Tuesday, February 12, 2013

...the PH growth forecast 2013 (Global Source)


US think tank raises PH 2013 growth forecast

 02/11/13
 
 
MANILA, Philippines - A US-based think tank has raised its growth forecast for the Philippines this year, as it expects the economy to be fueled by higher government expenses, election-related spending and more private investments.
 
In a research note, Global Source said the Philippines' gross domestic product (GDP) may grow by 6.1% in 2013, higher than its previous estimate of only 5%.

"We hinge our higher-than-consensus growth forecast on the domestic macro policy environment continuing to be supportive particularly in terms of higher government spending, further expansions in private investments, and election spending aiding consumption growth," it said in the report.

However, the forecast for 2013 is lower than the Philippines' 6.6% GDP growth last year.

"We expect the pace of growth to slow a bit in 2013 as weak external growth and a strong local currency weigh down exports," the think tank said.

Global Source identified several factors that can drag down the Philippines' growth, such as deeper recession in Europe and sharper fiscal contraction in US, and China's failure to pick up the slack.

"Tensions in the Middle East may again flare up reversing the forecast downtrend in oil prices. Internally, remaining bureaucratic bottlenecks may again stall government spending keeping a lid on investment ratios and souring investor moods," it added.

The Philippines may need to rely on domestic sources of growth in the near term to offset these external shocks.

"The increasingly upbeat local mood suggests that private players are ready to act. Already, major companies active in the Philippine business scene are observed to be locking in cheap money of fairly long maturities (10 to 15 years) and keenly looking for expansion opportunities," Global Source said.

 

Monday, February 11, 2013

...the 2012's Deals of the Year

Euromoney cites PHL global peso bonds as one of 2012's Deals of the Year




GMA News
February 11, 2013
 
 
The Philippine global peso bonds launched last November was one of Euromoney's Deals of the year, a recognition that the Philippines is one of the safest emerging emerging markets for investors, the Department of Finance said Monday.
 
 

"We welcome this award as another vote of confidence in the Aquino administration's good governance reforms, and a continued nod at the effectiveness of our proactive liability management agenda," Finance Secretary Cesar Purisima noted in a statement.

The US SEC-registered bond offering was part of government efforts at managing Philippine foreign debt. Issued in peso, but redeemable in US dollars, the bonds helped reduce the foreign exchange risk in the country debt portfolio. — VS, GMA News

 

...the Asia's next Aerotropolis

Clark International Airport as Asia’s next ‘aerotropolis’


Published in Philippine Daily Inquirer


Clark International Airport. INQUIRER FILE PHOTO



MANILA, Philippines–With the world’s economic center of gravity rapidly moving eastward, there is increasing urgency to develop Clark International Airport into an aviation hub, and this is the focus of a two-day conference to be held this month at the Clark Freeport Zone in Pampanga.

“The Case for Asia’s Next Aerotropolis” is the theme of the Clark Aviation Conference 2013, a trade gathering that will examine Clark’s compelling case as an aerotropolis, an idea in community planning where airports serve as the center for new cities growing around them.

The conference, being organized by Clark International Airport Corp (CIAC) in partnership with Global Gateway Logistics City, takes place Feb. 21-22, 2013, at the Widus Convention Center in Clark Freeport Zone. It coincides with the annual Hot Air Balloon Fiesta.

“The event will highlight Clark International Airport’s critical role in easing air traffic congestion in Manila and driving economic expansion in Central Luzon. It will also identify infrastructure and policy developments at Clark Freeport Zone that are designed to attract airport-related businesses and investments,” said CIAC president and CEO Victor Jose Luciano.

“More importantly, the conference is a call for the full development of Clark International Airport as an aviation nerve center in the light of the economic growth in Asia.”

Heads of government agencies—including Tourism Secretary Ramon Jimenez, Bases Conversion and Development Authority president Atty. Arnel Casanova and Trade Assistant Secretary Fe Agoncillo-Reyes—and private-sector representatives will look at Clark’s prospects as an aviation and investment destination in Asia, even as they examine pressing aviation and tourism concerns and propose sustainable and long-term solutions.

Keynote speaker is Greg Lindsay, the US-based co-author of the bestselling book, Aerotropolis, The Way We’ll Live Next. Other speakers include Tourism Undersecretary Daniel Corpuz, John Forbes of the Joint Foreign Chambers of Commerce, former Tourism Secretary Narzalina Lim, and Capt. Benjamin Solis, adviser of CIAC.

