...the PH BPO attraction

Top US bank sets up BPO in the Philippines

Wells Fargo in Taguig to create 120K jobs this year

By Daxim L. Lucas, Philip C. Tubeza
Philippine Daily Inquirer

Sunday, March 11th, 2012

 

 

Despite moves by US President Barack Obama and the United States Congress to discourage outsourcing, one of the biggest US banks has decided to locate some of its non-core business support activities in the Philippines.

Wells Fargo & Co., the second largest US bank in deposits, home mortgage servicing and debit cards with $1.3 trillion in assets, is setting up a business support center in Manila as the country’s booming business process outsourcing (BPO) industry is projected to produce more than 120,000 new jobs this year.

Company officials did not disclose the value of the investment neither the number of BPO workers the operations would employ.

“We selected the Philippines to be part of Wells Fargo’s international footprint based on the country’s reputation for strong customer service, a large English-speaking population and a cultural affinity to the United States,” said David Caldwell, managing director of Wells Fargo Philippines Solutions, the local subsidiary of the US banking giant.

The new investment is also good news for property developer Megaworld Corp. on whose McKinley Hill Cyberpark project will rise a new building to serve the outsourcing needs of the US banking giant.

“Our location in McKinley Hill gives us a strong foothold as we are among our peers in the industry,” Caldwell said.

Wells Fargo joins other high-profile BPO locators at the 14-hectare McKinley Hill Cyberpark, including Accenture, HP and Thomson Reuters.

Wells Fargo Philippines Solutions already occupies two floors of buildings 8 and 10 Upper McKinley Road, and it will also lease a campus-type building currently being constructed in McKinley Hill Cyberpark.

PH reputation enhanced

The US bank’s launch of an in-house business support center here was welcomed by labor leader and former Sen. Ernesto Herrera, saying it has reinforced the Philippines’ reputation as “an exceptional global hub for labor-intensive and information technology-enabled outsourcing services.”

“We are counting on Wells Fargo’s new center to help provide gainful employment to our college-educated, fluent English-speaking professionals, many of whom remain idle,” said Herrera.

Variety of functions

He said Wells Fargo’s new Philippine center deals with a variety of functions, including customer service and back office support.

Herrera, who is locked in a struggle for leadership of the Trade Union Congress of the Philippines (TUCP), said his labor group’s new members include VOICE, a labor federation of contact center employees.

According to Herrera, the country’s booming BPO industry, which fully employs some 630,000 Filipinos, produced $11 billion in revenues in 2011.

The Business Processing Association of the Philippines sees industry revenues jumping 18 percent to $13 billion this year, he said.

Based on the projected incremental revenues of $2 billion, Herrera said the industry could create around 126,000 new jobs this year.

Worries over US bill

According to Herrera, Wells Fargo’s decision to shift more jobs offshore comes amid worries in the Philippines over an anti-outsourcing bill in the US Congress.

Herrera said the proposed US Call Center and Consumer Protection Act, introduced by New York Rep. Tim Bishop, would require the US Department of Labor to track firms that shift contact center jobs overseas. Those firms would be ineligible for any direct or indirect US federal loans or loan guarantees for five years.

Boost for cyberpark

The bill would also require contact center staff to disclose their location to US consumers, who would be given the right to be routed to a US-based call hub upon request, Herrera said.

However, Herrera said he does not expect the US Congress to pass the bill, which he said is being opposed by US corporations that are benefiting from outsourcing.

Megaworld said the entry of Wells Fargo was a big boost to the McKinley Hill Cyberpark, which is on a rapid expansion mode, with the ongoing construction of the four-tower Science Hub beside the Venice Piazza commercial and retail area.

As an IT park accredited by the Philippine Economic Zone Authority, McKinley Hill Cyberpark offers locators income tax holidays and other perks, including the duty-free importation of office equipment.

“We are proud that one of the United States’ top four banks, Wells Fargo, has chosen McKinley Hill Cyberpark to set up their new Philippine service center,” said Jericho Go, Megaworld’s first vice president for business development.

“This move highlights the attractiveness of the Philippines as an investment destination and its human resource capabilities,” Go said.

One of US Big 4

Founded in 1929, the San Francisco, California-based Wells Fargo is one of the so-called Big 4 US banks regarded as “too big to fail” at the height of the 2008 global financial crisis. The three others are Bank of America, Citigroup and JP Morgan.

JP Morgan and Citigroup have long existing in-house back offices in Manila through JP Morgan Chase Bank N.A. Philippine Customer Care Center and Citigroup Business Process Solutions Pte. Ltd.

Bigger franchise

Although Bank of America does not yet have in-house back offices here, Herrera said the Charlotte, North Carolina-based lender is known to have outsourced some of its customer support activities to an independent BPO provider with extensive Philippine operations.

Wells Fargo is emerging from the 2008 financial crisis with a bigger franchise, after it acquired rival banking giant Wachovia Corp., which had been weakened by mounting bad loans, Herrera said.

A highly diversified financial services company with more than 80 different business lines, Wells Fargo has 6,335 branches, 12,094 ATMs, 70 million customers and 264,000 employees, he said.

...the Young Global Leader

Filipino student chosen Young Global Leader 2012

Philippine Daily Inquirer

Sunday, March 11th, 2012

 

 

 

CARANDANG. De La Salle grad

A Filipino scholar in the United Kingdom has been chosen the 2012 Young Global Leader (YGL) by the World Economic Forum.

A statement from the British Embassy in Manila said Benedict Carandang, 30, was one of the youngest selected for the prestigious honor from thousands of nominees across the world and joins the 191 other honorees of the YGL Class of 2012.

Carandang, a graduate of De La Salle University in Manila, is currently in the United Kingdom pursuing an MBA at the University of Westminster under the Chevening Scholarship Program of the UK’s Foreign and Commonwealth Office (FCO).


Creative industries

He was nominated for the Young Global Leaders scheme for his work promoting the creative industries in his home country.

The Young Global Leaders are selected by the World Economic Forum each year to recognize the world’s most distinguished leaders under the age of 40.

At just 24, Carandang co-founded Tuldok Animation Studios, a social enterprise that aims to promote creative talent in the Philippines through animation. Since then, he has become a champion of the country’s creative industries and has been recognized for his work through awards in 2008 from the British Council’s International Young Creative Entrepreneur for Screen scheme and in 2009 he was awarded the Most Inspiring Young Entrepreneur by the Philippine Center for Entrepreneurship. Most recently, he was the recipient of the prestigious Chevening Scholarship awarded by the UK FCO which enabled him to pursue his postgraduate studies in the United Kingdom.

Of the Young Global Leader title, Carandang said, “I have a lot to thank the United Kingdom for opening my horizons about the positive impact of the creative economy, on how it can help effect change and perhaps even become a catalyst in my country by creating more jobs using the talent and entrepreneurship of my countrymen.”

