Gov't says 1.4M jobs created in January
Posted: 0:07 AM | Mar. 27, 2004

Michelle V. Remo
Inquirer News Service

NEW jobs in the Philippines more than trebled to 1.4 million in January from 414,000 a year earlier, indicating a pickup in business activity despite perceived risks related to the coming elections, the National Economic and Development Authority (NEDA) said Friday.

Economic Planning Secretary Romulo Neri, who is NEDA director general, reported the numbers from a January 2004 Round of Labor Force Survey of the National Statistics Office.


"In the last three years, employment has grown annually by about 1.06 million compared with just a third of a million per year under the previous administration," Neri said.

The survey showed the services sector generated 940,000 new jobs, compared with 284,000 in January 2003, and the industry sector created 466,000 versus a job loss of 14,000 in January 2003, he said.

Neri also said the quantity of work might have increased and the quality might have improved, as the survey showed that the number of people who worked at least 40 hours a week increased by 11.2 percent while the number of people who worked less than 40 hours decreased by five percent.

He said the increase in jobs indicated the government's job-generation programs were meeting their objectives.

However, the increase was not enough to temper the rise in unemployment, Neri said. While 1.4 million new jobs were available in January, the labor force had 1.7 million new members, he said.

"The increase in labor force of 5.2 percent, which is even higher than the 2.3-percent population growth rate, outpaced the gains in employment," he said.

The National Statistics Office earlier reported that unemployment rate in January rose to 11 percent, from 10.6 percent a year earlier, because of the big number of new entrants to the labor force. With INQ7.net

http://money.inq7.net/topstories/view_topstories.php?yyyy=2004&mon=03&dd=27&file=1

that's great...!:)

although it's still not enough to cover all the new graduates and new members of the labor force. they have to keep this up if they want to at least maintain the unemployment rate these coming months with even more graduates coming in...

yeap lets hope for more good news about Philippine economy :)

Well, the more jobs the Philippines create, the more demand for workplaces to put the people to work. And in Metro Manila, that would usually mean more office towers filling up and more being constructed! :yes:

Thats good...but i heard that the Philippines is in trouble in the next few years because of its HUGE budget deficit. If our GDP growth slows, we are in the dumps with Argentina. That will happen if FPJ wins... Hope we can pay our depts soon and recover to economic growth and surplus.

ok economics boy:D what will budget deficit do for us, or a huge one that is? i thought the US also a huge budget deficit. im curious, feed my brain;) :)

RP globalization ranking up 21 rungs

By JOSE M. GALANG, JR.
OFW Journalism Consortium , Inc.

MANILA -- LARGELY with the aid of dollars sent home by Filipinos working abroad, the Philippines posted the biggest leap in rankings in this years globalization index produced by an international business consulting group for Foreign Policy magazine.

From No. 54 last year, the Philippines surged ahead to No. 33 in the A.T. Kearney/Foreign Policy 2004 Globalization index, an advanced release on the study said ahead of the reports publication next month. The 21-rung jump was the best record among 62 countries covered by the study.

Topping the list as the worlds most globally integrated nation is Ireland, followed by Singapore and Switzerland. The others in the top 10 are: Netherlands, Finland, Canada, United States, Austria, and Denmark.

Japan, though getting a rating increase, stood at No. 29 as it suffered a retreat on portfolio capital and foreign direct investment flows, results of the study showed.

Ranked near the bottom of the tally are China at No. 57 and India at No. 61. Both are experiencing dramatic economic growth.

While the globalization index reflects the magnitude of the surveyed countries integration with the rest of the world, it is not a measure of competitiveness. Country competitiveness, Foreign Policy says, is related to input costs, infrastructure, economic policy, the cost of doing business, and a variety of other factors.

Besides second-placer Singapore, other Southeast Asian countries in the tally are Malaysia (No. 20), Thailand (48), and Indonesia (59).

This years index, which was based on data for 2002, or just after the 9/11 attacks on the United States, demonstrates that even as the world economy slowed, Internet growth in poor countries and increased cross-border travel deepened global links, Foreign Policy said in a just-released preview of the report.

Foreign Policy is published by the Carnegie Endowment for International Peace Washington, D.C. One of the magazine?s founders is Samuel Huntington, author of The Clash of Civilizations. A.T. Kearney, meanwhile, is a global management consultancy firm.

Philippines Moves Up

The Philippines higher ranking was due to the first-place rating it got in the Remittances and Personal Transfers indicator, one of 14 variables grouped in four categories economic integration, personal contact, technological connectivity, and political engagement analyzed for the globalization index. The index made its debut in 2001 and has remained the most comprehensive thus far o n the subject.

The money sent back to the Philippines by Filipinos working abroad has become a vital component of its national economy, Foreign Policy said.

(Some US$7.6 billion in remittances e4ntered the formal banking system in 2003, according to the Bangko Sentral ng Pilipinas. In addition, the World bank report Global Development Finance 2003 said the Philippines ranked third in remittances [looking at countries 2002 remittance data] with US$6.4 billion behind Indias US$10 billion and Mexico?s US$9.9 billion

Remittances coming from the countrys over 7.5 million overseas Filipinos, said economic analysts from the Asian Development Bank, have become the countrys main economic driver, together with consumption-fed growth. Ed.).

Compensation to employees, or the money paid to Filipinos working abroad plus money paid to foreign workers in the Philippines, was over 8 percent of gross domestic product (or GDP, the value of all production of goods and services within the country), the study noted.

Switzerland, which ranked No. 2 in the same indicator, has compensation to employees at 3.17 percent of GDP, the study said.

Also a factor in boosting the overall ranking was the increase of 13 percent in foreign direct investment (FDI0 and 6 percent in trade flows as the Philippines bucked the global trend while most countries decline in these areas during the survey period, the study said.

Due to its No. 1 rating in remittances and personal transfers, the Philippines was ranked No. 20 in the Personal Contact category of key variables. Other Philippine scores in this category were: No. 39 in telephone usage, and No. 51 in travel.

How does this relate to current thinking on globalization? Presidential candidate Fernando Poe, Jr., for one, has declared he would, if elected, be against globalization. If that means taking action that would curtail the flow of overseas Filipino workers remittances, he could eventually suffer a backlash from the economic class that is widely expected to boost his chances at the May 10 polls.

On the other hand, the incumbent President Gloria Macapagal-Arroyo, who is seeking re-election, has proclaimed a stand against unbridled globalization and ordered a halt to tariff cuts on imports. However, ratings from the A.T. Kearney/Foreign Policy study do not put the Philippines degree of globalization anywhere near an unbridled character.

The No. 20 ranking in the personal contact category was the best the Philippines attained. In Economic Integration the country got a No. 32 ranking, following ratings of 16th in trade, 32nd in portfolio investments, 44th in foreign direct investment, and 36th in investment income.



Rankings In Other Categories

The Philippines rating in the economy category was better only against Indonesia?s (No. 47) among other Southeast Asian nations. Singapore was No. 2, Malaysia was No. 8, and Thailand No. 28 in this category.

Compared to last years rankings in economic integration, the Philippines saw a drop from No. 26, while its Southeast Asian neighbors either maintained or kept close to previous positions.

Among the developing world, Southeast Asia, the study said, remained the most globally integrated region, despite being buffeted by the global economic slowdown and a major terrorist attack.

Indonesia was the least integrated country in Southeast Asia, the report said. Hotel occupancy dropped to single digits following the October 2002 bombing in Bali, that country?s most popular resort.

Because the tourism industry employs more than 7 million people and accounts for about 5 percent of GDP, the effects of that attack reverberated throughout the country, the study noted.

There are two more categories on which the surveyed countries globalization levels were assessed: technological connectivity and political engagement. In both categories, the Philippines got low ratings.

In the technology sector, the Philippines landed No. 47 following these rankings: 48th in terms of Internet users, also 48th in Internet hosts, and 46th in secure Internet servers.

A still lower ranking of No. 51 was scored by the Philippines in the political category. While it got a high ninth place in terms of international treaties ratified, the country could only settle for 47th in government transfers (payments to and receipts from international institutions), 48th in contributions to United Nations peacekeeping efforts, and 50th in membership in international organizations.

In computing the rankings, the study adds inward and outward flows in most of the indicators, and the sum is divided by the countrys GDP, or nominal economic output, or by its population level.

The 62 countries, both developed and developing, that are ranked in the A.T. Kearney/Foreign Policy Globalization Index, account for 84 percent of the worlds population and 96 percent of the worlds GDP

http://www.tarlacnews.net/ofwmarch25200405.shtml

ok economics boy:D what will budget deficit do for us, or a huge one that is? i thought the US also a huge budget deficit. im curious, feed my brain;) :)

well renell,deficit is bad because in this case philippine has to take loans to finance it or maybe with forex reserves. But Philippines should not take loans and be a part of the IMF-programe..that will scare me..be in hands of IMF is suicide

US has a tradedeficit but it is financed by Asia.
:)

Yep, drwho answered it nicely. Nice article, too btw.

However, Philippines is not currently under the hands of IMF. They have huge loans elsewhere (some in IMF).

basically, too high of the budget deficit = Huge debt = possible economic meltdown and bankrupcy... And we wouldnt want that to happen, eh? Economic reforms and improved tax collection (not to mention less corruption) will change that for the better.

yeap,economic fiscal responsibility is a must (even for India who has a very huge fiscal deficit)

found this IMF-article here btw on their view of the deficit in Philippines.

http://washingtontimes.com/upi-breaking/20040331-070324-7911r.htm

New China envoy vows RP infra, economy boost

By DAVID CAGAHASTIAN

The new Chinese Ambassador to Manila, Wu Hong Bo, yesterday paid his first courtesy call on Foreign Affairs Secretary Delia D. Albert, as he pledged even stronger cooperation in the areas of infrastructure development, trade, investment, tourism, and agriculture.


Before his assignment to the Philippines, Ambassador Wu has held various positions in the Chinese Ministry of Foreign Affairs since 1976, including the office of the Deputy Commissioner of the Chinese Ministry of Foreign Affairs in the Macau Special Administrative Region from 2002-2004.

Ambassador Wu also served as the deputy director general for West European Affairs of the Chinese Ministry of Foreign Affairs in 1999-2000, and as chief representative of the Joint Liaison group between China and the United Kingdom, which facilitated the turnover of Hong Kong to the Chinese government in 1998-1999.

?Next year, we will be celebrating 30 years of excellent relations.

Ambassador Wu and I agreed that we will mark this milestone event by pushing our relations to even greater heights,? Albert said after her meeting with the new Chinese ambassador.

Ambassador Wu assured Albert of the Chinese government?s support for the development of Mindanao, as well as its cooperation in the Philippines? transport infrastructure and agriculture programs.

Albert announced that China will send a trade and investment delegation to Mindanao, particularly the Brunei, Indonesia, Malaysia, Philippines-East Asia Growth Area (BIMP-EAGA), to look into possible economic cooperation opportunities there.

China had earlier agreed to fund the $400-million Northrail Project, a cargo and commuter rail system connecting Metro Manila with Clark and Subic.

The Philippines will host the 14th RP-China Foreign Ministry Consultations in Manila next month.

http://www.mb.com.ph/MTNN200404026344.html

there are a lot of corruptions at the customs. our work deals with the customs (of foreign countries) that's why i know. we use to handle phil customs...but the govt got heavily indebted to our company by about Php 6 billion (USD 100 million).

another problem is with the finance. they are so tunnel focused. we need finance peoples that could visualize the future and will plan for a long term national budget.

Yeah, great news for our infrastructure. Thanks to China:)

Here's another article:
RP, China strengthen economic relations
By LEE C. CHIPOINGIAN

The Philippine government and China have agreed to reaffirm its trade and economic cooperation during a recent Beijing round of talks, specifically on cement and coal supply to help in local industry requirements.


The Philippine representative, Trade and Industry Undersecretary Thomas Aquino reported that through the Philippines-China Joint Trade Committee (JTC), both nations successfully "further strengthened" trade and economic relations.

Aquino, while in Beijing, conducted talks with Chinese officials led by Vice-Minister An Min of China’s Ministry of Commerce (MOFCOM).

He said discussions centered on coal and cement domestic supply concerns. "On coal, MOFCOM agreed to intercede on behalf of the Philippine government’s request for timely coal supply delivery (to select power plants)," Aquino said. These are coal supplies to the Masinloc and Sual power plants considering the growing local demand.

The Philippine side also urged China to fully comply with the existing contracts forged by the state-controlled National Power Corp. with Chinese coal suppliers "so they can qualify in the awarding of future contracts," Aquino disclosed.

China also responded favorably to the proposal of the Philippines for a government-to-government purchase arrangement of cement. The trade official explains that this would involve China’s "supply assurance" once MOFCOM finalizes the arrangements on volume allocation and specification requirements.

Besides coal and cement, the JTC discussions also focused on intensifying cooperation under the Brunei-Malaysia-Indonesia-Philippines East ASEAN Growth Area (BIMP-EAGA), after MOFCOM confirmed that it will be sending a Chinese mission to Mindanao next month to explore possible collaborative projects.

"Efforts to enlist China’s engagement were considered a significant step towards the actualization of China’s support to the growth area as articulated by Premier Wen Jiabao during the ASEAN + China Summit in Bali last year," Aquino said.

Besides Aquino and MOFCOM’s An Min, the JCT meeting also included people from the Department of Foreign Affairs (DFA), Philippine International Trading Corp (PITC) and Philippine National Railways (PNR) who took up joint cooperation schemes and firmed up initiatives on potential projects on coal, cement, coconut fiber, railway transport as well as possible partnerships in education services.

China is the Philippines’ sixth major trading partner, the eighth largest export market and the sixth biggest import supplier.

Total bilateral trade in 2002, according to the DTI, amounted to $2.58 billion with exports amounting to $1.35 billion and imports at $1.23 billion. Total trade from January to November 2003 already reached $3.54 billion.

In the meantime the country incurred trade deficits with China over the last five years starting 1998, but started to enjoy a trade surplus worth $122 million in 2002. January to November 2003 trade surplus increased to $320 million.

More than half of the country’s exports to China in 2002 consisted of semiconductor devices and components while major imports consisted of motor gasoline; parts and accessories of automatic data processing machines and electrical machinery; semiconductor devices; cellular phones, fabrics, coal and audio-video tape deck and compact discs.

Philippine Economy in Comparison:

To be honest, the Philippines was one of the most developed nations in Asia after Japan when it started out.Far ahead than Singapore,South Korea, andTaiwan. Today, it is among the countries that have stagnant economies.Although all thus has occured, the Philippines still remains competitive with its surprises recovering from crisis and competing with newly industrialized nations like Thailand,Malaysia or Indonesia. Everyone knows the reason what caused the Philippines' situation today.Corrption...and it also lies to the people...the people alone have the power to change it all...we are Ais's first democracy,we are suppose to decide how our future will be...we have the capacity to make a change.The Philippines has showned dramatic changes during the past years.What was not possible during 1995 is possible today.Things develop before our very eyes.Every two weeks, about 10,000 Filipino leave the country to find jobs abroad and thus 9 billion dollars flow in the country each year,many times more than the country gets from worldwide financial aid.For me alone,after 6 years of absence in the country,too many thing have changed that it might be different when I comew back for good one day.
Roughly 40% of the Philippine population suffers under the poverty line,while in Brazil and Indonesia it is only 20%. But in the minds of people, Philippines has a better image and perspective about the Philippines since 95% of the population is highly literated while bith Brazil and Indonesia have a horrible illiteracy of over 20%. Roughly 1/4 of India's population can't afford a proper doet each day and together with the Philippines,both have an unemployment rate of 10%.India's government is poor and it has a population of over 1 billion,while Philippines only has 84 million and the government is only bankrupt not only because it is poor but because of corruption and a fragile economy.But it is not bad since,Germany,Europe's largest economy and one of the world's strongestM, also has a 10% unemployment rate.Malaysia and Thailand are already further developed than the country and will soon be considered developed..Only 8% of Malaysians live under the poverty line. Philippines is on the list of the top ten countries that has high debts ranking 9th.We owe nearly 50 billion dollars.The highest ranks were Brazil with 160 billion,followed by China with 155 billion.On the list of countries with the most corrupt leaders,Philippines is number one.We have two leaders on the top ten list: Marcos, who ranked second after a former Indonesian leader and Estrada who ranked ninth.Others were African and South American leaders.The income of an average Filipino per year is 726 to 2 955 dollars, surpassed by Malaysia,South Africa and Brazil.Talking about South Africa, it has a far better infastructure supewrior to the Philippines but a horribly weak economy with 47% jobless rate and a life expectancy of only 46 years.Philippines is far richer and developed than Sri Lanka but it has a higher life expectancy of 73 years,Philippines only has 68.9.Philippines can be easily globalized since it is always exposed to the world.I am not surprised from the current results.A famine is almost impossible for the fertile country and still, many impoversished children die frpm hunger each day. If we want the economy to improve,we should be wise with who we decide for president this coming election,that's all I can say for now.

This index shows offshoring attractiveness of a country and Philippines is doing a good job to attract offshore investment.

http://picserver.student.utwente.nl/view_image.php/909FIS6CW985/picserver.jpeg

we are so high up the list!! but how come our economy is stagnant? Not as much investors are coming in.

the report is here : http://www.atkearney.com/shared_res/pdf/Making_Offshore_S.pdf

i havent read it yet but i will do it soon :)

despite political uncertainty this year due to the coming elections, the philippines is poise to grow around 4.5%, i hope that after the elections is over and the next president will have a good mandate the political situation in the phils will normalize and i hope our economy will grow better so we can catch up with our neighbours

There is always hope...it only lies in the hands of the people and the government...they just have to play their cards right!

yeah, i hope our economy gets stronger after the may election, i also do hope to have the right president for the country!

Subic wharf eyed as cruise center

By LAWRENCE AGCAOILI
TODAY Reporter

Some P160 million will be spent to transform the Rivera Wharf in Subic into a world-class passenger terminal that could accommodate international cruise ships traveling around the Asia-Pacific region.

Global Terminal and Development Inc. president Rose Baldeo said the company is making the investment to transform the 18-hectare former US military port facility into a one-stop-shop cruise ship facility, complemented with passenger and tourist parks, a warehouse, grain storage facilities, and a ship repair yard.

Baldeo said the project would be marketed among cruise ship operators in the Asia-Pacific region, the United States, and Europe for them to include Subic Bay in its tour packages.

The project would be divided into three phases, the first of which would include the construction of elegantly designed entry-exit gates, architect Nestor Mangio said. This would also include the P36-million rehabilitation of the Alava pier that would serve as the future gateway of cruise ships and foreign tourists.

Mangio said the second phase involves the clearing, clean-up and fencing of the whole area and the establishment of passenger terminals -- to cost P20 million -- for both cruise and cargo ships. The final phase would involve the construction of the “one-stop-shop” commercial buildings for port-related businesses with project cost amounting to P100 million.

“The northern part of the pier will be dedicated for the setting up of a ship repair facility, while the opposite side will be allocated for companies doing port-related businesses such as warehousing, storage, and stevedoring. Commercial spaces, leisure centers, passenger terminals will be at the main boulevard of this project,” he added.

Subic Bay Metropolitan Authority Chairman Felicito Payumo said the Rivera Wharf project will be developed as a premier tourist and cruise ship area as part of the grand master plan of Subic’s port modernization anchored on the $215-million container port terminal.

“The project will serve as the catalyst for harbor renewal of Rivera Wharf from a former military port to become the Asia’s premier cruise ship destination in the region,” Payumo said.
-----------------------------------------------------------
This is awesome news! So much is going on with Subic and Clark right now in terms of infrastructure. We have this, the ports modernization projects, the Northrail, the NLEX extension and the Subic-Clark-Tarlac expressway. This is just sweeet!! I just hope the elections don't bar foreigners from continuing to invest in the country and that the same thing that's happened to NAIA 3 doesn't happen to any of these projects because of a new president...

Very good news! Finally we will have a cruise ship port terminal. Definitely will boost tourism. Clark, Subic seem to be on a roll lately...:okay:

good news yep. how does this compare to Manila's passenger terminal?

yeah, how big in size? Definitely will be better than MNL in terms of modernity and appearance.

R.P. exports improve, inflation a worry

Philippine exports rose 7.5 percent in February from the same period a year earlier, the government said on Tuesday, raising hopes the economy is starting to feel the effect of a global pick-up in demand.

But separate figures showed year-on-year inflation crept up to 3.8 percent in March from 3.4 percent in February, exceeding the expectation of the Bangko Sentral ng Pilipinas (BSP) and stirring concern that the weak peso is starting to accelerate price rises.

The National Statistics Office said exports rose to $2.999 billion from $2.789 billion in the same period a year earlier and from $2.844 billion in January.

"It's in line with expectations," said Song Seng Wun, regional economist with G.K. Goh Securities in Singapore.

"From the February trade reports of Philippine trading partners, we have seen a pick-up particularly from countries like Taiwan, Singapore, China, and Korea, generally related to the tech sector."

The gain follows a 4.1 percent year-on-year rise in January, when exports failed to keep pace with imports and left the country with a hefty trade deficit of $336 million for the month even as most of its neighbors enjoyed surpluses.

In the first two months of 2004, exports were up 5.8 percent at $5.843 billion from the year-ago $5.522 billion.

Key electronics exports, accounting for two-thirds of the total, were up 6.6 percent in February from a year earlier at $1.976 billion.

Sluggish growth in exports last year raised concern the economy, already handicapped by a weak peso and jitters ahead of May 10 national elections, is slipping behind its neighbors and losing out to Chinese competition.

The inflation figures underlined that rising oil prices and the weak peso are a growing threat to the economy.

The BSP had been expecting inflation to come in at 3.4 to 3.6 percent for the 1994 base year, which it uses to determine its monetary policy, but said afterwards there was still no need to tighten rates.

"This validates our pre-emptive move on liquidity reserves. For the time being that will be sufficient," BSP Governor Rafael Buenaventura said, referring to the bank's mild tightening in February.

"We need to monitor closely the oil prices, it's still running ahead of the forecast," he said.

Inflation in the year to March using the 2000 base year came in at 4.2 percent from 4.0 percent in February.

http://www.abs-cbnnews.com/NewsStory.aspx?section=Business&oid=48575

it would be great to have cruise ships visit the country! it's about time!

yup... a $3 million (P160M) budget doesn't seem too much for typical infra projects but hopefully the group behind it can come up with something nice. I want one at least better than the famous Canada Place of Vancouver - but that's going a bit too far with $3,000,000... hehehehe. as long as it's nice and modern, I'm happy.

$3 million is not that much...but if they can make something good of it, then go for it!:)

RP remains good place for business, 4 trade commissioners say

DO NOT be daunted by doomsday scenarios and political uncertainties due to the May polls.

So said trade commissioners of four countries -- Australia, Canada, New Zealand and the United States -- who believe the Philippines remains a good place for business.

While security threats in the country continue, this is not primary in the list of concerns of foreign businessmen, the trade commissioners said.

And to back their faith in the country, they will stage the Second World's Finest Food Trade Show next month.

The business event is an affirmation of their optimism to step up trade ties with the Philippines, Australian senior trade commissioner Alan Morrell said.

"The Philippines is seeing some sectors of economy moving quite well. Food comes into that category and consumer goods in general," Morrell amplified in a press conference at the Australian Embassy in Makati.

The retail business is growing and the existence of small chains in the country attests to the strong consumer demand in the country, according to US Agriculture Trade Officer Michael Woolsey.

"The platform for important products is growing," Woolsey stressed.