The convention targets international investors, logistics and supply chain executives, tourism stakeholders, airline officials, import and export managers, and members of the academe. They are expected to gain insights into Clark’s potentials as an aviation and investment destination in Asia and understand better its increasing role in national and regional development.
 
 

...the Jollibee country

How Jollibee beat McDonald's in the Philippines

 

02/11/2013
 
 
 
MANILA, Philippines - With over 2,000 branches around the country, there is bound to be a Jollibee anywhere you go in the Philippines.
 
Jollibee's continued success in the Philippines and the company's aggressive expansion overseas is making international headlines. Jollibee's Filipino-Chinese founder Tony Tan Caktiong is now on the cover of Forbes Asia's February issue.



Tan talked to Forbes Asia about how he started his business with an ice cream parlor and how his restaurant with a bumble bee mascot managed to beat American fastfood giant McDonald's in the Philippines.

After opening the ice cream parlors in 1978, Tan said he decided to shift from ice cream to hamburgers when he saw customers wanted sandwiches.

However, the entry of McDonald's in the Philippines in 1981 was a cause of concern for the fledgling fastfood chain.

Tan recalled how they went to the US to study McDonald's operations, and studied how Jollibee compared to the American fastfood chain.

"We found that they excelled over us in all aspects – except product taste... It suited Americans but not really Filipinos. Our (food) tends to be sweeter, more spices, more salty. We were lucky as it was not easy for them to change their product because of their global image," Tan told Forbes Asia.

Jollibee worked hard to compete with McDonald's, from advertising to stores to service.

And their hard work paid off. "We were surprised customers ranked us higher in courtesy and service style. Maybe they felt we were warmer? And then they liked our marketing, promotion and advertising better. And then customers kept just coming back," he said.

One advantage Jollibee had was offering hamburgers and other fastfood with a distinct Filipino flavor. For instance, Jolly Spaghetti has a sweet meat sauce with hotdog slices.

Eventually McDonald's took the cue from Jollibee and offered McSpaghetti and other similar products aimed at the Filipino market.

Forbes Asia said Jollibee now controls 18% of the market in Metro Manila, handily beating McDonald's which is said to only have 10% share of the market.

Jollibee now operates the country's largest food service, with a total of 2,040 stores as of end-September. The firm's stores include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King.

For its foreign operations, the company has 541 stores as of end-September. Aside from the Jollibee foodchain, stores abroad include Yonghe King, Hong Zhuang Yuan, San Pin Wang, Red Ribbon, Chowking, and Chow Fun.

But what is the secret to Jollibee's phenomenal success?

"We keep things simple and fill a simple need: very tasty food at a reasonable price. To this day I repeat to my people what my father told me – you have to make sure your food tastes really good," Tan said.

 

...the resilient countries

RP Among ‘Resilient’ Countries – MasterCard

 
The Philippines' robust economic growth has made it among the ''resilient'' countries in the Asia Pacific region and the Middle East, the worldwide survey revealed.

In its latest Insights Report, MasterCard survey revealed that the Philippines along with Japan and Hong Kong ranked highest on the index as ''relatively resilient.''

The MasterCard survey assesses the extent to which a slower growing global economy and specifically a slowdown in merchandise exports, will impact the resilience of consumer confidence in key markets in Asia Pacific and the Middle East.

Following the three nations are Singapore, Saudi Arabia and Kuwait. UAE was ranked lowest or ''very vulnerable.''

The index and its accompanying reports do not represent MasterCard's financial performance, the company said.

''Markets with the highest level of consumer confidence, as well as those that are most resilient to a slowdown in merchandise exports have the strongest potential to weather the economic downturn,'' MasterCard said.

''At the opposite end of the spectrum, markets with very low consumer confidence and those that are also most vulnerable to a slowdown in merchandise exports have the least potential,'' the company added.

Yuwa Hedrick-Wong, MasterCard global economic advisor and co-author of the report said the strong growth in global demand that they saw during the decade of 2000 to 2010 was unique in many ways.

Hedrink-Wong said this was underpinned by an unprecedented increase in global liquidity which provided a tremendous boost to the export-oriented economies in Asia/Pacific and Middle East.

