The Philippine Economy

[diz]

Originally Posted by Ady001

Question lang...

Japan keeps on outsourcing most of their manufacturing jobs yet we don't hear them complain but the contrary happens with the US. any thoughts?

our unemployment is around 10% while it has been quite obvious how the government is bought. within the past 30 years since citizens united was passed by congress, the US has been killing the middle class by taxing us unreasonably more than the "job creators". the US has been pampered with the idea that it is the best, most powerful country in the world bar none ever since the end of the cold war. now the money's leaving. we want the glory (and money) back.

[Ady001]

Last I heard it's been hovering around 7% to 8%...

[LuckyLady]

Originally Posted by Ady001

Question lang...

Japan keeps on outsourcing most of their manufacturing jobs yet we don't hear them complain but the contrary happens with the US. any thoughts?

japanese are not the complaining type of people

[Bosnyboy]

Originally Posted by mwg12a

I am not really closing my doors on the possibility of investing in the Philippines especially for my retirement, I have it all these while at the back of my head, although, retirement is still far far away for me, it's not really bad to start thinking about it now. The point I was making back there was on the issue on "political instability" in the Philipppines that apparently, a FilAm or any pinoys who wanted to buy property in the Philippines would be discouraged. I don't see why. @Lili made a presumption that the political instability now in the Philippines just started when the truth of the matter is, it has always been there. EDSA 2 revolution was a renewed beginning of political instability in the Philippines, it was reinforced when "hello garcie" scandal came into the picture when the clammor for Arroyo's resignation was evident with threats to unseat her. I respect Lili's political view but I just simply don't understand why she thinks these political instability in the country just started. It seems like she didn't even realize how rampant was the corruption under Arroyo administration not just by her but in many sectors along with the many insurgent threats and political killings of journalist uncovering government and military officials commiting crimes and murders under Arroyo's watch. This is why I am more sympathetic on Petter Wallace's assessment on Philippines "false economic growth" under Arroyo since it didn't translate to more job creating and decreased poverty level, not when the exodus of OFW deployment tripled as the Philippines GDP starts to climb. What even more appalled me was more filipinos started to learn eating "pagpag" under her so called economic reform.. It simply just not add up, it didn't make sense...

Sometimes I find you soooo funny. You keep defending pnoy like he is the hope of the philippines and that he can do no wrong. You believe that he is pure and righteous and could bring about positive change in our country and yet why dont you put your money where your mouth is. Have you bought any real estate property in our country lately, put some investments in our banks, setup a mfg biz to help make pnoy's aspiration come true? Pambihira ka.

[Bosnyboy]

Economy grew substiantially in the last admin as manifested by the boom in the real estate market, the growth of investments in the BPO industry . 15 years ago, most filipinos have never tasted angus beef, nor drink exotic coffee, most filipinos have never had a celphone. and owning a condo unit is a dream then. Fastfoward to today, we get to enjoy better things, buy branded products like LV, gucci, hermes, apple products. But the thing with the growth of the economy was that it was limited to a very small percentage of the general population such that majority was still living below the poverty line as manifested by people resorted to eating papag. The gap between the rich and the poor has grown ever wider but if we are talking about economic growth in the past admin, yes it grew substantially.

[wheel of steel]

Originally Posted by Bosnyboy

Sometimes I find you soooo funny. You keep defending pnoy like he is the hope of the philippines and that he can do no wrong. You believe that he is pure and righteous and could bring about positive change in our country and yet why dont you put your money where your mouth is. Have you bought any real estate property in our country lately, put some investments in our banks, setup a mfg biz to help make pnoy's aspiration come true? Pambihira ka.

Yup I agree with you.. Hes defense mechanism with Abnoy is really worth dying for but it's too lengthy and boring to read. Minsan iniisip ko na lang baka close friend sya ni Abnoy o isang taga ABiasCBN o kaya brothers and sisters sa FEDERACION. Not one of us kasi here reaveals our identity so inaasume ko na lang talagang die hard supporter sya ni Abnoy.

