The Philippine Economy

[RonnieR]

PH belongs to Top Ten for Coke's global ranking.

Coke’s $1B plant nears completion

1st major foreign investment under Aquino
By Daxim Lucas
Philippine Daily Inquirer
First Posted 19:56:00 04/03/2011

Filed Under: Plant Openings, Investments, business, Anniversaries, Philippines - Regions

MANILA, Philippines—One of the biggest foreign investments snared so far by the administration of President Aquino is about to bear fruit with the impending completion of Coca-Cola’s bottling plant in the province of Misamis Oriental.

According to officials of Coca-Cola Bottlers Philippines Inc., the facility—one of the largest in the region and rivaling its main facility in Sta. Rosa, Laguna, in size—was the centerpiece of the $1-billion investment program committed by the company to the government during the President’s US visit last year.

Part of the resources used for the purchase of the 11-hectare property in the town of Villanueva and the construction of the facilities came from the initial investment committed through former President Arroyo in 2009.

The rest, including the purchase of machinery and equipment, as well as employee training, were taken from the fresh investment last year.

“The construction of our Villanueva Plant in Misamis Oriental is on track and should be operational in a couple of months,” said Coca-Cola’s country CEO Bill Schultz. “This will be one of our largest plants in the region and is expected to generate significant employment opportunities in the area.”

According to the Coca-Cola official, the Philippines ranked on the top 10 of all markets globally for the company’s beverage products.

Last year, Coca-Cola Philippines recorded double-digit growth, led by its flagship brand Coca-Cola. The company also recently expanded a no-added preservatives formulation of the Minute Maid Pulpy brand with real pulp and juice.

“We remain committed to the Philippines, where we will celebrate 100 years in business in 2012, and uphold our confidence in the Philippine economy and the continued growth of our brands,” Schultz said.

The Coca-Cola Co., which operates 23 plants and 47 sales offices with more than 7,000 employees across the Philippines, will focus the rest of the investment on marketing and logistics.

“We also continue to invest in the community. Currently The Coca-Cola Co. has built 80 Little Red Schoolhouses in remote areas in the Philippines, benefiting over 40,000 students,” Schultz said. “Now the Coca-Cola Foundation is working at constructing an additional 20 Little Red Schoolhouses to reach our goal of 100 Little Red Schoolhouses by 2012, the 100th year anniversary of Coca-Cola in the Philippines.”

Coca-Cola has been in the Philippines since the beginning of the 20th century and has been locally producing its flagship product since 1927, with the country subsequently receiving the first non-US national Coca-Cola bottling and distribution franchise
http://business.inquirer.net/money/t...ars-completion

[kenken94]

Coke, wala talagang tatalo diyan....... Centennial na pala sila dito sa Pinas next year!

[Talata.Productions]

Originally Posted by RonnieR

PH belongs to Top Ten for Coke's global ranking.

Coke’s $1B plant nears completion

1st major foreign investment under Aquino
By Daxim Lucas
Philippine Daily Inquirer
First Posted 19:56:00 04/03/2011

Filed Under: Plant Openings, Investments, business, Anniversaries, Philippines - Regions

MANILA, Philippines—One of the biggest foreign investments snared so far by the administration of President Aquino is about to bear fruit with the impending completion of Coca-Cola’s bottling plant in the province of Misamis Oriental.

According to officials of Coca-Cola Bottlers Philippines Inc., the facility—one of the largest in the region and rivaling its main facility in Sta. Rosa, Laguna, in size—was the centerpiece of the $1-billion investment program committed by the company to the government during the President’s US visit last year.

Part of the resources used for the purchase of the 11-hectare property in the town of Villanueva and the construction of the facilities came from the initial investment committed through former President Arroyo in 2009.

The rest, including the purchase of machinery and equipment, as well as employee training, were taken from the fresh investment last year.

“The construction of our Villanueva Plant in Misamis Oriental is on track and should be operational in a couple of months,” said Coca-Cola’s country CEO Bill Schultz. “This will be one of our largest plants in the region and is expected to generate significant employment opportunities in the area.”

