...the Filipino seafarers

Importance of Filipino seafarers in international trade cited

Business Mirror
10 October 2019

LONDON—The Philippine Permanent Mission to the International Maritime Organization, led by Ambassador to the United Kingdom and the country’s Permanent Representative to the IMO Antonio M. Lagdameo, underscored the vital role played by Filipino seafarers in maintaining the safety, security, and progress of international seaborne trade, the global shipping industry, and the Philippine economy.

In his remarks at a luncheon hosted by the permanent mission at the IMO Headquarters, Lagdameo shed light on the theme of this year’s national day celebration, “Courage for the Nation, Compassion for the People.” It highlighted the values that President Duterte aims for every public servant to embody. He also mentioned Filipino seafarers exhibiting such values around the world.

The Maritime Safety Committee (MSC) of the IMO handles issues on maritime safety and security, covering both passenger ships and all kinds of cargo ships.  Part of its work includes updating the Safety of Life at Sea Convention and other related codes that deal with dangerous goods, life-saving equipment and fire-safety systems. The MSC also deals with amendments to the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, as well as those from Manila. DFA

...the Regional leader in Antitrust laws

Philippines Steps Up Regional Edge In Antitrust Law Enforcement

By Marvie Chorawan-Basilan

Feb 21, 2019 

A view of nickel ore stockpiles at a port in Sta Cruz Zambales in northern Philippines February 8, 2017. (Photo: REUTERS/Erik De Castro/File Photo)

The Philippines is gradually transforming into a regional leader in the enforcement of antitrust laws as the Southeast Asian country jumped to 5^th place in 2018's Asia-Pacific policy records.

According to local newspaper The Philippine Star, competition news and analysis firm Policy and Regulatory Report (PaRR) revealed in its 2019 "Global Trends Monitor" report that the Philippines stepped up three places higher in the top 10 Asia-Pacific list of economies that allow for fair competition in trade and business.

PaRR's report noted that the Philippine Competition Commission (PCC) enhanced its authority, thus strengthening the monitoring activities of markets or trade practices that could be hampering growth in some business sectors in the country.

"The Philippine Competition Commission is strengthening its enforcement framework this year with the introduction of a leniency program and the addition of rules on forbearance and dawn raids to its arsenal of investigative tools," part of the report stated.

Last year, the Philippine antitrust agency recorded a total of 40 acquisition transactions and mergers, accounting for PHP438 billion. Of the M&A transactions recorded, 33 were given the approval to proceed with the projects.

In April, the agency released a draft of guidelines that seek to benefit joint ventures. The merger notification threshold for Philippine exchange was also raised to PHP5 billion.

This year, the PCC is looking to focus on chain logistics, petroleum refining, sugar and pesticides manufacturing, corn milling and trading, and other trading programs that seek to enhance fair exchange in the Philippines, the report added.

Another country that made a significant rise in the ranks is Indonesia. The report found that Indonesia has climbed to 6^th place, one level higher from its 7^th spot record in 2017. The top three economies in antitrust enforcement practices are China, Australia, and South Korea respectively.

AEC News Today reported that Indonesia appointed new competition commissioners as part of its efforts in enforcing antitrust policies. This move also echoed the ASEAN member nations' October move of establishing the Asean Competition Enforcers Network - a program that encourages Asean states to cooperate on competition cases.

Other Asian countries also joined the fight against unfair trade standards as Myanmar eased its foreign investment rules last year and Singapore approved amendments to its competition law.

For its part in the global reinvention of antitrust policies, Vietnam fined companies that engaged in anticompetitive conduct, including Grab. In addition, Thailand finally granted conditional clearance to Glow Energy to imply its willingness in the Asia-Pacific region's goals of providing the trade industry with justifiable practices that will benefit both giants, small, and medium-sized operations.

...the PHL governance report

PHL climbs in World Bank's governance report

By DANESSA O. RIVERA,

GMA News

December 1, 2014

 

The Philippines rose in the World Bank's latest governance report, which bode well for the country's business climate in attracting more investments.

Based on the 2013 Worldwide Governance Indicators (WGI) report the Washington-based multilateral lender released Monday, the Philippines improved its rankings in four out of six indicators, showing that the Aquino administration’s agenda on good governance is creating a positive impact on how the world sees the country.

More than 200 countries and territories were covered by the global surveys for the 2013 WGI report.

It is a positive development that the Philippines has improved on tough indicators, National Competitiveness Council co-chair Guillermo Luz told GMA News Online.

"I agree that our ranking should go up as there's no question that the government has put up a lot of improvements in governance," he said.

"The WGI will be positive for the country as investors, credit ratings agencies always look at governance indicators," he noted.

In an e-mailed statement, Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the country’s achievement in the area of governance complements the gains on the economic front – including maintenance of within-target inflation and stability in the financial system.

"These accomplishments will help attain the goal of a sustainable and a more inclusive growth,” he said.

In latest WGI report, the four indicators where the Philippines registered better percentile rankings in 2013 compared with 2012 were in “voice and accountability,” “political stability and absence of violence,” “rule of law” and “control of corruption.”

Under “voice and accountability,” the Philippines’ ranking improved to 47.9 last year from 46.9 percent in 2012, which means it fared better than 47.9 percent of the countries and territories covered.