''But growth in global demand will be a lot weaker than before. Putting it bluntly, a repeat performance is highly unlikely,'' he said.

For many markets in the Asia Pacific and the Middle East, especially the export-oriented ones, Hedrink-Wong said the outlook of a slower growing global economy will mean weaker demand for exports.

''Their ability to leverage domestic demand, especially private consumption, will be critical in supporting stronger economic growth. The extent to which they may succeed will in turn depend on how resilient consumer confidence is in these markets,'' he added.

The report, meanwhile, found Hong Kong, Indonesia, Thailand, Philippines, India and China to be well positioned with the strongest potential to leverage private domestic consumption to support economic growth.
 
 

...the PH stock market

PSEi breaches 6,500 level for the first time

 

02/11/2013
 
 
The PSEi has had 15 record highs so far this year.
 
 


MANILA, Philippines (3RD UPDATE) - The Philippine Stock Exchange index (PSEi) reached another milestone on Monday morning, breaching the 6,500 level for the first time.

The PSEi reached 6,500.08 up 0.64% or 41 points as of 10:30 a.m., amid a traditional Chinese lion dance performance on the trading floor to celebrate the Lunar New Year.

As of 12 noon, the main index pulled back, ending the morning session at 6,482.10, up 0.36% or 23 points.

However, the main index's rise has some wondering if it has risen too much too fast. The PSEi has had 15 record highs so far this year.

The PSEi has already hit the 6,500 level this month, when earlier online brokerage COL Financial's target was 6,500 by the end of this year.

COL Financial head of research April Lee Tan said investors looking for higher yields continue to turn to stocks as interest rates will likely remain low.

"If you look at it based on technicals, it does look like it did rise quite a bit too fast. There is reason to be concerned because of valuations. If we compare the PSEi's valuation today compared to the valuations in the past 10 years, we are really at the high end of the range. We're also trading at the highest valuations compared to our regional peers, relative to US and Europe. I guess the surprise is why hasn't it corrected. I think one of the reasons we have not corrected is significant liquidity flows.

We're seeing a continuation on the risk on trade," she told ANC.

Tan sees a correction in the market soon. "Maybe we will see a correction because people who made money could take profits but it's not going to be a reversal, but just a correction. We're seeing 6,100 as a support level, technically," she said. - With ANC

 

...the world's best island resorts

Amanpulo among travel website's best island resorts

 

02/11/2013
 
 
LONDON, United Kingdom - Owning your own idyllic island may be out of reach financially, but online boutique hotel experts Mr & Mrs Smith have come up with 10 exotic locales where you can feel as though you're the king of your own small world.
 
Reuters has not endorsed this list:

1. Romantic retreats

Matangi Private Island Resort, Fiji Islands, Fiji

Go all Robinson Crusoe with a hint of romance at Matangi Private Island Resort in Fiji where some of the 12 villas nestle in the tops of the trees (others hug the golden beach). Add a serene seaside spa and some dreamy diving and you have all the elements for a chic castaway stay. You definitely won't need to fend for yourself though: the kitchen crew can pack a picnic basket for the two of you to enjoy on heavenly Horseshoe Bay.




2. Eco indulgence

Song Saa Private Island, Koh Rong Islands, Cambodia

Australians Rory and Melita Hunter built Song Saa Private Island in Cambodia both to sustain the local community and provide important reef restoration and education programmes. So far, so green. If you then imagine rustic bures with minimal luxury, you would be so, so wrong. Thatch and stone villas, all with private pools, are scattered over the water and in the jungle. And with just 27 on twin private isles, discretion is assured. Snorkel on the reef, have a seafood feast under the stars or let expert hands soothe you at Ila Spa Sanctuary.



3. Underwater adventure

Amanpulo, Pamalican Island, Philippines

Finding a secluded patch of pure white sand isn't hard at Amanpulo boutique hotel on private Pamalican Island. Of the 40 rooms and 11 villas, 29 are Beach Casitas just steps from the water where reefs harbour jewel-bright coral and flitting fish. Inspired? The on-site PADI dive centre offers introductory dives, certification courses and trips to nearby dive sites where you can spy stingrays, splash with sea turtles and even find Nemo. For those who like to combine water with other liquids, the Kawayan Bar is a pontoon where you can lounge with a cocktail between bouts of duck-diving.




