguna.

Shares in Panasonic Manufacturing were last traded at P6.50 apiece on Jan. 8.

I have mixed emotions about this development...

Good for the economy but bad for the helth of Pinoys...

Philip Morris, Fortune Tobacco merge RP operations

abs-cbnNEWS.com | 02/25/2010 12:41 PM

MANILA, Philippines (3rd UPDATE) - The Philippine unit of Philip Morris International and unlisted Fortune Tobacco Corp. (FTC) will combine their core businesses in a new company which will control 90% of the local cigarette market.
The joint venture deal between Philip Morris and Fortune Tobacco Corp does not only seal the end of the local firm’s monopoly days, it also culminates an almost 55-year-long presence in one of the world’s biggest cigarette markets.

On Thursday, Philip Morris announced the deal between long-time industry leader Fortune Tobacco, owned by Lucio Tan, a staple name in the Philippine cigarette market. Tan was granted concessions by former President Ferdinand Marcos that resulted in a virtual monopoly for over 4 decades. -Lala Rimando, abs-cbnNEWS.com/Newsbreak

Read More

"Philip Morris and Fortune Tobacco concluded an agreement to form a new company called PMFTC," Chris Nelson, president of Philip Morris Philippines, told reporters.

"It's 50-50, it's an equal marriage. We are not going to divulge the financial details," Nelson said.

When asked which group initiated the talks, Nelson said: "We kissed at the same time."

The new company will command a dominant position in the local tobacco market, with Philip Morris Philippines Manufacturing Inc. and Fortune Tobacco, owned by one of the country's richest men, Lucio Tan, having a combined share of about 90%.

Philip Morris—which sells Marlboro cigarettes and is the world's largest non-state-owned tobacco firm, with over $2.4 billion earnings in Asia last year—considers the Philippines its 12th-biggest market. Through the new firm, it gains wider access to the local cigarette market, including the profitable medium- to low-priced segments.

A joint statement said Fortune Tobacco and Philip Morris "each contributed selected assets and liabilities into the new company, with each party holding an equal economic interest."

Philip Morris will retain its export business, shipping cigarettes mostly to Thailand. It declined to give the value of the export business.

Fortune Tobacco will keep its interest in the distribution of the Winston brand of Japan Tobacco Inc., the statement said. It also said the new firm would not be affected by pending tax and ownership disputes with local courts involving Fortune.

Top player

Philip Morris has dominated the high-end cigarette market in the Philippines for years while Fortune Tobacco is the top player in the medium to low-priced cigarette segment, with a 60% share of the entire industry.
The cigarette industry in the country has long been a showcase of how political economy works in the Philippines. While businessman Lucio Tan has been generally perceived to have perfected the art of influencing regulation and tax schemes to favor his Fortune Tobaco Corp., the expansion efforts of multinational player Philip Morris in the Philippines has changed the playing field.

As Philip Morris announced on Thursday a deal that involved the acquisition of majority stakes in Fortune Tobacco, the shifts in the local playing field on cigarette products is sealed.

The shift—from monopoly to a duopoly—has been gradual. The road to the February 25 announcement of the deal took a little over 8 years. -Lala Rimando, abs-cbnNEWS.com/Newbreak

Read More

"By uniting our business operations with a well managed and successful company that has an outstanding distribution and manufacturing infrastructure like FTC, we are laying the foundation for the long term success of PMFTC Inc.," Nelson said.

"While Philip Morris currently competes mainly in the premium price segment, FTC's strength is in the value and medium priced segments. Thus, PMFTC Inc will have a representation in all segments of the Philippine market," he said.

The Philippines is the 15th largest consumer of cigarettes in the world, and the second largest in Southeast Asia, consuming as much as 80 billion sticks a year, according to the World Health Organization.:ohno::ohno:

Tan's decision to sell

Reporting for ANC on Thursday morning, Carandang said the merger could be a move by Tan to sell in order to avoid internal problems.

"The stories in the Chinese business community are that Mr. Tan is aging, he's not in good health, and he's had succession problems. It's not clear at this point who is going to take over. He's had disputes with his brother, so given the lack of clarity about succession and his health, the decision was made to go with this merger," Carandang said.

Carandang said there was also talk in the Chinese community that "Mr. Tan was apparently the first to approach Philip Morris about this deal."

He also reported that "it's not clear also at this point whether there'll be further consolidation."

"The question now is whether this is just the first of other steps that will eventually lead to Philip Morris acquiring an even larger share of Fortune Tobacco," Carandang reported. --With reports from Reuters, ANC, ABS-CBN News
as of 02/25/2010 4:35 PM

^^ I thought Vivienne will succeed Lucio but she opted to enter the politics.

Toyota Tsusho plans biodiesel hub in RP

Thursday, 25 February 2010 00:00
BY KATRINA A. VALDEZ Reporter
Manila Times

TOYOTA Tsusho Corp. is eyeing to dominate Asia’s biodiesel industry with a plan to establish a hub in the Philippines in two years’ time, a company executive said Wednesday.

Hirohiko Omura, the firm’s global project planning department head, told reporters that come 2012, the company is “very likely” to push through with investments in General Santos and Davao cities for jathropa plantations and factories.

These facilities will cater to the biodiesel requirements not only of the Philippines but also of China, South Korea, Japan and parts of Europe, he said.

“Right now, we are still in the joint venture study with Dole Philippines. We provide all the technical and scientific aspect of it, while they do the actual feasibility and viability studies,” he added.

Toyota Tsusho started its joint venture study with Dole Philippines last July on 50 to 200 hectares of land. In one and a half to two years, the Japanese firm will determine how many hectares factories would be required for its biodiesel venture.

The Japanese executive said this was the first time that Toyota Tsusho would venture biofuels production.

He said the company would want to expand to other Asian countries, such as Indonesia, Laos, Vietnam and Thailand.

“Several developing and developed countries need biodiesel. We chose the jathropa since it requires minimal water and will not compete with edible crops,” Omura said.

Rosemarie Gumera, an official of the National Biofuels Board (NBB), said Toyota Tsusho has been coordinating with NBB to comply with the government’s requirements for biodiesel plantation and production.

At present, the country’s demand for biodiesel stands at 169 million liters. It has an available supply of 352 million liters of Coco Methyl Ester (CME) Diesel.

“This means, Toyota Tsusho’s intent of exporting biodiesel will likewise help the country since we have a surplus and it will redound to the benefit of the economy,” Gumera said.

Developing jathropa costs P22,000 to P30,000 per hectare. Toyota Tsusho is eyeing to develop at least 200,000 hectares.

Gumera said the currently mandated biodiesel blend for oil companies in the country is 2 percent. However, this will be increased to 5 percent in the near future.

The biggest players in the biodiesel industry are Chemrez Technologies Inc., which has a rated capacity of 75 million liters a year, followed by Pure Essence International Inc. and Senbel Corp., each with a rated capacity of 60 million liters.

el nino + super typhon.. lethal combination

why cant we make new dams. it will serve

1. It can minimize floodings
2. Source of energy (hydroelectrical plants).. ...
3. Can serve as source of irrigation during dry season.

All these are win-win situation for us.

We have so much water during typhoon months...almost drowning us. why cant we capitalize from these. We cant control nature but at least we can minimize the impact and turn around the situation for our advantages...


I dont mind what they say. But im for nuclear power plants. we just need to have the necessary skills and capabilities to operate and manage this plant. Low cost electricity. benchmark and learn from koreans and french who uses this kind of energy source

Business sector confidence hits two-year high

By Lawrence Agcaoili
(The Philippine Star)
Updated February 26, 2010 12:00 AM

MANILA, Philippines - Businessmen are more optimistic that the domestic economy would recover from the worldwide economic slump this year on the back of moderate inflation, a steady stream of remittances from Filipinos abroad, election-related spending, and continued foreign investment inflows.

In a press conference, BSP Assistant Governor Cyd Tuano-Amador said business sentiment turned more optimistic after the central bank’s Business Expectations Survey (BES) for the first quarter of 2010 showed that the business confidence index rose sharply to a two-year high of 39.1 percent for the first quarter of the year from 22 percent in the fourth quarter of last year.

Amador said the business confidence index was the highest since the fourth quarter of 2007 when it reached 48 percent and has continued to increase for the third straight quarter after a negative growth of 23.9 percent in the first quarter of last year.

“Emerging from the challenging economic conditions in 2009, businesses expect economic activity to continue to pick up in the current and succeeding quarters amid clearer signs of global economic rebound,” Amador said.

She pointed out that the business confidence index for the next quarter hit 52.6 percent or the second highest after 53 percent in the third quarter of 2007.

She attributed the sharp improvement of business sentiment to moderate inflation, the steady stream of remittances from overseas Filipino workers (OFWs), election-related spending, and continued foreign investment inflows.

“Moderate inflation, the steady stream of overseas Filipinos remittances, and election-related spending are some factors that buoyed respondents’ expectations of higher spending that will spur business activity. Furthermore, firms expected that continued foreign investment inflows will help provide funds for economic expansion,” Amador added.

According to Amador, the results of the survey validates a more solid economic growth this year and mirrors the improving business confidence in other countries including Hong Kong, Singapore, Australia, Europe, and the US.

“This validates how the economy will shape up in the near term,” Amador explained.

For her part, BSP director for Department of Economic Statistics Rosabel Guerrero told reporters that business morale in both the National Capital Region with 42.4 percent and areas outside NCR with 33.8 percent for the first quarter as well as 57.2 percent for NCR and 44.6 percent for areas outside NCR for the next quarter.

Guerrero said business sentiment accross sectors continued to improve in the first quarter of the year with the construction sector exhibiting heightened optimism with 48 percent followed by the services sector with 45.5 percent and the wholesale and retail trade sector with 34.4 percent.

She explained that the construction sector would benefit from government infrastructure project and big construction activities in the real estate market while the services sector particularly the financial intermediation would benefit from the availability of ample liquidity even during the global financial sector.

She added that monetary easing measures that started in December of 2008 would continue to help improve credit access and financial conditions due to improved liquidity providing sufficient credit to business for their operations.

According to Guerrero, the employment outlook index soared to a record high of 22 percent in the first quarter of this year from 8.7 percent in the fourth quarter of last year with improvements in the construction and services sectors that are expected to gear up for heightened demand during the summer season and the May 10 elections.

“Another indicator supporting expectations of an economic recovery is the employment outlook index for the next quarter which reached an all-time high of 22 percent,” she told reporters.

This despite the fact, that fewer companies expressed plans to pursue expansion projects. Fewer firms or 19 percent of respondents said they plan to expand their operations in the country in the first quarter from 23.7 percent in the last quarter of last year.

Respondents also expected inflation and interest rates to go up and the peso to appreciate in the first and second quarters of 2010 due to El NIno weather conditions as well as the impending power rate adjustments.

The Cabinet-level Development Budget Coordination Committee (DBCC) sees the country’s gross domestic product (GDP) growth between 2.6 percent and 3.6 percent this year from 0.9 percent last year while the BSP expects inflation kicking up to a range of 3.5 percent to 5.5 percent from 3.2 percent.

Large companies targeted for 55% of tax goal
Business World
http://www.bworldonline.com/main/content.php?id=6843

THE BUREAU of Internal Revenue’s (BIR) Large Taxpayers Service (LTS) has been tasked to collect 55.3% of the agency’s total collection goal this year and BIR Assistant Commissioner Nestor S. Valeroso told reporters of his group’s 2010 campaign that the LTS target is P459 billion, 1.8% more than the P451-billion goal last year.

He noted that his office fell short of the target last year, collecting P439 billion. The BIR also missed its collection goal of P798.5 billion last year, with total collections reaching P750.3 billion. For this year, BIR aims to collect P830 billion.

BIR Commissioner Joel L. Tan-Torres said in the same event that collections for February may exceed the bureau’s P48-billion goal. He said that, as of yesterday, collections were short of target by 16%, but that the tally still does not include payments made through BIR’s electronic filing and payment system.

"We will have more stringent enforcement activities to meet our target," Mr. Valeroso said.

Among others, he said, the BIR will set benchmarks for taxes per industry, based on tax returns of key industry members. Those that fall short of the benchmark "will be the target of our enforcement activities such as conduct of audit and Oplan Kandado."

Revenue Regulations No. 01-98 defines "large taxpayers" as those having satisfied any or a combination of the following criteria: a net value added tax paid or payable of at least P100,000 per quarter; annual excise tax paid or payable of at least P1 million; annual income paid or payable of at least P1 million; annual withholding tax paid of at least P1 million; percentage taxes of at least P100,000 per quarter; or aggregate annual documentary stamp taxes of at least P1 million; as well as any taxpayer with total annual gross sales of at least P1 billion; and with net worth at the close of each calendar or fiscal year of at least P300 million.

There are about 1,400 large taxpayers under LTS scrutiny.


______________________



Now, BIR eyes P.4-B MRT back taxes
Business Mirror
Written by VG Cabuag / Reporter
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=22339:now-bir-eyes-p4-b-mrt-back-taxes-&catid=23:topnews&Itemid=58

THE Bureau of Internal Revenue (BIR) is fast-tracking its drive to collect more taxes in a bid to meet targets before a new administration comes in, and has focused on collecting hundreds of millions of pesos in back taxes it believes are due from the operators of the Metro Rail Transit (MRT) and two toll-way operators in Metro Manila.

Revenue Commissioner Joel Tan-Torres said they have asked the Office of the Solicitor General to study the possibility of getting the 3-percent common-carriers tax (CCT) from the MRT for 2006 and 2007 and to give its opinion as soon as possible.

“We estimate that we can get P400 million from the MRT. We think the amount will be much higher because ever since MRT started its operations in 1999, they have not paid us,” he said.

He said that rail-transit operations will not be affected since it’s the Department of Transportation and Communications (DOTC) that should pay these back taxes, as the government subsidizes Metro Manila’s busiest elevated railway line.

The BIR is still studying the fine points of trying to collect from the North Luzon Expressway and South Luzon Expressway their back payments of the 12-percent value added-tax, which they had not been paying since 2005.

“Again, it will be the DOTC that will be the one to pay their back taxes,” said Tan-Torres. He said the discussions will be between them and the DOTC, and not with the toll-way operators.  

Common carriers are persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water or air, offering their services to the public for pay.

In 2007, Sen. Francis Escudero questioned the imposition by the BIR and the Department of Finance of the CCT. He said, “The additional tax burden to be imposed by the CCT will eventually hit the commuting public in the form of higher fares because transport operators will surely clamor for an increase in minimum fare.”

GMA tests MRT-LRT loop; Mar. 15 eyed for opening
Business Mirror
Written by Mia Gonzalez / Reporter
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=22336:gma-tests-mrt-lrt-loop-mar-15-eyed&catid=23:topnews&Itemid=58

AS part of her activities related to the 24th anniversary of the Edsa People Power Revolution, President Arroyo on Wednesday led a test run of the 39-kilometer LRT-MRT Loop which is targeted for operation by March 15.

Speaking at the flag-raising ceremony at the People Power Monument in commemoration of the Edsa 1 anniversary, the President said she would inaugurate the closing of the loop that would finally connect the LRT and MRT lines which will “bind the metropolis as never before so that people can travel faster, cheaper and safer from any part of the metropolis to another.”

The President walked for about 100 meters in the direction of the MRT Santolan station before boarding a vehicle to the station, where she was accompanied by Vice President Noli de Castro, Cabinet officials, and Light Rail Transit Authority (LRTA) officials.

From the MRT Santolan Station, the President and her party traveled to the North Avenue Station at Trinoma Mall and moved to a train bound for the LRT Balintawak Station where they disembarked for a guided tour and inspection of the new facility.

The President returned to the train that took her party all the way to the Grand Central Station in Monumento, where they transferred to an MRT train that took them back to the Santolan station, completing the loop tour.

On her way back to the Santolan station, the President said the elevated train system is the “fastest, cheapest and safest mode of transportation for the ordinary Filipino” made possible by the “katas ng VAT” or revenues generated by the expanded value-added tax.

During the train ride, LRTA general manager Mel Robles briefed the presidential party, which also included Executive Secretary Eduardo Ermita, and Transportation Secretary Leandro Mendoza, on the loop project.

Mendoza said the MRT-LRT Loop will be formally opened on March 15; by June, a single universal ticket for the MRT and LRT will be introduced.

He said the MRT-LRT Loop will bring in 80,000 to 100,000 more passengers but would not affect buses and jeepneys because of the increasing population.

LRTA Deputy Administration Cesar Chavez said the President has ordered the LRTA to begin work on the 12-kilometer LRT 6 project that expands the LRT 1 line from Baclaran to Bacoor in Cavite.

The Line 1 North Extension project, which closed the LRT-MRT Loop, involved the construction of a 5.71-kilometer elevated line seamlessly from the Monumento Station of LRT 1 to the North Avenue Station of MRT 3.

Election spending to boost Q1 growth
By Ronnel Domingo
Philippine Daily Inquirer

ELECTION SPENDING SHOULD boost the country’s economic output at a faster rate in the first quarter this year compared to the previous quarter, according to the investment banking unit of Barclays Bank.

In a 14-page report on the Philippines, Barclays Capital said that in the 2004 and 2007 elections, growth accelerated in the quarter preceding the polls.

“This was on account of election-related spending, with the domestic demand getting a boost, particularly investment and private consumption,” the paper said.

“We also show the experience in 2001, although that election was over-shadowed by the 2000-01 global recession,” it added.

Also, Barclays Capital puts a 60-percent probability that a fully automated ballot count will only be partially successful—meaning that authorities may have to rely on manual counting that would delay the proclamation of winners.

Such a scenario would initially dampen the financial market, but this sentiment would turn around once the election process is completed, the bank said.

Further, Barclays capital sees a 30-percent probability that the first-ever automated elections will sail smoothly, with credible results.

“Once the new president is sworn in, financial market participants will be keen to see the composition of the new Cabinet members and will be interested to hear the new administration's fiscal policy,” it added.

On the other hand, there is a 10-percent probability that the elections will fail completely, to which the market's reaction would be “very negative.”

The National Economic and Development Authority also expects election spending to help the economy regain momentum amid confidence that the worst of the global financial crisis over.

Dennis M. Arroyo, director of Neda's national planning and policy staff, said a study based on the 2007 national elections suggests that election spending accounts for an additional 0.34-percentage-point push on growth.

In a separate research issued in January, think tank GlobalSource Partners said that while election-related spending is often cited as a possible growth driver, it expects “a political business cycle...with effects masked by domestic or regional crises,” citing as examples the power crisis that ushered in the Ramos administration in 1992, and the Asian financial crisis and El Niño drought that welcomed the Estrada administration in 1998.

Even then, GlobalSource admits some evidence of elections driving GDP growth in recent national polls under the Arroyo administration.

GlobalSource notes that apart from boosting particular industries, such as publishing and print and broadcast media, elections tend to line the pockets of consumers with cash through proliferation of election-related jobs and handouts.


___________________________



‘Next president must focus on corruption, poverty reduction’
Business Mirror
Written by Cai Ordinario / Reporter
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=22326:next-president-must-focus-on-corruption-poverty-reduction&catid=33:economy&Itemid=60

INSTITUTIONAL constraints to growth will remain a reality for the next administration, which makes it imperative for the next president to not only focus on only one goal of eradicating corruption or poverty, but both.

University of the Philippines School of Economics (UPSE) dean Emmanuel de Dios said problems in Philippine institutions need to be met with “a bit of statesmanship” and measures that should be implemented must move to eradicate both corruption and poverty, which often lead to political instability.

“Yes, [institutional constraints to growth] will be there. It requires a bit of statesmanship to maneuver around them. You have to move against poverty, you have to move against corruption. It sounds corny but those are really the links that must be [addressed]. Once you’re president, you have to [address] both,” de Dios said in an interview after his lecture at the recently held 8th Ayala Corp.-UPSE Economic Forum.

In his lecture, titled “How So Institutions Constrain Philippine Growth?”, de Dios discussed that political instability often leads to lower economic growth.

This has already been seen in the performance of the country in the survey World Governance Indicators (WGI) periodically released by the World Bank. The WGI evaluates countries performance in voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption.

De Dios said that based on the previous WGI, the Philippines always ranked low in control of corruption and political stability. The years when the country ranked its lowest in these areas, the country also suffered very low income levels and foreign investment flows.

“Instances of massive corruption or economic or political processes have historically been the proximate cause of severe instability. Both instability and corruption have demonstrated a negative impact on investment. Low investment rate is a known feature of mediocre economic performance,” de Dios said.

These years include 1984 to 1986, which was at the tailend of the Martial law period prior to Edsa 1; 1988, when there were coup d’etats during the Aquino administration; 1999, during the impeachment trial, which led to Edsa Dos; and 2004, which was characterized by the “Hello, Garci” scandal.

The economics of squatting
Business World
http://www.bworldonline.com/main/content.php?id=6220

Urbanization has caused the proliferation of slums and informal settlements in Metro Manila. As of end 2002, there were some 701,764 depressed households, accounting for 33% of the total households in the metro.

As a result, development authorities are confronted with the problem of providing decent housing to these informal settlers and the tough task of preventing them from inhabiting other lands that could have been used for other purposes.

A casual observation, even just in the news, reveals that peaceful and well-meaning evictions hardly succeed. Messy squabbles normally arise from such incidents, snowballing to rallies and even court fights that take up even more precious resources from the government. These happen despite the obvious woes that informal settlers encounter in depressed areas, especially in terms of health and inaccessibility to proper facilities.

It is a curious case, to some extent. But this issue can be viewed from an economic perspective, which reveals various incentives at play that lead to this phenomenon.

The tragedy of the commons

When property rights are unclear, individuals have no incentive to take care of common resources, not only because doing so entails costs, but also because they will find it more rewarding to use more of that asset to maximize their own, individual benefits.

When every individual has the same tragic yet rational thinking, the resource eventually deteriorates: the so-called "ragedy of the commons". Take for example the case of squatting.

It just takes one group of individuals to start a colony of informal dwellings. For instance, suppose a family builds a house near a waterway where property rights are not explicitly defined. People who do not have permanent houses see the benefit or utility that this group gets, thus encouraging them to follow the initiative to reap for themselves the benefits of free land and unrestricted access to water.

The arrangement can be beneficial to a number of settlers, but beyond this limit, the informal settlers -- and additional ones that take residence there-- will gradually deplete the resources in the area. Also, if it is not the quality of land or the amount of water per se that is reduced, then the overall quality of living conditions diminishes due to increasing congestion.

As the benefits of the dwellers decrease, they tend to exploit the land further to compensate for their perceived losses, say, as in the hypothetical example above, residents start hoarding water. In the case of Metro Manila, when the property becomes saturated, informal dwellers start renting out portions of their dwellings to others. This, in turn, makes the population of the informal settlement even denser and exacerbates the deterioration of living conditions in the area.

Republic Act 7279

In its pursuit to provide decent housing for everyone and to maximize the use of urban land, the government passed into law Republic Act 7279 or the Urban and Development Housing Act of 1992.

Article VII of the law discusses Urban Renewal and Resettlement, providing guidelines on the management of slum areas. Generally, eviction or demolition is dissuaded; however, the law allows three cases in which eviction or demolition can be undertaken: (1) when these informal settlers reside in danger areas, including those near waterways, roads, garbage dumps or parks; (2) when projects of the government are ready to be implemented in the affected areas; and (3) and when the court orders such eviction and demolition to be carried out.

It also declares that the provision of a relocation site is mandatory for all eviction and demolition jobs, although this poses certain problems for the government. First, the relocation of informal settlers is costly.

The government must bear the burden of transporting these settlers to a different place. In addition, the government must also pay for the new relocation site. The government typically chooses a site that is away from the city, not only to reduce costs, but also to decongest the overpopulated metropolis.

Second, the government has to abolish "professional squatting". Informal dwellers are given more incentive to use the land when relocation sites are to be provided because they can use squatting as a means to get affordable decent housing from the government.

Contrary to its objectives, this gave rise to what has been known as professional squatting -- a phenomenon wherein an informal settler leverages his informal -- dweller status to obtain personal benefits.

For example, informal settlers who had been evicted and were provided free houses would sell these houses and go back to the city to squat again. While the law provides punishment for such practice, it has been very difficult to implement the policy.

Finally, the government has to combat the resistance of informal settlers in case of an eviction. This problem usually arises when the resettlement area for the evictee is far from their current location.

Urban economics and the problem of squatting

Resistance from informal settlers is somewhat expected. When an informal dweller looks for a job, he considers the travel costs he incurs when going to his job's location. When he is relocated to a farther place relative to his job, it means that he will have to incur higher travel costs, translating to a lower take home pay.

Still, rent or land prices adjust to ensure locational equilibrium. That is, people who want to be near the city center will have to pay higher rent than those farther away. To equalize the costs incurred in both locations, those near the center pay higher rent, while those farther away pay higher transport costs.

Like any other rational individual, the dweller-evictee would rather pay rent in another informal settlement near his job than to transfer to a relocation site, as long as the rent in the settlement is cheaper than his monthly travel costs. (Transport costs do not only include the monetary value, but also the time incurred in commuting.)

If that informal settlement is already saturated, and if all other rational dweller-evictees will do the same, then rent prices will bid up as space becomes scarcer. Upon the swelling of rent, the dweller-evictee will find it worthwhile for him to share the land that he rents with another dweller-evictee to divide the cost. This makes the population in slum areas denser, which worsens living conditions there.

And as more and more people want to live near the city, congestion becomes a more urgent concern. Uplifting the quality of life in highly urbanized areas and the provision of decent housing for everyone is part of the development process of any country, but there is a need for more balanced and equitable growth.

Opportunities must be dispersed in areas outside cities for people to also want to live there. While there will always be incentives to move into urban dwelling, the government must do its part in deterring them from living in informal settlements, so that growth without development is prevented.

el nino + super typhon.. lethal combination

why cant we make new dams. it will serve

1. It can minimize floodings
2. Source of energy (hydroelectrical plants).. ...
3. Can serve as source of irrigation during dry season.

All these are win-win situation for us.

We have so much water during typhoon months...almost drowning us. why cant we capitalize from these. We cant control nature but at least we can minimize the impact and turn around the situation for our advantages...


I dont mind what they say. But im for nuclear power plants. we just need to have the necessary skills and capabilities to operate and manage this plant. Low cost electricity. benchmark and learn from koreans and french who uses this kind of energy source

Nice suggestion...for people who are educated..they can appreciate this..but for some ignorant and idealistic minded people...it's a no for them...and that includes the catholic church...

Election spending to boost Q1 growth
By Ronnel Domingo
Philippine Daily Inquirer

‘Next president must focus on corruption, poverty reduction’
Business Mirror
Written by Cai Ordinario / Reporter
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=22326:next-president-must-focus-on-corruption-poverty-reduction&catid=33:economy&Itemid=60

INSTITUTIONAL constraints to growth will remain a reality for the next administration, which makes it imperative for the next president to not only focus on only one goal of eradicating corruption or poverty, but both.

University of the Philippines School of Economics (UPSE) dean Emmanuel de Dios said problems in Philippine institutions need to be met with “a bit of statesmanship” and measures that should be implemented must move to eradicate both corruption and poverty, which often lead to political instability.

“Yes, [institutional constraints to growth] will be there. It requires a bit of statesmanship to maneuver around them. You have to move against poverty, you have to move against corruption. It sounds corny but those are really the links that must be [addressed]. Once you’re president, you have to [address] both,” de Dios said in an interview after his lecture at the recently held 8th Ayala Corp.-UPSE Economic Forum.

In his lecture, titled “How So Institutions Constrain Philippine Growth?”, de Dios discussed that political instability often leads to lower economic growth.

This has already been seen in the performance of the country in the survey World Governance Indicators (WGI) periodically released by the World Bank. The WGI evaluates countries performance in voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption.

De Dios said that based on the previous WGI, the Philippines always ranked low in control of corruption and political stability. The years when the country ranked its lowest in these areas, the country also suffered very low income levels and foreign investment flows.

“Instances of massive corruption or economic or political processes have historically been the proximate cause of severe instability. Both instability and corruption have demonstrated a negative impact on investment. Low investment rate is a known feature of mediocre economic performance,” de Dios said.

These years include 1984 to 1986, which was at the tailend of the Martial law period prior to Edsa 1; 1988, when there were coup d’etats during the Aquino administration; 1999, during the impeachment trial, which led to Edsa Dos; and 2004, which was characterized by the “Hello, Garci” scandal.

Minsan hindi na din ako naniniwala sa mga taga UP..no offense..minsan over react din at emotional ang approach...

It is always easy to say to curve or minimize corruption and poverty...but the real question is how? has anybody proposed a solution to it? NONE...if there is a presidentiable that is defining the solution...that would be Gibo and Gordon...thre rest...it's all "gaya nyo akong mahirap" or "naghihirap tayo dahil sa corruption" duh!! alam na namin yun....mga gunggong!!

If you will analyze the last paragraph..it is really not about corruption..but more of hysterical reactions to political unstability...over reaction...who cares about corruption if there is stability....look at china???...you think there's no corruption in the Communist regime? suntok sa buwan....pero..they rule by force..wherein nobody can complain...now...investors are pouring in...because of stability...not because there is clean governance...I'm a businessman..and I know my priorities...sa corruption kasi ..mapapadali ang licensing..and all the bureaucratic haggards...

Don't u think...mas maganda mabigyan ng trabaho ang mga jobless rather than thinking...ay...nandaya yung businessman ng P1000 pesos sa tax? get the analogy of it???

Minsan..isipin natin ang big picture....think big...and not to tiny winy details...

All countries has corruption...ginawa lang legal sa US through lobbying....

In order to eradicate corruption..you need to make the people rich first..and improve their standards of living FIRST!!...

The economics of squatting
Business World
http://www.bworldonline.com/main/content.php?id=6220

Urbanization has caused the proliferation of slums and informal settlements in Metro Manila. As of end 2002, there were some 701,764 depressed households, accounting for 33% of the total households in the metro.


updated info on the number of squatters and the plan of government...

10 years needed to clear squatters: report

02/17/2010 - 18:22
Sunday, October 18, 2009

IT WOULD take about 10 years and a yearly budget of at least P13-billion to relocate the more than half a million squatter families or those living in “danger zones,” to pave the way for the cleanup of Manila Bay and its tributaries.

This was based on the report of the Metro Manila Inter-Agency Committee on Informal Settlers (MMIAC), which was included in the Compliance submitted by the Metro Manila Development Authority to the Supreme Court in line with its order for the cleanup and rehabilitation of Manila Bay.

For updates from around the country, follow Sun.Star on Twitter

In the report, MMIAC said that about 21 percent or 544,609 of the 2.6 million households in Metro Manila are living in informal settlements.

Out of 544,609 squatter families, 19 percent or around 75,000 are living in danger areas such as riverbanks, esteros, under the bridges, railways, roadways or sidewalks and aqueducts.

“The provision of shelter for the ever-increasing informal settlers in Metro Manila remains a challenging task for the government but it is not an impassible job,” the report said.

The MMIAC said these squatter families as well as those affected by the implementation of government infrastructure projects would be prioritized in the implementation of its 10-year housing program.

Under the program, the government needs to produce social housing 305 units per day or an additional 30,859 units per year over the current production of 30,141 units.

Thus, the total funding requirement for the 10-year program for both socialized and commercial housing needs in Metro Manila is estimated at P13.75 billion per year.

For socialized or public housing, the MMIAC said the total requirement is estimated at 22,689 units with a funding requirement of P3.225 billion per year.

Specifically, the government needs to produce additional 14,922 units every year in addition to the current production of 7,767 units.

It further disclosed that the development of an “off-site/off-city resettlement areas” will cost the National Government P200,000 just to resettle one squatter family in relocation areas like Calauan, Laguna.

For commercial or private housing, the total requirement is estimated at 26,323 units or a funding of P10.525 billion per year.

It also pointed out that another option, the development of the so-called medium rise housing, is a more expensive proposition as the government has to spend P800,000 to P1 million per unit per family.

“Those families living in informal settlements that are financially capable can avail themselves of shelter options that are off-site such as the private or commercial housing offered by Pag-ibig, government financial institutions, private subdivisions and townhomes,” the report stated.

MMIAC was established in 2007 to help the government deal with Metro Manila's perennial squatting problem.

It is composed of the Metro Manila Development Authority, Housing and Urban Development and Coordinating Council, National Housing Authority, Presidential Commission on Urban Poor, Commission on Human Rights, Office of the Undersecretary for Religious Urban, Caritas Manila, and various urban poor office in Metro Manila. (ECV/Sunnex)

^ who's going to pay for the housing of those lazy squatters? the hardworking middle class?

updated info on the number of squatters and the plan of government... 10 years needed to clear squatters: report
02/17/2010 - 18:22
Sunday, October 18, 2009

IT WOULD take about 10 years and a yearly budget of at least P13-billion to relocate the more than half a million squatter families or those living in “danger zones,” to pave the way for the cleanup of Manila Bay and its tributaries.

Out of 544,609 squatter families, 19 percent or around 75,000 are living in danger areas such as riverbanks, esteros, under the bridges, railways, roadways or sidewalks and aqueducts.
[/B]

Under the program, the government needs to produce social housing 305 units per day or an additional 30,859 units per year over the current production of 30,141 units.

Thus, the total funding requirement for the 10-year program for both socialized and commercial housing needs in Metro Manila is estimated at P13.75 billion per year.That is only to remove the current squatters. But MM is receiving hundreds of migrants daily. So we still have a backlog even if we would follow the suggestions in the article.

^ who's going to pay for the housing of those lazy squatters? the hardworking middle class?As usual, we would suffer the burden most... :ohno:

ey wag mo namna lahatin.

UP po ako. I believe in myself hehe

^^ Ha?:dunno:

^^ LOL!

Seriously, talaga namang middle class ang tagasalo lahat ng burden ehy.

