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BSP expects entry of more foreign banks

Economy

Feb 182014

MANILA, Philippines – The country may see the entry of more foreign banks soon as the Bangko Sentral ng Pilipinas (BSP) readies its proposed amendments to the law that will pave the way for the liberalization of foreign banks’ entry. BSP Governor Amando M. Tetangco Jr. told reporters yesterday the central bank is preparing the proposed amendments to RA 7721 or the law governing the entry and operations of foreign banks in the country. “We’re looking at that and we will be presenting our proposal to Congress, which should basically entail the liberalization of foreign bank entry,” Tetangco said on the sidelines of Euromoney’s Philippines Investment Forum 2014. The act liberalizing the entry of foreign banks in the country, approved in 1994, only allows the entry of 10 foreign banks. Tetangco said the form of liberalization needed – whether increasing the figure or completely removing the limit – will still be assessed. “That’s something we need to discuss but the overall thrust is to liberalize our regulations with respect to the entry of foreign banks,” Tetangco said. “There are different ways and we are looking at those possibilities now,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Philippines is gearing up for the Association of Southeast Asian Nations Economic Integration set to be launched by 2015. Part of this is the financial integration which will give the region’s banks a bigger market and more opportunities for growth. Tetangco said the country needs to amend RA 7721 Read More …

Balikbayan travellers down 6% in 2013

Economy

Feb 182014

MANILA, Philippines – The number of overseas Filipinos who visited the Philippines last year dropped six percent to 203,612 from 215,943 in 2012 data from the Department of Tourism (DOT) showed. A DOT official, who requested anonymity, said there has been a noted drop in the volume of inbound overseas Filipinos or balikbayans since February last year. “We cannot actually pinpoint what caused the drop in the number of overseas Filipinos who visited the country last year. But with all the calamities that we had last year, most probably some of these Filipinos have opted to just donate their travel fund to the victims,” the official said. The DOT exec, however, said there have been continuous efforts to lure more Filipinos, particularly those holding Philippine passports but are permanently living abroad, to frequently visit the country. “Our Tourism Promotions Board (TPB) has Pinoy Homecoming Porgrams,” the source noted. Tourism Secretary Ramon Jimenez Jr. said they hope to engage more Filipinos in appreciating the value of tourism in the country’s inclusive growth agenda and encourage them to take an active role in growing the industry by being better hosts to both local and foreign tourists. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He said the DOT continues to further boost the potential of the tourism industry as a major economic driver, specially as the country is in the middle of rebuilding and moving forward from recent natural disasters. In 2013, total foreign tourist arrivals went up nine percent to Read More …

Phl to benefit from EU-Asean open skies

Economy

Feb 152014

MANILA, Philippines – The proposed “open skies” agreement between the European Union (EU) and the Association of South East Asian Nations (ASEAN) is expected to result in higher standards of safety and regulation as well as more reasonable fares for airline passengers. Transportation Secretary Joseph Emilio Abaya said the ASEAN would have to first achieve a single aviation market as part of the ASEAN integration in 2015 before entering into a comprehensive air agreement with the EU. “It is still a long way. This is still in its infancy stages. Immediate goal is to first achieve an ASEAN single aviation market. This should be achieved as part of ASEAN 2015,” abaya said. According to Abaya, the proposed “open skies” between EU and ASEAN would translate to higher safety standards for airlines as well as cheaper fares for airline passengers. “This will allow competition, higher standards of safety and regulation and more access to flights and more reasonable fares for our people,” he said. Civil Aeronautics Board executive director Carmelo Arcilla said the EU has been helping the Asean achieve a single aviation market through a project called the Asean Air Transport Integration Project (AATIP) that serves a venue for exchange of info on practices within ASEAN and the EU and capacity building for aviation authorities of ASEAN. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The proposed EU-Asean comprehensive air transport agreement is a welcome development and is something to look forward to especially so, that the trend in Read More …