"The Philippines is a very significant export market and trade partner," said Canadian Trade Commissioner Richard Bale. He went on to add that the Philippines was Canada's largest export market in Southeast Asia last year.

New Zealand Trade Commissioner Ramoncito Bernales said they are strengthening their presence in the country by continuing to identify market strategies. OPS

http://www.sunstar.com.ph/static/net/2004/04/10/rp.remains.good.place.for.business.4.trade.commissioners.say.html

RP remains good place for business, 4 trade commissioners say

....."The Philippines is a very significant export market and trade partner," said Canadian Trade Commissioner Richard Bale. He went on to add that the Philippines was Canada's largest export market in Southeast Asia last year.
....
http://www.sunstar.com.ph/static/net/2004/04/10/rp.remains.good.place.for.business.4.trade.commissioners.say.html

that's good.

that's good.
YA AND TO THINK THAT WE EXPORT A LOT OUR NURSES, CAREGIVERS, DOCTORS TO CANADA

yeah...Phil is a good export partner...and also a big IMPORT partner. we import almost everything from simply toys to sugars to meat, which we could actually supply locally. the result? it's too unfair for the local companies who depend on local market (example: sugar industry of Negros, textile industry, etc...).

Other important exports from the Philippines are semiconductors, electronics, electric parts and other industrial made products.

i hope that the exports from the country would get better and better to provide more jobs!

Other important exports from the Philippines are semiconductors, electronics, electric parts and other industrial made products.

right. To name a few, automotive parts (Fujitsu-Ten), actuators for the harddisks drives (Fujitsu Computers), scanners and fax machines (Panasonic), wire harnessing and other electric components (Yazaki-Torres), LCD's of mobile phones (Three-Five Systems) are being produced and are assembled here in the Philippines and then exported to Japan, Thailand, Singapore and Malaysia.

HSBC to set up unit here to serve global operations
Posted: 11:44 PM | Apr. 13, 2004

Doris C. Dumlao
Inquirer News Service

BRITISH bank HSBC Ltd. on Tuesday announced plans to invest "several millions of dollars" in a backroom unit in the Philippines that would serve as a call center and business process outsourcing (BPO) center for its global operations.

The HSBC Electronic Data Processing Inc., the eighth group service center in Asia, will open in the middle of this year, HSBC Philippines chief executive officer Warner Manning told reporters.


HSBC has group service centers in India, China and Malaysia. A site in Sri Lanka is also under development.

"HSBC has had a presence in the Philippines for close to 130 years," Manning said. "Our decision to open a group service center in Manila reflects our longstanding commitment to the country and our confidence in its prospects."

"High quality telecommunications infrastructure and excellent English-language skills are the building blocks of this business, and both are freely available in the Philippines," he added.

The new call center and BPO unit will be housed temporarily in the PBCom Tower building in the Makati business district before transferring to its permanent site in the Northgate Cyberzone in Manila's Alabang suburb middle of next year, he said.

The unit has been registered with the Board of Investments and will be entitled to such incentives as an income tax holiday, Trade and Industry Secretary Cesar Purisima said.

"This is a badge of honor for the Philippine BPO and call center industry," Purisima said. "We want to be a good number two in the world next to India."

"It not only highlights the quality of our local human resources, but demonstrates the continued viability of the Philippines as a place for doing business," he added.

Purisima said the average investment for call centers in the Philippines was between 3,000 and 6,000 dollars per seat.

The HSBC plan is to hire an initial batch of 500 people to man 360 seats. It calls for expanding the backroom unit five-fold in the next two years.

Bangko Sentral ng Pilipinas Governor Rafael Buenaventura said the HSBC plan would create fresh job opportunities and attract more foreign banks and financial institutions to similarly transfer some, if not all, of their backroom operations to the Philippines.
------------------------------------------------------------------------
great news for the Philippines' growing outsourcing industry...!!!

I never knew we manufactured and exported all that! hope more companies transfer to the Philippines so we at least get a bigger stake at Asia's huge manufacturing sector...

oh yeah... aren't Intel chips also researched, developed and manufactured somewhere in the country???

right. To name a few, automotive parts (Fujitsu-Ten), actuators for the harddisks drives (Fujitsu Computers), scanners and fax machines (Panasonic), wire harnessing and other electric components (Yazaki-Torres), LCD's of mobile phones (Three-Five Systems) are being produced and are assembled here in the Philippines and then exported to Japan, Thailand, Singapore and Malaysia.

not to mention that 80% of the world's cellphone chip supply comes from the Philippines;) Made by Texas Instruments. TI has huge factories in Cebu and other parts of the country.

That HSBC news is great! The more outsourcing companies and jobs we have the better! HSBC is one of my favorite banks:D

That HSBC news is great! The more outsourcing companies and jobs we have the better! HSBC is one of my favorite banks:D
I BELEIVE ITS ONE OF THE LARGEST BANKS IN THE WORLD

COMMENCEMENT ADDRESS
ATENEO DE MANILA UNIVERSITY
March 27, 2004 by JOHN L. GOKONGWEI, JR.

I wish I were one of you today, instead of a 77-year-old man, giving a speech you will probably forget when you wake up from your hangover tomorrow. You may be surprised I feel this way. Many of you are feeling fearful and apprehensive about your future. You are thinking that, perhaps, your Ateneo diploma will not mean a whole lot in the future in a country with too many problems. And you are probably right. You are thinking that our country is slipping, no - sliding. Again, you may be right.

Twenty years ago, we were at par with countries like Thailand, Malaysia, and Singapore. Today, we are left way behind. You know the facts. Twenty years ago, the per capita income of the Filipino was 1,000 US dollars.

Today, it's 1,100 dollars. That's a growth of only ten percent in twenty years. Meanwhile, Thailand's per capita income today is double ours; Malaysia, triple ours; and Singapore, almost twenty times ours.

With globalization coming, you know it is even more urgent to wake up. Trade barriers are falling, which means we will have to compete harder. In the new world, entrepreneurs will be forced to invest their money where it is most efficient. And that is not necessarily in the Philippines. Even for Filipino entrepreneurs, that can be the case.

For example, a Filipino brand like Maxx candy can be manufactured in Bangkok - where labor, taxes, power and financing are cheaper and more efficient - and then exported to other ASEAN countries. This will be a common scenario - if things do not change. Pretty soon, we will become a nation that buys everything and produces practically nothing. We will be like the prodigal son who took his father's money and spent it all. The difference is that we do not have a generous father to run back to. But despite this, I am still very excited about the future. I will tell you why later.

You have been taught at the Ateneo to be "a person for others." Of course, that is noble: To serve your countrymen. Question is: How? And my answer is: Be an entrepreneur! You may think I am just a foolish man talking mundane stuff when the question before him is almost philosophical. But I am being very thoughtful here, and if I may presume this about myself, being patriotic as well.

Entrepreneurship is the answer. We need young people who will find the idea, grab the opportunity, take risk, and set aside comfort to set up businesses that will provide jobs. But why? What are jobs? Jobs are what allow people to feel useful and build their self-esteem. Jobs make people productive members of the community. Jobs make people feel they are worthy citizens. And jobs make a country worthy players in the world market. In that order of things, it is the entrepreneurs who have the power to harness the creativity and talents of others to achieve a common good.
This should leave the world a better place than it was. Let me make it clear: Job creation is a priority for any nation to move forward. For example, it is the young entrepreneurs of Malaysia, Thailand, and Singapore who created the dynamic businesses that have propelled their countries to the top. Young people like yourselves.

Meanwhile, in the Philippines, progress is slow. Very little is new. Hardly anything is fresh. With a few exceptions, the biggest companies before the war - like PLDT, Ayala, and San Miguel - are still the biggest companies today. All right, being from the Ateneo, many of you probably have offers from these corporations already. You may even have offers from JG Summit. I say: Great! Take these offers, work as hard as you can, learn everything these companies can teach - and then leave! If you dream of creating something great, do not let a 9-to-5 job - even a high-paying one - lull you into a complacent, comfortable life. Let that high-paying job propel you toward entrepreneurship instead.

When I speak of the hardship ahead, I do not mean to be skeptical but realistic. Even you Ateneans, who are famous for your eloquence, you cannot talk your way out of this one. There is nothing to do but to deal with it. I learned this lesson when, as a 13-year-old, I lost my dad. Before that, I was like many of you: a privileged kid. I went to Cebu's best school; lived in a big house; and got free entrance to the Vision, the largest movie house in Cebu, which my father owned. Then my dad died, and I lost all these. My family had become poor - poor enough to split my family. My mother and five siblings moved to China where the cost of living was lower. I was placed under the care of my Grand Uncle Manuel Gotianuy, who put me through school. But just two years later, the war broke out, and even my Uncle Manuel could no longer see me through. I was out in the streets literally.

Looking back, this time was one of the best times of my life. We lost everything, true, but so did everybody! War was the great equalizer. In that setting, anyone who was willing to size up the situation, use his wits, and work hard, could make it! It was every man for himself, and I had to find a way to support myself and my family. I decided to be a market vendor. Why? Because it was something that I, a 15-year old boy in short pants, could do.

I started by selling simple products in the palengke half an hour by bike from the city. I had a bicycle. I would wake up at five in the morning, load thread, soap and candles into my bike, and rush to the palengke. I would rent a stall for one peso a day, lay out my goods on a table as big as this podium, and begin selling. I did that the whole day. I sold about twenty pesos of goods every day. Today, twenty pesos will only allow you to send twenty text messages to your crush, but 63 years ago, it was enough to support my family. And it left me enough to plow back into my small, but growing, business.

I was the youngest vendor in the palengke, but that didn't faze me. In fact, I rather saw it as an opportunity. Remember, that was 63 years and 100 pounds ago, so I could move faster, stay under the sun more, and keep selling longer than everyone else. Then, when I had enough money and more confidence, I decided to travel to Manila from Cebu to sell all kinds of goods like rubber tires. Instead of my bike, I now traveled on a batel -a boat so small that on windless days, we would just float there. On bad days, the trip could take two weeks!

During one trip, our batel sank! We would have all perished in the sea were it not for my inventory of tires. The viajeros were happy because my tires saved their lives, and I was happy because the viajeros, by hanging on to them, saved my tires. On these long and lonely trips I had to entertain myself with books, like Gone With The Wind.

After the war, I had saved up 50,000 pesos. That was when you could buy a chicken for 20 centavos and a car for 2,000 pesos. I was 19 years old. Now I had enough money to bring my family home from China. Once they were all here, they helped me expand our trading business to include imports. Remember that the war had left the Philippines with very few goods. So we imported whatever was needed and imported them from everywhere - including used clothes and textile remnants from the United States. We were probably the first ukay-ukay dealers here.

Then, when I had gained more experience and built my reputation, I borrowed money from the bank and got into manufacturing. I saw that coffee was abundant, and Nescafe of Nestle was too expensive for a country still rebuilding from the war, so my company created Blend 45. That was our first branded hit. And from there, we had enough profits to launch Jack and Jill. From one market stall, we are now in nine core businesses - including retail, real estate, publishing, petrochemicals, textiles, banking, food manufacturing, Cebu Pacific Air and Sun Cellular. When we had shown success in the smaller businesses, we were able to raise money in the capital markets-through IPOs and bond offerings -- and then get into more complex, capital- intensive enterprises. We did it slow, but sure.

Success doesn't happen overnight. It's the small successes achieved day by day that build a company. So, don't be impatient or focused on immediate financial rewards. I only started flying business class when I got too fat to fit in the economy seats. And I even wore a used overcoat while courting my wife - it came from my ukay-ukay business. Thank God Elizabeth didn't mind the mothball smell of my overcoat or maybe she wouldn't have married me.

Save what you earn and plow it back. And never forget your families! Your parents denied themselves many things to send you here. They could have traveled around the world a couple of times with the money they set aside for your education, and your social life, and your comforts. Remember them - and thank them.

When you have families of your own, you must be home with them for at least one meal everyday. I did that while I was building my company. Now, with all my six children married, I ask that we spend every Sunday lunch together, when everything under the sun is discussed. As it is with business, so it is with family. There are no short cuts for building either one. Remember, no short cuts.

Saint Ignatius of Loyola, your patron saint, and founder of this 450-year old organization I admire, described an ideal Jesuit as one who "lives with one foot raised." I believe that means someone who is always ready to respond to opportunities. Saint Ignatius knew that, to build a successful organization, he needed to recruit and educate men who were not afraid of change but were in fact excited by it. In fact, the Jesuits were one of the earliest practitioners of globalization. As early as the 16th century, upon reaching a foreign country, they compiled dictionaries in local languages like Tamil and Vietnamese so that they could spread their message in the local language. In a few centuries, they have been able to spread their mission in many countries through education.

The Jesuits have another quote. "Make the whole world your house," which means that the ideal Jesuit must be at home everywhere. By adapting to change, but at the same time staying true to their beliefs, the Society of Jesus has become the long-lasting and successful organization it is today and has made the world their house.

So, let live with one foot raised in facing the next big opportunity: globalization. Globalization can be your greatest enemy. It will be your downfall if you are too afraid and too weak to fight it out. But it can also be your biggest ally. With the Asian Free Trade agreement and tariffs near zero, your market has grown from 80 million Filipinos to half a billion Southeast Asians. Imagine what that means to you as an entrepreneur if you are able to find a need and fill it. And imagine, too, what that will do for the economy of our country! Yes, our government may not be perfect, and our economic environment not ideal, but true entrepreneurs will find opportunities anywhere.

Look at the young Filipino entrepreneurs who made it. When I say young - and I'm 77, remember - I am talking about those in their 50s and below. Tony Tan of Jollibee, Ben Chan of Bench, Rolando Hortaleza of Splash, and Wilson Lim of Abensons. They're the guys who weren't content with the 9-to-5 job, who were willing to delay their gratification and comfort, and who created something new, something fresh. Something Filipinos are now very proud of. They all started small but now sell their hamburgers, T-shirts and cosmetics in Asia, America, and the Middle East. In doing so, these young Filipino entrepreneurs created jobs while doing something they were passionate about.

Globalization is an opportunity of a lifetime - for you. And that is why I want to be out there with you instead of here behind this podium - perhaps too old and too slow to seize the opportunities you can.

Let me leave you with one last thought. Trade barriers have fallen. The only barriers left are the barriers you have in your mind. So, Ateneans, Class of 2004, heed the call of entrepreneurship. With a little bit of will and a little bit of imagination, you can turn this crisis into your patriotic moment - and truly become a person for others. "Live with one foot raised and make the world your house."

To this great University, my sincerest thanks for this singular honor conferred on me today. To the graduates, congratulations and Godspeed.

"Ad Majorem Dei Gloriam".

Thank you.
------------------------------------------------------------------------
Very impressive, highly motivational speech...! He puts so much faith (and money) into our country - and to think that he's Tsinoy! I love people like these. People who keep our economy alive and continue to pour their sweat and blood into this country many others have thought of as hopeless...

I BELEIVE ITS ONE OF THE LARGEST BANKS IN THE WORLD

HSBC is the world's 2nd largest bank in terms of Assets.

good news about the HSBC.
After Intercon...which occupied RCBC, here comes HSBC that will occupy PB Com, which is a PEZA certified IT bldg. but Cyberzones gives more incentives, and maybe longer tax holidays to tenants, that why their moving afterwards.

HSBC is the world's 2nd largest bank in terms of Assets.
wow and no 1 must be from japan

but according to this pdf file...
http://www.hvb.co.yu/pub/Top50-2002_e.pdf

HSBC is only #7 in 2002, #8 in 2001, #6 in 2000.

hmm.. HSBC in the future might move out of Enterprise and build their own scraper in Makati:D hehe. it's a good guess, which i think isn't too impossible

hmm.. HSBC in the future might move out of Enterprise and build their own scraper in Makati:D hehe. it's a good guess, which i think isn't too impossible

They could actually... They have a big presence in the Philippines, and should they expand more, they might just build their own office skyscraper.

I read about HSBC being second in terms of assets in TIME. or was it Capital? forgot.

not so feasible. the govts are so generous to such BPOs. so they could get the most out of staying on those PEZA certified buildings and zones.

hmm...interesting. Citibank built buildings though.

maybe when Citibank built their building these PEZA buildings weren't implemented yet

R.P. scores narrow surplus as exports rise

The Philippines scored a narrow trade surplus in February, leaving hopes intact that the Southeast Asian country is putting a sluggish performance behind it as global demand picks up.

The government said on Tuesday the Philippines had a trade surplus of $5 million in February, compared with a deficit of $28 million a year earlier.

Imports rose 6.3 percent to $2.994 billion in the year through February, down from a 9.0 percent rise in the 12 months to January but still suggesting that the economy was drawing in more goods to feed its export industries.

February exports were 7.5 percent higher than a year earlier at $2.999 billion, the government announced earlier this month.

Analysts said political uncertainty ahead of May 10 national election was probably limiting the country's ability to take advantage of rising global demand for electronics and fend off stiff competition from China.

"That may continue to have some impact," said Song Seng Wun, regional economist with GK Goh securities in Singapore.

"After that, we are hopeful that as long as underlying demand on the tech side remains firm, we will see an improvement in terms of imports of capital goods together with an improvement in raw material and intermediate goods."

Song noted that February's 7.5 percent rise in capital goods imports had been the slowest in three months, possibly a result of weaker demand in the economy.

But imports of electronics parts were 17 percent higher than a year earlier at $1.495 billion and accounted for half of arriving goods and services.

"The February imports figure is indicating that stronger growth in previous months may have built up some inventories for the near term," said AB Capital economic analyst Jose Vistan.

"But the six percent year-on-year growth is still good news."

Exports picked up in February after a weak start in the first month of the year as demand for electronics climbed in line with the global economic recovery.

The local electronics industry assembles imported components into finished goods for export, so a rise in imports is often seen as a herald of brighter trade figures. Electronics account for two-thirds of the country's export earnings.

The Philippines is still falling short of its neighbors in terms of export performance. The 7.5 percent rise in the year to February compared with gains of 16.7 percent in Malaysia and 34.7 percent in Taiwan.

"With China continuing to be the alternative area for investment, particularly for electronics, that has been at the expense of the Philippines," said Song.
---------------------------------------------------------------
Ecozone shipments rise 25% to $2.36 billion in January

By LAWRENCE AGCAOILI
TODAY Reporter

Export earnings of companies operating inside state-run economic zones and private-owned industrial estates jumped 25 percent in January as more and more electronics and semiconductor companies reported hefty increases in shipments.

Philippine Economic Zone Authority (PEZA) director general Lilia de Lima reported Tuesday that locators inside ecozones and industrial estates reached $2.36 billion in January or $480 million more than the $1.88-billion registered in the same month last year.

De Lima pointed out that locators inside private-owned industrial estates surged 30.15 percent to $1.83 billion in January from $1.41 billion in the same month last year.

Earnings of companies inside industrial estates accounted for 77.5 percent of the total shipments recorded in January.

Laguna Technopark Inc. emerged as the top dollar-earner among private-owned industrial estates with $596.44 million, followed by Gateway Business Park in Cavite with $375.92 million, Amkor Technology in Muntinlupa with $130.93 million, Carmelray Industrial Park I with $108.64 million, and Light Industry & Science Park II with $68.93 million.

Meanwhile, shipments of companies inside state-run ecozones inched up by 9.6 percent to $523.42 million from $477.54 million. These ecozones accounted for 22.5 percent of the total shipments for the month of January.

The Baguio City ecozone emerged as the topped state-run ecozone with $226.17 million followed, by Cavite with $142.7 million, Mactan with $114.13 million, and Bataan with $40.42 million.

Top dollar-earners include Texas Instruments Philippines, Toshiba Information Equipment, Intel Technology Philippines, Fujitsu Computer Products Philippines, Amkor Technologies, Philips Semiconductor, Epson Precision Philippines, Samsung Electronics Philippines Manufacturing, Panasonic Mobile Communications and Ionics EMS Inc.

Export earnings of locators inside government-run ecozones and industrial estates jumped 20 percent to $27.33 billion in 2003 compared to $22.77 billion in 2002. To date, there are 100 proclaimed ecozones in the country hosting over 1,200 export-oriented enterprises.
---------------------------------------------------------------
more good news for the recovering economy! all this after the earlier reported 516% rise in ecozone locators. sounds like we're off to a very good start in reviving business in the country - even though some of our neighbors are still fairing a tad better.

I never knew we manufactured for all those brands!!! Intel, TI, Samsung, Epson... Cebu also makes Timex watches, right??? I'd love to see more investors come in to further boost our exports after the elections - and I'm pretty optimistic we may see that happen... I read in another article that Taiwan had $3B worth of investments poured into it last year. we got P28B from PEZA locators 2003. with the 516% rise, we're almost at that level and it's only the first quarter!! maybe in one or two years we'll reach the P150B mark or more to further catch up with Taiwan and other Asian countries...

[size=4][b]I'd love to see more investors come in to further boost our exports after the elections - and I'm pretty optimistic we may see that happen...

i dont know absent. there still is a perception in the west that investing in the philippines would be too risky considering the higher rate of kidnappings than in other SE Asian nations, as well as being potential targets of the Abu Sayyaf and NPA for example.. the BBC in my view is too "drama-queen" over the situation of the philippines at the mo... if u need the overall view of the west toward the phils, go to the BBC and economist websites..

personally, i believe the negative views of urging not to invest in the philippines is just hung-over anxiety from the Marcos days, a trend in thinking if you will... the image of a country in chaos, no matter how long ago it was, is a hard thing to get rid of. the same applies for indonesia, where the suharto riots in may 1998 still affect western companies decisions in investing in the country... :bash: prejudice is a stupid thing!

IMF upgrades growth outlook for Philippines
Posted: 11:19 PM | Apr. 22, 2004


Inquirer News Service


printable version
email a story
write the editor
feedback


THE INTERNATIONAL Monetary Fund has upgraded its 2004 economic growth outlook for the Philippines from 4.0 percent to 4.5 percent in terms of gross domestic product (GDP), but expects the country to remain as the laggard among Asia's emerging economies.

Despite the upgrading, the growth forecast for the Philippines is the lowest by IMF for countries in the ASEAN region this year. The IMF projects 7.0-percent growth for Thailand, 5.7 percent for Malaysia, and 4.8 percent for Indonesia.


The IMF projects growth in these the four ASEAN countries together at 5.4 percent, compared with the 5.0 percent they registered last year.

"In the Philippines, vulnerabilities remain, so it is important -- especially during the run-up to the presidential election in May -- to stay on the fiscal course and stand ready to tighten monetary policy should exchange rate depreciation pose a threat to the attainment of the inflation target," the IMF said in its latest world economic outlook, which it released on Thursday.

"The priorities are to act forcefully and without delay to increase tax revenue, restructure the power sector, strengthen the banking system and improve the business environment," it said.

The increased GDP growth projection for the Philippines is in line with an expectation of the IMF of a strong rebound in emerging Asian economies after the outbreak of killer virus SARS last year.

The IMF said "emerging Asia" -- which it defines as including China, Hong Kong, India, Indonesia, South Korea, Malaysia, Singapore, Taiwan, Thailand and the Philippines -- grew rapidly over the past three decades and was an increasingly dynamic force in the global economy.

It said the sharp rise in intra-regional trade suggested that the region as a whole was becoming less dependent on the rest of the world and more of an autonomous engine of growth.

It cited China in particular as an important consumer of final goods, contributing to growth in the rest of the world especially Japan.

The IMF projected emerging Asia to grow by 7.2 percent this year, sustaining the same level of growth posted last year.