^^^^

Agree here.:)

Philippine industrial sector sustains recovery in December


Friday, 26 February 2010 00:00
BY DARWIN G. AMOJELAR Senior Reporter
Manila Times

THE Philippines’ industrial sector continued to recover in December with factory output and merchandise imports recording double-digit growth, the government said on Thursday.

The National Statistics Office (NSO) said merchandise imports were up by 17.9 percent to $3.892 billion from $3.301 billion in December 2008.

The NSO attributed the expansion to the higher purchases of electronics and fuel products.

Despite the growth last December, full-year imports still dropped 24.2 percent to $43.004 billion from $56.746 billion in 2008.

Electronics, which accounted for 31.6 percent of the total purchases from abroad, went up 2.5 percent to $1.231 billion over the previous year’s $1.134 billion.

The Philippines imports electronics components that are used to assemble the country’s biggest dollar earning products.

Imports of mineral fuels, lubricants and related materials grew by 14.6 percent to $755.96 million in December from $659.55 million in the same month of 2008.

Japan remained the country’s biggest source of imports, with purchases worth $465.34 million, up from $394.00 million in December 2008.

Separately, the NSO said the country’s factory output likewise rose 11 percent in December, a reversal from the 9.6-percent contraction in the same period of 2008.

The NSO said 15 out of 20 major sectors recorded increases in production with miscellaneous manufactures contributing the largest increase of 156.5 percent, followed by nine other sectors such as electrical machinery, basic metals, transport equipment, non-metallic mineral products, machinery except electrical, rubber and plastic products, tobacco products, fabricated metal products and furniture, and fixtures.

Month-on-month, the volume of production index, however, grew at a slower rate of 3.5 percent last December.

The value of production index also went up by 8.6 percent in December last year from 9.6-percent contraction in the same month of 2008.

The National Statistical Coordination Board said total employment in Philippine industries fell 5.2 percent from July to September last year, faster than the 2.7-percent contraction in the same period in 2008.

The agency said employment in mining and quarrying declined by 18.3 percent followed by a contraction in manufacturing, private services and real estate at 7.8 percent, 5.5 percent and 1.7 percent, respectively.

The compensation index also declined by 1.7 percent, a reversal of the 7.3-percent growth in 2008.

Gross revenues of the country’s industries also recorded a weak growth of 0.7 percent in the third quarter of 2009 from a 13.8-percent expansion in the same quarter the previous year.

Nice suggestion...for people who are educated..they can appreciate this..but for some ignorant and idealistic minded people...it's a no for them...and that includes the catholic church...

What about protecting our watersheds instead? Damming is not always the best solution - it upsets the fragile ecological balance of the ecosystem that it will affect.For generating electricity, we can always turn to other alternative forms which, although a little more expensive, is albeit more sustainable. Not all who does not agree on one's opinion is considered ignorant or too idealistic. It can also mean that there are better. more sustainable solutions that can be used. Edukado din ako but I am against damming due to its major environmental consequences. Edukado ako, pero hindi rin po makitid ang utak ko.

The Philippines ranks No. 6 in global high business profitability. This could only mean more investment to pour in.:cheers:

Where Businesses Expect High Profit Growth in 2010

A new study by Grant Thornton reveals the countries where companies expect to see profit growth in 2010 By Venessa Wong

Given that Vietnam was engulfed in combat with so many countries for much of the twentieth century, outside observers might expect to find an economy handicapped by communism and the aftershocks of war and trade embargoes. They'd be wrong. In fact, according to a new report on global business optimism from consulting firm Grant Thornton International, Vietnam has become the country where the greatest percentage of companies expect to see profit growth.

The report was based on surveys of 7,400 managers of medium-to-large privately held companies in a broad range of sectors—mainly cleantech, food and beverage, construction and real estate, hospitality, transport, manufacturing, retail, financial services, health care, and technology—in 36 countries to gauge which holds the greatest upside potential for 2010. Vietnam scored highest in three forward-looking growth categories: employment, revenue, and profitability. Further categories included overall optimism (Chile ranked No. 1, with Vietnam fourth) as well as exports and research and development.

Of 150 companies surveyed by Grant Thornton in Vietnam, 95% expect higher revenues and 92% say profits will increase in 2010. The global average was 54% and 47%, respectively. A new survey by HSBC of small-to-midsized enterprises also puts Vietnam on top for business confidence in Asia.

Ken Atkinson, managing partner at Grant Thornton Vietnam in Ho Chi Minh City, says: "People are pretty optimistic about this year." Citing new roads and power plants under construction, Atkinson has noticed in recent months an increase in due diligence in mergers and acquisitions. "I expect more companies will be working at full capacity [this year] than previously."

IMF Sees 4% Global Growth in 2010

Unlike many other economies, Vietnam had a relatively strong 2009. Gross domestic product grew 5.3%, unemployment stayed below projected levels, and consumer spending was up 20% in certain places. While expansion slowed to the lowest rate in a decade, Vietnam's government—which approved an $8 billion stimulus plan to help stabilize the economy—projects economic growth to accelerate to 7% this year.

According to the latest International Monetary Fund forecast, the global economy—led by emerging markets, especially in Asia—will bounce back from shrinking in 2009 to grow 4% this year.

"Last year everything generally was turning down. This year things are generally turning up," says Alex MacBeath, Grant Thornton's global leader-markets in London. He added that after making reductions last year, many companies project that sales will increase in 2010 as finance becomes more accessible, lenders increase support, and consumption rises.

Alongside companies in Vietnam are those in India, the Philippines, Brazil, and Chile, which also project bigger profits. Many plan to invest in new buildings, plants, and machinery this year. China had the largest percentage of companies that intend to boost R&D, although less than half believe profits will rise.

In the U.S. and U.K., companies were less resilient, but outlooks improved from last year. About 50% of survey respondents in the U.S. and slightly more than half in the U.K. expect higher profits and revenue.

Gloom in Europe and Especially, Japan

"In the mature economies, the impact was greater and they are taking longer to come out of the recession," MacBeath says.

Regionally, the European Union (especially companies in Spain and Ireland) registered the greatest pessimism, with more than half of respondents expecting profits to decrease or remain the same. As a country, Japan was the gloomiest: Nearly three-fourths expect profits to decrease or remain the same, contrasting starkly with responses from Asia's growing economies. Japan and Germany ranked lowest in the survey for accessibility to finance.

Despite more difficult times ahead, most companies in the EU and Japan anticipate an upturn by 2011.

To sustain recovery, the IMF reports that advanced economies must continue repairing the financial sector, while some emerging markets will need to design policies to manage a surge of capital inflows. "Now that the more acute phase of the financial crisis is behind us, some of the liquidity and guaranty measures put in place by central banks can be phased out. And indeed, this is already well underway," said Olivier Blanchard, economic counselor and director of research at the IMF, at a press conference last month.

"While businesses are optimistic, everyone recognizes that the recovery is fragile at this point," says MacBeath. "Business needs to be cautious and be attuned to the market until there is demonstrable evidence that the economy sees an upturn."

SOURCE: http://www.businessweek.com/globalbiz/content/feb2010/gb20100223_850598.htm

^ who's going to pay for the housing of those lazy squatters? the hardworking middle class?


not only them but all taxpayers in any form/way.

^^ Ha?:dunno:

under privileged = UP

under privileged = UP

haha ganun ba yun, ako din napatunganga :nuts:

^^ I thought U of the P.:doh::lol:

Government maintains 2.6%-3.6% growth target

By Iris C. Gonzales
(The Philippine Star)
Updated February 27, 2010 12:00 AM

MANILA, Philippines - The government is maintaining its 2.6- to 3.6-percent growth projection for 2010 despite the expected negative impact of the El Niño weather phenomenon.

Acting Socioeconomic Planning Secretary and NEDA Director General Augusto Santos said the 2010 growth projection, approved by the interagency Development Budget Coordination Committee (DBCC) last year, already took into account the possible damage from El Niño.

Analysts have been urging the government to slash its 2010 growth projection, saying that the El Niño phenomenon is expected to dampen agriculture output and cut overall economic growth this year.

However, Santos said the growth projection “has already factored in the possible damage of prolonged drought to the agriculture and the utilities particularly energy and water subsectors.”

Santos also said that the DBCC had already taken into account the possible reduction in employment in the affected sectors which could affect income and consumption of households.

The government is counting on the expected recovery of other sectors such as industry and services to drive growth this year.

“Notwithstanding the negative implications of El Niño, the projected growth for this year is anchored on the expected gradual recovery of both the industry and services sectors,” he added.

These sectors account for about 32 percent and 50 percent, respectively, of the total economy.

Santos said the conservative assumptions on the growth of these sectors took into consideration the adverse effects of possible power and water shortages, the fragile world economic recovery and the measures by government to mitigate the effects of prolonged drought. Such measures include the rehabilitation of existing irrigation facilities, water rationing to the most affected areas, the distribution of irrigation pumps and cloud seeding.

He also said that NEDA is closely coordinating with concerned agencies like the Department of Agriculture (DA), the Metropolitan Waterworks and Sewerage System (MWSS), the National Water Resources Board (NWRB), the National Irrigation Administration (NIA) and the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) as part of the government’s response to the problem.

“We engage in the timely exchange of information with them as they implement appropriate policies to lessen the impact of the drought,” the NEDA official said.

Santos said the government would continue to monitor the situation and review the macro assumptions if necessary.

“We will apprise the public and various stakeholders should there be a need to revise the growth target for the year,” Santos said.

Last year, the economy grew by 0.9 percent or within the 0.8 to 1.8 percent growth target for 2009.

View previous articles from this author.

^^ mukhang pangarap na lang ang 7-8% growth this year..

^^ if only BPOs can drive the economy that high :)

Watch out for the ff. during the next few weeks: the dollar index, prime lending, commercial real estate, Chinese sales of U.S. bonds and other dollar-denominated investments, the effects of sovereign debt and unemployment in the States and among the PIIGS, food prices, drops in savings in Japan, and others in light of local employment and exports.

Also, keep in mind the percentage of consumer spending that's counted as economic growth, measures for employment rates (e.g., sometimes, the unemployment rate looks only at laborers who were laid off during a particular month but does not add those who were laid off before and are still unemployed), the P/E ratios for the U.S. and other markets, processes like mark-to-market accounting and high-frequency trading, the effects of stimulus packages in various countries to "recovery" and how long those packages will last, shipping volumes via the BDI and freight volumes in the U.S. and in other countries.

US group starts $50-billion project in Zambales

By Bebot Sison Jr. (The Philippine Star) Updated March 01, 2010 12:00 AM


IBA, Zambales, Philippines – US-based financing firm Swiss Global Connect USA has started the first phase of a massive $50-billion project package focusing on infrastructure, mining, tourism and property development in this province.

Zambales Gov. Amor D. Deloso led the groundbreaking ceremony with Swiss Global through local partner AIPAC Philippines Management Corp., represented by its president Rubina Zahid.

Deloso said the first phase involves a mass housing project in Botolan town for some 5,000 residents displaced by the series of destructive typhoons last year and the rehabilitation of the six-kilometer Bucao river dike.

He said the entire program is in accordance with the build, operate and transfer (BOT) and the build, operate and own (BOO) schemes of the government.

“The provincial government has outlined a 10-year infrastructure development program identifying the Zambales dream project which was envisioned to spur economic growth in the province,” Deloso told The STAR.

Among these priority projects are tourism and real estate development, infrastructure, agricultural research, indigenous power supply, and mineral enhancements and exploration sectors.

“I would like to thank Swiss Global Connect USA and AIPAC Philippines Management Corp. for believing in the Zambales 2020 vision,” Deloso said.

For her part, Zahid told The STAR that their company has been eyeing Zambales due to its natural beauty and topography.

Zahid added that the projects will generate substantial direct ventures through “foreign investment multiplier effect.”

She said renowned Filipino inventor Doroteo Gaerlan designed the Bucao river dike which will feature an “aqua-tech” fish pond to be built in between the walls of the dike. The top concrete surface of the dike will be the alternate access road going to the mass housing project.

Based on the unsolicited proposal unanimously approved by the provincial board in July last year, the $50-billion fund will be earmarked for the economic development projects on tourism such as San Salvador Island, Masinloc resort complex, Mt. Tapulao resort, Palauig tourism complex and the Zambales Fantasy Island in Subic town.

Among the infrastructure developments include the toll by-pass expressway linking Tarlac and Zambales via the North Luzon Expressway (NLEX) and the Subic-Clark-Tarlac Expressway (SCTEX) that will traverse through the mountain ranges of Zambales and Tarlac, and the upgrading and rehabilitation of the Iba Airstrip into a domestic airport.

Deloso said the proponent will also conduct exploration on metallic and non-metallurgic minerals in areas initially identified to have substantial mineral deposits. This will involve drilling intended for the mining feasibility study, and if necessary, set up appropriate processing plant consistent with the prevailing environmental policies, laws, rules and regulations.

The project will also be involved in dredging, desilting and other forms of engineering interventions along the river channels of Maculcul, Maloma and Bucao to avoid flash-floods in nearby areas.

In San Salvador Island, a world class island tourism complex will be put up to be the next international tourism destination where visitors can experience supreme tourism facilities such as world-class hotels and restaurants, exclusive deluxe villas in the “Garden of Eden” setting, water sports and yacht clubs.

A central park carved out of a well-planned green park integrated with shopping and leisure complex, souvenir shops, zoo and ethnic village and Odeon theatre equipped with the state-of-the-art audio-visual equipment will also be built on the island resort.

The project will also have a dolphinarium and oceanarium using transport service powered by electric car to ensure an eco-friendly environment within the island resort to maintain its current marine-life sanctuary condition.

In the Mt. Tapulao Complex, an integrated and sustainable eco-tourism complex will rise, promoting ‘green and blue tourism’ in mountain to rival Baguio City, the country’s summer capital, and its coastal area comparable to Boracay Island.

Some of the features of the tourism development include hotels and condominium, shopping centers and restaurants, recreation and fitness centers, golf course and sports centers, and marina park. For nature lovers, trekking and camping areas, mountain recreation parks with view decks and mountain resort will all be built in Mt. Tapulao.

Meanwhile, the Zambales Fantasy Island in Subic will be patterned after the internationally known Oceanside resort, integrating cultural, historical and medical tourism facilities. The project will also feature the latest design and technology concepts on a world-class tourism complex that is environmental friendly.

Features of the Ocean Fantasia include a five-star hotel and condominium, water park and ocean recreation sports center, ocean pension facilities offering underwater photography, specialized restaurants serving Asian and international cuisines. A port facility for cruise ships and yachts will be built with cable cars and golf course.

Another project in the pipeline is a new real estate development in a 620-hectare idle land in Bgy. Cawag in Subic, Zambales to transform the area into a financial district, educational and learning center, with executive housing, parks, hotels, convention center and state-of-the-art hospitals.

Also, the province is eyeing a state-of-the-art agricultural research center on a with possible tie-up with Ramon Magsaysay Memorial State University (RMMSU) for a research and development center.

The center will be equipped with modern laboratory apparatus and machineries for agricultural research to develop and produce high variety of seeds of traditional crops such as rice, corn, mangoes and orchard to increase productivity.

Another involves the conversion of magnesium energy into alternative source of energy. This will involve the allocation of a shoreline area with at least 64-hectares for the construction of a facility to convert magnesium energy into an alternative and affordable power supply for the province of Zambales, as well as meeting the power requirements of all of those tourism and real estate developments.

what the? $50 Billion???

Local firms in hiring mode - survey

By Lawrence Agcaoili
(The Philippine Star)
Updated March 01, 2010 12:00 AM

MANILA, Philippines - A survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed that more and more companies are looking at hiring additional employees after rationalizing their workforce during the height of the global economic meltdown.

Rosabel Guerrero, director of the BSP’s Department of Economic Statistics (DES), said the employment outlook index for the next quarter reached an all-time high of 22 percent in the quarterly Business Expectations Survey (BES) for the first quarter of 2010.

“This is another indicator supporting expectations of an economic recovery,” Guerrero said.

This was the highest since the employment outlook index reached a previous high of 21.7 percent in the first quarter of 2008 before plunging to negative territories in the fourth quarter of 2008 as well as first and second quarters of 2009 due to the impact of the global financial crisis.

She pointed out that the employment outlook was particularly favorable for the construction and services.

She added that bullish sub-sectors include financial intermediation, renting and business activities, real estate as well as hotel and restaurant that are already gearing up for heightened demand during the summer season and the May political exercise

Guerrero said the employment outlook index reached a new all-time high despite the fact that fewer companies expressed plans to expand their operations in the Philippines due to their excess capacities.

“As firms in the industry sector still have excess capacity, fewer firms or 19.9 percent of the respondents indicated expansion plans for the first quarter this year compared to the last quarter’s survey wherein 23.7 percent indicated their plans to expand their operations in the country,” she added.

Respondents of the survey placed their average capacity utilization at 72 percent in the first quarter of the year from about 69.8 percent in the last quarter of 2009.

Guerrero said respondents cited competition, weak demand leading to low sales volume, and financial problems as the major business constraints in the first quarter of the year.

The BSP earlier said the business confidence index rose sharply to a two-year high of 39.1 percent for the first quarter of the year from 22 percent in the fourth quarter of last year showing that businessmen are more optimistic that the domestic economy would recover from the worldwide economic debacle this year.

This was the highest since the fourth quarter of 2007 when the business confidence index reached 48 percent and has continued to increase for the third straight quarter after a negative growth of 23.9 percent in the first quarter of last year.

The Q1 2010 BES was conducted from Jan. 5 to Feb. 12. There were 1,664 firms surveyed nationwide and the respondents were drawn from the Top 7,000 Corporations of the Securities and Exchange Commission (SEC).

^^ if only BPOs can drive the economy that high :)

Speaking of BPOs...

Contact center spices up food service

By Linda B. Bolido
Philippine Daily Inquirer
First Posted 20:41:00 02/27/2010

http://images.inquirer.net/media/business/money/topstories/images/pic-02280757590325.jpg

CITY Delivery call center agents familiarize themselves with the restaurants’ menus to help callers make their choices. PHOTO BY JOAN BONDOC:)

IN THE middle of a busy day or at the end of an exhausting one, when you feel like having a good meal to relieve stress, you may phone in the comfort food of your choice from a restaurant and have it delivered right at your doorstep.

All you have to do is check out the list of restaurants City Delivery services and dial 87878.

You no longer have to settle for the usual hamburger, pizza, or chicken fare. City Delivery now offers anywhere from Japanese to Thai, Singaporean to Italian, and several other dishes in between.

You can even get donuts, pastries and yoghurt. For a minimum order of P500 – with 10-percent delivery charge – you can enjoy “limited edition” dishes in your office or at home seven days a week from 10:30 in the morning to 10:30 in the evening. Whether it is a meal for one or an impromptu feast for a dozen, you dial just one number to choose from almost 30 restaurants.

And if you feel like organizing a relaxing evening with the guys or gals, playing a friendly game of poker, City Delivery will even provide the deck of cards, together with the beer, wine and soda, plus potato chips and other snack items. The company has a respectable selection of imported beers, some wines, including Moet et Chandon bubblies, and products from San Miguel Corp. and Coca-Cola.

As is often the case with new business ventures, City Delivery came about as a solution to a personal problem, according to Raquel B. Bartolome, sales and marketing supervisor, and Edelynn Marie A. Tolentino, sales and marketing executive.

The women say that the enterprise, City Delivery Food Solutions Inc., came about when the owner got home one evening and felt the need to dine on something other than the usual fastfood meals. He was too tired to cook and did not feel like wading through Metro Manila’s heavy traffic to have his fill of something different.

Bartolome and Tolentino say that the owner got the idea of a food delivery service from a similar company that has been doing brisk business in Shanghai.

When he returned from China, the women say, the owner wanted to become the Shanghai firm’s franchisee here. But the Chinese encouraged him to start his own business, so City Delivery was born.

The owner, along with some cousins turned business associates, all wish to remain anonymous, the women say.

Bartolome and Tolentino explain that the service has been designed primarily for the A and B markets, as well as discerning diners who are not too keen on fastfood. The restaurants City Delivery services at the moment has more than 1,000 dishes to offer, varied enough for even the pickiest and fussiest of diners (complete menus of restaurants are available at the company’s web site, www.citydelivery.ph).

Right temperature

City Delivery tries to make sure that the food reaches the client fresh and in good order. It has even customized their delivery boxes and the motorcycles couriers use.

The food compartment has both hot and cold boxes, each with two shelves – the bottom one has room enough to accommodate cakes. The Yamaha motorcycle has been equipped with a plug for the hot box so food is kept warm during transport. Each courier delivers food from only one restaurant and the box has a slot where the name of the establishment can be slid in.

City Delivery has also issued member establishments round stickers of its logo. The stickers are placed on every food container to guarantee that the food is delivered just the way it was packed by the food outlet. Of course, quality of the dish itself is the responsibility of the establishment.

Bartolome says their initial choices of partners were “personal favorites of the owners, their friends and friends of friends.” Of their current partners, only three have regular delivery services. Some establishments may accommodate delivery only if the destinations are nearby, she says.

Orders received at the City Delivery call center are sent to the restaurants concerned via dedicated fax numbers to make sure they are given priority.

At the moment, City Delivery has two hubs – one services the Makati and Fort area, while the other takes care of Ortigas, Greenhills and Eastwood. Business is more brisk at the Makati-Fort area as there are more restaurant partners in that part.

“Delivery takes 45 minutes to one hour,” Bartolome says. “This is not fastfood, so it takes a little longer to prepare the dishes.”

The business started only in December, but Tolentino says they now average 200 calls a day, about 40 to 50 percent of their initial target.

“We are taking orders not just from offices but also exclusive villages, with more orders being placed in the evening,” she says.

Trained staff

Because it has a more fastidious clientele, City Delivery makes sure that its staff – from the people who receive orders to the delivery crew – get the proper training. The call center staff is oriented on the various restaurants and the dishes they offer to help callers navigate the tricky path from Brussels sprouts to ube macaroons.

Couriers, or “riders” as they are called, have to demonstrate skill and strict observance of safety rules. City Delivery will not guarantee the food will get to you within so many minutes because it does not want to pressure its riders to ignore basic safety precautions and traffic rules, putting their lives and limbs at risk and the food in danger of getting mashed and crushed, just to beat the clock. The riders are also trained to deliver a brief spiel about the company, the restaurant where the food came from and the food itself.

To ensure that your order gets to you at a precise time, City Delivery suggests placing your orders a day before or even earlier.

At the moment, the company services Bizu, The Bread Bag, Crustasia, Freska, H&E, Kitchen, Little Asia, New Orleans, Peri-Peri, The Flying Pig, Seafood Island, Chlorophyll, Cupcakes, Gonuts Donuts, Berries Fresh Yoghurt, Konbini Store, Mangan, National Sports Grill, Red Kimono, The Red Crab’s, Blufish, Claw Daddy’s, Fish out of Water, Gourdo’s, Jatujak, Life Coffee & Tea, Mr. Choi Kitchen, Texas Smoke ’Em, and Secret Recipe.

A damaged culture and the economy

AMADO P. MACASAET
Malaya Business Insights
March 1, 2010

‘…(E)conomic development programs are invariably crafted during the election campaign period.They are pieced together mostly by politicians or economists with strong political leanings. All of the programs are calculated to attract votes, not really to make the economy grow.’


The Philippines was a basically agricultural country trying to industrialize. Today, it can neither rely on agriculture nor industry as the main drivers of the economy.

Both have not moved fast. On the contrary agriculture has been nearly completely destroyed.

My generation recalls the time when this country was probably the biggest exporter of round or raw logs to Japan. The present generation knows the Philippines is importing lumber from as far as Brazil.

It does not even have enough for what could be a thriving manufacturing industry.

Our forests have been raped bringing with it death and destruction. The program to add value to logs never went beyond producing plywood which did not even satisfy local demand.

Starting with the administration of President Carlos P. Garcia, followed by that of Diosdado Macapagal and the one-man rule of Ferdinand Marcos, the correct thinking was the country needed an integrated iron and steel industry to serve as the backbone of industrialization.

The Iligan Integrated Iron and Steel Mills went to pot as the family it was awarded to failed to push the project through but succeeded in getting the government to honor the hundreds of millions of dollars it guaranteed for supplies and equipment to such world financiers as the World Bank and other multi-lateral institutions.

We are back to the crude ways of making iron and steel bars largely for the construction industry, GI sheets, and other small items produced in what might well be considered a cottage industry operation.

The 16-year authoritarian rule of Marcos started rather well. It expanded the land reform program for rice and corn started modestly by President Macapagal. He knew enough that the first order of the day was food for a growing number of Filipinos.

Simultaneously, his administration – composed of extremely competent technocrats – started dreaming wild dreams. Thus was born the Board of Investments in 1978.

It was headed by a mechanical engineer who had a master’s degree in business in Harvard.

Cesar E.A. Virata was an honest competent man who tried to lead the country to slow industrial growth. But the program turned out to be a bit too ambitious and in at least a few instances, wrong.

The first mistake was appropriating to themselves the decisions that exclusively belong to those who risk capital. The BOI came up with so-called measured capacity.

The Marcos regime granted incentives to so-called pioneer or untried and risky ventures and discouraged what it considered crowded industry. One of them was cement.

Strangely the country has been periodically importing cement since the time of President Aquino. It was a feast and famine industry in the time of President Macapagal.

The BOI continues to draw up an annual priorities plan particularly in exports and industry. In fact, early in the days of BOI, the Marcos government even drew up a Progressive Car Manufacturing Program. The intent was to increase local content of cars.

It did not go beyond local production of axles and motor engines by Ford Philippines. Again today, the country imports completely built up (CBU) automobiles from Japan and Thailand.

The events of the past that I can recall not with any degree of accuracy tell me that economic development programs are invariably crafted during the election campaign period.

They are pieced together mostly by politicians or economists with strong political leanings. All of the programs are calculated to attract votes, not really to make the economy grow.

Theoretically or maybe for all practical purposes, the concentration should be on agriculture. Agriculture is the foundation of the growth of the industry. Agriculture solves the problem of food shortage.

When farm incomes go up, the rural people exert demand on the products of industry. Pursued to the limits, it is agriculture which is the real driver of growth in the manufacturing and industrial sectors.

It is beyond any thinking man’s imagination why this country is taking one step forward and two steps backward. Or at best, it is running as fast as it can to stay in place.

As the state comes up with more and more laws to spur growth, more and more laws to stamp out corruption, the country sinks deeper into poverty, in fact extreme want.

The Philippines never had an agency – constitutionally created – with the sole function of eliminating thievery and sending the thieves to jail. It was enough then that there were enough courts with honest and competent judges who punish the crooks.

Marcos ordered the creation of a special agency whose only purpose is to prosecute crooks in government. Under the Anti-graft and Corrupt Practices Act , the Office of the Ombudsman prosecutes.The Sandiganbayan is the special court that tries cases of graft and corruption.

Yet, thievery in government continues to rear its costly head.

None of the things I say here is unknown to the Filipino. They loudly complain. But they do not act.

What conclusion can one draw from all these? That indeed we are a damaged culture. We need a purge. But I do not see it coming.

US group starts $50-billion project in Zambales

By Bebot Sison Jr. (The Philippine Star) Updated March 01, 2010 12:00 AM


IBA, Zambales, Philippines – US-based financing firm Swiss Global Connect USA has started the first phase of a massive $50-billion project package focusing on infrastructure, mining, tourism and property development in this province.




this project is so good but why isn't this getting enough media mileage? hmmmm... there is something wrong here.

US group starts $50-billion project in Zambales

By Bebot Sison Jr. (The Philippine Star) Updated March 01, 2010 12:00 AM


IBA, Zambales, Philippines – US-based financing firm Swiss Global Connect USA has started the first phase of a massive $50-billion project package focusing on infrastructure, mining, tourism and property development in this province.


$50 Billion? in USD? or in Pesos? If it's in USD, it's massive. I guess it's in tranche for _______ of years.

Speaking of BPOs...

Contact center spices up food service

By Linda B. Bolido
Philippine Daily Inquirer
First Posted 20:41:00 02/27/2010

http://images.inquirer.net/media/business/money/topstories/images/pic-02280757590325.jpg

CITY Delivery call center agents familiarize themselves with the restaurants’ menus to help callers make their choices. PHOTO BY JOAN BONDOC:)

IN THE middle of a busy day or at the end of an exhausting one, when you feel like having a good meal to relieve stress, you may phone in the comfort food of your choice from a restaurant and have it delivered right at your doorstep.

All you have to do is check out the list of restaurants City Delivery services and dial 87878.


This is really cool. We tried this. Their food is also okay. :cheers:

really? $50 BILLION?! WOAHHH!!

really? $50 BILLION?! WOAHHH!!

I checked the website and indeed there is an article of the Zambales project with an awesome rendering.

Below-3% growth seen (http://businessmirror.com.ph/index.php?option=com_content&view=article&id=22416:below-3-growth-seen&catid=23:topnews&Itemid=58)
Monday, 01 March 2010

DUE to the worsening effects of the El Niño weather phenomenon, First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) Capital Markets Research has revised its growth projection downward to below 3 percent for the first quarter of 2010.

In the latest issue of The Market Call, FMIC and UA&P Capital Markets Research showed that the country’s gross domestic product (GDP) will be below 3 percent in the first quarter due to El Niño.

This was a downward revision from the last Market Call report where the group projected a GDP and gross national product (GNP) of 4.5 percent and 4.2 percent, respectively.

“It is not the turmoil happening abroad—Greece, Eastern Europe or Thailand—that is impeding a more rapid recovery of the Philippine economy. Rather, it is Mother Nature that is having a big impact with extremely bad weather slamming the country,” FMIC and UA&P Capital Markets Research said.

“GDP growth for Q1 is likely to be below 3 percent, considering a 2 to 3 percent decline in agricultural output due to El Niño, and strong peso that will limit the [stimulus] effect of OFW remittances. Growth may only be slightly faster in Q2 due to heightened election spending,” the group said.

FMIC and UA&P Capital Markets Research explained that the El Niño weather phenomenon will bring down Agriculture growth by 1 to 2 percent in the first six months of the year.

This will likely pose a threat to inflation. The group said the increase in inflation, however, will remain steady between 4 and 4.6 percent despite the recovery in crude oil and metallic mineral prices due to weak domestic aggregate demand.

“As for food prices, there is certainly an El Niño threat, which is already being felt. Fortunately, the government has already placed orders to import the needed amounts of rice in 2010 H1,” the group explained.

One of the things that will make the economy continue to post a growth is the expected increase in Overseas Filipino Workers (OFWs) dollar remittance growth.

The Market Call stated that OFW remittances posted another double-digit growth of 11.4 percent in December 2009, slightly higher than November’s 11.3 percent.

Year-to-date, OFW remittances reached $17.3 billion, 5.6 percent higher than $16.4 billion of 2008. This is also higher than the $17.1 billion forecast by the Bangko Sentral ng Pilipinas (BSP) and accounted for 10.8 percent of GDP.

“We view that OFW remittances will continue its growth. Although this may be limited to single digit growth, we see that the recovery of the US and the continued construction activity in the Middle East would be the positive factors to this sustained growth,” the group said.

Further, the group also said tax revenues for December 2009 and January 2010 reports give more hope of catching up from the 6.6 percent fall in 2009.

The improved tax revenues in the first two months of the year, the group said, was mainly due to the faster pace of GDP growth compared to last year’s average of 0.9 percent.

This, the FMIC and UA&P Capital Markets Research said, will allow the national government’s deficit to closely track the targets for the first half of the year.

Earlier, the National Economic and Development Authority (Neda) earlier said the 2.6-3.6 percent fullyear growth target will be maintained.

Acting Socioeconomic Planning Secretary and Neda Director-General Augusto B. Santos said the growth projection already factored in the expected damage of the “prolonged drought” on agriculture and utilities.

Santos said the government’s growth estimates already took into consideration the adverse effects of possible power and water shortages, the fragile world economic recovery, and the government’s measures to mitigate the effects of prolonged drought.

He said the measures include the rehabilitation of existing irrigation facilities, water rationing to the most affected areas, the distribution of irrigation pumps and cloud seeding.

I checked the website and indeed there is an article of the Zambales project with an awesome rendering.

I also checked their website. Pero parang duda ako. Kasi wala masyadong information about the company. Wala ding Investor Relations section yung website. I hope this is really true, though. Laking investment nito pag nagkataon. Sana totoo nga, baka mapaluha pa ako sa tuwa pag totoo tong news na to. :)

Check the rankings for the Philippines:

http://www.doingbusiness.org/

Related:

"Back to the crash"

http://www.economist.com/world/united-states/displaystory.cfm?story_id=15579916

questionable maxado tong 50billion proj sa zambales..visited the sight too..

working in a BPO is more productive than working in a two-bit NGO, doing nothing the whole time but begging for funding :lol:

Govt to stop ore shipments

by Othel V. Campos
Manila Standard
March 1, 2010

The Environment Department plans to stop direct ore shipments in five years and ask mining companies instead to export semi-processed or finished products.

Environment Secretary Horacio Ramos told reporters Friday that it would give mining companies until 2015 to export ores as part of reforms in the industry and start shipping out semi-processed or final products by 2016 to give added value to local minerals.

“We’re giving them [mining companies] up to five years to improve operations. Direct ore shipping will not be allowed after five years. The minerals [for export] should have undergone semi-processing, if not fully-processed at all,” he said in an interview.

The measure is contained in a draft memorandum order that the department will finalized for approval in meeting Tuesday.

Ramos said a number of mining companies had expressed concern about the additional investment needed to put up processing plants “but they understood that the measure is intended to enhance mining as a business and improve margins in the long run.”