IPOPHL vows to get Phl out of USTR watchlist

Economy

Feb 152014

IPOPHL vows to get Phl out of USTR watchlist

MANILA, Philippines – As the Philippines continues to be kept out of the Office of the United States Trade Representative’s (USTR) Notorious Markets List, the Intellectual Property Office of the Philippines (IPOPHL) intends to strengthen efforts to be taken off the watchlist of countries with intellectual property rights (IPR) violations. According to IPOPHL director General Ricardo Blancaflor, being out of the latest Out of Cycle Review of Notorious Markets for a second year is a positive development. The USTR first took off the Quiapo shopping district from its Notorious Markets List in its report released in December 2012. The Quiapo shopping district was among the markets which took action to address widespread availability of pirated or counterfeit goods. “These are welcome developments but we are still working on additional submissions to strengthen our national position with regards to the 301 watchlist,” Blancaflor said. Given the recent development and favorable feedback of American companies and associations on the government’s efforts to protect IPR, the IPOPHL hopes the country would be taken off the watchlist. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Some American companies and associations gave positive comments on Philippine efforts to address IP protection and we acknowledged these. We addressed constructively some of the concerns,” he said. In the USTR’s 2013 Special 301 Report, the Philippines was retained in the watchlist of countries with IP violations, subject to further review of progress in key areas. Countries placed on the watchlist are those which need to address underlying Read More …

Educational plans top insurance priorities of Mindanao consumers

Economy

Feb 152014

Educational plans top insurance priorities of Mindanao consumers

MANILA, Philippines – Educational plans, health and life insurance are the priority of Mindanao residents according to a survey by Sun Life of Canada (Philippines) Inc. It noted that 42 percent of respondent said getting an educational plan stood as the most urgent concerns in the next couple of years, while 36 percent said they plan to purchase health insurance. Conducted in Davao and Cagayan de Oro with 200 respondents in the second half of 2013, the survey showed that more Mindanaoans aim to purchase products including educational plan, health insurance, life insurance, and pension plan. Twenty-eight percent is considering purchasing life insurance and 24 percent intend to get a pension plan. However, Sun Life said the intention does not necessarily ensure the respondents will actually push through with the purchase. The Mindanaoan’s budget is still allocated to food, house rental or mortgage, and education. But only one percent of the respondents stated that investments and insurance are included in their monthly budget allocation. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “What they could be missing is that it is with investments that they could grow their money and insurance is their means to protect it,” the survey indicated. While they will have to spend for both, the benefits may well be worth it. “In the long run, these could benefit them far better than entrusting all their money in a savings account – which, according to the survey, is how Mindanaoans define financial security (37 percent) as Read More …

ADB extends $250-M loan for LGU review

Economy

Feb 152014

MANILA, Philippines – The Asian Development Bank (ADB) has extended a $250-million loan to help the Philippines design ways to improve the financing system of local government units (LGUs). The reform program will receive parallel co-financing of $150 million from the Agence Française de Developpement. The loan will be used to fund a comprehensive review of the country’s Local Government Code “to boost municipal revenues streams for the provision of better basic services and to assist local economic development and job creation.” ADB’s Southeast Asia Department senior public management specialist Juan Luis Gomez noted that the Philippines has taken significant steps to improve the financing system of LGUs and foster transparent and accountable local governance practices. “Reforms should help raise revenues and therefore improve services,” Gomez added. Despite these efforts, weak local tax bases and flaws in the design of transfers make it hard for poorer local governments to deliver the services their constituencies require. As a result, regional disparities in living standards remain wide. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This, however, could be efficiently addressed with a review of the Local Government Code. LGUs represent close to 17 percent of total government expenditures and play a critical role in the provision of basic services like health, education, or housing and community development. The reforms include performance-based mechanisms such as the Performance Challenge Fund, which ties greater access to funding to performance, and the “Bottom-up-Budget,” which can improve budget transparency and alignment of national and local Read More …

COL Financial finalizes more partnerships to boost income sources

Economy

Feb 152014

COL Financial finalizes more partnerships to boost income sources

MANILA, Philippines – Listed online brokerage firm COL Financial Group Inc. is finalizing more partnership deals with top asset managers and investment houses looking for new channels to distribute their products. New agreements will make COL a one-stop shop for investments while boosting its fee-based income, an executive said. “The intention of COL is to give customers a chance to invest in different funds out there,” said company president and CEO Conrado Bate said. “Our role here is not only to provide these funds on the website but also to select funds that will meet their investment objectives at the least possible cost,” Bate said. In January, the online brokerage firm entered into an agreement with Ayala Corp.’s BPI Asset Management and Trust Group and Sun Life Asset Management Company Inc., allowing COL to distribute mutual funds and Unit Investment Trust Funds, investment schemes. Given these deals, COL can also start offering money market funds, bond funds, fixed income funds, actively-managed funds, balanced funds and index funds, making it a one-stop shop, Bate said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 These deals, Bate said, will allow COL to cater to different client preference and risk profile. COL is confident its technological platform is ready to handle not only online trading transactions but investments in professionally-managed funds. “[Partnering with different institutions] will also help expand the revenue base of COL,” Bate said, adding that management fees provide stable earnings and more predictable flow of revenues. Given continuing market Read More …