"With the recovery following the Asian financial crisis, emerging Asia's imports from the rest of the world now account for almost 2.5 percent of GDP of the rest of the world, compared with 4 percent for the European Union and 5.5 percent for the United States," its report said.

With China's increasing integration and its dual role as a production hub and emerging consumer of final goods, its imports were increasingly rapidly from all trading partners.

The IMF projects an 8.5-percent growth for China this year, making China the only country in emerging Asia that it expects to outperform the 7.2-percent forecast growth for the region.

It projects growth in the newly industrialized Asian economies -- South Korea, Taiwan, Hong Kong and Singapore -- to average 5.3 percent, with Hong Kong and South Korea projected to grow the fastest at a rate of 5.5 percent.

:applause: Great news for Philippines. I read an article where it said that foreign investment is up more than 1000%! Isnt that great? Will definitely boost the economy despite weaker consumption due to the elections.

Good, but not good enough:(

RP trails Asian neighbors in IMF’s 2004 World Economic Outlook

By Des Ferriols
The Philippine Star 04/23/2004

The International Monetary Fund (IMF) said emerging Asia has become the engine of world growth even as the Philippines is expected to trail behind its neighbors.

According to the IMF, there is a need for the Philippines to "act forcefully and without delay" to increase tax revenue and improve business environment.

In its 2004 World Economic Outlook released yesterday, the IMF estimated world economic growth to average 4.6 percent this year, with emerging Asia tagged as the most promising region in the world, both in terms of being a major producer and consumer.

The region is expected to grow by 7.2 percent this year and by 6.8 percent in 2005 although the Philippines is estimated to grow by only 4.5 percent this year and 4.2 percent next year.

Per IMF definition, emerging Asia includes China, Hong Kong SAR, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan Province of China, and Thailand.

The IMF’s economic growth projection for the region is lowest in the Philippines and highest in China (8.5 percent) and Thailand (seven percent).

Indonesia is expected to grow by 4.8 percent while Pakistan and Bangladesh are expected to grow by 5.4 percent and 5.8 percent, respectively.

Investment has been growing briskly in China although in countries like the Philippines, capital growth is being held back by lingering balance sheet problems and political uncertainties related to upcoming elections.

With growth accelerating and some financial imbalances emerging, the IMF said many countries in the region may need to gradually tighten macroeconomic policies in the coming year.

In the Philippines, the IMF said vulnerabilities remain, highlighting the importance of staying the fiscal course and standing ready to tighten monetary policy should exchange rate depreciation pose a threat to the attainment of the inflation target.

"Thereafter, the priorities are to act forcefully and without delay to increase tax revenue, restructure the power sector, strengthen the banking system, and improve the business environment," the IMF said.

According to the IMF, the economies in emerging Asia have grown at an extraordinary pace over the past three decades and the characteristic of the rapid economic development has been the emphasis on outward-oriented growth strategies.

This has been reflected in high trade growth and a steady increase of emerging Asia’s share in global trade, which more than doubled from eight percent in 1978 to 19 percent in 2002, the Fund said.

Emerging Asia, according to the IMF, accounted for 44 percent of world GDP growth in 2002 and for 24 percent of export growth in the rest of the world.

However, exports continue to play an important role in growth in emerging Asia. Exports of goods and services remained close to 40 percent of GDP, while they accounted for 78 percent of total demand growth in 1999-2002, up from 66 percent in 1990 - 96.

"The sharp rise in intraregional trade suggests that the region as a whole is becoming less dependent on the rest of the world and more of an autonomous engine of growth," the IMF said. "Increased trade integration has clearly resulted in closer links between economies in the region and greater business cycle correlation across countries."

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

The news about our exports going into surplus is really good. Exports is very important to economic growth.

Stocks surge to three-year high
By CATHY ROSE A. GARCIA
Senior Reporter

Stocks surged on Friday to their highest level in three years as a spate of upbeat economic news in the past few days encouraged local and foreign investors to return to the equities market.

Despite the nearing national elections, the Philippine Stock Exchange Composite Index surged 2.66 percent or 41.12 points to 1,589.40 points, its best close since March 8, 2001, when it finished at 1,589.57.

Analysts noted there has been strong foreign buying since Monday after the California Public Employees Retirement System (CalPERS) announced its decision to retain investments in the Philippines.

Unicapital Securities research head Elena Ponceca attributed the market’s five-day winning streak to the string of positive economic data, expectations of bullish first-quarter corporate results and Wall Street’s strong overnight performance.

“For the past few days, we received upbeat economic news. Exports are up in February, investments are also up, the trade surplus, [International Monetary Fund] growth upgrade. There are indications the budget deficit has been contained. All of these have positive impact on the foreign exchange, and there’s less volatility,” Ponceca said in an interview.

During Friday’s trading, foreign buying totaled P542.16 million or more than half of the total value turnover of P926.4 million. 2tradeasia chief operating officer Grace Cerdenia said foreign investors saw the CalPERS decision as a psychological boost and vote of confidence for the Philippine market.

Investors continued to snap up stocks with good profit prospects, ahead of the release of first-quarter corporate results in the next few days.

In an interview, Cerdenia said the market’s rally could be traced to the strong performance of telecom stocks, particularly Philippine Long Distance Telephone (PLDT) Co. and Globe Telecom. PLDT’s American Depositary Receipts closed $20.20 or $1.20 higher than the previous day.

Shares of PLDT, which accounted for 26 percent of the volume, soared yesterday to close P75, or 7 percent, higher at P1,150, while rival Globe Telecom increased by P60 to P955 per share.

Property stocks led by mall developer SM Prime Holdings Corp. also closed higher, after SM Prime announced it allocating P14 billion in capital expenditures for shopping mall projects over the next three years. S.M. Prime closed 10 centavos higher at P6.10.

“Essentially, this means despite the uncertainty in politics, several companies are still continuing with their expansion bids,” Cerdenia said.

Traders also attributed the surge to President Arroyo’s slight lead over her main rival in the latest voter survey.

“Foreign investors and local ones are becoming optimistic with what appears to be the emerging trend that probably ‘Da King’ will have a hard time at the polls,” said Westlink Global Equities analyst James Lago, referring to Arroyo’s rival Fernando Poe Jr., also known as “Da King” of Philippine movies.

The country is holding national elections on May 10.

“What was initially expected to be a runaway win for [Poe] might not materialize,” Lago told Dow Jones Newswires.

“The foreign money positioning ahead of the election results that was trickling in a few weeks ago has turned into a flood,” he said.

With just a few weeks before the elections, pollster Social Weather Stations reported Thursday that Arroyo had taken the lead in an April 10-17 presidential survey with 35.3 percent of the 1,400 respondents over Poe’s 32 points. The poll posted a margin of error of plus or minus 3 points.

“It seems like the financial capital markets are more comfortable with the incumbent president,” said First Grade Holdings managing director Astro del Castillo.

Further inspiring the market was Wall Street’s rally Thursday, which bolstered the Dow Jones Industrial Average by 1.4 percent and the Nasdaq by 1.9 percent.

During yesterday’s session, all indices closed higher with the All-Share index up 14.69 points at 977.92. Commercial and industrial index climbed 75.20 points to 2,519 points, while property index jumped 6.24 points to 546 points. Mining index stood at 1,435.27 points or 26.66 points higher, while banking shares inched up 5.98 points to 440.53 points. Oil index remained unchanged. With AP
------------------------------------------------------------------------
some pretty good newss for the Phisix - espcially during time like this where elections are only weeks away...

I find that WorldBank estimation very, very inaccurate. the UN's approximations read that the Phil. economy was to grow at 5++% this year and the gov't's expectations are somewhere bet. 4.9-6.2% I think... with the new PEZA and BoI investments shooting up and exports gaining ground, we should see at least 5% growth...

Swift to export chicken to Japan
The Philippine Star 04/24/2004

Swift Foods, Inc., one of the major poultry producers in the country, is in the final stages of negotiations with Japanese importers for the export of value-added chicken products to the Japanese market.

Swift president Bernardo Concepcion said Sumikin Busan and Nisho Iwai, two major Japanese sogo-soshas, are now working closely with the company in finalizing a supply agreement for the next three to six months.

Representatives of both companies, together with their customers, have visited Swift’s new and modern dressing and further processing facilities in Cagayan de Oro. "Both buyers were happy and impressed with our facilities in Cagayan de Oro and the quality of chicken meat produced from these plants," Concepcion said.

Swift Foods, Inc., one of the country’s pioneers in poultry production, together with local entrepreneurs invested over P500 million to expand its Northern Mindanao operations. Its dressing plant in the area, capable of producing 8,000 birds per hour and its further processing plant facility, capable of producing customized products, were made operational early last year.

"These facilities, other than being able to supply the requirements of the growing domestic food service sector, are likewise geared for exports," Concepcion said. Swift’s facilities in Northern Mindanao are HACCP certified and Triple A accredited by the NMIC.
---------------------------------------------------------------
Aussie mining firm’s Bicol proj endorsed for ecozone status
By Marianne V. Go
The Philippine Star 04/24/2004

Trade Secretary Cesar V. Purisima has endorsed to Malacañang the Rapu-Rapu mining project site of Australia’s Lafayette Mining Ltd. as a special economic zone.

Purisima said they have recommended that the project be classified as a special ecozone "to again spark the interest of foreign mining firms in the country by offering them more incentives and recognizing their contribution to the export industry."

Lafayette Mining’s Rapu-Rapu project in Legaspi, Albay will produce copper, gold, silver and zinc, with an estimated value of $350 million over the initial six-year life span of the project.

The mining project is expected to start operations by the fourth quarter this year and begin exporting by next year.

The capital expenditure by the Australian mining firm for the site is placed at around $41 million.

Purisima said the commencement of the Rapu-Rapu project would send a strong signal to foreign investors that the government is still keen on harnessing its mineral resources in spite of the recent setback posed by a Supreme Court decision regarding foreign control of local mining concerns.

Purisima is keen on attracting foreign investors to invest in the country’s mining sector to allow the country to avail of the current global window of opportunity wherein mineral prices are quite high.

Gold, copper and nickel prices are at their highs, due to several factors that include increased demand from a growing world economy and fears of global instability such as the Iraq war.

Globally, there are no new big copper mines being opened and the Philippines has plenty of mineral resources which have remained untapped.

The mining sector has a multiplier effect on the economy. A revival of mining activity would also perk up the construction industry and the stockmarket lead to job creation and development of rural communities.

Expected to benefit most from a revival of the mining sector would be Mindanao, where 80 percent of the country’s mineral resources remain untapped.
--------------------------------------------------------------------------------
a bit of good news for our export industries. thank God are hardly ever hit with big epidemics like bird flu... we were nearly missed by SARS last year as well!

exports in our mining industry are pretty much dead right now - and that SC decision earlier dug it even deeper into the grave. hope the DTI's efforts will help revive mineral exports...

"The International Monetary Fund (IMF) said emerging Asia has become the engine of world growth even as the Philippines is expected to trail behind its neighbors"

i hope that in the comming years, philippines economy would improve better, so that's it's not always last

4.5% GDP growth rate is a good news indeed.. but we are still behind compared to our neighbors. even Bangladesh is expected to grow by 5.8%! at this rate, we might see these countries richer than us... :wallbash:

Well the reason why Bagladesh and other poorer nations have a bigger growth is because their GDP is not that big to start off with. Therefore their percentage growth will be larger. Philippines has a bigger GDP so our growth in terms of quantity will be more or less the same. But yes, we should grow more than 4-5% to see real improvements happen. Ideal growth is 7%+

GDP-wise, Bangladesh's 2003 GDP is $239B, while the PI's is $356B. Compare that with Singapore's which is $105B, Malaysia's $210B, Thailand's $429B, Indonesia's $663B, Sokor's $931B, and Taiwan's $406B. But when it comes to purchasing power parity, that's where things start to change because the Philippine Peso is lagging behind our Southeast Asian counterparts.

Every Filipino owes about $700 due to our external foreign debt, and I find this frustrating because we are never able to pay the principal amount. We just pay for the interest and it consumes about 20% of our national budget which isn't very big in the first place!

about our debt, the only way is to take it slowly and pay it off slowly. we cannot pay it off in one payment, like Eddie Gil wanted to do. what an idiot. he said he can pay all our country's debt. he cant even pay his hotel bills

Hell, Eddie Gil says that if he wins he'll all give us a million pesos each!

Wow.... 1 mill each? How many Filipinos are there? Damn...

Well it doesn't matter anyway since the Supreme Court (or was it COMELEC?) ruled him ineligible.

only an idiot will believe that, for only an idiot would give money to 80 million people, let alone one million pesos.

:hilarious

Ford to export 16,000 vehicles from RP this year
Posted: 11:11 AM | Apr. 28, 2004
Agence France-Presse

US automaker Ford Motor Co. has committed to export 16,000 assembled vehicles out of the Philippines this year, the Department of Trade and Industry said in a statement Wednesday.

This will earn some 220 million dollars in export revenues, the department said, adding that Ford Motor Co. Philippines also plans to export some 33,000 vehicles next year, rising to 40,000 vehicles by 2006.

Ford Philippines also plans to export vehicles as "completely-knocked-down kits" to Vietnam and possibly Malaysia, for assembly there, the department said without elaborating.

The shipments come under Manila's automotive export program where participating auto firms are required to export 10,000 vehicles annually with a minimum freight-on-board value of 5,000 dollars per unit.

Ford exported 13,327 vehicles worth some 190 million dollars to Thailand last year, consisting of Lynx and Escape models and Mazda's Protege and Tribute models. This is a sharp increase from the 2,785 vehicles exported from the Philippines in 2002, the department said.

Trade Secretary Cesar Purisima was quoted as saying that Fords' exports showed the success of the automotive program, remarking that the company was also buying components from local firms for use in models abroad.

Counting such components, Ford exports from the Philippines amounted to 450 million dollars in 2003, Purisima said.

Last October, Ford announced it was investing 50 million dollars to upgrade its manufacturing facility in the Philippines over the next several years.

Ford has only six percent of the country's domestic automotive market.
------------------------------------------------------------------------
good news for our exports!! but weren't the regulations for the incentives of the automobile export program requiring at least 10,000 completely built-up units (CBU) per year?? so I guess not all of the 16,000 will be exported as CBUs and instead some as completely knocked-down units for assembly in the export destinations. who knows? at the very least, 33,000 in 2005 and 40,000 by 2006 is still a huge leap from barely 2,000+ units of 2002...

wait... all 16,000 vehicles this year, 33k next year and 40k next next year are planned to be CBUs, according to INQ7's article... very, very good news...!!

wow! :eek2: imagine all the revenues and stuffs... will be really good for our economy! go Ford!!! :applause:

And there is also a recent article that they will export CKDs (completely knocked down). Ford is really boosting our economy with all these exports. Go Ford!

There is also a new report that Mitsubishi Motors Corporation-Philippines (MMC), despite being on the brink of becoming bankrupt, is developing a new small SUV to be built in the Philippines. They are targeting 2007 for the completion date of R & D and the start of exporting them to Thailand, Indonesia and Vietnam. MMC is making the Philippines as its regional hub just like Ford. So it is not only Ford that will be exporting vehicles out of the country.

Mitsubishi to invest R2 B for SUV production in RP

By BERNIE CAHILES MAGKILAT

Despite financial difficulties, Mitsubishi Motors Corp. (MMC) will pursue its investment plan in the Philippines saying that the R2 billion funding requirement for the production of a new sports utility vehicle (SUV) has been secured, a move that will transform the Philippines as its export hub in ASEAN starting 2006.


This was confirmed by Mitsubishi Motor Philippines Corp. (MMPC) president and chief executive officer Kengo Takase in a memorandum to business partners and employees following Daimler-Chrysler’s refusal to infuse additional capital to revitalize its parent company Mitsubishi Motors Corp. (MMC).

MMPC has already made representation with Trade and Industry Secretary Cesar B. Purisima of its decision to export a Philippine SUV model for exports to Vietnam, Thailand and Indonesia. Purisima said MMPC’s investment will create a 6,000 new jobs.

"A small new SUV to be manufactured at MMPC from 2006 for the Philippine market and export to ASEAN countries is already in the program and funding for which is not contingent of the Revitalization Plan,’’ Takase said in the memo.

Takase, however, did not elaborate where the funding for the Philippine project will come from.

MMC needs $6.5 billion to continue the revitalization of new products as its c ash flow projections can no longer support new product development scheduled for launching in 2006 onwards.

Following the withdrawal of support from its partner Daimler-Chrysler, which owns 37 percent of MMC, three other companies of the Mitsubishi Group and major MMC shareholders were quick to provide financial assistance to save the ailing Japanese motor company.

These firms — Mitsubishi Heavy Industries, Mitsubishi Corp. and Bank of Tokyo – have committed to support MMC’s financial requirements and to develop a new Revitalization Plan by the end of May this year. Together the three companies hold 22.9 percent of MMC.

With the assurance of financing from the three sister firms, Takase said that "MMPC will continue its operations based on its current product line-up and the launch of products in 2004 to 2006 which are already in the current MMC line-up but will be new to the Philippine market.’’

Takase further assured business partners that aside from the manufacture of the small SUV for the domestic market and for exports to ASEAN, MMC will also introduce to the local market — the Grandis, Montero Sport and others.

Takase also expressed confidence that the alliance between Daimler-Chrysler and MMC will continue due to the advanced stage of joint product development and parts design and manufacturing sharing.

"Given the situation, I have the confidence that MMPC operations in the Philippines will continue to be competitive and profitable,’’ Takase said.

MMPC’s decision to produce a new model for the ASEAN market was seen as taking advantage of the attractive Automotive Exports Program (AEP) of the BoI.

The AEP offers a net foreign exchange earnings in the form of tax credit to volume exporters of completely built-up units.

There you go! Thats what i was talking about:)

The mother company is in a heap of trouble since DaimlerChrysler pulled out.

MMC has been in trouble even before Daimler Chrysler decided not to inject more funding...In fact, they were in trouble when Daimler Chrysler hooked up with MMC. btw, Daimler Chrysler did not pull out. They just decided not to provide more funding... They still own a percentage of the company, 30% or something....

Actually Nissan was in a worse position than MMC is now. Lucky Renault came in and with the help of Carlos Ghosn (Nissan CEO right now, formerly from Renault) Nissan is now the most profitable car manufacturer in the world. It is however, still Japan's third largest.

Actually Nissan was in a worse position than MMC is now. Lucky Renault came in and with the help of Carlos Ghosn (Nissan CEO right now, formerly from Renault) Nissan is now the most profitable car manufacturer in the world. It is however, still Japan's third largest.
Hmm, didn't know Renault came to the rescue of Nissan. It seems that the Japanese carmakers are being taken over by those companies they were out to beat in the first place. Mitsubishi--DaimlerChrysler, Mazda--Ford, Nissan--Renault, how about Honda, has it begun showing signs that it's in dire straits, Toyota?

Honda and Toyota are doing well. Toyota is poised to becoming the world's second largest automaker soon (overtaking Ford). It is projected that they will become the largest by the end of the decade or so... Honda is also profitable. Nissan is now the most profitable car company that they could overtake Honda again (the used to be ahead of Honda before the mid-90s). A few years ago, Nissan even bought shares of Renault, a sign of its rapid revival.

here's a list of joint ventures/partnerships in relation to Japanese/Korean companies:
Toyota-Daihatsu
Honda
Nissan-Renault-Samsung Motors
Mitsubishi-Daimler Chrysler-Hyundai (but the hyundai partnership is dying)
Suzuki-General Motors-Daewoo
Mazda-Ford

anyways, im getting out of topic...:D

Well, whatever happens to these companies will surely affect our economy. :)

adb is forecasting rp's growth rate this year and next year at 5%, thats not bad at all though still lagging with our neibhours like malaysia, thailand, we hope that if gma wins the election well be able to restore investors confidence in our country, and the political situation will normalize we hope to see more investments coming in, export shooting up, more economic activities that will create more jobs all these will spur further growth for our country

i don't see Honda or Toyota being absorbed by another car giant.


hmm.. Nissan owned by Renault now.. maybe Renault should start putting some of their cars in the Philippine roads...or maybe it could be just sticking to Nissan..

RP economy to grow by
4.5% to 5.5% in ’04–ADB
Manila Times Internet Edition
Thursday, April 29, 2004


THE Philippine economy is likely to grow by 4.5 to 5.5 percent this year and largely on the strength of consumer spending, according to the Asian Development Bank (ADB).

“We assumed that a new administration would come in smoothly. We see a steady improvement in the economy from last year, with consumption and services again the major drivers of growth,” ADB assistant chief economist Jean-Pierre A. Verbiest told reporters at Wednesday’s launch of the “Asian Development Outlook 2004 Report.”

The ADB said the country’s economic growth has been driven primarily by private consumption, which showed a 5.1-percent rise in 2003, the fastest rate since 1990.

In particular, spending on food, and on transportation and communications services rose.

Private consumption spending contributed 4 percentage points to overall gross domestic product (GDP) growth.

Private consumption growth is projected to remain strong at 5.5 percent this year, while government consumption will register a marginal growth of about 1.5 percent.

Spurring growth in private consumption would be the continued expansion in remittances from the country’s seven million overseas workers.

Remittances increased by 6.3 percent to reach $7.6 billion in 2003, accounting for 7.5 percent of GDP.

“Remittances are of paramount importance because they enable the economy to run a current account surplus, in 2003 at 4.2 percent of GDP, down from 5.6 percent a year earlier,” the report read.

Verbiest said the government will have to address the heavy fiscal deficit and consequent debt burden, poor investment climate, lack of capacity of the economy to generate employment, and a high rate of population increase, for the economy to improve more rapidly.

The ADB economist said the improvement of physical infrastructure, which has been weak due to the lack of investments, is a difficult thing to do on the face of fiscal constraints.

However, this is a very important issue for local and foreign investors since this improves their competitiveness.

“I think the bottom line is the economy needs to raise investment rates, which is the only way to achieve higher growth and to generate more employment,” the official said.

Foreign direct investments into the Philippines dropped last year to $319 million, from $1.8 billion in 2002.

Although largely due to political uncertainties that deterred investors, long-term concerns had an impact as well, the ADB said.

“Investors do not regard the country as competitive, in part because of a lack of good infrastructure, so foreign direct investment would seem to have been lost to other locations,” the report read.

The report notes that there are complex factors that work together to inhibit vitally needed foreign investment in the country.

“The budget deficit results, directly, in low levels of public investment,” the ADB said.

“The lack of public investment in infrastructure deters private investors. Then, the financing of the large deficit keeps interest rates relatively high for private investors and reduces funds available for private investment,” the report further read.

The country’s large budget deficit puts upward pressure on interest rates even when the central bank is trying to lower rates to stimulate investment.

The authorities have little room to maneuver given that nearly a third of the budget is dedicated to debt servicing, so that other government spending has to be restricted to control the deficit, the ADB said.

“What will happen to international interest rates is one issue to be looked at in the case of the Philippine economy since an increase [in international interest rates] means an increase in debt servicing,” Verbiest said.

Other areas of the economy looked promising, the ADB said.

Agriculture is forecast to pick up by 3.7 to 4.7 percent in 2004 and 2005. Industry is expected to improve by 3.6 to 4.8 percent, led by a stronger manufacturing sector and a rise in public construction from election-related spending.

The services sector is expected to grow by 5.5 to 6.3 percent. Brisk growth in the rest of Asia, and improved global demand for electronics products, which represent about 70 percent of total exports, will help the economy as well.