According to the Coca-Cola official, the Philippines ranked on the top 10 of all markets globally for the company’s beverage products.

Last year, Coca-Cola Philippines recorded double-digit growth, led by its flagship brand Coca-Cola. The company also recently expanded a no-added preservatives formulation of the Minute Maid Pulpy brand with real pulp and juice.

“We remain committed to the Philippines, where we will celebrate 100 years in business in 2012, and uphold our confidence in the Philippine economy and the continued growth of our brands,” Schultz said.

The Coca-Cola Co., which operates 23 plants and 47 sales offices with more than 7,000 employees across the Philippines, will focus the rest of the investment on marketing and logistics.

“We also continue to invest in the community. Currently The Coca-Cola Co. has built 80 Little Red Schoolhouses in remote areas in the Philippines, benefiting over 40,000 students,” Schultz said. “Now the Coca-Cola Foundation is working at constructing an additional 20 Little Red Schoolhouses to reach our goal of 100 Little Red Schoolhouses by 2012, the 100th year anniversary of Coca-Cola in the Philippines.”

Coca-Cola has been in the Philippines since the beginning of the 20th century and has been locally producing its flagship product since 1927, with the country subsequently receiving the first non-US national Coca-Cola bottling and distribution franchise
http://business.inquirer.net/money/t...ars-completion

I can't really recall but IIRC Former Pres. Gloria Arroyo mentioned in one of his foriegn visits he cited that she bought home a "Future" $5b investment from Coca-Cola. A lot of people criticized him back then saying that she was counting ducks before the eggs hatch. But I could be wrong though.

[Fraulein]

It's true. GMA focus on long term goals kaya ganon.

[amigo32]

I concur.

[le Reine]

Originally Posted by Talata.Productions

I can't really recall but IIRC Former Pres. Gloria Arroyo mentioned in one of his foriegn visits he cited that she bought home a "Future" $5b investment from Coca-Cola. A lot of people criticized him back then saying that she was counting ducks before the eggs hatch. But I could be wrong though.

It was said in passing in the news article that you've just quoted.

[Kintoy]

Originally Posted by Fraulein

It's true. GMA focus on long term goals kaya ganon.

Merciditas gutierrez and the appointed SC justices were also part of her long term investments

[first knight]

Originally Posted by Kintoy

Merciditas gutierrez and the appointed SC justices were also part of her long term investments

I concur.

[first knight]

Philippines’ per capita income hits $2,000, finally



by Roderick T. dela Cruz
Manila Standard
April 4, 2011


THE Philippines last year joined Asia’s emerging markets with an expanding middle class after it posted a per-capita gross domestic product of more than $2,000, according to economists.

That was double the country’s per capita income a decade ago, although it remains one of the smallest in Southeast Asia.

Per-capita income rose after the country’s gross domestic product grew 7.3 percent in 2010 while the peso appreciated by about 5 percent against the dollar during the same period.

Bangko Sentral Governor Amando Tetangco Jr. said last year’s GDP growth was the highest in 34 years, while inflation had been manageable.

“The 3.8 percent inflation rate for 2010, together with the fastest economic growth rate registered in decades, put our country in what some analysts have described as, the Goldilocks world, where everything is just right,” Tetangco said.

Bank of the Philippines Islands president Aurelio Montinola III said the $2,000 per-capita threshold was crucial for any developing economy. Reaching it marked a turning point for countries such as Thailand in growing their consumer market with a capacity to buy cars and houses.

Montinola, who is also president of the Bankers Association of the Philippines, confirmed that “2010 proved to be a good year for the banking industry and for BPI in particular.”

But former Economic Planning Secretary Cielito Habito said the Philippines’ per capita income, which used to be bigger than Thailand’s in the 1970s, was now just a third that of Thailand’s.

Just the same, banks were excited about the rising per capita income in the Philippines, which helped them grow their profit by a third last year.

