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Shutdown puts businesses, foreign workers in limbo

Economy

Oct 122013

Shutdown puts businesses, foreign workers in limbo

WASHINGTON (AP) — The partial government shutdown has left high-skilled immigrant workers and the companies that employ them in limbo. The Labor Department’s Office of Foreign Labor Certification is closed and applications for job changes, new hires or any other adjustments for foreign workers are on hold until the government reopens. Laura Foote Reiff, a Northern Virginia immigration attorney, said while the Labor Department remains closed any business in the process of hiring foreign workers who already have a valid visa may also be missing various filing deadlines, which could force companies to start the complicated hiring process over again. “It can be costly and time consuming,” Reiff said. The Labor Department said Friday that it could not answer questions about the issue because the shutdown had closed the Office of Foreign Labor Certification. Reiff said government contractors whose projects are on hold during the shutdown face a dilemma: to furlough or fire foreign workers. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Because of the conditions on the high-skilled visas, even furloughed foreign workers have to be paid. If a company decides to fire the worker, that firm is then faced with starting the arduous hiring process over again. And for the foreign worker, taking a temporary unpaid furlough or losing the job altogether means they are violating the terms of the visa, which could cause problems in the future if they try to renew a visa or change immigration status. There is no grace period for immigrant Read More …

GET to launch e-shuttle route along EDSA

Economy

Oct 122013

GET to launch e-shuttle route along EDSA

MANILA, Philippines – Global Electric Transportation Ltd. (GET) is aiming to deploy 50 units of its fully electric city shuttle, dubbed the City Optimized Managed Electric Transport (Comet), by 2014, its top official said. The initial routes will ply from SM North EDSA to SM Megamall, said GET chief executive officer Kenneth Montler. “GET was formed by a group within the US and the Philippines. The Philippines is a great place to showcase what we want to do because we have a city that suffers from congestion, noise and air pollution,” he said. The Comet can comfortably seat 16 passengers with a height clearance of over six feet. It also charges on a 220-volt outlet, with its charging system built into the vehicle requiring only a four-hour charge time and has a range of 80 to 100 kilometers on a full charge, GET said. The vehicle uses lithium-iron phosphate batteries that are enclosed in a watertight casing and consists of less than 300 parts instead of the usual 4,000 parts of a typical diesel-run engine, which translates to cost-efficient manufacturing and minimal maintenance, Montler also said. The Comet will apply a cashless fare system to ensure secure fare collection, so drivers can focus their eyes on the road, similar to systems implemented by transportation companies in other countries, he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Fleet management, meanwhile, will be handled by GET’s Command Center through GPS and Vehicle Telemetry Tracking, the company said. For its Read More …

SSS urges members to review payments in line with new rates

Economy

Oct 122013

SSS urges members to review payments in line with new rates

MANILA, Philippines – The Social Security System (SSS) has advised members who already paid advance premiums to review and update their payments in line with the new contribution rate and maximum monthly salary credit (MSC) that will take effect beginning January 2014. SSS president and chief executive officer Emilio S. de Quiros Jr. said individually-paying members such as the self-employed, voluntary and OFWs who have paid contributions in advance based on the minimum MSC for the applicable months of January 2014 onwards should settle the difference that will result from the new prescribed minimum amount of contribution. Under the new contribution schedule, the corresponding monthly contribution will be P110 for the minimum MSC of P1,000, P550 for the minimum MSC of P5,000 for OFWs, and P1,760 for the maximum MSC of P16,000. “The difference between the existing and new corresponding amount of contribution will be an underpayment on the part of the member who has paid in advance. With respect to the revised contribution schedule, a self-employed or voluntary member who remitted a minimum premium of P104 in advance for January next year will automatically incur an underpayment of P6 while the prescribed minimum contribution of P520 by an OFW will be short by P30,” De Quiros explained. Advance payments less than the required minimum contribution will not be considered by the SSS unless underpayment is settled. As a result, members with underpayments may face problems availing SSS benefits and services that often require a number of qualifying contributions. To Read More …