But challenges remain in dealing with interconnected issues of unemployment and population growth, the ADB said.

Unemployment remains high and is a major cause of poverty.

In 2003, unemployment stood at 11.4 percent of the labor force. This is a reflection of the country’s lack of capacity to generate enough employment to keep up with the growth in the labor force, itself a function of the rapidly rising population.

“Unless major economic and political reforms are accomplished, it will be extremely difficult for the country to lift its potential growth rate, which is about 5 percent now; or to escape the vicious circle where capital scarcity implies low incomes, low incomes imply a limited capacity to save, and limited savings lead to limited investment and capital scarcity,” the ADB said.
-- Elaine Ruzul S. Ramos

i don't see Honda or Toyota being absorbed by another car giant.


hmm.. Nissan owned by Renault now.. maybe Renault should start putting some of their cars in the Philippine roads...or maybe it could be just sticking to Nissan..

That is a possiblity. Renault entered the Indonesian market through Nissan, recently. Last year, Peugeot returened to the Philippines after decades of absence so Renault might do the same. Actually, Renault doesnt own Nissan, it just has the majority share.

@ Jerico's article - VERY exciting news!:applause: Other economic watchers like the IMF, WB are only setting targets of 4.0% increase, but ADB believes Philippines will grow as high as 5.5% this year. And if i am not mistaken, ADB is usually the most reliable source and is often close to the actual. I would be very happy if our GDP grows more than 5.0% this year. According to analyists, ideal growth would be 6% or more to see real changes and improvements. I hope ADB's projections are true.

Even now (last year), with growth of about 4% we are seeing lots of new projects and investments. Even more when GDP grows more than 5 and 6%.... Our only problem now is our HUGE budget deficit due to corruption, dismal budget collection and the lack of investor confidence.

We should see the economy grow in record growth after the elections (thats if FPJ doesnt win) as investors, consumers, etc will be confident. Boom, Philippines, Boom!:)

That is a possiblity. Renault entered the Indonesian market through Nissan, recently. Last year, Peugeot returened to the Philippines after decades of absence so Renault might do the same. Actually, Renault doesnt own Nissan, it just has the majority share.

yeah, Peugeot has a 306cc in Subic i think. imo it's sexed up there, 306 is so common here in Europe:D but it's design is different compared to other cars in the philippine roads.

though they will have a tough time against Japanese cars..

Yeah the models they sell in the Philippines are 206, 306 and 306cc. They have a showroom in Ortigas and one opening in Makati this year.

those models have no "lookalike" around MM. must be a strategy

GOV'T BORROWING BLAMED
Ex-treasurer warns: 'Debt
volcano' about to erupt
Posted: 0:58 AM (Manila Time) | May 02, 2004
By Volt Contreras
Inquirer News Service

UNABATED borrowing by the administration of President Gloria Macapagal-Arroyo in the last three years has brought the Philippines to the brink of a serious debt crisis which could explode in the face of the winner of this year's elections.

Former National Treasurer Leonor Briones, who likened the debt scenario to a seething "debt volcano," issued the grim warning on Saturday as she foresaw the country plunging into a debt crisis with the government's payables now placed at over five trillion pesos.

If Ms Macapagal loses, Briones told a media forum, her successor would surely have to absorb the impact of the "debt volcano's" eruption.

Briones, who headed the Bureau of Treasury in the administration of President Joseph Estrada, spoke as a convenor of Social Watch Philippines, a member of an international network that monitors poverty reduction around the world.

Succeeding administrations would simply have "no more money left for the poor and marginalized" as debt payments eat up a growing portion of the national budget each year, she said.

"If a new President is elected, the effects of (Ms Macapagal's) policies will be felt for at least a year or maybe more. When the debt volcano explodes, the new President will surely be blamed," Briones said at the weekly media forum at the Sulo Hotel in Quezon City.

Citing figures from the Department of Finance, Briones said the country's public sector debt stood at 5.16 trillion pesos as of 2002. From 2001 to 2002, she noted that the government debt soared by 759 billion pesos.

The surge in government borrowings pushed up the national government deficit to 199.9 billion pesos in 2003. Total consolidated public sector deficit, which covers local governments and state corporations, reached an "all-time high" of 244.6 billion pesos, she said.

With the interest payments on old debts being paid off with more borrowings, the share of debt payments in the annual national budget swelled from "18 percent in 1999 to 31 percent in 2004."

Briones also disclosed that the allotment for debt service almost doubled or grew by 97.5 percent in the last four years and by 2004 it has become the single biggest slice of the budget pie.

All other programmed government expenditures, especially for social services like health, welfare and education, shrank as more funds went to debt payments, Briones said.

"The best source of funding for paying off our debts is supposedly trade -- when we have more dollars earned over (that spent on) imports," she explained. "But if the trade and revenue collections are in poor shape, you are forced to borrow."

Briones said that the winner of the May 10 elections should come up with drastic measures, starting with increased tax collections, to remedy the dire situation.

The SWP, she said, now doubts whether the Philippines can meet its obligations under a 2000 United Nations agreement, the Millennium Development Goals, which called on 189 countries to reduce world poverty by 50 percent by 2015.

those models have no "lookalike" around MM. must be a strategy

Yeah, the 206 and 306 are doing quite well, despite Peugeot being not very well known in the Phils.

well it must be the design, i don't know anything like it in the country

here's the 206, the nearest thing i'd say is the Toyota Vitz/Yaris

http://carstyling.net/gallery-data/be/2002/revolutionstreetperformance/052.jpg

And the thing is Toyota Echo/Vitz are so expensive in the Philippines. So the closest competition the 206 has is the Honda City and Toyota Vios which are sub-compact sedans.

BPO bops up the future
By JOSE VILLANUEVA
Reporter

Call-center operators expanding into the Asian region say the Philippines is seen to benefit from a “lasting” growth in offshore outsourcing, which they say is only just starting.

In their view, business process outsourcing (BPO) will keep growing for years with European and American consumers requiring increasingly complex services from companies. Experts believe outsourcing is not likely to die out as a trend, even with the United States economy emerges out of recession because managers not only find it reduces operating costs, it also raises productivity, thereby fattening profit margins.

In the US, where job growth has recovered slower than the broader economy, outsourcing has emerged as a hot election issue, with critics complaining that Asian workers are stealing American jobs. In reality, though, outsourcing barely makes a dent on the US labor market, experts have said recently.

The implication is that there is still a lot of room for growth in the BPO market -- especially with economies across the globe sparking new business as they gain further ground -- and more and more companies are expected to incorporate outsourcing in their operations since it provides them a cheaper and more flexible business structure and helps spur innovation.

Intellirisk Management Corp. chief executive Vikas Kapoor said BPO is not “a bubble that will burst,” but a global market that will continue expanding as constant product and service innovation by companies drive need for customer services.

Kapoor thinks the market will be large enough for India and the Philippines combined -- two of the hottest sites competing for the offshore outsourcing business. Both countries are high on the priority list for BPO outfits because of their English proficiency (which means no communications barriers with Western customers), cheap high telecommunications infrastructure, and technical skills.

But many think the Philippines will lead ahead. One British executive who recently put up a call center in Manila claims that the country’s phone lines and telecommunications services are “more advanced” than they are in India. A US immigration expert specializing in labor, also said last year that Americans find speaking with Filipinos easier than with Indians, who usually have a very thick accent and don’t have a close cultural affinity. Filipinos, he cited, can imitate an American accent flawlessly, which puts customers at ease.

Trade Secretary Cesar Purisima took these claims a step further last week by boasting that the Philippines is in a good position to take half of the global call-center industry within the next decade. Although still behind India, the country has a 20-percent share, thanks to the government’s efforts in promoting the sector overseas.

Intellirisk will be opening a call center in Manila by September or October, with about 500 call-center agents in place within the year. The Columbus, Ohio company chose the Philippines as one of two sites in which to set up, impressed with the country’s talent pool and technology infrastructure.

Call centers, which are outsourced customer service, dominates the BPO business, which also consists of professional services like accounting, legal work, and IT services. Purisima said he expects call-center seats to double to 80,000 by next year, with massive BPO foreign investment forthcoming.

Kapoor said he discovered the opportunity to expand to the Philippines when he met Ambassador Roberto Romulo, senior presidential adviser on international competitiveness, at a Philippine BPO roadshow in New York coinciding with President Arroyo’s state visit to the United States last year.Kapoor claims that some Intellirisk clients were even the ones encouraging the company to set up in Manila. One American call center in particular had even provided an option to clients to indicate whether they wanted their call handled in Manila. The Intellirisk chief executives said this was selected 80 percent of the time.

Intellirisk, which corners 10 percent of the US accounts receivable collection market, plans to set up what it calls an “analytics” team that would use information from clients to predict when a customer is likely to get into payments difficulty, and determine what actions to take to help them out.

Kapoor said Intellirisk’s investment in the Philippines would serve as a pilot test for the service, the first of its kind in the country, before bringing it up on a larger scale.

The company has 22 call centers in the US and Canada plus two in the United Kingdom, employing a total of 6,000 people and generating annual revenues of $300 million. Operations involve financial institutions, telecommunications companies, cable companies, health-care providers, utilities and governments.

“I’m happy to have the cost advantage but the primary thing I’m looking for is an improvement in the quality and calibre of our communications with our clients,” said Kapoor. “So it’s very important for me to access sophisticated technology talent and sophisticated analytics talent and then apply it through sophisticated technology in the call center.”

During his visit to the Philippines, Kapoor toured facilities in the Clark and Subic economic zones and in Cebu. He even listened in on some of the calls and found the quality of customer handling to be very high.

“One place where I think the Philippines has a distinct advantage is that the people are culturally more familiar with American situations,” he said. “And the technology and infrastructure is as good as anywhere in the world.”

“The American consumer is seeing a quality improvement by having their call handled in the Philippines,” Kapoor said. “I believe it’s very important for us and for other companies to focus on that quality improvement and less on the cost or price of the service.
---------------------------------------------------------------------------------
this is great news for our BOP industry! we just really, really need the gov't and these private companies to continue improving facilities and the work force of the country in order to get ahead and stay ahead in this very competitive yet highly potential industry. I would hate to see us start to lag behind just after globaly leading the pack. that has happened so many times in this country because of gov't and public neglect...

Customs continues to exceed targets rising imports

The government’s efforts to narrow the budget gap received a strong boost over the weekend after the Bureau of Customs reported that it again exceeded its monthly collection goal, officials said Sunday.

According to BOC Commissioner Antonio Bernardo, preliminary reports for the month of April showed that a total of P10.556 billion in customs duties were collected last month.This is 17.5-percent more that the P8.992 billion it committed to remit to the government’s coffers for the period. On a year-on-year basis, last month’s collection represented a 19.9-percent increase over the same period last year.

Bernardo said collections were boosted by the weakness of the peso against the U.S. dollar (since payments are dollar-denominated), and the importation of more finished petroleum products “which have higher values and tariff rates than crude oil.”

In addition, Bernardo said his agency also monitored higher import volumes of dutiable goods during the period.

In recent months, BOC has also benefited from higher imports of the semiconductor and electronics sector against the backdrop of a cyclical uptrend in global demand. It is also benefiting much from the transfer of the collection of value-added taxes from customs bonded warehouses.

“But most important of all is the dedication and commitment of Customs personnel in response to stricter, closer, and more scientific collections,” he said.

Bernardo explained that collection reports are now submitted by field units on a daily basis which allows the central office to do “immediate follow ups” when a certain port is observed to be lagging behind its target.

Under this scheme, detailed collection reports and are plotted and analyzed at the executive committee level “so that management action can be taken expeditiously to improve collections,” he said. D. Lucas
---------------------------------------------------------------------------------
imagine how much higher those figures could soar up into if only corruption and leakage was totally ruled out...! can't help thinking about how our country could have been as great as Malaysia, Thailand, Hong Kong and even Singapore. I believe we do actually have the money for development, but corruption has eaten it all up.

Its good to hear some good news shining in the Philippines! Hopefully the PI will do even better as this year moves on! :applause:

don't count your chickens.... so many conflicting analyses...

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2004&mon=05&dd=03&file=1

Philippines seen facing high risk of crisis
Posted: 1:18 AM | May 03, 2004
Doris C. Dumlao
Inquirer News Service


THE PHILIPPINES is facing more risks of another financial crisis than any
other emerging market in Asia although its potential vulnerabilities are below
alarming levels for now, American investment bank Lehman Brothers said in a
recent report.

In the first-quarter update to its Damocles Financial Crisis Index--a
proprietary early warning system that helps identify the risk of a financial
crisis in emerging economies--Lehman Brothers cited concerns on the country's
public debt, financial sector, low foreign exchange reserves, and political
environment.

The Damocles index is based on 10 carefully selected macroeconomic and
financial indicators seen as useful in forecasting crises, either banking- or
currency-related. It assigns points to various indicators, wherein the lower
the score, the better tidings for the monitored economy.

If the 10 variables total 75 points or more, Damocles warns that a country's
balance of payments position is vulnerable to a crisis while a reading above
100 signals that that a crisis can erupt at any time.

The Philippines' score stood at 50 based on the Damocles update, the same as
its risk weighting in December and still below the threshold set by Lehman
Brothers at which red flags must be raised.

However, the report said the Philippines' score was likely to deteriorate over
a one-year period. It was also much higher than the average score of 17 among
emerging markets in Asia, which, overall, was considered by the Damocles index
as the least vulnerable region of the world's emerging markets.

The Philippines' score was also the poorest among other Asian countries
covered by Damocles.

China, Hong Kong, Indonesia, and South Korea were given respective ratings of
10, 10, 11, and 24 and these were expected to trend downward or improve over a
year's time.

Singapore's index rating was held steady at 10, reaffirming its low level of
crisis risk, with an outlook that the score would improve over a year's time--
despite risks of contagion from the Philippines and Indonesia that might arise
from their respective presidential elections.

Thailand obtained the best score of zero, which Lehman expected to remain
stable for over a year.

Malaysia was given a score of 10, likewise with an outlook that the same
rating would remain over one year.

The only monitored Asian country aside from the Philippines whose score was
seen as likely to deteriorate in a year was Taiwan, but it had a much better
rating of 24. Among the concerns cited in Taiwan were domestic politics as
well as the fragile relations with mainland China.

"Investors should not treat the region as a homogenous entity," cautioned Rob
Subbaraman, Lehman Brothers' senior economist for Asia. "There are pockets of
risk, most notably in the Philippines," he said.

On the contrary, Singapore was cited as having the strongest external position
in the world.

Overall, the Damocles index report indicated that Asia was still the most
favored destination of global capital inflows so far, given improved
structural policies, strong economic recoveries, and the low level of global
interest rates.

The Lehman Brothers report measures the levels of crisis risk in Argentina,
Brazil, China, Hong Kong, Hungary, Indonesia, South Korea, Malaysia, Mexico,
Philippines, Poland, Russia, Singapore, South Africa, Thailand and Turkey.

The latest report noted that the emerging market macroeconomic and financial
environment was "relatively benign" for now, but warned against complacency.

copyright ©2004 INQ7money.net all rights reserved

yeah thats bad...but here is some good news:

Growth is trickling down

The GDP of the Philippines will grow by as much as 5 percent in 2004. This will be fueled by continuing strong consumer spending, strong exports and an agricultural sector growing at an above-average rate of more than 3 percent, thanks to good weather. There is no expectation of El Niño this year. The Government – whoever wins the May 10 elections – is expected to continue pouring significant resources into irrigation systems, farm-to-market roads and other rural infrastructures. The focus on countryside development is irreversible.


A 5 percent growth of the Philippines will still be below the average in most of East Asia. Thailand is expected to grow at close to 8 percent. China continues to sizzle at over 8 percent. Even India registered an amazing GDP growth of close to 10 percent in the first quarter of the year. Despite the temporary darkening of the investment horizon in the Philippines as a result of the political turbulence caused by the elections, the large domestic market of the country coupled with the recovery of our major trading partners, i.e. the U.S., Japan, AFTA and China, have led to a brightening of the business mood during the period after Holy Week. Businessmen have become more optimistic as they have realized that whoever wins in the elections, the momentum of growth for the whole year has already been set. Even the exchange rate has improved. My own expectation parallels that of Governor Rafael Buenaventura. The peso will settle at the range of R54 to R55 to a US dollar by the end of the year. The downside is an uptick in inflation that will be a little over 4 percent for the whole year. Higher inflation will be fueled by increases in oil prices and other energy products. Thanks to a more open economy, food prices are being kept under control by food imports from neighboring Asian countries.

The doubting Thomases will say as usual that the growth is not trickling down to the masses. My own observation in my travels to the regions is different. I see signs of the C, D, and E households also benefiting from higher coconut prices, the larger volume of rice production, the proliferation of small farms producing high-value crops like vegetables and fruits. For example, I made a recent trip to Bataan and Zambales and was greeted along the roads by the sight of a bumper crop of mangoes, among the sweetest in the whole country. These mangoes come from very small farms and are supplementing the incomes of households in these provinces.

The continuous expansion of malls and other shopping centers to more remote areas in the provinces are also signs of the increased purchasing power of the masses. The aggressive application of the “tingi” or “sachet” approach to the cell phone business is another sign of increased purchasing power in the hands of the lower-income groups. I suppose that the trickledown phenomenon is also strongly backed up by the more than US$500 million (close to R30 billion) that are remitted to their relatives every month by the more than 7 million Filipino overseas workers.

One very positive trend that can accelerate the trickling down of growth to the countryside, where poverty is more pervasive, is the “industry clustering” strategy being fostered by the Philippine Chamber of Trade and Industry (PCCI) in partnership with local government officials and nongovernmental organizations. This program is similar to what is being implemented in Thailand by the Thaksin government. Each village focuses on an industry in which it has a competitive advantage because of its factor endowments. Examples of industry clusters in the Philippines are carved wood products in Paete, Laguna; embroidery products in Taal, Batangas; furniture products in Cebu; bangus in Dagupan; cut flowers in Baguio, etc. Under the leadership of current PCCI President Noemi Saludo, the PCCI is encouraging the growth of small and mediumscale enterprises all over the country on the basis of industry clustering. In a recent economic briefing I gave in Zambales, I suggested to the entrepreneurs there to identify all the small and medium-scale enterprises that can cluster around the mango industry, e.g. nurseries, orchards, agricultural services, post-harvest facilities, fruit processing and distribution. The clustering strategy will go a long way in strengthening the economic base of rural areas that do not have to be limited to farming activities. Farming can co-exist with numerous smallscale manufacturing operations and services.

The service par excellence that can supplement agriculture in the countryside is tourism. To illustrate this, let me quote an email I received from Mr. Dexter Cabello of the province of Pangasinan: “So much money has been poured in promoting the country’s tourist spots, it’s about time that we prepare our people in the grassroots level to be conscious of the needs of the tourists. Even if we spend huge amount of funds for marketing and promotion of our country, if our countrymen living in the vicinities of these tourist spots continue to treat tourists as objects of abuse, then everything will just be in vain.

“We are very glad, however, that a program was conceptualized known as “Tourism Village’ similar to the economic entrepreneurial village (cluster) approach of Thailand’s Prime Minister Thaksin Sinawatra. Under the program, the host communities of major tourist destinations will be converted into tourism. This will empower all the tourism stakeholders as ambassadors of tourism in their respective tourism zones. Instead of a product based approach of Thailand’s Sinawatra, wherein members of a community are involved from raw materials sourcing until finished product packaging, we shall enhance and integrate the services of the vendors, tour operators, resort owners, tricycle drivers, barangay leaders into a single tourism assembly line type with the objective of ensuring repeat guests and visitors. We are thankful that our very own Hundred Islands was chosen as one of the recipients of this program.

“It is worthy to note that there are government agencies like the Philippine Tourism Authority who remain focused and creative in delivering services to the people. Allow me to extend in behalf of the tourism stakeholders our sincerest gratitude to the general manager of the Philippine Tourism Authority (PTA) Mr. Dean Barbers, for initiating this project.”

There are many other tourism destinations in the Philippines that can take the cue from the Hundred Islands example. Community-based tourism can do much to address the problem of rural poverty. For comments, may email is bvillegas@uap.edu.ph.

Good news indeed!But I wish GMA wins the upcoming election. Foreign investors are much confident in investing in the Philippines if GMA still remains in the position. But for now I think foreign investors see the Philippines a risk area to do business much because of raucous situation in our country today.

Q1 exports rise 6.3%
ABS-CBNNews.com

The country’s total merchandise exports jumped close to 6.3 percent in the first quarter of the year as the sector continued to benefit from the strong recovery of the United States and Japanese markets, as well as the economic boom being experienced by China.

Trade Secretary Cesar Purisima reported Monday that the country’s total merchandise exports reached $9.19 billion from January to March this year compared to $8.64 billion in the same period last year.

He pointed out that the growth in the first quarter of the year could be attributed to the improved global economy due to the continuing recovery of economic superpowers such as the U.S. and Japan, as well as the strong performance of China.

“The exports’ performance is buoyed by the growing China economy and the continuing recovery of the US and Japanese economies,” he said.

The Department of Trade and Industry (DTI) is confident that the country’s total merchandise exports would expand by 6 percent this year. Last year, the country’s total merchandise exports inched up by a measly 1.5 percent to $35.751 billion from $35.208 billion in 2002.

“The cumulative exports growth of 6.27 percent also indicates that the country’s exports are on track. The DTI expects exports to grow by 6 percent for 2004,” Purisima stressed.

For the month of March alone, Purisima said total merchandise shipments went up by 7 percent to $3.35 billion from $3.13 billion in the same month last year.

He reported that electronics exports last March jumped 9.8 percent to $2.24 billion from $2.04 billion in the same month last year. Semiconductor devices grew 6.38 percent and accounted for about 65.28 percent of the total exports for the month of March.

“We see a positive trend in the growth of the electronics and semiconductors exports due to the shift in demand in consumer electronics [digital cameras, flat TVs] and the recovery in the country’s leading markets like U.S. and Japan who are our major buyer,” he added.

According to him, the export growth is also manifestation that the government’s export program is a solid platform for development.

On the other hand, garments and textile still emerged as the country’s second-top dollar earner as it accounted for about 5.4 percent of the total shipments last March.

However, shipments to the U.S. dropped 6.31 percent.

For the month of March, Japan emerged as the major destination of Philippine-made products as it accounted for 20.24 percent of the total shipments. Shipments to Japan also jumped 42 percent and managed to offset the 15.44-percent decline in the shipments to the U.S.

The Netherlands, an important port of entry to the European Union, accounted for 11.7 percent of total Philippine exports.

“We are seeing a sustained growth trend in our exports to E.U. We are pushing for the entry of more Philippine products to target the E.U.’s single market of 450 million. We are working closely with the private sector in improving the quality of Philippine products exported to our major markets including meeting the phyto-sanitary requirements and standardization measures of these countries,” Purisima said.

Exports to China, Hong Kong, Malaysia and Singapore also posted steady growth.

Exports to China had the fastest growth rate at 22.68 percent followed by Singapore and Taiwan which had double-digit growth rates at 11.32 percent and 10.28 percent respectively.

“The rise in our exports to our Asian neighbors can be seen as an indication of a growing intraregional trade and that Asia as a region as becoming less dependent on the rest of the world,” he said.
----------------------------------------------------------------------------------
thank god the electronics industry is finally picking up its pace again...! we did pretty bad in terms of exports last year. hopefully, the 6% export increase will push through to the end of the year with world economies being revived...