Under “political stability and absence of violence,” the Philippines’ percentile ranking rose to 16.6 from 14.2.

Under “rule of law,” the country’s percentile ranking jumped to 41.7 from 36.5.

Corruption control

The biggest improvement was in the area of “control of corruption,” where the Philippine ranking leaped to 43.5 from 33.5.

The better ranking the four indicators is a welcome development for the Aquino administration, Finance Secretary Cesar Purisima said in the same statement.

"International recognition of the Aquino administration’s good-governance agenda is vital in gaining confidence, which is necessary for our quest for even more investments,” he said.

In the area of “regulatory quality,” the Philippine ranking was unchanged at 51.7

It was only in the area of “government effectiveness” where the percentile ranking of the Philippines slipped, particularly from 57.9 to 56.9. The Philippines’ percentile ranking in government effectiveness has, nevertheless, improved since 2010 when it ranked 54.1 in view of improvements in the assessments from data sources used in the WGI.

The Philippines has made substantial leap in its WGI rankings since the start of the Aquino administration took the helm of government in 2010.

The most notable improvements from 2010 to 2013 were in the areas of “political stability” and “control of corruption,” under which the country’s rankings jumped in double-digit terms.

The Philippines’ latest ranking in “political stability” was up by 11.4 percentage points from only 5.2 in 2010. Political stability, as defined by WGI, reflects perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including politically motivated violence and terrorism.

Moreover, the Philippines’ latest ranking in “control of corruption” was up by 21.1 percentage points from 22.4 in 2010. WGI defines Control of Corruption as reflecting perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as "capture" of the state by elites and private interests.

This pace of improvement since 2010 was faster than Indonesia’s 6.4-percentage point jump (to 31.6 from 25.2), Thailand’s 1.2-percentage point improvement (to 49.3 from 48.1), Vietnam’s 5.4-percentage point gain (to 36.8 from 31.4), and Malaysia’s 5.5-percentage point increase (to 68.4 from 62.9). – VS, GMA News

...the PH ranking in 2016

PHL seen in world's top 30% in competitiveness by 2016 – DTI's Domingo

September 19, 2013

GMA News

 

The Philippines is on track to being ranked within the top 30 percent economies in various competitiveness surveys by 2016, a Cabinet official said Thursday.

“We will be in the top 30 percent in most if not all competitiveness surveys... by 2016,” Department of Trade and Industry Secretary and National Competitiveness Council (NCC) public sector chair Gregory Domingo told a press briefing.

For example, Domingo said the Philippines competitiveness ranking in the World Bank's Doing Business report is seen increasing to the 62nd spot “or better” in 2016.

Based on the World Bank's Doing Business report, the Philippines ranks 138th out of 185 countrie

The World Economic Forum, on the other hand, recently moved the Philippines six places up to 59th in its Global Competitiveness Report of 148 countries.

Domingo said that government reforms creating a conducive environment “will be in place” by 2015.

“Once we achieve these reforms, doing business in the Philippines will be easier and that should improve our rankings,” he said.

At the same briefing, NCC private sector co-chair Guillermo Luz said the country is likely to improve its ranking by 20 to 25 places in the next Doing Business report next month.

“We have not been doing well in this report so we spent a lot of time reviewing this report,” he said, adding that the NCC's report sent to the World Bank shows improvement in eight out of the ten indicators being tracked.

Reforms cited include cutting down steps and days in starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes and trading across borders.

Officials maintained that reforms are being undertaken not to improve the country's competitiveness ranking, but to attract more businesses and investments to the country.

“We are putting in reforms for entrepreneurs. If our ranking does not improve but more want to invest here, then we are competitive,” Luz said.

The government wants to seize the Philippines' favorable economic conditions – robust growth as well as healthy payments and fiscal position – by providing a more conducive environment for businesses and investments.

“Our relative competitiveness in Asia and ASEAN [Association of Southeast Asian Nations] is the best it has ever been and will continue to improve,” Domingo said. – SOA/BM, GMA News

 

 

...the PH global banks

8 Philippine banks make it to global rankings list

By Doris C. Dumlao
inquirer.net
12 September 2014

The SM group’s banking arm BDO Unibank Inc. has kept its bragging rights as the Philippines’ top bank in the Top 1,000 Global Banks Ranking 2014 report of British publication The Banker.

BDO, which placed 268th in the latest ranking, led the roster of eight Philippine banks that landed on the global list.

The seven other Philippine banks that made it to the list were Metropolitan Bank and Trust Co. (314th), Bank of the Philippine Islands (382nd), Philippine National Bank (506th), Rizal Commercial Banking Corp. (590th), Security Bank Corp. (680th), China Banking Corp. (681st) and Union Bank of the Philippines (751st).

The banks were ranked by The Banker on the basis of strength of their tier1 or core capital, assets, performance and earnings.

Globally, most of the banks in the top 10 were either from China or the United States, with the exception of one British (HSBC) and one Japanese bank (Mitsubishi UFJ). The top five banks globally were ICBC (1st), China Construction Bank (2nd), JP Morgan Chase (3rd), Bank of America (4th), HSBC (5th), Citigroup (6th), Bank of China (7th), Wells Fargo & Co. (8th), Agricultural Bank of China (9th) and Mitsubishi UFJ Financial Group. (10th).