Globe’s Cu highest ranking Filipino in Power 100

Economy

Oct 112013

Globe’s Cu highest ranking Filipino in Power 100

MANILA, Philippines – Globe Telecom president and CEO Ernest Cu is the highest ranking Filipino to make to it to the Global Telecoms Business Power 100 for 2013. Power 100 is the magazine’s annual list of the 100 most powerful people in telecoms worldwide. Cu made it to number 66, besting another Filipino chief executive who made it to the list. Global Telecoms Business is the only magazine and website dedicated for senior executives of telecommunication companies worldwide. “Our chosen path to position Globe as a challenger brand has been successful and our efforts are being recognized globally. Our transformation efforts and the business gains we have achieved over the past several years despite heightened competition have created a stronger, preferred brand for our customers,” Cu said, referring to the company’s revenue and subscriber growth in recent years amid transformation initiatives involving mainly its network and IT infrastructure. Global Telecoms Business cited Cu’s direction in leading the company while undertaking a network and IT modernization program. The publication noted that Globe Telecom has close to 40-percent market share in the Philippines. Cu was appointed chief executive of Globe Telecom in 2009. At the end of the first half, Globe Telecom’s total mobile subscriber base reached a fresh record high, exceeding 36 million at the end of the June this year, driven by the success of its customizable and value-based product offerings amid rising demand for mobile browsing services. The company’s total subscriber base of 36.1 million at the end of Read More …

Market manages to end week in positive territory

Economy

Oct 042013

Market manages to end week in positive territory

MANILA, Philippines – Local stocks ended the week in positive territory despite the drag caused by top-traded Universal Robina Corp. (URC), as investors take positions ahead of the earnings season. The Philippine Stock Exchange index inched up 0.04 percent or 2.83 points to 6,390.48, while the broader all shares index added 0.31 percent or 12.04 points to 3,854.36. “The PSEi showed it can easily regain the 6,300 handle, even making an attempt at 6,400, “ said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp. Investors took note of recent price drops as buying opportunities heading into the earnings cycle, Calaycay said. However, gains were cut by the correction in share price of URC, which has been the top-traded stock in the past few days. The snacks giant retreated 4.88 percent to P117 apiece after parent firm JG Summit Holdings Inc. sold P12 billion worth of URC shares at P115 each. Despite the flat closing, the local bourse bucked the decline in Wall Street that was hurt by the continuing US government shutdown. The Dow Jones industrial average shed 0.9 percent or 136.66 points to 14,996.48 while the broader Standard & Poor’s 500 index fell 0.9 percent or 15.21 points to 1,678.66. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Most counters were in the green, led by financial firms that gained 0.81 percent or 12.65 points to 1,581.74. Losers were led by industrial companies that eased 0.28 percent or 26.15 points to 9,311.15.

WB sees Phl remittances growing 6% to $26 B

Economy

Oct 042013

WB sees Phl remittances growing 6% to $26 B

MANILA, Philippines – The amount of remittances sent by overseas Filipinos is estimated to grow six percent to $26 billion this year, making up over six percent of the $414-billion forecast global remittance level this year, the World Bank said in a report. The World Bank said the forecast top recipients of remittances for 2013 are India ($71 billion), China ($60 billion), the Philippines ($26 billion), Mexico ($22 billion), Nigeria ($21 billion), and Egypt ($20 billion). Other large recipients include Pakistan, Bangladesh, Vietnam, and Ukraine. In its latest issue of the Migration and Development Brief, the global financial institution said the figure could have been bigger. “Several large remittance recipient countries such as Russia, Latvia, Lithuania and Uruguay are no longer considered (by the World Bank) as developing countries,” the report said. In addition, the data on remittances also reflect the International Monetary Fund’s (IMF) changes to the definition of remittances that now exclude some capital transfers, affecting a few large developing countries like Brazil. Growth of remittances has been robust in all regions of the world, except for Latin America and the Caribbean, where growth decelerated due to economic weakness in the United States. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Remittances in the East Asia and the Pacific region (including the Philippines) are expected to expand 7.4 percent in 2013 to $115.3 billion. The inflows would account for about 28 percent of total remittances to developing countries. Figures earlier released by the Bangko Sentral ng Pilipinas Read More …

Gov’t may prepay 2014 borrowings reqm’t

Economy

Oct 042013

MANILA, Philippines – The government is looking to prepay its 2014 borrowings requirements to take advantage of the country’s low interest rates and excess liquidity. “We need to be flexible. We’re considering several options including possible prefunding to lock in currently low interest rates as well as increased investor appetite,” National Treasurer Rosalia De Leon said in a text message. De Leon said the government is hoping to tap the P1.4 trillion funds expected to exit the Bangko Sentral’s special deposit accounts (SDAs). Banks were given until the end of November to withdraw all funds from the SDA facility. Budget and management Secretary Florencio Abad said the county’s deficit is expected to ease further this year if the Supreme Court fails to lift an order stopping the release of the remaining P14.7 billion out of the P24.7 billion Priority Development Assistance Fund (PDAF) this year. Abad said a lower deficit will translate to lower borrowing needs for the government , lower liabilities and huge interest payment savings. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As of end-July this year, the government’s deficit stood at P104.51 billion, still well below its full-year forecast of P238 billion. The Philippines plans to raise nearly all of its debt requirements locally amid near record low interest rates and a highly liquid financial market. The Aquino administration has programmed to borrow P735 billion of debt this year (P630.6 billion locally and P104 billion overseas). Domestic borrowings are mostly composed of the usual Treasury Read More …