“With mining, one of the things we will be doing as part of our commitment to President Gloria Arroyo for cutting red tape is to come up with mining reforms. It’s not only fast-tracking tenements but also enforcing compliance with requirements like compliance to safety, health,” said Ramos.

The Mines and Geosciences Bureau will also sign an order standardizing ore resources and reserves to create a uniform description.

“This is quite technical. But this should be addressed too for the benefit of the industry,” Ramos said.

The department last began streamlining the issuance of all environmental and mining permits to lessen the processing time to weeks.

Processing of mining permits will be reduced from 17 weeks to 7 weeks while that for certificate of non-compliance will be cut from 3 months to just one day. The department is also seeking to reduce the processing of environmental compliance certificate from three months to three weeks.

The department is creating a system that will monitor the issuance of permits down to the regional level using online technology.

working in a BPO is more productive than working in a two-bit NGO, doing nothing the whole time but begging for funding :lol:

Sure?:lol::lol:

Hope for industry


Monday, 01 March 2010 00:00
Manila Times

The case for the Philippines’ having had an early escape from the worst global economic slump in decades has become stronger.

Data released last week by the National Statistics Office showed that the industrial sector, which accounts for a third of the economy, continued on its recovery path. Although imports and factory output contracted in 2009, the final two months saw both indicators of industrial activity grow.

Among the leading sectors of the rebound was electronics, which is the country’s top export and contributes about 60 percent of the Philippines’ dollar receipts from its merchandise trade.

Had the growth occurred in the run up to the Christmas holidays, we may dismiss this as seasonal and not an indicator of a turnaround.

The up tick, however, started in November and was sustained in December, thus pointing to the likelihood of a recovery—albeit slow and fraught with risks.

The recent data also gave credence to earlier announcements by the Manila Economic and Cultural Office and the Subic Bay Metropolitan Authority of interest by Taiwanese investors in the electronic and other industries to set up shop in the Philippines.

Another industrial sub-sector that is showing positive numbers is the auto assembly industry. Early this month, the Chamber of Automotive Manufacturers of the Philippines Inc. reported that January sales came in stronger than expected.

The country not only assembles vehicles for the domestic market, but also ships overseas parts used by some of the world’s top
automakers.

Last week furniture exporters also said they have managed to cope with the weak external demand by turning to the domestic market.

What has kept them afloat was the recovering property sector. The business process outsourcing (BPO) industry has bucked the macroeconomic weakness, posting gains as companies in developed markets shipped non-core functions to places like the Philippines.

Add to the BPO sector the resilience of overseas Filipino worker (OFW) remittances. The low inflation and record low interest rates have kept property purchases from collapsing, as OFW families found few options to park their money in amid the economic uncertainty and the largely unmet demand for housing.

The recovery in the property sector has been matched by the rising activity in the construction and allied industries. This explains the surge in the prices of cement and other construction materials. While part of this is due to the post-typhoon reconstruction effort—particularly inventory replacement—the resumption of vertical property developments indicates that demand is returning.

More importantly, business confidence for the current quarter hit a two-year high, according to the latest poll by the Bangko
Sentral ng Pilipinas. Respondents said credit conditions as well as macroeconomic prospects looked more promising than the previous quarter.

To sustain the recovery of Philippine industry, the government has to keep inflation and interest rates at current lows. In this regard, we welcome the government’s decision to maintain the zero duties on imported cement and wheat.

Similarly the successful completion of its foreign commercial borrowing program would ease the pressure on domestic interest rates brought about by the record budget deficit expected for this year.

With the government’s funding gap forecast to widen the most in the first quarter, the $2.5 billion raised from January’s sovereign bond float and this month’s Samurai debt issuance affords the Philippines a cushion for the looming revenue shortfall.

What remains to be done is to address the current power supply shortfall and limit the negative effects of the El Niño.
For now, the National Economic and Development Authority sees no need to trim the official growth target despite the lingering dry spell.

In any case, the implementation of projects—especially those already in the pipeline and those geared towards the post-typhoon reconstruction efforts—should proceed without further delay, given the present election ban on new infrastructure projects.

Provided the conduct of the elections is not marred by widespread irregularities, we can expect the Philippine economy to chug along well into the first half of the year.

Zambales inks $ 50-B investments with Swiss Global Connect USA
Subic, Zambales, Philippines

http://swissglobalconnect.com/projects.html#

Fantasy Island
http://swissglobalconnect.com/images/fi.png
BRIEF DESCRIPTION:

An internationally known diverse Oceanside resort facility dynamically integrating Tourism, Culture and latest design Technology concepts on a world-class tourism complex that is environmentally friendly. Features of the Ocean Fantasia are: Hotel & Condominium; Water Park & Ocean Recreation Sports Centre; Ocean Pension Facilities & Underwater Photography; Restaurants offering Asian & International Cuisine; Port Facilities for Cruise ships & Yachts; Cable cars & Golf Course, in addition to other features still to be incorporated concomitant with the design.

Read more >

Palauig, Zambales, Philippines
Mt Tapulao
http://swissglobalconnect.com/images/mtp.png
BRIEF DESCRIPTION:

An integrated & sustainable eco-tourism complex combining Green & Blue Tourism in Mountain and Coastal Area harmonized with rural community living. Situated 7,200 ft. above sea level, contiguous 3,000 hectares of virgin mountain locality. Some of the features of the tourism development are: Hotels & Condominium, Shopping Centres & Restaurants, Recreation & Fitness Centres, Golf Course & Sports Centres, Trekking Centre & Camping Area, Mountain Recreation Parks with view deck & Mountain Resort.

Read more >

Masinloc, Zambales, Philippines
San Salvador
http://swissglobalconnect.com/images/ssvd.png
BRIEF DESCRIPTION:

A world class island tourism complex envisioned to be the next international tourism destination where you can experience one of a kind tourism facilities like, world class hotels & restaurants, exclusive Deluxe Villas where you can have a seeming experience living in the “Garden of Eden,” Water Sports & Yacht Clubs, and a Central Park carved out of a well planned green parks integrated with Shopping & Leisure Complex, Souvenir Shops, Zoo & Ethnic Village & Odeon Theatre equipped with the state of the art audio-visual equipments, Dolphinarium as well as Oceanarium, with transport service within the island resort powered by electric car to ensure an environmentally friendly atmosphere. Facilities and amenities of the island resort are comparable to the exclusive Amanpolo Resort in Palawan that will truly be a global eye-opener tourism destination.

Read more >

Zambales, Philippines
Other Projects
http://swissglobalconnect.com/images/np.jpg
Toll Ways:

• The consruction of toll ways from Iba to Tarlac to be inter connected with SCTEX to shorten the travel time of products, services, and tourists to the heart of the province.
Free Port:

• The construction of international / free port in Masinloc that will cater to the international shipment of goods and mineral ore aggregates and mines finish products, produce and furniture, and tourists.
Financial District:

• The development of a 620 hectare financial district / center in Cawag, Subic that involves the construction of hotels, convention centers, hospitals, churches, schools, housing projects, shopping centers, and resorts.
International Airport:

• The construction of an international airport in a strategic location within the province of Zambales for easy access of international tourists to the province.
Hospital:

. The construction of a Hospital in a strategic location within the province of Zambales for easy access of the residence of the province and for use by international tourists to the province.
Energy Project:

• The construction of two (2) 64-hectare beach front properties into a magnesium energy projects to augment the power supply requirements of the province.
Waste Management:

• The construction of dams and irrigation systems in support of the agricultural needs and human requirements of the province and the construction of waste management facilities.
Communication:

• The construction of radio stations, communication towers, cable television lines and cyber communication facilities.
Agricultural Needs:

• Development of agricultural tourism with high tech seedling centers and state of the art machineries and equipments and the development of animal husbandry and herbal plantation and the construction of food processing plants.
Steel Mills:

• Construction of steel mills in order to process the local mineral mines in which the finish products will be used to support the local requirements for the province’s development.

office address nila:

Address:
19528 Ventura Blvd. Ste., 468 Tarzana,
CA 91356 U.S.A.

No. 83 Bonny Serrano street.
Quezon City, 1111
Philippines

Telephone:
U.S. Tel: +1-818-261-5742
U.S. Fax: +1-818-261-5702

PH Tel: +63 - 2 - 727-9280
PH Tel: +63 - 2 - 440-3948
PH Fax: +63 - 2 - 721-9457

lol, malapit sa bahay.

kung maka-afford sila ng $50 billion, sana man lang sa Ayala Avenue sila nag-office. :lol:

It is always easy to say to curve or minimize corruption and poverty...but the real question is how? has anybody proposed a solution to it? NONE...if there is a presidentiable that is defining the solution...that would be Gibo and Gordon...thre rest...it's all "gaya nyo akong mahirap" or "naghihirap tayo dahil sa corruption" duh!! alam na namin yun....mga gunggong!!

If you will analyze the last paragraph..it is really not about corruption..but more of hysterical reactions to political unstability...over reaction...who cares about corruption if there is stability....look at china???...you think there's no corruption in the Communist regime? suntok sa buwan....pero..they rule by force..wherein nobody can complain...now...investors are pouring in...because of stability...not because there is clean governance!...

Yes, yes, and a big YES! LOOK AT CHINA. LOOK AT CHINA. LOOK AT CHINA. Yuck yung "tatapusin ang kahirapan" at "kung walang korupsyon walang mahirap". balony lahat yun... unfortunately maraming naniniwala.

LOOK AT CHINA. China is a world player now. An economic powerhouse!

Yes, yes, and a big YES! LOOK AT CHINA. LOOK AT CHINA. LOOK AT CHINA. Yuck yung "tatapusin ang kahirapan" at "kung walang korupsyon walang mahirap". balony lahat yun... unfortunately maraming naniniwala.

LOOK AT CHINA. China is a world player now. An economic powerhouse!


agree. Chinese officials would even bring money out of China but nobody complains. There are lavish feasts of every holidays in China for officials. Yet when GMA had $1000 lunch, everybody complains.

It is also the same with Vietnam. The thing is, corruption is always there. Its effect though is more expensive projects and transactions, but the projects and goals will always push through.

office address nila:

Address:
19528 Ventura Blvd. Ste., 468 Tarzana,
CA 91356 U.S.A.

No. 83 Bonny Serrano street.
Quezon City, 1111
Philippines

Telephone:
U.S. Tel: +1-818-261-5742
U.S. Fax: +1-818-261-5702

PH Tel: +63 - 2 - 727-9280
PH Tel: +63 - 2 - 440-3948
PH Fax: +63 - 2 - 721-9457

lol, malapit sa bahay.

kung maka-afford sila ng $50 billion, sana man lang sa Ayala Avenue sila nag-office. :lol:

I'm also doubtful of this company. Too good to be true. I hope totoo nga.

^^ LOL
i won't get my hopes to high on this one.. sa Pagcor City nga e.. medyo 50/50 na ako.. eto pa susunod.. hehe

^^ LOL
i won't get my hopes to high on this one.. sa Pagcor City nga e.. medyo 50/50 na ako.. eto pa susunod.. hehe

agree.....at walang casino....papano sila kikita dyan....:lol:

What next president must do to grow economy’


Philippine Daily Inquirer
First Posted 02:35:00 02/28/2010

Filed Under: Economic Indicators, Government

LEGAZPI CITY—A well-sustained economy, poverty reduction, fiscal issues and control of corruption are the national imperative concerns that the next president should look into in order to attain higher economic growth, a presidential economic adviser said.

Albay Gov. Joey Salceda, a top economic adviser of President Macapagal-Arroyo, said the strategies would be on two fronts—a 7-8 percent sustained economic growth rate followed by the reduction of poverty incidence by 14 percent while increasing the middle class from 23 percent to 45 percent by 2016.

“Our national goal, therefore, is the creation of a dynamic middle class that would be the sole foundation of a sustainable society that must be fair to the poor and to future generations,” Salceda said.

He said that to achieve and sustain higher growth, the next administration would have to execute the following: Secure build, operate and transfer projects to pole-vault public infrastructure as the key state strategic intervention for global competitiveness; encourage domestic investments; improve capital expenditures; and create regional industrial policies.

He said the national savings rate stands at 30 percent versus an investment rate of 15 percent, which is broken down into public, 4 percent, and private, 11 percent.

Such state of massive savings surplus has been experienced for the last six consecutive years, Salceda said.

“One proof is this, of the P500 billion in annual profits of the top 1,000 corporations in 2009, P350 billion was dividends. Thus, renewed business confidence should encourage domestic private reinvestments,” he said.

Moreover, the country needs little foreign capital and what it needs are foreign enterprise-based technology, access to markets and management expertise, he said, citing business process outsourcing, tourism, logistics and agribusiness as priority investment destinations. Mar S. Arguelles, Inquirer Southern Luzon

US group starts $50-billion project in Zambales

By Bebot Sison Jr. (The Philippine Star) Updated March 01, 2010 12:00 AM


IBA, Zambales, Philippines – US-based financing firm Swiss Global Connect USA has started the first phase of a massive $50-billion project package focusing on infrastructure, mining, tourism and property development in this province.

Based on the unsolicited proposal unanimously approved by the provincial board in July last year, the $50-billion fund will be earmarked for the economic development projects on tourism such as San Salvador Island, Masinloc resort complex, Mt. Tapulao resort, Palauig tourism complex and the Zambales Fantasy Island in Subic town.

I think this investment is true because it was reported in the Business Section of the Philippine Star and Manila Standard. I checked on it. Wala nga lang masyadong media hype unlike the BNP-Pagcor Project.


what the? $50 Billion???

$50 Billion? in USD? or in Pesos? If it's in USD, it's massive. I guess it's in tranche for _______ of years.

really? $50 BILLION?! WOAHHH!!

Yes, yes and yes again. The amount is a staggering 50 Billion (in US Dollars). Kahit ako I doubted it kasi it's too huge. But then maybe we should be thankful kasi that amount was invested in the Philippines. :cheers::cheers::cheers:

sana nga......totot.....para naman yung mag taga zambales ay umunlad lalo...

Yes, yes, and a big YES! LOOK AT CHINA. LOOK AT CHINA. LOOK AT CHINA. Yuck yung "tatapusin ang kahirapan" at "kung walang korupsyon walang mahirap". balony lahat yun... unfortunately maraming naniniwala.

LOOK AT CHINA. China is a world player now. An economic powerhouse!

But China is still a developing country. And there are still a huge population of those who are less fortunate in this country. In fact the poorest of The Mainland suffer more compared to The Philippines.

Corruption is a problem China but its not hyped by its local media. There are infrastructure projects that are faced with opposition either from its party members, government or its citizens.

You have to see Mainland China yourself to see its status. The only thing I can say it is like The Philippines where it has its achievements and flaws.

But China is still a developing country. And there are still a huge population of those who are less fortunate in this country. In fact the poorest of The Mainland suffer more compared to The Philippines.

Corruption is a problem China but its not hyped by its local media. There are infrastructure projects that are faced with opposition either from its party members, government or its citizens.

You have to see Mainland China yourself to see its status. The only thing I can say it is like The Philippines where it has its achievements and flaws.

I spent 2 weeks in Beijing and tour the mainland. It only widens the gap. Bonifacio Global City and Makati is no feat compared to Beijing and Shanghai. (in my observation and views)

You can never compare China's achievement to that of the Philippines. Indeed two countries may be alike in someways, but as far as economic status is concern, there is no comparison.

to cite a few disparity...China has hosted the grandest olympic games ever. Can we do the same thing? I do not see it coming in at least 10 years time. I am not pessimist but China inspite of corruption simply get things done. A "Bird's Nest" which defied the limit is a beacon to that. And a superspeed train that can match the fastest in the world.

Surely we can elaborate things that can simulate Philippines and China. But China in all its flaws, has managed to get the worlds' attention. It is now the world's largest factory.

agree. Chinese officials would even bring money out of China but nobody complains. There are lavish feasts of every holidays in China for officials. Yet when GMA had $1000 lunch, everybody complains.

It is also the same with Vietnam. The thing is, corruption is always there. Its effect though is more expensive projects and transactions, but the projects and goals will always push through.

GMA's feast is not just $1000 lunch. It's 20 gran a night!!

That's a lot of spending in the Philippines for 20 gran.

The Inquirer is abound with so many great ideas about how our economy can recover and lead in the 21st century. This article demonstrates that, i mean look at its content. It's almost as long as the articles it produces destroying our government and spreading negativity. :P



What next president must do to grow economy’


Philippine Daily Inquirer
First Posted 02:35:00 02/28/2010

Filed Under: Economic Indicators, Government

LEGAZPI CITY—A well-sustained economy, poverty reduction, fiscal issues and control of corruption are the national imperative concerns that the next president should look into in order to attain higher economic growth, a presidential economic adviser said.

Albay Gov. Joey Salceda, a top economic adviser of President Macapagal-Arroyo, said the strategies would be on two fronts—a 7-8 percent sustained economic growth rate followed by the reduction of poverty incidence by 14 percent while increasing the middle class from 23 percent to 45 percent by 2016.

“Our national goal, therefore, is the creation of a dynamic middle class that would be the sole foundation of a sustainable society that must be fair to the poor and to future generations,” Salceda said.

He said that to achieve and sustain higher growth, the next administration would have to execute the following: Secure build, operate and transfer projects to pole-vault public infrastructure as the key state strategic intervention for global competitiveness; encourage domestic investments; improve capital expenditures; and create regional industrial policies.

He said the national savings rate stands at 30 percent versus an investment rate of 15 percent, which is broken down into public, 4 percent, and private, 11 percent.

Such state of massive savings surplus has been experienced for the last six consecutive years, Salceda said.

“One proof is this, of the P500 billion in annual profits of the top 1,000 corporations in 2009, P350 billion was dividends. Thus, renewed business confidence should encourage domestic private reinvestments,” he said.

Moreover, the country needs little foreign capital and what it needs are foreign enterprise-based technology, access to markets and management expertise, he said, citing business process outsourcing, tourism, logistics and agribusiness as priority investment destinations. Mar S. Arguelles, Inquirer Southern Luzon

I think that is 70% true. Because there will be a northrail phase line that will connect Zambales. Besides, I don't think the $50 billion is a one time development. It may take 20-30 years. That amount may be just an optimistic estimate.

And it was on the business sections of reputable newspapers. Anybody can put up a makati address by renting virtual office space. The office address do not exactly show if a company is large or not.

I spent 2 weeks in Beijing and tour the mainland. It only widens the gap. Bonifacio Global City and Makati is no feat compared to Beijing and Shanghai. (in my observation and views)

You can never compare China's achievement to that of the Philippines. Indeed two countries may be alike in someways, but as far as economic status is concern, there is no comparison.

to cite a few disparity...China has hosted the grandest olympic games ever. Can we do the same thing? I do not see it coming in at least 10 years time. I am not pessimist but China inspite of corruption simply get things done. A "Bird's Nest" which defied the limit is a beacon to that. And a superspeed train that can match the fastest in the world.

Surely we can elaborate things that can simulate Philippines and China. But China in all its flaws, has managed to get the worlds' attention. It is now the world's largest factory.

I'm not saying China is better than The Philippines or vice versa. What I'm saying is, even if China has one of the largest economies in the world it is still a developing country.

Development in The Mainland is mostly in the eastern parts of the country. Go westward and life there is shit.

I'm not saying China is better than The Philippines or vice versa. What I'm saying is, even if China has one of the largest economies in the world it is still a developing country.

Development in The Mainland is mostly in the eastern parts of the country. Go westward and life there is shit.

True that. Even Xinjiang and Tibet have not tasted and felt economic developments recently but more aggression and oppression from the central government, i guess.

The CCP is focused in the eastern part of China like Shanghai, Beijing and now, Hainan Island.

True that. Even Xinjiang and Tibet have not tasted and felt economic developments recently but more aggression and oppression from the central government, i guess.

The CPP are focused in the eastern part of China like Sganghai, Beijing and now, Hainan Island.

Urumqi is the largest and economic centre of Xinjang is progressive that fact its one of the most isolated cities in the world. But you have social and ethnic issues there.

Urumqi is the largest and economic centre of Xinjang is progressive that fact its one of the most isolated cities in the world. But you have social and ethnic issues there.

But the Uighurs doesn't feel any of those developments because what the Chinese government wants is to get rid of their non-Chinese culture and language just like in Tibet.

I am not sure though if Lhasa is now connected with the railway system of China. I've heard previously of this project.

But the Uighurs doesn't feel any of those developments because what the Chinese government wants is to get rid of their non-Chinese culture and language just like in Tibet.

I am not sure though if Lhasa is now connected with the railway system of China. I've heard previously of this project.

Yes, they have the highest plateau railway line in the world.

Anyway, the future of The Philippines is now on the hand of the youth.

What the country need is equal distribution of careers and courses taking up for college.. From how it see it, the majority of youths are either taking up nursing just to get a good nursing career abroad or work in BPO companies.

There should be a significant percentage of youths in every field like in business, finance, law, logistics, agriculture, the arts/entertainment, public services, etc.

Yes, they have the highest plateau railway line in the world.

Anyway, the future of The Philippines is now on the hand of the youth.

What the country need is equal distribution of careers and courses taking up for college.. From how it see it, the majority of youths are either taking up nursing just to get a good nursing career abroad or work in BPO companies.

There should be a significant percentage of youths in every field like in business, finance, law, logistics, agriculture, the arts/entertainment, public services, etc.

But the problem is, the Philippines could only provide minimal salaries, that's why most of our professionals opted to work abroad.

NEDA approves P5.9-B Ondoy, Pepeng rehab project (http://positivenewsmedia.net/am2/publish/Business_19/NEDA_approves_P5_9-B_Ondoy_Pepeng_rehab_project.shtml)

MANILA, March 2 (PNA) -- The National Economic and Development Authority (NEDA) Investment Coordination Committee-Cabinet Committee (ICC-CC) has approved the multibillion-peso typhoon rehabilitation project.

The Post Ondoy and Pepeng Short-term Infrastructure Rehabilitation Project is estimated to cost P5.99 billion. Of which, P4.76 billion should be proposed for official development assistance (ODA) loan financing from the government of Japan.

The project aims to rehabilitate the damaged flood control facilities, roads and bridges in “Ondoy” and “Pepeng”-affected areas to at least their pre-typhoon condition.

"The project is seen to restore access to socioeconomic activities in the affected areas as well as contribute to the safety of their residents," NEDA said.

The project, spearheaded by the Department of Public Works and Highways (DPWH), is part of the overall government effort of reconstruction through the Special National Public Reconstruction Commission (SNPRC).

The project consists of two components. The first is the rehabilitation of flood control facilities which will repair and restore embankments, slope protection, bank protection, and other drainage facilities.

The other part of the project is the rehabilitation of national roads and bridges.

The NEDA said this will involve the immediate clearing of landslides and restoration of damaged bridge structures and approaches, among others.

According to NEDA, the sub-projects for the repair and restoration of affected infrastructure will have to be validated by the National Disaster Coordinating Council (NDCC) as damaged by typhoons Ondoy and Pepeng.

“Ondoy” and “Pepeng”-affected areas such as the National Capital Region, Cordillera Administrative Region, Ilocos region, Cagayan Valley, Central Luzon, Calabarzon, Mimaropa and Bicol region will be covered by the project.

In addition, NEDA said the local government participation is crucial to the planning and implementation of the project so that first-hand experiences and actual situations during the calamities are considered.

The rehabilitation of flood control which has already started last year using local funds is planned to be completed by June 2010. (PNA)

But the problem is, the Philippines could only provide minimal salaries, that's why most of our professionals opted to work abroad.

But in fairness, The Philippines is cheap. In HK for example, the salaries here are high (one of the highest in Asia) but almost everything here is expensive like food, rent, services, etc.

But in fairness, The Philippines is cheap. In HK for example, the salaries here are high (one of the highest in Asia) but almost everything here is expensive like food, rent, services, etc.

But still not sufficient.

So Filipinos just need proper budgeting of their salaries. :cheers:

I think that is 70% true. Because there will be a northrail phase line that will connect Zambales. Besides, I don't think the $50 billion is a one time development. It may take 20-30 years. That amount may be just an optimistic estimate.

And it was on the business sections of reputable newspapers. Anybody can put up a makati address by renting virtual office space. The office address do not exactly show if a company is large or not.

haha... talaga namang 70% true ha. ako, 65% sure lang. :nocrook:

Prob. reposts:

"A ‘feel-good’ only economy?"

http://pcij.org/stories/a-feel-good-economy/

"Faster growth under Arroyo: Reality or statistical illusion?"

http://pcij.org/stories/faster-growth-under-arroyo-reality-or-statistical-illusion/

"Unmasking the myth of ‘Arrovonomics’"

http://www.pcij.org/blog/?p=864

Other points to consider:

- chronic trade deficits

- around 70 pct of the economy based on consumer spending

- heavy reliance on overseas work, which in turn is dependent on prosperity in industrialized nations (in turn affected by the credit crunch, leading to problems like unemployment, which can last for several years)

Factor in peak oil problems, resource depletion, increasing prices of various goods (including food), the high price of food, petrol, electricity, medicine, and other needs....

But still not sufficient.

So Filipinos just need proper budgeting of their salaries. :cheers:

Correct. Filipino businesses, mega or micro businesses, should start with paying at least the minimum wage in their region. An expat in another forum wrote that the workers at a few places in that small town he was visiting where getting paid less than minimum for that type of work, in that region. Cheap labour is what I often hear from Filipinos. That's their reason for being business I think. What an excuse.

know why the Philippines is a poor country and still continues to be poor.. ??
it's cause the biggest percentage of the government budget goes to debt payments instead of going to social projects and infrastructures..

we will forever be a prisoner of debt payments..... tsk tsk tsk...

but the bright side is.. at least nakakapagbayad pa tayo.. with good Credit ratings medyo nababawasan pa kahit papaano ang interest.. haaayss....

http://www.focusweb.org/philippines/fop/jul2008/index%20Files/graph.png

know why the Philippines is a poor country and still continues to be poor.. ??
it's cause the biggest percentage of the government budget goes to debt payments instead of going to social projects and infrastructures..

we will forever be a prisoner of debt payments..... tsk tsk tsk...

but the bright side is.. at least nakakapagbayad pa tayo.. with good Credit ratings medyo nababawasan pa kahit papaano ang interest.. haaayss....

http://www.focusweb.org/philippines/fop/jul2008/index%20Files/graph.png


Tumpak ka dito. Lecheng debt servicing yan.

so importante talaga ang balanced budget para sa Bansa..

i would gladly vote for a president who could support Economy growth without the need to borrow money again and again... and who could post a budget surplus for the government. :(

I spent 2 weeks in Beijing and tour the mainland. It only widens the gap. Bonifacio Global City and Makati is no feat compared to Beijing and Shanghai. (in my observation and views)

You can never compare China's achievement to that of the Philippines. Indeed two countries may be alike in someways, but as far as economic status is concern, there is no comparison.

to cite a few disparity...China has hosted the grandest olympic games ever. Can we do the same thing? I do not see it coming in at least 10 years time. I am not pessimist but China inspite of corruption simply get things done. A "Bird's Nest" which defied the limit is a beacon to that. And a superspeed train that can match the fastest in the world.

Surely we can elaborate things that can simulate Philippines and China. But China in all its flaws, has managed to get the worlds' attention. It is now the world's largest factory.


As what they say, GOD created the world & the rest was made in China... :)

know why the Philippines is a poor country and still continues to be poor.. ??
it's cause the biggest percentage of the government budget goes to debt payments instead of going to social projects and infrastructures..

we will forever be a prisoner of debt payments..... tsk tsk tsk...

but the bright side is.. at least nakakapagbayad pa tayo.. with good Credit ratings medyo nababawasan pa kahit papaano ang interest.. haaayss....

http://www.focusweb.org/philippines/fop/jul2008/index%20Files/graph.png

That is not a good statement. Even high-income developed countries are much more badly in debt than the Philippines. Every country needs debt to grow. That is called leverage. But in the case of the Philippines, even if it has a large debt, it is supported by its GDP.

The US and the PIGS (Portugal, Ireland, Greece, Spain), + Dubai. Are doing a lot worse financially than the Philippines.

^^ i know what you mean.. "that we need debt to grow"... but not in this proportion..
almost half or 48% of the national budget goes to interest payments and debt payment..i may not call it "leveraged"... i think that proportion is already unhealthy and very unproductive for the country.... and the worst part is.. we can't do anything about it, coz we have to meet our debt obligations..

598 billion pesos is more than 10$ billion a year.. imagine that amount or even at least half of it going to more important and critical projects like infrastructure and social projects every year.. it "could be enough" to eradicate poverty.. (Just being idealistic here :D)

btw: High income economies are already in trouble because of ballooning debts.. i don't want the Philippines to go in that same direction... :(

for me, Philippines compared to Greece and other countries being in a less-worse situation isn't really comforting news..

but all this being said.. i still think the move to borrow money to fuel growth during critical situations like this recent recession is the right thing to do.. but hopefully, as much as possible.. i really want the country to minimize it's debts. if possible, debt servicing should be at 5-10% in proportion to the National budget.. :D

just an additional info:

2008 national budget -- P1.227-trillion
debt service ---- P598 billion
that is 48% of national budget

2009 national budget -- P1.415 trillion
debt service ---- P681.52 billion
that is 48% of national budget

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget

these debts are crippling the country's capacity for social development.. sob :(
sana matapos na tayo sa pagbabayad ng utang na ito.. kelan kaya... :(

I'm wondering where you guys are getting these numbers regarding Philippines debt servicing.

In 1986 it was around 34% debt servicing (34 cents to every 1 Peso of revenue). In 1996, it was around 18%, and read last year, it's down to 17%.

So what are you talking about here? Debt to GDP ratio is different, which is around or close to 50% of GDP, down from around 60% after people power.

^^ no, it's not Debt to GDP ratio.. (i believe I never mentioned GDP....)

I'm talking about Debt Servicing(or what we are annualy paying for interest and principal on a debt) to National budget ratio.
i think it's pretty clear..



take for instance.. the US Budget (2010)
http://upload.wikimedia.org/wikipedia/en/thumb/c/ce/Fy2010_spending_by_category.jpg/800px-Fy2010_spending_by_category.jpg

Considering that As of early 2010, US public debt as a percentage of GDP was at 63.6% but their Debt servicing is only 4.63% of the National budget..

though i can't say for sure that it is a good thing....coz they are only paying for the interest and nothing for the principal... i guess it's the last of their concern for this year---- while the Philippines biggest concern for the last decades budget has always been Debt payments... and little on Social Services and Infrastructure.. maybe that's one way of practicing Fiscal prudence.. but it does not favor social welfare..
may kasabihan nga namang.. "matutong bumaluktot kung maiksi ang kumot"... e pero kelan kaya lalaki ang kumot ng Pilipinas?? masaskit na ang likod ng Pinoy kakabaluktot.. i wish lumuwag nman ang kumot ng Pinas para makaunat unat naman tayo.... :(


anyway.. i've read this article which is very very interesting.. please do read this. I have been wondering for a long time why the US doesn't pay high interest rates on it's debts considering it's economic volatility.. while developing nations(like the Philippines) always have to offer bonds with higher interest rates if their credit ratings are low mainly because of poor economic performance.. now this article kinda explains why..
the answer is.. if nobody wants to lend them money, the federal reserve just keep on printing tons of money for them!!!
The US has been a very very very very bad model when it comes to debts.. let's not imitate it.. :D
http://theeconomiccollapseblog.com/archives/ponzi-scheme-the-federal-reserve-bought-approximately-80-percent-of-u-s-treasury-securities-issued-in-2009

so importante talaga ang balanced budget para sa Bansa..

i would gladly vote for a president who could support Economy growth without the need to borrow money again and again... and who could post a budget surplus for the government. :(


Then go for Manny VIllar!:cheers:

But China is still a developing country. And there are still a huge population of those who are less fortunate in this country. In fact the poorest of The Mainland suffer more compared to The Philippines.

Corruption is a problem China but its not hyped by its local media. There are infrastructure projects that are faced with opposition either from its party members, government or its citizens.

You have to see Mainland China yourself to see its status. The only thing I can say it is like The Philippines where it has its achievements and flaws.

China is portraying itself as developing country whereas it is now considered as the third largest economy in terms of GDP.

know why the Philippines is a poor country and still continues to be poor.. ??
it's cause the biggest percentage of the government budget goes to debt payments instead of going to social projects and infrastructures..

we will forever be a prisoner of debt payments..... tsk tsk tsk...

but the bright side is.. at least nakakapagbayad pa tayo.. with good Credit ratings medyo nababawasan pa kahit papaano ang interest.. haaayss....

http://www.focusweb.org/philippines/fop/jul2008/index%20Files/graph.png

Tumpak ka dito. Lecheng debt servicing yan.

so importante talaga ang balanced budget para sa Bansa..

i would gladly vote for a president who could support Economy growth without the need to borrow money again and again... and who could post a budget surplus for the government. :(

Definitely agree.:cheers::cheers:

Then go for Manny VIllar!:cheers:

haha sorry i've decided who to vote for already... and it's no him.
and this is not the halalan thread.. LOL :D

haha sorry i've decided who to vote for already... and it's no him.
and this is not the halalan thread.. LOL :D

Nagbabakasakali lang. baka makalusot...:lol::lol:

After securing and completing major government projects, stabilizing economic growth, and increase foreign investors, I think we can easily minimize the debt of the country.

^^ i do hope that will happen :D

China is portraying itself as developing country whereas it is now considered as the third largest economy in terms of GDP.

But it is still a developing country. In fact its still a lower middle income country in the same rate as The Philippines or Thailand.

China's economy may be larger than say Australia, Canada or even Finland but the later countries mentioned are more advanced in development plus have a higher quality of life.

Economic progress has not reached the other parts of The Mainland.