Thank God, indeed! Exports are very important to the growth of any economy. And good thing the electronic industry is up, which really helps us as that is our main export.

Glad that Mitsubishi is really pushing through their investments in the Philippines, despite being in big debt trouble. Their exports of vehicles will really help our economy. We have already seen this with Ford which has boosted our export profile. These car manufactureres also provide lots of employment.

Did you know that 80% of all ABS systems used by BMW, Mercedes-Benz, Volvo and other car brands come from the Philippines?
Also, almost all Honda manual transmissions are made in the Philippines.

Look at what polls can do, imagine if La Gloria wins!

Stocks up 2.17% on hopes of Arroyo victory

Share prices closed sharply higher Wednesday on the back of Wall Street's overnight gains and as investors welcomed the result of a major exit poll indicating victory for incumbent president Gloria Arroyo, dealers said.

Dealers said the local market's rebound was also helped by gains in other regional bourses.

The 30-company composite index closed up 32.70 points or 2.17 percent at 1, 540.96 on volume of 166.9 million shares worth P477.5 million. It moved between 1,512.21 and 1,547.00.

Gainers dominated losers 30 to 10, with 45 stocks unchanged.

Top-traded Philippine Long Distance Telephone Co. closed up P35 at P1,060 on 125,220 shares, as it tracked the overnight gains of its American Depositary Receipts, which closed up $0.39 at $18.66.

An exit poll conducted by the Social Weather Station showed that Arroyo, the financial markets' favorite, is likely to have defeated her main rival, filmstar Fernando Poe Jr., in the presidential election.

The SWS poll showed that Arroyo garnered 41 percent of the vote as against Poe's 32 percent. Another independent poll conducted by the National Movement for Free Elections also showed Arroyo leading the race.

"Investors have somewhat started to calm down. The conduct of the election was generally peaceful and the result of a major exit poll indicated there will be continuity in the reforms and programs of the government," Regina Capital Development Corp. analyst Gomer Tan said.

Dealers said Tuesday's sharp decline in the market also gave investors enough leeway to re-enter the market.

"Today's rise is more a technical rebound than anything and the Philippines is not an isolated case. A lot of investors in the U.S. who were caught long pulled out their money in Asia (earlier this week). We now see things settling down in the region," Westlink Global Equities research head James Lago said.

Please send your comments or feedback to newsfeedback@abs-cbn.com
abs-cbnNEWS.com monitor

I know...everything seems like its set once GMA wins. If (hopefuly she does) she wins, our economy will boom, as investors are quite secure with her administration.
For the sake of our country, SHE SHOULD WIN!:)

my opinion is just "anyone but FPJ". i do hope if GMA does win, she will do a better job, much much better.

Call centers boost take-up of offices in Makati district
By Cathy A. Garcia
TODAY Senior Reporter

Amid signs of economic recovery in the Asia-Pacific region, demand for commercial property continued to strengthen in the first quarter of the year, according to Jones Lang LaSalle’s Asia-Pacific Property Digest.

In the Philippines, the booming call-center industry boosted office space demand in the Makati central business district in the first three months of the year.

Jones Lang LaSalle Asia-Pacific research head Dr. Yu Lai Boon said the office sector in financial centers Hong Kong, Tokyo and Shanghai are likely to improve with the improved domestic economies.

“Shadow space or subleased space placed in the market by existing tenants has shrunk as corporates continue to build up their requirements. This has translated to a net improvement in absorption and will help to strengthen office rentals,” Yu said.

In the first three months of the year, Makati vacancy levels dropped by 6.9 percent year-on-year and by 1 percent quarter-on-quarter. As a result of increased demand, rental levels increased by 5.1-percent year-on-year and by 3.8-percent quarter-on-quarter. Capital values jumped by 7.1 percent from year-ago levels and by 6.3 percent from December levels.

In its Philippine property market monitor, Jones Lang LaSalle said the decrease in vacancy levels is driven by the demand of call centers for new office space and of companies for better facilities.

“As a result of this healthy demand, average effective rents rose by 2.29 percent to about P3,290 per square meter per annum over the three months to end-March... Call centers are now demanding to build-to-suit facilities to cater to their specific needs. Quick rollouts and good floor layouts are some reasons cited for the emergence of build-to-suit projects,” the firm said.

Total Grade A office space in Makati central business district stood at 1,029,000 square meters, as of end March. There are no new Grade A office spaces expected to enter the market until end-2004 or early 2004, when the 15,800-square-meter PeopleSupport Center will be completed.

“In view of this lack of new office supply, vacancy levels are likely to improve over the next three to six months,” it said.

For the retail sector, Jones Lang LaSalle’s Yu said retail space and rental growth were sustained by better sales from domestic spending and influx of tourists. “This sector has been the most resilient in terms of rental performance when compared to the other sectors of the property market. The defensive characteristic of the sector and its relatively higher yields have resulted in many property funds increasing their portfolio weighting for such properties,” Yu said.

In Manila, prime retail space remained reasonably strong for the first quarter of the year. Vacancy rates dropped 0.1 percent from year ago levels, but improved 0.2 percent from the December levels. Rental rates as of end-March increased by 1.4 percent from the same period in 2003, but this was only 0.5-percent higher than last quarter.

However, Jones Lang LaSalle expects retail sales to stay at same levels or to slightly drop, because of the slower remittances from overseas Filipino workers.

“This [lower remittances] could affect retail sales as relatives of OFWs control their spending. Retail sales are expected to remain steady or weaken slightly in line with the expectation that consumers’ income levels will remain unchanged,” it said.

For the rest of the year, there are four shopping malls with a combined 300,000 square meters of store space expected to be added, including the SM Makati expansion, Ayala Land’s Market! Market!, Araneta Center’s Gateway Mall and Robinsons Metro Gateway Mall.

“This significant amount of new retail space is expected to place upward pressure on vacancy rates,” it said.

As for the residential market, Jones Lang LaSalle said most for the supply remained focused on the middle-income and low-end market projects. Most of the middle-income projects are in the Bonifacio Global City, while the high-end residential market is starting to perk up with the construction of The Residences at Greenbelt and the Shang Grand Tower in Makati City.
--------------------------------------------------------------------------
good news!!! we should see the boom in office space in a few months. maybe one or two new towers will come up...!!!

Sweet...indeed, more call centers and other office demand will really push for construction of new office towers.:cool:

well recently, office towers have been built by large local companies, like PBcom, Philamlife, GT (Metrobank), and RCBC.

Rockwell needs a tall building for the large businesses of the Lopezes, and BPI too..

Exporters may lose preferential treatment in U.S. due to IPR violations

By LAWRENCE AGCAOILI
TODAY Reporter

The Department of Trade and Industry (DTI) is concerned that local exporters may lose preferential treatment in the American market after the United States Trade Representative (USTR) office retained the Philippines on the watchlist of countries with rampant intellectual property rights (IPR) violations.

Trade Secretary Cesar Purisima said as much as $700 million worth of Philippine exports to the US are in peril of losing preferential market access under the Generalized System of Preferences (GSP) scheme after the Philippines was retained on the Super 301 priority watchlist for the third straight year.

“If we keep on staying in that priority watchlist, the US, if they want to, can do certain things. For example, the GSP that they give us unilaterally, for which I think our exports to the US amounts between $600 million and $700 million, we could lose that benefit,” Purisima lamented.

The Philippines has been tagged as a haven of IPR violators anew for the third straight year this year. The country was elevated to the priority watchlist in 2001 from the ordinary watchlist where it languished since 1997. In 1997, the country was removed from the priority watchlist and was moved to the ordinary watchlist with the enactment of the IPR Code.

The USTR office cited in its 2004 Special 301 report that there are serious concerns regarding the lack of consistent, effective, and sustained IPR protection in the Philippines.

Philippine exports enjoying duty-free treatment under the US GSP ranged between $600 million and $700 million last year after reaching a record high of $1 billion in 2000. The Philippines emerged as the sixth-leading beneficiary country after Angola, Thailand, Brazil, Indonesia and India.

In 2002, the US government has approved a five-year extension of its GSP program until the year 2006 after President George Bush signed the Omnibus Trade Bill.

The US GSP is a program whereby the US grants preferential duty treatment to imports from 100 designated beneficiary developing countries including the Philippines and 39 developed nations.

To prevent losing the duty-free privileges, Purisima met with Optical Media Board chairman Edu Manzano, Intellectual Property Office representatives Nathanial Arevalo and Carmen Peralta to make sure that institutional reforms are undertaken to strengthen the campaign against IPR violations.

“We agreed to work together closer to make sure that we initiate institutional changes,” Purisima said.

These changes, according to him, include initiatives involving the private sector such as mall owners to police their own ranks or tenants to comply with IPR laws. He cited the memorandum of agreement between the Business Software Alliance and the Contact Center Association of the Philippines for the audit of the software used by call centers in the country.

“Instead of police action, we want to get organizations to work together so that they institutionalize policing measures in compliance of IPR laws,” Purisima added.

The DTI is also working together with the Bureau of Customs are also exploring ways to curb the entry of fake and pirated goods in the country.

Good thing I don't buy pirated Vcd's anymore.

Enzo has moved on...

EZ, man who built modern makati, dies
Posted: 1:13 AM | May 18, 2004

Joan Orendain
Inquirer News Service

ENRIQUE Zobel y Olgado -- corporate giant, philanthropist and maverick who inspired social responsibility among Filipino businessmen -- died on Monday morning at the Asian Hospital from respiratory complications.

He was 77. His wife Dee Hora Zobel and son Iñigo were at his bedside.

As chief executive officer of Ayala Corp. from 1968 to 1983, EZ, as he was called by close friends -- others called him Don Enrique -- brought about many radical but noteworthy changes to the whole Makati business sector.

He was instrumental in transforming a swampland into the future Makati business district from the drawing board of his uncle, American Joseph McMicking.

Fresh from college studies in Agronomy and Animal Husbandry in the United States after the war, EZ started out in the family-owned Ayala Corp. as a mechanic. He was always proud to point out that he personally bulldozed the area around Buendia Avenue (now Senator Gil Puyat Avenue) up to the railroad tracks.

In World War II, with his father Colonel Jacobo Zobel away fighting in Bataan province, and with all the banks closed by the Japanese, the 15-year-old EZ worked to support his mother. He hitched his polo ponies onto a "carretela" [horse-drawn carriage] and took fares.

These ponies had been commandeered by the Japanese, but he retrieved them in exchange for Spanish lessons for the dreaded "kempeitai" chief, Colonel Ohta. Months later, Ohta would lend the audacious boy a car with which to bring home his ailing father from the war prisoners' camp in Capas town in Tarlac province.

As head of Ayala Corp., EZ was the first executive to bring in foreign investors after American corporations sold their firms to Filipinos with the prescription of the Laurel-Langley Treaty. He liked to recount how upset his colleagues had been when he asked his company's labor union to assume a seat on the board. He also liked to say that his company and Bank of Philippine Islands, of which he was president from 1974, then chairman from 1980 to 1985, never experienced a labor strike.

A keen polo player, EZ won countless international matches over five decades, receiving trophies from the King of Spain and other heads of state. He built the Sotogrande in Spain, called the "playground of kings." He was credited with exercising polo diplomacy, inviting erstwhile non-friendly sultans of Malaysia and Brunei to come together to play the game.

Airplanes and flying were a mania. EZ piloted his own planes and helicopters all over the world, until shortly before his accident in 1991.

Trotting his horse Juanita away from the field after practicing for a match in Sotogrande, he fell and was paralyzed from the neck down. He was confined to a wheelchair for the rest of his years, but the affliction hardly deterred him from espousing a wide range of causes, including the Muslims' quest for equal opportunities.

Earlier, seeking to give the business community a voice against the ills of the Ferdinand Marcos dictatorship, he formed the Makati Business Club in 1980.

After his accident, EZ continued to meet with a broad range of people. Politicians, military officers, men of the cloth, and labor and urban poor leaders were all welcome to receive his counsel.

President Gloria Macapagal-Arroyo, in a statement read by her spokesperson Ignacio Bunye, "expressed her sympathies to the family."

Despite his being disabled, Zobel continued to lead a busy life as outspoken activist on national issues.

In 2002 he established the small town bank, Banco ng Masa, in Calatagan town in Batangas province, south of Manila, for what he had called "hard-working poor." The bank was financed by the EZ Foundation, which among others had also funded the construction and rehabilitation of several schools in Calatagan, granted scholarships to the handicapped, and led medical missions.

In an interview with the Inquirer last May, Zobel had said that half of his fortune would go to his foundation when he passes away.

Zobel had previously made known that he wanted to be buried in the family estate in Calatagan.

Zobel's body will be brought to Santuario de San Antonio church in Makati City. He will be buried in Calatagan, where his heart always remained. With a report from Joel Francis Guinto, INQ7.net

Gov't braces for surge in inflation
Posted: 0:50 AM | May 19, 2004


Inquirer News Service

THE GOVERNMENT is bracing for a surge in inflation this month and next on the back of unceasing fuel price increases, a 1.50-peso hike in public transport fares to take effect next month, and higher consumer spending with the opening of the school year in June.

This month, the government is projecting inflation to reach 4.6 percent given the spate of fuel price increases in previous months.

The inflation rate was 4.2 percent in April, with 2000 as base year. The average for January-April was 4.0 percent (3.7 percent with 1994 as base year).

Economic Planning Secretary Romulo Neri said these factors could drive consumer prices to the higher end of 4.0-5.0 percent -- the government's target for the year -- by the end of June, unless food prices stabilized and other items helped to mitigate the combined effect of higher fares.

"The expected inflation in May is 4.6 percent. We factored in the increase in oil prices," Neri said in an interview.

Neri said the inflation rate in June could even be as high the May estimate based on 2000 prices given an announcement Tuesday of a fare increase coupled with other factors that could drive prices of basic goods higher.

The Land Transportation Franchising and Regulatory Board is expected to issue an order allowing jeepneys to raise fares to 5.50 pesos for the first four kilometers and one peso for each succeeding kilometer, from the previous rate of 4.0 pesos for the minimum distance and 0.63 peso for each additional kilometer. The bus fare is to rise to five pesos from three for the first four kilometers. The fare adjustments are to take effect in the first week of June.

Neri said the fare increase alone could push inflation up by about 0.60 percentage point, as "every peso hike in public fares would increase inflation by about 0.40 percentage point."

Every 10-percent rise in the price of fuel raises the inflation rate by about 0.67 percentage point, he said.

"But these items overlap, so it is not right to add the impact of the fuel increase with that of transport because most of the inflationary impact of a fuel hike feeds into the fare hike," Neri said.

Neri said he hoped that some of the inflationary factors could be cushioned by more stable food prices in June, given the expected bumper harvests of rice and corn. With INQ7.net

The Land Transportation Franchising and Regulatory Board is expected to issue an order allowing jeepneys to raise fares to 5.50 pesos for the first four kilometers and one peso for each succeeding kilometer, from the previous rate of 4.0 pesos for the minimum distance and 0.63 peso for each additional kilometer. The bus fare is to rise to five pesos from three for the first four kilometers. The fare adjustments are to take effect in the first week of June.

to take effect on the first week of June?!? hey, since March Jeepney and bus operators already implemented this fare adjustments.

Wow.... So expensive now. Just 4 years ago, it was 2.50.

How much for FX taxi?

"Riches-to-rags," just sad... :(

Philippines, South Korea: study in contrast
Posted: 0:57 AM | May 19, 2004


Agence France-Presse

JEJU, South Korea -- The riches-to-rags story of the Philippines in contrast to South Korea's march to First World status underscores the importance of the right economic policies and their implementation, the Asian Development Bank (ADB) said Monday.

When the Manila-headquartered bank was established in 1966, the Philippines was second only to Japan as Asia's richest nation, while South Korea was among the top borrowers.

Nearly four decades later, their fortunes are completely reversed -- the Philippines is one of Asia's poorest countries and South Korea is now a key contributor to the bank.

ADB president Tadao Chino said the two countries provided a study in contrast in the bank's overarching goal to significantly reduce poverty by 2015.

The number of people living on less than a dollar a day in Asia has generally fallen, leading to a better quality of life and longer life expectancies, Chino said at a news conference at the close of the ADB's annual meeting in this South Korean resort island.

However, there are differences among countries and how they formulate and implement policies and multilateral aid.

"Not all the countries develop at the same rate and that depends upon the various given conditions [and] environment for development, and also the effectiveness of the policies and their implementation," he said.

Chino said the Philippines economy has improved and is projected to grow between 4.5 and 5.5 percent this year and next, compared to 4.5 percent in 2003.

"It is not bad but more can be expected," he said.

Chino said there were "complex factors" that inhibit the inflow of foreign investment as the country is burdened by a huge budget deficit, low levels of public spending and a lack of investment in infrastructure.

Financing the deficit keeps interest rates relatively high which in turn keep investors at bay, he said, adding that the Philippines' rapid population growth was also an impediment to growth.

"If there will be major political and economic reforms, then I think we can expect much higher growth rates ... It will improve the lives of the people.

"But that all depends upon the government and the people -- how do they make the effort for a better economy. The most important is to improve the environment for private sector activities."

Other analysts outside the ADB have cited rampant corruption as a deterrent to investment in the Philippines.

On the other hand, Chino held up South Korea as a model of poor countries that had received ADB aid and are repaying them now by becoming donors.

South Korea put out the red carpet for the more than 3,200 meeting delegates who held meetings at a posh, glass-walled international convention center that offers a sweeping view of the ocean here.

Seoul contributed 113 million dollars to the latest replenishment of the ADB's anti-poverty fund, which totaled seven billion dollars to be disbursed between 2005 and 2008.

"The Korean government has been contemplating ways to return the valued favors we received through the ADB to fellow member countries in need of assistance," South Korean Prime Minister Goh Kun said when he opened the meeting on Saturday.

He said South Korea will establish an "e-Asia fund" to help poor countries in the region improve their competence levels in information and communication technology.

tsk,tsk...sad that Philippines are being left behind. May it be in sports, morale, etc. :wallbash:

it's shameful that we went like that...

No offense to the posters here who are making a good living abroad and those who plan to do the same. But it's been really worrying and disappointing recently how a lot of Filipinos seem to have nothing else on their minds but to immigrate or get a job abroad. Even some parents are forcing their kids to take up nursing because it's the fastest ticket out, even if their kids want to do something else with their lives. And the sad thing is pa, it's the people who can afford to stay and help out and make a difference, the middle to upper-middle classes, who are the most enthusiastic about "escaping" the Philippines. they keep saying "our country has no future, there's no hope here, might as well leave". With that kind of attitude, then they're merely fulfilling their own prophecies. It's sickening how even on the tourism message boards, nangunguna pa yung ibang mga Pinoy in discouraging foreign tourists from coming here!

I also want to go abroad, but not now...probably 2 years from now. My parents experienced living/working in abroad. My father once told me that I really have no future here. hahaha. mukha nga. :wallbash:

No offense to the posters here who are making a good living abroad and those who plan to do the same. But it's been really worrying and disappointing recently how a lot of Filipinos seem to have nothing else on their minds but to immigrate or get a job abroad. Even some parents are forcing their kids to take up nursing because it's the fastest ticket out, even if their kids want to do something else with their lives. And the sad thing is pa, it's the people who can afford to stay and help out and make a difference, the middle to upper-middle classes, who are the most enthusiastic about "escaping" the Philippines. they keep saying "our country has no future, there's no hope here, might as well leave". With that kind of attitude, then they're merely fulfilling their own prophecies. It's sickening how even on the tourism message boards, nangunguna pa yung ibang mga Pinoy in discouraging foreign tourists from coming here!

Very understandable. In a way, i think you are right. I especially do not like how Filipinos are the worst critics of their own country, so it discourages foreigners to either visit the country or invest in the country...very sad indeed.

Imo, our country has huge potential. If only more people are willing to help make the country progress, it will. sadly, many people have lost hope. The Philippines can make it big, we just have lots of obstacles to overcome. Many other countries have had many problems but they have progressed. Why cant the Philippines do the same? Of course, we can:)

As for Filipinos abroad, many of them send remitances back home. This helps the economy a whole lot.

For my family, we are expats abroad but we continue to invest in the Philippines. We have mango plantations, a restaurant chain, etc and this provides employment to many people. We send a lot of remitances back home, so it helps with consumer demand and the overall economy. We have not lost hope in our country, as we continue to invest. We did not move out of the Philippines because we lost hope, we moved out because there was a great opportunity for a good future, and with this we are helping our country and our relatives back home. You might say, we moved out because there is hope. In a few years, my parents will return back home and stay there. And believe me, there are many, many other Filipinos doing the same as us. Moving out and helping the country (by investing), while planning to return home in the future.

Yup, sad that we have fallen back... If we hadn't, we would prolly still be number 2 or 3 in Asia. There are South Koreans here that wont believe me that Philippines used to be number 2 in Asia and that SK used to be very poor. I showed the proof, so now they shut their mouths:D:D hehehe.

I sort of agree with Jude has posted... it is very sad... though I don't exclude myself for I also want to work abroad to earn some... but plans to return here to invest and help the economy....

well I think what is really causing our country's demise is that the Filipinos lack nationalism... we prefer to buying imported products thinking that Philippine made products are poor... but the fact is there are a lot of high quality Filipino products... we think that our country has no future and pose negativity... though as Rizal said the youth is the hope of the nation.... but sadly the youth no longer hope that the country would get back to its knees....

another that needs to be changed is the Filipino mindset that it can do anything because he received complete freedom after the martial law.... the Filipino should remember that freedom should be countered by responsibility... too much freedom pulls the country down... plus the crab mentality and the colonial mentality we Filipinos have....

Gov't to hike expenditure targets in next 6 years
Posted: 0:52 AM | May 26, 2004

Michelle V. Remo
Inquirer News Service

printable version email a story write the editor feedback


THE GOVERNMENT is expected to raise its annual expenditure targets to pump-prime the economy and achieve a sustainable yearly growth of 7.0 percent up to 2010, a government source said.

The inter-agency Development Budget Coordination Committee (DBCC) believes the current targets will not enable the government to take advantage of the opportunities in global developments, said a source in the DBCC, which is tasked with setting government economic and fiscal targets.


"We have to make the country an attractive business site, and one way to do it is to invest more on things such as infrastructure," the source said.

The current program sets the government spending targets at 915 billion pesos for next year, 984 billion pesos for 2006, 1.02 trillion for 2007, 1.06 trillion for 2008 and 2009, and 1.16 trillion for 2010.

The DBCC will discuss the plan to revise the targets at its next meeting, the source said.

The committee consists of the National Economic and Development Authority, Department of Finance, Department of Budget and Management, and the Bangko Sentral ng Pilipinas, the central monetary authority.

The national government, which has grappled with a budget deficit for years, is aiming for a balanced budget in 2009 or 2010. Under the government's present medium-term schedule, revenue collection should grow and match the 1.16 trillion pesos in expenditures in 2010.

The government source said the present expenditure and revenue programs seemed to focus solely on the medium-term goal of a zero budget deficit rather than on helping increase economic growth.

The program should provide for higher expenditures that are meant to bolster economic activity and thus generate more employment, the official said. With INQ7.net

Philippines GDP tops forecasts, grows 6.4 percent in first three months
5/27/2004 12:20:00 PM

MANILA, May 27 (AFP) - Brisk consumer spending and a buoyant farm sector output pushed Philippine economic growth above forecasts to 6.4 percent from a year earlier in the three months to March, officials said Thursday.

Economic Planning Secretary Romulo Neri said the first quarter result should give the oil-dependent and debt-laden Southeast Asian economy sufficient cushion to weather rising crude oil prices and an expected rise in interest rates later this year.