[3cr]

Originally Posted by todjikid

hindi naman in opposition and dalawang reports a? ADB just says that there is this "other possibility" of a trap. I think you even highlighted it.

Yup they're not opposing but more complimentary really. Rright ADB is only giving a word of caution so as to avoid falling into the trap. Btw here's more interesting info regarding the matter... sana nga the PNoy Admin/Gov't is really laying down the necessary foundation for long-term growth as these articles are pointing out.

Philippine economy rising
Business Mirror
Sunday, 15 January 2012 20:45
http://www.businessmirror.com.ph/hom...economy-rising

With banking giant Hongkong and Shanghai Bank (HSBC) announcing recently that the Philippines can be one of the world’s top economies by 2050, it is encouraging that this independent and credible financial organization sees the enormous potential our country has for economic growth, and that if this potential is nurtured, the outcomes will be concrete and tangible and will provide benefits for the nation and its people.

In the HSBC report, the Philippine economy is forecast to rise 27 places upward to 16th rank less than 40 years from now.

The Philippines was also marked as one of 26 “fast-growth” countries expected to register “an average expansion of more than 5 percent per year.”

Despite a “very low level of development,” the report says the Philippines is among those countries that has made “great progress in improving fundamentals. As they open themselves to the technology available elsewhere, they should enjoy many years of ‘copy-and-paste’ growth ahead.”

The Philippines was noted as being one of the “truly remarkable hot spots in Asia…. The star performer, however, is the Philippines, where the combination of strong fundamentals and powerful demographics gives rise to an average growth rate of 7 percent for the coming 40 years.”

Noted as contributing to the country’s progress are the “improvements in its economic infrastructure,” with the “fast-growing population…expected to increase the country’s labor force, which likewise benefits from the quantity and quality of education.”

HSBC projected the Philippines’s average gross domestic product growth at 8.4 percent from 2010 to 2020, 7.3 percent from 2020 to 2030, and 5.8 percent from 2040 to 2050.

The report stated further that China is expected to become the No.1 economy, followed by the United States, India, Japan and Germany in the top five, in that order. Many smaller economies will move up, such as Peru (to improve by 20 places), Egypt (+15), Nigeria (+9), Malaysia (+17) and the Ukraine (+19). Many European countries may decline, especially those in Northern Europe, because of a smaller work force and the rise of developing nations—Denmark (-29), Norway (-22), Sweden (-20), and Finland (-19).

Among the factors that contribute to long-term economic growth are demographics—the size of the working population—and the opportunities for each individual to be more productive.

In order to create a milieu conducive to promoting productivity, there must be the following significant factors: opportunities for education, democratic governments, and strong rule of law.

Factors that could derail progress are war, energy-consumption constraints, climate change, and barriers to population movement across borders.

The report comes with a caveat: “We openly admit that behind these projections we assume governments build on their recent progress and remain solely focused on increasing the living standards for their populations….Of course, this maybe an overly glossy way of viewing the world.”

The Philippines under President Aquino is already putting those measures for growth in place. Economic growth showed a strong uptick in 2011, when the Philippine Stock Exchange closed with a 4.1-percent gain. This made it Asia’s best-performing economy for the year.

In another report, to create a climate conducive to more growth, the Association of Southeast Asian Nations is working toward “a unified trading bloc with free-flow capital by 2015.” Electronic-trading links will be set up in Asian countries to “allow more investments and raise liquidity,” starting in 2012 in Malaysia, Thailand and Singapore, followed later by the Philippines.

In addition, the Aquino administration has taken larger steps toward fighting graft and corruption via the Good Governance and Anti-corruption Cluster (GGAC) Plan for 2012-2016, which was approved on January 3. It will simplify and integrate the government’s anti-graft and -corruption systems.

Necessary legislations and policies will be reviewed and strengthened, while digitization and innovations in government operations will be promoted, backed by an aggressive advocacy and communication campaign. Once these measures are in place, the government expects the business and economic environment to improve further.

