philstar.com – Business – Page 173

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Reading helps make a better nation

Economy

Dec 312013

The festive Christmas week provides me reason to momentarily deviate from writing mainly commentaries on economic issues in this column. So, today, I pay attention to a topic that is unexpectedly different: On reading. (In this way, too, I send holiday greetings to my readers.) “A nation of literates is not necessarily a nation of readers.” To some, the ultimate reward of leisure is peace of mind: restful use of time to enjoy. Reading is one such. A nation of readers is a nation of vigilant and knowledgeable literates. In our country, though the literacy rate is high, there are not enough readers among us. Many know just exactly what I mean. The lack of readers among us shows easily when groups of persons are massed in public places. Imagine a scene such as when people are traveling and there is so much free time available for them, because waiting is a major part of the activity. We wait for plane check-ins, for bus and metro rides, for people we expect to meet. And then, we wait for hours traveling to reach our destination. On such occasions, there is either much or little talk, food munching or sleep, or cellphone use or gaming, or, simply, blank expressions of bored people. It is a great rarity to see individuals focused on any reading material at all. Similar settings in most developed countries produce a common thread: a substantial fraction of the people is oftentimes quietly engaged in their own activities – Read More …

DOTC to bid out P4-B Davao wharf

Economy

Dec 312013

MANILA, Philippines – The Department of Transportation and Communications (DOTC) will bid out the construction, operation and maintenance of the proposed P4.04-billion Sasa Wharf at the Davao Port in Mindanao in the first quarter this year. Transportation Secretary Joseph Emilio Aguinaldo said the agency is set to present the project to the National Economic and Development Authority (NEDA) for approval early this year. “We will go up to NEDA and we hope to bid out the project in the first quarter,” Abaya stressed. The project, he explained, would be under the government’s Public-Private Partnership (PPP) scheme. The government is looking at increasing the capacity of the Davao Port to 1.2 million twenty-foot equivalent units (TEUs) over the next five years based on the estimates made by the Philippine Ports Authority (PPA) from the current level of 700,000 TEUs. The DOTC earlier commissioned a team led by state-run Development Bank of the Philippines (DBP) as transaction advisor for improvement works on the Sasa Wharf. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The DBP team is composed of the International Finance Corp. (IFC) and HPC Hamburg Port Consulting Gmbh of Germany. Davao Integrated Port Stevedoring Service Corp. of Razon-owned International Container Terminal Services Inc. (ICTSI) operates a cargo handling facility at the Davao Port. Abaya earlier said the Aquino administration is set to rehabilitate more ports to energize the countryside and promote inter-island trading and tourism. He said the objective is to reduce compliance, transport and transaction costs for agriculture Read More …

Phl flight passengers can now use laptops, mobile phones while on board

Economy

Dec 312013

Phl flight passengers can now use laptops, mobile phones while on board

MANILA, Philippines – The Civil Aviation Authority of the Philippines (CAAP) is now allowing airline passengers to use their laptops, mobile phones and devices during flights. The agency has released memorandum circular 52-13 which lets the conditional use of transmitting portable electronic devices (TPEDs), music players, and global system for mobile communication on-board aircraft (GSMOBA) on all commercial aircraft operating within the territorial jurisdiction of the Philippines. According to the memorandum, airline passengers may use their laptops and cellular phones, internet or short-message-service (SMS) or voice communications and other broadband services during flights provided that they meet the conditions set by the CAAP. The memorandum states that when the aircraft doors are still open, the devices can be used unless the pilot-in-command or the senior cabin announce a prohibition. But when the aircraft is refuelling, the use of laptops, mobile phones and broadband communications will not be allowed. “In this instance, all transmitting portable electronice devices must be turned-off,” the memorandum said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 When the aircraft doors are closed, the devices should be placed on silent mode and could only be used for SMS, internet, or games. Voice communications are not allowed when the aircraft doors are closed except the use of GSMOBA if it does not interfere with the orderly conduct of flight. The use of MP3s should always be with earphones and not with additional or separate speaker and or amplifiers, the memorandum also said. The memorandum shall take effect Read More …

Warren Buffett's firm acquiring Phillips 66 unit

Economy

Dec 302013

Warren Buffett's firm acquiring Phillips 66 unit

OMAHA, Nebraska — Warren Buffett’s company has agreed to trade roughly $1.4 billion of its stock in Phillips 66 for one of the refiner’s chemical businesses. Houston-based Phillips 66 said Monday that Berkshire Hathaway will give up about 19 million of its 27.2 million Phillips 66 shares to acquire a business that makes additives that help crude oil flow through pipelines. The exact number of shares will be determined by the price of the Houston-based company’s stock when the deal closes. That’s expected to happen in the first half of 2014. Buffett says the business Berkshire is acquiring delivers consistently strong financial performance. He says Berkshire’s Ohio-based specialty chemical maker, Lubrizol, will oversee the unit’s strategic direction. Phillips 66’s stock closed at $74.72 on Monday.