Vehicle sales tripled last year, while property developers built thousands of new residential units because of the increasing demand from the new middle class—the Filipinos working abroad, business process outsourcing professionals, and the college-educated new entrants to the labor force.

The National Statistical Coordination Board placed the per capita gross domestic product of the Philippines in 2010 at P90,552 at current prices, while the Bangko Sentral said the peso averaged 45.1097 against the US dollar.

That translated to a nominal per capita GDP of $2,007.37 in the Philippines in 2010, which compares with less than $1,000 in 2000.

About 94 million Filipinos contributed to a total of P8.513 trillion GDP and P9.75 trillion GNP last year.

Per capita GDP was estimated at only $1,748 in 2009, or P83,261 using an average exchange rate of 47.637 to the dollar.

Per capita gross national product, which includes income from abroad, actually began exceeding the $2,000 mark in 2009, when it hit $2,005. That was based on a per capita GNP of P95,525 in peso terms, and computed at an average exchange rate of P47.637 to the dollar.

Per capita GNP climbed to $2,299.08 in 2010 based on an estimated per capita GNP of P103,711 in peso terms, and an average exchange rate of P45.1097 to the dollar.

Economic Planning Secretary Cayetano Paderanga said the government was committed to growing the economy by 7 to 8 percent annually over the next six years, although he refused to predict the peso’s direction against the US dollar.

[diz]

dang everyone's so rich!

[rain34]

Originally Posted by first knight

Philippines’ per capita income hits $2,000, finally



by Roderick T. dela Cruz
Manila Standard
April 4, 2011


THE Philippines last year joined Asia’s emerging markets with an expanding middle class after it posted a per-capita gross domestic product of more than $2,000, according to economists.

That was double the country’s per capita income a decade ago, although it remains one of the smallest in Southeast Asia.

Per-capita income rose after the country’s gross domestic product grew 7.3 percent in 2010 while the peso appreciated by about 5 percent against the dollar during the same period.

Bangko Sentral Governor Amando Tetangco Jr. said last year’s GDP growth was the highest in 34 years, while inflation had been manageable.

“The 3.8 percent inflation rate for 2010, together with the fastest economic growth rate registered in decades, put our country in what some analysts have described as, the Goldilocks world, where everything is just right,” Tetangco said.

Bank of the Philippines Islands president Aurelio Montinola III said the $2,000 per-capita threshold was crucial for any developing economy. Reaching it marked a turning point for countries such as Thailand in growing their consumer market with a capacity to buy cars and houses.

Montinola, who is also president of the Bankers Association of the Philippines, confirmed that “2010 proved to be a good year for the banking industry and for BPI in particular.”

But former Economic Planning Secretary Cielito Habito said the Philippines’ per capita income, which used to be bigger than Thailand’s in the 1970s, was now just a third that of Thailand’s.

Just the same, banks were excited about the rising per capita income in the Philippines, which helped them grow their profit by a third last year.

Vehicle sales tripled last year, while property developers built thousands of new residential units because of the increasing demand from the new middle class—the Filipinos working abroad, business process outsourcing professionals, and the college-educated new entrants to the labor force.

The National Statistical Coordination Board placed the per capita gross domestic product of the Philippines in 2010 at P90,552 at current prices, while the Bangko Sentral said the peso averaged 45.1097 against the US dollar.

That translated to a nominal per capita GDP of $2,007.37 in the Philippines in 2010, which compares with less than $1,000 in 2000.

About 94 million Filipinos contributed to a total of P8.513 trillion GDP and P9.75 trillion GNP last year.

Per capita GDP was estimated at only $1,748 in 2009, or P83,261 using an average exchange rate of 47.637 to the dollar.

Per capita gross national product, which includes income from abroad, actually began exceeding the $2,000 mark in 2009, when it hit $2,005. That was based on a per capita GNP of P95,525 in peso terms, and computed at an average exchange rate of P47.637 to the dollar.