After securing and completing major government projects, stabilizing economic growth, and increase foreign investors, I think we can easily minimize the debt of the country.

you don't really have to worry much about debt, as the Philippines has even more gold reserves in the vault, that can pay all this debt. Aside from that there are even lots of untapped mineral deposits that can easily pay this.

the philippines is like a child who had this big real estate mortage, but inherited a tract of land from his parents.

just an additional info:

2008 national budget -- P1.227-trillion
debt service ---- P598 billion
that is 48% of national budget

2009 national budget -- P1.415 trillion
debt service ---- P681.52 billion
that is 48% of national budget

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget

these debts are crippling the country's capacity for social development.. sob :(
sana matapos na tayo sa pagbabayad ng utang na ito.. kelan kaya... :(Where did you get your stats? I'm just wondering...

^^ no, it's not Debt to GDP ratio.. (i believe I never mentioned GDP....)

I'm talking about Debt Servicing(or what we are annualy paying for interest and principal on a debt) to National budget ratio.
i think it's pretty clear..

Considering that As of early 2010, US public debt as a percentage of GDP was at 63.6% but their Debt servicing is only 4.63% of the National budget..

though i can't say for sure that it is a good thing....coz they are only paying for the interest and nothing for the principal... i guess it's the last of their concern for this year---- while the Philippines biggest concern for the last decades budget has always been Debt payments... and little on Social Services and Infrastructure.. maybe that's one way of practicing Fiscal prudence.. but it does not favor social welfare..
may kasabihan nga namang.. "matutong bumaluktot kung maiksi ang kumot"... e pero kelan kaya lalaki ang kumot ng Pilipinas?? masaskit na ang likod ng Pinoy kakabaluktot.. i wish lumuwag nman ang kumot ng Pinas para makaunat unat naman tayo.... :(

anyway.. i've read this article which is very very interesting.. please do read this. I have been wondering for a long time why the US doesn't pay high interest rates on it's debts considering it's economic volatility.. while developing nations(like the Philippines) always have to offer bonds with higher interest rates if their credit ratings are low mainly because of poor economic performance.. now this article kinda explains why..
the answer is.. if nobody wants to lend them money, the federal reserve just keep on printing tons of money for them!!!
The US has been a very very very very bad model when it comes to debts.. let's not imitate it.. :D
http://theeconomiccollapseblog.com/archives/ponzi-scheme-the-federal-reserve-bought-approximately-80-percent-of-u-s-treasury-securities-issued-in-2009Here's an explanation of the country's debt by Bulatlat and Walden Bello.

I'm starting to like Bello, he seems fairly rational despite being too critical.
http://www.focusweb.org/philippines/content/view/92/6/
http://www.bulatlat.com/news/5-45/5-45-budget.htm

But it is still a developing country. In fact its still a lower middle income country in the same rate as The Philippines or Thailand.

China's economy may be larger than say Australia, Canada or even Finland but the later countries mentioned are more advanced in development plus have a higher quality of life.

Economic progress has not reached the other parts of The Mainland.That's is true, but China doesn't only grow fast economically, they also eliminated half their poverty from 60% to just 10% (http://en.wikipedia.org/wiki/Poverty_in_China) in just 30 years while we cannot even reduce 50% of our poverty rate. Imagine the multiple effects that would bring it to the economy of China. It means a larger market.

^^It would be very very slow for us to eliminate poverty in our country due to the following:

- limited job opportunities

- most of the people who belongs to the marginal group are lazy, too dependent to the government and the ones who reproduce like rabbit. I emphasize "most", because there are those who really tried to move up, but just can't do it due to limited resources and education.

- our government is just too pro-poor to the point that it tends to tolerate and spoiled the poor populace. I don't think, the poor are paying taxes. Our government is giving the idea that being poor is OK.

- the Catholic church continuous advocacy on pro-creation. Too much population with less earning is just not practical for the biblical mandate to go and multiply. Multiply what? Poverty? Pain? Hunger?

Business group rejects imposition of new taxes by the upcoming administration (http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=261890)

MANILA, March 2 (PNA) – The multisectoral Fair Trade Alliance (FairTrade) is challenging the upcoming administration to look for various options in generating revenues for the government other than imposing new taxes.

FairTrade has issued this statement in response to the earlier prognosis of Finance Secretary Margarito Teves that he saw a remote probability for the next administration not to raise taxes.

Teves also said that the Association of South East Asian Nations (ASEAN) trade pacts would cost the government P9 billion this year. These new measures include the country’s commitments to the ASEAN of removing tariffs on more products traded within the region and the free trade pacts being implementaed with China, Australia and New Zealand.

Other revenue-eroding factors are related to the Japan-Philippines Economic Partnership Agreement (JPEPA).

The FairTrade said that the revenue losses were rooted in the industrial crisis.

The declining tax intake of the government was due to the shrinking industrial sector, the most taxable among the different economic sectors (services, agriculture and overseas employment), it said.

As reflected in the NSO statistics, the formally registered enterprises have been going down since the mid-1990s, the statement said.

What has been expanding instead was the informal sector, but being informal and unregistered, enterprises in this sector do not pay taxes, FairTrade said.

“We at FairTrade humbly suggests to our presidential aspirants and eventually to the next administration to put our economic house in order and institute bold reforms, including the implementation of non-tax revenue measures,” the statement said:

First in the reforms should should be a no-nonsense drive against smuggling. Big-time smugglers and their cohorts in government should be hauled to prison.

By stamping out smuggling, the statement said, the government would close the annual fiscal gap and avoid the divisive and unfair imposition of new taxes.

This way, the government will also help save domestic industries being injured by cheap and untaxed imports and, therefore, help save local jobs.

As a result, by having a more solid fiscal position and being able to save industries, the government shall be in a greater position to raise tax collection and create more jobs, it said.

The second reform should deal with intensification of the drive against tax evaders and the fast-tracking of resolutions of all big tax cases pending in courts; and

Third, the upward re-calibration of tariffs for all industrial and agricultural goods based on the Philippines’ maximum WTO bindings, except for raw materials used by local industry, to level the business field.(PNA)

That's is true, but China doesn't only grow fast economically, they also eliminated half their poverty from 60% to just 10% (http://en.wikipedia.org/wiki/Poverty_in_China) in just 30 years Imagine the multiple effects that would bring it to the economy of China. It means a larger market.

Yes, China is a developing country and classified also as Lower Middle Income economy but I'm impressed with how they lifted the millions of poor Chinese out of poverty. Philippines' best target is 20% poverty level is still beyond reach. During Ramos, I think it went down to 24% but now back to 26%. Thailand's poverty level is 15%.

^^It would be very very slow for us to eliminate poverty in our country due to the following:

- limited job opportunities

- the Catholic church continuous advocacy on pro-creation. Too much population with less earning is just not practical for the biblical mandate to go and multiply. Multiply what? Poverty? Pain? Hunger?

I also blame the Church for their pro-poor, pro-population growth stand but leave the responsibility entirely to the government.

Manila's main tax agency exceeds February target
By Karen Lema
http://www.iii.co.uk/news/?type=afxnews&articleid=7773552&action=article

MANILA, March 3 (Reuters) - The Philippines expects to have exceeded its overall tax revenue goal for February after overshooting its income and consumption tax target by 8 percent, the head of the tax bureau said on Wednesday.
The Philippines posted a record budget deficit of 298.5 billion pesos, or 3.9 percent of GDP, last year and some analysts say it may end this year with another record shortfall due to weak tax collection and higher spending on pump priming.

The Bureau of Internal Revenue, which collects around two-thirds of state revenue, had collected 44.9 billion pesos ($975 million) so far in income and consumption tax for February, Joel Tan-Torres told reporters.
The revenue, which does not include withholding tax on interest on government debt issues, makes up 93 percent of the total February target of 48.252 billion pesos.
"We are confident of exceeding the overall collection goal for February," Tan-Torres said.
The bureau is estimated to have exceeded its January collection goal of 56 billion pesos by 10 percent, according to Treasury documents. The government has yet to announce official January fiscal data.
On Tuesday, Finance Undersecretary Gil Beltran told Reuters the government was likely to outperform its budget deficit target for January to March.
The government is aiming for a budget deficit of 110.94 billion pesos in the first three months to keep the full-year gap below 293 billion pesos, or 3.5 percent of GDP.

($1=46.035 pesos)

Arroyo defends economic record

Agence France-Presse
First Posted 15:51:00 03/03/2010

MANILA-- Outgoing Philippine President Gloria Arroyo on Wednesday defended her economic achievements during nine years in power, amid criticism that poverty levels had not improved and her government was corrupt.

Arroyo, who is constitutionally mandated to step down on June 30, insisted she had transformed the country once described as one of the region's weakest to one that is now steadily attracting foreign investors.

"The future for the Philippine economy is indeed much brighter now than it was in 2001," Arroyo told businessmen in a briefing attended by her economic managers.

"Our economy has doubled over the last nine years, and we are back on the radar screen of international investors."

However, she acknowledged her successor faced many challenges on the economic front.
"Capitalizing on our potential will only be possible if we continue to have leadership willing to make the tough and often unpopular decisions that are required to break the hold of entrenched special interest and keep our economy moving," she said.

The Philippines goes to the polls in May to choose a new president, but Arroyo's chosen successor, former defense chief Gilberto Teodoro, has been doing extremely poorly in surveys.

In defending her government's economic record, Arroyo said inflation in the last quarter of 2009 had dropped to 2.9 percent while external debt as a percentage of gross domestic products had been cut in half to 34 percent.

She said the unemployment rate was down from double digits in 2001 to 7.5 percent currently, and more than eight million jobs, mostly in the agriculture sector, had been created.

"Those are real numbers. They are making a positive impact on the lives of the real people," she said.

Arroyo, who was swept into power by a 2001 popular revolt that ousted graft tainted Joseph Estrada, has been largely credited by analysts for bringing economic stability to the country.

However, the World Bank said last month that average economic growth of almost five percent in the Philippines over the past decade had not made a serious dent in tackling the enormous poverty plaguing the country.

Her rule has also been marked by three coup attempts, claims she sought to rig the 2004 presidential election, as well as allegations of massive corruption involving members of her family and government officials.

^^ no, it's not Debt to GDP ratio.. (i believe I never mentioned GDP....)

I'm talking about Debt Servicing(or what we are annualy paying for interest and principal on a debt) to National budget ratio.
i think it's pretty clear..



http://theeconomiccollapseblog.com/archives/ponzi-scheme-the-federal-reserve-bought-approximately-80-percent-of-u-s-treasury-securities-issued-in-2009

Wino:

I'm referring to these numbers, they don't jive:
-------------------------------------------------------------
2008 national budget -- P1.227-trillion
debt service ---- P598 billion
that is 48% of national budget ???

[/B]2009 national budget -- P1.415 trillion
debt service ---- P681.52 billion
that is 48% of national budget ???

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget
This is accurate.

Even in the worst of times, after people power, 35 cents to a 1 Peso of revenue was the debt servicing ratio. So where do you get your 48% for 2008/2009. Between 2008 to 2010 your numbers show a drop of 30 points. That doesn't compute. You are confusing two sets of numbers above. It should be:

Phil debt to GDP is 48% / debt servicing is 17%. Got me? One cannot make proper conclusions unless they are using the numbers correctly.

Thailand's poverty level is 15%.



May I know where did you get this data?

This is what I found http://www.indexmundi.com/g/r.aspx?c=th&v=69

Yes, China is a developing country and classified also as Lower Middle Income economy but I'm impressed with how they lifted the millions of poor Chinese out of poverty. Philippines' best target is 20% poverty level is still beyond reach. During Ramos, I think it went down to 24% but now back to 26%. Thailand's poverty level is 15%. Yes I am impressed as well. In fact, most of our neighbors did remarkably well in eradicating poverty. We are the only country in the Far East doing quite slow to modest gains against poverty.

But I have to make our concepts and definitions clear.

First, be very careful of comparing poverty stats because every country has their own definition of poverty. There is no single definition that every country has adopted, and even the $1 to $2 definition of the World Bank is still problematic.

Second, even in our own country, the definition of poverty has changed quite a number of times. Therefore, it will be difficult comparing poverty from the previous years.

Third, there are groups used in measuring poverty: 1) poverty per individual/population and 2) poverty per household/family. What you described was poverty per family which stands at 26.9%.

source: http://www.nscb.gov.ph/

I'm referring to these numbers, they don't jive:
-------------------------------------------------------------
2008 national budget -- P1.227-trillion
debt service ---- P598 billion
that is 48% of national budget ???

[/B]2009 national budget -- P1.415 trillion
debt service ---- P681.52 billion
that is 48% of national budget ???

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget

Even in the worst of times, after people power, 35 cents to a 1 Peso of revenue was the debt servicing ratio. So where do you get your 48% for 2008/2009. Between 2008 to 2010 your numbers show a drop of 30 points. That doesn't compute. You are confusing two sets of numbers above. It should be:

Phil debt to GDP is 48% / debt servicing is 17%. Got me? One cannot make proper conclusions unless they are using the numbers correctly.That's right. Be very very careful in quoting statistics because it might confuse the forumers and might cause disagreements.

These should be the sources
http://www.treasury.gov.ph/statdata/yearly/yr_cor_revenues.pdf
http://www.treasury.gov.ph/statdata/yearly/yr_cor_debtservice.pdf
http://www.dbm.gov.ph/index.php?id=28&pid=8

Where did you get your stats? I'm just wondering...

Here's an explanation of the country's debt by Bulatlat and Walden Bello.

I'm starting to like Bello, he seems fairly rational despite being too critical.
http://www.focusweb.org/philippines/content/view/92/6/


this a nice read. thanks for the link. :D

though i did not read the bulatlat link.. i don't like that publication.. i find it extreme and sensational in reporting.

^^Well, to be fair, you also have to read those so you would know both sides of the story. Besides, it will pique your curiosity and would force you to research more. :D

Wino:

I'm referring to these numbers, they don't jive:
-------------------------------------------------------------
2008 national budget -- P1.227-trillion
debt service ---- P598 billion
that is 48% of national budget ???

[/B]2009 national budget -- P1.415 trillion
debt service ---- P681.52 billion
that is 48% of national budget ???

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget
This is accurate.

Even in the worst of times, after people power, 35 cents to a 1 Peso of revenue was the debt servicing ratio. So where do you get your 48% for 2008/2009. Between 2008 to 2010 your numbers show a drop of 30 points. That doesn't compute. You are confusing two sets of numbers above. It should be:

Phil debt to GDP is 48% / debt servicing is 17%. Got me? One cannot make proper conclusions unless they are using the numbers correctly.

oh, but this is correct!! and i am using the number correctly!
that is really the amount paid for debt interests and principal.. for the year 2008 and 2009!
debts during the People power has almost tripled today, that is why we are paying higher!
sorry that i forgot to post the links for my data.. but trust me, i did not confuse it to NATIONAL debt.. if I did, it will be in dollars.. and i'm not that simpleton. :D

there really is no point comparing poverty. Because poverty is relative. Even the less than $1 or less than $2 set by World bank is not a good basis.

If you live in a farm say as a caretaker, and the owner of the farm just gives you 40 pesos per day as allowance, but you and your family can eat any farm produce, and your shelter is provided. You are not considered living in poverty.

Those people living around the big markets like divisoria, are not living in poverty. Because essentially food is plenty and cheap around big markets.
----

^^ @sandwindstars

Oh, OK ... i checked this site given by leraine
http://www.treasury.gov.ph/statdata/yearly/yr_cor_debtservice.pdf
http://www.treasury.gov.ph/statdata/yearly/yr_cor_revenues.pdf
it's a bit different with my figures.. but not that much.. here is my computations, the changes are in bold fonts, AND IT ACTUALLY WENT HIGHER... :D

2008 national budget -- P1.227-trillion
debt service ---- P598 billion -----P 612,682
that is 48% of national budget ------ 49%

[/B]2009 national budget -- P1.415 trillion ---P 1,123 trillion
debt service ---- P681.52 billion --- 622,287
that is 48% of national budget -------- 55%

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget

^^ Oh, OK ... i checked this site given by leraine
http://www.treasury.gov.ph/statdata/yearly/yr_cor_debtservice.pdf
it's a bit different with my figures.. but not that much.. here is my computations
the changes are in bold fonts :D

2008 national budget -- P1.227-trillion
debt service ---- P598 billion -----P 612,682
that is 48% of national budget ------ 49%

[/B]2009 national budget -- P1.415 trillion
debt service ---- P681.52 billion --- 622,287
that is 48% of national budget -------- 43.9%

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget

our debt is in dollars. With the strengthening peso, that debt will get smaller.

It is expected that the dollar will hit 43 pesos.

^^ that is why the government is more keen to support a STRONGER PESO. :D

btw.. i edited my post.. your quote of my post is different.. LOL
i'm just saying.. :D

our debt is in dollars. With the strengthening peso, that debt will get smaller.

It is expected that the dollar will hit 43 pesos.

I am not so sure about that - just before 2009, that figure was already forecast by HSBC and other banks, 2009 came and went but the figures wasn't achieved.

I am not so sure about that - just before 2009, that figure was already forecast by HSBC and other banks, 2009 came and went but the figures wasn't achieved.

because the BSP is preventing it. The peso can even hit below 39,its just that a lot of exporters and OFW's are complaining.

Not to mention the BPO's

A strong peso may be more negative. We are still doing well despite our debt. So there is no reason to allow the peso to appreciate.

because the BSP is preventing it. The peso can even hit below 39,its just that a lot of exporters and OFW's are complaining.

Not to mention the BPO's

A strong peso may be more negative. We are still doing well despite our debt. So there is no reason to allow the peso to appreciate.

I've read just 2 days ago that BSP will not cave in to exporter's demands re: Peso appreciation.

bottom line....gumanda ang economiya ng pinas sa panahon ni gloria....kahit sabihin pa nila na 100% ng pinoy ay poor....:lol: dyos ko po.....sana wag naman manalo ang wlang alam na si noynoy......myanmar lang hindi pa alam kung san ito at ano ang halaga nito.....

oh but it will go stronger... the US dollar is destined to be doomed.
the US has been on the money printing frenzy for the past years to plug their deficits, mainly b'coz nobody wants to buy their Bonds due to very low interest rates.... and effect of that is a cheaper US dollar.
expect the US dollar to really weaken the next few years. :D

the BSP will eventually allow the market to dictate the value and let the Peso rise freely vs. Dollar value.. they actually lose money whenever they intervene.. and i don't think they "will" or they "can't" do it forever if not as often as exporters want them to.

oh but it will go stronger... the US dollar is destined to be doomed.
the US has been on the money printing frenzy for the past years to plug their deficits, mainly b'coz nobody wants to buy their Bonds due to very low interest rates.... and effect of that is a cheaper US dollar.
expect the US dollar to really weaken the next few years. :D

bet. USD and Euro, the Euro apparently was losing its value against the greenback. It was on CNN today.

there really is no point comparing poverty. Because poverty is relative. Even the less than $1 or less than $2 set by World bank is not a good basis.

If you live in a farm say as a caretaker, and the owner of the farm just gives you 40 pesos per day as allowance, but you and your family can eat any farm produce, and your shelter is provided. You are not considered living in poverty.

Those people living around the big markets like divisoria, are not living in poverty. Because essentially food is plenty and cheap around big markets.
----

I;d have to agree with this. They categorised Batanes as one of the poorest provinces in the country, but people there are not starving, they got houses, they got farms. I dint see any beggars in the streets nor I saw anyone homeless.

bet. USD and Euro, the Euro apparently was losing its value against the greenback. It was on CNN today.

oh yeah.. the Euro too!! doomed! doomed! i say doomed!! LOL :D

but the euro will not fall as much as the dollar.. coz the Euro has better banking regulations than the US.

it is still expected for the US to have a big budget deficit(this is the most crucial indicator for the US right now) this year and next year and the coming years.. and that will mean either
1. The Federal Reserve prints more money to plug the deficit
2. To raise interest rates on the US Bond market to attract buyers (which is likely not to happen as higher interest rates will have a ripple effect and ultimately destroy the economy)

as usual, I expect them to do the first option.. PRINT MORE MONEY!! good luck on the value of the dollar in the next few years! :P
so expect the peso to get stronger in the coming years. :D

The PIGS of Europe are really looking bad financially. They have large debts, but not enough production. These are Portugal, Ireland,Greece,Spain.

there really is no point comparing poverty. Because poverty is relative. Even the less than $1 or less than $2 set by World bank is not a good basis.

If you live in a farm say as a caretaker, and the owner of the farm just gives you 40 pesos per day as allowance, but you and your family can eat any farm produce, and your shelter is provided. You are not considered living in poverty.

Those people living around the big markets like divisoria, are not living in poverty. Because essentially food is plenty and cheap around big markets.
----

Thus the terms cost of living and standards of living.

And it's up to a person if he is content to eat 3 square meals a day.

9 Arroyo years post 4.4% average growth (http://businessmirror.com.ph/index.php?option=com_content&view=article&id=22559:9-arroyo-years-post-44-average-growth&catid=23:topnews&Itemid=58)
Business Mirror (http://businessmirror.com.ph/index.php?option=com_content&view=article&id=22559:9-arroyo-years-post-44-average-growth&catid=23:topnews&Itemid=58)
Written by Cai U. Ordinario / Reporter
Thursday, 04 March 2010 21:07

EVEN after 36 months of uninterrupted economic growth, the Arroyo administration was only able to post an average gross domestic product (GDP) growth of 4.4 percent after almost a decade of holding the reins of government, according to data presented by the National Economic and Development Authority (Neda) on Wednesday.

At the year-end economic managers’ briefing—which was also the last economic managers’ briefing for the current administration—Neda Deputy Director General for National Development Margarita Songco said the average growth of the past nine years was above the average historical growth of the country.

“From 2001 to 2009, the Philippine economy grew by an average of 4.4 percent driven primarily by the growth in the services sector. Deregulation in air transport and communications, massive infrastructure programs, reforms in the financial sector and the strong inflow of OFW [overseas Filipino worker] remittances have all contributed to the surge in services,” Songco said in her presentation.

The Neda said that historically, the Philippine economy posted a growth of around 2.5 percent to 3.5 percent. However, the Asian Development Bank (ADB) said that in order to significantly cut poverty, the country must sustain a growth of around 7 percent.

Assistant Director Myrna Asuncion of the Neda National Planning and Policy Staff (NPPS) explained that the growth was higher than the historical average due to the growth in 2007, which made up for the lackluster performance of the economy in the first three years of President Arroyo.

In 2001, 2002 and 2003, GDP grew by 1.8 percent, 4.4 percent and 4.9 percent, respectively. In 2004 the country began to post higher GDP growth at 6.4 percent, followed by 5 percent in 2005, 5.3 percent in 2006 and peaking at 7.1 percent in 2007.

GDP only began to slide in 2008 at the start of the global economic crisis, which allowed the economy to post growth of only 3.8 percent, further sliding to 0.9 percent in 2009, at the height of the crisis and the twin typhoons Ondoy and Pepeng.

Slight gain in poverty reduction

IN terms of poverty, Asuncion said that while poverty incidence has reached 33 percent based on the 2006 data, the overall condition of the poor has improved through the years.

Nonetheless, she admitted that growth in the past nine years has been insufficient to significantly cut poverty. “Even if the average condition of the poor improved, the growth is not sufficient,” Asuncion said.

Meanwhile, Songco said the country’s positive performance should be taken as an opportunity to bring the economy to a higher level of growth in 2010 and beyond.

She said the economy was able to establish a clear framework for economic stability; foster price stability and financial strength; create opportunities for private investment; accelerate public investments in infrastructure; and address food and energy security and environmental sustainability.

Songco added that the government is committed to accelerate public investments in infrastructure. The World Bank earlier said the Philippines needs to spend at least 5 percent of its GDP annually on infrastructure, which is clearly defined in the government’s Comprehensive and Integrated Infrastructure Program (CIIP).

“The average spending per year under the CIIP is more than that 5-percent threshold. The total investment requirement of the updated CIIP [2009 –2013 and Beyond] amounts to P3.326 trillion. Available estimates indicate that the annual CIIP investment from 2009 to 2013 is at an average of 6.4 percent of GDP,” Songco said.

However, she said the government must address bottlenecks to competitiveness, especially corruption, inadequate infrastructure and inefficiencies in the bureaucracy.

Songco cited the need to improve governance, ensure greater transparency and policy consistency, and lessen political discord.

“We are aware that world recovery remains fragile. This puts another constraint on our ability to help put out our fiscal ills. Crude-oil prices have been rising in the world market, ever since green shoots began appearing last year. That, in turn, may put some pressure on consumer prices, abetted by utility rate hikes,” she said.

I;d have to agree with this. They categorised Batanes as one of the poorest provinces in the country, but people there are not starving, they got houses, they got farms. I dint see any beggars in the streets nor I saw anyone homeless.

I totally agree with you. Plus, they have one of the highest literacy rates in the country.

^^^^
mahal pala ng isang nuke plant.

This is a good investment. Initial cost lang naman ang malaki then after than downhill na ang gastos. Laki pa ng napro-produce na kuryente. Environment friendly pa wag lang sasabog :lol:

dp

PGMA sees stronger economy in 2010 (http://www.pna.gov.ph/index.php?idn=0&nid=1&rid=262161)

MANILA, March 3 (PNA) -- President Gloria Macapagal-Arroyo said on Wednesday the country’s economic growth will accelerate this year even as she completes all the major projects started during her nine-year term.

“I will leave the nation in better shape. I am confident of the future,” she told the business community and members of the diplomatic corps who attended this morning’s annual Philippine economic briefing at the Dusit Thani Hotel in Makati organized by the Investor Relations Office (IRO), which handles the concerns of different stakeholders of the country’s economic team.

Government sources, particularly the Bangko Sentral ng Pilipinas, also made the same observations that the economy, which grew by 0.9 percent last year, is expected to grow faster at between 2.6 percent and 3.6 percent while inflation is expected to range between 3.5 percent and 5.5 percent.

The President said that when she assumed the presidency nine years ago, inflation stood at 7.5 percent; the balance of payments (BOP) was at $ 2.02 billion; the ratio of external debt to gross domestic product (GDP) or how much of the country’s total goods and services annually go into servicing the debt, 72 percent; and unemployment at 20 percent.

Today, inflation is stable at 2.9 percent; the BOP stands at $ 5 billion; external debt-to-GDP ratio is down to 34 percent; and unemployment is single-digit at seven percent.

The President also noted the foreign exchange rate was strengthened by 19 percent during her administration. In contrast, the peso started out in 1970 at P3.94 to the dollar under the Marcos administration and slid further to P22.05 in 1986. This was also true for the Aquino administration, which saw the peso’s value drop by 14 percent; the Ramos administration, 14 percent, and the Estrada administration, 39 percent.

Because it was economically sound, the President said the Philippines was one of only four countries in Asia which escaped recession brought about by the 2008 global financial crisis.

“We had to make tough and unpopular decisions to keep the economy ahead,” the President said, including the passage of the 12 percent expanded value added tax, which generated P80 billion in its first full year of implementation in 2007 and passage of so-called sin taxes for cigarettes and liquor.

The President also deferred plans toward balancing the budget this year as she saw the need for government to pump-prime the economy last year with P330 billion to create jobs and sustain economic and business activity in the face of the global economic crisis.

As a result, the government posted a budget deficit of P298.5 billion last year, or the equivalent of 3.9 percent of GDP.

In her speech, the President congratulated Finance Secretary Margarito Teves and Bureau of Internal Revenue Commissioner Joel Tan-Torres for exceeding target collections since Tan-Torres was appointed in December 2009.

The President also thanked former Agriculture Secretary Arthur Yap for his efforts in generating 1.8 million jobs, which is higher, she said, than the targeted one million jobs. (PNA)

^^^^
mahal pala ng isang nuke plant.



This is a good investment. Initial cost lang naman ang malaki then after than downhill na ang gastos. Laki pa ng napro-produce na kuryente. Environment friendly pa wag lang sasabog :lol:



A nuclear power plant is not really environmentally friendly, the radioactive waste it produced yearly is one of the biggest problem of countries with nuclear power plants. And there are other problems that should be taken care of first before having a nuclear power plant. (Safety and security) in handling the radioactive materials, location of the plant and MONEY. :D

PGMA sees stronger economy in 2010 (http://www.pna.gov.ph/index.php?idn=0&nid=1&rid=262161)

MANILA, March 3 (PNA) -- President Gloria Macapagal-Arroyo said on Wednesday the country’s economic growth will accelerate this year even as she completes all the major projects started during her nine-year term.

“I will leave the nation in better shape. I am confident of the future,” she told the business community and members of the diplomatic corps who attended this morning’s annual Philippine economic briefing at the Dusit Thani Hotel in Makati organized by the Investor Relations Office (IRO), which handles the concerns of different stakeholders of the country’s economic team.

Government sources, particularly the Bangko Sentral ng Pilipinas, also made the same observations that the economy, which grew by 0.9 percent last year, is expected to grow faster at between 2.6 percent and 3.6 percent while inflation is expected to range between 3.5 percent and 5.5 percent.

The President said that when she assumed the presidency nine years ago, inflation stood at 7.5 percent; the balance of payments (BOP) was at $ 2.02 billion; the ratio of external debt to gross domestic product (GDP) or how much of the country’s total goods and services annually go into servicing the debt, 72 percent; and unemployment at 20 percent.

Today, inflation is stable at 2.9 percent; the BOP stands at $ 5 billion; external debt-to-GDP ratio is down to 34 percent; and unemployment is single-digit at seven percent.

The President also noted the foreign exchange rate was strengthened by 19 percent during her administration. In contrast, the peso started out in 1970 at P3.94 to the dollar under the Marcos administration and slid further to P22.05 in 1986. This was also true for the Aquino administration, which saw the peso’s value drop by 14 percent; the Ramos administration, 14 percent, and the Estrada administration, 39 percent.

Because it was economically sound, the President said the Philippines was one of only four countries in Asia which escaped recession brought about by the 2008 global financial crisis.

“We had to make tough and unpopular decisions to keep the economy ahead,” the President said, including the passage of the 12 percent expanded value added tax, which generated P80 billion in its first full year of implementation in 2007 and passage of so-called sin taxes for cigarettes and liquor.

The President also deferred plans toward balancing the budget this year as she saw the need for government to pump-prime the economy last year with P330 billion to create jobs and sustain economic and business activity in the face of the global economic crisis.

As a result, the government posted a budget deficit of P298.5 billion last year, or the equivalent of 3.9 percent of GDP.

In her speech, the President congratulated Finance Secretary Margarito Teves and Bureau of Internal Revenue Commissioner Joel Tan-Torres for exceeding target collections since Tan-Torres was appointed in December 2009.

The President also thanked former Agriculture Secretary Arthur Yap for his efforts in generating 1.8 million jobs, which is higher, she said, than the targeted one million jobs. (PNA)


PGMA indeed has passing marks during her tenure as President of the Philippines. As tiny as she is, she was able to fend her detractors like a seasoned boxer, working her way up punch by punch and scored solid points. Too bad, politics here is STILL focused on personalities and unless you have a lot of charisma, people will not root for you. That said, this is why we still have so many celebrities who make it to our political ranks regardless of their platform. :ohno:

i once read an article in BizNewsAsia showing that GMA is the best president for economy in the post-Marcos period...

i have always thought that BNA is probably pro-Gloria, until i saw another article, also on the same issue, saying that Erap is teh second best president for the economy... the data used to validate that claim was the same data used in saying GMA was the best...

unbelievable... :nuts::nuts:

The President said that when she assumed the presidency nine years ago, inflation stood at 7.5 percent; the balance of payments (BOP) was at $ 2.02 billion; the ratio of external debt to gross domestic product (GDP) or how much of the country’s total goods and services annually go into servicing the debt, 72 percent; and unemployment at 20 percent.

Today, inflation is stable at 2.9 percent; the BOP stands at $ 5 billion; external debt-to-GDP ratio is down to 34 percent; and unemployment is single-digit at seven percent.

WHAT THE! is this true! Maybe marami nmn kasing inemploy si Gloria na tinatawag na POLICE OYSTERS.. Masabi na lang na trabaho. SOWS!!:bash:

^^in the last 2 years of Erap, the economy was also strong. I think it grew 6% in 2000. Unfortunately for him, he was ousted. :lol:

Gov’t can still expand on achievement list
BY JESSICA ANNE D. HERMOSA, Reporter
Business World

SEVERAL business groups urged the outgoing administration to accomplish a few more items on top of the achievements economic managers cited in an investors’ briefing yesterday.

The groups called on the government to deliver on issues ranging from solutions to the current power shortage, the drafting of an industry development roadmap, and even a more general turnaround in how the international community perceives the Philippines’ competitiveness.

"The President was quite clear that we’ve had steady growth, and adequate international reserves [among other accomplishments]," Philippine Chamber of Commerce and Industry President Francis C. Chua told reporters after the briefing. "But one of the bigger issues we’ve had has always been electricity. This is something investors are quite worried about," Mr. Chua said.

He lauded stopgap attempts to repair plants and prevent rotating blackouts but said new investments had to be encouraged to address future power requirements.

"I would also like to see steady government policy," Mr. Chua added, noting the business community’s apprehension over the government’s recent decision to retroactively tax Pilipinas Shell Petroleum Corp.

He conceded, however, that the administration had not much time left -- roughly four months -- and would not be able to commit to anything long-term.

The Federation of Philippine Industries (FPI), meanwhile, reiterated the need for a development strategy for the industry sector, which Trade Secretary Peter B. Favila acknowledged in his speech.

Mr. Favila said he was proposing to create an "industrial development office" within his department that would take charge of drafting such a plan.

"That’s good news. It should be comprehensive but coherent," Mario Jose E. Sereno, head of the FPI’s international trade policy committee, said at the briefing’s sidelines.

"And any industrial planning should consist of short-, medium-, and most importantly, long-term [targets]. We hope this will lead to genuine strategic planning that will involve meaningful private sector participation," he added.

