The Philippine Economy

[Nabartek]

Originally Posted by 3cr

Yup we can't and shouldn't hinge our economic future totally on China's hands. We can not and should not be too reliant on them economically speaking to avoid the worse case scenario people are talking about and this is why it is really important that we diversify our trade partners para maski bagsak man ang ilan sa kanila OK pa din tayo kahit papaano. Like the old saying goes, don't put all your eggs in one basket. The same holds true here.

Aside from that, if we diversity, it will only be a pinch should China have an embargo on us. Iilang country din ang kakampi nyan.

[3cr]

Buffett: Europe need to fix problem while United States expected to avoid recession
Stock Market Today
June 06, 2012
http://www.stockmarkettoday.cc/buffe...recession.html

Buffett (Warren Buffett), delivered a speech on an event on Wednesday pointed out that the operation of the euro area can not continue in its current form, but he is more confident of the economic outlook for the U.S..

Buffett said that if there is no common fiscal policy and culture, can not share a common currency in Europe. He also called for European leaders to solve some of the shortcomings in the European Monetary Union.

However, his views on the U.S. economy is slightly optimistic. Buffett believes that the U.S. economy going into recession in the short term is highly unlikely.

He believes that the U.S. economy not in recession, the development of the European state of affairs seriously spread to the United States.

Buffett also called on the U.S. bipartisan policy in favor of compromise, the whirring of the Democratic Party to the expenditure side, the Republican Party to make concessions in tax increases.

[3cr]

Shell Plans $1.6 Billion Philippines LNG Investment - UK Government
Fox News
June 07, 2012
http://www.foxbusiness.com/news/2012...uk-government/

U.K. oil major Royal Dutch Shell PLC (RDSA) has confirmed plans to invest $1.6 billion for the development of a liquefied natural gas import and regassification terminal in the Philippines, the U.K. Foreign Office Said Thursday in a statement.

Also, Unilever NV (UN) announced it will increase its investment and expand manufacturing facilities in the Philippines.

The statements came as the Filipino president, Benigno Aquino, visited the U.K. this week en route to the U.S.

[3cr]

India could be first BRIC to lose investment grade - S&P
Interaksyon
http://www.interaksyon.com/article/3...ent-grade---sp

MUMBAI - Standard & Poor's said on Monday that India could become the first of the so-called BRIC economies to lose its investment-grade status, sending the rupee and stocks lower, less than two months after cutting its rating outlook for the country.

"Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India could lose its investment-grade rating," the ratings agency said in a statement issued Monday on a report dated June 8.

India's sovereign rating is BBB-, the lowest investment grade rating, and in April S&P lowered its outlook on the rating for Asia's third-largest economy to negative from stable.

S&P said the new report gave further detail as to why India's investment-grade rating could be at risk.

Indian stocks .BSESN cut gains after the S&P statement, while the rupee skidded to 55.55 to the dollar from 55.45 earlier after the S&P statement. The benchmark 10-year bond yield showed a more muted reaction, trading down 1 basis point at 8.34 percent from its previous close.

"While INR and bonds moved on this S&P headline, it may not have been warranted. While the report is new, the content in itself is probably not," said Kumar Rachapudi, fixed income strategist at Barclays Capital in Singapore.

"The discussion in this report has largely been covered in their previous report when S&P revised outlook in April."

The two analysts who wrote the report could not immediately be reached for comment.

India recently posted March quarter GDP growth of 5.3 percent, its weakest in nine years and far below expectations.

"Failure to advance with more liberalization might reduce India's long-term growth potential and thus hurt its sovereign rating," the report said.

The so-called BRIC economies consist of Brazil, Russia, India and China.

India has the lowest rating from S&P of all the BRIC countries, and is the only one with a negative outlook from the rating agency, it said in the report.

[wolfram74]

although somewhat late, people are coming to their senses

'Oust Pnoy movement' launched
The Philippine Star
June 11, 2012

MANILA, Philippines - A Church official on Monday said he is unsurprised that a group has been formed to call for the resignation of President Benigno Aquino III.

Lingayen-Dagupan Archbishop Emeritus Oscar Cruz said several groups felt that Aquino was undeserving of the presidency and that he got the position only because he was the son of democry icons former President Corazon Aquino and slain senator Benigno Aquino Jr.