President Aquino said as much in his toast at the vin d’honneur at Malacañang on January 13 (the ceremony is the Palace’s traditional New Year’s celebration for the diplomatic corps):

“We have already made great strides in our fight against corruption and poverty, as well as in our thrust to create a progressive economic climate guided by fair and honest practices. Local and foreign groups have acknowledged our triumphs by investing in our country, by lauding our efforts in open governance, and by supporting our programs.

“At the heart of our work for the next year lies a desire to secure for our people a better standard of life, and a brighter future. And all of you present here today are crucial to achieving that goal.

“This year, we will strengthen the programs that work for our countrymen, such as those in education, health, housing, and others like our Conditional Cash Transfer Program.

“We will not relent in our quest to hold accountable those who seek to perpetuate the culture of impunity in our country.

“We will continue to ensure the safety of our nation: by upgrading our defense capabilities, and by working to achieve peace, while pursuing lawless and criminal elements.

“We will continue to sustain the growth of our economy and create opportunities for employment.

“These are not without their challenges, but I am confident that so long as we stand together and remain consistent in our service to the public, our countrymen will be behind us every step of the way, as we work toward success.”


_____________________________



Rating Upgrade Within Q1 Possible
By CHINO S. LEYCO
Manila Bulletin
January 15, 2012
http://mb.com.ph/articles/348198/rat...in-q1-possible

MANILA, Philippines — The Aquino administration may likely get its investment grade rating within the first-three months of the year due to the country’s manageable debt to gross domestic product (GDP) ratio and lower than programmed budget deficit in 2011.

Metrobank Group’s First Metro Investment Corporation (FMIC) as the well as the University of Asia and the Pacific (UA&P) said in a report that a fiscal deficit of P180 billion or lower would bring the debt-to-GDP ratio to less than 50 percent, the first time in 30 years.

“This development could lead to a credit rating upgrade in first-quarter 2012,” the report stated.

Moody’s Investor Services upgraded the Philippines’ dollar denominated bonds from “Ba3” to “Ba2” in June last year. Fitch subsequently upgraded the country’s long-term foreign currency issuer rating to “BB+” from “BB”, bringing its foreign debt just one notch below investment grade.

And most recently, Standard and Poor (S&P) upgraded its Philippine outlook from “stable” to “positive.”

Data from the Department of Finance showed that from January to September last year, the country's debt-to-GDP ratio, one of the main indicators being looked at by credit rating agencies, fell to 51.09 percent from last year’s 52.4 percent due to “debt measures” the government undertook.

With a much lower debt-to-GDP ratio, it means that the country’s economy is growing faster than its debt and the government’s budget deficit is also contained.

The finance department has set a 55.5 percent debt-to-GDP goal last year after the ratio fell to 55.4 percent in 2010, which was lower than the 57 percent target.

Meanwhile, the Department of Budget and Management (DBM) said that the budget deficit in 2011 may be sharply narrower against target despite higher spending in the final months of the year.

The government's budget shortfall may have reached P140 billion to P170 billion in 2011. That is around 47 percent to 57 percent of the P300 billion fiscal shortfall ceiling last year.

The government had vowed to accelerate spending of P72 billion on fast-moving projects in the final three months of 2011 to support the economy which had lost significant momentum due to slow public spending and sluggish exports.

Data from the DBM showed 96 percent, or P69.3 billion of the government's P72-billion spending plan had been released to agencies and state-owned and -controlled corporations as of end December 2011.

The government posted a budget deficit of P22 billion in November, bringing the 11-month shortfall to P96.3 billion, or just 32 percent of the full-year target.

The Aquino administration wants to bring down the deficit to 2.6 percent this year and to 2 percent by 2013, keeping it at that level until 2016 when President Benigno Aquino's term ends.

[mwg12a]

Originally Posted by Bosnyboy

Sometimes I find you soooo funny. You keep defending pnoy like he is the hope of the philippines and that he can do no wrong. You believe that he is pure and righteous and could bring about positive change in our country and yet why dont you put your money where your mouth is. Have you bought any real estate property in our country lately, put some investments in our banks, setup a mfg biz to help make pnoy's aspiration come true? Pambihira ka.