Per capita GNP climbed to $2,299.08 in 2010 based on an estimated per capita GNP of P103,711 in peso terms, and an average exchange rate of P45.1097 to the dollar.

Economic Planning Secretary Cayetano Paderanga said the government was committed to growing the economy by 7 to 8 percent annually over the next six years, although he refused to predict the peso’s direction against the US dollar.

wow this is a great indication of growth. More income means more spending and more spending means good business!!!

[le Reine]

USD2,000 and we're ecstatic. Whew, how long it took us to reach that.

[rain34]

Originally Posted by le Reine

USD2,000 and we're ecstatic. Whew, how long it took us to reach that.

any increase should be a welcome...you may know it could be the start

[le Reine]

Originally Posted by rain34

any increase should be a welcome...you may know it could be the start

I know. I was merely reflecting. I'm still glad of course.

[bitoy]

We may not be rich but we are happy and honest (now).


hehehe!

[RonnieR]

GNP per capita is $2,300 including income received from abroad.

Former Secretary Habito failed to mention about the population. Had PH maintained the population growth with that of Thailand since 1970s, our per capita income would have surpassed $3,000++. Yes, it is still lower vs. GDP per capita of Thailand in 2010 but it is attributable to the dark years under Marcos regime wherein PH suffered negative growth.

[watcher09]

Originally Posted by le Reine

I know. I was merely reflecting. I'm still glad of course.

When I was still studying, it was less than a thousand dollars, though, a little bit higher than Indonesia's. Our GNP then was less than a third or half of South Korea's, and Taiwan's. The editorial cartoon of a daily I was reading pictured SoKor, Taiwan, HK and Singapore as happy healthy kids taller than PH. PH was a little kid leaning on a bar measuring his height saying "Tatangkad din ako katulad ninyo!" We must believe it.

[kenken94]

PHL bank resources rose by 11% to P7.23T in 2010
Monday, 04 April 2011 20:06 Jun Vallecera / Reporter

IN 2010, when the country’s local output was at its fastest in 30 years, the banks accumulated resources 11 percent more than previous to P7.23 trillion.

It capped a year of steady asset buildup, beginning with assets of only P6.42 trillion in January, when the global financial system was beginning to recover from two years of recession.

This was also the year when the entire Philippine financial system similarly expanded by 10.2 percent to P9.04 trillion from only P8.20 trillion.

Their combined lending activities, the Bangko Sentral ng Pilipinas would later say, helped push the economy forward last year at a rate of 7.3 percent in terms of the gross domestic product.

The large expanded-license banks, also called universal banks, posted assets totaling P6.42 trillion, which was 11 percent more than year-ago assets of only P5.78 trillion.

Universal banks, unlike their regular commercial-bank counterparts, are allowed to engage in such allied undertakings as real estate and other nonbank ventures.

The regular commercial banks which had assets of P553.62 billion at the start of 2010 ended the year with assets 13 percent more than previous to P629 billion.

In 2009 the regular commercial banks posted assets collectively worth only P556.1 billion.

Thrift banks, which had assets worth only P178.2 billion in 2009, were not able to submit updated reports to the Bangko Sentral ng Pilipinas (BSP) during the period, although the nonbank financial institutions posted 7.2 percent more assets last year than they did in 2009.

According to the BSP, the assets of nonbank financial institutions, which may lend their funds to a fixed number of borrowers, totaled P1.881 trillion from P1.689 trillion.

BSP Gov. Amando M. Tetangco Jr. previously said 2010 was a year marked by peso liquidity growth of around 10 percent that fostered noninflationary local output.

Inflation last year averaged only 3.8 percent, which was near the low end of the official inflation target, ranging from 3.5 percent up to 5.5 percent, even as economic growth was at its highest in 30 years averaging 7.3 percent.

As the Philippines was blessed by a benign inflation environment last year, the policymaking monetary board of the BSP was able to keep its policy rates unchanged during the entire period when these stood at 4 percent for borrowing and only 6 percent for lending.