4. Ultimate escape

Tikehau Pearl Beach Resort, Tuamotus, French Polynesia

Barefoot luxury doesn't come much better than this sun-kissed coral atoll, especially for those whose partners are obsessed with keeping in touch with work/friends/the rest of the world. At just-remote-enough, 37-room Tikehau Pearl Beach Resort in the Tuamotus the internet connection is sketchy. There'll be no excuses for not sprawling on the rose-pink sand, lounging by the lagoon at Tianoa Bar with a piña colada or gliding down the stairs of your Premium Overwater Bungalow into the warm, clear water. This being French Polynesia, the open-air Poreho Restaurant has a menu infused with Gallic classics and local specialties.





5. A-list antics

Parrot Cay by Como, Turks & Caicos, Caribbean

Maybe you'll spot Demi Moore downward dogging at the Shambala spa or Paul McCartney reading by the pool because celebrities love Parrot Cay by Como hotel in the Caribbean, the only property on a sprawling thousand-acre island. Even if you don't, you'll feel star struck at this elegant 70-room sanctuary where whitewashed villas have draped four-posters and the infinity pool's sunloungers overlook the beach. The ultimate in luxury though are the six Parrot Cay Estates, ranging from three to 11 bedrooms, situated away from the main resort and owned by the likes of Bruce Willis and Donna Karan.



6. Hiding out

Cayo Espanto, San Pedro, Belize

A tiny speck of land in the Caribbean Ocean off San Pedro is home to seven uber-private villas at Cayo Espanto retreat in Belize. Each is hidden within palm trees with a private pool (except Casa Ventana, which is set out at sea on its own pontoon), hammock for day-long siestas and a 'houseman' who can chase up just about anything your castaway heart desires. Chef Patrick Houghton is a genius with a culinary wish-list and meals can be served anywhere on the island, including secluded stretches of sand where you won't see a single soul.



7. Serenity-meets-sociability

Naladhu, South Malé Atoll, Maldives

One moment you want seclusion, the next to be entertained people-watching by the pool; if so, Naladhu hotel in the Maldives is for you, with just 19 villas with either a lagoon view or one of the ocean. All have a breezy Hamptons vibe, with semi-alfresco baths and private pools for solo splashing. Outside, relax in a shady beach cabana or dine à deux on the sand. Naladhu is one of several small islands owned by Anantara and, should you want to mingle, boat transfers head to nearby Anantara Dhigu and Veli, where a spa and eight restaurants beckon.



8. Nature lovers

Frégate Island Private, Seychelles

While all private isles boast sand and lapping tides, many are too small to give you a taste of the wild life. Not if you venture to Frégate Island Private in the Seychelles. This chunk of granite languishing in the Indian Ocean is craggy, covered in tropical vegetation and home to fabulous flora and fauna. When you tear yourself away from your private pool deck (there are just 17 villas), wander the island's seven sublime beaches or hike trails looking for ultra-rare magpie robins and the Aldabra giant tortoise. There's jaw-dropping diving, too, and Frégate has a PADI centre.




9. Civilised wilderness

Lizard Island, Great Barrier Reef, Australia

Leave your wallet and credit card in your room at Lizaru.s.d Island boutique hotel on the Great Barrier Reef. Here, almost everything from daiquiris on the deck at Osprey's to snorkelling gear for underwater safaris is included in room rates. Forty villas are dotted around the huge island which has 27 romantic beaches, offshore reefs and swaying eucalypts. Splodge by your private pool or ask the staff to pack a picnic basket, borrow a motorised dinghy and mask and snorkel, and head for a deserted beach for all sorts of cavorting. The spa and diving here are world-class, too.



10. Glamping it up

Amanwana, Moyo Island, Indonesia

Idyllic Amanwana hotel on Moyo Island is just a short flight from Bali but remote enough to feel as though you've travelled far, far away. Twenty glam safari-style tents - some nestled in the jungle, others by the shore for quick bed-to-beach dashes - have dark wood flooring, romantically netted beds and yards of white divans for the idle hours. Take time out to be handled with care at waterside Jungle Cove Spa. You can also get close to nature since Moyo is a reserve. Spot shy Rusa deer darting in the forest or mask up to snorkel with sea turtles.