"Expected ko na iyang pagkakaroon ng mga Oust PNoy movement. Noon pa man ay marami na talaga ang tutol kay PNoy. Sabi nga e nadala lang daw ni PNoy ang kasikatan ng kanyang mga magulang. Noong namatay si Dating Pangulong Cory Aquino, maraming tao ang naki-simpatya e ura-uradang pinatakbo siya bilang pangulo at kaagad na nag-give way si senador (Mar)Roxas,"Cruz told Church-run Radyo Veritas.

Cruz said when the President was still a congressman and then senator, Aquino had done nothing substantial or vital to improve the lives of Filipinos.

The Oust PNoy Movement is merely an indication the dismay and disappointment of the people. "Maaaring ito ay simula, ewan ko kung saan pupunta pero ito ay isang indikasyon na hindi natutuwa ang mga tao," he added.

(snipped)

[3cr]

PDOT, CEB push for more Korea tourist arrivals with YEOSU Expo
http://www.noodls.com/viewNoodl/1470...-with-yeosu-ex

The Philippines' largest national flag carrier, Cebu Pacific (PSE:CEB) partners with the Philippine Department of Tourism (PDOT) in the ongoing Yeosu Expo 2012 in Yeosu, South Korea, which runs until August 12, 2012.

An airline partner of the Philippine Pavillion, CEB shows its full support to tourism efforts by providing tickets, tour package rates and exposure to expo organizers, talents and travel agents throughout the three-month expo duration. It operates thrice daily flights from the Philippines to Seoul (Incheon) and eight weekly flights to Busan.

"As our top source of visitor traffic, the Korean market is of utmost importance to the Philippines' hospitality industry. Koreans accounted for nearly a quarter of the archipelago's tourism arrivals last year and they have been our number one market since 2006," said Department of Tourism Secretary Mon Jimenez.

PDOT reports indicate that 925,000 Koreans visited the Philippines in 2011, a 25% increase from the previous year. Meanwhile, CEB flew more than 380,000 passengers to and from South Korea, a 51% passenger increase compared to 2011.

"The Yeosu Expo has a marine sustainability theme, which is perfect for the Philippine islands' inherent wealth in coastal and marine treasures. We are investing in a principal site in the Pacific Ocean Zone to best capture over 80,000 average daily expo visitors," added Jimenez.

PDOT's Yeosu Expo participation is just one initiative to reach 2 million Korean arrivals by 2016. CEB seat sales as low as 50% off, lowest year round air fares as low as KRW99,000 (PHP3,999), and creative tour packages, also play a part in stimulating travel to the country.

"Despite their relative affluence, Koreans appreciate value-for-money fares in their purchase of air tickets. Similarly, the proliferation of Korean operators and establishments is bringing down rates that appeal to even more travelers," Jimenez said.

CEB, for its part, highlights various Philippine destinations to Yeosu Expo visitors, such as Busuanga (Coron), Cebu, Boracay, Bohol, San Jose (Apo Reef), Dumaguete (Apo Island), and Puerto Princesa (Tubbataha Reef).

"The Cebu Pacific team is excited to work closely with PDOT and other government agencies in promoting the Philippines' world-class dive sites and island destinations. It will also continue to offer the lowest fares from South Korea direct to Manila and Cebu so more Koreans can visit and explore the country," said CEB VP for Marketing and Distribution Candice Iyog.

The Philippine exhibits will carry the theme "Islands of Diversity, Seas of Connectivity" to entice tropical holiday seekers, honeymooners and other special interest groups such as divers and beach enthusiasts, which make up a majority of Korean tourists. More expo information can be found at www.7107.co.kr/philexpo2012/default.aspx.

CEB currently operates 10 Airbus A319, 20 Airbus A320 and 8 ATR-72 500 aircraft. Its fleet of 38 aircraft - with an average age of 3.6 years - is the largest aircraft fleet in the Philippines. Between 2012 and 2021, Cebu Pacific will take delivery of 22 more Airbus A320 and 30 Airbus A321neo aircraft orders. It is slated to begin long-haul services in the 3rd quarter of 2013.

In its 16th year of operations, CEB had flown over 60 million passengers. It provides access to the most extensive network in the Philppines, with 32 domestic and 19 international destinations. The airline also remains a pioneer in the Philippine aviation industry by being the first to offer web check-in, self check-in, e-ticketing and Lite Fares.