Brisk private consumption boosted by spending related to campaigning for the May 10 presidential election, and a buoyant farm sector helped push the gross domestic product (GDP) up by 6.4 percent, Neri told a news conference.

Economists polled by financial news service AFX-Asia had earlier forecast GDP growth of between 4.3 and 5.5 percent.

GDP grew 2.2 percent from the previous three months.

The gross national product, which includes net factor income from abroad, expanded 6.2 percent from the previous year.

Neri said the government decided to maintain its full-year GDP growth target of between 4.9 and 5.8 percent despite the adverse news on the oil and interest rates fronts.

"The economy's engines of growth were generally healthy. All economic sectors vigorously expanded," he said.

"The economy has enough bright spots to mitigate rises in oil prices and interest rates."

He said inflation should be at the "higher end" of the government's target of between 4.0 and 4.5 percent.

The government said agricultural output rose 7.7 percent, compared to 2.9 percent in the comparable period last year.

The services sector grew 6.4 percent, compared to 5.6 percent in the same period last year.

Industrial output also increased by 5.5 percent, compared to 4.1 percent in the comparative quarter last year.

Meanwhile, the government revised the 2003 GDP growth upward to 4.7 percent, from 4.5 percent.
----------------------------------------------------------------------------------
I guess this is pretty good news for now.... we just have to see if we are able to sustain growth at this rate all the way to the year's end past election season. if GMA is proclaimed by June 30 and everything goes smoothly after that, we should see investors start coming back into the country and eveything should start moving up again. there are obviously great chances of coups and uprisings if GMA wins... hopefully, the canvassing is done transparently - especially for the opposition - so things go well after that...

Good to hear some good news coming out of the PI. :)

Lots of interesting statistics about the Philippines

Southeast Asia: Philippines: Top Rankings
Note: Click on the link to view the graph for each statistic.

1st for
Agriculture - Exports to USA - Coconuts
Agriculture - Exports to USA - Coconuts (per capita)
Energy - Electricity - production by source (other)
Labor - Work time (market-oriented)

2nd for
Agriculture - Grains - Rice stocks (per capita)
Environment - Breeding birds threatened
Religion - Catholics

3rd for
Agriculture - Exports to USA - Cassava
Agriculture - Meat production growth
Economy - Business efficiency
Economy - Exports - high technology

4th for
Economy - Exports - manufactured
Labor - Total work time (females over males)
Labor - Total work time (females)

5th for
Agriculture - Grains - Rice stocks
Government - Administrative divisions
Labor - Female professionals
People - Chinese population

http://www.nationmaster.com/country/rp/Top-Rankings

Economy grows 6.2% in second quarter
Posted: 12:15 PM | Aug. 30, 2004

Joel Francis Guinto
INQ7.net

(3RD UPDATE) THE ECONOMY grew by a faster rate of 6.2 percent in the second quarter, compared with 4.2 percent during the same period last year, officials said Monday.

In a press briefing, National Statistical Coordination Board (NSCB) Secretary General Romulo Virola said economic growth was driven by the services sector, which expanded at a faster pace of 7.3 percent year-on-year in the second quarter from 5.7 percent.


Also contributing to growth in the second quarter were industry, which grew 5.6 percent from 3.6 percent; and agriculture, fishery and forestry (AFF) which grew 5.6 percent from 3.6 percent, Virola said at a news conference

"We are pleased to note that the economy continued to expand at a robust pace in the second quarter in the face of external and domestic challenges," Socioeconomic Planning Secretary Romulo Neri said during the same news conference.

"Despite the political anxiety and the steep increase in global oil prices, we saw industry and services combined performing better in the second quarter than in the first quarter, cushioning the deceleration in growth of agriculture where rising cost of inputs slowed production in the poultry and livestock sectors," he said.

Quarter-on-quarter, however, GDP growth slowed slightly from an adjusted 6.5 percent.

In the first half, GDP growth was at 6.3 percent, accelerating from 4.5 percent during the same period last year.

On the other hand, the gross national product (GNP), which includes net factor income abroad (NFIA), grew at a slower pace of 5.7 percent in the second quarter compared with 6.5 percent in the second quarter of 2003. Virola blamed this on the "negligible growth" in NFIA, but he did not elaborate.

GNP for the first half was reported at 6.1 percent, compared with 5.6 percent in the first half of 2003.

Neri said strong demand for exports to the United States, Japan, and China fueled growth in industry while the expansion of call center businesses boosted growth in the services sector.

On the production side, the main contributors to growth were manufacturing, trade, AFF, construction, and finance and private services. The least contributors to growth were mining and quarrying, government services, and electricity and water, Virola said.

On the expenditure side, personal consumption was the biggest contributor to growth followed by net exports and construction. The least contributors to growth were breeding stocks and government consumption, he added.

yeah, a lot of coconuts, the edible ones and the thinking ones, exported to the US:D

Lots of interesting statistics about the Philippines

Southeast Asia: Philippines: Top Rankings
Note: Click on the link to view the graph for each statistic.

1st for
Agriculture - Exports to USA - Coconuts
Agriculture - Exports to USA - Coconuts (per capita)
Energy - Electricity - production by source (other)
Labor - Work time (market-oriented)

2nd for
Agriculture - Grains - Rice stocks (per capita)
Environment - Breeding birds threatened
Religion - Catholics

3rd for
Agriculture - Exports to USA - Cassava
Agriculture - Meat production growth
Economy - Business efficiency
Economy - Exports - high technology

4th for
Economy - Exports - manufactured
Labor - Total work time (females over males)
Labor - Total work time (females)

5th for
Agriculture - Grains - Rice stocks
Government - Administrative divisions
Labor - Female professionals
People - Chinese population

http://www.nationmaster.com/country/rp/Top-Rankings

The country should not always depend its exports to the US, it shouls also start exporting seafoods to countries with high fish consumptions.Coconuts could also be exported to the EU, mango would also be a clique since our mangoes are said to be the sweetest in the world.We should also start to export rice and sugar again.Before, I heard that the country used to be one of the world`s largest exporters or sugar and coffee.

Very good news that our GDP is growing that much. If we can hit more than 6% for many consecutive years, things will look good for the future.

I am scared about GMA's admission of that fiscal crisis thingy... it was kinda too premature... it might hurt GDP prospects for next quarter... plus the PHISIX breached 1600.... then went back to 1500+ due to this news...

I hope we finally take off to 2000

Yeah, I was surprised that our economy grew that high. Sometimes, it's hard to think that it's true. What about the people living in poverty? The increasing prices of basic commodities? A while ago in this newscast I heard that our country was one of the top exporters of coffee (2nd in world) in the 1980. Now, Vietnam has beaten us and is now the 2nd in world top exporter of coffee. Although, that GDP statistic shows good signs for our country ;)

yeah i agree. Her admission to a fiscal crisis is too premature. She should have at least gave clues or warnings or something like that. But if we continue to grow 6+ things will look bright. hopefully our economy will grow 5% or more this year. And the govt should really do something about the fiscal problems right now.

Tuesday - August 31, 2004

Philippines property market back to pre-1997 crisis levels
8/31/2004 4:30:00 PM
Source : AFP
Demand for office space in the Philippines has returned to its level before the mid-1997 Asian financial crisis, with growth likely to continue in the coming years, property consultants CB Richard Ellis said Tuesday.

The demand would be sustained by the rise of call centers and business processing offices (BPOs) setting up shop in the Southeast Asian country, said Rick Santos, the country managing director for the real estate services firm.

The Philippines, which boasts high English language proficiency, hosts about 60 call center companies whose employees occupy 30,000 seats, working two to three shifts a day.

In addition around 80 firms provide backroom operations for some of the world's top brands and corporations, he told a news conference.

"The Philippines is challenging India as the call center/BPO capital of Asia. There has been a race between these two countries," with more than 10 billion pesos (178 million dollars) invested in such facilities in the Philippines, Santos told a news conference.

He said call center seats are expected to jump further to 40,000 by year-end and to double by 2005.

This expansion would lead to higher demand for new office space, which is seen to rise by 100,000 square meters (1.076 million square feet) annually starting this year up to 2006, Santos said.

Last year, at least 80,000 square meters of new commercial space were filled, he said.

"There are new buildings being constructed. (But given the increasing demand) we see upward pressure in (rental) rates," Santos said.

"Despite the expected slowdown in the growth of the domestic economy, we expect the recovery of the sector to be sustainable since demand is mostly coming from overseas," Santos added.

Parang it doesen't add up noh... ---> GDP growth 6.2%, property market improving (but still on a glut), PHISIX consolidating... tapos fiscal crisis ang hirit ng president... si gMa kasi... pabigla-bigla ng pronouncements. Medyo nadampen tuloy investor sentiments...

:applause: This seriously good news! Especially for us skyscraper and philippines lovers:D hehehe... We should expect to see new office towers in the near future in Makati, BGC and Ortigas. Wow..40,000 seats in the outsourcing business and then double that (80,000) by 2005. Really good news for the economy as this will provide lots of employment, consumption and investment. I predict that this will be one of the factors that will help the Philippines rise from its current state.

Another thing...I think if the government introduces more reforms to counter the fiscal deficit and if GDP continues to grow at 5% or more, the fiscal problems will be solved by the end or near the end of GMA's term. By then, the economy should have progressed a lot.

great news, hope to see new office skyscrapers comming up!

I don't mean to dampen the mood here, but what happened to the Phillippines-turing-into-another-argentina scenario?

Wasn't there an article about it? :(

I am very happy over the country recovering, although I have to admit that the crisis thing is also somewhat true.

I would never put the Philippines in the level of Argentina,to me it rather resembles Brazil more.Remember, Argentina was said to be the United Kingdom of South America.

Um, does Argentina eqating into the UK "good" or "bad"?

Does it have something to do with the 80's crash comparing to the crash of Argentina in the 90's/00's or what?

---

I'm young, so be patient ;)

I don't think the PHilippines will be an Argentina scenario...hopefully :)

1) Argentina's debt... 160B USD, Philippines 57B USD and rising... darn
2) Debt Service Ratio of Argentina -->70!, Philippines 33%.....
3) Debt % of GDP... Argentina --->112% Philippines --->78%
4) People below poverty line.... Argentina --->37%! Phils. --->33%

I don't think the PHilippines will be an Argentina scenario...hopefully :)
yeah, hopefully. :)

I also dont think Philippines will be the next "Argentina". We are not quite there yet. Our economy is growing quite strongly right now, so this should compensate for our debts. Investment is up, exports is up (right?), consumption is up, etc... Also, we have huge overseas support from OFWs. Additionally, the Philippines is fast becoming an outsourcing hub that could save our economy.

And I also don't agree with Gloria on shortening mall hours.... This does not in any way reduce government expenditures but rather decreases our spending thus reduce earnings for retail sector this slower economy. With our economy relying almost 66% on domestic consumption (mall-retail, trading, services), this could hamper GDP growth and economic activity. And Fiscal crisis? She is so padalos-dalos... What fiscal crisis!? hehe :)

I agree with you. Consumption is a major factor in our economy. If this slows down, our GDP growth rate will suffer. Keep mall hours as it is! GMA should know this, she is an economist...she should remember that GDP = C + I + G + (X-M)

Exactly... And she think it will conserve energy... of what... the malls? The government doesn't pay for the power bills of commercial establishments. I don't think it will have any direct effect. As stated earlier, decreased consumer spending, decreased electricity consumption (which could translate to more loses for NAPOCOR...making government burden even bigger). hay nako greyX... kaiinis noh?

yeah...kakainis. Sometimes, GMA is making obvious mistakes. Hopefully she will realise them. Her overall plans are good, but her smaller plans tend to be awful. Well, at least she is trying. We should still support her. Shes better than FPJ.

I wouldnt exactly say that there is no fiscal crisis. I would say that it is looming, but not to a point that we should be scared of it. If we (esp. the govt) correct it now, it shouldnt be too much of a problem/issue. But if they do nothing, yes, it will hit and it will hit very hard.

Finally. market had modest gains... almost 20 points... way above 1600 resistance... yey. 6.2% GDP growth inspired investors I guess.... I hope....Somehow hehe.

yeah...kakainis. Sometimes, GMA is making obvious mistakes. Hopefully she will realise them. Her overall plans are good, but her smaller plans tend to be awful. Well, at least she is trying. We should still support her. Shes better than FPJ.

I wouldnt exactly say that there is no fiscal crisis. I would say that it is looming, but not to a point that we should be scared of it. If we (esp. the govt) correct it now, it shouldnt be too much of a problem/issue. But if they do nothing, yes, it will hit and it will hit very hard.

yeah man, heaps better than FPJ. she know what to do. this is what she studied.

good news that our property market is doing good. i'd say a couple of more months before we see the first skyscrapers being planned..

or it could be starting now.. what's happening there in MM?

wow... the PSE broke 1,600 pts today! awesome...!

I feel the scenario of the Philippines falling into a fiscal crisis can still be widely averted. we just need the government to keep up with revenue targets and make sure the collections actually stay with government. but i'm not gonna complain nor put the blame for August's projected P13B BIR shortfall on revenue commisioners. we all know exactly how many of us in general actually pay taxes. if we're not gonna do our part, we should expect no better on behalf of the gov't.

exactly, let's pay our taxes... income tax, consumption tax. get receipts from gasoline stations to make sure they pay their taxes. small businesses should register and pay taxes. taxes. taxes. taxes.

rico, is correct. everyone should pay their taxes, and not bribe the tax collectors. That will just encourage the corruption we all seem to hate. Ironic, isnt it?

office skyscrapers should start construction very soon. Its looking good guys. congrats to the PSE for reaching 1,600!:)

exactly, let's pay our taxes... income tax, consumption tax. get receipts from gasoline stations to make sure they pay their taxes. small businesses should register and pay taxes. taxes. taxes. taxes.
oo nga. bayad lan ng bayad. :) bahala na clang mangurakot. :bash:

damn! PHISIX at 1690! grabe... overheated ang bull-run! hehe... kakabukas pa lang ng market this morning, 22 points up agad... might reach 1700 later. The market has grown almost 100 points in just two weeks! impressive.

haha.. right now its up by 56.69 (3.391% change) to 1,728.45! way to go!!

http://www.pse.com.ph/

lets keep our fingers crossed... wohooo!!! :righton:

i remember seeing the stock markets going down to 1,200 during the Erap crisis 1999-2000

this is good news. what exactly is triggering this rise?

hmmm...

GDP growth 6.5% seems great
Good prospect earnings for 2005
Plus Metro Pacific is causing excitement on its shares regarding CITRA majority stake
And... Government's "seems" aware and working towards trimming the budget gap

But still long way to go from the high of 3400 during 1996... :) LEt's hope the best for our nation!

hmmm...

GDP growth 6.5% seems great
Good prospect earnings for 2005
Plus Metro Pacific is causing excitement on its shares regarding CITRA majority stake
And... Government's "seems" aware and working towards trimming the budget gap

But still long way to go from the high of 3400 during 1996... :) LEt's hope the best for our nation!

it was in the 3000 zone during the 1996? then what happened? how and why did it went down all the way to the 1000 level? im just wondering

after the asian financial crisis... everything suddenly dropped! hehe... including the peso, it plunged too

yeah...not just in the Philippines. In fact, we were one of the least affected. Indonesia and Thailand suffered a lot.

it's up another 12 points today, due to cheap stocks, I guess and foreign & local investors having bullish sentiment over our market. ;) Hooray! =)

actually it was triggered by thailand... then everything just went down and crashed... :runaway:

yeah... but Thailand since then has recovered remarkably...

Philippines - PSE 1739.83 +37.84%
Singapore - Strait Times 1918.34 +41.21%
Taiwan - TWSE 5765.54 +36.76%
Thailand - SET 624.59 +147.98%

I just hope our short term bull run (Phisix) would be in perpetual motion...

actually it was triggered by thailand... then everything just went down and crashed... :runaway:

so the asian markets crushed? like every country in asia right?

well lets hope that the market will reach the 1800 level. :)

it isnt necessary to conlude that there's no crisis if we actually achieved an eco growth, as some economists point out in the PDI, the 6.2% 2nd quarter is being called a 'jobless' growth, coz the level of unemployment havent went down despite the 'growth'. consumer spending was the main trigger behind it instead. well, at least, there's a growth nga.... but we have to keep on improving to be competitive, versus other asean countries' respective eco growth, the 'so-so complex factors' that always keep us down must be addressed one by one w/ a clear vision, para hindi ningas-cugon.

on top of the list(as usual):
1 graft & corruption- this is somethin 'cultural' in nature, kaya mahirap i-eradicate
2 unemployment- pag may trabaho, people would rather work than be emotional & subjective, so hindi sila matitrigger na mag-revolt over & over...
3 peace & order- nuff said!
4 population plan- cno bang ayaw magplano ng familia ryt? i think pinabayaan talaga ng govt ang family planing program coz of 2 much politics-e. g. the vote rich catholic church) if u ask the 'masa', the obvious reason would be: "kulang sila sa kaalaman ng tamang pagpaplano", so that means wala ngang clear vision, o program....

yeah... but Thailand since then has recovered remarkably...

Philippines - PSE 1739.83 +37.84%
Singapore - Strait Times 1918.34 +41.21%
Taiwan - TWSE 5765.54 +36.76%
Thailand - SET 624.59 +147.98%

I just hope our short term bull run (Phisix) would be in perpetual motion...

I know....

I have a question that i have been wondering for a very long time. If the Philippines is "left behind" by Thailand and Malaysia, how come our stock exchange is larger than theirs? It was larger before the crisis and it still is now, according to those numbers.

so the asian markets crushed? like every country in asia right?

well lets hope that the market will reach the 1800 level. :)

Not every market in asia crashed. Mostly only in South East Asia and South Korea. India and China continued to grow strongly.

It will reach 1800, very soon. it should reach 2000+ by the end of the year.

We were one of the least affected nation during the 1997 Asian Financial Crisis, but the funny thing is ever since ... we have worked our ass off being the most affected :)

I know....

I have a question that i have been wondering for a very long time. If the Philippines is "left behind" by Thailand and Malaysia, how come our stock exchange is larger than theirs? It was larger before the crisis and it still is now, according to those numbers.

The stock market indices are not proportional to their economy. Thailand has 600 but has a stronger economy than ours which is hovering above 1700. Plus we have to consider that share prices are in local currencies, so dun may differences din. Plus factor in inflation.

Another example is the hang seng index. it's at 12000 and the DOW (US) is at 10,000 +... But the US economy is surely larger...

So what determines a larger stock market index? How come ours is so big? Is it because we have lots of public companies or brokers? why?

two that i can answer are

1. Phisix got the different set rule on how stocks traded by currency for example PLDT long distance shares that sold by $US dollar.

2.. Phisix only open 1 session, compare that to JSX, Bangkok SET, KLCI and Kospi that open until 2nd session and close 4-430PM, then Phisix is less profit taking than any other market.

If you wanna see how good is the stocks market, you can also count the transaction value per-day, not only by the index. Phisix is relatively cheaper than any other asian stocks. I love PLDT stocks.

Anyway, Phisix and Jakarta JSX are the top best perfomer this year in Asia, Phisix and JSX has been up more than 20%. Last year was Bangkok and Jakarta, each up 100% and 98% respectively.



cheers

actually it was triggered by thailand... then everything just went down and crashed... :runaway:

i don't remember the country being affected that big. it used to be all about the baht falling and falling and falling. while our skyscrapers went rising and rising and rising :D i think our own financial crisis came much later, around 1998-2001, which coincidentally, was Mr. Estrada's term. lol

Actually Philippines was doing pretty good when Asian financial crisis came in 1997-1998 but i dont know what happened when Estrada came to office..


cheers

the asian financial crisis is i think a good example of the saying, "the higher you fly, the harder you fall". thailand and others were flying really high before 97 while the philippines was just flying a little lower than it's neighbors.

then the crisis.

Opportunies for RP professionals said to abound in SEA and China
By JOSE VILLANUEVA
TODAY Subeditor

The Department of Trade and Industry (DTI) on Thursday said opportunities in Southeast Asia and even China are ripe for Filipino professionals, particularly those involved urban planning and interior design.

A large portion of professional service providers deployed in the region are based in Singapore, according to data cited on overseas Filipino workers. But speaking at a labor summit sponsored by the Employers Confederation of the Philippines (ECOP) last week, Trade Undersecretary Thomas Aquino identified Myanmar, Laos and Cambodia as other promising destination for Filipino professionals.

“Filipinos are extremely capable and highly qualified for the jobs in the ASEAN region,” Aquino said in a statement. “With the required commercial presence and the country’s geographic proximity, it is indeed an edge for our services exporters to yield more employment. This will encourage more trade and investments in the country.”

The DTI also cited that the Philippines has received requests from China for a supply of professionals specializing in communication, construction, engineering, education, distribution, environment, finance, health, tourism, travel and transport.

Demand for Filipino professionals has risen as a result of an accord the Association of Southeast Asian Nations signed with China last year that lays down the framework for a professional exchange program that prioritizes air travel, tourism, and information technology. “Our professional services providers and skilled workers should take advantage of these agreements,” Aquino said.

ECOP’s two-day event consisted of a job-fair and a series of workshops and talks on job creation, competitiveness in the labor market, and training toward full employment. The event drew 4,000 job seekers to apply with companies such as Cebu Pacific, Rustan’s, Watsons drug store, Abensons, Dunlop, Slazenger, Fujitsu, Convergys, Figaro, Goldilocks, Citibank, Bank of Commerce, Security Bank and Globe Telecom.

The ASEAN’s cooperation accord with China, the asean-China framework agreement, provides for a free flow of trade and services by 2020. Mutual recognition agreements for qualifications in major professional services will be completed in 2008 to facilitate free movement of professional and skilled labor within ASEAN.

The agreement also includes ASEAN commitments like cross-border supply, which refers to services supplied from one country to another like international telephone calls; consumption abroad, which means consumers or firms availing of sevices abroad like tourism; commercial presence, which pertains to a foreign company setting up branch offices the same way commercial banks do; and movement of natural persons, which means individuals traveling abroad to supply services in another country like consultants.

ASEAN also formed an important economic link with China by signing an agreement to establish a free-trade area by 2010 for older asean members and 2015 for new ones. The agreement also included provisions for negotiations on services.

The bull run continues.....

Phisix continues rally for 7th day!!
Report by Roulee Jane F. Calayag
from BusinessWorld

Mining and oil indices failed to keep the momentum in recent days, but the stock market remained strong as its rally entered a seventh day.

The market focused on buying Ayala-led stocks and shares of Philippine Long Distance Telephone Company (PLDT).

"Ayala stocks and PLDT were the real movers," said Roberto Cano, senior analyst at BPI Securities, Inc.

Interest on Ayala Corp. was strong after the Securities and Exchange Commission (SEC) allowed the conglomerate to register PhP5 billion worth of five-year fixed-rate bonds.

The bonds, which will have a final maximum spread of 0.50% per annum, will be used to refinance the conglomerate's dollar-denominated bonds due in January next year.

The most actively traded stock was Globe Telecom, Inc., the telecommunications arm of the Ayala group. Its share price rose PhP25 to PhP1,035 on 216,000 shares valued at PhP218.12 million. It cornered 20.11% of the market.

Parent firm Ayala Corp. placed second, advancing PhP0.10 to PhP6.40 on 27.2 million shares.

Affiliate Ayala Land, Inc. landed third, inching up PhP0.10 to PhP6.30 on 20.5 million shares.