Business Processing Association of the Philippines President Oscar R. Sañez, for his part, asked for government support in marketing the outsourcing sector’s services to foreign clients.

The American Chamber of Commerce of the Philippines, for its part, proferred more general prescriptions.

"It was good to hear the administration’s accomplishments, but, on the other hand, there is plenty of data to show the Philippines is not realizing its potential," John D. Forbes, head of the group’s legislative committee, said.

It’s lights out again in parts of Luzon
Manila Times
BY EUAN PAULO C. AÑONUEVO Reporter

It was lights out again for a number of areas in Luzon after another power plant bogged down.

Data from the National Grid Corporation of the Philippines showed that Luzon suffered a power generation deficiency of 236 megawatts after production from the 700-megawatt Caliraya-Botocan-Kalayaan hydroelectric power plant in Laguna was affected by the prolonged dry spell.

Two units of the hydroelectric plant are running at 152 megawatts each. A third unit, however, is unavailable because of low elevation at Caliraya Lake.

Current elevation is 286.16 meters, which is below the required elevation of 286.50 meters to keep all three units of Kalayaan running. The critical water level at the reservoir is below 286 meters.

The power plant is operated by J-Power and Sumitomo Corp. of Japan under a build-operate-transfer contract with state-owned National Power Corp.

Because of limited production from the hydro facility, Manila Electric Co., the country’s largest distribution utility, implemented one-hour rotating brownouts in parts of Metro Manila. Also affected were areas in the provinces of Batangas, Bulacan, Cavite, Laguna and Quezon.

Angelo Reyes, Department of Energy secretary, said that should the hydro plant continue to be impaired by low water levels, power supply deficiency in Luzon, the Philippines’ main group of islands, may worsen.

“If the water levels continue to come down, then we might be experiencing some difficulties in Luzon,” he added.

The problem being experienced in the hydro plant adds to a growing list of power plants that have conked out one after the other for various reasons since the start of the year.

In January, the alleged breakdown of the Sual plant and the inability of recently privatized power plants to operate resulted in rotating brownouts in Luzon.

Businessmen are worried about the brownouts happening all over the country, an official of a business group said also on Wednesday.

Francis Chua, Philippine Chamber of Commerce and Industry (PCCI) president, told reporters that they have received many complaints about the power shortage from its members and chapters nationwide.

“They want the government to do something about the energy crisis,” he said, or they “might close shop.”

“Without electricity, industry cannot function properly,” Chua added.

He said that the brownouts are “not healthy” for business, adding that potential investors may put off investment plans because of the deteriorating energy situation in the country.

On Monday, the country’s largest island group suffered from rotating brownouts again after three major coal-fired power plants (Sual, Masinloc and Calaca) were hit by alleged technical problems.

National Grid, which manages the country’s power system, said that as of Wednesday Masinloc 1 (315 megawatts), Calaca 2 (180 megawatts) and Santa Rita 30 (260 megawatts) were still down. Also, the Magat hydroelectric plant was running only at 30 megawatts instead of 90 megawatts as a result of low water levels in its reservoir.

Power generation capacity was pegged at only 6,585 megawatts also on Wednesday compared with peak demand of 6,821 megawatts.


__________________________________


Eight dams to reach critical levels in April
Manila Times

THE Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) on Wednesday warned that all of Luzon’s eight dams may reach critical levels sooner than expected, as water levels there continued to drop because of the El Niño weather phenomenon.

Its Hydrometeorological Division said that low water levels could mean less electricity production and depleted water supply for farmlands.

According to Pagasa, the national weather bureau, the peak might be felt in April, by which time the dams will have reached their critical levels.

The bureau’s website said that the water levels of the eight reservoirs have dropped below their normal elevation, with Magat dam in Isabela province as the most affected.

The El Niño dry spell has been causing losses in agriculture and tourism across the country, from farmlands up North to poultry farms and tourist destinations down South.

In Benguet in northern Philippines, water sources for mountain farmlands planted to potato, cabbage and other temperate vegetables have begun to dry up because of El Niño, making huge agricultural losses possible for the country’s “Salad Bowl” and increases in vegetable prices.

In Ilagan, capital town of Isabela in northern Philippines, Pinsal Falls in the Ilagan Sanctuary, a popular tourist attraction among locals, has started to dry up also because of El Niño.

A seven-foot deep swimming pool inside the sanctuary, which used to be open for public use, stopped operations since the spring where it gets its water supply had also dried up.

As of March 2, Magat dam is already 26.51 meters below its average level of 183.29 meters. The figure showed a drop from the dam’s 157.19-meter level on March 1.

The dam serves as a major source of irrigation water for the Cagayan Valley provinces—Cagayan, Isabela and Nueva Vizcaya—and also supplies additional hydroelectric power to the Luzon grid.

Angat dam in Bulacan province was already 6.07 meters below its normal level of 197.78 meters.

The water level of Ipo dam, also in Bulacan, went down farther to 100.63 meters from 100.75 meters on Monday, while La Mesa dam in Quezon City fell from 79.90 on March 1 to 79.89 on March 2.

The Angat-Ipo-La Mesa water system provides irrigation for Bulacan and Pampanga and supplies potable water to Metro Manila.

The water level in Binga dam in Benguet province has dropped to 562.55 meters, or 11.45 meters lower than its average level of 574 meters.

Ambuklao dam, also in Benguet, is 11.72 meters less than the normal level of 752 meters. The water level of San Roque dam in Pangasinan is 2.71 meters short of the average level of 250 meters.

All three dams are major producers of hydroelectric power to supply the Luzon grid, and San Roque also provides irrigation to hundreds of hectares of farmlands.

The current level of Pantabangan dam in Nueva Ecija province is pegged at 202.30 meters, or 6.14 meters short of its normal level.

The El Niño is an abnormal weather pattern caused by the warming of the Pacific Ocean. It is characterized by climatic aberrations around the world—warming in South America, torrential rains in North America and drought in Southeast Asia and Australia. This phenomenon occurs every two to seven years.

RP eyeing foreign nuke plants
President ‘interested’ in two auctioned off by South Korea govt
BY EUAN PAULO C. AÑONUEVO Reporter
Manila Times
Thursday, 04 March 2010

The Philippines has expressed interest in acquiring two nuclear plants from South Korea, according to Rep. Mark Cojuangco of Pangasinan.

“A letter submitted [to the South Korean government showed that President Gloria Arroyo] is interested ,” Cojuangco said on Wednesday.

“But there is a question of continuity [that would arise from the May 2010 elections]. So I requested some time so facts may be assessed by the next president,” he added.

That balloting will pick President Arroyo’s successor.

The government expressed its intent to secure the whole lot offered on the auction table on the possibility that it would pursue nuclear-power development.

With no concrete plans yet for such development, it asked for the bidding process to be moved up to the third quarter of 2010.

Cojuangco said that there were more than 40 major items, which form parts of the two nuclear plants, being sold by South Korean.

The two facilities on the auction block have a total power generating capacity of over 2,000 megawatts, or just a few hundred megawatts off the entire demand in the Visayas and Mindanao combined.

The nuclear facilities could fetch as much as $5 billion and would take from 50 to 60 months to be set up. A brand new nuclear plant would cost anywhere from $8 billion to $10 billion and would take at least 88 months to get going.

South Korea currently has four nuclear power plants and plans are afoot to construct eight more. The country has no known record of accidents caused by its nuclear plants.

Positive feedback
Cojuangco said that he was confident of a positive feedback from Seoul within the next few days on Manila’s interest in the two nuclear plants.

“The bidding has started but we have a chance because some of the bidders only vied for a few items,” he added.

[I]Cojuangco said that a national policy on nuclear power and public acceptance of nuclear power should be resolved first by the government before it pursues nuclear-power development.

“This pursuit should gain public acceptance. Dapat maramdaman ng tao na safe ito [The people should be made to feel that nuclear technology is safe],” he added.

Cojuangco added that nuclear power would help the country secure its long-term power supply and bring down power rates, which are said to be among the highest in Asia.

“Kung panakip butas dahil sa kakulangan ng kuryente ngayon, hindi kailangan ito dahil kaya yan ng power barges and other stop-gap measures. Pero mahal na kuryente kapalit ng mga yan, magiging ubod ng mahal ng kuryente [We do not need nuclear power to ease the power shortage today because (deploying) power barges and (adopting) other stop-gap measures are enough to solve the shortage. This solution, however, would drive up the prices of electricity],” he explained.

Alaska Milk Corporation reports net income of P1.4 billion for 2009 (http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=262403)

MANILA, March 4 (PNA) -- Alaska Milk Corporation, in its disclosure to the Philippine Stock Exchange, announced that it has posted unparalleled net income of P1.4 billion, up 384 percent from P291 million in 2008.

Consumer demand for the company’s core milk products remained robust, underpinned by extensive advertising and promotional activities as well as improvements in logistics and supply chain management.

With costs of major raw materials down significantly from their 2008 highs, the operating margin for the year improved to 17.9 percent from 4.7 percent a year ago.

Retail consumption of both evaporated milk and sweetened condensed milk, expanded year-on-year following Alaska's strategic price rollback for selected liquid canned milk brands which drove overall demand.

Strong sales volume growth across the company’s core milk business pushed full year revenues for 2009 to P10.59 billion, up six percent from P9.97 billion in 2008.

However, opportunity losses in the aftermath of typhoon “Ondoy” impeded sales volume growth during the fourth quarter of the year, especially for the liquid canned milk business.

The flooding incident in the company’s manufacturing facility caused operations to cease temporarily which resulted to some out-of-stocks situations.

Sales volume of the Alaska’s powdered milk business, on the other hand, posted strong double digit growth rates on the back of improvements in product availability and extensive merchandising efforts in down-line retail outlets.

Cost of sales and operating expenses for the year amounted to P8.69 billion, eight lower than cost of sales and operating expenses of P9.50 billion a year ago primarily due to lower raw material prices.

Costs of key imported raw materials, skimmed milk powder in particular, as well as local sugar and coconut oil eased down from their peak levels in 2008 due to the decline in global demand attendant to a slowdown in economies.

Operating expenses, however, edged higher due to higher distribution related charges on increased sales volume as well as sustained advertising and promotional spending to support sales volume growth.

The foregoing put operating income for the year at P1.89 billion or 17.9 percent of net sales, higher than 2008’s actual operating income of P464 million or 4.7 percent of net sales.

Higher cash balances due to higher profitability and lower working capital requirements brought net interest income for the year to P22.2 million, a reversal from the P55.4 million net interest expense incurred in 2008.

The year-end cash balance for 2009 stood at P1.9 billion.

After considering foreign exchange losses as well as the impact of a lower corporate income tax rate, unaudited net income for the year surged to P1.4 billion from P291 million in 2008.

Return on sales likewise improved to 13.3 percent from 2.9 percent a year ago.

Alaska also reported that its 2009 net income is equivalent to an earnings-per-share (EPS) of P1.59 compared to an EPS of P0.32 in 2008.(PNA)

Originally Posted by fengrun View Post
there really is no point comparing poverty. Because poverty is relative. Even the less than $1 or less than $2 set by World bank is not a good basis.

If you live in a farm say as a caretaker, and the owner of the farm just gives you 40 pesos per day as allowance, but you and your family can eat any farm produce, and your shelter is provided. You are not considered living in poverty.

Those people living around the big markets like divisoria, are not living in poverty. Because essentially food is plenty and cheap around big markets.
----


So true. The valuation of "wealth" and "poverty" tend to be compared to western monetary values, like how much is a basket of groceries in NYC compared to Manila etc. For example, using western values or standards of northern climate housing, squar footage per person etc. rather than tropical style housing. And yes, there's so much free food esp outside of the rural area, like coconuts, fruits, gulay, fish etc. WB should put monetary value to that as well.

Thus the terms cost of living and standards of living.

And it's up to a person if he is content to eat 3 square meals a day.

Yes, it all depends too on what they eat, the availability of food local to the their diet with nutritional content. The funny thing is as one relative said to me, food/eating is a ritual in the Philippines. It's on the extravagant side esp for middle class, and urban Filipinos. As most expats noticed, they'd rather be poor in the Philippines than in their cold, northern clime country. Food is available (even healthier, more natural, less processed) in the Philippines if people want to work on it, or even just harvest it. It's just knowing what and how to eat, whether it's 2 big meals a day or 4 very small meals a day (which some say is healthier).

I've been following this developments, the proponents well, are people I have serious credibility with. And then,

* Nuclear waste (serious problem what to do with them, where to dump them.)
* Where would they build them? Philippines is an unstable region, geologically, ring of fire - earthquakes, volcanoes (read only Palawan doesn't have a volcano.)
*Philippines has geothermal energy, #2 in the world in terms of production, next to the US, it's renewable NO waste really. Country has lots of potential, the technology is also exportable.
*Philippines has enough wind to to create windmill farms, e.g. Bangui another renewable source, many of the islands in the Visayas can have their own wind farms and source of electricity.

Finally, let's not forget the Bataan Nuclear Plant. The Philippines is still paying for that whereas the proponents have made their money and ran. What's the agenda of these pro-nuclear power plants? That's the question.

RP eyeing foreign nuke plants
President ‘interested’ in two auctioned off by South Korea govt
BY EUAN PAULO C. AÑONUEVO Reporter
Manila Times
Thursday, 04 March 2010

The Philippines has expressed interest in acquiring two nuclear plants from South Korea, according to Rep. Mark Cojuangco of Pangasinan.

“A letter submitted [to the South Korean government showed that President Gloria Arroyo] is interested ,” Cojuangco said on Wednesday.

“But there is a question of continuity [that would arise from the May 2010 elections]. So I requested some time so facts may be assessed by the next president,” he added.

That balloting will pick President Arroyo’s successor.

The government expressed its intent to secure the whole lot offered on the auction table on the possibility that it would pursue nuclear-power development.

With no concrete plans yet for such development, it asked for the bidding process to be moved up to the third quarter of 2010.

Cojuangco said that there were more than 40 major items, which form parts of the two nuclear plants, being sold by South Korean.

The two facilities on the auction block have a total power generating capacity of over 2,000 megawatts, or just a few hundred megawatts off the entire demand in the Visayas and Mindanao combined.

The nuclear facilities could fetch as much as $5 billion and would take from 50 to 60 months to be set up. A brand new nuclear plant would cost anywhere from $8 billion to $10 billion and would take at least 88 months to get going.

South Korea currently has four nuclear power plants and plans are afoot to construct eight more. The country has no known record of accidents caused by its nuclear plants.

Positive feedback
Cojuangco said that he was confident of a positive feedback from Seoul within the next few days on Manila’s interest in the two nuclear plants.

“The bidding has started but we have a chance because some of the bidders only vied for a few items,” he added.

[I]Cojuangco said that a national policy on nuclear power and public acceptance of nuclear power should be resolved first by the government before it pursues nuclear-power development.

“This pursuit should gain public acceptance. Dapat maramdaman ng tao na safe ito [The people should be made to feel that nuclear technology is safe],” he added.

Cojuangco added that nuclear power would help the country secure its long-term power supply and bring down power rates, which are said to be among the highest in Asia.

“Kung panakip butas dahil sa kakulangan ng kuryente ngayon, hindi kailangan ito dahil kaya yan ng power barges and other stop-gap measures. Pero mahal na kuryente kapalit ng mga yan, magiging ubod ng mahal ng kuryente [We do not need nuclear power to ease the power shortage today because (deploying) power barges and (adopting) other stop-gap measures are enough to solve the shortage. This solution, however, would drive up the prices of electricity],” he explained.

^^^^
mahal pala ng isang nuke plant.

May I know where did you get this data?

This is what I found http://www.indexmundi.com/g/r.aspx?c=th&v=69

you're right.

Yes I am impressed as well. In fact, most of our neighbors did remarkably well in eradicating poverty. We are the only country in the Far East doing quite slow to modest gains against poverty.

But I have to make our concepts and definitions clear.

First, be very careful of comparing poverty stats because every country has their own definition of poverty. There is no single definition that every country has adopted, and even the $1 to $2 definition of the World Bank is still problematic.

Second, even in our own country, the definition of poverty has changed quite a number of times. Therefore, it will be difficult comparing poverty from the previous years.

Third, there are groups used in measuring poverty: 1) poverty per individual/population and 2) poverty per household/family. What you described was poverty per family which stands at 26.9%.

source: http://www.nscb.gov.ph/

That's right. Be very very careful in quoting statistics because it might confuse the forumers and might cause disagreements.

These should be the sources
http://www.treasury.gov.ph/statdata/yearly/yr_cor_revenues.pdf
http://www.treasury.gov.ph/statdata/yearly/yr_cor_debtservice.pdf
http://www.dbm.gov.ph/index.php?id=28&pid=8

In fact, the 30% per CIA fact book was based on 2003 rate. I'm not sure if the 26% applies to poverty index based on income of individual.

One thing for sure, the seemingly high poverty level is due to uncontrolled population growth and unequal distribution of wealth.

Anyway....

Wind turbines provider to set up IT hub in RP:cheers:

By Anna Valmero
INQUIRER.net
First Posted 14:09:00 03/04/2010

Filed Under: Energy & Resources, Alternative energy, Technology (general)

MANILA, Philippines – A Danish wind power solutions provider will build its second largest IT hub in the country and hire up to 200 local employees by 2011, an official said Thursday.

The local IT hub, to be inaugurated Thursday night, will house 100 employees by yearend and up to 200 by 2011, from the existing 25. This will make the Philippine IT hub the second largest next to its headquarters in Denmark, said Sean Sutton, president for Vestas Wind Systems Asia-Pacific.

The Vestas Services Philippines Inc. will be the fourth Vestas main IT center in the world, next to Denmark, Singapore, and USA. It will support Vestas' global team with IT operations and back-end support including surveillance, service desk and programming competencies for the operation of 11,500 turbines worldwide in real-time, said Torben Bonde, chief information officer and senior vice president for Vestas Wind Systems.

The Manila hub is part of our value chain and will be groomed to enable us to grow up to 8.5 billion euros in revenues, Bonde said.

Juergen Wirth, managing director of Vestas Services Philippines, said the company was hiring extensively for its Manila hub.

“From seven other countries, we chose Manila, Philippines because of the skilled talent poll here plus the abundant wind energy sources in the country,” said the official.

Wind energy comprises about one percent of global power use and is set to grow by 10 percent in Asia by 2020. The location in the Philippines puts Vestas in a strategic position to gain more inroads in the market while lowering energy generation costs in the country, Sutton said.

Aside from after sales support, the company is also seeking to provide the government's power generation target of 417 megawatts by 2013 from wind energy, said Sutton.

“Currently, we have supplied 20 turbines in the wind farms in Ilocos Norte that generates 33 MW of power, which is capable of supplying energy to households up to tens of thousands. The Philippines being an abundant source of wind energy, we plan to scale up and get a significant slice of that 417 MW energy target,” Sutton told INQUIRER.net

“If that's the case, it would mean generating more local jobs apart from the IT hub. Per megawatt of wind energy produced, 13 jobs are created so I believe we have a positive consequence to jobs creation if the Philippines goes full blast in achieving its targets for renewable wind energy,” said Sutton.

Harnessing renewable energy sources like the wind is imperative to meet the fast rising energy demands set to double by 2020 amid the diminishing fossil fuel resources, said Sutton.

“Wind power is a renewable, predictable and does not emit greenhouse gases, a clean source of energy and a high viable solution to the world's long-term power demands. Energy demands are expected to double by 2020 and faced with diminishing energy resources, we aim to make wind energy at par with oil and gas as a reliable and competitive energy source,” added Sutton.

Compared to oil and gas, energy generation costs using wind turbines are lowered over time because of total megawatts produced over a 20-year operational life cycle of the turbines, which are recyclable. Moreover, wind energy generation does not emit greenhouse gases unlike fossil fuels that has intensified global warming, he said.

Vestas is a provider of wind turbines that could generate energy up to 3MW capacity, depending on power requirements and the terrain of the target location.

^^ @sandwindstars

Oh, OK ... i checked this site given by leraine
http://www.treasury.gov.ph/statdata/yearly/yr_cor_debtservice.pdf
http://www.treasury.gov.ph/statdata/yearly/yr_cor_revenues.pdf
it's a bit different with my figures.. but not that much.. here is my computations, the changes are in bold fonts, AND IT ACTUALLY WENT HIGHER... :D

2008 national budget -- P1.227-trillion
debt service ---- P598 billion -----P 612,682
that is 48% of national budget ------ 49%

[/B]2009 national budget -- P1.415 trillion ---P 1,123 trillion
debt service ---- P681.52 billion --- 622,287
that is 48% of national budget -------- 55%

2010 national budget -- P1.54-trillion
debt service was cut by P64.6 billion from P340.82 Billion---- P276.212 billion
that is 17% of national budget


no wonder kahit anong taas ng growth ng pinas.. d parin mabawasbawasan ang poverty.... kalahati ng kinikita ng bansa pambayad utang lang... tsk tsk tsk...

PEZA exports rise 54% in January:cheers:

abs-cbnNEWS.com | 03/04/2010 4:38 PM

MANILA, Philippines - Exports from economic zones administered by the Philippine Economic Zone Authority (PEZA) rose 54% to $3.13 billion in January from $2.03 billion in the same month last year.

In a report, PEZA director-general Lilia de Lima said bulk or $2.18 billion of the export bill were from locators in the privately-owned ecozones. This was an increase of 57% from last year's $1.39 billion.

Exports from public zones, including Baguio, Cavite, Mactan and Bataan, rose nearly 60% to $652.22 million in January from $408.28 million in the same month in 2009.

Locators in information technology (IT) parks, meanwhile, generated export earnings of $297.16 million, up 26.79% from last year's $234.37 million.

Employment at PEZA ecozones also went up 11% to 637,759 from 572.836.

About half or 301,014 of the workers were employed by private ecozones while public zones had 124,175 workers. IT locators accounted for the remaining workers.
as of 03/04/2010 4:39 PM

SMC bags $1.5-B railway project linking QC to Bulacan (http://business.inquirer.net/money/topstories/view/20100303-256486/SMC-bags-15-B-railway-project-linking-QC-to-Bulacan)
By Daxim Lucas
Philippine Daily Inquirer
First Posted 21:04:00 03/03/2010

Filed Under: Railway, Infrastructure, Economy and Business and Finance
Most Read

MANILA, Philippines--Diversifying conglomerate San Miguel Corp. will take control of the $1.5-B Metro Rail Transit-Line 7 project by acquiring a majority stake in the firm that won the mandate for the deal, the Inquirer learned Wednesday.

According to a source familiar with the transaction, the publicly listed firm was in the “advanced stages of negotiation” to take control of Universal MRT Corp., which is the consortium tasked to build the MRT 7 project.

The deal puts SMC in a position to benefit from the potentially lucrative commuter rail business between Metro Manila and the rapidly growing region to the north of the metropolis.

At present, the MRT 7 project is controlled by businessman Salvador “Buddy” Zamora III who, in turn, acquired majority control of the consortium in 2008 from its original proponent, Israeli businessman Eli Levin.

MRT 7 is a build-“gradual transfer”-operate, maintain and manage project for the development, financing, operation and maintenance of a 22-kilometer light rail transit route that extends from the MRT Line 3’s North Edsa terminal to San Jose del Monte, Bulacan.

The project also includes an Intermodal Transport Terminal—a transportation hub for buses and other forms of public conveyances—in San Jose del Monte, as well as a 22-km, six-lane feeder highway from the northern end of the line to Bocaue, Bulacan. This highway will link the intermodal terminal to the North Luzon Expressway.

The source said the entry of SMC into the Universal MRT consortium is expected to be sealed “very soon,” but declined to reveal the pricing terms for the deal.

As envisioned by the proponents, the rail component of MRT 7 project will initially operate 108 rail cars in a three-car train configuration. Initial capacity is projected at 448,000 passengers a day, but will eventually be expanded to accommodate as many as 850,000 passengers daily.

The rail line will have 14 stations, namely: North Edsa, Quezon Memorial Circle, University Avenue, Tandang Sora, Don Antonio, Batasan, Manggahan, Doña Carmen, Regalado, Mindanao Avenue, Quirino, Sacred Heart, Tala and Araneta San Jose Del Monte.

The intermodal terminal, on the other hand, will be able to accommodate 60 buses and will also feature passenger facilities and amenities.

The entire $1.5-billion project is expected to be fully completed in 42 months, although parts of it may be made operational in phases.

Once completed, SMC will operate and maintain the rail service, the intermodal terminal and the highway for a period of 25 years. The government will get a 30-percent share of net passenger revenues and a 20-percent share of other earnings.

Alaska Milk Corporation reports net income of P1.4 billion for 2009 (http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=262403)

MANILA, March 4 (PNA) -- Alaska Milk Corporation, in its disclosure to the Philippine Stock Exchange, announced that it has posted unparalleled net income of P1.4 billion, up 384 percent from P291 million in 2008.

Consumer demand for the company’s core milk products remained robust, underpinned by extensive advertising and promotional activities as well as improvements in logistics and supply chain management.

With costs of major raw materials down significantly from their 2008 highs, the operating margin for the year improved to 17.9 percent from 4.7 percent a year ago.

Retail consumption of both evaporated milk and sweetened condensed milk, expanded year-on-year following Alaska's strategic price rollback for selected liquid canned milk brands which drove overall demand.

Strong sales volume growth across the company’s core milk business pushed full year revenues for 2009 to P10.59 billion, up six percent from P9.97 billion in 2008.

However, opportunity losses in the aftermath of typhoon “Ondoy” impeded sales volume growth during the fourth quarter of the year, especially for the liquid canned milk business.

The flooding incident in the company’s manufacturing facility caused operations to cease temporarily which resulted to some out-of-stocks situations.

Sales volume of the Alaska’s powdered milk business, on the other hand, posted strong double digit growth rates on the back of improvements in product availability and extensive merchandising efforts in down-line retail outlets.

Cost of sales and operating expenses for the year amounted to P8.69 billion, eight lower than cost of sales and operating expenses of P9.50 billion a year ago primarily due to lower raw material prices.

Costs of key imported raw materials, skimmed milk powder in particular, as well as local sugar and coconut oil eased down from their peak levels in 2008 due to the decline in global demand attendant to a slowdown in economies.

Operating expenses, however, edged higher due to higher distribution related charges on increased sales volume as well as sustained advertising and promotional spending to support sales volume growth.

The foregoing put operating income for the year at P1.89 billion or 17.9 percent of net sales, higher than 2008’s actual operating income of P464 million or 4.7 percent of net sales.

Higher cash balances due to higher profitability and lower working capital requirements brought net interest income for the year to P22.2 million, a reversal from the P55.4 million net interest expense incurred in 2008.

The year-end cash balance for 2009 stood at P1.9 billion.

After considering foreign exchange losses as well as the impact of a lower corporate income tax rate, unaudited net income for the year surged to P1.4 billion from P291 million in 2008.

Return on sales likewise improved to 13.3 percent from 2.9 percent a year ago.

Alaska also reported that its 2009 net income is equivalent to an earnings-per-share (EPS) of P1.59 compared to an EPS of P0.32 in 2008.(PNA)

oh, but this is correct!! and i am using the number correctly!
that is really the amount paid for debt interests and principal.. for the year 2008 and 2009!
debts during the People power has almost tripled today, that is why we are paying higher!
sorry that i forgot to post the links for my data.. but trust me, i did not confuse it to NATIONAL debt.. if I did, it will be in dollars.. and i'm not that simpleton. :D

Please do not take things to a personal level. This is discussion about finite things like numbers, how we use/interpret them, just like any statistical data.

Debt to GDP ratio, and debt servicing (programmed payments like personal credit cards) are benchmarks/standards of how an economy is doing, whether a country has the ability to pay their debt.

"Principal" payments of the Phil govt, from what I've read, were NOT programmed were paid in advance to lower country's debt burden (debt/gdp ratio) OR they borrowed money at a lower interest to pay off the original loan with higher interest (to lower debt servicing).

In any case, a country pays off principal amounts when they have excess cash or exercise spending control. Just like Canada (where I think you live) in the late 90's with Paul Martin as Min of Finance.

Comparing 1986 and to day's numbers may be misleading because one has to adjust the value of the peson then and now, take into account inflation, the actual size of the econmy etc so that one is comparing apples to apples, not apples to oranges. That's why it's best to analyze numbers rather than take raw numbers, look at numbers in % or ratios.

In short, the Philippines debt in relation to the size of its economy is better now than in 1986. (Some sectors then wanted debt moratorium because the debt servicing was too much, heavy.)

^^ yes you are right, and I definitely agree with you, debt to GDP ratio is better nowadays..
and i do agree that it is best to refinance loans for lower interest rates.

but my point is.. it is very unhealthy if the biggest chunk (50%) of the National budget goes to debt servicing alone.. don't you think so? it's either we lessen our debt by lessening borrowings or increase the government budget surplus- instead of budget deficits, by improving tax collections or by increasing tax.

Unlike Canada which most of the time has Cash Surplus(well maybe except Ontario.. LOL), the Philippines always incur budget deficits. DEBT SERVICING FOR THE PHILIPPINES is not just HEAVY.. IT IS REALLY REALLY VERY HEAVY...it eats up half of the national governments budget almost every year.. this year was an exception, largely because of the Humongous RECORD deficit that we have.. and the government decided to use the money for pump priming instead of debt servicing....

my other point is..aside from corruption, this issue is one of the very reasons why development is slow in the Philippines.. mainly because the government never had enough cash, if not enough to spend on development...

http://www.philippinefolio.com/contdetail.php?id=8&id_app2=41&id_app3=00366


Part One: Seeking the Holy Grail on Good Friday


Finally I met him, this wonderful writer-researcher-computer hack, with the mischief of Shakespeare's Puck, the prankish antics of an Irish leprechaun, and physical size to match, whose book Some Are Smarter Than Others and pamphlet Coco-dile File played a crucial role in the election of Fidel V. Ramos as President, and whose latest Wrong Number provided the final coffin nail to the PLDT monopoly.

Finally I met him after a year of the two of us searching for each other's address and phone number, and missing each other like Evangeline's ships in the night. I met him on Good Friday when he showed up in my house in Dasmarińas Village in the company of Ka Luis Taruc (former Huk Supremo), armed with three questions: Now that you stopped writing your columns, whom shall I quote in my future works (my articles infest his bibliographies!)? Was there ever any admission on the part of the Cojuangco family that the source of their original wealth is the hero Antonio Luna? Whatever happened to the alleged love-child born of Ysidra Cojuangco and Antonio Luna?

The first question is answered by this series of articles which Ric Manapat helped research on and which he now calls The Story of the Century, all ready to be further elaborated on and researched by him as he did my past articles. The second and third questions are answered in the body of this series.

Finally there is one credible witness who quotes Ysidra Cojuangco herself admitting that Antonio Luna used to bring her gold, not once but regularly during the Philippine American War and our First Republic, almost till the day he died.

And incredibly, we have found ample evidence to conclude that the love child of Ysidra and Luna might have survived, adopted by her brother Melecio, and may be one of the four sons of Melecio: either Jose, father of ex-President Corazon Aquino; Juan, the twice-married, childless one; Antonio, the father of Ramon and the grandfather of PLDT's president; or Eduardo, the father of presidential candidate Danding Cojuangco. Which one? Well, read the rest of this series to find out.

Holy Week in the past has always been the time of terrible accidents in my family, and I hesitated to join Ric Manapat when he suggested “tracing 30 pieces of silver on a Good Friday.” But the roads were clear of traffic, and Manapat is such a good driver that I even sat in the “death seat” near to the air conditioner without a seat belt, as he negotiated the distance to Kawit, Cavite, in 20 minutes instead of the usual two hours.

Ric, Ka Luis and myself were joined by Dr. Steve Latorre, brilliant UP professor and ex-Opus Dei priest now working in Malacańang as my executive assistant, as we set out to find Ka Luis' friend Ka Alfredo Saulo, ex-political detainee, historian and biographer, now curator of the Aguinaldo Museum in Kawit, who is the nephew of Eulalio Saulo. Eulalio with his brothers (under General Martin Tinio) supervised, in Ka Fred Saulo's words, “the convoy of carts loaded with a huge amount of Spanish gold and silver coins seized from local treasuries in the Ilocos region, leading this convoy through forested areas up to the final destination in Paniqui, Tarlac, in the house of Ysidra Cojuangco, girlfriend of General Antonio Luna.”

We were hoping for some old letters, some documentary evidence in the hands of Ka Fred Saulo. No such luck, but Ka Fred told us of a cousin, Encarnacion Saulo-Padilla, favorite daughter of Eulalio, almost 93 years of age, who as a young girl was a good friend and confidante of Ysidra Cojuangco herself (who died in the 1960).

A little background here. There was an earlier account recounted by historian Carlos Quirino in an unpublished book commissioned by Danding Cojuangco, about a shipment of gold vessels commandeered by General Antonio Luna from churches in Pampanga, collected for him by Tiburcio Hilario, Pampanga governor, brought to Paniqui and entrusted to Ysidra for safekeeping before Luna left for Cabanatuan to meet Aguinaldo, only to be assassinated there.

Aha, so gold was brought by Luna from both the Ilocos (through Saulo) and Central Luzon (through Hilario) to Ysidra! With the First Republic on the run and the Americans inquiring about the gold, Ysidra dumped the gold into a well, retrieved it later and used it to build the Cojuangco fortune.

I jokingly suggested in the presence of Cory Aquino, in a birthday party of Joker Arroyo, that the Cojuangco fortune is subject to sequestration by the PCGG.

It was also jokingly pointed out that in this case the statute of limitations defining a prescription period for the prosecution of past crimes, is in force. But apparently no one, not even Cory, read her own 1987 Constitution, Article 11, section 15, which stipulates: “The right of the State to recover properties unlawfully acquired by public officials or employees, from them or from their nominees or transferees, shall not be barred by prescriptions, laches or estoppel.”