Originally Posted by chillendawg

Yeosu Expo to yield 2-M Korean tourists for PHL
June 11, 2012 5:34pm

The Department of Tourism is eyeing 2 million Korean arrivals by 2016 as a result of its participation in the ongoing Yeosu Expo 2012 in South Korea which runs until Aug. 12.

In joining Yeosu Expo, the DOT has partnered with flag carrier Cebu Pacific. The airline will provide expo organizers, talents and travel agents with tickets, tour package rates and exposure during the three-month expo.

Tourism Secretary Ramon Jimenez said as the country's top source of visitor traffic, the Korean market is of utmost importance to the Philippine hospitality industry.

“Koreans accounted for nearly a quarter of the archipelago's tourism arrivals last year and they have been our number one market since 2006,” Jimenez said.

Tourism data showed that 925,000 Koreans visited the Philippines in 2011, up 25 percent from a year earlier. Meanwhile, CEB flew more than 380,000 passengers to and from South Korea, a 51-percent increase compared to 2010.

Jimenez said the Yeosu Expo has a marine sustainability theme, which is perfect for the Philippine islands’ inherent wealth in coastal and marine treasures.

"We are investing in a principal site in the Pacific Ocean Zone to best capture over 80,000 average daily expo visitors,” Jimenez said.

“Despite their relative affluence, Koreans appreciate value-for-money fares in their purchase of air tickets. Similarly, the proliferation of Korean operators and establishments is bringing down rates that appeal to even more travelers,” Jimenez said.

CEB, for its part, highlights various Philippine destinations to the expo visitors, such as Busuanga (Coron), Cebu, Boracay, Bohol, San Jose (Apo Reef), Dumaguete (Apo Island), and Puerto Princesa (Tubbataha Reef).

Candice Iyog, Cebu Pacific vice president for marketing and distribution, said CEB is excited to work closely with DOT and other government agencies in promoting the country's top tourist spots.

She said CEB would also continue to offer the lowest fares from South Korea direct to Manila and Cebu so more Koreans can visit and explore the country.

CEB operates thrice-daily flights from the Philippines to Seoul (Incheon) and eight weekly flights to Busan. Seat sales as low as 50-percent off, with lowest year-round air fares as low as 99,000 Korean won (P3,999).

The Philippine exhibit carries the theme “Islands of Diversity, Seas of Connectivity” to entice tropical holiday seekers, honeymooners and other special interest groups such as divers and beach enthusiasts, which make up a majority of Korean tourists. —VS, GMA News

[icarusrising]

Originally Posted by wolfram74

although somewhat late, people are coming to their senses

'Oust Pnoy movement' launched
The Philippine Star
June 11, 2012

Was this because survey says Pnoy's satisfaction rating is at its lowest ever at 63%? I'm not thrilled at Pnoy's performance but a drastic turnover through the likes of people power would be a bigger setback for the Philippines (although I highly doubt it would succeed). If some sectors feel they have made the wrong choice, they should express it in the next elections. In the meantime, it helps to call the government's attention where it had been remiss.

Originally Posted by Nabartek

Aside from that, if we diversity, it will only be a pinch should China have an embargo on us. Iilang country din ang kakampi nyan.

Dealing with China's really a double-edged sword.

Peso back to 42-to-dollar level over strong Chinese exports, Spanish bailout
By: Michelle V. Remo
Philippine Daily Inquirer
7:01 pm | Monday, June 11th, 2012
AFP PHOTO/ROMEO GACAD

MANILA, Philippines — The peso strengthened back to the 42-to-a-dollar territory on Monday as investors reacted positively on news that Chinese exports grew sharply in May and on reports that the troubled Spanish banking sector might get a bailout.

The local currency closed at 42.92 against the US dollar on the first trading day of the week, up by 35 centavos from Friday’s finish of 43.27:$1.
Prior to Monday’s close, the peso had been hovering in the 43-to-a-dollar level for three weeks.

Intraday high hit 42.90:$1, while intraday low settled at 43.12:$1. Volume of trade amounted to $976.7 million from $967.05 million previously.

The appreciation of the peso, which came with the rise of other emerging Asian currencies, was partly attributed to reports that China posted a 15.3-percent growth in export revenues in May. The report spurred hopes that global demand might be inching up, a development favorable even for other exporting countries like the Philippines.