When? What? Where? I was whole heartedly defending Pnoy? Problem with you is that you have selected reading issue. Did you not hear me say how weak Aquino and the reason why I am giving shed light to some if his critic is that I am just avoiding more filipinos to rally behind another people's revolution that didn't really resulted to more jobs and lower poverty level? I do not have to buy any property there, I pretty much own some through the estate I am inheriting through my parents. That pays taxes to your government. And for you to criticize me aboutnot setting up manufacturing business there in your country. YOU YOURSELF HAVEN't start any business that would EMPLOY YOUR FELLOW FILIPINOs. MAS PAMBIHIRA KA! Andiyan ka na magiintay ka pa ng biyaya ng galing sa ibang bansa. Parehas na yan sa ibang filipino na nagiitany ng remittances galing sa ibang bansa. ATLEAST AKO, sumusuporta sa pagpapaaral ng mga orphan diyan para makatapos ng Colegio man lang, kaunting halaga buwan buwan, may isang kabataan na ngayon na nakatapos ng colegio dahil sa donasyon ko IKAW? MAY PINAARAL KA NA BA NA HINDI MO KAANO ANO?? SIno kaya ang makikinabang sa mga recipient ng donation namin? Pinoy na magiging professional at mag cocontribute sa economy ng PINAS. IKAW?? MAYROON KA BANG CONTRIBUTION O diyan ka lang magaling, mag intay ng maiipipintas sa mga nasa ibang bansa dahil nagseselos ka?

[amigo32]

Yes, you are always defending Pnoy
as if she/he is the messiah

[Parchie]

Originally Posted by LuckyLady

japanese are not the complaining type of people

Could have said it like what you just said. TY

[expatdingdong]

Originally Posted by mwg12a

When? What? Where? I was whole heartedly defending Pnoy? Problem with you is that you have selected reading issue. Did you not hear me say how weak Aquino and the reason why I am giving shed light to some if his critic is that I am just avoiding more filipinos to rally behind another people's revolution that didn't really resulted to more jobs and lower poverty level? I do not have to buy any property there, I pretty much own some through the estate I am inheriting through my parents. That pays taxes to your government. And for you to criticize me aboutnot setting up manufacturing business there in your country. YOU YOURSELF HAVEN't start any business that would EMPLOY YOUR FELLOW FILIPINOs. MAS PAMBIHIRA KA! Andiyan ka na magiintay ka pa ng biyaya ng galing sa ibang bansa. Parehas na yan sa ibang filipino na nagiitany ng remittances galing sa ibang bansa. ATLEAST AKO, sumusuporta sa pagpapaaral ng mga orphan diyan para makatapos ng Colegio man lang, kaunting halaga buwan buwan, may isang kabataan na ngayon na nakatapos ng colegio dahil sa donasyon ko IKAW? MAY PINAARAL KA NA BA NA HINDI MO KAANO ANO?? SIno kaya ang makikinabang sa mga recipient ng donation namin? Pinoy na magiging professional at mag cocontribute sa economy ng PINAS. IKAW?? MAYROON KA BANG CONTRIBUTION O diyan ka lang magaling, mag intay ng maiipipintas sa mga nasa ibang bansa dahil nagseselos ka?

so you support Pnoy so that there won't be growth in people dissatisfied with his (to be honest) incompetent management of the Philippines and therefore continue feeding the survey companies with idiot Filipinos who continue to put faith in their messiah Pnoy????

Pnoy on the other hand continues to think he is the smartest and best president that ever took power since his survey results are higher than most??

Don't you think there is something wrong with the logic here? Does not seem to breed excellence in this kind of thinking

[Mr Grey]

I do not think this previous administration is no good, I am a filipino and is a resident in another country. I have allot of local friends here and they did invest in Manila especially Fort Bonifacio infact I also bought 1 condo in Manila and is planning on buying 1 more for my personally use this time. My local boss is a Christian and we do fellowships/sharing every 1st week of the month and during our fellowship in one of the previous occassion even my boss thinks manila is getting better. I do not think 2 years is enough to change the country that is very familiar with corruption give the previous administration a chance. I think this year would be better for all of us filipinos where ever part of the world we would be.