The Banker’s Top 1000 World Banks ranking has been setting the industry benchmark since 1970, providing comprehensive intelligence about the health and wealth of the banking sector. The report enables investors and clients worldwide to assess the strength and weakness of the banks, identify banking partners for the future and track the big movers and new arrivals in the sector.

 

...the Silicon Valley top talent sources

PH is 6th top source of Silicon Valley talent

ABS-CBNnews.com

Posted at 06/08/2014

 

 

 

Misha Chellam oversees the competition at the Founder Institute's Silicon Valley Sports League in San Francisco, California. Photo by Tim Mosenfelder/Getty Images/AFP

MANILA – The Philippines is the sixth largest source of talent for the global tech companies in Silicon Valley.

An infographic posted on the Bloomberg BusinessWeek website last Thursday listed the top 100 sources of “imported talent,” from both U.S. states and foreign countries.

Mexico emerged as the top talent source for tech workers in Silicon Valley, followed by U.S. states Texas, Arizona, Washington and Illinois.

Bloomberg BusinessWeek noted that while a third of start-ups in Silicon Valley are founded by Indian Americans, the Philippines managed to beat India in the Top 100 list. India ranked ninth, trailing China at No. 7 and New York at No. 8.

The U.S. state of Florida rounded up the Top 10.

According to Bloomberg BusinessWeek, Asian Americans became the majority of the tech workforce in Silicon Valley for the first time in 2010.

In 2012, 51 percent of Silicon Valley’s population spoke a language other than English exclusively at home compared to only 21 percent in the whole of the United States, the magazine said.

 

...the PH credit upgrade 2014

S&P gives Phl another credit rating upgrade
            

By Kathleen Martin

The Philippine Star

May 9, 2014

 

MANILA, Philippines - The Philippines has received a one-notch credit upgrade to BBB “with a stable outlook” from Standard & Poor’s Ratings Services – the highest the country has received so far from any credit ratings firm.

“We raised the ratings because we now believe the ongoing reforms to address shortcomings in structural, administrative, institutional and governance areas will endure beyond the current administration,” S&P said in a statement yesterday. Its previous rating for the Philippines was BBB-.

“In turn, we believe the resulting gains in government revenue generation, spending efficiency and the improvements in public debt profile and investment environment will at least be preserved in the medium term under the next administration,” S&P added.

Malacañang said it felt “gratified” by S&P’s upgrade and expressed hope it would “translate into increased investments and accelerated jobs generation.”

“The Aquino administration is committed to strengthen public institutions and build increased capacity among citizens and communities. This is the path that leads to sustained economic growth and the raising of the Filipino people’s quality of life,” Secretary Herminio Coloma Jr. of the Presidential Communications Operations Office said.

S&P gave the Philippines an investment grade rating in May last year, citing in particular the country’s stellar 7.2 percent growth as well as the reforms being instituted by the Aquino administration.

In its statement yesterday, S&P said that while a possible change of administration after the presidential elections in 2016 “represents some uncertainty for reforms,” the risks have shifted toward “maintaining the impetus and direction of the process, away from a potential reversal or abandonment of advances achieved to date.”

The debt watcher also said the latest upgrade reflects the country’s “strong external liquidity and international investment position” matched by an effective monetary policy framework.

S&P also cited the country’s manageable inflation, with interest rates remaining at low levels.

“The Philippines’ strong external profile is an important credit support. With a long track record of balance-of-payments surpluses, the Philippines has accumulated a substantial foreign exchange reserve buffer,” S&P said.

“That buffer affords an import coverage ratio above prudential norms and low refinancing risk,” the debt watcher added.

The country posted a BOP surplus of $5.085 billion in end-2013, a little more than half of the $9.236-billion surplus recorded in 2012.

At the same time, S&P said it sees foreign exchange-denominated earnings further improving on rising remittances and the bustling business process outsourcing sector.

“An improved monetary policy environment is another rating support. Philippines’ inflation has been low and fairly stable in the face of repeated external shocks, even as lingering structural and institutional shortcomings curb the effectiveness of its monetary policy,” S&P said.

“As a result, inflation expectations are well anchored, enabling a low interest rate environment to take hold,” it added.

But the debt watcher pointed out that the economy’s low income level remains to be a “key rating constraint.” Moreover, the ratings are hampered by a “moderate revenue-generating capacity” because of the narrow tax base and non-compliance. – With Aurea Calica

 

...the PH Infotech uptrend

PH jumps 8 spots in global ICT rankings

 

ABS-CBNnews.com

04/24/2014

 

 

MANILA, Philippines - The Philippines jumped eight notches to 78th spot in the Networked Readiness Index 2014 of the World Economic Forum.

The Philippines had previously ranked 86th on the index for the past three years. The index, which covers 148 countries, assesses an economy's capacity to fully leverage information and communications technology (ICT) for growth and well-being.

The WEF Global Information Technology Report 2014 noted the significant improvement of the Philippines' ranking in the overall index, as well as among ASEAN countries.

"With a significant improvement in its overall score, the country continues its positive trend. The scores of all the 10 networked readiness pillars register an increase. A significant improvement in the perceived efficiency in the country’s legal system and property rights protection drive the political and regulatory environment up to 87th place," the report noted.