The rise of the peso and other Asian currencies also came following reports that Spain asked for 100-billion-euro bailout from the European Union to help rescue its banking system from potential failure.

Traders said the move of Spain indicated the country’s desire to avoid the worsening of its banking crisis, which could spill over to other parts of the region and of the globe if left unresolved. Hopes are high that the bailout request will be granted amid common intention among European leaders to squarely address the debt woes of the entire region, whose other members are also suffering from their own problems.

The positive reports increased appetite for emerging market securities, such as peso-denominated equities.
Meantime, the Bangko Sentral ng Pilipinas said that the appreciation of the peso was also due to favorable macroeconomic developments in the Philippines.

“Looks like the market has digested recent financial market developments and realized that Philippine macroeconomic fundamentals remain strong and sound,” BSP Deputy Governor Diwa Guinigundo told reporters.
In mentioning the fundamentals, Guinigundo was referring to growing profitability and resources of the Philippine banking sector, the benign inflation in the country, and the country’s 6.4-percent growth in its gross domestic product in the first quarter, among others.

“We expect this [appetite for peso-denominated instruments] to continue unless the events in the Euro zone and the United States turn for the worse and de-leveraging forces the money out of the emerging markets anew,” Guinigundo said.

[Askal82]

Originally Posted by wolfram74

although somewhat late, people are coming to their senses

'Oust Pnoy movement' launched
The Philippine Star
June 11, 2012

MANILA, Philippines - A Church official on Monday said he is unsurprised that a group has been formed to call for the resignation of President Benigno Aquino III.

Lingayen-Dagupan Archbishop Emeritus Oscar Cruz said several groups felt that Aquino was undeserving of the presidency and that he got the position only because he was the son of democry icons former President Corazon Aquino and slain senator Benigno Aquino Jr.

"Expected ko na iyang pagkakaroon ng mga Oust PNoy movement. Noon pa man ay marami na talaga ang tutol kay PNoy. Sabi nga e nadala lang daw ni PNoy ang kasikatan ng kanyang mga magulang. Noong namatay si Dating Pangulong Cory Aquino, maraming tao ang naki-simpatya e ura-uradang pinatakbo siya bilang pangulo at kaagad na nag-give way si senador (Mar)Roxas,"Cruz told Church-run Radyo Veritas.

Cruz said when the President was still a congressman and then senator, Aquino had done nothing substantial or vital to improve the lives of Filipinos.

The Oust PNoy Movement is merely an indication the dismay and disappointment of the people. "Maaaring ito ay simula, ewan ko kung saan pupunta pero ito ay isang indikasyon na hindi natutuwa ang mga tao," he added.

(snipped)

Sorry to rain on your parade. It ain't gonna happen. Please try again.

[hiiamdib]

RELAX EVERYONE. It's our nations birthday.

[icarusrising]

Time for PH to shine, says Citi
Economy resilient despite slow growth in Europe, US
By: Doris C. Dumlao
Philippine Daily Inquirer
1:00 am | Monday, June 11th, 2012

The Philippines has come of age as a vibrant marketplace for capital-raising as well as merger and acquisition (M&A) deals, even as global investment appetite has been tempered by the eurozone crisis, a top regional official of Citigroup said.

Hong Kong-based Farhan Faruqui, head of global banking for Asia-Pacific at Citi, said in a recent interview with the Inquirer that cross-border M&A deals as an indicator of investment had significantly dropped globally because of the lingering uncertainties in Europe and the United States.

“But if you look at intra-Asia—Asian companies investing in the region—that’s a record high within Asia. It’s resilient. We’ve had a record year so far. So a lot of that (cautiousness by the West) is being replaced by Asian interest,” Faruqui said.

Asia’s share of global M&A doubled from 10 percent to 20 percent in the last five years, Faruqui noted.

Exciting time

He said that it is an “exciting time” for the Philippines, in particular, noting that the level of activity from capital raising and M&A was holding up well.

“When I travel across the region, the Philippines is increasingly on the agenda. We are seeing strong interest from our clients looking to find an appropriate entry point into the country. There are so many areas of activity where clients can enter—whether it is through investment in local firms or partnerships. We see clients looking at setting up a new business or to buy something,” Faruqui said.

