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DOE to use part of P4-B budget for projects

Economy

Aug 252013

DOE to use part of P4-B budget for projects

MANILA, Philippines – The Department of Energy (DOE) will use part of its P4.05 billion budget to finance the department’s continuing activities including the household and sitio electrification program, Energy Secretary Carlos Jericho Petilla said. Petilla earlier said the Aquino administration is aiming to cover 33,000 sitios under the rural electrification program by 2015. Aside from household and sitio electrification, the DOE will allocate portion of the budget for “biofuels blending, renewable energy installation and development of indigenous resources and clean energy technologies,” Petilla said. The Energy chief also said that the department has three ongoing special projects – the high impact solar project, which entails promoting the use of solar energy in the Philippines, the high impact hydro project, which is a joint venture with the Philippine National Oil Company-Renewables Corp., electric cooperatives and the private sector and the electric vehicles (e-trike) project, which is under a loan agreement between the government and the Asian Development Bank. For the e-trike project, the ADB is working with the government to promote the adoption of e-trikes in Metro Manila and soon, throughout the country. Ultimately, ADB and the government hope to see 100,000 electric tricycles on the road by 2016. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The e-trike produces no noise and zero tailpipe emissions and can be charged at night during off-peak electricity hours, according to the ADB.

Foreign buyers seek gov’t funding to revive garment sector

Economy

Aug 252013

Foreign buyers seek gov’t funding to revive garment sector

MANILA, Philippines – The Foreign Buyers Association of the Philippines (FOBAP) is seeking funding support from the government to revive the country’s garments industry. The Philippine Exporters Confederation Inc. in a statement, cited FOBAP president Robert Young as saying that the projects costing around P5 million include industry mapping for garments and hard goods sectors, compliance program and “invite the CEO (chief executive officer)” project. Young said factories need to comply with implementing requirements and regulations on child labor, clean and safe environment and minimum wage. He said compliance to the requirements and regulations is important so that “the big buyer companies with big quantities and buying program will place orders.” “If not, the factories can just settle with the small quantity buyers which usually have lower buying prices,” he said. He also said there is a need to bring back the so-called “invite the CEO” project which has been effective in terms of regaining foreign buyers. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The “invite the CEO” project was implemented during the Martial Law years, when the country experienced crisis and foreign markets stopped purchasing goods. “What we did last time, we invited all the top CEOs and buyers of the major department stores abroad, all expenses paid for like four to five days. We told them that Manila was ready to serve you, we were still here and the industry was being revived,” Young said. With the implementation of the three projects, the group is optimistic Read More …

DOE says it can’t stop Petron from acquiring rival Liquigaz

Economy

Aug 252013

DOE says it can’t stop Petron from acquiring rival Liquigaz

MANILA, Philippines – The Department of Energy (DOE) said its hands are tied and that it cannot do anything on the plan of Petron Corp. to acquire rival Liquigaz Philippines Corp., a ranking official told The STAR. Zenaida Monsada, director of the energy department’s Oil Industry Management Bureau said the agency has no jurisdiction over mergers and acquisitions even if the companies involved are oil firms. “The DOE cannot do anything about mergers and acquisitions. We only have jurisdiction on the initial public offering (IPO) requirement of refiners,” she said, referring to the Oil Industry Deregulation Law of 1998, which requires oil refiners to offer shares to the public. She said it was up to the Securities and Exchange Commission (SEC) to police corporations such as Petron regarding their acquisition activities if it deems necessary. Furthermore, she said Congress can also pass a measure that would put safeguards against monopolies. Petron is in the process of acquiring Liquigaz, a wholly-owned Philippine subsidiary of SHV Energy of the Netherlands. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Rep. Arnel Ty of the LPG Marketers’ Association has raised concerns that once Petron completes negotiations for the acquisition of Liquigaz, it may control the LPG industry with a 75-percent share. Ty said Petron has given SHV a non-binding offer of $60 million for Liquigaz’s LPG business, a statement that Petron neither confirmed nor denied. “The company confirms that it is participating in the proposed acquisition of the operations of Liquigaz, a wholly-owned Read More …