Another area where the Philippines showed significant improvement is ICT readiness, with "more affordable (75th) access to ICT infrastructure and better skills (69th), despite the need for higher quality in the educational system."

"Business usage is, as in many other Asian economies, at a more advanced stage (43rd) than individual usage (91st). Progress made in terms of economic impacts registered last year continues this year, moving up eight positions and reaching 48th place. The role of ICTs in fostering innovation by creating new products and services (42nd) and organizational models (28th) is confirmed and contributes to this promising result," the report noted.

However, the Philippines still lagged behind other ASEAN neighbors, such as Singapore (2nd), Malaysia (30th), Brunei Darussalam (45th), Indonesia (64th), and Thailand (67th), in the index.

The Philippines ranked ahead of Vietnam (84th), Cambodia (108th), Lao PDR (109th), and Myanmar (146th) in the index.

Makati Business Club executive director Peter Perfecto said the Philippines has competitive advantages in 11 out of the 54 indicators under the networked readiness index.

These 11 indicators are: availability of latest technologies, venture capital availability, quality of management schools, internet and telephony competition, quality of educational system, use of virtual social networks, firm-level technology absorption, capacity for innovation, extent of staff training, impact of ICTs on new services and products, and impact of ICTs on new organizational models.

Digital divide remains

The Global Information Technology Report 2014 noted that there is little progress in bridging the digital divide between tech-savvy countries and others.

Overall, Finland ranked 1st in the Networked Readiness Index, followed by Singapore (2nd), Sweden (3rd), Netherlands (4th), Norway (5th), Switzerland (6th), United States (7th), Hong Kong (8th), United Kingdom (9th) and South Korea (10th).

On the other hand, emerging economies such China (62nd), Brazil (69th), Mexico (79th) and India (83rd) registered a drop in the rankings, as they struggle to realize their full digital potential.

A key finding of the WEF report is that countries cannot rely only on ICT infrastructure development to become competitive. It noted that the benefits of ICT can be fully realized when a country "implements a holistic strategy aimed at creating conditions for skills, innovation and entrepreneurship to flourish alongside modern infrastructure."

"In addition to the persistent digital divide across countries, governments should also be wary of understanding, identifying and addressing potential internal digital divides so that new opportunities can be created for all and support enhanced social inclusion,” said Beñat Bilbao-Osorio, senior economist at the WEF's Global Competitiveness and Benchmarking Network and co-editor of the report.

...the best manufacturing relocation site

Foreign firms seen relocating to Phl

 

 

By Louella D. Desiderio

The Philippine Star

April 13, 2014

 

 

 

MANILA, Philippines - Several foreign manufacturing companies operating in China and in Southeast Asian countries are eyeing to relocate to the Philippines citing the available high-quality labor here, the Foreign Buyers Association of the Philippines (FOBAP) said.

In a statement from the Philippine Exporters Confederation Inc., FOBAP president Robert Young said two French investors are coming to Manila by the end of the month, while a number of Canadian, Chinese and American companies are visiting the country in mid-May to scout for investment opportunities.

Young said these are mid-sized manufacturers of garments, apparel, shoes, toys and housewares looking to invest around $500 million and employ 1,000 to 3,000 workers.

“These people are financially capable, they are ready, they mean business, they are serious... We are lucky if we get at least 10 initially from all parts of China and other ASEAN (Association of Southeast Asian Nations) countries,” he said.

Companies are moving out of China amid increasing labor unrest resulting in reduced labor pool, as well as higher capital costs.

The group is looking forward to the country becoming a beneficiary of the European Union’s Generalized Scheme of Preferences Plus (EU GSP+) citing that such will make the country an attractive and cheaper source of goods.

The Department of Trade and Industry submitted the Philippines’ application to the EU GSP+, a scheme which will allow more goods to enter the bloc at zero duty, in December.

The EU GSP+ covers 6,274 products which can enter the EU at zero duty.

At present, the Philippines is a beneficiary of the regular GSP, which covers 6,209 products, with 2,442 products subject to zero duty and the rest slapped with lower tariffs.

“Philippine goods will be duty free entry to EU. Also, (with) the forthcoming incentivized/subsidized labor, this makes investments in the Philippines attractive,” Young said.

By having new investments here, Young said FOBAP members which source products for foreign buyers, will have more factories and suppliers to choose from.

“Right now, we are running out of suppliers because in the past five years, they closed shops one by one. If they will come back, our own business will also flourish together with the Philippine economy,” he added.

 

...the rich ASEAN

Southeast Asia’s Richest Get Bigger, Faster

Jake Maxwell Watts

Wall Street Journal

April 8, 2014

People look at the Singapore skyline from the skybridge of a public housing estate. A recent border-security breach has stirred concerns about shoddy policing in the orderly, low-crime city-state.

Reuters

The pool of rich people in Southeast Asia is going to get bigger while the number of poor will shrink, according to Macquarie GroupMQG.AU -0.41%, a financial services provider. That’s good news for businesses eager to take advantage of some of the world’s most attractive emerging markets like Indonesia and the Philippines.

But as Macquarie’s latest study shows, the businesses that could benefit most will not be those selling cheap cars and kids-wear to young people and families. They’ll be the ones offering SUVs and pension funds to professionals and retirees.