Carandang is now hoping to use his knowledge from the Westminster MBA to continue his work to help support his social enterprise and as part of his commitment to help shape the global future with the Young Global Leaders community around the world.

The honor, bestowed each year by the forum, recognizes up to 200 outstanding young leaders from around the world for their professional accomplishments, commitment to society and potential to contribute to shaping the future of the world. Past YGLs include Maria Bartiromo, anchor and managing editor, Wall Street Journal Report, CNBC, USA; David Cameron, Prime Minister of the United Kingdom; Esther Duflo, professor of Economics, Massachusetts Institute of Technology, USA; Larry Page, cofounder and Chief Executive Officer, Google, USA; Zhang Xin, Chief Executive Officer, SOHO China, People’s Republic of China.

19 Southeast Asians

For 2012, the forum has selected 192 YGLs from 59 countries and all sectors of society, including business; civil society; social entrepreneurs; politics and government; arts and culture; and opinion and media. The new class originates from East Asia (38), South Asia (19), Europe (46), Middle East and North Africa (15), sub-Saharan Africa (18), North America (37) and Latin America (19).

...the economic freedom ranking (2)

PH improves in economic freedom ranking

 

By Shielo Mendoza

Yahoo! Southeast Asia

Fri, Mar 9, 2012

The Philippines improved eight notches higher this year in the world ranking of Economic Freedom of the Heritage Foundation.

The country now ranks 107th freest of the 179 economies surveyed in 2012 with a score of 57.1 compared to last year’s ranking of 115th and score of 56.2.

PH ranks 19th out of 41 countries in the Asia-Pacific region, surpassing other emerging economies such as Indonesia, India, China and Vietnam.

“The HF report is an affirmation of the bold, results-oriented reforms our administration has initiated and continues to pursue in the economy and its institutions,” Presidential Spokesperson Edwin Lacierda said in a statement Thursday.

According to the report, despite the challenging economic environment, “the Philippine economy has been on a steady path of economic reform.”

It noted that the country’s business freedom improved considerably, with the "time and cost involved in dealing with licensing requirements have been notably reduced."

"The labor market remains structurally rigid but existing regulations are not particularly burdensome,” HF said.

The report added that the Philippine government has “pursued a series of legislative reforms to enhance the entrepreneurial environment and develop a stronger private sector to generate broader-based job growth.”

An inefficient judiciary, however, continues to be a deterrent, according to HF, as the country “remains susceptible to political interference” and “does not provide effective protection for property rights or strong and transparent enforcement of the law.”

Think tank Heritage Foundation seeks to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, and a strong national defense.

...the PH 10 Amazing natural wonders

10 amazing natural wonders in PHL worth visiting

By CARMELA G. LAPEÑA,

GMA News March 8, 2012


 

With summer vacation just around the corner, many Filipinos are excited to plan their vacations. While seeing the world may be fun, it can also be quite expensive.

Fortunately, there are several places that are more than worth seeing in the Philippines. “Ang Pinaka,” a GMA News TV show, lists ten of the most awe-inspiring sites and attractions in its feature “Amazing Natural Wonders ng Pilipinas.”

10. Mount Pulag

This mountain is the third highest in the Philippines and Luzon's highest peak at 2,922 meters above sea level. It is located in Mt. Pulag National Park, which straddles the boundaries of Benguet, Ifugao and Nueva Vizcaya.

The park itself is famous for its unique flora and fauna. The Philippine Brown Deer, Northern Luzon Giant Cloud Rat and the Luzon Pygmy Fruit Bat are some of the wildlife that can be found in the park.

But climbing the mountain is an unbeatable experience.

Passing through forests to get to the summit, campers can stay overnight to wake up on top of the world.

With its rainforests and grasslands, the mountain is often awash in sunlight and fog. "It's just like heaven," says Rovilson Fernandez, host of “Ang Pinaka.”

Permits are necessary to climb the park, and it's best to prepare for the challenging climb.

9. Agusan Marsh

A National Geographic team on Wednesday performs the delicate task of measuring Lolong. Photo by Richard Grande

One of the most ecologically significant wetland ecosystems in the Philippines, the Agusan Marsh is an area for conservation. It is a very popular destination for bird-watchers from all over the world.

Although it was recently in the news as crocodile Lolong's habitat, it is not yet that popular as a tourist attraction.

”Ang Pinaka” guest panelist Ivan notes that the marsh is difficult to get to, and mass tourism in the area is really not a good idea. But Agusan Marsh is a popular destination for bird watchers.

Another guest panelist on the show, Robert, shares that he was part of the Department of Tourism’s effort to create a book on birding sites all over the Philippines. "Dito mo matatagpuan ang iba’t ibang klase ng mga ibon, lalo na ang mga ibon na hindi mo matatagpuan sa ibang lugar sa buong mundo."

8. Chocolate Hills

Sometimes green, sometimes brown, Bohol's famous chocolate hills are so perfectly shaped that it's hard to believe they aren't man-made. In fact, a great deal of effort is made to keep people away from the hills.

You have to climb 214 steps just to see the hills, which are spread over three towns.

"Do not leave your mark when you visit a natural attraction. You should keep (it) the way you saw it, the way you visit it," says Ivan.

These fascinating landforms are composed of limestone and other marine organisms, like corals. The Chocolate Hills are a must-see in Bohol, which has many other attractions.

7. Donsol

Since a group of divers first made contact with butanding in 1998, these gentle giants became a worldwide attraction, and Donsol was known as the Whale Shark Capital of the World.

"Ang alam ko talaga, it’s one of the few places sa buong mundo na magagawa mo seeing the whale sharks and swimming with the whale sharks. That’s something you can really really be proud of," says Robert.

He notes that the local government ensures the tourists observe proper guidelines. "For example you are not supposed to touch or go in front of the whale shark so siyempre, bilang turista, kailangan we have to respect that, ‘di ba?"

Swimming with the butanding is a truly awesome experience. It’s so amazing, it's almost surreal.

6. Coron, Palawan

The main gateway to the Calaminan Group in the northern section of Palawan, Coron is a small island with an abundance of natural beauty.

Apart from spectacular limestone formations, immaculate beaches, hot springs and the Cayangan Lake, there is a fantastic dive site where you can see the Japanese naval vessels sunk by American fighter planes during World War II.

"Hindi maraming lugar sa mundo na maraming Japanese wrecks. Coron is one, so maraming dumarayo just to dive there," says Robert.

He also shares that it's as if time stands still on Culion Island, which was once a leper colony.

"Nandoon ‘yung isla, nandoon ‘yung hospital. Tapos ang nakakatuwa doon, dahil nga takot ang mga tao dun sa leprosy disease, when you get to the place it's like time stood still. It's not like Boracay na siyempre dumaragsa ang visitors and development is crazy. At Culion there's actually hardly any development since the 50s yata, so it’s very nice and peaceful. I really like it," he says.