“The Philippines has certainly attracted a lot of attention among international corporates. A lot of people are recognizing that if you’re in the region looking for business, this is the place to be,” he said.

Citi, which is celebrating its 200th year this year, is the leading M&A advisor in Asia-Pacific based on year-to-date volume of deals announced. It ranks second in terms of equity deals arranged and third-largest in debt underwriting.

Given global trends toward urbanization, the bank aims to serve current and emerging urban centers and is focused on supporting the world’s top 150 cities.

“Obviously, the fact that many parts of the world are slowing down helps in the sense that it singles out the Philippines as a very resilient economy. There are a lot of reasons to come here,” Faruqui said.
The banker noted the big opportunities in Philippine infrastructure and real estate.

Once the mining framework in the country becomes clearer, he said this could be another magnet for investments.

Infrastructure

“The way I define infrastructure is really progress. It’s not just a new road or power plant. It is also the perception of foreign investors to taxation, courts and rule of law and there has been progress across all these areas,” he said.

Faruqui also sees the Philippine business process outsourcing industry moving to the higher value-added knowledge process outsourcing on the back of strong education and language skills.

“Despite some political controversies and other challenges, broadly the mood is very upbeat. It’s basically the time for the Philippines to shine,” Faruqui said.

The power sector is also expected to attract a lot of new investments from both foreign and local players, whether to install new capacity or expand existing ones, said Usman Ahmed, Citigroup corporate and investment banking head for the Philippines.

While a lot of the optimism had been driven by the economic policies of the Aquino administration, particularly on fiscal management, Faruqui said credit should also go to the local private sector for prudent management of businesses.

And even if the financial system is awash in liquidity, the local private sector is seen very conscious about sticking to core strategies when expanding.

Remittances

Domestic consumption is likewise seen being buoyed by remittances, which have likewise held up despite the economic uncertainties in developed markets.

“Remittances haven’t dropped and all signs point to foreign direct investments increasing this year,” Faruqui said.

But heightened interest among foreign investors will not necessarily push local players to the sidelines.

“I think everybody is cautious in paying the right value. We don’t necessarily see a situation of price war in buying these assets,” Ahmed said.
Ahmed added that for foreign companies, “they have seen that the local capital market has been quite resilient, so they are able to access funding domestically at very competitive rates.”

Asked whether he thought Philippine assets were still reasonably priced, Faruqui said: “Relative to many other economies, I don’t think there’s an asset price bubble here. Obviously things to watch are unemployment, consumption levels, inflation—all areas which the government is watching every day,” he said.

[3cr]

Here we go again. Where is the separation between Church and State? Nakialam nanaman ang mga pare with their antiquated beliefs. RH Bill is a good initiative especially with the rising population and cases of HIV on the rise. Actually the Church that's not doing their jobs properly or we won't even be having this problem in the first place. Teach your flock to follow God's wishes and follow them well. Kung hindi nila kayo sinusunod, kayong mga pare ang may pagkukulang at hindi gobyerno. Tsk tsk tsk...

Bishop Cruz warns: RH bill passage may trigger P-Noy oust move
Philippine Star
http://www.philstar.com/nation/artic...ticleid=688048

MANILA, Philippines - The passage of the controversial Reproductive Health bill in Congress could spark moves to oust President Benigno Aquino III, a Church official warned today.

Lingayen-Dagupan Archbishop Emeritus Oscar Cruz claimed that at least three groups would move against the present administration if the RH bill would be passed into law.

"Tatlo iyong grupo na yan...'Bagama’t iba-iba ang kanilang hangarin. Iba iba ang kanilang plano pero iisa ang nagdudugtong sa kanila. Ayaw nila sa pamahalaang ito," Cruz said in an interview with Church-run Radyo Veritas.

The groups, according to Cruz, said one of the issues that they will use against the President Aquino is the passage of the contraceptive measure.

"This is not only the issue against him, this is just one of those... So, this is just one of those reasons that disappoint and frustrate people," the prelate said, noting these groups are only waiting for the opportune time to make their move.

President Aquino and Catholic Church officials have been in loggerheads over the issue of the RH bill, with the Chief Executive in full support of its passage.

For his part, Lipa Archbishop Ramon Arguelles said he does not think much of President Aquino for supporting the RH bill, adding he would not even listen to the State of the Nation Address on July by the Chief Executive.