The middle income group in Southeast Asia – one that consumer companies have been fighting to tap – is less of an attractive business prospect than its richer counterpart, which is smaller in number but set to grow faster and consume more, says Macquarie.

Create Infographics

Within Southeast Asia’s five largest economies – Indonesia, Thailand, the Philippines, Malaysia and Singapore – are 20 million people who earn more than US$50,000 a year – the “aspirational class,” as Macquarie calls it.

Thanks largely to sustained economic growth in the region, their numbers will rise by 25-50% in the next five to 10 years. At the same time, the middle-income group, which earns more than US$20,000 but less than its aspirational cohort, will grow between 16% and 28%, to between 71 million and 78 million people.

The remaining 374 million, who each earn below US$20,000, is declining overall, but still accounts for the bulk of the region’s population, giving some indication of how far those economies still have to go, particularly in Indonesia and the Philippines, where the “lower” class account for a majority.

Because they’re starting from a lower base, however, Indonesia and the Philippines are set for stronger middle-class growth than Thailand, Malaysia and Singapore, which are already more advanced economies.

That means people near the bottom of the income ladder are getting a little bit richer. In the Philippines, the middle-income group is expected to grow even faster than those in the aspirational one.

Create Infographics

To help those newly wealthy better manage their money, Swiss bank UBS said Tuesday it had hired 88 additional client advisors in the Asia-Pacific region since the start of the year—an 8% increase—to manage the increase in business.

But what about those who still remain among the poorest? The good news is that incomes for all the 455 million people living in Southeast Asia’s five largest economies are likely to go up. Average incomes will rise by 3.6% in the next five to 10 years, according to Macquarie—faster than the global average of 2.6%, but slower than their Indian and Chinese neighbors.busi

 

...the business accent

'Accent' matters: Philippines acquiring 70% of India call centers

            

By Camille Diola

philstar.com

April 7, 2014

 

A building in Manila occupied by a call center. Rajesh Pamnani

MANILA, Philippines — Most voice and call center businesses in India are transferring to the Philippines due to Filipino workers' more "neutral" English acccent, among other reasons, an Indian business group said.

The Associated Chambers of Commerce and Industry of India (Assocham) said that India is losing 70 percent of all incremental domestic business process outsourcing (BPO) businesses, particularly call centers, estimated to be worth $30 billion in foreign exchange earnings.

"Philippines ... has become the top destination for Indian investors, thus the need to reduce costs and make operations leaner is increasingly becoming significant across the BPO industry," Assocham secretary general D.S. Rawat said in a statement Sunday.

Citing Assocham's study, Rawat said that the Philippines has an advantage over India due to its large pool of "well-educated, English-speaking, talented and employable graduates."

Rawat said that only 10 percent of graduates in India are qualified to work in call centers and training could take a considerable amount of time. About 30 percent of graduates in the Philippines, on the other hand, are employable.

"Employees in Philippine call centers speak English fluently with a neutral accent which is what customers look for and that is something missing in Indian accents and that is a prime reason why BPO business is thriving in that country," Rawat explains.

"Cultural proximity to the US together with availability of talented manpower are key reasons as to why BPO companies prefer expanding their operations in Philippines," he added.

The country's IT-BPO sector saw its revenues rise by 17 percent in 2013 as more companies chose to locate and expand their operations in the Philippines.

The industry is estimated to hit revenues of up to $25 billion by 2016, and may account for approximately 10 percent of the nation's gross domestic product, employing about 4.5 million Filipinos.

 

...the PH growth indicator

Philippine imports surge 22% in sign of rising growth

 

Agence France-Presse

Wednesday, March 26th, 2014

 

MANILA, Philippines—Philippine imports surged 21.8 percent in January, their highest level in nearly three years, with imports of raw materials indicating further upward momentum for one of Asia’s fastest growing economies, the government said Tuesday.

It was the biggest rise since March 2011, when imports grew by 21.9 percent, National Statistics Office figures showed.

The Philippines, formerly an economic laggard, grew by a remarkable 7.2 percent in 2013 despite a series of disasters including the devastating Super Typhoon “Yolanda” (Haiyan) in November. Its growth last year was second in Asia only to China, officials said.

Imports surged due to a recovery in Philippine exports such as electronics and garments and increased spending on infrastructure, especially in areas affected by Yolanda, said Rosemarie Edillon, assistant director general of the government’s socio-economic planning agency.

“The economy is definitely going to grow. A huge chunk of these imports are for production: capital goods and investments for the manufacture of other goods,” she told Agence France-Presse.

Imported raw materials are a major input in many of the country’s key exports such as electronics and garments so the surging imports mean even higher exports later, she said.

“These imports are a leading indicator for exports two or three months down the road. If imports in January increase, we will probably see an increase in exports in March and April,” she said.

The increase in shipments of steel, metal and chemical products were also an indication of the major construction efforts being undertaken, both to upgrade infrastructure and to rebuild the damage caused by the disasters, she added.

Imports in January hit $5.757 billion, up 21.8 percent from the same period last year, the statistics office said.

This resulted in a trade deficit of $1.376 billion in January, up 92 percent from the same period in 2013.