5. Boracay

 

Famous for its pristine white powdery sand, Boracay was recently named the second best island in Asia, second only to Indonesia's Bali and the 4th best worldwide. Despite being crowded at times, it is still quite beautiful.

"Maski na ang gulo, meron ka namang places na you can find a peaceful spot for yourself. The sand is really something else," says Robert.

Boracay has long been a favorite tourist destination, even during the colder months.

Apart from swimming, the paradise island offers a variety of activities, and visitors have a wide array of options when it comes to resorts and dining.

4. Mayon Volcano

Known for its perfect cone, Mayon Volcano is at the northern boundary of Legazpi City in the Bicol region.

But the volcano is as scary as it is breathtaking, and it is best admired from a distance.

Polin, another guest panelist on “Ang Pinaka,” says she felt blessed to have seen Mayon in all her glory.

"Para siyang pangitain. Nandiyan lang siya sa mga ulap, perfect tapos pagka ni-reveal niya ‘yung sarili niya, it’s really something worth seeing," she says.

Ivan notes that it is very important for the local governments when building infrastructure to promote a natural attraction. "The attraction itself must be preserved. Hindi dapat siya ginagalaw. If ever there are movements, hindi dapat nakakasira sa ganda niya," he says.

"People should know how to keep away from volcanoes especially Mt. Mayon. Nakita natin kung ano ‘yung nangyari. Recently nag-spill siya ng lava tapos nagbaha, bumagyo, tapos ang daming na-wipe out na communities. You admire from a distance. Maganda siya pero huwag nating kalimutan na isa siyang bulkan," says Polin.

3. Taal Volcano

Another frequently-visited volcano is Taal Volcano. Arguably the smallest active volcano in the world, it is submerged in Taal Lake, the third largest lake in the Philippines next to Laguna de Bay and Lake Lanao.

It was said to be originally a huge volcano, towering 18,000 feet into the sky.

Polin explains that the lake is actually a crater. "It’s a wonder in itself. Kamangha-mangha siya," she says.

Listed as one of the top 10 beautiful lakes in the world, it is nominated for the UNESCO world heritage list.

"It’s a national geological monument. Dapat nga walang mga structures on the island itself, no?" says Ivan, recalling that there had been plans to put up a Korean spa and a signage on the volcano.

Visitors often see the lake from Tagaytay Ridge, where you can enjoy the fresh air and the relaxing view.

Ivan feels that the government should focus more on preserving Taal. "Hindi dapat itapon ang natural attractions natin basta basta. Kasi ‘yung attitude kasi natin ay ‘puwede na ito’; hindi dapat ‘yung kailangan nating palitan. I think the local government should consider hiring the best architects to come up with a beautiful place," he says.

2. Palawan Underground River

PPUR Facebook Page photo

Recently named one of the New Seven Wonders of Nature, the Puerto Princesa Underground River is one of the country's UNESCO World Heritage Sites.

"Ang ganda ganda ng lugar! Tapos pagpasok mo, ayon na, parang ikaw lang at ang underground river at lahat ng formations, rock formations na nasa paligid mo," says Polin.

Robert likens his experience of the place to finding the Statue of Liberty underground. "I was really really impressed so maganda talaga na makita ng mga Pilipino iyon," he says.

"Dito makikita mo rin ‘yung kamay ng nature, kamay ng kalikasan na umaandar, gumagalaw kasi ang kamay ng kalikasan ang humulma sa mga bato," says Polin, noting that the stalactites and stalagmites are truly amazing.

Ivan says Puerto Princesa's local government is really making an effort to preserve the park and the protected area. He adds that there is a need to consider the arrival of tourists to ensure that the natural wonder does not get destroyed.

1. Tubbataha Reef

Tubbataha Reef is another UNESCO World Heritage Site in the Philippines.

Rovilson explains that the reef is named from two words, “Tubba” and “Taha.” Combined, the name means a long reef exposed at low tide.

The reef is a marine sanctuary, and is protected as Tubbataha Reef National Marine Park.

"We all know that the Philippines is considered as the center of marine biodiversity in the world and Tubbataha Reef is a UNESCO world heritage site and one of the best representative for that particular state na tayo ‘yung isang sentro ng marine biodiversity sa mundo," he says.

"This is a very prestigious honor that is given to us," adds Polin.

Because the Philippines is in a coral triangle, this puts the country at the center of marine biodiversity in the world. "So ang yaman yaman at talagang pristine ‘yung ating marine life lalo na dito sa Tubbataha Reef," she says.

Ivan says that it is something that we really have to preserve and promote. "You know it will really break into a buzz if we promote our coral reefs because they are among the most beautiful in the world. So that’s why Tubbataha is my number one," he says.

Robert adds that although it is difficult to get to, this is good in terms of preserving the reef. "Ibig sabihin ang hirap puntahan, kailangan ng pera, konti lang ang nakakapunta. Ang ibig sabihin noon, hindi siya dinaragsa at hindi siya masisira kaagad," he says. –KG, GMA News

...the Engineer

Fil-Am named Asian American Engineer of 2012

March 10, 2012

GMA News

A Filipino-American engineer, Allen G. Lim, was recently named "Asian American Engineer of the Year."

Lim is a Principal Assistant Program Manager of the US Naval Sea Systems Command.

He cited for his "masterful employment of rigorous system and test and evaluation engineering
principles to provide the nation's warfighter with cutting edge undersea systems."

Born in Manila, Philippines, Lim arrived in the US at the age of seven. He became a naturalized US citizen at age 12.

He obtained a degree in Mechanical Engineering from the University of Maryland, College Park in 1984 and has since had over 24 years of experience in the submarine acquisition community.

He first worked as an acoustic analyst for the Naval Surface Warfare Center, Carderock Division, being responsible for submarine acoustic testing  for newly delivered submarines.

Lim rose the ranks and currently serves as the Principal Assistant Program Manager for Mission Systems with the Advanced Undersea Systems Program Office.

He is responsible for the acquisition and life cycle management of classified submarine research and development systems.

Lim is not only dedicated to his work but is also very active in his community and church.

He coaches youth sports and serves as a youth leader in the Boys Stockade of Christian Service Brigade. - VVP, GMA News

...the state U

UP to represent PH in int'l student conference

 

ABS-CBNnews.com

 03/10/2012

 

MANILA, Philippines - Students from the University of the Philippines will represent the country in an international student conference to be held in Hong Kong next week.

 

Ranyel Bryan Maliwanag and Joshua Arvin Lat will attend the Kaspersky Lab International Student Conference Asia Pacific, Middle East and Africa Cup 2012, an event where participants discuss issues relating to cybercrime.

It will be held at the City University of Hong Kong from March 14 to 16.

Maliwanag's and Lat's teams have been selected as two of the 15 finalists after creating an application that uses voice recognition and a research paper on secure online registration, respectively.