ALI eyes debt market to fund P66-B capex

Economy

Feb 142014

ALI eyes debt market to fund P66-B capex

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) is tapping the debt market as a major fund source for its P66-billion capital spending this year. The property developer of the Ayala conglomerate is banking on high liquidity in the financial service sector for its fundraising program, a top company executive said. “(Fundraising will be) still primarily through debts…we have debt capacity that we can utilize,” said ALI chief finance officer Jaime Ysmael. ALI has already refinanced most of its debts, making the company comfortable in the current maturity profile and interest rates due to lenders, he said. The real estate firm is allotting close to P70 billion for its capital expenditures this year to support landbanking and project developments. In 2013, ALI spent P66 billion for its various projects, backed by a P12.2-billion overnight share sale in March, a P15-billion bond sale in August and a P6-billion bond offering in October. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Given our pipeline of projects, we estimate that our capital spending will be similar in magnitude [for 2014],” Ysmael earlier said. “Hopefully the high liquidity in the banking system will help mitigate any increase [in interest rates],” he said. The Bangko Sentral ng Pilipinas has assured companies it has a wide range of toolkit to address any possible rate increases and make economic conditions still workable for everyone, Ysmael said. ALI is primarily into the development of residential projects, lease of commercial and office space and sale of prime Read More …

Jollibee posts fastest profit growth in 7 yrs

Economy

Feb 142014

Jollibee posts fastest profit growth in 7 yrs

MANILA, Philippines – Strong sales in existing branches and new stores drove fastfood giant Jollibee Foods Corp. (JFC) to its fastest earnings growth in seven years. In a regulatory filing, JFC said its net income jumped nearly a quarter to P4.64 billion in 2013 from P3.72 billion in 2012. Systemwide sales, which measures sales to consumers both from company-owned and franchised stores, picked up 12.8 percent to P104.9 billion from P92.27 billion. “The company increased its sales by 12.8 percent, the highest organic sales growth in six years, enabling JFC to breach the P100-billion sales mark for the first time,” said JFC chief operating officer and incoming COO Ernesto Tanmantiong. “Our progress in building the business has been taking place across our brands in different countries,” Tanmantiong said, adding the profit growth was the fastest in seven years. In the fourth quarter alone, JFC’s profits climbed 20.3 percent to P1.51 billion from P1.26 billion as systemwide retail sales rose 13.9 percent to P28.86 billion from P25.35 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Specifically, systemwide sales in the Philippines gained 12.2 percent, China by 19.2 percent, US by 17.2 percent, and Southeast Asia and Middle East by 35.3 percent. Tanmantiong said the fastfood chain opened 98 new stores in the fourth quarter, the highest number of new stores opened in one quarter in JFC’s 35-year history. In 2013, JFC spent P4.1 billion as it opened 235 new stores worldwide. “In the years ahead, we look forward to Read More …

Melco Crown incurs higher $8.3-M Q4 loss

Economy

Feb 142014

Melco Crown incurs higher $8.3-M Q4 loss

MANILA, Philippines – Macau-based casino giant Melco Crown Entertainment Ltd. continued to incur losses for its Philippine operations ahead of the opening of its $1.3-billion integrated resort complex in Manila. In a regulatory filing at the Hong Kong Stock Exchange, Melco Crown said its operating losses in the Philippines hit $8.29 million in the fourth quarter last year, up 13 percent from $7.32 million the previous period. “On a fully consolidated basis, we incurred approximately $8.3 million of operating expenses in the fourth quarter of 2013 at City of Dreams Manila,” Melco Crown said. Higher expenses resulted from “pre-opening costs as well as share-based compensation cost,” the gaming firm said. Melco Crown said it also incurred $10.1 million in capital lease charges relating to building lease payments for City of Dreams Manila. Its local unit, Melco Crown (Philippines) Resorts Corp., committed to pay $35 million as rent to Belle Corp., the leisure arm of the SM Group and the builder of the casino complex. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Melco Crown said it posted $37.23 million in operating losses from City of Dreams Manila for the entire 2013, more than five times the $7.32-million loss in 2012. When it opens in the third quarter this year, City of Dreams Manila will offer 365 gaming tables, 1,680 slot machines and 1,680 electronic table games. Previously, the casino planned to offer only 242 gaming tables and 1,450 electronic gaming machines. It will be the second casino complex to Read More …

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