"Hindi ako nakikinig dun. I'm not supporting him. Naniniwala akong hero ang kaniyang magulang pero siya hindi. I don’t expect much from him," Arguelles said.

President Aquino is the son of democracy icons for Senator Benigno Aquino Jr. and former President Corazon Aquino, whose presidency was fully supported by the Catholic church.

[Askal82]

Instead of the President popularity survey, it would be a better idea to do a survey on who is in favor of the RH bill or not?

Let's see how the church would react if many people are in favor of it.

[icarusrising]

OFWs did it again
By: Dr. Bernardo M. Villegas
INQUIRER.net
2:37 am | Friday, June 8th, 2012

Once again, the unsung OFWs contributed some $23 billion in foreign exchange remittances to the Philippine economy in 2011, boosting our international reserves, filling our banks with savings, stimulating the housing market, investing in human capital through the education of their children and contributing significantly to a consumption-led growth as investments grew very slowly in the public sector. We cannot thank them enough for the sacrifices they are making for their respective families and for the entire nation.

Throughout the whole of 2011, workshops on the costs and benefits, threats and opportunities pertinent to OFWs were held at the Center for Research and Communication. Those who participated were OFWs themselves, academics, labor officials, entrepreneurs, and NGO and labor union leaders. Some of the conclusions reached were as follows:

Despite continuing financial and political turmoil and high rates of unemployment in the host countries of OFWs, remittances will continue to rise because Filipino workers are usually a cut above the majority of overseas workers coming from other countries. OFWs are generally better educated, English-speaking, capable of giving tender and loving care in personal services, multi-talented, and with better personal hygiene. The acid test was in 2009, the worst period of the Great Recession. OFW remittances still grew at 6 percent. I forecast that the same thing will happen in 2012, a very difficult year for the global economy. OFW remittances will continue to grow by at least 5 percent.

Those who are able to get jobs abroad do not come from the poorest of the poor, who are unable to come out with the steep financing costs required by recruiters. Most of the OFWs come from the middle-income households that earn an equivalent of $2 to $10 per capita per day, using the ADB classification of middle-income families. The great majority of them seek employment abroad not because they are suffering from dehumanizing poverty in the Philippines but because they perceive significant wage and income differentials between what they can earn here and what they will receive if they work abroad. Since these wage differentials will continue to be wide for the indefinite future, even if the Philippines is able to significantly reduce poverty incidence over the next decade or so, there will always be millions of
Filipinos seeking employment abroad, thanks to our growing population and the demographic winter that is being experienced by most of the host countries. For example, there will always be hundreds of thousands of Filipino seafarers working for international shipping lines. Even if household service workers dwindle, they will be replaced by more knowledge-intensive professionals. What would decline, however, will be the percentage to GDP of OFW remittances. As our economy grows at 7 to 10 percent in the coming years, OFW remittances will drop from the high of 10 to 12 percent of GDP to 5 percent or less.

Every effort must be exerted by the government, the business sector and NGOs to help OFWs and their families make better use of their savings, which are the sources of the high liquidity being enjoyed by our banks. In the last 10 years, savings of OFWs have accounted for the rise of our savings rate from the low of 19 to 20 percent of GDP in the last century to over 30 percent today. Contrary to a widespread opinion that the families of OFWs fritter away what they receive in frivolous consumption, a great portion of remittances are spent on human capital (education) and housing (which is a form of investment). But much more can be done to help the OFWs and their families to invest in small and medium-scale businesses so they can join the entrepreneurial class that is the foundation of every progressive economy. This should be a primary concern of the Department of Trade and Industry, the Development Bank of the Philippines and private development banks.
Not everything is a bed of roses for the OFWs. They face obvious risks to life and limb in the troubled countries of the Middle East and Africa where they work. Efforts of the government, especially through the office of Vice President Jejomar Binay and Foreign Affairs Secretary Alberto del Rosario, to give them hands on assistance in these tight situations must be lauded. A recent case that is especially commendable is the way Secretary Del Rosario traveled personally to Syria to make sure the OFWs there were safe. Besides these political risks, there are the social and economic costs that have to be considered. One of the most eloquent in identifying the challenges faced by the OFWs and the country because of its overreliance on them is Loreto B. Soriano, who presented a paper in the CRC workshops entitled “Overseas Migration, Remittances—A Reality Check.” Mr. Soriano worked as an OFW himself in the Middle East in the last century and is now managing a manpower recruitment company for OFWs. He has mastered the tools of economic analysis by self-study and has profound insights on this very important economic sector. Let me quote some passages from his paper: “Remittances have saved the Philippines from economic and social disasters but not from bad development outcomes. Remittance flows have allowed doubtful policy decisions to prevail and culminate in a neo-liberal economic order that has led to jobless growth, the decimation of domestic agriculture and manufacturing and an import-centric, consumer-driven economy…It has been argued that overseas migration has little economic cost to the Philippines for it has expanded in periods of high unemployment. Poverty alleviation has been one of the main reasons advanced by successive administrations in justifying the export of its citizens. And yet, poverty reduction via migration promotion has had indiscernible gains in most provinces…Socially, there is a detrimental effect on the family, especially for young children and teenagers, when one or both parents are working overseas. The emotional and behavioral downsides cannot be underestimated, [as] they affect both parties so distant from one another. Social costs eventually develop into economic costs.”