In a statement, Kaspersky Lab said this is the first time that the Philippines will be joining the annual conference. The two teams from UP will be vying for cash prizes ranging from $750 to $1,500.

A total of 52 research papers were submitted to this year's conference, with five of them coming from the Philippines.

"This conference is a very good platform for our young brilliant minds from the Asia Pacific region to cultivate their knowledge in understanding Internet security and eventually contribute innovative ways to improve cyber security," Kaspersky Lab Asia Pacific managing director Harry Cheung said in a statement.

"I hope to see more of them join and really make the cut in the international round," he added.

The selected 15 research papers will be evaluated again during the Hong Kong conference next week.

From here, three will be selected to participate in the 2012 Kaspersky International Cup to be held at Delft Technical University in the Netherlands from May 11 to 13.

...the Pinay power

More Pinays in top management - study

By Jovan Cerda
(philstar.com)
March 09, 2012

MANILA, Philippines - The Philippines ranked second in a global survey of economies with women occupying senior management posts, a business report released Friday by accounting firm Punongbayan & Araullo (P&A) said.

The proportion of Filipino women occupying top posts in business leaped from 35 percent in 2011 to 39 percent this year, Grant Thornton's International Business Report said.

The Philippines placed second, along with Botswana and Thailand, while Russia took the top post with 46 percent. Georgia (38 percent), Italy (36 percent) and Hong Kong (33 percent) placed third, fourth and fifth, respectively.

On the other hand, United Arab Emirates (15 percent), Denmark (15 percent), India (14 percent), Germany (13 percent) and Japan (5 percent) occupied the bottom spots. The global average was 21 percent, a slight improvement from last year's 20 percent.

Among the members of the Association of the Southeast Asian Nations, only the Philippines and Vietnam posted a rise in the number of women in top management.

"In the Philippines, the trend is for female business leaders to take on responsibilities involving finance. This year, 64 percent of Filipinas in senior management were either chief finance officers or holding senior finance positions, up from last year’s 54 percent," the report said.

In a statement, Marivic Españo, P&A managing partner and chief executive officer, said the report shows that top posts in the Philippines are accessible to men and women equally, but she added that the falling numbers in other countries should alert business leaders.

The report added that for the first time, respondents were asked if they offered flexible work arrangements for women. Sixty-six percent of Philippine businesses answered yes, above the global average of 52 percent and the ASEAN average of 53 percent.

“This is one way of encouraging women to aim for the top, especially those who have to balance their career with motherhood. Hopefully moving forward, we can find more ways to open up those C-suite posts to women, and continue to be a good example of gender equality here in the ASEAN region,” Españo added.

...the broader outsourcing role

More than just talk: PH eyes broader outsourcing role

 

By Karen Lema, Reuters

 03/09/2012

 

MANILA, Philippines - The Philippines is the world's call-center capital, but will need more graduates and better trained professionals if it's to be a major force in the broader outsourcing market, where growth is in providing research and analytics for the legal, healthcare and financial industries.

 

In little more than a decade, the Philippines has overtaken India in running call-centers, helped by an affinity for the language, culture and work ethic of the United States, its former colonial master.

The number of Filipinos offering a cheery "Have a nice day" while working the graveyard shift to answer calls on behalf of multinational clients such as Citigroup and JPMorgan Chase now far exceeds India's 350,000, and the government wants to double the market to $25 billion by 2016, employing 1.3 million workers.

But to do that the Southeast Asian nation must convince investors it has more to offer than just a huge pool of talent speaking English with an American accent.

Research firm Everest Group has forecast the global business process outsourcing (BPO) industry could be worth $220-$280 billion this year, with 90 percent of that in non-voice work - providing more complex skills and services in research and analytics for lawyers, doctors and bankers.

In the Philippines, non-voice work last year accounted for just over a fifth of total BPO revenues of $10.9 billion, but employed a third of the BPO workforce, or around 220,000 people.

"The goal is aggressive but achievable as long as we know one thing: that what got us here won't get us to where we need to be," said Maulik Parekh, president and CEO of outsourcing services provider SPi Global, part of Philippine Long Distance Telephone Co (PLDT), the country's most valuable listed company.

"A lot of the focus of the tripartite relationship between the government, educational institutions and the private sector has been about English language skills. We need to start to focus on how we can have a thriving healthcare, publishing, finance, human resource, procurement, IT-related BPO," Parekh said.

India is expected to continue to dominate in outsourcing, with its first-mover advantage and skills in software development, but the Philippines has its eye on the non-voice market's potential.

"While some providers are leveraging the Philippines for non-voice functions, the scale of work is relatively low. However, tremendous market potential exists if service providers can successfully manage talent-related constraints," Nikhil Rajpal, partner at Everest, wrote in a study.

With China, Latin America and other Asian markets such as Malaysia also making strides in outsourcing, the Philippines must ensure it has a steady supply of professionals and highly skilled workers to offer the more complex, added-value services to meet clients' changing and increasing demands.

In Manila, Cebu and beyond, demand for outsourcing is growing at around 20 percent a year, but the number of local university graduates is growing at only 3 percent, and only 5-8 percent of them are hire-able, based on government data, highlighting a need to re-engineer the country's educational system.

The Philippines has a 10-year basic education system, which the government is looking to extend by two years, by adding a pre-school kindergarten programme, to match its Asian rivals.

"The challenge is to be able to supply the human resources to support the industry both from the entry level to middle managers and executives," said Trade Secretary Gregorio Domingo.

The country turns out 470,000 accountants, lawyers, nurses and engineers each year, but that figure is dwarfed by the 4 million college graduates in India and 2 million in China.

Insourcing
The Americas remain the biggest clients for the Philippine outsourcing industry, accounting for nearly three-quarters of the domestic BPO market, but Europe, Australia and Japan are increasingly knocking at the door for business.

Some local BPO operators worry about the possible impact of U.S. President Barack Obama's election-year pledge to close tax breaks for companies that move U.S. jobs overseas and offer incentives to firms bringing those jobs back home.

But Jose Cuisia, Manila's ambassador to Washington, has sought to allay those fears, saying a pending bill in the U.S. Congress to end job exports lacks support from the Republicans that dominate the lower house of the Congress.

"I don't think that will pass, even in an election year," Cuisia said at a recent forum with Deputy U.S. Trade Representative Demetrios Marantis, noting that outsourcing backroom functions makes U.S. companies more competitive.

In its 2011 Global Services Location Index, consultancy firm A.T. Kearney ranked the Philippines 9th out of 50 outsourcing destinations, saying: "Politicians are using global services offshoring as an easy scapegoat for current economic woes and high unemployment levels in their home countries, stoking resentment against globalized firms and their host countries."

"Although signs of a slowdown in the growth of global services are evident in this environment, don't expect offshoring to end. In fact, the global services industry's full potential is ready to be tapped."