Socio-economic Planning Secretary Arsenio Balisacan also said in a statement that “this positive (import) performance may be reflective of the optimistic outlook of businesses on their own operations”, in the second quarter of the year.

China was the biggest source of imports to the Philippines, accounting for 14.7 percent of the total, with the United States in second with 10.6 percent, the statistics office added.

 

...the PH growth punch

Philippines jabs for growth after Yolanda knockout

 

By Carmina Reyes,

ABS-CBN News

03/26/2014

 

 

MANILA – Like its boxing icon Manny Pacquiao, who was shockingly knocked out by an opponent but found redemption in his next fight, the Philippines should bounce back in 2014 after a deadly blow by typhoon “Yolanda” last year.

Three foreign institutions in separate reports said they expect the Philippines to maintain a strong growth rate this year, boosted by the government’s infrastructure projects and reconstruction program in the aftermath of the typhoon.

But for the Philippines to finally advance to another boxing division like Pacquiao, the Philippines must quicken its pace of project implementation.

“Our Philippines research highlights that the greatest single threat is disappointment with the administration due to slow pace of implementation,” said Australia’s Macquarie, which two years ago had set up with Philippines’ Government Service Insurance System (GSIS) a AUS$625-million fund to invest in infrastructure projects in the country.

Macquarie sees the Philippines maintaining a 6%-6.5% growth rate this year, while World Bank forecasts growth domestic product (GDP) growth rate at 6.6 percent.

DBS, Southeast Asia’s largest bank by assets, even raised its GDP growth forecast to 6.6% for 2014 from the previous estimate of 6.5%.

“The economy is largely unhurt from the devastating typhoon at the end of last year. If anything, the reconstruction efforts taking place in the first-half of 2014 will likely provide another boost to GDP growth momentum,” DBS economist Gundy Cahyadi said.

The country’s full-year GDP in 2013 grew 7.2%, higher than the government’s expectations of 6-7%, despite being struck by the one of the strongest typhoons to ever make landfall.

Construction of the 15-kilometer Metro Manila Skyway 3 project has started, but there are other transportation infrastructure that need to be implemented: the NLEX-SLEX connector road of the Metro Pacific group, and the Integrated Transport System (ITS) terminals.



World Bank country director Motoo Konishi said the $8 billion reconstruction program launched recently by the government will reduce the negative impact of typhoon Yolanda.

“The disruption to economic activity in the affected areas will pull down growth through lower consumption, but a speedy implementation of the Reconstruction Assistance on Yolanda (RAY) program would partially offset the decline in consumption and keep GDP growth strong at 6.6% in 2014 and 6.9% in 2015,” World Bank said.

Punches and headbutts

World Bank, however, warned that a slower global recovery and the end of quantitative easing in the US could release a torrent of punches to the economy.

Slower growth in high-income countries and in China would translate into lower demand for Philippine export products. China accounted for 12% of Philippine exports in 2012.

As to how America’s quantitative easing could impact the Philippines, here’s a quick recap: The US Federal Reserve began its asset buying program in November 2008, purchasing US Treasury notes and mortgage-backed securities, and issues credit to the banks' reserves to buy the bonds.

The purpose of this expansionary monetary policy is to lower interest rates and spur economic growth.

The program is now on its sixth year and since January, instead of buying $85 billion a month in bonds, as it has been doing since September 2012, the Fed has lowered its purchases to $75 billion in bonds each month.

The Fed is expected to gradually cut back on the bond purchases throughout this year so it can completely wind down its stimulus program. The rise in rates will likely pick up pace when the Fed finally raises its key overnight lending rate, which has been near zero since late 2008.

Last week, Fed Chair Janet Yellen, in a press conference following the first policy meeting that she chaired, said the Fed will probably end its bond-buying program next fall.

Kendrick Chua, World Bank senior economist for the Philippines, said the scaling back of quantitative easing in the US could result in higher borrowing costs in the Philippines.

This can impact on those who borrowed money to purchase houses or real estate assets. In case the interest rates rise sharply, some people may not be able to pay the amortizations and their properties may end up getting foreclosed.

The Bangko Sentral ng Pilipinas (BSP) is scheduled to hold a policy meeting March 27. Last week, BSP Governor Amando Tetangco told reporters an "early" and "gradual" adjustment in monetary policy stance rather than "discreet movements" would be less disruptive to businesses.

The BSP’s overnight rate has been at a record low of 3.5% since October 2012 when it was cut by 25 basis points.

Chua said that while businesses and households may be affected, the overall impact on the Philippines is expected to be manageable.

"The country continues to benefit from strong macroeconomic fundamentals, characterized by low and stable inflation, healthy external balances, and improving government finances. These strong fundamentals will continue to shield the economy," Chua said.

Going the distance: Tourism, Sciences

Will be the Philippines mirror Pacquiao, who started as a brawler, but later emerged as a skilled ring warrior?

To remain competitive, Macquarie said the Philippines must avoid or at least minimize the tendency of losing competitiveness in one segment before building competitiveness in other areas.

“The Philippines should improve competitiveness in a number of key agribusiness and metals/mining sub-sectors while maintaining and improving competitiveness in electronics,” Macquarie said.

“In addition to merchandising trade, the Philippines has in our view a significant untapped potential in services exports beyond BPO.”