Telecommunications giant PLDT came in fourth. Tracking the gains of its American Depositary Receipts (ADRs) in New York, up PhP30 to PhP1,420 on 76,820 shares.

Trades yesterday dropped to 4,256 from 6,465 on Thursday.

Even the volume weakened, declining by more than half at 2.6 billion from 4 billion. Transactions were valued at PhP1.08 billion.

Losers outpaced gainers, 48-39. Issues that kept to their previous prices totalled 38.

Except for mining and oil, the rest of the indices were all strong.

The Philippine Stock Exchange composite index (Phisix) continued its gains for the seventh day, up 11.68 at 1,751.60.

Commercial-industrials packed some punch by clinching 21.29 at 2,792.69. The banks and financial services counter rose 4.06 at 501.20.

The all-shares followed, with 3.51 at 1,064.06.

Property reversed its performance, gaining 0.17 at 587.77.

Mining lost 80.59 at 1,859.65.

Oil was down slightly. It dropped PhP0.05 at PhP1.75.

Mr. Cano said the declines in some stocks resulted from technical buying. "The market consolidated after it broke the technical resistance of 1,600 to 1,620," he said.

He noted the correction in world oil prices also improved sentiment.

However, the weekly oil adjustments that will be implemented from Monday may affect the market's sentiment.

The government's initiative to address the country's fiscal woes and the rosy outlook of companies are also boosting confidence. "[It helps that] the government is trying to deal with the country's fiscal deficit situation," said Mr. Cano.

The initiative will convince investors, particularly foreign fund managers, of the government's seriousness in curbing the fiscal crisis.

More than ever, developments at the corporate scene will be an added boost to the market. "Earnings outlook of companies, especially telecoms, remains strong for the third quarter," said Mr. Cano. -- Roulee Jane F. Calayag

...while a mammoth glass plant is set to be built.

Chinese firm to build $312-M high-tech glass plant!!
Report by F. F. Salvosa II
from BusinessWorld

A Chinese glass company is committed to invest $312 million for a manufacturing facility in what will become China's "single biggest single investment in the Philippines," the Trade department said in a statement yesterday.

The press release quoted Trade Secretary Cesar A.V. Purisima as saying that Hebei Jingniu Crystall Ball Group Company, Ltd. (CBC) would build the 100- to 130-hectare "Crystal Ball Industry Park" inside the Subic Bay Freeport in Central Luzon.

CBC will set-up two on-line float coated glass lines, two high-tech rolling crystallite glass lines, one glass deep processing line, and one crystallite glass deep processing line.

Crystal Ball Industry Park will also have a power generating plant with a capacity of 30,000 kilovolt-amperes as well as a plastic yacht line currently not produced in the country. Operations will begin by the last quarter of next year.

Mr. Purisima said CBC's investment would create 15,000 direct and indirect jobs. Moreovoer, the Chinese glass firm has committed to attract other investors to its industrial park.

The $312-million deal was sealed during President Gloria Macapagal-Arroyo's recent state visit to China.

CBC already has manufacturing and trading outfits in Zimbabwe and Kenya.

It has seven national patents for rolling crystallite glass and on-line solar control reflective glass.

CBC's China facility, which successfully obtained ISO 9000 and ISO 14000 certifications last year, is a production base for rolling crystallite glass and on-line float coated glass.

It currently has four on-line float glass lines, two rolling crystallite glass lines, and a wired patterned glass line.

Products include various kinds of float sheet glass, on-line solar control reflective glass, and high-tech rolling crystallite glass in all kinds of color and specifications.

CBC exports to more than 70 countries in Europe, Asia, America and Africa.

CBC topped other Chinese glass companies in the 2002 World Glass Company 500 listing, the Trade department said. -- F. F. Salvosa II

...while a mammoth glass plant is set to be built.

Chinese firm to build $312-M high-tech glass plant!!
Report by F. F. Salvosa II
from BusinessWorld

A Chinese glass company is committed to invest $312 million for a manufacturing facility in what will become China's "single biggest single investment in the Philippines," the Trade department said in a statement yesterday.

The press release quoted Trade Secretary Cesar A.V. Purisima as saying that Hebei Jingniu Crystall Ball Group Company, Ltd. (CBC) would build the 100- to 130-hectare "Crystal Ball Industry Park" inside the Subic Bay Freeport in Central Luzon.

CBC will set-up two on-line float coated glass lines, two high-tech rolling crystallite glass lines, one glass deep processing line, and one crystallite glass deep processing line.

Crystal Ball Industry Park will also have a power generating plant with a capacity of 30,000 kilovolt-amperes as well as a plastic yacht line currently not produced in the country. Operations will begin by the last quarter of next year.

Mr. Purisima said CBC's investment would create 15,000 direct and indirect jobs. Moreovoer, the Chinese glass firm has committed to attract other investors to its industrial park.

The $312-million deal was sealed during President Gloria Macapagal-Arroyo's recent state visit to China.

CBC already has manufacturing and trading outfits in Zimbabwe and Kenya.

It has seven national patents for rolling crystallite glass and on-line solar control reflective glass.

CBC's China facility, which successfully obtained ISO 9000 and ISO 14000 certifications last year, is a production base for rolling crystallite glass and on-line float coated glass.

It currently has four on-line float glass lines, two rolling crystallite glass lines, and a wired patterned glass line.

Products include various kinds of float sheet glass, on-line solar control reflective glass, and high-tech rolling crystallite glass in all kinds of color and specifications.

CBC exports to more than 70 countries in Europe, Asia, America and Africa.

CBC topped other Chinese glass companies in the 2002 World Glass Company 500 listing, the Trade department said. -- F. F. Salvosa II

thats another good news for the philippines. :cheers:

Wow, more jobs! I think encouraging big firms to open factories or chains in the country might help solve the unemployment problem a lot.

All very good news! it increases employment, investment and GDP!:D

Phisix seen testing 1,800-pt level as business climate improves
By Zinnia B. Dela Peña
The Philippine Star 09/13/2004

The local stock market is expected to hit the 1,800 level this week, fueled by the improving economic and corporate earnings picture, analysts said. Last week, the main composite index rose 123.64 points or 7.6 percent week on week to 1,751.60, its highest close since April 11, 2000 when it was at 1,757.45.

The Phisix has now gained 21.4 percent year on year, making it the best performing stock market in Asia.

BPI Securities said the market is likely to test the 1,800 level as momentum remains strong with investors focusing on stocks with good fundamentals and strong earnings.

AB Capital Securities research head Jovis Vistan said the market sentiment remains largely positive due to serious and aggressive moves being taken by the government to address the fiscal problem, which has hounded the market for years.

"We’re beginning to see some real evidence of awareness and concerted efforts in addressing the deficit. After being in denial as to the state and magnitude of the deficit issue, the government is finally putting first things first," Vistan said.

"The new found vigor and optimism are unlikely to vaporize in the near term. "We’ve been seeing sustained improvements in the economy and earnings growth estimates. Perhaps, investors have taken a second look at the Philippines and realized that it isn’t as bad as perceived. The country appears to have gone over the hump and finally broken free from the negative perception that has stuck to it for years," Vistan added.

Following the better than expected second quarter GDP results, the government announced an upgrade on the country’s growth targets.

The government projected that the economy is likely to expand 5.9 percent to 6.1 percent this year, higher than the government’s growth forecast of 4.9 percent to 5.8 percent, mainly driven by the services sector.

Vistan, however, advised investors to be cautious in their investment-making decisions since the market has gained. "Stocks are usually considered to be at extremely overbought levels when they make 12 record session highs. The Phisix has already made 11 session highs since Aug. 25. Moreover, the main index’s relative strength index is already at 82.7, way above the overbought level of 70.0," he said. Vistan said the extreme volatility and sharp price appreciation without the benefit of a technical correction could set up the market with a V spike type of drop in share prices should something bad unexpectedly happen. A sharp decline in stock prices, he said, would have more of a psychological impact and long term repercussion than a minor correction.

"Although we are worried about a sharp correction, it seems unlikely that a major correction would happen considering the strong volume that has accompanied the market’s rally. Volume has been driven primarily by foreign institutions, who are most likely buying long and not trading," Vistan said.

Grace Cerdenia of stock portal 2tradeasia.com said telcos, energy and selected second-tier issues that have good stories to unravel, as well as selected property stocks are worth looking at.

go philippines! its time for the philippines to expand more! :cheers:

Palace favors limit to borrowings


Although the Philippines continues to enjoy the confidence of foreign financial institutions, Malacañang today welcomed the proposal of Senate President Franklin Drilon to limit domestic and foreign borrowings, saying it is high time to discuss such possibility.

Press Secretary and Presidential Spokesman Ignacio R. Bunye said the proposal to restrict borrowings must be discussed despite the decision of foreign funding agencies not to suppress lending to the Philippines.

"Ito, sa aking palagay, ay isang magandang nararapat na pag-usapan (I think this is a good time to discuss such plan)," Bunye said.

Bunye however stressed that funding agencies remain open to the needs of the Philippines because from their standpoint, our country’s economic fundamentals remain attractive and viable.

"Dahil alam nila na bagamat mayroon tayong problema, iyong ating long term outlook ay nananatiling malusog (These agencies know that despite the presence of some problems, our long term outlook remains healthy)," Bunye said.

Drilon has pressed Congress to pass Senate Bill 1118 or the "Debt Cap Act", restricting borrowings for the next five to 10 years based on a percentage of the Gross Domestic Product (GDP).

Drilon noted that debt servicing has been eating a substantial portion of the annual government budget and because of mandatory interest payments, there is little room for expenditures for urgent social and physical infrastructures needed to stimulate the economy.


released 9/12/2004

Phisix now at 1,758 from a high of 1,770. We're heading for a correction. :runaway:

Wednesday, September 15, 2004 12:00 AM

Continued NG borrowing swells debt by one-fifth.

By DAXIM L. LUCAS
TODAY Senior Reporter

The national government’s poor tax collections forced it to continue borrowing over the past year, bloating its debt stock by almost a fifth, data from the Bureau of Treasury revealed.

As of end-June 2004, the total outstanding debt of the national government stood at P3.536 trillion. This represented a 19.1-percent increase over the P2.970 trillion reported in the same period last year.

This means that, theoretically, each of the country’s 84 million citizens would have to shoulder P42,210 worth of debt to both local and foreign creditors.

This level of individual debt is just slightly lower than the country’s annual per capita income, meaning that it would take the salaries of the country’s entire population for one whole year to pay off the debt.

Of this amount, the government owed P1.833 trillion to local creditors, mainly through issuances of Treasury bills and bonds. Some P1.831-trillion worth of debt was assumed through the sale of government securities, while P15.5 billion came through loans availed of by state agencies.

A further P2.2 billion came via loans that were assumed by the central government from state-owned firms.

The report on outstanding debt, however, excluded the government’s so-called contingent liabilities which are estimated to have already topped P1 trillion this year.

Contingent liabilities represent direct guarantees of the national government on borrowings of agencies like the cash-strapped National Power Corp. and other state financial institutions like the Development Bank of the Philippines (DBP) and the National Development Co. (NDC).

Sources revealed that the BTr “still cannot reconcile” the actual level of contingent liabilities that the national government is shouldering on behalf of its agencies.

As of the last count, the government has racked up P708 billion worth of contingent liabilities, representing a 20-percent increase over the previous year’s level of P589 billion, mainly in its effort to prop up the ailing state power firm.

As of the first half of the year, foreign borrowings continued to account for a significant portion of the national debt, with P1.703 trillion in obligations to overseas creditors.

This represented a 19.3-percent rise in foreign borrowings from the mid-2003 level of P1.427 trillion.

The foreign debts are denominated mainly in US dollars with an average exchange rate of P56.20 during the period. The government also holds debt denominated in Japanese yen and euros.

The BTr data revealed that the government holds a total of P814.2 billion in loans which state agencies borrowed directly from foreign creditors, and another P882.1 billion were availed of directly from the international bond market.

Besides the loans of state agencies, the government also holds “assumed liabilities” from the Philippine National Bank, DBP, NAPOCOR, NDC and Philippine Airlines.

One of the top companies in the Philippines goes full-speed ahead on becoming an Agro-Industrial Giant, thus creating jobs and spurring production in the process....


San Miguel sees $300-M savings thru sourcing tack
By Jennee Grace V. Rubrico, Senior Reporter
BusinessWorld

Food and beverage giant San Miguel Corp. said that it will save $300 million annually once it starts sourcing its raw material requirements from local farmers.

In a statement, the company said that it spends "millions of dollars every year" from importing raw materials from the US, Argentina, and India.

San Miguel imports raw materials for its feeds, liquor, and soft drinks businesses. It heavily imports cassava, corn, soybeans and sorghum.

San Miguel Chairman Eduardo M. Cojuangco, Jr. said San Miguel's new raw material sourcing program -- which will source raw materials from local farmers -- will help farmers in the countryside as well as the government in terms of dollar savings.

"We hope to develop these high-value crop growing sectors into a base for self-sufficiency, at least for San Miguel," he said.

The company also said the program is expected to generate one million jobs over a five-year period.

Mr. Cojuangco said other companies should follow the lead of San Miguel and source their raw materials from local farmers. "In doing so they help themselves, they help the government and most important, they help alleviate poverty in rural Philippines. With three out of four poor Filipinos living in rural areas, we need to do our part in countryside development."

The program, San Miguel said, provides farmers with a steady and assured long-term market for their produce. There are three components to the program: training and technology transfer, financing, and the provision of a steady, assured market characterized by stable pricing.

The program has been introduced in Bukidnon, Zamboanga del Sur, South Cotabato, the CARAGA region, Negros, Panay in the Visayas, Central Luzon, Cagayan Valley and Ilocos.

The company said it imports 50% of its cassava, 40% of its corn and 100% of its soybean and soybean meal requirements.

Once the program is in full swing, San Miguel anticipates acquiring 100% of its raw materials from local sources. The company is hoping to fully implement the program in three to five years.

The raw material sourcing program is one of several components of San Miguel's Integrated Agro-Industrial Zone growth model. It clusters in one area several operations starting from raw material sourcing to processing. San Miguel hopes to put up several agro-industrial zones in Central Luzon, Northern Mindanao, Southern Tagalog, Northern Luzon and Visayas.

"In doing so they help themselves, they help the government and most important, they help alleviate poverty in rural Philippines. With three out of four poor Filipinos living in rural areas, we need to do our part in countryside development."
:bow: This is really a good news. :bow:

whoa.. the phisix is down to 1706 pts. whats going on?

profit-taking... correction. value turnover is still high from previous weeks so this means there's still interest in the market... this is normal... Somebody has to cash in on 100 point gains in just two weeks!

one question about stocks. how do you sell? do you sell to a broker? what if nobody wants to buy?

one question about stocks. how do you sell? do you sell to a broker? what if nobody wants to buy?

What kind of stocks do you have? Tech and Pharmaceutical stocks changes hands very frequently. And yeah, you do have to go through a broker to buy/sell stocks, but the broker won't make a move until you say so, they can only trade your stocks and give you advice to make your portfolio financially sound.

ICT Group opens second call center in Philippines
Posted: 8:10 AM | Sept. 16, 2004 | INQ7Money

US-based ICT Group today opened its second call center in Manila, more than doubling its operations to 1,600 seats, Trade and Industry Secretary Cesar Purisima said.

ICT Group, headquartered in Newton, Pennsylvania, is looking for its third office in the Philippines that can accommodate an additional 1,000 seats and would be in operation by February 2005, Purisima said in a statement.

"By the end of 2005, ICT plans to employ some 5,000 employees," he said.

ICT Group provides customer sales and services support for clients across various industries in North America, Europe and Australia. It officially opened business in the country on May 5, with just 250 seats and has expanded to 750 seats.

Demand for office space in the Philippines has returned to pre-1997 crisis levels, with growth likely to continue in the coming years, on the back of a rising trend in business process outsourcing (BPO) and call centers in the country, global real estate services firm CB Richard Ellis said earlier.

The country is host to 60 call center companies whose employees occupy 30,000 seats, working two to three shifts on a 24-hour, seven-days a week schedule.

Meanwhile, around 80 BPOs provide backroom operations for some of the world's top brands and corporations.

The Philippines is challenging India as the call center of Asia, CB Richard Ellis said.

Purisima said, "We are positioning the country as the IT services center in the Asia Pacific region to lure more companies that are in need of skilled professionals which the country has an abundance of."

The Philippines graduates over 380,000 college students annually, especially in accounting, engineering and medical services. Its graduates are also recognized for their fluency in spoken and written English.
-----------------------------------------------------------------------------------
the BPO and call center industry is indeed growing at an extremely rapid pace in the country. I'm sure they can break the estimated 80,000 call center seats by end-2005. plus more for other forms of outsourced services. I just hope that they don't take this growth for granted and instead are encouraged to provide even better training to existing and new workers in this sector in order to attract new players from all over...

US firms remain upbeat on RP
By BERNIE CAHILES MAGKILAT


Despite the fiscal crisis, American businessmen still remained upbeat on the Philippine economy saying they were convinced the Arroyo administration has the political will and support to pursue economic reforms to reduce the yawning budget deficit, which is a major drain on foreign investors’ confidence.


This was the assessment of the US-ASEAN Business Council mission after meeting with the President and her economic team. The group also met with leaders of Congress to get an update on the progress of the proposed tax measures of the government.

The mission composed of senior executives from 21 major US companies was the first major investors group which have visited the country after the May national elections.

"We want to see if the President has political will and support to implement reforms and we found out that she has,’’ said Ernest Z. Bower, president of the US-ASEAN Business Council.

"American companies feel bullish for the Philippines and believe in the reform agenda put forward by President Arroyo,’’ Bower added.

The mission brought up key areas during the meeting including energy, information technology, put back investments on track for build-operate-transfer projects, as well as drive against corruption.

On the issue of the terminal 3 of the Ninoy Aquino International Airport, Bower said the President was keen on opening it and was just looking at some legal way to do it since the project was placed under arbitration.

However, the American business community also noted some areas that needs improvement like the role of courts in the economy.

"Courts should take a more pro-growth, stop delivering decisions on issues that affect millions of jobs,’’ Bower noted.

On the proposed RP-US free trade area agreement, American businessmen doing business in the country put importance to this agreement for practical reasons.

"We really need an FTA and we continue to lobby for this,’’ he said noting that "Malaysia is going to beat the Philippines to the door’’ in forging an FTA with the US.

At present, the US has FTA with Singapore and is working for one with Thailand.

Bower, however, admitted that the US has somehow slowed down the FTA talks following the Iraq issue.

But Philippine Ambassador to the US Albert del Rosario was quick to say that the Iraq policy spat with the US has no relationship at all for both countries in the proposed FTA.

Del Rosario stressed the Iraq issue cannot just wipe out the long history of friendship between the countries which shared the same values and common challenges.

On the competitiveness of the Philippine incentive package vis-a-vis other ASEAN countries, Bower pointed out that businessmen invest in a country because of its comparative advantages.

Tax incentives is an important factor but not make decisions based on incentives alone,’’ Bower said.

Walter S. Conman, executive director of the USASEAN Business Councilor also described the Philippine incentives regime as competitive enough with other ASEAN countries.

Delegates to the mission include senior executive officers the Boeing Co., Citigroup, East Asia Power, General Motors, GNPower Limited, Microsoft, Oracle Corp., Time Warner Inc., Unisys Corp. and UPS.

when is that article dated? interesting... Boeing is opening something up in DMIA or Subic, right? or was it the one that denied those plans? i remember that to be airbus...

profit-taking... correction. value turnover is still high from previous weeks so this means there's still interest in the market... this is normal... Somebody has to cash in on 100 point gains in just two weeks!

thanks for explaining :P

after days of profit-taking... the market seems to be in bullish mode again... :) thank God...

well hopefully the good news about the economy isnt just a fluke but a start of the rise of our dear country... :)

Heck, our economy seems to be going to a positive direction! Hopefully, stocks would surpass 2500 points!I am really happy.

Peso closes at new all-time low of P56.45:$1
Posted: 0:08 AM | Sept. 28, 2004

Joel Francis Guinto
Inquirer News Service with INQ7.net, Agence France-Presse and AFX


THE PESO closed at a new all-time low of 56.45 to the dollar on Monday, weighed down by strong dollar demand, dealers said.

The previous closing low of 56.43 was recorded last June 18, amid the tense canvassing of votes for president and vice president.


Monday's close matched the all-time intra-day low of 56.45 to the dollar recorded last March 22 amid pre-election jitters.

No such political factors caused the peso's fall on Monday.

"It's import season, Christmas is just around the corner, and the price of oil in the world market continues to go up so oil companies are shoring up their inventories," First Grade Holdings managing director Astro del Castillo told INQ7.net.

"Our fundamentals are okay. This is just demand-driven," he added.

The peso opened trading Monday at 56.39 to the dollar and depreciated throughout the day, on volume of 155.5 million dollars. The closing rate was the intra-day low.

"We're seeing legitimate demand, mostly from importers," a currency dealer told AFX-Asia. "I don't expect the peso to fall too much [further] because we're now at the tail-end of the import season."

However, if the peso falls below 56.45 to the dollar it may test the 56.70 level and then 57.00, the dealer said.

Dealers interviewed by the Inquirer said the peso would likely test 56.50 to the dollar unless the central bank intervenes in the market to prop up the currency.

Deputy Governor Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas (BSP) assured the public that the peso was expected to improve with increased foreign exchange inflows starting October.

"The pressure came from month-end and quarter-end demand [from importers] plus slightly weaker regional currencies," Tetangco said in a statement.

He did not comment on rumors that the central bank had intervened in the market on Monday to halt the peso's decline at 56.45 to the dollar.

Traders told the Inquirer that trading the past few days was adversely affected by the maturing of instruments under the Currency Risk Protection Program (CRPP) of the central bank.

The CRPP facility is a non-deliverable forward contract (NDF) between the BSP and a commercial bank with the foreign exchange obligations of the bank's clients as the underlying transaction.

With reports by Doris Dumlao, Inquirer News Service, and Agence France-Presse

_____________________________________________

let's just wait for the xmas season for OFW's to send money back. :jk:

honestly, i hate the way our eco managers handle our situation, & that includes the central bank, WB, ADB, IMF, PSE & that so st***d astro del castillo, who do nothing better but to keep on baffling & baflling our performance, & even GMA herself gets so imperious coz they always underrate our growth rate, but u see, are they right at the end?? no!!! they always forecast ours to grow only at this rate...blahblah,,, but we always outperform & end up w/ a 6.2 % growth, that forces them to revise again our eco rate forecast, how st***d r they!!! sa dami ng problemang pinagdaanan ng pilipinas, achieving an above 6% growth is remarkable, coz not every country can do it, tapos bira cla ng bira sa phils....& now again theyre saying 'ah! ok, so its better than expected, blahblah... but growth rate in the 2nd half would surely slow down coz of oil price hikes as we approaches the xmas season', GANON??! well, lets see then...if we can outperform again. :gunz:

I am optimistic that we will reach a 7.0% GDP growth rate next quarter.... due to increased consumer spending especially this coming Xmas season, increase in OFW remittances, plus a boom in the local stock market which is expected to be extended up to 2005 (hopefully). Services sector continues to climb with opening of new call centers and increased mobile phone subs. I do hope that agriculture production spikes up also. Let's keep our fingers crossed.


Though the things that are not cooperating are the tumbling peso, huge budget gap, and NAIA3 being closed! hehe :)

Stock Exchange at 1851.60 Points!!