Inflation hits 3-mo high in Sept

Economy

Oct 042013

MANILA, Philippines – The nationwide inflation rate picked up more than expected in September on higher prices of food, non-alcoholic beverages and utilities. In a report, the National Statistics Office (NSO) said the consumer price index rose 2.7 percent in September from a year earlier, the fastest in three months and picking up from a four-year low hit in August. Despite the acceleration, the latest figure is still within the Bangko Sentral ng Pilipinas’ forecast range of 1.9 to 2.8 percent for the month. Without food and oil prices, core inflation went up to 2.3 percent in September from 1.9 percent in August. “This reaffirms our assessment that inflation would remain manageable over the policy horizon, and that barring any unforeseen developments, policy settings continue to be appropriate,” BSP Governor Amando M. Tetangco Jr. said in a text message to reporters yesterday. ‘’The BSP will remain watchful of both local and global developments, including the impact of the resolution of the issues surrounding the US debt ceiling on financial market volatilities in the near term, and the real economy in the medium term,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Tetangco said the central bank is ready to adjust policy settings in line with keeping prices stable. “The BSP will adjust policy settings, as appropriate, consistent with our price and financial stability objectives,” Tetangco said. Since the start of the year, the Monetary Board has kept overnight borrowing and lending rates at 3.5 percent and 5.5 Read More …

Moody’s upgrades Napocor, PSALM credit ratings

Economy

Oct 042013

Moody’s upgrades Napocor, PSALM credit ratings

MANILA, Philippines – Following its investment grade stomp for the Philippine government, Moody’s Investors Service has subsequently upgraded the credit rating of National Power Corp. (Napocor) and the Power Sector Assets and Liabilities Management Corp. (PSALM) to Baa3 from Ba1 with a positive outlook. Moody’s said the decision to upgrade was consistent with the credit rating hike given to the Philippine government’s long-term foreign currency and local currency ratings to Baa3 with a positive outlook last Oct. 3. “The Baa3 senior unsecured bond rating reflects the Philippine government’s unconditional and irrevocable guarantee for Napocor’s rated long-term bonds,” said Mic Kang, a vice president and senior analyst at Moody’s. He noted that Napocor had transferred 99.9 percent of its rated US dollar bonds to PSALM, which was also upgraded to Baa3 with a positive outlook as a result of the sovereign rating upgrade – including $300 million due in 2028 and $160 million due in 2016. “The positive outlook is in line with that of the sovereign’s, reflecting the government’s guarantee on the bond,” Kong said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 However, the Moody’s executive warned that a downgrade in the sovereign rating could also trigger a rating downgrade for Napocor and PSALM’s bond. Napocor is wholly owned by the government. It primarily operates and manages the power facilities that have been transferred to PSALM. On the other hand, Kang said “PSALM’s ratings are underpinned by its distinct policy role and its close integration with the government.” He noted that Read More …

Samsung reports record-high profit for 3Q

Economy

Oct 042013

Samsung reports record-high profit for 3Q

A woman walks by the billboards of Samsung Electronics’ Galaxy Note 3 at a subway station in Seoul, South Korea, Friday, Oct. 4, 2013. AP/Ahn Young-joon SEOUL, South Korea (AP) — Operating profit at Samsung Electronics hit another record high in the July-September quarter, likely driven by robust sales of its cheaper mid-range smartphones in developing countries. The maker of Galaxy smartphones said Friday that its third-quarter operating income rose 25 percent over a year earlier to 10.1 trillion won ($9.4 billion). The result was slightly better than the market expectation of $9.3 billion, according to FactSet, a financial data provider. Third-quarter sales increased 13 percent to a record high of 59 trillion won ($55 billion). Samsung did not disclose net income or other details of its financial performance. Its full results will be announced later this month. Analysts said robust sales of mid- and low-end smartphones and improved profit from Samsung’s semiconductor businesses were behind another record quarter. There had been expectations that slowing growth in sales of high-end smartphone in rich countries would dent the South Korean company’s profit but the latest result underlined the success of Samsung’s expansion in the mobile-phone market in developing countries. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Sales of the Galaxy S4 smartphone, Samsung’s flagship model that was released in April, plunged during the three-month period but Samsung probably still sold more smartphones than the previous quarter as consumers snapped up its cheaper smartphones, said Young Park, an analyst at Read More …

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