The very valid points of Mr. Soriano should motivate our policy makers to avoid any complacency that may result from the bonanza of OFW remittances. They should address the root causes of poverty, which start with the utter neglect in the past of countryside and agricultural development. There should be many initiatives from all sectors concerned to minimize the social costs of families being separated, especially of male teenagers growing up without their fathers, and of marriage breakups. In this regard I would encourage more Catholic dioceses to emulate what the Imus diocese did under the leadership of now Archbishop of Manila Luis Antonio Tagle of sending Filipino priests to take care of OFWs in different cities abroad. Doctrinal and spiritual guidance of these OFWs by Filipino priests can go a long way in helping them avoid being swallowed up by the materialistic culture that prevails in many of their host cities. I have seen with my own eyes how OFWs in the City of Barcelona appreciated the pastoral care given to them by priests from the diocese of Cavite.

[Nabartek]

If ever na magnationalize ng jobs ang mga ME, tepok tayo.... esp that there are no readily available jobs at home

[wheel of steel]

Originally Posted by KnightOfTheFlag

Like I said...the storm may be here already...and we are still sipping our wine from the growth of the previous quarter..


Foreign direct investments drop 91% in March




http://www.interaksyon.com/article/3...op-91-in-march

This is what happens if the Pledge FDI did not materialized... or if the FDI is to be spent for a long time.....

[3cr]

Net FDI up 74% in 1st quarter despite March decline
Business World
http://www.bworldonline.com/content....cline&id=53289

NET FOREIGN DIRECT investment (FDI) flows surged by an annual 74% in the first quarter despite plunging in March, a result the central bank called an indication of continued interest in the country.

Net FDI inflows amounted to $850 million in the first three months of the year, up from $493 million in the same period a year ago, preliminary data released yesterday showed.

"The appreciable growth of FDI reflected positive investor sentiment owing to the country’s favorable macroeconomic fundamentals despite concerns over the deepening sovereign debt crisis in some parts of the euro zone area," the Bangko Sentral ng Pilipinas said in a statement.

Net inflows for March, however, were a paltry $14 million, down 91% from the $158 million recorded a year earlier.

For the three-month period, equity capital or investments made by foreign firms to local companies registered a net inflow of $931 million, more than sixfold or 517% above the $151 million last year.

"A large chunk of the inflows for the first three months of 2012 was accounted for by the acquisition of shares by a foreign firm in a local beverage manufacturing company," the central bank said without identifying the firm.

The funds came mainly from the United States, Australia, Netherlands, Singapore and Japan and were directed into the following sectors: manufacturing, real estate, wholesale and retail trade, and financial and insurance services.

Reinvested earnings, meanwhile, decreased to $30 million, down 67% from $91 million, while other capital or inter-company loans registered a net outflow of $111 million during the quarter from a net inflow of $251 million last year.

For March alone, equity capital declined by 22% to $85 million from $109 million, while reinvested earnings plunged 78% to $9 million from $41 million. Other capital recorded a net outflow of $80 million from a net inflow of $8 million.

FDI registered net inflows of $1.262 billion last year, 3% down from the $1.298 billion recorded in 2010.

