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Public infra spending seen to more than double

Economy

Jul 172013

Public infra spending seen to more than double

MANILA, Philippines – Public infrastructure spending is seen to more than double to P834.5 billion by 2016 as the Aquino government allocates more funds to build more roads, railways, airports and bridges to support its goal of inclusive and sustainable growth. In a briefing yesterday, Budget and Management Secretary Florencio Abad said the government would continue to bolster infrastructure spending to further spur economic growth to as much as seven percent this year. For this year, the Aquino administration expects to spend P299.4 billion for infra-related projects, equivalent to 2.5 percent of gross domestic product or GDP. The amount excludes projects under the government’s Public-Private-Partnership program. For next year, infrastructure spending is forecast to rise by 28.4 percent to P418.2 billion or three percent of GDP. The budget is expected to increase further to P601.5 billion and P834.5 billion by 2015 and 2016, respectively, corresponding to 4.1 percent and 5 percent of GDP. The Philippines trails behind its Asian neighbors in terms of government infrastructure spending. According to the World Bank and the Asian Development Bank, the Philippines needs to jack up infrastructure investments to keep pace with its Asian peers in attracting foreign direct investments. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Across Southeast Asia, public works are being given priority by governments seeking to maintain growth amid the global economic downturn. Improved infrastructure would contribute to reduced costs of doing business, increased market accessibility and enhanced competitiveness, the ADB said. Higher tax collections and improved public Read More …

Bakers warn of higher pandesal prices

Economy

Jul 162013

MANILA, Philippines – A group of bakery owners and bread producers warned that prices of Pinoy pandesal, other bread products, biscuits and noodles would increase by 10 to 15 percent, if the government gives in to the demand of an influential lobby group to restrict the entry of affordable flour from Turkey. The Filipino-Chinese Bakery Association Inc. (FCBA), the group of bakery owners or producers of bread, noodles, cakes, pastries, pizza, siopao, pandesal, cookies, and biscuits from Luzon, Visayas and Mindanao, said imposing a higher tariff on flour imported from Turkey would increase the price of Pinoy pandesal by 50 centavos to P3.50 per piece from the current P3 apiece. Pinoy pandesal is the brand of affordable bread products produced by small community bakers. “Because of cheaper Turkish flour, Filipino consumers enjoy lower priced breads and other flour-based products such as dry noodles, biscuits and fishballs,” the FCBA said. The FCBA said flour represents more than 50 percent of the total cost of bread production, and an increase in the price of flour would automatically translate to higher prices of bread. “There are 25,000 bakeries operating in the Philippines and many small and medium-sized bakeries are using lower priced flour for them to offer breads within the reach of the Filipino consumers,” the FCBA said. The FCBA said the Philippine Association of Flour Millers Inc. (PAFMIL), which has monopoly of the local flour market, is using its influence on the government to push the Turkish flour out of the country Read More …

Infra standstill: Risk aversion or incompetence?

Economy

Jul 162013

Infra standstill: Risk aversion or incompetence?

People keep on asking me why the P-Noy administration has fallen flat on its face in the area of constructing vital infrastructure. The only major project they are claiming to have completed, the Laguindingan Airport in Cagayan de Oro was initiated during the Ate Glue watch. The portion that was the responsibility of the P-Noy watch was even botched by DOTC. They forgot the airport needs air navigation and night landing facilities. So they inaugurated the airport with only visual flight rule in place. The ILS (Instrument Landing System) and other vital facilities will come later. Another agency under DOTC forgot that the new airport needs a good public transport system. LTFRB should have been issuing franchises for buses and jeepneys but they thought of doing that too late. I was told of a Manila-bound Cebu Pacific passenger who had to pay a taxi P800 to get to the airport. His plane ticket was P300. In answer to my question, I am inclined to believe that incompetence is the basic reason why P-Noy’s boys have failed to put up infrastructure projects over the past three years. But there are those who say it is an acute case of risk aversion… as in a fear of signing any contract that may end up with the Ombudsman and will bug them way after they are out of office. They are most likely thinking they cannot be sued for corruption if they do nothing… but they risk a Sandiganbayan case if they signed Read More …