More recent events and price conditions obtaining at the moment, however, finally convinced the BSP to raise its policy rates on March 24 as a preemptive strike against rising inflation pressures.

The policy rates of the BSP, which help anchor domestic lending rates whenever businesses and households ask the banks for money, had been raised 25 basis points to 4.25 percent and 6.25 percent, respectively.

http://businessmirror.com.ph/home/ba...-p723t-in-2010

[kenken94]

Philippine Airlines returns to India after 57 years
Thursday, 31 March 2011 20:21 Recto Mercene / Reporter 


NEW DELHI—Flag carrier Philippine Airlines (PAL) inaugurated its regular service here on Wednesday, linking the country with the Indian capital of New Delhi. The non-stop flight took six -and-a-half hours and touched down at the Indira Gandhi International Airport at 2:30 am with more than 200 passengers onboard. 

Key government and PAL officials, led by airline chairman Lucio C. Tan, were welcomed by India’s tourism officials, businessmen, investors, travel and tourism officials.

Vivienne K. Tan, PAL executive vice president for commercial group, said the launch of the Manila-New Delhi route “is in step with the government’s program to perk up the economy by bringing in more tourists and serves as a vital air link between [the] two countries.”

Jaime Bautista, president and chief executivesaid: “PAL is flying to an India that’s a destination in its own right. [The] country has emerged in recent years as one of the world’s economic powerhouses. The booming economy has spawned a high-spending middle-class of 350 million consumers and is growing by 20 million every year, for whom travel is a major aspiration. In 2009, about 8 million Indians traveled abroad, of which 2 million went to Southeast Asia.

Bautista, however, pointed out that only 32,817 Indians visited the Philippines, far behind the figures in Singapore (726,000), Thailand (611,983), Malaysia (589,838), and Indonesia (150,000).

He said PAL will aim to accelerate this traffic stream by making available over 188,000 airline seats a year for Indian travelers. He added that these travelers now enjoy the convenience of having their travel time greatly reduced from the previous 10 to 30 hours via a third-country connection to just six and a half hours with direct PAL flights.

“Our new service also aims to increase Filipino visitors to India. The Indian government has made our job much easier when it adopted, earlier this year, a visa-on-arrival policy for Filipinos,” Bautista said.

PAL’s new service is also expected to boost business travel between the two countries, particularly in the rapidly growing information technology sector.

PAL is allocating 188,000 seats a year on the Indian route, in keeping with the provisions of the 2005 Philippine-Indian air services agreement that also allows PAL to fly seven times a week from any point in the Philippines to Mumbai, Calcutta and Chennai (formerly Madras).

PAL’s return to India coincides with the carrier’s 70th anniversary and underscores the storied past of Asia’s first airline.

The flag carrier first flew to the subcontinent on May 3, 1947 when it stopped in Calcutta on a pioneering DC-4 service from Manila to Rome, Madrid and London, making PAL the first Southeast Asian airline to fly to Europe.

The stopover in Calcutta was essential because the propeller-powered DC-4 had limited range. The journey from the Far East to Europe took two days and frequent stops were necessary.

Despite the distance, the Manila-Calcutta and vice-versa legs of PAL’s flights to Europe were quite popular. India and the Philippines were young, newly independent republics then and there was much interaction between the two nations.

In 1954, the Philippine government ordered the suspension of PAL’s long-range services, including the one to Europe, as an austerity measure in the midst of an economic recession. Unfortunately, this had the unintended effect of cutting off the Calcutta connection.

When PAL resumed European flights in 1969, the new DC-8 jets made technical stops in South Asia unnecessary. Regrettably, the link to India was never restored—until today.

Philippines is a hot destination for Indian companies engaged in business process outsourcing, with the country now hosting more than 20 Indian BPO firms, including such industry giants as Accenture, Infosys, Aegis, Genpact, Wipro and Tata Consultancy Services.    

http://businessmirror.com.ph/home/co...after-57-years

[wino]

Originally Posted by le Reine

I know. I was merely reflecting. I'm still glad of course.

I am glad as well.