[wheel of steel]

Originally Posted by wolfram74

more trouble ahead for the global economy...


HUSSMAN: The Recession Is Here Right Now
BusinessInsider
June 11, 2012

In his latest note, John Hussman is bearish, and says the recession here.

Well I just watched CNN about Obamas issue of lying on the status of the Economy state of US...

[3cr]

New North Harbor terminal to open in January
Malaya
http://www.malaya.com.ph/index.php/b...pen-in-january

Manila North Harbour Port Inc. (MNHPI) yesterday broke ground for the 11,600-square-meter Harbor Terminal Complex that the port operator will build on a lot between Pier 4 and Pier 6.

Richard Barclay, MNHPI chief executive officer, said the project will cost some P200 million and be completed in January next year.

“The passenger terminal will be completed in January 2013,” Barclay said.

Yesterday’s groundbreaking ceremony was led by Nicasio A. Conti, officer-in-charge and deputy administrator of the Maritime Industry Authority; Barclay; Juan Sta. Ana, general manager of the Philippine Port Authority, and Edwin Jeremillo, chief operating officer-administration of Harbour Centre Port Terminal Inc.

It was also attended by representatives of various shipping companies including 2Go of the Aboitiz Group.

The main passenger building will occupy 4,700 sq.m., the ticketing area and concession will cover 800 sq.m., while the covered drop-off area and access will take up 1,100 sq.m.

The new terminal will have a parking area of 4,000 sq.m. with 51 slots for private vehicles, 10 bus slots, and a 34-slot taxi waiting area.

According to Barclay, the passenger terminal can accommodate 2,000 passengers at any given time considering the schedule of ships.

The passenger lounge will have a total of 1,868 seats, he said.

Barclay explained that the terminal building will be similar to an airport terminal where there will be several departure and arrival areas.

“It will be a revolving situation,” Barclay said.

He said the passenger terminal is part of Phase One of the port development of the Manila North Harbor with an overall budget of P5 billion.

MNHPI plans to develop Pier 4, rehabilitate the south side of Pier 10, retrofit Pier 16, build marine slipway (MSW) wharf decks with crane rails, construct a power center and install lighting and lightning arresters. The company will also rehabilitate its container yard, buld piers, and set up an operations center that will be a one-stop-shop for all transactions at the port.

It took MNHPI 12 months to plan the passenger terminal.

Barclay said the passenger ships that are now docking at Pier 15 are evaluating their transfer to Pier 4.

The ships’ contracts to dock at Pier 15 near the Manila Hotel will expire next year.

Meanwhile, for the rehabilitation of Pier 4, MNHPI already commenced construction in January and is expected to be completed this November.

Barclay said the prospects for the shipping industry remain positive despite a decline in business growth from 2005 to 2010.

“(Over) year 2010-2012, there’s been a slight growth,” Barclay said.

According to Barclay, the rehabilitation plan for the North Harbor had been extensively planned in the past two years.

“This is one of the major projects we have aside from the port rebuilding,” Barclay said.

MNHPI set aside some P500 million for the rehabilitation of Pier 4.

Barclay said ships with drafts of nine to 10 meters can dock at Pier 4 as MNHPI is still considering expansion.

MNHPI also bought three pre-owned cranes made from Australia as part of the port rehabilitation project.

Barclay said the cranes costs P400 million.

“The cranes were pre-owned and refurbished,” Barclay said.

Barclay said that MNHPI is on schedule in its port rehabilitation work in line with its commitment to the Philippine Port Authority.

“We are actually ahead by a year in terms of schedule,” Barclay said.

Barclay explained that the project was ahead of schedule due to bigger demand for shipping in the last two years.

“Not every port has a crane, it is better if we are prepared,” Barclay said.

He said there are ships that take about 24 hours to turn around while some take 12 hours and 8 hours, depending on the vessel size.

[wheel of steel]

I hope every one will be patient here considering the issues of GDP rise... We have already attained a 7plus GDP growth in 2010 under Aquino but was reduced to a very low of 3.7%... It could still happen considering the fact that the PPPs still didnt take off at this moment and the issues of recession abroad... I mean big tickets that can actually pushed the economy... Speculating negativity at this point in time is just purely normal...

[Manila-X]

Link to past thread

http://www.skyscrapercity.com/showthread.php?t=1518031