ALI to issue P21-B bonds

Economy

Jul 162013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has secured the approval of the Securities and Exchange Commission (SEC) to issue as much as P21 billion worth of bonds. This development will allow the property arm of the Ayala conglomerate to conduct its largest fundraising in the capital market. In a disclosure, ALI said it has received SEC approval to sell up to P21 billion in bonds. “The company will issue the initial tranche of the bonds as soon as all other necessary documents are submitted and all the required approvals are secured, which hopefully will be completed before the end of the month,” ALI said. Last week, ALI chief finance officer Jaime Ysmael said the fundraising will “partly finance our capital expenditures program for the year.” In June, ALI’s board of directors approved the sale of up to P21 billion in long-term, fixed-rate corporate bonds through a general public offering. It will be the largest fundraising of ALI thus far, eclipsing the P15 billion it secured from a retail bond offering in April last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity. The property firm allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years. It launched 67 new projects last year worth P110 billion. In the first quarter, Read More …

Fil-Chinese businessman wins award in China

Economy

Jul 162013

Fil-Chinese businessman wins award in China

MANILA, Philippines – The China Outstanding Business Leaders Forum held the 4th “Outstanding Chinese Business Leader Award” recently at the Beijing National People’s Congress (NPC) Centre, in Beijing, China. Fifty business leaders from all over the world were screened of which 16 were chosen as awardees through an open voting system. All 16 awardees were described as inspiring individuals who epitomize strength, ingenuity, knowledge, vision and represent the “best of the best” in China. Dr. James G. Dy, President of Philippine Chinese Charitable Association Inc. (PCCAI), owner and operator of Chinese General Hospital and Medical Center, and chairman of the Filipino Chinese General Chamber of Commerce Inc., (FCGCCI), was chosen as the lone Filipino-Chinese awardee for this year. The award was presented to Dr. Dy by the Chinese People’s Association for Friendship with Foreign Countries chairman Chen Hao su, son of Marshal Chen Yi. Dr. Dy expressed hope that the recognition will promote better friendship between the Philippines and China and foster unity for the Filipino Chinese community. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Dr. Dy credits the countless hardships and struggles he hurdled as a businessman as the foundation of his success. He recalled that in the past decades, since he started his exploits in the business society; his only capital was blood, sweat and tears which translated into pure hard work. He said his motivation for success is his desire to contribute to society and the Filipino-Chinese community through social services, and the tireless promotion Read More …

BSP seen keeping rates at record lows

Economy

Jul 162013

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) signaled yesterday it could maintain policy rates at their historic low levels as inflation remains manageable. “There is no urgency to change the policy because inflation remains under control,” BSP Governor Amando Tetangco Jr. told reporters on the sidelines of central bank’s stakeholders’ awarding ceremony. Policy rates – which serve as banks’ benchmarks in charging their loans – have been kept at their record lows of 3.5 percent and 5.5 percent for overnight borrowing and lending, respectively. They have been at that level since October last year. So far this year, the BSP only chose to tweak the return it offers on special deposit accounts (SDA), parked funds by lenders and trust departments, by a total of 150 basis points to two percent from 3.5 percent. But for the next policy meeting slated on July 25, Tetangco said he also sees “no urgency to change the status” of the SDA rate, which when lowered thrice reduced idle money with the BSP from a high of P1.98 trillion to just P1.738 trillion as of June 28. The central bank said efforts to push out funds of the SDA are meant to support economic growth amid a benign inflation environment that gives more capacity to boost money supply in the system. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Economic expansion hit 7.8 percent in the first quarter, beating market expectations, as an inflation rate of three percent gave more capacity to Read More …

GSIS mulls return to int’l financial markets next year

Economy

Jul 152013

GSIS mulls return to int’l financial markets next year

MANILA, Philippines – State pension fund Government Service Insurance System (GSIS) is reconsidering tapping the international financial markets next year with a placement of between $300-$400 million amid improving economic prospects for the United States and Japan. In a briefing yesterday, GSIS president Robert Vergara said the plan is hinged on several domestic factors such as the stock market’s performance by the end of the year. “We haven’t definitely decided whether we’re going international. It all depends on domestic valuations, how the market performs at the end of year but I think it’s time for us to reconsider whether deploying assets externally will help dampen the volatility,” Vergara said. Volatility in emerging markets has been rising as foreign investors pull out of the world’s most expensive equities given the US Federal Reserve’s moves to scale back its massive bond-buying program. “If the market continues to correct, then why should we go outside and take foreign currency risk? At the moment investing abroad is not something in the cards, although we’ll look at it as the market progresses. It could be placements in stocks, bonds or private equity,” Vergara said. Vergara said the fund is looking to invest around $300 million to $400 million in the event it decides to go back to the overseas markets. This is roughly the same amount it shelled out for its first infrastructure project. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Like all things we do, we never go out there and take Read More …