Our irreverent foursome, joined by Ka Fred Saulo, who would pursue their Holy Grail on Good Friday, drove to Heroes Hill, Quezon City, to see Encarnacion Saulo-Padilla. Bed-ridden but sound of mind, she was irrepressible, regaling us with stories of Dońa Ysidra, her neighbor in Sta. Rosa, Nueva Ecija, whom she met when she was 10 years old, and who was going to be her godmother, ninang sa casal, were it not for the distance and difficulty of travel.

We recorded her saying that Ysidra admitted that Luna was indeed her very close friend, and that Luna left her valuables, not once but regularly on many occasions. When asked how much value was involved, Encarnacion replied that while she is not sure of the exact value, it was certainly in huge quantities since several huge caskets were involved. Manapat asked her if she knew that there were more than one shipment. She emphatically said yes, the shipments were a regular thing!! Not only was Encarnacion a friend and confidant of Dońa Ysidra, she is also the daughter of Eulalio Saulo who confirmed to her the story as one of the military escorts of the gold shipment to Ysidra. As far as we know this is the first direct evidence of a Cojuangco (and Ysidra at that) admitting what many Luna contemporaries long alleged, that the source of the Cojuangco fortune was the gold commandeered by Luna and regularly turned over to Ysidra.

The combined assets controlled by the Cojuangcos total about P200 billion. To recover such wealth under Article 11, section 15 of the 1987 Constitution, one must go to court, and pay a filing fee of half a percent of the amount to be recovered, or P1 billion unrefundable win or lose. Who has that kind of money to risk? Ric Manapat suggests that the three wealthy branches be sued for P1 each. Once the case is won, then the rest of the P200 billion may be sued for. Or alternatively, Manapat suggests that the PCGG pursue the matter with funds appropriated by Congress, the funds merely transferred from one government pocket to another. Oh what the heck, he is probably joking, and this Good Friday caper may just be a mere exercise in the quest for historical truth.

The last question of Ric Manapat as to whatever happened to the love-child of Ysidra Cojuangco and General Antonio Luna, is answered after a quest akin to that of Sir Galahad for the Holy Grail, taking us through interesting by-ways, dead-ends, winding trails, backtracking mazes, and finally to El Camino Real, the road of destiny of the Filipino people, of General Aguinaldo, of Ysidra and Luna, and of the four sons of Melecio Cojuangco.

http://www.philippinefolio.com/contdetail.php?id=8&id_app2=41&id_app3=00366


http://newsbreak.com.ph/index.php?option=com_content&task=view&id=6843&Itemid=88889066

http://www.philippinefolio.com/contdetail.php?id=8&id_app2=41&id_app3=00369


Part Four: Ysidra and Luna, The Road of Destiny


It was the road of destiny for President Aguinaldo, from Kawit to the gates of Manila, where he was betrayed by Americans into inactivity while awaiting the arrival of its troops from the United States, then north of Manila pursued by superior American forces to Cabanatuan, to Palanan and defeat.

El Camino Real was also the road of destiny for the starcrossed lovers, Ysidra Cojuangco and General Antonio Luna, leading from Barasoain during the Malolos Congress when love first bloomed, to Paniqui where they spent their last night together, to Cabanatuan where Luna was assassinated, hacked with bolos and perforated with bullets. The hub of El Camino Real is Manila, and there on Taft Avenue in the La Salle College, two other Antonios, both Cojuangco, died violently, shot and bayoneted along with their families by retreating Japanese invaders.

We traveled the road of destiny, on Good Friday to Kawit, to Heroes Hill, Ayala Alabang, Manila Memorial Park; and recently for the last leg of our trail in quest of the Holy Grail, to Malolos, Paniqui and Cabanatuan.

We dropped by the Archbishop of Tarlac Florentino F. Cinense who requested the Parish Priest of Paniqui Pedro Capitly to open to us old Baptismal Registries that dated back to 1869. Our worst fears were confirmed, the Books No. 13 and 14 covering the period from 1874 to 1902 were missing. We were hoping to find the baptismal record of Ysidra's natural son allegedly with a Chinese mestizo, or a record of its death and burial; and/or the baptismal record of Antonio Cojuangco, which would at least state the age of the baby (in days) at the time of baptism. Alas, as in the Barasoain Church records, as in the Ateneo Annual of 1918, as on his tombstone in Manila Memorial, as now in the Paniqui church records, evidence of Antonio Cojuangco's birth is missing. Incredible!

We were told that some information might be available at the old ancestral estate of Dońa Ysidra in Paniqui itself, now occupied by ex presidential candidate Danding Cojuangco. Ric Manapat, Steve Latorre and myself, all involved in the campaign against Danding, opted to send a team of researchers from UP, led by an Ateneo graduate student, named Emmanuel, literally “sent by God.” A student of para-psychology under Father Jimmy Bulatao, he joined us upon the prompting of his divining rod.

After being questioned at length, Emmanuel and his team gained the confidence of the old family retainers who showed them a portrait and bust of the venerable Dońa Ysidra Cojuangco, a statue of the clan founder Don Martin who migrated here from China. Also the old house, now called Y.C. Building, near the railroad terminal that once brought General Arthur MacArthur to the Cojuangcos, and from which Cojuangco rice was transported by military trains free to Manila, courtesy of MacArthur.

Emmanuel was also regaled with eerie ghost stories, of a troubled soul that knock on doors, peruse books and papers, and wander around various parts of the house. But it was when he and his team were brought to the old mausoleum called Ermita, that Emmanuel began to feel the presence of something not of this world, not unlike that in the movie Wuthering Heights (from a novel by Emily Bronte) after Cathy died and her spirit haunted Heathcliff in the barren windswept moors. In the white heat of summer and dark brooding interiors of the family chapel, Emmanuel sweated under a strange spell.

Plaques behind the altar listed each deceased family member, including two foetuses that were born dead, but there was no evidence of Ysidra's love child who supposedly died in infancy. Antonio Cojuangco and his son Antonio Jr. and those who died with them, were listed as having been killed on February 12, 1944 -- wrong day and wrong year!. The mystery of the wrong dates deepen. Outside, at the back of the chapel in an obscure corner where it lay unattended and weathered for the last ten years, was another marker probably intended to replace the marker with the wrong date.

This marker said, “Dr. Antonio C. Cojuangco, + FEB. 13, 1945 A LA EDAD DE 45 AŃOS... “ At last another clue to Antonio's birth! If he was anywhere between 45 years of age to 45 years and eleven months when he died, he must have been born between March 1899 and February 12, 1900. But his Ateneo Annual says he was born in the year 1899; therefore we revise our estimate of his birth to between March 1899 to December 1899, in which case Antonio was conceived nine months before, between June 1898 and March 1899...this is consistent with our previous estimates, well within the time Luna was attending the Malolos Congress and fighting a war.

The love story of Ysidra Cojuangco and Antonio Luna is a story told within the Cojuangco family itself, especially from the side of Tecla Chichioco, Ysidra's sister-in-law and the alleged mother of Antonio Cojuangco. Wouldn't Tecla's relatives at the time notice that Tecla was not at all pregnant before she allegedly gave birth to Antonio??

The oral history came from other sources: the family of Eulalio Saulo who brought the gold of Luna from the Ilocos to Ysidra, especially Encarnacion Saulo-Padilla, who was a friend of Ysidra herself; the family of Tiburcio Hilario who also escorted the gold of Luna from Pampanga to Ysidra; from the leaders of the revolution exiled in Guam (Artemio Ricarte, Apolinario Mabini) who told their fellow exile Pedro Abad Santos who then told his fellow socialist Luis Taruc; Archbishop Florentino Cinense (who speaks Pangalatok) listening to gossip in his own hometown of Cabanatuan.

Emmanuel the para-psychologist was fascinated by the fact that while his other brothers stayed close to the Paniqui hacienda, Antonio, like Luna the cosmopolite, was attracted to the city where he lived on Taft Avenue in Pasay, and was always addressed as Doctor, never Don like the others. He was fascinated by the temperament of Ramon and his son Tonyboy, and that of the legendary Luna, quoting Morgan & King saying that temperament is indeed an inheritable trait.

On our way out of Paniqui, a fleet of cars with screaming sirens met us along the highway. Emmanuel panicked, saying that he is too young to die, not having tasted the joys of marriage. Suddenly with the thought that the fleet of cars may turn back to pursue us, we directed our car out of the road going south to Manila, to the road going east to Cabanatuan where Antonio Luna was assassinated. It was as if some strange spell had fallen over Emmanuel and the rest of us, compelling us almost against our will to the road of Luna's destiny, to Cabanatuan where he spent his last day on earth.

Rushing down the stairs and seething with uncontrollable rage, Antonio Luna was met by Captain Pedro Janolina, who hacked him with a bolo on the temple above the ear. The Kawit presidential guards joined in, firing and slashing at the hapless General, who pulled out his gun and retreated to the streets, bleeding profusely from 30 mortal wounds, and he died, muttering, “Cowards! Assassins!” For an hour his body lay at the plaza under the withering afternoon sun. Then for no reason, soldiers hacked Luna's body with sadistic glee, wrapped him in a tattered mat and brought him inside the church, where a doctor noted that his intestines were falling out of his undershirt. Darkness and bats swooped down to keep him company.

We traced the steps Antonio took in his rendezvous with death. We noted that place where he died, by the side of the church. We asked where his body is buried, and officials said the body was brought back to his home town in Batac in Ilocos Norte. We inquired later from the officials of Batac and were told that the body was buried in Cabanatuan where he was killed. If the body is neither in Cabanatuan, nor in Batac, where is it?? Mr. Pedro Ukong, researcher at the data bank of the National Historical Commission, tells us that there is no record of where General Antonio Luna was buried, and the pertinent documents relating to the relationship of Antonio Luna and Ysidra Cojuangco are missing from the archives. Is it possible that his body was retrieved by his sweetheart Ysidra Cojuangco, and buried with his love child, Antonio C. Cojuangco, who was among those massacred by the Japanese troops in La Salle during the Battle of Manila?? Is it possible that the extra skeleton in the coffin of Antonio C. Cojuangco is not that of his Chinese amah as claimed, but that of his own father? A DNA test of the two skeletons would ferret out the truth and lay this matter to rest. Antonio C. Cojuangco himself died a horrendous death along with his family during the World War II.

Antonio Cojuangco and his family sought refuge in La Salle College trying to dodge American bombs randomly dropped on Manila, when suddenly the Japanese soldiers went on a shooting and bayoneting rampage. He died bleeding of multiple wounds, as did his wife Victoria, his son Antonio Jr., daughter Trinidad, and daughter-in-law Nene de las Alas, the bride of 18 months of survivor Ramon Cojuangco who found himself on that tragic day, a widower, an orphan, and a surrogate father to sister Lourdes.

We all ended up in the deepening dusk on the street where Luna was killed, and on the plaza where he lay dead, hacked and butchered, and we thought of his tragic love Ysidra, and the rivers of blood that flowed from the two other Antonios sprawled in the corridors of La Salle.

It was then that Emmanuel murmured, “Peace be with you, Antonio Luna, you restless tormented soul. You are no longer dead. Your noble blood lives on in the veins of another man, another Antonio.”

Again congratulations, Tonyboy Luna.

(SMART FILE, issue 014 & 015, April, 1994, with data added February 16, 1998)


http://www.philippinefolio.com/contdetail.php?id=8&id_app2=41&id_app3=00369


http://newsbreak.com.ph/index.php?option=com_content&task=view&id=6843&Itemid=88889066

http://newsbreak.com.ph/index.php?option=com_content&task=view&id=6843&Itemid=88889066


Written by Earl G. Parreño
Thursday, 24 September 2009
Neighbors didn’t believe the family made it all from rice milling, trading, and money lending

(Fourth of 9 parts)

At the turn of the century, with the Spanish forces decisively defeated by the Filipino revolutionaries, the first Philippine Republic was established. In ceremonies held at the Barasoain Church in Malolos, Bulacan, on January 23, 1899, General Emilio Aguinaldo was proclaimed president of the republic and the Constitution was approved. Unfortunately, the republic did not live long as the Americans colonized the nation and crushed the republic in a bloody war that lasted until 1902.

The Philippine-American War, which had begun in February 4, 1899, caused unparalleled grief to millions of Filipinos. The US occupation army killed an estimated 200,000 people as the Filipino revolutionaries persisted in their struggle to keep the country free from foreign rule. The economy was in shambles, unable to bear the brunt of the war that began in 1896. The fortunes of many prominent families dwindled but a lucky few—like the Cojuangcos—prospered from it.

By 1901, the Cojuangco landholdings, under the name of Ingkong Jose, Ysidra or Melecio, had extended to other towns in Tarlac like Gerona, Camiling, La Paz and Moncada as well as to the adjoining provinces of Nueva Ecija and Pangasinan. In less than five years after resettling in Tarlac, the Cojuangco family acquired almost 2,000 hectares of agricultural land along the railway in Paniqui, well up to Nueva Ecija and Pangasinan.

The family’s economic bonanza was indeed impressive, especially since it was realized at a time when agricultural production in Tarlac was in a dismal state. Rice fields then were covered by sand left by floods. Government reports during this period indicated that drought and locusts had destroyed many crops. But the fortune acquired by the Cojuangcos had puzzled many of their neighbors even then. They knew the family depended on the income from their rice milling and trading business for the money that they lent out. With the calamities that had plagued rice lands, however, the neighbors wondered, surely the Cojuangco money could not have all come from rice milling and trading alone.

It was all the fruit of hard work, frugality and good business sense, they were told. Still, this explanation did not stop stories from swirling around about the “real” source of the Cojuangcos’ now-fabled wealth. One account, written in 1987 by Hilarion Henares, the newspaper columnist who coined the moniker “Pacman” for Danding, cited a study reportedly made by Carlos Quirino, the former director of the National Library. Henares wrote in the Philippine Daily Inquirer:

General Antonio Luna, as chief of staff of the revolutionary army, had collected a sizeable sum from contributions with which to pay his soldiers. The person who collected for him was Tiburcio Hilario, Pampanga governor. Hilario’s granddaughter, Ambassador Rafaelita Hilario Soriano, relates that her grandfather kept the gold and silver in sacks, including gold plates, chalices, and other church treasures taken from Bacolor, San Fernando, and Guagua.

After losing an encounter at Sto. Tomas, Pampanga, Luna ordered Hilario to bring the valuables to Tarlac, where the revolutionary government planned to establish its capital. General Luna, so the story goes, then turned over the treasure to Ysidra Cojuangco, then an attractive 32-year-old woman, for safekeeping. Then Luna proceeded to Cabanatuan to meet with Aguinaldo, there to be assassinated by [Aguinaldo’s] troops.

Why did the general entrust Ysidra with the treasure? Rumors had it that she was his sweetheart and lover, and he entrusted her to keep the treasure till he returned…
Another account said that General Luna sired Ysidra’s son, who was also named Antonio but was claimed by Melecio and Tecla as their third son. The story goes that during the Philippine-American war, Luna had tried to control the Manila-Dagupan railway since this was a vital facility for communications and transportation, as it was during the earlier war against Spain. It was supposedly in one of Luna’s trips to the north that he met Ysidra, who lived very near the train station. And when the Filipino troops were retreating to the north during the war against the US, he may have renewed his ties with her.

http://newsbreak.com.ph/index.php?option=com_content&task=view&id=6843&Itemid=88889066

Watch out for PIIGS (extra "I"), California, problems with sovereign debt, the use of consumer spending as part of economic growth, reliance on overseas work and exports (dropped around 21 pct previously?), the Baltic Dry Index, interest rates for prime lending rates resetting and problems with commercial real estate (possibly a second and third incoming financial tsunami), the P/E ratios for the U.S. stock market, how various governments are probably no longer following various accounting standards, mark-to-market accounting, job losses (e.g., http://www.speaker.gov/blog/?p=1683 ), the possibility that we're looking at stimulus-backed growth with stimulus funds now running dry, etc.

DTI, Cebu City to pilot RP’s first business registry

Written by Willy Rodolfo III / Reporter
Friday, 05 March 2010 20:25

THE Department of Trade and Industry (DTI) in Central Visayas is set to discuss terms with the Cebu City government on the pilot implementation of the Philippine Business Registry (PBR), an online platform to speed up enterprise registration in the country.

Minerva Yap, PBR project manager for the region, said the program provides for a single online stop for all business registration needs from business name reservation, tax registration up to local business permits issuance. The system creates an easy register online, pay online platform.

“Local government units [LGUs] often wait for a success story before they embrace a new concept so we are working to make a pilot project,” Yap said. “If they [LGU] open their hearts and mind to this system, this will really help clients.”

The system necessitates a shift to simple forms to fill out online and should require changes in the local ordinances covering fee collections in the towns and cities. Revenues generated in the online-payment system will also be shared by all government agencies involved in business registration.

She said it is necessary for the DTI and the local government units to enter into an agreement to cover the program. Yap said the PBR program was created in response to various surveys on businessmen who indicated their difficulty in starting a business in the country.

PBR aims to facilitate a seamless transactional environment for business registration and development across the application systems of various government agencies such as, but not limited, to the DTI, Securities and Exchange Commission, Bureau of Internal Revenue, Social Security System, Philippine Health Insurance Corp. and LGUs.

http://businessmirror.com.ph

Brownouts continue in Luzon
Business Mirror
Written by Paul Anthony A. Isla / Reporter
Friday, 05 March 2010

WITH the Luzon grid continuing to have a generation deficiency of 446 megaWatts (mW), consumers will still have to bear with rotating brownouts, according to the National Grid Corp. of the Philippines (NGCP).

In a powersupply update on Thursday, NGCP said the insufficiency results from the decreased capacity of some plants such as the Aboitiz Power Corp.’s Magat hydroelectric plant, which became nonoperational on Thursday due to low water levels at its reservoir. The Magat usually provides 30 mW to the grid.

Later on Thursday night, however, NGCP issued a statement saying that the Luzon grid had minimal power reserves that reached 83 mW.

The Luzon grid had an available capacity of 6,620 mW while peak demand was estimated to be less than expected at 6,537 mW.

NGCP attributed the improvement in the Luzon grid power supply to the fact that San Miguel Energy Corp.’s Limay power plant (Block B) had started to generate 200 mW, later seen rising to 270 mW within the day.

NGCP said technical problems with equipment caused the Limay plant capacity to decline early Thursday. NGCP added that CBK Power Co.’s Kalayaan hydro power plant currently has one operational unit providing 170-mW to the grid.

And during the evening peak hours, NGCP said another unit was expected to be used to increase the available capacity.

NGCP said the contingency (another unit of Kalayaan running) is still dependent on whether the elevation at Caliraya Lake will remain at 286.08 meters, the minimum requirement to run at least two units.

NGCP added that AboitizPower Corp.’s Magat hydro power plant generated electricity even with a limited capability of only 20-mW.

The NGCP said only a unit of the CBK Power Co. Kalayaan hydro-electric plant is expected to generate 152 mW Thursday, another unit may come on line a day later and the 3rd is unavailable due to low elevation at Caliraya Lake.

In the Visayas grid, the power plants expected to go online Thursday were Panay Diesel Power Plant 1 unit, Panay Diesel Power Plant 3 unit, Cebu Diesel Power Plant 1 unit, Power Barge 101 and Power Barge 102.

The Visayas grid has an available capacity of 1,238 mW with demand expected to reach 1,198 mW for a supply surplus of 40 mW.

The Mindanao grid will continue to experience generation deficiency of up to 650 mW because of a demand of 1,361 mW against an available capacity of 711mW.

The NGCP attributed the shortfall in the Mindanao grid to the limited generating capacities of hydroelectric power plants from due to low water inflow to their reservoirs brought about by El Niño.


_______________________



Power-crisis declaration OK’d
Business Mirror
Written by Mia M. Gonzalez / Reporter
Friday, 05 March 2010

PRESIDENT Arroyo has finally adopted the recommendation of Energy Secretary Angelo Reyes to declare a power crisis in Mindanao and address the problem through Congress-approved measures.

The President made the announcement in an ambush interview at the Palace Reception Hall on Thursday, after the awarding ceremony for The Outstanding Philippine Soldiers (TOPS).

“I’m adopting his recommendation,” she said, when asked about the status of the recommendation of Reyes related to the power-supply problem in Mindanao.

Reyes had earlier clarified that he is not proposing the grant of emergency powers to the Chief Executive as provided in the Constitution, but only that she invoke Section 71 of the Electric Power Industry Reform Act of 2001 (Epira).

Invoking the Epira provision would require congressional approval to quickly increase Mindanao’s generating capacity through, among others, the lease or purchase of generator sets (gensets) and barges, and the negotiation of short-term power-supply contracts.

The El Niño weather phenomenon has reduced Mindanao’s dependable generating capacity from 1,423 mW to 971 mW, which is 145 mW below the peak demand of 1,116 mW, causing power outages there.

Reyes is recommending short-term measures estimated to cost between P8 billion and P10 billion, among them the lease-rental of 160-mW gensets; the operation and maintenance of Alsons Corp.’s 30-mW Iligan Diesel Power Plant 1 (IDPP); and an operation and maintenance agreement with Alsons Corp. for the 70-mW IDPP2.

He is also proposing contracting an additional 5 mW from Southern Philippines Power Corp. which is jointly owned by Aboitiz Equity Ventures, Conal Holdings Corp., and Tomen Power Corp. of Singapore, under an existing contract.

Reyes had said that such measures would either be subsidized by the government if it can afford it,  or passed on to consumers.

Deputy Presidential Spokesperson Ricardo Saludo said in a news briefing that the  Energy Regulatory Commission (ERC) must  “act on pending cost-recovery petitions, so that affected generating companies can cover higher fuel expenditures and thus ensure uninterrupted fuel deliveries.”

Saludo also told reporters that based on a Department of Energy (DOE) report to the President, “power supply in Luzon and the Visayas will reach sufficiency this month, with the Malampaya gas being restored after maintenance, and modular generating sets to be deployed for Panay.”

Meanwhile, Mala-cañang announced that Mrs. Arroyo will switch on the first of three units of the 246 MW of the coal-fired power plant of Cebu Energy Development Corp. (CEDC) in Toledo City on Friday.

”The switch-on ceremony signals the full operations of the 82-mW first unit and comes at a time when Cebu and other provinces in the region are experiencing rotating brownouts lasting up to two hours a day, causing work stoppages and inadvertent loss of income for businesses and individuals,” Malacañang said.

The brownouts were partly caused by the shutdown for maintenance of the 60-mW Unit 1 of the Mahnagdong geothermal plant in Leyte and the 50-mW Cebu Thermal Power Plant 1.

CEDC’s $450-million or roughly P3-billion coal-fired power plant is a joint venture among Global Business Power Corp., the power arm of the Metrobank group, Formosa Heavy Industries Corp., Aboitiz Power Corp. and Vivant Power Corp.

Fault discovered beside Bataan Nuclear Power Plant
Business Mirror
Written by James Mendoza / Researcher
Friday, 05 March 2010 21:54

Researchers at the National Institute of Geological Sciences (NIGS) in the University of the Philippines have discovered a thrust fault less than 200 meters southwest of the derelict Bataan Nuclear Power Plant (BNPP).

“It’s at the tip of Napot Point,” said NIGS professor Alfredo Mahar Francisco Lagmay. “At least from the papers I have been researching on, I have never seen a description of this fault.”

According to Lagmay, he and his team have been scouting for exposed faults such as this one for the past few months through maps and satellite images.

He said the coastline where the fracture has been found is usually inaccessible owing to tides. But these same tides eroded the rocks that may have concealed the fault from previous investigators.

Lagmay said the displacement is recognizable, owing to the presence of an area of highly strained rocks called a shear zone. He showed photographs showing rocks of the upper block bending downward, inferring an upward thrust of the strata.

Lagmay noted that such formation cannot be made unless there is movement of the block at some point in the past.

Lagmay said the fault trends north-east, vanishing at the southwest flank of Mount Natib. “The trend, when projected, does not really fall directly underneath the reactor site but is within 200 meters.”

Lagmay suspected that the fault at Napot Point is an extension of the longer Lubao Lineament, which runs through the Central Luzon Basin and “appears to terminate at the northeastern flank of Mount Natib.”

Whether fault is active isn’t known yet

Lagmay noted, however, that they have not yet established if the fault is active. To do this, the age of the rocks where the fault cuts through must first be determined.

“If the rocks are less than 10,000 years old, then the fault that cuts through them must be younger. If the fault is younger than 10,000 years, then it’s active,” Lagmay explained.

Lagmay said the next step is to collect datable samples in order to determine its age.

The Philippine Institute of Volcanology and Seismology reported in April last year that they found “no evidence to support the presence of an active fault beneath the nuclear reactor building of the BNPP or within the BNPP area.”

"Guns and goons"

http://www.economist.com/displaystory.cfm?story_id=15213347

Linked in:

http://www.economist.com/countries/philippines/

Also, keypoints in the "Global Outlook Summary":

http://countryanalysis.eiu.com/global_outlook.html

Related:

"Scams: Pigeon Fever"

http://www.cbsnews.com/video/watch/?id=6207614n

"Wall Street's Bailout Hustle"

http://www.rollingstone.com/politics/story/32255149/wall_streets_bailout_hustle/

Poverty to rise to 35%-38% due to El Niño, typhoons, food crisis
By Cai U. Ordinario, Business Mirror

MANILA, Philippines - Despite the National Economic and Development Authority’s (Neda) expectations that economic growth will be within targets, economists said the government still has to deal with a bigger problem—increasing poverty as a result of the difficult years from 2008 to 2010.

With all the developments that happened in the past two years and the El Niño this year, Southeast Asian Regional Centre for Graduate Study and Research in Agriculture (SEARCA) Director Dr. Arsenio Balisacan believes the food and fuel crisis in 2008, the global economic crisis and the twin typhoons Ondoy and Pepeng in 2009, and the El Niño weather phenomenon this year will likely send millions into poverty or deeper into poverty this year.

Balisacan said that even if the 2009 poverty statistics will not include the effects of the El Niño, poverty will likely increase by around 2 percentage points to 35% from 2006’s 33%. But, when the effects of the El Niño are included, poverty could increase by 3 to 5 percentage points, or up to 38% this year.

“I expect poverty to have increased in 2009. In 2008 we have the impact of the food prices and food prices have not really come down so we are still carrying that and then came this 2009, low growth, calamities and food prices have not gone back to 2006 [levels]. I would expect [poverty to increase] by about 3 to 5 percentage points from the 2006 figures,” Balisacan told the BusinessMirror.

Balisacan said the El Niño may cause agriculture growth to contract by as much as 5% this year. However, this may not have a big impact on growth since, he said, agriculture only accounts for around 17% of gross domestic product (GDP).

He said that even as early as February, there are indications that the El Niño will continue to have worse effects, especially since it is expected to last until May. This will not bode well for agriculture growth in the first half. Balisacan expects delayed planting to possibly extend until the second half.

The SEARCA official said the effects of Pepeng, which was a stronger typhoon than Ondoy, ravaged the Philippine countryside affecting farms and Filipinos engaged in agriculture. In fact, he said that about one-third of the entire labor force is engaged in agriculture.

“Even if agriculture growth declines, if services would grow [GDP will be in good shape]. The only problem is poverty, because the bulk of your poverty is [composed of] poor persons [who] are dependent on agriculture. That is the problem,” Balisacan said.

For his part, former budget secretary Dr. Benjamin Diokno said with all the developments after the 2006 poverty data was collated, poverty could increase by around 1 to 2 percentage points to around 34% to 35% this year.

Diokno said the El Niño may cut around 2.5 percentage points from economic growth. With this, he said he expects economic growth to decline to around 2.8% to 2.9% this year from his initial forecast of 3%.

He said that while this is still within the government’s 2.6% to 3.6% growth estimate, the poor will certainly have a more difficult time coping considering that 60% of their budget is spent on food.

Diokno said El Niño and the fact that prices have not gone back to pre-food and oil crisis levels will send millions more into poverty. He said that while the government expects inflation to remain stable at 4.5% this year, it is likely that food inflation could reach 10% to 12% due to the El Niño.

The former government official added that, traditionally, inflation in Areas Outside the National Capital Region, or the countryside, is usually higher than in Metro Manila.

“Poverty is more serious in the countryside. Higher inflation will decrease the purchasing power of the poor,” Diokno said in an interview.

Further, the El Niño will also affect utility prices. Already, there is talk of power outtages to conserve energy and possible increases in electricity prices.

“The El Niño will not only affect agriculture but also power. If that is the case, you cannot pay, and they will cut off your power supply. This means, consumers will have to scrimp on other things like going to the mall, traveling, going to the movies. This, in turn, will affect employment,” he added.

Other factors include the effects of typhoons Ondoy and Pepeng, which easily affected 63% of the entire Philippine economy. Diokno said that the NCR already accounts for one-fourth of the economy and, with the typhoons affecting Luzon and Metro Manila, this will translate to around 63% of the economy.

Poverty statistics

National Statistical Coordination Board (NSCB) Secretary-General Dr. Romulo Virola admitted that to date the El Niño is the single biggest factor that will negatively affect the 2012 survey round.

The NSCB releases poverty statistics every three years. The last poverty statistics was collected in 2006 and released in 2008, while the next set of data collected in 2009 is slated to be released this year. The poverty data for 2010 will be included in the 2012 survey round to be released in 2013.

Virola said that based on the 1997 to 2000 survey, the El Niño weather phenomenon and the Asian financial crisis in 1998 both severely affected poverty in the Philippines during the period.

With this and the advisory of the Philippine Atmospheric, Geophysical and Astronomical Services Administration that the dry spell this year will be worse than what happened in 1998, Virola said poverty incidence is likely to increase.

However, Virola said the numbers may not be as severe as what economists project. He said the El Niño will not be included in the 2009 survey round, while the 2012 data will likely see some improvement in the lives of Filipinos affected by the dry spell.

“Even with the El Niño, poverty incidence may not be that high because election spending will also provide a stimulus,” he said. Virola added that the exact figures will also depend on the measures to be implemented by the next administration.

In 2006 poverty incidence increased to 26.9% for families in 2006 compared with 24.4% in 2003. This is lower than the 27.5% poverty incidence in 2000.

In terms of poverty incidence among population, out of 100 Filipinos, 33 were poor, or 33% in 2006, compared with 30 in 2003.

Investors 'flocking to the Philippines':cheers:

Thursday, March 04, 2010
http://www.themovechannel.com/news/3f01c9c7-914a/
Catherine Deshayes

According to latest figures released by The Global Property Guide, the Philippines has ranked an impressive third place as a destination in which to invest in property with annual yields quoted at 10.99%.

Located in south east Asia, the Philippines has succeeded in beating off most other global property markets ranking third only to Peru and Indonesia with the impressive 10.99% annual yields being calculated on average yields for 120 sq m properties.

So why are investors flocking to the Philippines?

1.Rapidly developing nations such as China are located close by and with new direct flights being regularly introduced the Philippines is becoming a tourist retreat for Asian nationals

2.The Philippines economy is enjoying a boost as the nation becomes a preferred business outsourcing base particularly for offshore call centres.

3. The Philippines government is taking a long term view towards economic growth and stability with foreign direct investment encouraged and improvements to internal infrastructure underway.

4. The close regulation on land use should ensure that this country remains unspoiled and never become a Costa del Sol horror story.

5. The cost of purchasing property is relatively inexpensive compared to the West.

Steven Worboys, Managing Director of Experience International which specialises in emerging real estate, comments:"We are finding a more discerning purchaser considering the Philippines. Thailand and Malaysia have always been popular locations for investors in South East Asia but value for money and guaranteed rentals in the Philippines has encouraged a great deal of interest to these relatively unknown cluster of islands.

"The Philippines is becoming a very popular tourism destination with the Australian market due to its proximity and has always been a hotspot for the American tourists however the expatriate community based in south east Asia are now visiting in their droves and often purchase their very own a slice of paradise".

Source: www.experience-international.com

Related:

"What is the difference between a blackout and a brownout?"

http://wiki.answers.com/Q/What_is_the_difference_between_a_blackout_and_a_brownout

SMC to build 300MW coal-fired plant in Mindanao

By Amy R. Remo
Philippine Daily Inquirer
First Posted 13:04:00 03/05/2010

Filed Under: business, Electricity Production & Distribution, Energy & Resources, Alternative energy, Energy

TOLEDO CITY, Cebu – Diversifying conglomerate San Miguel Corp. plans to put up a 300-megawatt minemouth coal power plant in Mindanao, a move that can help shore up power supply in the island over the next few years.

At the sidelines of the Cebu Energy Development Corp. switch-on ceremony here, San Miguel president Ramon S. Ang told reporters that the company was putting up a greenfield power plant following the acquisition of a coal mine in General Santos. (A greenfield is an engineering jargon that refers to a project facing no constraints imposed by prior work.)

Although he did not disclose San Miguel's planned investment for the facility, Ang said the company would have to invest as much as $1 million to produce one megawatt from coal resources. This meant that for the initial 300-MW project, San Miguel would need to invest some $300 million or about P13.5 billion.

Ang said the coal mine has enough reserves that could enable the company's planned power facilities to provide the Mindanao grid as much as 2,000 MW.

Ang said that company, which for now would pursue the project on its own, has planned to put up the power plants in phases, each of which might have about 150 MW to 300 MW. The pace and timetable of the planned power projects, he added, would be based on the projected demand in Mindanao.

As of Friday, the National Grid Corporation of the Philippines said the Mindanao grid had a power supply deficit of 700 MW, amid the El Niño weather disturbance that has been drying up water reservoirs, thus impairing the operations of the hydropower facilities there.

Mindanao sources 53 percent of its electricity requirements from hydropower sources.