[Parchie]

Originally Posted by amigo32

Yes, you are always defending Pnoy
as if she/he is the messiah

So blunt of you, mi amigo! Hahahaha

BTW, my kids friends were in the house watching Tom and Jerry. I see a similarity of the guy with Jerry trying to escape Tom. Pa-tumbling tumbling, pasayaw-sayaw, atbp, pero alam natin kung saan ang punta. No matter how he juggles words, we see the slant. Besides, being disorganized, like beating around the bush, expect the discussions to go way beyond the moon even if you're discussing a simple topic!

[pau_p1]

Originally Posted by Mr Grey

I do not think this previous administration is no good, I am a filipino and is a resident in another country. I have allot of local friends here and they did invest in Manila especially Fort Bonifacio infact I also bought 1 condo in Manila and is planning on buying 1 more for my personally use this time. My local boss is a Christian and we do fellowships/sharing every 1st week of the month and during our fellowship in one of the previous occassion even my boss thinks manila is getting better. I do not think 2 years is enough to change the country that is very familiar with corruption give the previous administration a chance. I think this year would be better for all of us filipinos where ever part of the world we would be.

I think you're pointing to the current administration and not the previous administration right?.... anyways, I agree that 2 years is not enough to change our country where corruption is deep-rooted and pessimism is at a high.. we are still not united in thought and we love to bash and pull at each other... and we love to call for people power to change leaders..

i, myself did not vote for noy, but i'm keeping my hopes up that he can provide change in his term.. just very good news to see the possible credits upgrade and good economic outlook in the next years..

[expatdingdong]

Originally Posted by Mr Grey

I do not think this previous administration is no good, I am a filipino and is a resident in another country. I have allot of local friends here and they did invest in Manila especially Fort Bonifacio infact I also bought 1 condo in Manila and is planning on buying 1 more for my personally use this time. My local boss is a Christian and we do fellowships/sharing every 1st week of the month and during our fellowship in one of the previous occassion even my boss thinks manila is getting better. I do not think 2 years is enough to change the country that is very familiar with corruption give the previous administration a chance. I think this year would be better for all of us filipinos where ever part of the world we would be.

i think your experience and your friends are within the rich/elite sectors of the country... naturally you will not see the despair and trouble in the low sectors...Rich people will always be comfortable and think the philippines is ok.

The government is failing the poor classes. The poor class need immediate help now and we don't see Pnoy's government doing significant efforts to kill low level corruption in the local gov't, local agencies. Poor people who can't find jobs are hopeful of dramatic change from gov't which is not happening.

In my respectful opinion

[RonnieR]

Originally Posted by 3cr

Philippine economy rising
Business Mirror
Sunday, 15 January 2012 20:45
http://www.businessmirror.com.ph/hom...economy-rising

With banking giant Hongkong and Shanghai Bank (HSBC) announcing recently that the Philippines can be one of the world’s top economies by 2050, it is encouraging that this independent and credible financial organization sees the enormous potential our country has for economic growth, and that if this potential is nurtured, the outcomes will be concrete and tangible and will provide benefits for the nation and its people.

In the HSBC report, the Philippine economy is forecast to rise 27 places upward to 16th rank less than 40 years from now.

The Philippines was also marked as one of 26 “fast-growth” countries expected to register “an average expansion of more than 5 percent per year.”

Despite a “very low level of development,” the report says the Philippines is among those countries that has made “great progress in improving fundamentals. As they open themselves to the technology available elsewhere, they should enjoy many years of ‘copy-and-paste’ growth ahead.”

The Philippines was noted as being one of the “truly remarkable hot spots in Asia…. The star performer, however, is the Philippines, where the combination of strong fundamentals and powerful demographics gives rise to an average growth rate of 7 percent for the coming 40 years.”