Formidable force

The growth in the Philippine outsourcing sector has made it indispensable to the economy and to employment, with local officials citing it as one of the reasons the country escaped recession in the wake of the 2008 global financial crisis.

In 2009, when much of the world was reeling from the crisis, the United States invested $1.4 billion in the Philippine BPO sector, up from $986 million a year earlier, central bank data showed.

"The BPO industry is one that takes advantage of the strength of the Philippines, which is its people," Finance Secretary Cesar Purisima said.

"It's an industry that not only offers direct employment (but) also supports the real estate industry and the service industry, and, together with remittances from Filipinos working abroad and tourism, will form part of the three strong legs that will be the platform for growth of the Philippines in the next years."

...the Filipino clothes

JC Buendia: It's time for Filipino clothes to shine

 

ABS-CBNnews.com

 03/09/2012

 

"In the 80s, the Japanese designers were very much in demand with those shapeless dresses. And then in the 90s, it was the Chinese influence, all the cheongsams. And now we feel that there's a demand for organic fabrics, like what we have,"  - JC Buendia

 

MANILA, Philippines - After Japan's shapeless dresses and China's cheongsam, it's time for Filipino clothes to shine, a famous local designer said.

 

JC Buendia, who has dressed up two Philippine heads of state (Gloria Macapagal Arroyo and Benigno Aquino III) and several local celebrities, noted that Filipinos are "very good" at embroidery, hand painting and beadwork.

These, he said, are skills that "set us apart from other designers."

"In the 80s, the Japanese designers were very much in demand with those shapeless dresses. And then in the 90s, it was the Chinese influence, all the cheongsams. And now we feel that there's a demand for organic fabrics, like what we have," Buendia said in an interview on ANC's "Shop Talk."

"So we feel it's the time for us Filipino designers to shine in the international market."

Buendia and nine other local designers will showcase Filipino resort clothes at the 55th Manila Fame exhibition, which will be held at the SMX Convention Center in Pasay City from March 14 to 17.

Ten Filipino accessory makers will also be part of the said event. All of them are led by Josie Natori, founder of the Fashion and Design Council of the Philippines (FDCP).

"We were happy that she (Natori) was very generous in sharing her expertise in this. She founded FDCP which I currently head, and I'm glad that we've brought attention to indigenous fabrics," Buendia said.

Manila Fame will also feature furniture shows, and stalls offering gifts and other items. More than 200 exporters are expected to take part in the event, which aims to showcase what the Philippines can offer to the global market.

Aside from the United States, other trading partners of the Philippines include Korea, Australia, and countries from Southeast Asia.

...the English tilt placer

14-year-old Pinay girl in China places 3rd in English tilt

March 8, 2012

GMA News

A 14-year-old Filipina student in Guangzhou, China recently bagged third place in the National English Speech Competition in Beijing.

According to a news release of the Philippine Department of Foreign Affairs (DFA), the Filipina girl, Summer Gem Remo-Genis, is a second-year student at Guangzhou Huamei International School's British Columbian-Canadian Program.

She is the daughter of Guangzhou-based English teachers Esteb and Ma. Pamela Remo-Genis, the Philippine Consulate General in Guangzhou said.

"A scholar and a consistent top 10 student since she was in her first year in the said school, Susum, as she is fondly called by her friends, loves photography, reading classical English books, playing the guitar, singing, and listening to Korean and Japanese music," the DFA said.

Three-stage competition

The DFA said Summer garnered a Pass with Merit award in the preliminary phase of the three-stage competition.

She bagged the grand prize in the provincial phase, the second stage.

Finally, she won the third prize in the national phase held in Beijing in February.

The National English Speech Competition was organized by the Sino-British Exchange Center in Education Management and the University of Cambridge English-for-Speakers-of-other-Languages (ESOL) Examinations. - VVP, GMA News

...the tycoons

6 PH tycoons make it to Forbes list of world’s wealthiest

By: Doris C. Dumlao
Philippine Daily Inquirer

Thursday, March 8th, 2012

HENRY SY SR.. INQUIRER file photo

MANILA, Philippines — Six tycoons from the Philippines led by Henry Sy made it to Forbes Magazine’s list of the wealthiest people on the planet.

Based on Forbes’ list of the world’s billionaires, Sy and family ranked 116th or the highest among local tycoons with an estimated net worth of $8 billion.

The 87-year-old Sy leads SM Investments, the dominant player in Philippine banking, retailing, shopping mall development as well as a fast growing player in residential and tourism-oriented property development. His group has also recently added mining to  its portfolio.

Lucio Tan and family ranked 314th on the global list with an estimated net worth of $3.5 billion.

Tan, 77, has interests in tobacco and liquor manufacturing, airline, property and banking. He has vast property interests in mainland China.

Property mogul Andrew Tan ranked 601st on the global list with an estimated net worth of $2.1 billion.

Tan (not related to Lucio), 59, built a fortune out of real estate development, particularly in offering high-rise residential units to the mass market and in pioneering mixed-use developments to attract business process outsourcing firms.

He has also successfully ventured into the gaming business in partnership with the Genting group of Malaysia.

Enrique Razon Jr., 52, is the fourth and the youngest tycoon from the Philippines on the global list with an international rank of 683rd.  Forbes estimated his net worth at $1.9 billion.

Razon has built a fortune international port operations. He has unloaded his interest in the country’s electricity transmission superhighway National Grid and is now building a casino-hotel complex in Pagcor City.  He also has an interest in oil exploration.

San Miguel Corp. chairman Eduardo “Danding” Cojuangco, 76, is the fifth Philippine tycoon on the list with a global rank of 960th.  The 76-year-old tycoon has an estimated net worth of $1.3 billion.

Lucio Tan INQUIRER FILE PHOTO

Cojuangco has a 15-percent stake in SMC which has diversified from its traditional food and beverage businesses into other industries like power generation, power distribution (via a minority but significant stake in Manila Electric Co., oil refining, mining, tollroad, airport, banking and telecommunications.

Former Trade Minister Roberto V. Ongpin, 75, ranked 1,153rd on the global list with an estimated net worth of $1 billion.

Ongpin brought in London-based Ashmore as a partner in Philippine investments in recent years.  Apart from his interest in San Miguel and Petron Corp., Ongpin is into real estate, mining and recently ventured into banking.

Forbes published on March 7 a gallery of the richest people on the planet.

For 2012, Forbes counted an all-time high 1,226 billionaires around the world worth a record $4.6 trillion, compared to a list of 140 names when it started this tradition of counting billionaires 25 years ago.

At the top of Forbes’ list is 72-year-old Mexican billionaire Carlos Slim Helu with an estimated net worth of $69 billion.