“Within this year, we plan to start the project. That's a greenfield facility so it will take about only 24 months to construct.... We're still conducting the study for that,” he added.

Ang, however, declined to give further details as the company is currently in the thick of preparing applications for a coal operating contract, environmental compliance certificate, among others.

Even with the low electricity prices in Mindanao, Ang said the company would still pursue the coal project, as an act of social responsibility in helping the country secure its electricity supply.

San Miguel has been aggressive in expanding its power business, following the acquisitions of various state-owned power plants and independent power producer administrator contracts in 2009, including the 540-MW Limay combined cycle power plant in Bataan and the contracted capacity for the 1,200-MW Sual coal plant in Pangasinan.

For this year, the conglomerate is bidding for the 246-MW Angat hydroelectric power plant in Bulacan and the IPPA contract for the 1,200 Ilijan natural gas facility in Batangas.

Petron plans $600-M expansion of refinery in next 4-5 yrs

abs-cbnNEWS.com | 03/05/2010 12:16 PM

MANILA, Philippines - Top Philippine oil refiner Petron Corp plans to expand its refinery in the next 4 to 5 years, and will raise funding for the $600-$700 million project, the company president said on Friday.

"Petron Corp will be spending between $600-$700 million for oil refinery expansion over the next 4-5 years", Eric Recto told Reuters.

Recto said the company had earmarked P15 billion ($325 million) for its spending budget this year.

Petron's announcement comes after Pilipinas Shell Petroleum Corp encountered problems regarding its own refinery.

Only Shell and Petron have refinery operations in the country. The 2 import oil from the global market and process them in the refinery plants to produce oil-based products for the transportation and other industries.

Shell and the Bureau of Customs had legal tussles about alleged P7.3 billion worth of back taxes for Shell's importation of its raw materials. Business groups have slammed the Customs' actions citing this would discourage foreign investments in the manufacturing sector. - with a report from Reuters
as of 03/05/2010 1:35 PM

^^I like all of these investment storm....More! More!

Petron plans $600-M expansion of refinery in next 4-5 yrs

abs-cbnNEWS.com | 03/05/2010 12:16 PM

MANILA, Philippines - Top Philippine oil refiner Petron Corp plans to expand its refinery in the next 4 to 5 years, and will raise funding for the $600-$700 million project, the company president said on Friday.

"Petron Corp will be spending between $600-$700 million for oil refinery expansion over the next 4-5 years", Eric Recto told Reuters.

Recto said the company had earmarked P15 billion ($325 million) for its spending budget this year.

Petron's announcement comes after Pilipinas Shell Petroleum Corp encountered problems regarding its own refinery.

Only Shell and Petron have refinery operations in the country. The 2 import oil from the global market and process them in the refinery plants to produce oil-based products for the transportation and other industries.

Shell and the Bureau of Customs had legal tussles about alleged P7.3 billion worth of back taxes for Shell's importation of its raw materials. Business groups have slammed the Customs' actions citing this would discourage foreign investments in the manufacturing sector. - with a report from Reuters
as of 03/05/2010 1:35 PM

Good news!!:cheers::cheers:

^^

Unlike Canada which most of the time has Cash Surplus(well maybe except Ontario.. LOL), the Philippines always incur budget deficits. DEBT SERVICING FOR THE PHILIPPINES is not just HEAVY.. IT IS REALLY REALLY VERY HEAVY...it eats up half of the national governments budget almost every year.. this year was an exception, largely because of the Humongous RECORD deficit that we have.. and the government decided to use the money for pump priming instead of debt servicing....

my other point is..aside from corruption, this issue is one of the very reasons why development is slow in the Philippines.. mainly because the government never had enough cash, if not enough to spend on development...

Debt is debt, whether Phil, Greece, Canada, US. Canada had budget deficits in the early '90s, until the finance minister sorted that out (lot of service cutbacks etc), and started paying debt. Since the new govt, who had been doling out tax breaks, we're back into deficit.

Whether one agrees with PGMA's govt I think she has done what she could that the Phil is holding up much better now (I think). That is no mean feat. We may not agree/understand what she was doing, but she had 2 focus: macro and micro. Whether she succeeded is up to anyone's interpretation. Ramos did the same, but the Asian crisis, and Erap crisis sort of put the country back again.

No one wants to go back to the post people power years, where 35% debt servicing under Cory Aquino. Don't wonder why no infrastructures were built then, she was under the thumb of the IMF.

^^ well i do agree with most of what you said.. coz i am not even criticizing GMA, coz i believe she has done a good job.
I would just like to make a point on how the debts has affected the social welfare of the country for the past decades.. and as a result has made the poverty problem even worse..

having a sustainable DEBT to GDP ratio only means you are capable to pay your debts.. which is the only concern of Lenders..
it doesn't necessarily mean that you will have enough cash for yourself to spend on..
It is a good RATIO to have.. only to keep your lenders HAPPY.. and minimize the cost of insurance for defaults.
that is why, in some cases, i would want to use the National budget to debt servicing ratio.

i am just hoping.. that in the near future.. the Philippines will be ABLE, to pay debts without putting peril to social development in the country at the same time. I mean, the country shouldn't work just to pay off debts... they also have other important needs as well.

after all.. we don't work just to pay banks.. we also work to live.. and to enjoy our fruits of labor..
in the case of the Philippines, we have been a slave of debt for the longest time..

the Philippines can pay off those debt if it uses its foreign reserves to pay for it or use its gold reserves.

That debt is very manageable. Its like an employee having 100k peso loan, when this employee is earning 200k per year, while having parents with 2 million peso house and lot.

the Philippines can pay off those debt if it uses its foreign reserves to pay for it or use its gold reserves.

That debt is very manageable. Its like an employee having 100k peso loan, when this employee is earning 200k per year, while having parents with 2 million peso house and lot.

It doesn't work that way. The gross international reserves of a nation are the ones that the international financial creditors are watching, it reflects the ability of the nation to pay for its loans.

Btw, check with the BSP, baka peke na lang yung mga ginto na nasa vault. :D

the Philippines can pay off those debt if it uses its foreign reserves to pay for it or use its gold reserves.

That debt is very manageable. Its like an employee having 100k peso loan, when this employee is earning 200k per year, while having parents with 2 million peso house and lot.

sadly the Philippines GDP is not really the actual Philippines national budget.... not even near the amount..
if it is.. i could say your analogy is true.
but no.. so i don't agree with your analogy this time.

for the government to have more money to spend on important projects.. it's either they improve their tax collections(not happening).. or reduce debt drastically(hmm..).. but yea Philippine debt is still "manageable".. we can still manage it, in exchange we have to sacrifice social projects and critical infrastructure plans which are badly needed...it's not like we'll die without this, right? maybe?

damn this World Crisis.. we were an inch close to having a balanced budget... o well, let's just wait for the next administration how well it will do..

Petron investing P15 billion this year

By Zinnia Dela Peña
(The Philippine Star)
Updated March 06, 2010 12:00 AM

MANILA, Philippines - Oil refining giant Petron Corp. has earmarked P15 billion this year for the construction of a petroleum coke power plant and the continued expansion of its retail network.

In a press briefing yesterday, Petron president Eric Recto said P4 billion of the P10 billion that was raised from its recent preferred share issue will be allocated for the proposed 70-megawatt power plant slated for completion in the first quarter of 2012.

The power plant, which will be put up within the company’s refinery compound in Limay, Bataan, is estimated to cost P10 billion over two or three years and would result in savings of over P3 billion annually for two years.

“Our plan is to generate our own power, and if in the process we have excess, then we will sell if there are takers. But this should not be interpreted as we are going into power generation. It’s incidental that we’ll be selling power to the grid,” Recto said.

Petron has amended its articles of incorporation to include electric power generation and sale in the company’s primary purpose. The move is in line with plans to be a self-generating firm and to produce the power needed for its operations.

To ensure its growth momentum, Petron is allocating P1 billion annually to beef up its domestic service station network, which currently stands at 1,463, by adding more than 1,000 new outlets across the country over a five-year period.

Petron has also earmarked P400 million for the construction of 153 new convenience stores to add to its existing network of 51.

The company successfully raised P10 billion from a preferred share issue which was two times oversubscribed on strong demand from institutional and retail investors.

“The strong response to our issue reflects the trust and confidence of the investment community in the viability of Petron over the long term. It likewise confirms the public’s belief in the company’s undisputed market leadership backed by the biggest refining capacity in the country as well as an extensive distribution and service station network, sound financials and growth potential, including numerous synergies with the San Miguel Group,” Recto said.

“Now we will be able to augment this with traditional funding from banks and lenders to fund the rest of the capital requirements,” Recto said.

Petron has a capacity of 180,000 barrels per day and supplies nearly 40 percent of the country’s fuel requirements.

Company officials earlier said Petron was expected to chalk up a net income of P4.2 billion this year, a reversal of the P3.98-billion loss a year earlier on improving sales.

“I am confident that the results would have negated the fairly negative results in 2008,” Recto said.

The loss was a result of thinning sales and a volatile commodities market amid a global financial downturn.

Recto said the company remains interested in using its gas stations as base for other non-fuel businesses, which include financial services such as remittances and savings.

PEZA exports climb 54% in January

By BERNIE CAHILES-MAGKILAT
March 5, 2010, 4:09pm
Manila Bulletin

Exports of economic zone enterprises went up 54 percent in the first month of the year compared to January 2009 while employment figure was also up 11.3 percent, indicating a strong economic recovery in the country's economy, the Philippine Economic Zone Authority reported.

PEZA Director-General Lilia B. de Lima said in a report to Trade and Industry Secretary Peter B. Favila, who is also chairman of PEZA, that total exports in January reached $3.133 billion in January from $2.034 billion in January 2009.

Employment also improved by 11.3 percent to 637,759 from 572,836 in January last year.

According to De Lima, the privately-owned economic zones accounted for the biggest chunk with $2.183 billion worth of exports in the first month of the year, reflecting a 56.898 percent increase over $1.391 billion exports in January 2009.

The government-owned ecozones in Cavite, Bataan, Mactan, Cebu and Baguio contributed a total of $652.556 million in exports or 59.830 percent higher than the January 2009 exports of $408.281 million.

http://i828.photobucket.com/albums/zz203/crisostomosantos33/luna_small.jpg

Batbat ang nakaraan ng mga kuwento ng pagtataksil ng mga tao sa kanilang sinumpaang pag-ibig – sa bayan man o sa kasintahan.

Ganito ang kuwento ng trahedyang pag-ibig ni Antonio Luna, dakilang heneral ng Digmaang Pilipino-Amerikano, matinitk na taktisyan at tahasang anti-Amerikano. Dahil bukod sa pinatay siya mismo ng kapwa Pilipinong mga sundalo, ipinagkanulo din ng naging kasintahan ni Luna ang tiwalang ipinagkaloob sa kanya ng heneral.

Metanoya

Sa unang bahagi ng himagsikan laban sa mga Espanyol, hindi lumahok si Luna sa Katipunan. Wala siyang tiwala na kaya nang magsulong ng isang armadong rebolusyon ang mga Pilipinong walang pag-aaral at walang pagsasanay sa digmaan. Kinundena pa niya ang rebolusyon at hinikayat ang mga nag-alsa na sumuko sa mga Espanyol.

Ngunit nang ipatapon siya ng mga kolonyalista sa Espanya dahil miyembro raw siya ng Katipunan, nagbago ang pagtingin niya sa rebolusyon. Isinumpa niya ang lahat ng kanyang nasabi o ginawa laban sa Katipunan. At lumahok na siya sa ikalawang bahagi ng himagsikan.

Nang itatag ang Kongreso ng Malolos noong Setyembre 1898, hinirang ni Aguinaldo si Luna bilang isa sa mga kumisyuner. Ngunit nahati ang Kongreso sa paksiyong nagtaguyod ng agad na kalayaan at pakikidigma laban sa bantang kolonyalismong Amerikano, at sa mga ilustradong nakipagsabwatan sa bagong mga mananakop na nagpoprotekta sa kanilang kapangyarihan sa ekonomiya at pulitika. Dahil sa paninindigan ni Luna laban sa mga Amerikano, pinag-initan siya ng mga lider ng Malolos. Kasama rito sina Aguinaldo, Felipe Buencamino, at Pedro Paterno, na nais makipagkasundo sa mga mananakop.

Nawawalang Anak

Ngunit bukod sa panunuligsa sa mga konserbatibo’t mapagkanulo, maraming historyador ang nagsasabi na may iba pang kuwento ang pamamalagi ni Heneral Luna sa Malolos noong 1899.

Nasa Malolos ang dating tinitirhang mansiyon ng mga Cojuangco. Pagbukas ng Kongreso ng Malolos, sinasabing nakitira sa mga Cojuangco ang ilang prominenteng lider ng gobyerno, kabilang na si Luna. Dito nagsimula ang kuwento umano ng pag-iibigan nina Luna at Ysidra Cojuangco, matriyarka ng angkang Cojuangco sa Paniqui, Tarlac.

Nagbunga, diumano, ng isang anak ang pag-iibigan nina Luna at Cojuangco.

Ayon sa pananaliksik ni Hilarion Henares, dating propesor at kolumnista, nilisan ng mga Cojuangco ang Malolos patungong Paniqui, Tarlac upang makatakas sa kahihiyang dulot ng pagkabuntis diumano ni Ysidra na walang kilalang asawa.

Ang naturang “anak sa pagkakasala,” ay nabuhay at ipinaampon daw sa kapatid ni Ysidra na si Melecio. Ayon pa kay Henares, marami ang ebidensiya na si Antonio Cojuangco Sr., lolo sa tuhod ni Tonyboy Cojuangco (asawa ng artistang si Gretchen Barretto), ang siyang nawawalang “anak sa pagkakasala” ng dalawang magkasintahan.

Nawawalang Pera

Sa huling taon ng buhay ni Heneral Luna, ipinatago diumano niya sa kasintahang si Ysidra ang mga kayamanan ng rebolusyonaryong gobyerno. Ayon sa historyador na si Alfredo Saulo:

The convoy of carts loaded with a huge amount of Spanish gold and silver coins seized from local treasuries in the Ilocos region, leading this convoy through forested areas up to the final destination in Paniqui, Tarlac, in the house of Ysidra Cojuangco, girlfriend of General Antonio Luna.
Nang paslangin si Luna noong Hunyo 5, 1899 sa Cabanatuan, sa utos diumano ni Heneral Aguinaldo, naiwan kay Ysidra ang mga ginto ng rebolusyon. At dahil hindi hayagan ang relasyon ng magkasintahan, hindi alam ng karamihan sa mga lider kung saan o kanino iniwan ni Luna ang mga ginto.

Hindi na isinauli ni Ysidra ang mga ginto.

Malaki ang ebidensiya, ayon kay Henares, na ang mga gintong ipinatago ni Luna kay Ysidra ang dahilan ng biglang pagyaman diumano ng mga Cojuangco. Matagal na ring alam ng mga viejas familias sa Gitnang Luzon na sa rebolusyonaryong gobyerno ni Aguinaldo at ng Katipunan nanggaling ang kayamanan ng pamilyang Cojuangco.

Upang itago raw ang tunay na pinagmulan ng kanilang yaman, sinasabing ipinabura ng pamilyang Cojuangco ang lahat ng rekord na maaaring magpatotoo na anak nga ni Heneral si Antonio Sr. Nawawala ang kanyang mga rekord ng pagkabuhay sa mga simbahan ng Malolos at Paniqui, at maging sa Ateneo de Manila, kung saan siya nag-aral.

Kung paniniwalaan ang historyador na si Dr. Vivencio Jose, pataksil na ipinapatay ni Aguinaldo si Luna. Maingay at delikado kasi siyang katunggali hindi lamang para sa kapangyarihan ni Aguinaldo, kundi ng mismong mga mananakop na Amerikano. Isang malaking kawalan sa mga nakikidigmang Pilipino ang pagkamatay ni Luna. Malaking kataksilan din ang di pagsauli diumano ng kasintahang si Ysidra ng mga gintong malaki pa sana ang maitutulong sa rebolusyon.

Kataksilan at kasinungalingan diumano ang naging pundasyon ng kayamanan ng mga Cojuangco, tulad din ng kataksilan at kasinungalingan na naging pundasyon ng Republika ni Aguinaldo.

Sanggunian:

Agoncillo, Teodoro. “Antonio Luna: The hero who never won a battle.” sa Weekend, 8 Hunyo 1993.

Henares, Hilarion Jr. “Antonio Luna’s Missing Descendant.” sa Smart File 14-15, 1993.

Jose Vivencio R. “The Rise and Fall of Antonio Luna.” Quezon City, UP, 1972.

Some of Henares’ claims can also be read here and here.


http://krguda.wordpress.com/category/history/

Forex reserves hit all-time high of $45.71B

By Michelle Remo
Philippine Daily Inquirer
First Posted 20:37:00 03/05/2010

THE BANGKO SENTRAL NG PILIpinas Friday reported that the gross international reserves (GIR), the country’s foreign currencies and gold managed by the central bank, rose to another record $45.71 billion as of end-February from $45.59 billion in of end-January.

The latest GIR level was also higher than the $38.9 billion posted in the same month last year.

In a statement, the central bank said the increase in the GIR was a result partly of its foreign exchange operations and income from its investments in instruments issued from abroad.

The BSP purchases dollars from the foreign exchange market from time to time, specifically to temper a sharp appreciation of the peso, the strengthening of which since the start of the year has been worrying exporters. Central bank officials said the monetary authority has been intervening in the foreign exchange market to ease the rise of the peso.

The foreign exchange reserves were also boosted by the increase in the prices of gold in the international market, according to the central bank. The country’s gold holdings were valued at $5.58 billion as of end-February, up from $5.4 billion as of end-January.

The GIR indicates a country’s capacity to engage in commercial transactions with the rest of the world, largely importation of goods and services and payment of debts denominated in foreign currencies.

According to the central bank, the latest GIR was enough to cover 9.28 months’ worth of imports, up from 9.25 months registered as of end-January. The latest GIR was also equivalent to 4.5 times the country’s debts maturing within the short term.

Other usual sources of inflows that boost the GIR are remittances from Filipinos overseas, export income, foreign direct investments, foreign portfolio investments, and foreign currency-denominated borrowings.

On the other hand, things that reduce the GIR include import payments, settlement of external debts and investments offshore, among others.

Central bank officials said the fact that the country’s GIR continued to rise, even during the height of the global crisis last year, showed that the Philippines’ external payments position was virtually unharmed by the turmoil.

They said that the external liquidity of the Philippines was one of the sources of optimism of foreign investors and creditors, and the international financial community in general.

Yes, they have the highest plateau railway line in the world.

Anyway, the future of The Philippines is now on the hand of the youth.

What the country need is equal distribution of careers and courses taking up for college.. From how it see it, the majority of youths are either taking up nursing just to get a good nursing career abroad or work in BPO companies.

There should be a significant percentage of youths in every field like in business, finance, law, logistics, agriculture, the arts/entertainment, public services, etc.

I simple agree. Lahat yata gustong maging nurse. Walang gaanong chemist, agriculturist, (yung mga soil experts), biologist etc. Lahat nagna-nars.

Latest numbers:

http://www.nscb.gov.ph/sdds/nsdp.asp

For debt, note not only debt vs per capita income (e.g., ave. monthly wages) but also balance of trade (low or negative), economic growth (pref. three times higher than birth rate, or around six pct or better), and the economic situation of source countries of investors.

It should also be considered that we've been looking at something like three or four decades of chronic trade deficits, rice imports since '85, sugar imports since '00, a significant dependence on overseas work (which is dependent on economic growth of hiring countries), etc. And if these host countries are now facing increasing unemployment....

Drought perils rice terraces
By Charlie Lagasca (The Philippine Star)
March 07, 2010 12:00 AM
http://www.philstar.com/Article.aspx?articleId=555676&publicationSubCategoryId=63

Banaue town in Ifugao province, where the famous rice terraces are located, has been placed under a state of calamity due to the continued dry spell caused by the El Niño phenomenon that has dried up rice fields.

“The terraces have practically dried up to the extent that even a slight rain could cause landslides,” said Banaue Mayor Lino Madchiw.

The dry spell has affected thousands of hectares of agricultural crops and livestock nationwide, and the drought now threatens Banaue’s world famous rice terraces, leaving the paddies parched and highly vulnerable to erosion.

The drought has damaged P65 million worth of palay, vegetables, fruits, and livestock.

Because of the drought, large earthworms have penetrated the paddies and endangered the terraces, which is a World Heritage Site and one of the country’s top tourist attractions.

The perceived lack of interest among young Ifugao natives to tend to the centuries-old terraces has aggravated the degradation of the terraces, sometimes referred to as the “Eighth Wonder of the World.”

The terraces begin at the base of the mountain range and extend several thousand feet upwards.

Two of the terrace clusters in Banaue, namely Bangaan and Batad, have been inscribed by the United Nations Educational, Scientific and Cultural Organization (UNESCO) as a World Heritage Site. International experts have been sent by UNESCO to Banaue to help locals preserve the terraces.

Local officials of several towns in Luzon and the Visayas also plan to declare a state of calamity in their areas after agricultural crops and livestock have been wiped out by the current dry spell.

Rep. Anna York Bondoc of the fourth district of Pampanga reported yesterday that eight towns in her province are expected to declare a state of calamity in areas affected by the drought that threatens 14,000 hectares of rice land where irrigation water has been cut off.

President Arroyo is set to declare a power crisis in Mindanao and implement emergency measures costing almost P10 billion after the drought affected the hydroelectric power stations in the region.

The weather bureau reported that a moderate El Niño still prevails over the equatorial Pacific and may last until June.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) confirmed that 15 more provinces in Luzon have been experiencing a dry spell in the past three months.

Pagasa said Ifugao, Abra, Kalinga, Apayao, Mt. Province, Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Bataan, Zambales, Cavite, Laguna, and Rizal have experienced no rains in the past three months.

Pagasa administrator Prisco Nilo said the provinces of Nueva Vizcaya and Quirino are now under drought conditions.

Nilo warned Metro Manila residents that the effects of El Niño could become critical starting this March and could last until May.

“If we don’t conserve water, we may face water shortage in Metro Manila,” said Nilo, adding that the water level is near critical at Angat Dam in Norzagaray, Bulacan.

The Banaue municipal government declared a state of calamity in the entire town to be able to use a portion of the P2-million local calamity fund to assist affected farmers.

Banaue was the second Ifugao town to be placed under a state of calamity after Alfonso Lista where the dry spell has killed hundreds of farm animals.

“At least 25 percent of the terraced rice farms have already been affected by the dry spell. (We fear) that our terraces will all be affected if the situation will continue for four more months,” Madchiw said.

The dry spell also put in peril the Tinawon red rice, Ifugao’s special rice variety which is sought after by both local and foreign tourists.

Besides its high economic value, the Tinawon rice is also part of Ifugao culture. It sells for P60 to P120 a kilo, making it a high-value crop.

“Many of our farmers are coming to us for help, asking for farm inputs and other related items to save their crops,” Madchiw said.

Ifugao Gov. Teodoro Baguilat said they might as well declare a state of calamity in the entire province since practically all towns have been affected by the worsening El Niño.

Malacañang called on officials to step out of their offices and personally take a look at the situation in their respective areas.

Deputy presidential spokesman Ricardo Saludo, in an interview over Radyo ng Bayan, said the officials should take a hands-on approach in dealing with the problems brought by El Niño.

Saludo said officials should be more proactive and act on the requirements of the farmers faster.

“We are calling on our leaders and heads of government offices to find out directly and address the problems being faced by our farmers and other sectors because of El Niño,” Saludo said in Filipino.

Saludo said the government should provide more information on how to deal with El Niño.

“Let us stand with our people and join hands to give succor to the suffering. This will all come to an end and we will all emerge from this together,” he said.

Drought triggers repair of irrigation canals

Newly appointed Agriculture Secretary Bernie Fondevilla tried to find a silver lining to the El Niño phenomenon, saying the dry spell has prompted officials to repair irrigation systems and other infrastructure.

Fondevilla told reporters during the weekly Kapihan sa Sulo Hotel news forum that although the dry spell has already damaged P8 billion worth of crops, “the repair of damaged infrastructure can now go on unhampered.”

He said aside from the repair of damaged irrigation canals, construction of farm-to-market roads will go full blast to benefit farmers in far flung areas.

Fondevilla said if the El Niño continues, more infrastructure projects would be completed in preparation for the rainy season.

Among the hardest-hit areas are provinces in Cagayan Valley and Central Luzon and some parts of Negros island and Mindanao.

Fondevilla said some dams in Central Luzon are now pumping water to irrigate farms in the region.

Dennis Gana, spokesman of the National Power Corp., said the exclusive use of dams for irrigation would lead to higher electricity rates because power would no longer come solely from hydroelectric power plants.

Meanwhile, Agustin Molina, senior scientist and regional coordinator for the Asia-Pacific of the Rome-based Bioversity International, said the conversion of agricultural lands to residential and industrial uses is also adversely affecting the production of rice and other crops.

Molina said a study conducted by their group showed that corn, which Filipinos sometimes substitute for rice, has also been similarly affected, as have other cereals. “Cereals such as rice, corn, wheat, rye, and oats and potatoes will lose land suitable for their cultivation due to climate change by 2055,” Molina told The STAR yesterday.

Pro-green measures expose bias against urban poor
Business Mirror
Written by Kara Santos / Inter Press Service
Sunday, 07 March 2010

Edgar Borras sifts through his remaining possessions in a demolished shanty beside a Manila waterway, preparing to bring them to his wife and 12-year-old son who now live in a remote relocation site in a province outside the Philippine capital, some 74 km away.

Before a November 2009 government order to move flood-prone informal settlements after the fury of Tropical Storm Ondoy (international name Ketsana) in September last year, Borras’s family had lived for 12 years in a tiny dwelling on the east bank of the Manggahan Floodway, an artificial channel that discharges water from the Marikina River to Laguna de Bay, the country’s biggest lake.

Despite its hazardous location, their home served the family well enough because of its proximity to his son’s school and to the Makati City Hall, where the 37-year-old Borras works as a security guard.

To stay close to his place of work, he now lives in the workers’ barracks and sees his family in Calauan twice a month during his days off.

But while efforts to reduce vulnerability to disasters are laudable, Borras’s situation exposes the bias against many of the urban poor—who provide key services as street cleaners, factory workers, garbage collectors and others in this capital of nearly 12 million people—as the main cause of urban blight and pollution, among other problems.

Likewise, the relocation of informal settlers revives an unresolved debate about how to manage this community, which makes up a good chunk of urban populations in the Philippines and other Asian countries.

It also ignores the wider consideration of the urban poor’s role in the country’s economy and society, where they are an unacknowledged engine that provides essential urban labor. By some estimates, the urban poor make up 5 million or more than 40 percent of Metro Manila’s population.

“They can’t afford decent housing near their workplaces, so they would rather stay in danger areas near work rather than in distant relocation with secure housing [but] with no means of livelihood and access to work," explains Jocelyn Vicente-Angeles, executive director of the Community Organization of the Philippines Enterprise Foundation (COPE), which campaigns against evictions of informal settlers and the urban poor.

Angeles says the government’s efforts to clean waterways of easement encroachment have been focused on urban-poor communities along riverbanks, with the logic that the urban poor are in danger areas and the major pollutants of waterways. “But why not also demolish establishments and big business infrastructures along the riverbanks?” asks Angeles.

After the massive floods brought by Ondoy, which were the worst the country had seen in over four decades, the Philippine government decided to relocate thousands of families living near the Napindan Channel, which connects Laguna de Bay to the Pasig River and the Manila Bay, as well as the Manggahan Floodway, where Borras lives.

The storm, which also ravaged neighboring countries like Vietnam, left over 300 dead and displaced at least 450,000 people in the Philippines.

In November President Arroyo issued an executive order for the relocation of 100,000 families deemed to be living in flood-prone areas along the rivers and waterways.

The Philippines’ environment department declared that the land many of these communities were living on, which had been proclaimed for low-cost housing for informal settlers and landless urban poor, was no longer suitable for such because it was low-lying and thus prone to heavy flooding. “There is an urgency to address flooding in Metro Manila by removing obstructions and rehabilitating waterways,” the order added.

But urban blight and pollution in Manila cannot be attributed only to the urban poor, analysts say.

In a discussion paper, the local research and advocacy group Institute for Popular Democracy (IPD) points out that factories that discharge their waste into rivers and richer residential subdivisions that contribute to effluents in the country’s predominantly sewerless cities are hardly blamed for pollution woes.

Only 5 percent of Metro Manila’s households are connected to a sewerage network, according to the World Health Organization. This means that pollution and waste woes are literally everyone’s waste, IPD points out.

For groups campaigning on urban-poor issues, the post-Ondoy relocation efforts bring to mind an argument they have been making for some time—that large-scale off-city resettlement is never a sustainable solution because the lack of jobs in relocation sites undercuts the livelihood needs of residents.

IPD points to in-city relocation as a much cheaper alternative to distant relocation in terms of housing and livelihood. Inefficient land-use patterns and the use of public and private land near riverbanks could be considered for use as social-housing sites in the city, it adds.

Redevelopment, instead of resettlement to faraway places, is a more realistic approach, says Vicky Morante, a resident of the western bank of the Manggahan Floodway for 18 years and head of a women’s alliance in the area.

“There are other solutions to the problem instead of evicting us. They could have evened out the land with soil or put a dyke in waterways to prevent flooding,” she explained. “Or they could tap into idle lands for in-city socialized housing.”

On their own initiative, Morante and other community leaders are looking for idle land in nearby areas to recommend as relocation sites. She herself is considering renting a house nearby, at double the cost, instead of moving her whole family to the Calauan relocation site.

COPE’s Angeles says the urban poor should not be deprived of a decent space to live in. “Imagine a city without drivers, labandera [washerwomen], street sweepers, ordinary government and private employees, vendors and laborers. It is just proper for the government to provide decent and affordable houses in city and/or near-city relocation,” she explains.

Borras’s neighbors were given until the end of February to demolish their homes by themselves and move to the Calauan site. Some have moved out of fear that their homes would be demolished anyway or that the units in the new site would run out. But more have chosen to stay put for now.

“I pity the people who moved there who can’t find any decent jobs. A lot of them are returning because they can’t find work. I’m lucky to have kept my job here in the city,” Borras says, adding that parts of the Calauan site lack services like water or electricity.

As a security guard, Borras works a night shift of 12 hours a day for a salary of P6,100 (about $132) for every 15 days. Still, Borras is uncertain about his family’s future. His meager salary is stretched to the limit by the cost of supporting two households and added transportation and communication costs.

Water used to cost the Borras family P180 (nearly $4) a month in Manila, but costs P600 ($14) or more than three times more in the relocation site. From spending P150 ($3.52) a day for the family’s meals, Borras now allots about P400 ($9.4) each time his family goes to market, and sets aside money to buy his own meals.

The two- to three-hour trip through dusty roads and heavy traffic from Manila to Laguna costs Borras P300 ($7) roundtrip. He spends another P100 ($2.34) a week on mobile-phone calls and text messages with his family. “My expenses have really doubled. We aren’t able to save anything,” he laments.

“They [the government] should ensure that the place they’re relocating people to is developed enough so people can find jobs,” Borras muses. “If they can’t find jobs there, they’ll just eventually come back to the cities again.”

NPC plan to cut Mindanao power to 50% to kill business
Business Mirror
Sunday, 07 March 2010
http://businessmirror.com.ph/index.php?option=com_content&view=article&id=22659:npc-plan-to-cut-mindanao-power-to-50-to-kill-business&catid=23:topnews&Itemid=58

CAGAYAN DE ORO CITY—Electric cooperatives in Mindanao are questioning the National Power Corp.’s (NPC) plan to further reduce their power allocation to only about 50 percent or less.

At the same time, the Association of Mindanao Rural Electric Power Cooperatives (Amreco) urged the National Bureau of Investigation and the Joint Congressional Power Commission to separately investigate the National Grid Corp.of the Philippines (NGCP) for possibly contriving the power crisis in Mindanao. They suspect it is “artificial” and is meant to justify a move to increase power rates.

Sergio Dagooc, Amreco president, said many of their members were angered when NPC officials announced at a recent meeting here than it planned to further cut back the power allocation of power cooperatives to just 50 percent or less.

“Imagine the implications of this move. This means that 50 percent of revenues from power consumers will be gone. If our co-op’s load is reduced, it will also reduce, more or less, the load of every electric co-op, every private power company, even that of industrial customers,” Dagooc, also general manager of the Misamis Oriental Electric Cooperative, said.

“For example, if I have a condom factory, to make my condoms, my machines must run on more than 1 megaWatt. Below that, the machines won’t. The same thing with a rice mill. How can the machines mill rice or corn if these only run on 50-percent reduced power?” Dagooc, who manages the Siargao Island Rural Electric Cooperative and the Dinagat Island Rural Electric Cooperative, added.

Dagooc stressed it was not just a simple issue of cutting off power.

“This is more seriously an issue of revenue reduction in the long run. How will our cooperatives pay for the salaries of co-op employees if our product or service is reduced to half?” he asked.

He said the power crisis in Mindanao has negatively impacted the economy of the island.

He echoed suspicions the power crisis is contrived. “Some sectors might be manipulating the events to cause an artificial crisis,” he said, adding that power cooperatives were informed last October that the power-supply shortage would peak and be felt in 2014 yet, due to load growth that could no longer be supported by the present power generators.

“The last annual update we had from the National Power Corp. and the now-defunct National Transmission Corp. [Transco] stated that the power crisis in Mindanao would occur in the year 2014,” he said.

The Transco has since been replaced by the NGCP following its privatization in 2008.