Higher Phl growth, stable rates seen by BofA, Barclays

Economy

Aug 242013

Higher Phl growth, stable rates seen by BofA, Barclays

MANILA, Philippines – The Philippine economy is expected to have grown 6.8 percent in the second quarter, faster than the six percent expansion in the same period last year. “We expect growth to remain supported by consumption and investment,” UK-based Barclays said in its Global Economics Weekly report published Friday. The bank’s forecast is within the government’s target of a six to seven percent economic growth this year but is slower than the higher-than-expected 7.8 percent expansion in the first quarter. Second quarter gross domestic product (GDP) data is set to be released by the National Statistical Coordination Board next week. Amid strong economic growth and a manageable inflation, Barclays noted the Bangko Sentral ng Pilipinas may keep policy rates steady in the coming 12 months. “With a favorable growth-inflation balance, we expect the central bank to keep rates unchanged in the coming 12 months,” Barclays said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The central bank has kept overnight borrowing and lending rates at 3.5 percent and 5.5 percent, respectively, since the start of the year. Rates were kept steady amid a benign inflation environment and a robust Philippine economy. Likewise, Bank of America Merrill Lynch (BofA), in its Asia Economic Weekly report said it expects the Monetary Board to keep rates unchanged at its next policy meeting on Sept. 12. “We do not think that monetary authorities will consider a policy rate reduction at this stage,” BofA said. The bank also noted it has raised its Read More …

Asia to account for half of global luxe revenue by 2020

Economy

Aug 242013

Asia to account for half of global luxe revenue by 2020

MANILA, Philippines – Asia would account for half of the global luxury revenue by 2020, according to the Economic Intelligence Unit (EIU). In a report, EIU forecasts that in the Philippines alone, there will be at least 38,000 millionaires by 2015. EIU is an independent business within the Economist Group which offers forecasting and advisory services, as well as country, industry and management analysis worldwide. “Based purely on consumption growth levels and currency headwinds, the region could account for over one-half of global luxury revenue within a decade, compared with one-third today,” it said. Luxury firms are shifting their attention towards other emerging markets in the Middle East and Africa. But unlocking Asian potential is the priority for luxury brands. EIU’s five-year forecast for retail sales is stronger for Asia than any other region. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We project Asian household incomes out to 2030, taking in assumptions for shifting tastes, as well as the emergence of niche and home-grown brands. Asia’s wealthy elite is driving luxury growth so far, but it is the burgeoning aspirational middle class who will provide market depth,” it said. The reports show that the number of Asian households with annual income of over $150,000 would rise from 2.5 million to around 27 million by 2030. China alone would have 12.7 million of such households. The expanding middle class would be the main buyer of luxury goods sales. By 2030, there would be over 270 million households with income Read More …

BSP sees robust growth for emerging economies

Economy

Aug 242013

BSP sees robust growth for emerging economies

MANILA, Philippines – Investors should rethink pulling out funds from emerging markets as the Bangko Sentral ng Pilipinas (BSP) said growth in these economies continue to be “robust.” “The pace of growth in emerging economies… remains robust,” the BSP’s Monetary Board noted in its meeting last July 25. “Although recent indicators suggesting weaker domestic demand in major emerging economies somewhat dampen the global growth outlook,”it added. Emerging markets, which became safe havens for investors amid a downturn in developed economies, are now experiencing capital flight because of the US Federal Reserve’s impending easing of its bond-buying program due to continued progress in the world’s largest economy. Looking at Asia, regional trends such as Indonesia’s worsening current account deficit and the contraction of Thailand’s economy have also affected other emerging market neighbors. The continued robust growth in emerging economies is amid a backdrop of a “modest” global economic growth as the US recovers, although problems in the euro zone linger. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The recovery in the US has continued on improved business and consumer sentiment, while economic activity in Japan gains further traction,” the report read. “Meanwhile, the downturn in the euro area continues.” The Monetary Board expects the Philippine economy to continue its growth in the second quarter, following the stronger-than-expected 7.8 percent expansion in the first three months of the year. “The monthly survey of purchasing managers by the Philippine Institute for Supply Management suggests that the Philippine economy was still in Read More …

DBP to redeem of P6.5B notes

Economy

Aug 242013

MANILA, Philippines – State-run Development Bank of the Philippines (DBP) will exercise the call option on its unsecured subordinated notes qualifying as Tier 2 capital amounting to P6.5 billion as it prepares for the implementation of Basel 3. The bank said the early notes redemption would lead to interest savings as it implements stricter capital standards and discipline by removing from its qualifying capital notes issued prior to the implementation of Basel 3, a global regulatory framework for more resilient banks and banking systems. The notes were issued on Sept. 1, 2008 with coupon rate of 7.75 percent. The call option date is on Sept. 2, 2013. As of the first six months of 2013, DBP’s capital adequacy ratio rose to 23.9 percent from 21.6 percent. DBP said the call option amount will be the face value of the notes plus unpaid and accrued interest based on the initial interest up to but excluding the call option date. “There shall be no more secondary trading of the notes or modifications in the accounts after the book closure date,” the bank said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 DBP is currently the seventh-largest bank in the country in terms of assets, and is the second-largest government-owned bank, next only to the Land Bank of the Philippines. It is also one of the largest government-owned and controlled corporations (GOCCs) in the Philippines.