Imposition of concurrent Interests: Basis and effects

Economy

Dec 302013

Imposition of concurrent Interests: Basis and effects

In all assessments by the Bureau of Internal Revenue (BIR), the total amount of taxes a taxpayer has to pay grows exponentially as the tax investigation continues to be unsettled. These deficiencies usually involve large amounts which anybody, even those who are not privy to the tax investigation, speculate on the validity of the large deficiencies involved in an investigation. Needless to mention, many people wonder how the BIR came up with a billion-peso worth assessment against our Pinoy pride, Manny “Pacman” Pacquiao. The unimaginable amount of deficiency taxes involved in some BIR investigations could be attributed to the increment of the unpaid basic tax the taxpayer is being assessed of. This increment is commonly known as the penalty interest. Generally, an interest at the rate of 20 percent per annum (assuming there is no element of fraud) is imposed on the unpaid taxes. But the imposition of this interest retroacts from the time the taxpayer was supposed to pay the tax until the actual payment thereof. But assessments usually come out two years after the taxpayer filed its return. This is because the BIR has three years within which to assess any deficiency taxes (again assuming there is no element of fraud). Thus, if an assessment is issued two years after the taxpayer filed its return, an automatic 40 percent (20 percent x 2) interest will be imposed on the basic deficiency tax. This is one reason why deficiency taxes involve a considerable amount. The interest imposed in this Read More …

YEARENDER: Market volatility likely to continue

Economy

Dec 302013

YEARENDER: Market volatility likely to continue

MANILA, Philippines – Waves of volatility had hit global financial markets including those in the Philippines this year on the back of anticipation for the US Federal Reserve’s tapering of stimulus. Despite the Fed announcement on Dec. 18 that it will finally start decreasing the volume of its massive asset purchases, the Bangko Sentral ng Pilipinas said volatility is seen to remain as the pace and timing of further scaling back the stimulus are still unknown. “As long as there is uncertainty, volatility is likely to continue. So the less uncertainty there is, then we can expect dissipation of volatility,” BSP Governor Amando M. Tetangco, Jr. told The STAR. “Now at least the uncertainty has been somewhat reduced because of the announcement of the Fed of the start of the tapering in January 2014 but the speed or the pace of the tapering and the amount that will be reduced are still unknown at this point in time,” he added. The Fed, long expected to taper stimulus since May this year, has said it will finally reduce its monthly asset purchases by $10 billion to $75 billion starting January 2014 following the release of strong labor market data and proof that the recovery of the US economy is gaining traction. But the Fed said it may implement further cuts in its bond buying program next year depending on the US jobs data, inflation, and if the economy is really getting strong enough to warrant a complete scale back of the Read More …

What we learn from Haiti, the Republic of NGOs

Economy

Dec 302013

What we learn from Haiti, the Republic of NGOs

“The problem is I don’t know who is receiving aid, what they are doing with it and where it goes.” That was a statement made by Haitian Prime Minister Jean Max Bellerive, according to reports from the BBC. Three years on from Haiti’s devastating earthquake, the country’s UN deputy special envoy, Dr. Paul Farmer, has revealed that little official aid money has gone to the country’s government and organizations. The devastating earthquake in Haiti left 200,000 dead and more than two million without homes. The world dug deep into its pockets resulting in some $9 billion of aid for earthquake relief, $3 billion from private individuals and corporations and $6 billion from bilateral and multilateral donors. But Dr. Farmer and others have been asking why less than 10 percent of the $6 billion has gone to the Haitian government and why less than one percent was given to local governments. “Our experience in Haiti has reminded us that when it comes to aid dollars, how and where we spend them is often as important as how much we spend,” said Dr. Farmer. Three years after the earthquake, 80 percent of the Haitian population still subsists below the poverty line with an unemployment rate of 40 percent. Moreover, almost 400,000 Haitians still live in the 496 tent camps that were established throughout the country. Cognizant of systemic corruption in Haiti, international donors were reluctant to channel their funds through Haiti’s NGOs and government. According to the US Institute of Peace, funneling Read More …