In the context of IT-BPO (business process outsourcing), the industry continues to expand rapidly. IT-BPO revenues increased by 17% in 2013 and have reached $15.5 billion.

Although the growth rates are likely to taper-off, there is no doubt that the industry has multiple avenues of expansion.

The challenge is to continue diversifying away from voice and into faster areas of growth such as: back-office IT services; engineering & healthcare services; and higher value-added applications, such as animation, Macquarie said.

While the Philippines control almost 30% of the global voice BPO market, the country’s overall share of IT exports remains at around 1%, with clearly significant room for growth.

Fortunately, the current administration, which will be in power until June 2016, remains popular, according to Macquarie.

“Although net ratings are down somewhat, they remain considerably ahead of two other long-lasting administrations and there is an overall feeling of popular consensus for reform," Macquarie said.

 

...the PH new upgrade

Phl due for new upgrade – BSP

              

By Kathleen A. Martin

The Philippine Star

 March 12, 2014

 

 

MANILA, Philippines - The Philippines may get a further credit rating upgrade as early as this year on the back of the economy’s rosy prospects, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said yesterday.

“Given that one of the credit rating agencies has given us a positive credit outlook and given that Fitch (Ratings) will also provide some positive review after they came here, it’s possible that we can have another upgrade,” Guinigundo said.

The Philippines enjoys investment grade ratings from the world’s three major credit rating agencies which all cited the strong growth achieved by the economy, improved governance, and structural reforms being put in place by the current administration.

Guinigundo said Fitch has already concluded its annual visit and assessment of the country last month. The other two rating agencies are expected to conduct their reviews within the first half of the year.

Fitch in March last year upgraded the country’s credit rating to ‘BBB-’ with a stable outlook from junk, while Standard & Poor’s in May gave the Philippines a ‘BBB-’, also with a stable outlook.
Moody’s Investors, delivered its Baa3 in October with a positive outlook.

The positive outlook means another upgrade may be on the horizon for the country in the next 12 to 18 months, Guinigundo said.

Guinigundo said that the Philippines is deemed “better” than other similarly-rated or higher-rated countries in the region.

“In fact there are many higher-rated jurisdictions in Asia but we enjoy a lower debt spread and lower CDS (credit default swap) spread which means the market already priced in a possible upgrade,” Guinigundo said.

“It can also be a recognition that risks are much lower in the Philippines because of the good macroeconomic fundamentals,” he added.

The economy expanded by 7.2 percent last year, while inflation averaged three percent. The country also boasts of a balance of payments surplus and a sound banking system.

“Our external to GDP (gross domestic product) ratio has also been coming down significantly in the last 10 years not only because the economy has expanded in the last 10 years but also because the national government has been prepaying its debts,” Guinigundo explained.

“Remember that in the past, this was the issue, the challenge of the Philippine economy – reducing the debt to GDP ratio,” he added.

 

...the richest Filipinos

10 Filipinos among world's billionaires

by Rappler.com
03/04/2014


 

MANILA, Philippines – Ten Filipino businessmen with a combined net worth of US$40.1 billion made it to Forbes Magazine's prestigious list of world billionaires for 2014.

The richest Filipino – 89-year-old Henry Sy Sr. – landed on 97th place with a net worth of $13.2 billion. Sy, who chairs one of the Philippines' largest family conglomerates SM Investments Corporation, ranked 68th in 2013.

Lucio Tan, 79, the second richest in the Philippines, moved up to the 227th spot from 248th last year, with a net worth of $6.1 billion. Tan owns Asia Brewery, maker of popular Beer na Beer, and a stake in Philip Morris Fortune Tobacco.

Carrying a net worth of $4.7 billion, 61-year-old Andrew Tan came next at 319th place, up from 345th in 2013. Tan is the owner of Alliance Global Group, which is engaged in food and beverage (Emperador Distillers), real estate (Megaworld) and gaming (Travellers International).
The other Filipinos who made it to the list:

• #354 Enrique Razon Jr., 54, net worth $4.2B (port: ICTSI, and casino: Bloomberry Resorts)
• #388 John Gokongwei Jr., 86, net $3.9B (real estate: Robinsons Land, food manufacturing: URC, and airline: Cebu Pacific)
• #483 David Consunji, 92, $3.3B (construction, power and mining: DMCI Holdings)
• $764 George Ty, 81, $2.3B (banking: Metrobank, and power: Global Business Power)
• #1046 Tony Tan Caktiong, 61, $1.7B (fast food: Jollibee)
• #1154 Robert Coyiuto Jr., 61, $1.5B (insurance: Prudential Guarantee, and car distribution: PGA Cars)
• #1565 Andrew Gotianun, 86, $1B (real estate: Filinvest Development)

See how their net worths changed from 2012.




Forbes' 2014 world's richest list includes a record 1,645 billionaires, up from 1,426 in 2013.

Together, the billionaires have a net worth of $6.4 trillion, up from $5.4 trillion last year.

Microsoft's Bill Gates is back on top as the richest person in the world. With a net worth of $76 billion, the technology guru beat telecom mogul Carlos Slim Helu, now on the second spot, with a net worth of $72 billion. – Rappler.com

...the hotel growth area

International luxury hotel operators gravitate to PH

By Tessa R. Salazar
Philippine Daily Inquirer

Saturday, March 1st, 2014

TO FURTHER accommodate the growing number of visitors, more hotels are slated to be constructed within Newport City by 2016.