Business groups welcome PDAF abolition

Economy

Aug 242013

MANILA, Philippines – The country’s business groups welcomed President Aquino’s move to abolish the Priority Development Assistance Fund (PDAF) and called on the Congress to start adopting new measures in next year’s budget. Business groups such as Alyansa Agrikultura, Bishops-Businessmen’s Conference for Human Development, Employers Confederation of the Philippines, Financial Executives Institute of the Philippines, Institute of Corporate Directors, Makati Business Club, Management Association of the Philippines, People Management Association of the Philippines, Philippine Institute of Certified Public Accountants, and Semiconductor and Electronics Industries in the Philippines, Inc. said in a joint statement that reforms in the PDAF need to be put in place as the fund which is supposed to complement national has been tainted with corruption. “In this light, we commend the Aquino administration for taking a bold stance towards greater accountability and transparency. The business community fully supports the abolition of the PDAF, as well as the subsequent establishment of the new mechanism proposed by P-Noy that will address the needs of various localities and sectors,” the groups said. The groups said measures to limit discretion and to open the entire process of allocating development assistance to public scrutiny would lead to a more judicious and transparent management of public funds. The groups likewise called on the Congress to implement the reforms. “We, therefore, urge the respective members of both chambers to adopt the new measures into the 2014 General Appropriations Act (GAA) and beyond,” the groups said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Read More …

Manners do matter

Economy

Aug 232013

There are many heroes in my life, people I look up to in business, and in the field of training and consultancy. There are many leaders whose faith walk has inspired me to take the things of God seriously and who have helped me enjoy the life I live today. I’ve had the chance to learn from all of them. When it comes to public speaking, Zig Ziglar is my hero. He stands taller than anybody else in the field. His wit, his humor, his commitment to Christ, and his values to family and country have influenced and molded me to be the speaker that I am today. I never had the pleasure of meeting Zig Ziglar in person, but his books, audio materials and DVD’s greatly inspired me. Thus, I look up to him as my hero. Many years ago, our consultancy company had the opportunity of representing Ziglar’s sales training programs. It’s amazing to see that people still find relevant today the things he had taught and shared with his audiences. Values are timeless. Values don’t change. As I give parenting talks all over the country, I’ve observed that even parenting styles have changed. Some are for the better; unfortunately, some aren’t. This is why I’ve decided to share this article with everyone, so we may all raise successful kids. This is an article by Zig Ziglar entitled “Manners Do Matter”: Today, good manners are something we rarely practice. However, good manners, including the expression of gratitude, are one Read More …

Money parked in SDAs up slightly in August

Economy

Aug 232013

Money parked in SDAs up slightly in August

MANILA, Philippines – Money parked in the central bank’s Special Deposit Accounts (SDAs) hit P1.77 trillion as of Aug. 2, rising week-on-week despite Bangko Sentral ng Pilipinas (BSP) efforts to push away funds from the facility. The amount was slightly higher than the P1.75 trillion recorded as of July 26, BSP data showed. However, this was lower than the P1.79 trillion recorded in end-June and the P1.85 trillion seen in end-May. The central bank introduced SDAs in late 1998 to mop up excess liquidity in the financial system. But the falling interest rates prompted investors to park their funds in the facility instead of putting money in other financial instruments. As a result, the BSP has cut SDA rates by 150 basis points this year to two percent. It has also ordered the removal of 30 percent of individual deposits in the SDA by July 31. A total phase-out of these individual deposits, estimated to account for P1 trillion of the facility, was also ordered by November. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Emilio Neri Jr., lead economist at the Bank of the Philippine Islands, noted concerns hounding the markets may be discouraging investors to pull out their funds from the SDA facility. “There’s the aspect of the somewhat cautious mode of the market given equities are actually seeing a sharp reversal and investors would probably want to park their funds in more conservative instruments,” Neri said. “When the mood of the market shifts to more optimism, Read More …

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