Investor activity in 2014 seen to remain robust

Economy

Dec 292013

Investor activity in 2014 seen to remain robust

MANILA, Philippines – Investor activity is expected to remain robust next year, with an upside for a slight growth after investors weigh the effects of the gradual US Federal Reserve tapering. The country’s growth story remains intact, a factor that could help restore investor confidence in the local bourse, an official said. “We think of a 10-percent increment (in capital raising proceeds). We have a larger base now and we said there is better certainty about the taper,” PSE president and CEO Hans B. Sicat said. Sicat said investors are now sure that the easing of the monetary stimulus, which has flooded financial markets with liquidity, will be gradual. This year, capital proceeds from private placement, stock rights offerings and follow-on offerings declined 20 percent to P175.06 billion from P219.07 billion in 2012 as market volatility dampened the valuation of listed companies. With the projected increase, capital proceeds next year might reach P192 billion. “With valuations where they are right now, it would help investors who want to come in the market next year,” Sicat said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 From recording the 31st all-time high this year at 7,392.20 on May 15, the benchmark PSE index closed 2013 at 5,889.83 due to a slew of negative news that dampened investor sentiment. PSE data showed that net foreign buying plunged 85.83 percent to P15.58 billion as of end-2013 from P109.97 billion a year ago. Foreign selling surged 74.68 percent to P1.29 trillion this year from Read More …

Japan firms to expand in Asia, Oceania

Economy

Dec 292013

MANILA, Philippines – Most Japanese companies with operations in Asia and Oceania including the Philippines intend to expand their business in the next two years, according to the Japan External Trade Organization (JETRO). The JETRO’s survey of Japanese-affiliated companies in Asia and Oceania for December 2013 showed that 58.1 percent of 148 Japanese firms based in the Philippines plan to expand their business in the next two years. Meanwhile, 38.5 percent want to maintain the existing level of business and 3.4 percent will reduce their operations here. For the whole of Asia and Oceania, the survey showed that 59.8 percent of the 4,536 Japanese firms are planning to expand in the next two years, while 36.3 percent will maintain current level of business and 3.9 percent will cut their operations. “The most commonly cited reason for business expansion was a ‘sales increase’ at 85.4 percent, followed by ‘high growth potential’ at 46.8 percent,” JETRO said. In the Philippines, it noted that the proportion of firms responding “easy to secure labor force” as a reason for the planned expansion, was relatively high at 12.8 percent. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In terms of sales outlook, Japanese companies with operations in the Philippines are more optimistic of growth in profits in 2014 than this year. The survey noted that 46.7 percent of Japanese firms in the Philippines expect their profits to rise this year compared to 2012, while 51 percent see their income growing next year over 2013. Read More …

YEARENDER: Banks gear up for Basel 3, Asean integration

Economy

Dec 292013

YEARENDER: Banks gear up for Basel 3, Asean integration

MANILA, Philippines – The Philippine financial system had remained resilient from all external shocks in 2013, thanks to the country’s strong economic fundamentals. With the continuing growth in the economy, local banks are expected to be kept on their toes in the coming years. These are generally the sentiments shared by some top bank officials and leading international rating agencies in the Philippine banking system this year and in 2014. “We have a healthy banking sector, well-capitalized. I don’t think anybody among the major banks is facing problems with their loans, BDO Unibank president Nestor Tan said.” “I think earnings are relatively strong, the industry performed quite well,” when asked to describe how banks fared in 2013. BDO is the country’s biggest lender, controlled by the family of retail tycoon Henry Sy Sr. of the SM Group of Companies. For 2014, BDO sees the economy growing by a still strong 6.5 percent amid a conducive business environment. This is, however, slightly lower than the 2013 growth estimate of 6.75 percent. Main drivers of growth are expected to come from the doubling of infrastructure from the regular National Government budget of P400 billion and partly the implementation of the government’s Public-Private Partnership (PPP) program. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On the possible impact of external factors on the banking industry’s performance, Tan said as long as the economy is doing good, banks would remain stable. “If the local economy will be affected by these external risks, then Read More …

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