Noted as contributing to the country’s progress are the “improvements in its economic infrastructure,” with the “fast-growing population…expected to increase the country’s labor force, which likewise benefits from the quantity and quality of education.”

HSBC projected the Philippines’s average gross domestic product growth at 8.4 percent from 2010 to 2020, 7.3 percent from 2020 to 2030, and 5.8 percent from 2040 to 2050.

The report stated further that China is expected to become the No.1 economy, followed by the United States, India, Japan and Germany in the top five, in that order. Many smaller economies will move up, such as Peru (to improve by 20 places), Egypt (+15), Nigeria (+9), Malaysia (+17) and the Ukraine (+19). Many European countries may decline, especially those in Northern Europe, because of a smaller work force and the rise of developing nations—Denmark (-29), Norway (-22), Sweden (-20), and Finland (-19).

Among the factors that contribute to long-term economic growth are demographics—the size of the working population—and the opportunities for each individual to be more productive.

In order to create a milieu conducive to promoting productivity, there must be the following significant factors: opportunities for education, democratic governments, and strong rule of law.

Factors that could derail progress are war, energy-consumption constraints, climate change, and barriers to population movement across borders.

The report comes with a caveat: “We openly admit that behind these projections we assume governments build on their recent progress and remain solely focused on increasing the living standards for their populations….Of course, this maybe an overly glossy way of viewing the world.”

The Philippines under President Aquino is already putting those measures for growth in place. Economic growth showed a strong uptick in 2011, when the Philippine Stock Exchange closed with a 4.1-percent gain. This made it Asia’s best-performing economy for the year.

In another report, to create a climate conducive to more growth, the Association of Southeast Asian Nations is working toward “a unified trading bloc with free-flow capital by 2015.” Electronic-trading links will be set up in Asian countries to “allow more investments and raise liquidity,” starting in 2012 in Malaysia, Thailand and Singapore, followed later by the Philippines.

In addition, the Aquino administration has taken larger steps toward fighting graft and corruption via the Good Governance and Anti-corruption Cluster (GGAC) Plan for 2012-2016, which was approved on January 3. It will simplify and integrate the government’s anti-graft and -corruption systems.

Necessary legislations and policies will be reviewed and strengthened, while digitization and innovations in government operations will be promoted, backed by an aggressive advocacy and communication campaign. Once these measures are in place, the government expects the business and economic environment to improve further.

President Aquino said as much in his toast at the vin d’honneur at Malacañang on January 13 (the ceremony is the Palace’s traditional New Year’s celebration for the diplomatic corps):

“We have already made great strides in our fight against corruption and poverty, as well as in our thrust to create a progressive economic climate guided by fair and honest practices. Local and foreign groups have acknowledged our triumphs by investing in our country, by lauding our efforts in open governance, and by supporting our programs.

“At the heart of our work for the next year lies a desire to secure for our people a better standard of life, and a brighter future. And all of you present here today are crucial to achieving that goal.

“This year, we will strengthen the programs that work for our countrymen, such as those in education, health, housing, and others like our Conditional Cash Transfer Program.

“We will not relent in our quest to hold accountable those who seek to perpetuate the culture of impunity in our country.

“We will continue to ensure the safety of our nation: by upgrading our defense capabilities, and by working to achieve peace, while pursuing lawless and criminal elements.

“We will continue to sustain the growth of our economy and create opportunities for employment.

“These are not without their challenges, but I am confident that so long as we stand together and remain consistent in our service to the public, our countrymen will be behind us every step of the way, as we work toward success.”


_____________________________



Rating Upgrade Within Q1 Possible
By CHINO S. LEYCO
Manila Bulletin
January 15, 2012
http://mb.com.ph/articles/348198/rat...in-q1-possible

MANILA, Philippines — The Aquino administration may likely get its investment grade rating within the first-three months of the year due to the country’s manageable debt to gross domestic product (GDP) ratio and lower than programmed budget deficit in 2011.