Marco Polo Hotels, Ascott The Residence, Maxims Genting, City of Dreams, Solaire Resort and Casino, Hyatt, Marriot Manila, Shangrila Hotels and Resorts, Conrad Hotels and Resorts, The Westin Philippine Plaza Manila, Hilton, Sheraton Hotels and Resorts.

 

These are just some of the international luxury hotel operators that would either come into the country or experience boom times from 2014 to 2017, as forecast by CBRE Philippines during a Jan. 23 press briefing in Makati. It also reported that luxury hotel accommodations would play a major role in the hospitality sector, and that MICE (meetings, investments, conventions and exhibits) locations would pick up their businesses, and gaming establishments would draw in more foreign guests.

 

Property analyst Enrique M. Soriano III said, “Retail and hotels will likely post solid growth as employment and spending in the domestic front continue.”

 

The Colliers International market overview (for 4Q 2013) predicted that in the next three years, up to 4,300 rooms would be “delivered” annually, the highest number since 1988.

 

“Meanwhile, local real estate firms are entering the hotel and leisure sector, as SM Prime Holdings, Ayala Land and Robinsons Land introduce their new projects slated for completion in the next three years,” noted Colliers International Philippines Research. It added that last year, 1,372 new hotel rooms opened in Metro Manila, bringing the total room inventory to 17,517.

More branches expected

 

Jones Lang La Salle, in its JLL 2014 property market monitor, singled out Robinsons Land Corp. (RLC), which recently opened its seventh Go Hotel branch in Iloilo City. This one has 167 rooms

JLL forecasts more of such branches to be built over the next few years as RLC has offered the brand for franchise. In particular, Singapore-based Vanguard Hotels Pte. Ltd., in partnership with Roxaco Land Corp., is set to construct at least five new branches in the next two years.

 

JLL also cited residential property developer Vista Land & Lifescapes Inc., which plans to venture into hotel and resort development. According to the firm, the planned venture is mainly supported by the strong performance of the tourism industry. The firm has formed a new unit that would focus on the development of hotels and resorts, likely starting in 2015.

 

40% at Entertainment City

 

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Colliers International Philippines’ comprehensive report indicated that of the 4,120 rooms to be completed in 2014, more than 40 percent would be concentrated within the Pagcor Entertainment City, such as Belle Grand City of Dreams (920 rooms) and the surrounding Mall of Asia Complex, such as Radisson Hotel (500 rooms) and Tune Hotel (204 rooms).

 

It also revealed a new player in the hotel and leisure market—Shanghai Jin Jiang International Hotels—one of the leading hotel groups in China, with two projects slated for turnover in 2014, the Jin Jiang Inn Ortigas (95 rooms) located beside Richmonde Hotel and the Jin Jiang Inn Greenbelt (70 rooms) located opposite New World Hotel Makati.

 

“As the government strives to reach its foreign tourist arrivals target of 10 million in 2016, local real estate firms are joining the hotel and leisure sector to augment the accommodation needs of foreign travelers,” reported Colliers.

 

It added that the Carlson Rezidor Group had partnered with the SM Hotels and Conventions Corp. (SMHCC) to launch the 150-room Park Inn by Radisson in Clark, Pampanga. This project is set for completion in 2016.

 

Colliers also observed that Ayala Land, through its hotel and resort corporation, had launched two new Seda hotels in its emerging mixed-use developments in Vertis North and Circuit Makati, both of which would be operational in the next three years.

 

RLC, for its part, aims to complete 1,200 rooms in its portfolio by 2014 by launching three Go Hotels—one in Ortigas Center, another in Butuan and one in Iloilo.

 

Decreased layovers

 

CBRE reported an 11-percent growth rate of tourist arrivals as of October 2013 (year-on-year) and possibly exceeding 4.5 million for the whole year.

 

Despite the increase, it estimates that the average hotel occupancy rate dipped from 67 percent in 2012 to 64 percent in 2013.

 

CBRE said: “This may be attributed to the increasing number of international flights to airports outside of Manila, thereby reducing the need to layover in Manila and easing the access to other major tourist destinations in the country like Boracay Island. The Mactan Cebu International Airport Authority, manager of the second largest airport in the country, reported a 15-percent increase year-on-year in the number of international flights at the airport from January to October this year from 3,972 to 4,581 flights.”

 

Hotel rates

 

Colliers also reported that growing interest in the Philippines as a tourist destination and a business investment option has been driving hotel room rates to consistently increase in Metro Manila.

 

It pointed to the trend that average five-star room rates had grown by 3.7 percent to $333 per night in the second half of 2013, versus the 1.1-percent increase in the first half of that year. Four-star room rates increased slightly by 1.1 percent in the second half to $273 per night.

 

On the other hand, three-star room rates continued to improve significantly at 9.5 percent half-on-half, 250 basis points higher than the 7-percent growth posted in the last period. This can be attributed to the increasing number of local and foreign tourists seeking quality accommodation at affordable prices. Meanwhile, corporate rates grew considerably across all classifications at an annual average of 15 percent.