Local shares hit their highest level in nearly 56 months yesterday and many in the market now believe the combination of positive developments this year — including robust corporate earnings and an improved political outlook — will draw more funds into a bourse long neglected by both foreign and local investors.


The 30-company Philippine Stock Exchange Index closed yesterday at 1851.60, up 3.6 percent from Friday and 28 percent higher than the end2003 level, making it the best performer in Asia.

Volume was 1.54 billion shares worth R1.56 billion after Friday’s 2.03 billion shares worth to R973.2 million.

Telecommunications stocks, backed by a buoyant cellular market, led the bourse’s rise.

“We may be the best performing market (in Asia), but we are not the most expensive,” said Jose Vistan, economist at AB Capital Securities. “That’s putting some gas into this rally.”

Vistan estimates that at Monday’s close, Philippine shares on average are trading 14 times projected 2004 earnings, compared with 14.5 times for other bourses in Asia.

“Our house call now is to be more aggressive,” said Vistan. “The market can hit the 1900 (resistance) level within the week.”

Indeed, analysts are now pointing to 2000 points as the year-end target for Philippine shares — a level not even imagined during the first half of this year when the country faced a closely-contested election that was won by incumbent President Gloria Macapagal Arroyo, the market’s favorite.

Traders said the election result and Arroyo’s firm resolve to balance the budget by the end of her new six-year term has helped turn investor sentiment. She has asked Congress to pass a number of tax measures that she hopes will rake in R80 billion in additional revenue every year to narrow the fiscal gap and balance the budget by 2009.

In an apparent vote of confidence, foreign funds have flowed steadily into the stock market this year, with net foreign buying of R6.5 billion from the start of 2004, an amount equal to the whole of 2003.

Nearly a third of that came in September, when foreign funds were net buyers of R2.22 billion worth of equities.

“It appears that the bullish trend is intact even with Monday’s run-up,” said Rommel Macapagal, president of Westlink Global Equities. He said the market could head to 2000 points once it breaks 1900 psychological resistance.

Investor confidence in the Philippines has also gotten a boost from the strong economic growth in the first half of this year.

Gross domestic product grew 6.3 percent in the first half of this year, well above a target of 4.9 percent to 5.8 percent due to a resilient services sector and robust farm output. Many economists, including those from the Asian Development Bank and the International Monetary Fund, have upgraded their outlook for the Philippine economy this year.

Traders said that absence of bad news also provided investors with the opportunity to position more aggressively in the market.

Westlink’s Macapagal said that while the market looked promising Monday after Wall Street’s gain on Friday, it got even stronger as foreign funds bought blue chips such Globe Telecom Inc. and Philippine Long Distance Telephone Co. on prospects of strong earnings this year.

Globe closed Monday 4.9 percent higher at a record R1,175, while PLDT gained 3.2 percent to an all-time high R1,465. (Dow Jones)

wohoo!!! way to go! :cheers: :cucumber:

I hope all these good things happening in our country would continue for a long long time. Let's all pray for it, shall we? :D

The bulls are running wild in Manila's market! Better get it on the action!

I am optimistic that we will reach a 7.0% GDP growth rate next quarter.... due to increased consumer spending especially this coming Xmas season, increase in OFW remittances, plus a boom in the local stock market which is expected to be extended up to 2005 (hopefully). Services sector continues to climb with opening of new call centers and increased mobile phone subs. I do hope that agriculture production spikes up also. Let's keep our fingers crossed.


Though the things that are not cooperating are the tumbling peso, huge budget gap, and NAIA3 being closed! hehe :)

A full year growth of 6.1% is more realistic, here's my assesment:

Actual 1stQ - 6.4% 2ndQ - 6.2%
My estimates 3rdQ - 5.7% 4thQ - 6.0%

Full year growth ave: = 6.1%

If the economy performs better than this, then it's remarkable. If not, then it's still ok considering it doesn't fall below 5.8% -- worst case scenario.

BUT this projection is way ahead of the 5.2% growth estimated by the s****d IMF-- who have NEVER predicted the full year growth of our resilient economy for many years now. TOO BAD!!! They're just too pessimistic what a shame. :bash:

This would definitely affect the credibility of the IMF. :cheers:

For our dear peso.... a 56.50 rate for the year-end is possible. It could reach 57 (I hope not) if oil prices continue to rise.

The peso, in my view, will end at 55.40 - most optimistic to 56.50 most pessimistic this year. I hope our OFWs will remit more dollars this Christmas and oil prices will stabilize.

Overall, the economy is improving this year and hopefully the "doomsday sayers" are all wrong. :bash:

awwww... damn oil prices... :(

hopefully Ayala Ave would be full of XMAS light like in 1997... when the market was booming....especially now that the economy is predicted to have a much rosier picture than 2000,01,02,03.... :)

Hope the market reaches 2000+ by yearend. The peso is hopeless. :runaway:

yeah...what can be done about the peso? I was hoping it would improve by now, but its actually getting worse. Serious monetary action should be taken by the BSP to save the peso, but then again it might affect GDP growth.

rmb's predictions sound good. i agree, although IMF did slightly raise their predictions. But i think ADB's and the govt predictions are more accurate.

yeah...what can be done about the peso? I was hoping it would improve by now, but its actually getting worse. Serious monetary action should be taken by the BSP to save the peso, but then again it might affect GDP growth.

rmb's predictions sound good. i agree, although IMF did slightly raise their predictions. But i think ADB's and the govt predictions are more accurate.
i heard the peso is being attacked by speculators (mostly foreign). i read somewhere that is has been heavily attacked three times this year but the attacks were never really successful.

our currency in fact is one of the most undervalued currencies in the world, according to the 'big mac' index, peso is undervalued by as much as 57%, while the swiss franc is most overvalued currency at 40++%, i cnt really remember well....big mac index has been the most famous device being used to measure the purchasing power parity of the currency as well as its value.

yeah...what can be done about the peso? I was hoping it would improve by now, but its actually getting worse. Serious monetary action should be taken by the BSP to save the peso, but then again it might affect GDP growth.


It is all about supply and demand. The more dollars in the country and lesser demand for it, would mean a stronger peso...and vice-versa.

What can be done? Well, it's up to the BSP, OFWs and the oil prices.

However, as an individual we can do something. :jk:

Increase dollar supply:

1. Work abroad and remit the money HERE. Invest your dollars in the
country and put up a business.

2. Invite foreign friends or balikbayan relatives to visit the country & shop.

3. When your aunts and uncles abroad send u gifts, prefer cash in dollars
if possible. :)

4. Exchange all your dollars into pesos in a bank or in money changers
NOT in the black market. (Dollars from the black market doesn't
go to the BSP instead to money launderers.)

5. If you're a businessman, be EXPORT-oriented. Exports mean dollars $$$

Limit Demand:

1. Refrain from buying IMPORTED merchandise as possible. Look at the
labels of the goods you buy (must be Made or Manufactured in the
Philippines)
Back to basics: BUY FILIPINO PRODUCTS. HELP SAVE JOBS.

2. Patronize Filipino companies from restaurants to airlines.
Remember if their foreign, dollars move out.

3. Minimize the use of gasoline. (It's IMPORTED!)

4. Refrain from travelling abroad if possible. (It needs dollars.)

Note: These measures may have very little effect on our currency BUT let's be realistic this is what a common person can do and at least we made a difference.

Imagine if all of us will do the same way. :cheers:

nice suggestion. but for the LIMIT DEMAND (item # 1-4), hmmmm, I think its hard to do.

Limit Demand Number 2 is extremely hard, like mhe-ann said. Most of the richer Pinoys don't care if its Pinoy or not, if it's good quality they buy or use it. Right now we cannot rely on ourselves, we need imported stuff, unlike here in Australia, where most of the stuff here is Aussie made. But as something related to Limit Demand Number 1, i think we should start to be self-reliant. It will take a long time, but the cheaper stuff in China is going to make that hard

rmb's set of suggestions would be the noblest thing to do to help our ailing economy. however, some are do-able, others i considered wishful thinking esp. the Limit Demand. Man, Filipinos always have this "thing" for imported items, i drive my own car- tumbling nako sa #3.
One more thing, life's so hard these days, i myself, withdraws from my dollar account and exchange it in black market... why? kasi mas mataas ang rate and i need the maximum amount i could get.. *my money's worth*

"Work abroad and remit the money HERE. Invest your dollars in the
country and put up a business. "

My family is doing this with 100% commitment. My dad earns dollars here in Jakarta, and we are investing it in our restaurants, mango plantations, property, private consumption and other investment in the Philippines. Plus, in our restaurant operation we only use local goods (construction & normal operation/inventory). The only exported products we use are Canadian, which is ok coz I will have Canadian citizenship soon. So, we help the Philippines a lot and a little of Canada:D

I thought your restaurant had a secret ingridient from indonesia? :?

Are you gonna have dual citizenship?

"3. Minimize the use of gasoline. (It's IMPORTED!)"
Let's encourage the arrival, or the use, of those hybrid cars. And since we have that natural gas area in Malampalaya, why dont we make the best use of that?

nice suggestion. but for the LIMIT DEMAND (item # 1-4), hmmmm, I think its hard to do.

Yeah, its true but items 1 & 2 are easier, we can't totally avoid buying imported products -- especially if there are no local manufacturers for that product, however, as much as possible we have to choose the local product from a foreign product --- 1) if only there's a local manufacturer and 2) it's available in the store you visited.

EXAMPLE: 1) Resturants --- Jollibee or McDO?
2) Banks -- BPI / Metrobank or Citibank / HSBC?
3) Airlines --- PAL or Northwest? (*if same route)
4) Cars --- well, no choice.. is Francisco Motors still alive?
5) Household items --- a lot to choose, look at the labels.
6) Food items --- a lot to choose, too.

***You can only choose if theirs a choice, if none.. then go ahead.***

This measure is really hard to adapt in this country of "colonial mentality". This would be difficult for those brand conscious people, the elite, and those who are not used to using local prducts. Yes, it takes time. But, when can we move on? No wonder why the manufacturing sector is in a slump. -- And there's competition with Chinese goods, ... low wages,... high inflation...... smuggling, ... and so on....well, its all government's work.

Our role as the conusming public...is to buy the products of our local manufacturers to uplift the manufacturing sector...that's it. Remember, they would not increase their production if there's no demand...and it would also cost your job. It is actually the choice of the consumer which dictates the state of the economy. :)

(Note: We must also consider the price and quality of the product. )

1) Resturants --- Jollibee or McDO?
sorry, but I choose McDO. peace. :colgate:

hmm.. I don't think there's local car makers. if there are, probably small-time ones..

how about those Ford's built locally? are those considered local or foreign?:?

Look, there are also foreign brands, which have been established here and rely on local labor or expertise to create and sell their products, should we use less of those?

as for Mcdonalds, sure they're foreign, but do their profits really go to other countries? isn't it most probable that it goes to expansion of their company in the country, and actually helping the economy? You gotta distuingish between a local-made product with a foreign branding and a foreign-made product with a foreign branding.

The really expensive products in a market are probably the imported ones, so i doubt most filipino consumers buy that.

hmm.. I don't think there's local car makers. if there are, probably small-time ones..

how about those Ford's built locally? are those considered local or foreign?:?

Look, there are also foreign brands, which have been established here and rely on local labor or expertise to create and sell their products, should we use less of those?

as for Mcdonalds, sure they're foreign, but do their profits really go to other countries? isn't it most probable that it goes to expansion of their company in the country, and actually helping the economy? You gotta distuingish between a local-made product with a foreign branding and a foreign-made product with a foreign branding.

The really expensive products in a market are probably the imported ones, so i doubt most filipino consumers buy that.

As for cars, those that are built locally with more local content is much preferred than those totally imported cars (including second-hand :bash: )

The issue here is the forex, so as long as it is manufactured HERE (with more local content) whether it is foreign or local then it's ok. Usually those foreign companies putting up branches here are 60% owned locally -- coz of the 40% foreign ownership limit.

EXAMPLE: P&G and Unilever Products, etc.
Del Monte and Bestfoods, etc.

as long as they have the label: "Manufactured in the Philippines by:"then it's OK.

For the McDo case, it's more on patronizing what is Filipino and supporting the company (Jollibee) to become a world leader. This is what happened to Japan. Their people patronized their own companies and look now, Japanese companies became world leaders. (e.g. Toyota, Sony, Canon).

This is because if we patronize a certain company, it will earn more and it will expand. Not just that, it will lead to innovations, thus, improving the quality of its products. Watch CHINA. :runaway:

The problem really, is how to differentiate a local company from a foreign company. The DTI has an important role on this.

I thought your restaurant had a secret ingridient from indonesia? :?

Are you gonna have dual citizenship?



yeah, so?

And, yes we will prolly get dual citizenship.

Cool..in addition to what i said earlier, i also do lots of things to help the peso. When i'm in the Philippines, i always buy P&G, Del Monte products. And we fly PAL to North America. And i prefer Jollibee over McDo.

But ways that we dont help the peso are by using a lot of gas. We travel a lot by car so we consume lots of gas, however i like Petron so does that help?:D And when we fly regional, we often go for Singapore Airlines. We also buy a lot of imported products as well as local products.

yeah, so?

And, yes we will prolly get dual citizenship.


you said you guys only use local products... or i could be missing something..:?

Oh...well everything is local except for that ingredient. But the more expensive stuff (regular food inventory, electronics and construction materials) are local stuff.

Cool..in addition to what i said earlier, i also do lots of things to help the peso. When i'm in the Philippines, i always buy P&G.


But P&G doesn't manufacture most of its products in the Philippines anymore! Even Perla, an original Philippine brand, is imported! It's Unilever that still maintains their manufacturing facilities here.

beh...i dont like Unilever.:D

so you don't use Unilever products @GreyX? like Creamsilk? hehe. :jk:

beh...i dont like Unilever.:D

Easy for you to say, you're in Jakarta, man! There's no escaping Knorr chicken cubes, Ladies' choice sandwich spread, Surf's Lola Obang on TV, etc when you're here on home turf. :colgate: (This smiley is called 'Colgate' by the way, pun certainly not intended).

How else could you make a mean tinolang manok?

Locating the manufacturing facilities somewhere else is P&G's strategic plan.
But mind you, their Asia-Pacific HR and finance jobs are being done here in the country. Including marketing stuff, i think they have centralized it here in the country.
Their manufacturing facility in Cabuyao used to be functional until they subcontracted the detergent manufacturing job to a third party...(according to former workers i talked with). It has something to do with duty rates and labor costs.
Thailand and Indonesia have way lower labor cost than what we got in here. China is way behind whilst Singapore and Korea are way ahead of us by more than two-folds.

Easy for you to say, you're in Jakarta, man! There's no escaping Knorr chicken cubes, Ladies' choice sandwich spread, Surf's Lola Obang on TV, etc when you're here on home turf. :colgate: (This smiley is called 'Colgate' by the way, pun certainly not intended).

How else could you make a mean tinolang manok?

What?? Indonesia is Unilever crazy!! They did a research about a year ago and all households in Jakarta have at least one sort of Unilever product in their homes. Unilever almost controls all the household products sold in Indonesia. They are that dominant. P&G is not very large here, they just released Tide last year over here. And it isnt doing as well as Surf and other Unilever products. Safeguard isnt even sold here, Lifebouy is the number one choice. Thats why whenever we are in the Philippines, we buy lots of Safeguard and Colgate to bring back to Jakarta:D The only P&G product they sell a lot of here is Heads and Shoulders.

I prefer P&G and Colgate-Palmolive for household products over Unilever. And for food products i like Nestle & Kraft vs. Unilever.

i don't like Colgate and Palmolive.
And i don't like Unilever either. I'd prefer P&G products. It's quite surprising to know that P&G products are not available in Jakarta. Maybe they need better marketing strategies.

P&G do sell some of their products in Jakarta, but not many. At the top of my head they sell Tide, Heads & Shoulders and Rejoice. Yeah, they need to penetrate the Indonesian market especially since it is the world's 4th largest populous country.

since you dont like Colgate, what toothpaste do you use?:D

Aquafresh? :D

Errrr...close up! hahahaah...which is a Unilever product. hahahaha...
Colgate is abrasive...more than the other brands. so if you use it more often than necessary, the desired effect might not be achieved. ur teeth's enamel might be corroded...di po ako dentist ah. i dun have a nice teeth either.

I dont like Close-up, they use some kind of chemical that has this weird texture:D Colgate is better.:)

I don't like Colgate, parang lalong kumakapal ang ngipin ko, hindi malinis ang pakiramdam. I use Close-Up (w/ soft blue granules), or the red one. :D I could'nt live w/o close-up, I think. :lol:

I try to only buy products manufactured in the Philippines. So P&G is verboten, while Unilever is preferred. If you all really want to help the Philippines then you should do the same thing. Avoid Johnson & Johnson as well. Try the products of Splash. My favorite toothpaste is Hapee Gold. Sarap! Medyo parang Ricola Swiss herbal candy yung flavor, and not matapang. I get skin allergies if the toothpaste is too harsh, that's why I can't use Close-Up or the orig white Colgate (Colgate Total is better), but I never get allergies with Hapee Gold.

My brother used to work for Wella Philippines, but he had to retire when Wella was bought up by P&G this year. P&G is evil! :)

Had to do a double take on the thread title to see where we were because you were starting to lose me. Yeah... the philippine economy. Which really all boils down to ... toothpaste. of course!

Which reminds me of some forgotten smarty-pants expert who said:'It's the toothbrush not the toothpaste stupid!' :colgate: (There you go... the 'Colgate' smiley strikes again!)

Which made me think if he could be on to something... She?

@Mhe-ann: your insights on toothpaste usage makes you a very good candidate for a focus group. :colgate: (There he goes again!) I swear kumapal ang... Oh, you know the rest.

Had to do a double take on the thread title to see where we were because you were starting to lose me. Yeah... the philippine economy. Which really all boils down to ... toothpaste. of course!

hahaha...!!

anyway, P&G isn't all that bad. like Francis earlier said, they do have their BPO centered in Manila



Return to optimism: proud to be Pinoy
By REP. ROILO S. GOLEZ
....
Procter and Gamble has over 400 people in Makati (average age is 23) doing backup office work for its Asian operations, including finance, accounting, HR and payments processing.
....

yeah. it's not so evil after all.
they manufacture good products.
i onced applied for a job at P&G having in mind that they pay their employees very well. i passed the exam, but not the interview. i dunno, their looking for some kind of attitude that i dunno. they don't want smart, young and confident applicants. i dunno what else are they looking for. hahaha...jowk.
and yeah, id agree, it's on the toothbrush, not on the toothpaste. i just bought a new colgate toothbrush few weeks ago and i hate it. it's so stiff that i feel like there's virtually nothing left on my teeth.
i didn't know Wella was bought out by P&G. Uniliver is more diversified than P&G. They have iced tea juice, etc...

I try to only buy products manufactured in the Philippines. So P&G is verboten, while Unilever is preferred. If you all really want to help the Philippines then you should do the same thing. Avoid Johnson & Johnson as well. Try the products of Splash. My favorite toothpaste is Hapee Gold. Sarap! Medyo parang Ricola Swiss herbal candy yung flavor, and not matapang. I get skin allergies if the toothpaste is too harsh, that's why I can't use Close-Up or the orig white Colgate (Colgate Total is better), but I never get allergies with Hapee Gold.

My brother used to work for Wella Philippines, but he had to retire when Wella was bought up by P&G this year. P&G is evil! :)

Good work. :jk:

Haven't you remembered the issue about P&G more than 10 years ago? About the ban of P&G products because the owner of the company has given up his life to Satan?

haha. I know that issue. And my landlord who worked there told that it was 90% true. interesting...

What happened?

is that the one with the 666 code hidden in all P&G packaging?

if the owner of P&G sold his life to satan, he seems to have gotten a shoddy deal. Look at Bill Gates :D

I just read from inq7.net that during the first 100 days of GMA, the PSE increased by 17 percent, compared to a decrease of 10 during Erap's first 100, and -7% in Ramos' 100

cool...thats a pretty good start to her 100 days. Lets see in the next 6 years of the overall economy, thats what really counts.

Joel Francis Guinto
INQ7.net with Agence France-Presse

(2ND UPDATE) THE ECONOMY, as measured by gross domestic product (GDP), expanded 6.3 percent in the third quarter, beating forecasts, the National Statistical Coordination Board reported Monday.

This brought GDP growth for the January to September period to 6.5 percent, National Statistical Coordinating Board Secretary General Romulo Virola told reporters.

GDP in the previous quarter, meanwhile, was revised to 6.6 percent year-on-year from the previously reported 6.2 percent.

The government forecast for GDP growth in the third quarter was 6.0 percent.

Agriculture and exports were the main drivers of growth, Virola said.

Gross national product (GNP), which includes net income from overseas including dollar remittances of foreign workers, expanded 6.1 percent in the third quarter and 6.2 percent from January to September. The agriculture sector grew 7.9 percent, while services expanded 7.1 percent in the third quarter.

"As you can see from the figures, it will take a big decline in GDP growth [in the fourth quarter for full-year growth] to go below 6.0 percent," Socio-Economic Planning Secretary Romulo Neri said at a news conference.

"Moving forward to the fourth quarter and next year, we see the economy still growing at a healthy but subdued pace," he said.

Scholastica Cororaton, chief for planning and policy at the National Economic and Development Authority, said the official full-year GDP growth target remained at up to 5.8 percent.

"But definitely we will exceed that and this estimate factors in the slower growth in the fourth quarter," she said, adding that agriculture is unlikely to be as strong as in the third quarter.

For 2005, the economy would likely expand 5.3-6.3 percent, she said.

"But we may hit the lower end to middle of that range because of inflation and a higher [budget] deficit," Cororaton said.

The government's plan to absorb about 200 billion pesos (3.57 billion dollars) in debts of state utility firm National Power Corp. in 2005 has forced it to raise the deficit ceiling next year to 193.3 billion pesos (3.45 billion dollars) from the initial 184.5 billion pesos (3.29 billion dollars).

This is still lower compared to this year's ceiling of 197.8 billion pesos (3.53 billion dollars).

The positive growth figures came just months after President Gloria Macapagal-Arroyo and state economists warned of a looming fiscal crisis over the country's huge debts and fiscal deficit.

She has since called for the passage of key revenue measures in Congress and said that the crisis appears to have abated.

The government said it expects inflation to average 5.7 percent for 2004, exceeding the government's target of 4.00 to 5.00 percent, with the pressure seen lingering into 2005 mainly due to higher energy prices.

Originally posted at 10:20 AM, updated 11:26 AM, with a report from Agence France-Presse :)

-----------------
Looks like it has beaten my expectation of 5.7%... :cheers:

great news...! the Philippines hasn't seen numbers like these in years...!! I just hope inflation finally settles down by early next year. it's been boiling up like crazy for the past few months. hopefully GDP growth will go back up to 7%++ within two years, like PGMA is targeting. or was targeting.

Wow, that's an astounding number. Congratulations to our country. Hopefully the gov't would concentrate on improving the lives of the poor now ;)

Superb news!! 6.3% GDP growth is excellent and ideal for the Philippines. Now, if only they can maintain this so that yearly growth in the future will be 6+%.

i knew it!!!!! although hindi 7... am still happy! that's big growth... if most people could feel it.. they'll keep shush

I'm praying that the 4Q figures will top those of the three other Quarters.

Remember the 4Q is always the time of unbelievable spending and consumption due to the Christmas Season.

I hope that the Philippines GDP Growth this year will be near the 7% mark. Let's all pray for that!