Metrobank Group’s First Metro Investment Corporation (FMIC) as the well as the University of Asia and the Pacific (UA&P) said in a report that a fiscal deficit of P180 billion or lower would bring the debt-to-GDP ratio to less than 50 percent, the first time in 30 years.

“This development could lead to a credit rating upgrade in first-quarter 2012,” the report stated.

Moody’s Investor Services upgraded the Philippines’ dollar denominated bonds from “Ba3” to “Ba2” in June last year. Fitch subsequently upgraded the country’s long-term foreign currency issuer rating to “BB+” from “BB”, bringing its foreign debt just one notch below investment grade.

And most recently, Standard and Poor (S&P) upgraded its Philippine outlook from “stable” to “positive.”

Data from the Department of Finance showed that from January to September last year, the country's debt-to-GDP ratio, one of the main indicators being looked at by credit rating agencies, fell to 51.09 percent from last year’s 52.4 percent due to “debt measures” the government undertook.

With a much lower debt-to-GDP ratio, it means that the country’s economy is growing faster than its debt and the government’s budget deficit is also contained.

The finance department has set a 55.5 percent debt-to-GDP goal last year after the ratio fell to 55.4 percent in 2010, which was lower than the 57 percent target.

Meanwhile, the Department of Budget and Management (DBM) said that the budget deficit in 2011 may be sharply narrower against target despite higher spending in the final months of the year.

The government's budget shortfall may have reached P140 billion to P170 billion in 2011. That is around 47 percent to 57 percent of the P300 billion fiscal shortfall ceiling last year.

The government had vowed to accelerate spending of P72 billion on fast-moving projects in the final three months of 2011 to support the economy which had lost significant momentum due to slow public spending and sluggish exports.

Data from the DBM showed 96 percent, or P69.3 billion of the government's P72-billion spending plan had been released to agencies and state-owned and -controlled corporations as of end December 2011.

The government posted a budget deficit of P22 billion in November, bringing the 11-month shortfall to P96.3 billion, or just 32 percent of the full-year target.

The Aquino administration wants to bring down the deficit to 2.6 percent this year and to 2 percent by 2013, keeping it at that level until 2016 when President Benigno Aquino's term ends.

Originally Posted by FlashCollider

Rating Upgrade Within Q1 Possible



World's Biggest Printers Investing Over P20B, To Generate 6,000 Jobs

The "Investment Grade" would bring more good news to the country. The investors would see that a real positive change is happening in the Philippines.

On HSBC's forecast, well, it's a prediction.

I see it as a confirmation that this country has the potentials to be great since we have the natural resources and an educated population.

[icarusrising]

A sentiment that's also echoed at least by this expert from Citibank...

Heavy inflow of foreign investments seen
Citi exec sees more cross-border M&As
By: Doris C. Dumlao
Philippine Daily Inquirer
2:59 am | Monday, January 16th, 2012


Shoppers crowd a night market at a mall in Manila in this 2010 file photo. Prospective investors are looking at the country’s resilient consumer market, which continues to be supported by overseas remittances and business process outsourcing revenues, says investment banking expert Kristine Baden of Citibank Philippines. AFP PHOTO/TED ALJIBE

The Philippines is expected to see a heavier influx of foreign direct investments this year as its robust consumer market offers a fertile ground for cross-border merger and acquisition (M&A) deals, an investment banking expert from Citibank said.

Kristine Braden, head of Citibank Philippines’ global banking unit, said many offshore investors were increasingly interested in plowing funds into the domestic economy, particularly in the financial and consumer sectors. Such investments could be executed this 2012 on top of portfolio investments likely flowing to a good pipeline of bond and equity offerings by local corporations, she added.

At the same time, Braden said a number of cash-awash Philippine corporations were on the prowl for offshore investment opportunities. She said they were looking for overseas acquisitions complementary to existing businesses, citing power generation companies wanting to gain a foothold in coal mining.

“We’re starting to notice an increased interest in cross-border M&As and I’m happy given that FDI in 2011 was actually relatively low compared to 2010,” Braden said in an interview with the Inquirer last week.