Gen-set purchases ‘not needed’
Business Mirror
Sunday, 07 March 2010
http://businessmirror.com.ph/index.php?option=com_content&view=article&id=22658:gen-set-purchases-not-needed&catid=23:topnews&Itemid=58

SENATE Minority Leader Aquilino Pimentel Jr. sees no need for energy officials to seek special authority from Congress to quickly solve the current shortage in Mindanao’s power-generating capacity that has resulted in prolonged brownouts in the southern regions.

In the first place, Pimentel pointed out, there are at least four idle power barges at the National Power Corp. “Those were bought a long time ago, they are on standby, they are not being used. There are two other power barges of Aboitiz which are also not being used. Why do we have to buy generators?”

He wondered aloud, in Filipino, if the option to buy new ones was just meant to generate money for some people. Pimentel was referring to the proposal of Energy Secretary Angelo Reyes that was adopted by President Arroyo, which would involve the lease or purchase of generator sets and power barges and negotiated power-supply contracts.

The “short-term measures” for Mindanao that Reyes recommended to the President, which could cost the government from P8 billion to P10 billion, include the lease-rental of 160-megaWatt generator sets; the operation and maintenance of Alson Corp.’s 30-megaWatt Iligan Diesel Power Plant as well as Alson’s 70-megaWatt diesel plant also in Iligan; and contracting an additional 5 megaWatts from Southern Phils. Power Corp., jointly owned by Aboitiz Equity Ventures, Conal Holdings Corp. and Tomen Power Corp of Singapore.

But Pimentel voiced concerns that the planned purchase of new generator sets without bidding could inevitably trigger speculations of kickbacks from overpricing. “You can’t avoid people suspecting anomalies because there was no public bidding. They’d suspect that some people will suddenly earn a windfall.” This is why, he added, other senators are wary about holding a special session of Congress to approve Reyes’s proposal.

Senate President Juan Ponce Enrile earlier indicated his willingness to convene senators in a special session to take up the proposal, but admitted that he doubts “if we can muster a quorum to convene a special session since everyone is campaigning now.”

Enrile added he also wants to know first what kind of extra powers are being sought by Executive officials from Congress. “We have to know what kind of emergency powers we are going to grant… We have to specify that. But my primary concern is if we will be able to muster a quorum to convene.”

Should Congress leaders go ahead with the special session to take up the Reyes proposal, Pimentel predicted it would go through strict scrutiny in the Senate.

This developed as former senator Ralph Recto recommended instead a “calibrated power response” to the energy crisis.

Recto reminded energy officials that “contracted power should be at a level just enough to plug the shortage. If it is a small wound, would you buy yourself a warehouse of antibiotics?”

Recto, who served as former chief of the National Economic and Development Authority, expressed fears that the outgoing Arroyo administration officials “might go overboard in securing power contracts to fill up the wattage deficit and put power consumers at the losing end again.”

“If we contract energy more than what is needed and for a period longer than we need it, then it may result again in high stranded costs that consumers will amortize or pay down over the long run,” he said, recalling the onerous independent power producer contracts forged during the Ramos administration, which was under pressure to lick the crippling outages, in the early ’90s.

Kirin wants to control San Miguel Brewery
by Naoko Fujimura and Shunichi Ozasa
http://www.manilastandardtoday.com/insideNews.htm?f=2010/march/6/news1.isx&d=2010/march/6

KIRIN Holdings Co. may seek control of San Miguel Brewery after dropping a planned merger with Suntory Holdings that would have created the world’s fifth-biggest food and drinks maker.

“We’d like to take a majority” of San Miguel from the current 48 percent if its parent would be willing to sell, Senji Miyake, who will become Kirin’s president this month, said in Tokyo. “We’re not in hurry,” he said, declining to say whether they’ were in talks.

Japanese beverage makers are accelerating overseas expansion to tap wider margins and offset falling domestic beer sales. The brewer of Kirin Lager and Ichiban Shibori has spent about $7 billion on overseas purchases in the past three years, including taking Lion Nathan private. Kirin on Feb. 8 ended talks to buy Suntory, balking at the $10-billion asking price.

“Kirin may now get going again and begin growing again, and most of the growth will come from outside Japan,” said Edwin Merner, president of Atlantis Investment in Tokyo, which manages about $3 billion in assets. Japan’s largest beverage company would focus expansion in Asian countries with growing populations and rising per-capita incomes, he said.

The beverage maker last year bought its stake in San Miguel Brewery, which controls 95 percent of the Philippines’ beer market. The venture bought the international beer operations from San Miguel Corp. for $300 million in January to gain access to China and other parts of Southeast Asia.

“There is no way we can’t make use of San Miguel’s strong brand in Southeast Asia,” said Miyake, 62. “Our priority is Southeast Asia, as its potential is as big as China.”

Cheaper beer was boosting demand in China, making it hard for Kirin to improve profitability in the world’s fastest-growing major economy, Miyake said.

Miyake joined Kirin in 1970 after graduating from Keio University with an economics degree. He became executive vice president last year after holding various positions including executive vice president of the company’s local venture with Heineken NV and president of Kirin’s beer unit.

San Miguel Brewery, with brands including Lowenbrau and Stella Artois, gained two breweries in China and one each in Indonesia, Hong Kong, Thailand and Vietnam with the January acquisition.

Boosting the stake in San Miguel Brewery would help improve Kirin’s profitability, as the venture has a wider operating profit margin than its rival companies in Southeast Asia as well as Kirin.

San Miguel Brewery’s margin was 32 percent in 2008, compared with Kirin’s 5.6 percent in 2009. Singapore’s Fraser and Neave‘s was 15.1 percent in the year ended September 2009 and Thai Beverage had 14.2 percent in 2009.

San Miguel Corp. is selling food and beverage assets to expand into faster-growing industries such as energy, telecommunication and mining. It has an option to buy a majority stake in oil refiner Petron Corp. It has also bought one power plant and one power supply contract from the government and owns 27 percent of Manila Electric Co.

“It’s natural for Kirin to increase its stake in San Miguel Brewery if San Miguel Corp. sees a need for cash,” said Naomi Takagi, an analyst at JPMorgan Chase & Co., who has an “overweight” rating on Kirin.

“Kirin needs more foundation such as a distribution network and brands to cultivate the market in Southeast Asia, because San Miguel, National Foods and Kirin Beverage aren’t enough.”

Kirin acquired National Foods, Australia’s biggest producer of milk and juice, for A$2.8 billion (US$2.5 billion) in 2007.

Kirin planned to keep a distribution venture with Suntory that the two companies formed last year to lower costs, Miyake said.

Suntory bought European drinkmaker Orangina Schweppes last year and Groupe Danone SA’s Australia and New Zealand drinks business Frucor in 2008.

Asahi Breweries, Japan’s second- largest brewer, bought a 19.9-percent stake in China’s Tsingtao Brewery Co. and acquired Cadbury Plc’s Australian drinks unit last year.

Philex produces 7,471 ounces of gold for February (http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=262782)

MANILA, March 7 (PNA) - Philex Mining Corporation, in a disclosure to the Philippine Stock Exchange, announced that its Padcal Mine has produced 7,471 ounces of gold for the month of February worth P384 million.

Philex said it has also produced 8,015 ounces of silver placed at P6 million and 644,939 pounds of copper (P382 million) from the said mine during the same period.

Overall, Philex's precious metal ore production amounted to P772 million for the month of February. (PNA)

GIR soars further to $45.7b (http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/march/6/business2.isx&d=2010/march/6)
Manila Standard (http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/march/6/business2.isx&d=2010/march/6)
by Roderick T. dela Cruz

The gross international reserves of the Philippines rose further to a new record $45.714 billion at the end of February, in line with Bangko Sentral’s year-end projection of $48 billion.

Bangko Sentral Deputy Gov. and officer-in-charge Nestor Espenilla said the latest figure was up by more than $100 million from $45.592 billion recorded at the end of January and higher by $6.8 billion, or 17.4 percent, from $38.925 billion year-on-year.

Espenilla attributed the increase in the GIR level to “inflows from the foreign exchange operations of Bangko Sentral and income from its investments abroad, as well as revaluation gains on the bank’s gold holdings brought about by the increase in the price of gold in the international market.”

Bangko Sentral has been buying dollars in the market to stabilize the movement of the peso against the greenback and other foreign currencies.

It is under pressure from exporters, who asked Bangko Sentral to buy more dollars as a way of stemming the appreciation of the peso.

The peso was hovering at 46-per-dollar this year, although some banks expect the local currency to strengthen to a range of 43 to 44 against the greenback by the fourth quarter of the year.

The February GIR was composed of $5.579 billion worth of gold, $337 million worth of foreign exchange reserves in US dollars, $134.4 million worth of reserve in the International Monetary Fund, $1.131 billion in special drawing rights, and $38.532 billion in foreign investments.

Data showed that the GIR level could have climbed faster in February, if not for the outflows arising primarily from the payment of maturing foreign exchange obligations of the national government.

At $45.714 billion, the February GIR level could cover 9.3 months of imports of goods and payments of services and income. It was well above the ideal range of three months worth of imports.

Espenilla said the GIR level was also equivalent to 10.2 times the country’s short-term external debt based on original maturity and 4.5 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.

Gross reserves at $45.7 billion in February (http://mb.com.ph/articles/246467/gross-reserves-457-billion-february)

The country’s gross international reserves (GIR) at end-February stood at a record $45.7 billion, higher by $100 million than previous month's $45.6 billion, Bangko Sentral ng Pilipinas (BSP) said Friday.

BSP Officer-In-Charge Nestor A. Espenilla, Jr. said the increase in the preliminary GIR level was due to inflows from the foreign exchange operations of the central bank and income from its investments abroad, as well as revaluation gains on the BSP’s gold holdings brought about by the increase in the price of gold in the international market. These receipts were counterbalanced by outflows arising primarily from the payment of maturing foreign exchange obligations of the national government, Espenilla said.

The current GIR level could cover 9.3 months of imports of goods and payments of services and income. It is also equivalent to 10.2 times the country s short-term external debt based on original maturity and 4.5 times based on residual maturity. Net international reserves (NIR), which include revaluation of reserve assets and reserve-related liabilities, likewise rose to $45.7 billion as of end-February 2010, up by $100 million from the previous month s level of US$45.6 billion. (CSL)

Are Filipinos entrepreneurial?

MANILA, Philippines--I have often lamented that Filipinos tend to be geared toward finding a job rather than creating jobs, and are too oriented toward earning incomes (i.e., wages or salaries) rather than creating wealth. It's no surprise, then, that our unemployment rate is significantly higher than in most of our neighbors. If only more Filipinos would be entrepreneurs rather than employees, then we probably wouldn't have as much unemployment and poverty in our midst.

Are Filipinos indeed not entrepreneurial enough? Are too many of us content with working for others--including and especially for foreign firms and foreign lands?

Surprisingly, an international comparison actually ranks the Philippines among the highest in business ownership, with four out of 10 Filipinos (39.2 percent) owning some kind of business
, second only to Peru (49.6 percent). The London-based Global Entrepreneurship Monitor (GEM) Research Consortium is the largest single study of entrepreneurial activity in the world, covering 42 countries in various stages of development. The Philippines participated in GEM for the first time in 2006, through the Philippine Center for Entrepreneurship (PCE).

The above finding seems to imply that contrary to my lament above and common perception, Filipinos are actually quite entrepreneurial, and among the most so across countries of the world. But are we really?

On closer examination of the GEM results, we find that the surprise ends once we compare the nature of the businesses that we have with that in other countries.

Business quality
Four kinds of enterprises are identified in the GEM survey, namely: extractive (e.g., agriculture, forestry, fishing and mining); transformative (construction, manufacturing, transportation, wholesale distribution); business services, where the primary customer is another business; and consumer-oriented (e.g., retail, restaurants, lodging, health, education, recreation, etc.). The survey found that Filipino business owners are mostly in customer-oriented and extractive businesses, with our country ranking ninth and third respectively in terms of incidence. On the other hand, we rank very low (39th out of 42 countries) in transformative businesses and in business services (41st).

GEM considers level of innovativeness (newness of product and technology, competitor differentiation) and growth expectations (employment and expansion plans) as the traits that distinguish a business as being "entrepreneurial." Unfortunately, it is in these and other related measures of entrepreneurship where we move to the bottom end of the list.

Bottom dweller
We are third from the worst performer in product newness (after Hungary and Brazil), and the worst among participating countries in competitive advantage. In contrast, Thai and Indian businesses rank very high in introducing new products. We are also near the bottom on number of businesses that export. Quite notably, six out of 10 Filipino businesses report not having any employees, suggesting that most business owners are in business primarily to support themselves and their families. In fact, our established businesses rank the lowest in job creation among the 42 countries, with only 3.3 percent employing any workers at all.

The Philippine survey also showed that very few businesses (only one in every 20) make use of any bank financing; in fact, only about one out of three deal with banks at all, even just to deposit funds. And yet, lack of financing comes up to be the most widely cited impediment to starting and maintaining a business.

Deepening enterprise
The GEM results affirm that Filipino businesses are mostly small (micro) in scale and may be characterized as lacking in originality and innovativeness, reflecting the often-lamented gaya-gaya (copycat) syndrome. They are also predominantly inward-looking, largely nonjob creating, and fiscally conservative.

The findings suggest that while business prevalence is already wider in the Philippines than in most countries, it is in deepening entrepreneurship where our bigger challenge lies. To this end, we need deliberate efforts to make banks more responsive to the particular needs of start-up and growing enterprises, while also improving the capability of businesses to make use of the banking system. Research and development especially focused on the needs of small and medium enterprises must be strengthened in public research institutions, inasmuch as SMEs normally do not have the capacity to do R&D on their own. Finally, assistance in tapping export opportunities would also be important if our enterprises are to contribute not only to output (GDP) growth, but to sustained employment growth as well.

inquirer.net

I simple agree. Lahat yata gustong maging nurse. Walang gaanong chemist, agriculturist, (yung mga soil experts), biologist etc. Lahat nagna-nars.

IMO, those who study nursing could either be really dreaming of becoming a nurse or simply joining the bandwagon due to a plethora of reasons, could be unknown plans or unknown concrete interest.:dunno:

But I find that too bad for them.:(

PALACE ADVISER SAYS
Economic growth in 9 years did not touch poor

By Gil C. Cabacungan Jr.
Philippine Daily Inquirer
First Posted 19:08:00 03/07/2010

Filed Under: Poverty, Economy and Business and Finance

MANILA, Philippines -- An economic adviser of President Gloria Macapagal-Arroyo lamented that the rich got richer while the ranks of the poor swelled even further amid heady economic growth in the last nine years.

``My biggest frustration as a presidential adviser is that 34 quarters of uninterrupted expansion in the past nine years did little to reduce poverty and the number of poor people,’’ said Albay Governor Joey Salceda in an interview.

While the Arroyo administration continued to crank out glowing economic growth data, Salceda said ``these rosy figures cannot hide the fact that there are more poor people now than when the President started her term.’’

He cited data from the National Statistical Coordination Board, which showed that the number of poor Filipinos – five-member families living on barely over P1,200 a month -- hit 27.6 million in 2006 from 25.472 million in 2001. Hunger incidence nearly doubled from 11.4 percent in 2000 to 20.3 percent in 2009.

``That is a lot of poor people. Given our average economic growth in the last four decades, it would take 37 years for this poor to get out of poverty,’’ said Salceda.

The government’s efforts to provide direct subsidies to the poor through power and fuel rebates, cheaper rice, medicine and healthcare benefits, Salceda said, were negated by what he termed as ``structural constraints’’ to a more equitable distribution of income.

The Arroyo administration has boasted of having the highest average growth rate of 4.4 percent in gross domestic product of all presidents since 1966 but Salceda pointed out that the windfall earnings were enjoyed entirely by the country’s richest corporations and families.

Salceda said that profits of the country’s top 1,000 corporations jumped by 21 percent per year while the return on their equity or investments increased by 15 percent per year since the President took power.

``Their total earnings amounted to P3.1 trillion of which P2.1 trillion were pocketed as dividends or earnings of the stockholders and only P1 trillion were re-invested,’’ said Salceda.

Salceda said that he and the rest of the President’s economic management team ``honestly believed’’ that economic growth would have been enough to lift the well-being of the destitute if not for the structural constraints that concentrated money in the rich and prevented benefits from trickling down to the poor.

Not only did the population growth of 3.6 percent per year added more to the headcount of poor people, Salceda said that historical structural factors persisted and were tougher to get undone despite deregulation, liberalization and privatization. ``The oligarchies were just too sturdy as the state was weak due to the ``Hello Garci’’ case. The business sector really exploited it,’’ said Salceda who refused to elaborate.

(Salceda was referring to the 2005 political scandal when tapes of President Macapagal-Arroyo’s conversations with a Commission on Elections official about her one-million vote margin in the 2004 polls surfaced. Arroyo apologized to the public for her lapse of judgment in order to defuse the worst political scandal to hit her presidency. But she insisted she called up the official just to follow up on the status of her votes and not to ask him to cheat.)

With a new administration coming in, Salceda expressed hope that the incoming President would have a broader base of popular support to help him carry out pro-poor programs that were inclusive of the rural sector (74 percent of poor Filipinos are from the rural sector).

well better that than nothing at all......it touched me definitely....:lol:

why can't we be like Thailand. They even have to accept migrant workers. So what is those kinds of industry that enables them to even hire migrant workers?

If they can do it, then it means we can also do it with our poor. Unless our poor people don't really want to work.


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Thailand’s labor ministry registers 850,000 migrants
BANGKOK -- Around 850,000 migrant workers in Thailand have met a deadline to start a registration process, the labor ministry said yesterday, as rights groups made renewed calls for a halt to the policy.

Thailand had ordered 1.3 million eligible citizens from neighboring Myanmar, Cambodia and Laos to begin the process of registering and verifying their nationality by Sunday or risk deportation. To enter the process migrants must pay registration and medical fees of 3,800 baht ($116 ) -- a large sum for people who mostly have low-paid jobs in the manufacturing, agricultural and domestic sectors. The full registration process takes two years to complete and will eventually entitle the migrants to claim temporary work permits.

“Some 850,000 migrant workers met the deadline,” said Supat Gukun, a labor ministry official.

The 1.3 million are eligible because they registered for different one-year work permits last year.

Thai authorities estimate there are up to another 1.2 million unregistered migrants in the country who will not be eligible for the new process

^^Because they have a low unemployment rate and a low population growth rate while in our country, we have a very large surplus of labor that we have to send some of them abroad.

^^Because they have a low unemployment rate and a low population growth rate while in our country, we have a very large surplus of labor that we have to send some of them abroad.

but that does not make sense. We have same status as Thailand. Both newly industrialized countries. While Thailand accepts migrant workers, we send migrant workers abroad. We are doing something wrong in our economy.

We are not efficiently using our land and human resources. That's how simply we can put it. :ohno:

It does not really matter if we have a much larger population. We should not be sending workers abroad. Because thailand even accepts migrant workers, which means they lack human resources.

but that does not make sense. We have same status as Thailand. Both newly industrialized countries. While Thailand accepts migrant workers, we send migrant workers abroad. We are doing something wrong in our economy.

We are not efficiently using our land and human resources. That's how simply we can put it. :ohno:

It does not really matter if we have a much larger population. We should not be sending workers abroad. Because thailand even accepts migrant workers, which means they lack human resources.What both newly industrialized country status are you talking about? Are you delusional?! Thailand has been growing by leaps and bounds since the 1980's, while we are just starting to grow lately, and growing slowly at that. I don't consider that at par, not even close.

Yeah, I know we are not efficiently using our land and human resources, but that's easily said than done. Tell me, could some politician turn those idle labor into the fields? Certainly not. Could some politician give up their lands and sell it to the farmers. I don't think so.

Not send workers abroad? Man, you must be dreaming. Because if we not send them, we will surely have an economic collapse.

Ahhh dreams, such an easy thing to do...

^^ Buti na lang at may gumising sa akin. I was dreaming that PBA was hiring only Americans to play for their teams. :lol:

And previous to that, I dreamt that we are hiring Mexicans to farm our idle lands that Gloria had promised that she will give to them after certain years. :nuts:

But then, I woke up from my nap and continue my job in installing some device to secure the border fence in Arizona. :D

What both newly industrialized country status are you talking about? Are you delusional?! Thailand has been growing by leaps and bounds since the 1980's, while we are just starting to grow lately, and growing slowly at that. I don't consider that at par, not even close.

Yeah, I know we are not efficiently using our land and human resources, but that's easily said than done. Tell me, could some politician turn those idle labor into the fields? Certainly not. Could some politician give up their lands and sell it to the farmers. I don't think so.

Not send workers abroad? Man, you must be dreaming. Because if we not send them, we will surely have an economic collapse.

Ahhh dreams, such an easy thing to do...

even if it hurts my ego...
yes Thailand is way ahead of us in so many categories... sadly that is the truth...

though both Thailand and the Philippines are NIC countries..

old news, thailand has been ahead of us for a long now, and if Filipinos don't wake up from their deep slumber of a nightmare, so will Vietnam too ,soon.

Its high time for filipinos to educate our people about the financial system jsut like our neighboring countries. Sg for instance, financials and economics were thought irregardless of discipline youre into and almost everyone there are getting rich because of this.

... And our people can beat the hell out of them...if we persevere to learn and applied the skills.

Corporate News
Posted on 08:23 PM, March 07, 2010


RP college team tops Asia Pacific, proves why EDC is a ‘buy’
IN A country where only a few people have stock market investments, Filipinos appear to make for good equities analysts.

On Saturday night, the University of the Philippines (UP) topped 15 schools in the Asia-Pacific region in a contest in which participants analyzed whether a certain company is a good investment or not using the standards of the Chartered Financial Analyst (CFA) Institute, a global association of investment professionals.

The team from UP, composed of fifth year business administration students Raymund Siegfrid O. Li, Pamela Y. Li, Jose Mari P. Punzalan, Rachelle Denise G. Sison, and Choeerlen Bianca K. Solema, will fly to Hong Kong on April 17 to compete with representatives from the Americas, New York and Europe, and Middle East and Africa.

A team from Ateneo de Manila University, meanwhile, made it to the finals of the Asia-Pacific round of the Investment Research Challenge last year. The results were ironic given that the Philippine Stock Exchange reported two years ago that less than half of 1% of Filipinos invest in equities.

During a presentation, the UP team recommended that investors buy shares of Lopez-led geothermal firm Energy Development Corp. (EDC) citing the huge “upside” for the company given the Philippines’ power supply problems, the enactment of legislation supporting renewable energy, and the lack of competition.

Judges quizzed the group on why it thought the market was undervaluing the EDC, the firm’s dividend and corporate governance record, and the effect on the company’s profitability of other energy sources emerging as cheaper alternatives, among others.

The Philippine team, however, has a tough act to follow as the representatives from Asia Pacific have gone on to win the global competition for the past two years.

“No pressure,” Ashvin Vibhakar, managing director of CFA Institute Asia Pacific, quipped at the awarding of the winners.

Interestingly, only Mr. Li, who serves as team captain, has tried investing in the stock market. The other four learned about the bulls and the bears when they participated in the Philippine leg of the competition in September.

“If I had not joined the contest, I would not have thought about investing in the stock market,” Ms. Sison told reporters.

“It looked so complicated if you are not familiar with it ... you have to know about it so your investments will win,” Ms. Li added.

All of the team’s members were, however, not in a rush to recommend their friends and families to buy equities, but said people should at least learn about it.

“I think it should be taught in college. If you take it in high school, it might be premature ... you might not be familiar with how it works so you just keep on investing. It just might end up as a gamble,” Mr. Li said.

April Lee-Tan, president of CFA Society of the Philippines, said one of the competition’s goals is precisely to raise awareness about the opportunities in the local stock market.

“The Investment Research Challenge is one means [of raising awareness in the stock market] because we are starting at a grassroots level when they are still young,” she told reporters before the start of the competition.

“The mindset of a typical Filipino investor is that investing in stocks is gambling. But with education we want them to become aware what investment in stocks is all about, why it’s not gambling and how to go about that in a proper fashion,” she said.

Bangko Sentral Deputy Governor Nestor A. Espenilla, Jr. said the project supported monetary authorities’ advocacy of financial literacy.

The UP team competed with the Hong Kong Baptist University, National Taiwan University, Thammasat University of Thailand, SP Jain University of Mumbai, and Fundan University of Shanghai in the finals.

why can't we be like Thailand. They even have to accept migrant workers. So what is those kinds of industry that enables them to even hire migrant workers?

If they can do it, then it means we can also do it with our poor. Unless our poor people don't really want to work.


------------------------------------------------------------------
Thailand’s labor ministry registers 850,000 migrants
BANGKOK -- Around 850,000 migrant workers in Thailand have met a deadline to start a registration process, the labor ministry said yesterday, as rights groups made renewed calls for a halt to the policy.

Thailand had ordered 1.3 million eligible citizens from neighboring Myanmar, Cambodia and Laos to begin the process of registering and verifying their nationality by Sunday or risk deportation. To enter the process migrants must pay registration and medical fees of 3,800 baht ($116 ) -- a large sum for people who mostly have low-paid jobs in the manufacturing, agricultural and domestic sectors. The full registration process takes two years to complete and will eventually entitle the migrants to claim temporary work permits.

“Some 850,000 migrant workers met the deadline,” said Supat Gukun, a labor ministry official.

The 1.3 million are eligible because they registered for different one-year work permits last year.

Thai authorities estimate there are up to another 1.2 million unregistered migrants in the country who will not be eligible for the new process

If you noticed, the majority of migrants working in Thailand are from neighbouring Indochinese countries. Countries like Myanmar, Laos, Cambodia and to some extent, Vietnam have a much lower economy than Thailand so people move there for better opportunities. Thailand is still the economic powerhouse of Indochine ASEAN.

Laos, Cambodia and Vietnam are communist countries but have improving economies. But their economies are still far from that of Thailand. Myanmar on the other hand is a country of misery especially being ruled by a military junta which is among the most corrupt in the world. There are NO opportunities in Myanmar and its why they migrate to Thailand which serves as a safehaven for The Burmese. Similar with Cambodia when some Cambodians fled to Thailand during the rule of the Khmer Rouge back in the 70s.

Geography plays a role here. Its similar to why some Vietnamese and Indonesians moved to the Philippines.

but that does not make sense. We have same status as Thailand. Both newly industrialized countries. While Thailand accepts migrant workers, we send migrant workers abroad. We are doing something wrong in our economy.

We are not efficiently using our land and human resources. That's how simply we can put it. :ohno:

It does not really matter if we have a much larger population. We should not be sending workers abroad. Because thailand even accepts migrant workers, which means they lack human resources.

Indonesia, India and China does the same thing and are newly industrialized countries.

I simple agree. Lahat yata gustong maging nurse. Walang gaanong chemist, agriculturist, (yung mga soil experts), biologist etc. Lahat nagna-nars.

And the majority of those studying nursing are heading abroad :(

An article similar to the one posted earlier:

"More Filipinos poor, Arroyo adviser admits"

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20100308-257301/More-Filipinos-poor-Arroyo-adviser-admits

And the majority of those studying nursing are heading abroad :(

WHAT KIND OF QUESTION IS THIS????///\

See ganito tau mag isip. Easy supply and demand. Kahit na sandmakmak na scientist, PhDs or lawyer or whatever and i produce ng schools natin. walang mangyayari because theres no local demand. Practical lang ang mga tao. You should not blame. Gusto mo ba maging statistics pa sila ng mga unemployed???? What we should do is for our government to highlight the importance of these profession, attract investments that will catter for thes disciplines, provide support for these industries and the rest will follow. education is one thing but we need a catalysts tht will as starting ground for seed to grow. Organic development will follow.

WHAT KIND OF QUESTION IS THIS????///\

See ganito tau mag isip. Easy supply and demand. Kahit na sandmakmak na scientist, PhDs or lawyer or whatever and i produce ng schools natin. walang mangyayari because theres no local demand. Practical lang ang mga tao. You should not blame. Gusto mo ba maging statistics pa sila ng mga unemployed???? What we should do is for our government to highlight the importance of these profession, attract investments that will catter for thes disciplines, provide support for these industries and the rest will follow. education is one thing but we need a catalysts tht will as starting ground for seed to grow. Organic development will follow.

Thats what the Philippine government should do. Cause alot of Filipino youths are either heading abroad or call centre.

no matter what course they take, there will still be more poor filipinos because the poor keeps on multiplying, while the rich takes the land.

no matter what course they take, there will still be more poor filipinos because the poor keeps on multiplying, while the rich takes the land.

What kind of statement is this????

Of course they will multiply. You know why? Because they dont have any options. Im all support for RH bill. But this bill will not goes out for majority because theyre not educated. Educated not in the sense that DOH or the government doesnt informed them of any contraceptives or methods etc but because they lack the EDUCATION(on the higer level). Most fo these people just finish high schools. What to do after that? what choices to they have or do they even think that they have choices. Do we have population boom in developed countries? No. In fact its going down. Because people in these countries have variety of choices. These people have dreams and they act on it because they have the knowledge and skills to use. They are not only dreaming for their own sake but also for their future children. The quality of life they want for their children to have. Of course they will limit the number of children depending on their means. They will save and improve futher their coffers.

What kind of statement is this????

Of course they will multiply. You know why? Because they dont have any options.

Whattaheck?! What kind of statement is this???

:D:D:D

That statement is so ridiculous. As if we don't really have any choice but to do that.:ohno:

The poor, just like the middle-class and the rich, always has the option. It's just that they choose to not do anything, or to do something (in this case, go and multiply), when they can obviously do something to help them be alleviated of what they're in.

They don't think of other means on how to spend their spare time wisely that's why they multiply exponentially and stay poor.

A family is just like a country. It has a GDP (nominal) and a GDP (nominal) per capita. A family will have to divide the entire GDP to its members so one can live a better life. If a family has lesser members, of course they will live better compared to a family of more members.

Gov't eyes lower debt servicing in 2010 as economy grows (http://www.pna.gov.ph/index.php?idn=3&sid=&nid=3&rid=263048)

MANILA, March 8 (PNA) --Some of the world’s experts, including the best minds at the World Bank/International Monetary Fund group, said the Philippines would fail to grow and its economy likely to contract in 2009 as a result of the global financial turmoil that started in the developed countries, particularly the United states.

Homegrown pundits were also convinced the government was powerless in stemming the tide of fiscal deficits, starting with the P136-billion budget shortfall in 2000 that equaled 4.1 percent of local output, or the gross domestic product (GDP), that President Gloria Macapagal-Arroyo would inherit a year later.

This was more than double the IMF's prescribed target for the Philippine government to support growth that would free more poor Filipinos from the clutches of poverty.

But the economy did grow in 2009 by 0.9 percent despite expectations of a sharp downturn and far more growth than neighbors in the region which continued to be hobbled by a period of recession.

Back then, as now, the difficulties were formidable not least because the 31-month presidency of then President Joseph Estrada left behind a legacy of fiscal mismanagement, poor economics and an international standing that left much to be desired.

So when President Arroyo assumed office in 2001, she instructed a handpick group of people to stabilize the economy as quickly as possible and sustain this path for the long haul.

At that time the country’s foreign debts of P1.098 trillion accounted for about two-thirds of GDP while the capacity to pay for it was a little over twice the country’s gross international reserves (GIR), or about US$ 12 billion.

Contrast this with GIR amounting to US$ 45.7 billion as of the latest Bangko Sentral ng Pilipinas report, or more than 10 times the country’s short-term foreign debts.

The period spanning 2000 to the present was a period of fiscal and monetary sector reforms that had the support of both the Legislative and Executive departments.

That support, however, did not come easy and was made possible in part because Malacanang continued adopting measures needed to bring the economy out of the backwaters of Southeast Asia.

Finance Secretary Margarito Teves has cited the role played by the Expanded Value Added Tax, or EVAT, a key reform measure adopted in 2007 which was seen to generate much needed revenues and eventually reduce the country's debt stock.

The government was forced to set aside a big chunk of revenues for debt payments, bringing the total national government debt to drop from the equivalent of 71.4 percent of GDP on net basis in 2005 to only 56.8 percent in 2009.

With the commitment to do right by the fiscal sector, NG debt should fall further significantly to just 5.1 9 percent of GDP this year and only 48.1 percent of GDP next year, according to the Department of Finance.

But such will only be possible if the nation’s budgetary shortfall is brought under control and Congress commits to refrain from enacting revenue-eroding measures, Secretary Teves said.

The revenue-eroding measures denied the national coffers of some P49 billion in taxes for this year, according to Teves.

The goal is for Congress to refrain from similar measures in the future so that the budget deficit, which had been brought down from 2.7 percent of GDP in 2005 to only 0.9 percent of GDP in 2008 should come to a balance by 2013.

But last year, the budget deficit reached P298.6 billion in 2009, or equaled to 3.9 percent of GDP due to forced government spending and weak revenue streams aggravated by revenue-eroding measures.

Deficits force government either to cut spending, which punishes all Filipinos, or borrow from somewhere which only postpones the agony of limited budgets, according to the DOF.

Already the total outstanding NG debt had more than doubled from P2.166 trillion in 2000 to P4.220 trillion at end-2008, the DOF said.

Servicing the debt has improved but still very expensive, requiring government to set aside 83.2 percent of revenues in 2005 to 55.9 percent of GDP in 2008.

Forced spending last year on account of a global downturn and weather-related damage to infrastructure amid slowing revenues pushed the debt service higher last year to 75.9 percent of GDP.

This year, however, debt servicing should improve again to 56.1 percent of GDP as the economy expanded in tandem with expected global growth, the DOF said.

Debt service improved from P679 billion in 2005 to only P605 billion in 2008 although this ramped up again to P852.1 billion last year as more NG IOUs matured during the period.

This year another P743.2 billion had been set aside as debt service based on preliminary estimates by the DOF. (PNA)