Microsoft founder Bill Gates, 56, is second with an estimated net worth of $61 billion.  Investment guru Warren Buffet, 81, chairman of Berkshire Hathaway, ranked 3rd with an estimated net worth of $44 billion

...the Asian premier

'Aladdin' musical to have Asian premiere in PH

ABS-CBNnews.com

03/08/2012

MANILA, Philippines – Disney’s latest stage musical, “Aladdin,” will have its Asian premiere in the Philippines.

In his column for the Philippine Star which appeared on Thursday, Boy Abunda said local theater group Atlantis Productions was handpicked by Disney Theatricals to be the first to mount the stage version of the hit 1992 animated movie in Asia.

“We are thrilled to continue our relationship with Disney Theatricals with their brand new stage musical Disney’s 'Aladdin,' which only recently premiered in the United States. We are honored that Disney has handpicked us to premiere the musical in Asia,” Atlantis’ creative head Bobby Garcia, told Abunda.

“We look forward to creating the whimsical world of Agrabah and the enchanting Arabian nights where Aladdin and Princess Jasmine take flight on their romantic magic carpet ride. It will definitely be the musical event for families in 2012. We can’t wait to begin,” Garcia added.

Atlantis Productions previously staged Disney’s “Beauty and the Beast” with KC Concepcion in 2005 and “The Little Mermaid” with Rachelle Ann Go last year.

“Aladdin” tells the story of a street-smart commoner whose whole life changes when he discovers a magic lamp.

The film version featured Tony Award-winner Lea Salonga as the singing voice of the cartoon princess Jasmine. Salonga sang the movie’s hit song “A Whole New World.”

Meanwhile, Atlantis will stage a repeat of last year’s surprise hit “In The Heights” from March 16 to 25 at the Carlos P. Romulo Auditorium at RCBC Plaza in Makati City.

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...the WOW Factor

Jessica Sanchez wows 'Idol' judges anew

By Shiela Reyes,

ABS-CBNnews.com

03/08/2012

Filipino-Mexican contestant Jessica Sanchez

MANILA, Philippines – Filipino-Mexican contestant Jessica Sanchez continues to make waves on the hit reality talent search “American Idol.”

Sanchez received a standing ovation from the "Idol" judges yet again as she performed her own version of Whitney Houston’s “I Will Always Love You” on Wednesday (Thursday morning in Manila).

Judge Randy Jackson said it is but right to “give it all” for Sanchez, whom he raves to be “one of the best singers of this whole competition.”

“Jessica Sanchez is legit. Let me tell you something. This is one of the hardest songs in the world to sing. You not only are the best vocal of the night, I think you are one of the best singers of this whole competition. Oh my God,” Jackson said.

Judge Jennifer Lopez, on the other hand, was left speechless and had nothing much to say but praises for the 16-year old singer.

“Just just amazing. I don’t even know what to say. I’m speechless. I’m speechless when you did those last three little things, we were right there with you,” she said.

“I think you were even surprised that you were sobbing. I was like, oh my God! That was when I felt Whitney. Oh my God yes! It was beautiful Jessica! You are so talented. God bless you,” Lopez added.

Judge Steven Tyler for his part said Sanchez “just made 40 million people cry.”

Even "Idol" alumnus Jennifer Hudson, who sang “I Will Always Love You” during the tribute to Houston at this year's Grammy Awards, posted a positive tweet about Sanchez’s performance.

Aside from Sanchez, the judges also gave rave reviews for Hollie Cavanagh, Joshua Ledet, Erika Van Pelt and Phillip Phillips.

Jessica takes Twitter by storm

Meanwhile, right after singing her own cover of “I Will Always Love You,” Sanchez made it to the trending topics on Twitter worldwide.

Several netizens were raving how good Sanchez was considering that she sang one of Houston’s most popular songs.

“Jessica Sanchez is the best on 'American Idol'.... She killed Whitney Houston's 'I Will Always Love You'... Amazing #goosies,” said user @chrisharvey2020.

“I've never heard anyone sing Whitney Houston's 'I Will Always Love You' as good as Jessica Sanchez from American Idol. Holly S%$#¢*!!!!!!” said user @MISSM00KIE.

Twitter user @C_Bonnett, on the other hand, said: “Jessica Sanchez!!! Totally going to take American idol!! Absolutely amazing <3 #Whitneytribute #idol”

“Excuse me while I pick my jaw up off the floor. Jessica Sanchez. Wow,” said user @britaharris.

Twitter user @Jon_Ortiz_ said: “Jessica Sanchez. Wow. Remember that name. I think she's one of the best singers ever to be on American Idol :] I love her.”

After Wednesday’s performance, America will have to vote who among the contestants they want to advance.

The results will be announced live on Thursday night (Friday morning in Manila).

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...the AI top pick

Sanchez is U.S. mag's pick to win 'Idol'

 

ABS-CBNnews.com

03/07/2012

 

 

MANILA, Philippines – The U.S. magazine Entertainment Weekly has selected Filipino-Mexican Jessica Sanchez as its top pick to win this season’s “American Idol.”

 

Sanchez is on top of the magazine’s “Power List” for this week, followed by Phillip Phillips, Jr. and Skylar Laine.

Early favorites Colton Dixon and Joshua Ledet round up the magazine’s Top 5, while Jermaine Jones is at the bottom at No. 13.

The magazine's "Power List" changes every week.

For Wednesday’s performance show (Thursday morning in Manila), the male contestants must sing a Stevie Wonder song, while the female contestants will pay tribute to the late Whitney Houston.

Sanchez has already proven that she can handle power notes when she sang Aretha Franklin's “(You Make Me Feel Like A) Natural Woman” during her audition in her hometown of San Diego, California. She also took on Celine Dion in her final solo, "The Prayer," in Las Vegas.

Last week, Sanchez earned a standing ovation from all three “Idol” judges – Steven Tyler, Randy Jackson and Jennifer Lopez – for her rendition of Jennifer Hudson’s “I Love You I Do” – despite suffering from swollen vocal chords.

“Her lower register (the one that started out the song) is much weaker than her terrific higher range, but once she got going this turned into of the most memorable songs of the week,” Entertainment Weekly said of her performance of the “Dreamgirls” number.

“She's young, cute, hungry, and loves to shop at the mall. I can see her winning it,” the magazine predicted.

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...the growth projection (2)

Philippines eyes 6% growth despite China, oil worries

AFP News

07 March 2012

 

 

 "...the Philippines was firmly on track for its 5-6 percent GDP growth target this year." - Ruperto Majuca, Assistant Director-general, National Development Office for Planning

The Philippines will hit or top its growth target of 5-6 percent this year despite rising oil prices and China's forecast of slightly slower economic expansion, officials said Tuesday.

Central bank governor Amando Tetangco and other officials said China's 7.5 percent gross domestic product (GDP) growth target this year, from 8.0 percent last year, was not a cause for concern.

"While the growth projection has been downscaled, they can still beat that target," he told a news conference.
"If that's the case then there won't be any significant impact," he said, adding that some deceleration had been expected.