In the consumer sector, for instance, Braden said that at least once a week, a new investor would touch base to scout for domestic opportunities. She said these prospective investors would like to ride on the country’s resilient consumer market, which continued to be supported by overseas remittances and business process outsourcing revenues.

“If you’re looking at growing population, continued strength of consumers as a driver of the economy, there aren’t that many countries where you can find those dynamics today,” Braden said, adding that such strong underlying fundamentals plus abundant liquidity were very attractive for investors. “So we expect to attract several inflow consumer transactions in 2012,” she said.

Like the case of Malaysian banking giant CIMB in talks to buy into Bank of Commerce, Braden said regional banks could find opportunities in investing in medium-sized banks.

Other sectors like infrastructure, tourism and mining were also becoming interesting, she said. In the local power sector, she said there could be some minor M&A deals involving the entry of strategic minority partners to fund a new round of capital expansion or undertake something related to off-take requirements.

On the bond market, Braden said some new deals might come through in the second quarter and toward the end of the year following the Philippines’ successful return to the offshore bond market and again doing the region’s curtain-raiser.

“The interest rates offshore are just compelling at the moment. For the ROP [Republic of the Philippines] to raise 25-year money at 5 percent (a year), this creates a great benchmark for other issuers,” Braden said. “The thing is, at the end of last year, US dollar rates spiked so it became less attractive to raise debt offshore but now with the interest rate so low, I think people may go back and reconsider doing dollar bonds.”

She said the government’s recent return to the US dollar bond market after focusing on peso-denominated global bonds in the past was still a good fit to the sovereign’s liability management strategy. “They will always need to maintain a relationship with foreign investors and they did it with such a low rate for such a long term. It was a blowout success,” she said.

Citi was among the arrangers of the Philippines’ recent $1.5-billion global bond issue.

With the Philippine stock market outperforming all its peers in the region and remaining buoyant this year, Braden said equities would remain interesting this year. With the requirement of the Philippine Stock Exchange for listed companies to maintain a minimum of 10-percent public float, she said this would spur some follow-on offering.

“But I think that beyond that, with the domestic exchange doing relatively well and again the Philippines being one of the better-performing economies, it will pique the interest of investors and issuers to go the market,” Braden said.

“The key is to define from what part of the world the investments are coming from and I suspect that a lot of the interest will still be anchored off Asian liquidity. US investors are interested in the Philippines as well,” she said.

Finally, Braden said she expected hybrid instruments like convertible bonds (CB), debt paper that the holder can convert into common stocks or cash of equal value, with the presence of two factors that traditionally fuel interest in these instruments—volatility in equity markets and low interest rates.

She noted that the Philippine market has not seen any CB issuance lately and instead favored preferred shares.

more here

[RonnieR]

Originally Posted by icarusrising

A sentiment that's also echoed at least by this expert from Citibank...

Yes, indeed.

We haven't seen this kind of development in energy sector. More investors are participating, pouring their funds in the country. They did their homework prior to their major decisions and it all boils down to one thing: potentials for growth are here....

Exploration firms to drill 10-12 wells in 2012
Gov’t sees banner year for upstream oil industry
By: Amy R. Remo
Philippine Daily Inquirer
2:54 am | Monday, January 16th, 2012

The Department of Energy expects a banner year for the upstream oil industry as the existing petroleum service contract holders have committed to drill a record 10 to 12 oil and gas exploration wells for 2012 alone, according to Energy Undersecretary Jose M. Layug Jr.

On top of the 12 wells to be drilled, the DoE is also expecting three more workover wells this year.

http://business.inquirer.net/39891/e...-wells-in-2012

[pau_p1]

wow.. this is good news.. I hope one day the Philippines can become an exporter of gas reserves... this will definitely help fund our coffers...

[dancethingy]

Where is the infrastructure they said they were going to start on this january?? WHERE ARE THE INFRASTRUCTURES? By the way, there are a lot PREDICTIONS going on here.