Announced by Premier Wen Jiabao on Tuesday, the new target remained substantial for a large economy despite the "temporary" jitters it caused on financial markets, said Tetangco.

Ruperto Majuca, assistant director-general of the economic planning ministry, said the Philippines was firmly on track for its 5-6 percent GDP growth target this year.

"We will probably hit the higher end of our forecast, and we will not be surprised if we will exceed it," Majuca added.

Vivek Arora, the International Monetary Fund representative in the Philippines, said GDP growth should recover to 4.2 percent this year, from 3.7 percent last year.

Higher government spending, robust salary remittances by millions of Filipinos abroad, and supportive monetary conditions will be key, he told a conference call.

"So far we see the authorities' policy focus as appropriate in the sense that macro policies are supporting growth while keeping inflation manageable," Arora added.

Tetangco said that despite the surge in oil prices amid tensions over Iran's nuclear programme, the Philippines remained on course for 3-5 percent inflation this year.

"The current assumption is oil prices of between $90-110 (a barrel) for the whole year," he said.

They would have to spike to $150-160 per barrel, for the outlook to change, he added.

The government announced Tuesday inflation slowed to 2.7 percent in February from a revised 4.0 percent in January.

Tetangco said this vindicated the central bank's move to cut its key interest rates by a full percentage point this year.

...the good value proposition

Philippines now 'a good value proposition' – Tetangco

 

TINO PAMINTUAN

March 6, 2012

GMA News

 

 

“Today, the Philippines is a good value proposition for investments, both domestic and foreign,'' - Bangko Sentral Gov. Amando Tetangco Jr.
 

 Riding on governance reforms, the Philippines is attracting the confidence of foreign and domestic investors, the country’s economic managers told reporters in a briefing Tuesday.
 
Big investors are coming in this year, officials said, citing a host of reasons why investments will soon be pouring into the country that has always played the sick man of Asia in political and economic terms.
 
“Today, the Philippines is a good value proposition for investments, both domestic and foreign,'' said Bangko Sentral Gov. Amando Tetangco Jr.
 
Government's commitment to good governance helped improve trust and build confidence among investors to do business in the Philippines, according to the central bank chief.
 
Philippine bureaucracy is now more transparent, Tetangco noted.
“We have made the economy structurally fit to enable it to sustain its gains,” he said.
 
Infrastructure spending to pump prime the economy, robust consumer spending and a stable banking system have kept the economy growing, he added.

New investments

Five Japanese companies are expanding their operations, and 10 are new investments in electronics, shipbuilding and steel manufacturing, according to the Trade secretary.

 

Domingo reported that committed investments, both domestic and foreign, reached P650 billion in 2011, up P150 billion from P500 billion a year earlier.

 

Apart from good economic fundamentals in terms of inflation, foreign exchange remittances from overseas Filipino workers and earnings from business process outsourcing, Tetangco said the country remains good for investments because of its young, vibrant and skilled workforce.

 

Government expects significant improvement in public spending and project execution this year, Budget Secretary Florencio Abad said at the same briefing.

 

“As of end-January this year, we already released P150 billion to all departments or 71 percent of the government's capital outlay in 2012 compared to only P7 billion during the same period in 2011,” he said.

 

Construction activities will pick up this year, creating jobs, said Socioeconomic Planning Secretary Cayetano Paderanga. “This is where we will spend a lot of time,” Paderanga noted.

Big-ticket projects

 

Government also set aside P19.6 billion in counterpart funds for the public-private partnership (PPP) program, half of which will go to the Department of Transportation and Communications, he said.

 

There are now 16 big-ticket projects under PPP, including the construction and rehabilitation of airports, seaports, highways, railways and water supply, according to the National Economic Development Authority, also headed by Paderanga .

 

Another consequence of reforms is the 13-percent increase government revenues last year, with no new taxes or asset sale, said Finance Secretary Cesar Purisima.

 

“The rise in revenues and savings from debt service last year reduced the government's deficit to P197.8 billion or 2 percent of GDP compared to the P300-million program for the year,” Purisima added. — VS, GMA News

...the smartphone for the blind

Mapua students' cellphone for blind tops wireless tilt

March 6, 2012

GMA News

A mobile phone developed for blind users earned a computer engineering team from the Mapua Institute of Technology the grand prize in a wireless engineering education program competition.

Mapúa bested some 140 entries to be the grand champion in the 8th Smart Wireless Engineering Education Program (SWEEP) Innovation and Excellence Awards with its "Wearable Obstacle Detection System and Braille Cell Phone for the Blind."

“We didn't expect to win - but we hoped for it - since all other finalists also have great entries,” said team member Kristine Emy Matabang, who with Girly Perando and Janiena Roxanne Dirain, all graduating students, developed the device.

The mobile phone is a dual-purpose device that aims to help the blind that can detect obstacles within five meters and it serves as a cell phone with Braille keypad so the visually impaired can receive and answer text messages and calls.

SWEEP is an industry-academe partnership that seeks to raise the level of technology and engineering education in the country.

A group of electronics engineering (ECE) students from Mapúa, whose project is called the “The Fault Line Data Acquisition and Monitoring System,” also made it to the final 10.

Dirain, Matabang and Perando, with mentor Engr. Ayra Panganiban, received P500,000 in cash prize during the awarding ceremony on February 22 at the SMX Convention Center.

Grants were also given to the schools of the top three teams.

“We are very honored and proud to represent the school together with the group of Engineer [Joseph Bryan] Ibarra,” said Perando.

The three CpE students also thanked “everyone who took part on this journey especially to our Smart SWEEP mentor, Engr. Ayra Panganiban, and our design adviser Engr. Michael Pacis.”

“To the Mapúa community, thank you for believing in us and supporting us all throughout the competition,” they said.

Patent application

The group said they plan to file a patent application for their invention - and enhance the device.

“We will also enhance our device. For example, we are looking at making it wireless. Also, we want to make it more compact so that it can be more beneficial to the blind community,” said Dirain.

Dean Felicito Caluyo of the School of Electrical, Electronics, and Computer Engineering (EECE) was happy with the group’s “splendid performance” in the competition.

“As the Dean of the School of EECE, I am very proud that our entry, ‘Wearable Obstacle Detection System and Braille Cell Phone for the Blind,’ in the 8th Smart SWEEP Innovation and Excellence Awards garnered the highest award,” he said.

“I believe that the splendid performance of the team has not come as a surprise because they worked hard for it and the project itself is very interesting, innovative and with social relevance,” he added.

Caluyo said he has always encouraged his faculty members and students to engage in research activities to put into practice their knowledge and experience.

“This new achievement is a concrete evidence of Mapúa’s thrust towards Outcomes-Based Education, wherein the learners demonstrate what they are able to do with what they know,” he said.

This was the second time that Mapúa joined the annual competition, and the Mapúans have always made it to the top 10. — TJD, GMA News

...the bartending fave

Pinoy is fan fave in world bartending tilt

 

ABS-CBNnews.com

03/06/2012

 

 

Ram Ong of the Philippines was named Fan Favorite at the 21st World Bartender Championships in Dallas, Texas. Photo courtesy of T.G.I. Friday's

MANILA, Philippines – Filipino bartender Raminad “Ram” Ong was named T.G.I. Friday's Fan Favorite at the 21st annual World Bartender Championship held recently in Dallas, Texas after more than 300,000 cast their votes online.

This is the second appearance of Ong in the finals of the international bartending competition.

Ong, who works at T.G.I. Friday’s in Robinsons Place Manila, was among the nine finalists who faced off in Dallas last February 26. He competed with bartenders from Malaysia, Sweden, Dominican Republic and the United Kingdom, as well as four Americans.

But it was David Kringlund from Stureplan, Sweden who was crowned the World’s Greatest Bartender.

“This entire competition has been an exciting challenge and a phenomenal ride,” Kringlund said in a statement.

“Hours of training and preparation paid off not just with this win, but with the total experience that made me feel more a part of the Friday's family.”

The WBC, which started as a one-off challenge between two bartenders, has become acknowledged as one of the toughest international bartending competitions. Finalists were chosen based on their knowledge of the bar, the flavor of their drinks and their “flairtending” skills.

Over 1,000 spectators attended this year’s finals, led by international singer Enrique Iglesias.

“We are always impressed by the talent that comes through this competition from all corners of the world,” said Trey Hall, chief marketing officer for T.G.I. Friday’s. “Anyone can learn to mix a good drink, but our bartenders – David in particular – have that extra something that ensures anyone seated around the bar will feel Friday’s infectious energy."

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...the market to watch

Philippines: The market to watch

By: Den Somera
Philippine Daily Inquirer

Tuesday, March 6th, 2012

The Philippines is a highly mineralized country. It is increasingly attracting foreign investments that could lead to more economic growth and development.

Likewise, due to its good sun, beautiful mountains and seashores, along with its distinctive brand of hospitality—coupled with the presence of new property venues—the Philippines is poised to be a top contender not only for rest and leisure but as a travel destination for games and amusements, more particularly “gaming.”

The Philippines still has to clarify its policy on the mining industry, but the government has—fortunately—readily opened its options in the gaming business as another strategy for development.

Based on the market study published by Citibank’s Citigroup Global Markets Inc. dated February 8, it said that “South and Central Asia are home to four billion people where gaming demand is underserved by just 200 licensed venues (versus 1,600 and 1,200 in North America and Europe, respectively).”

The report further cites the Philippines as one of the four “frontier markets” that is poised to take on the “burgeoning opportunities” presented by the “underserviced” gaming business in the Asian region.

The three other frontier markets particularly cited to vie as well as pose some challenge to the Philippines would be Cambodia, Vietnam and Sri Lanka.

In contention is Naga Corp. (listed), which “has a license to operate casinos in Cambodia with the exclusive right to operate within a 200-kilometer radius of Phnom Penh (called Designated Area).” In addition to its already installed facilities, it recently built an additional 220-room tower that has been partially opened “to cater to the Vietnam bus market.” The company will also establish sales offices in Ho Chi Minh City (Vietnam) and Bangkok (Thailand) to capture business overflows, which “represent the greatest growth markets” of the company, according to the study.

In place for operation in early 2013 in Vietnam is the “MGM Ho Tram project of Asian Coast Development of Canada (unlisted),” of which Pinnacle Entertainment Inc. of the United States has a 26-percent equity stake. It has an “Investment Certificate from the Government of Vietnam that is given the right to develop five large-scale integrated entertainment centers in Ho Tram, situated some 127 kilometers from Ho Chi Minh City on a 164-hectare beach front fringing the South China Sea.”

Initially starting with a 540-hotel room, 90 tables and 1,000 slots, MGM Ho Tram has a “13,000-square-meter entertainment area, retail, restaurants, bars, lounges, shows conference and meeting areas, an 18-hole Greg Norman-designed golf course, and other leisure amenities.”

Taking steps “to pursue future gaming opportunities in Sri Lanka and at the same time capture the market overflows in the Indian border is Delta Corp.” (India listed company, with business interests in entertainment and gaming, hospitality and real estate) “and Genting HK” (which belongs to the Genting group of Malaysia which, in turn, is connected with one of the four locally licensed gaming companies).

2012 estimates

On the basis of existing property venues reviewed, the study’s 2012 estimated gross gaming revenues of the world are as follows: Macau, $40 billion at 20-percent growth; Singapore, $6.9 billion at 13-percent growth; Malaysia, $1.55 billion at 3-percent contraction; Philippines, $1.7 billion at 17-percent growth; Cambodia, $0.26 billion at 19-percent growth; Vietnam, $0.18 billion; Sri Lanka (still to be determined); Las Vegas, $6.1 billion at 2-percent growth; Atlantic City, $3.3 billion at zero growth; and Australia, $17.1 billion at 4-percent growth.

Wynn-Okada controversy

Notice in the foregoing forecast, Las Vegas is expected to be overtaken by Singapore as the second-biggest gaming market in the world. Macau, according to the study’s estimates, too, will be adversely affected as additional property venues, like those in the Philippines, will shortly go on stream.

In this connection, the study reflected some indirect conclusions on the quarrel between Wynn Resorts Ltd., on one side, and Kazuo Okada, Aruze USA Inc. and Universal Entertainment Corp. (Okada), on the other.
Local gaming observers and enthusiasts were even more direct and articulate on the matter: Okada, through its subsidiaries, is one of the four gaming companies awarded by Philippine Amusement and Gaming Corp. to build a hotel-resort complex in the Entertainment City, wherein he obviously did not include Wynn.

Based on the 2010 financial report of Wynn Resorts, Las Vegas contributed “31 percent of total revenue, [on] 70 percent of assets, [at] 57 percent of total cost” while Macau contributed “69 percent of total revenue, [on] 30 percent of assets [at] 43 percent of cost.”

The quarrel has turned ugly, even casting a bad reputation on the country. But to the aforementioned parties, the controversy is nothing but a simple case of Wynn getting sore at Okada. Wynn was clearly left out of the Philippine market whose business is estimated to grow at a double-digit rate.

Bottom-line spin

It is very evident that the Philippines is now at a crucial stage to grab economic greatness that eluded it in the past. No extensive body of information is yet available that clearly captures the adverse costs from the exploitation of mineral resources to environment and gaming (or gambling) to society. On the other hand, both have undeniable roles in historically fostering economic development in the United States and in Europe.

The economy of Singapore is a patent product of gaming as a source of new revenue and instrument to further stimulate the economy.

The government should act now. Prolonged indecisiveness may lead to losing its current chance to promote national development and global competitiveness.