Federal Land gets P1.1-B fresh equity from GT Capital

Economy

Jul 152013

Federal Land gets P1.1-B fresh equity from GT Capital

MANILA, Philippines – GT Capital Holdings Inc., the investment vehicle of banking tycoon George S.K. Ty, is infusing more than P1 billion of fresh capital into its property unit. The fresh funding completes the capital requirements of Federal Land Inc. for 2013, a company executive said. In a regulatory filing, GT Capital said it bought 11 million common shares worth P1.1 billion from wholly-owned subsidiary Federal Land. “The proceeds of the capital infusion will be used to fund construction of existing projects,” Jose Mari H. Banzon, executive vice-president and general manager of Federal Land, said in a text message yesterday. “Our capital requirements are fully funded for 2013,” Banzon added. Federal Land committed to spend P12 billion for its property projects this year, up from the P9 billion it spent in 2012. Of the capital spending this year, P4-5 billion will be spent for the Fort Bonifacio developments. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The GT Capital equity infusion of P1.1 billion is in addition to the P5-billion corporate notes that Federal Land issued in early July,” Banzon said. Early this month, the property development arm of GT Capital completed its second fundraising in the capital markets. Federal Land issued P5-billion worth of seven- and 10-year fixed-rate corporate notes to a group of institutional lenders composed of banks, insurance companies, pension funds and trust institutions. The property firm initially planned to issue P3 billion in corporate notes but robust institutional demand prompted the company to exercise the Read More …

DA asked to investigate ‘dumping’ of Turkish flour

Economy

Jul 152013

DA asked to investigate ‘dumping’ of Turkish flour

MANILA, Philippines – Small flour millers are asking the Department of Agriculture (DA) to investigate the alleged dumping of Turkish flour into the country. The Philippine Association of Flour Millers (PAFMIL) yesterday said it filed a petition before the DA in May seeking a public hearing on the issue and to coordinate with the Tariff Commission to institute safeguards against the supposed dumping of Turkish flour. “We asked the DA to look into the matter and conduct a public hearing. Afterwards, it can coordinate with the Tariff Commission to put in place the necessary safeguards,” said PAFMIL executive director Ric Pinca. “We hope to get a favorable ruling because we believe we have a strong case.” PAFMIL alleged that Turkish flour exportation to the Philippines at dumping prices violates World Trade Organization (WTO) rules. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Dumping occurs when a country exports a commodity at prices lower than its domestic prices. “When a country exports products at dumping prices, it is engaged in unfair trade. Thus, we are up against a group of flour exporters engaging in unfair trade,” said Pinca. PAFMIL noted that in 2010, average export price of Turkish flour was $276 per metric ton while their domestic price was $600 per MT. In 2011, export price was at an average of $388 per MT against Turkish domestic price of $600 per MT. Last year, it was $340 against their domestic price of $470 per MT. PAFMIL said Turkish flour exports Read More …

BIR misses collection target for June

Economy

Jul 152013

MANILA, Philippines – Tax collections of the Bureau of Internal Revenue (BIR) rose 9.2 percent to P88.76 billion in June from a year ago level. However, the June collection failed to meet the BIR’s target of P100.51 million for the month. The BIR also missed its collection target in May after performing above expectations in April. Revenues from BIR operations reached P86.28 billion in May, up P7.37 billion or 9.34 percent from the same month last year. Collections from non-BIR operations went up by 1.94 percent to P2.48 billion. Non-BIR operations refer to taxes collected by the the state from government securities issued by the Bureau of Treasury. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 BIR’s Regional Offices collected P31.53 billion during the month, an increase of P3.5 billion or 12.48 percent. Collections from the large taxpayers, on the other hand, amounted to P54.75 billion, 7.61 percent more than last year’s figure. For the first half of the year, the BIR collected P593.71 billion, up 13.92 percent from a year ago. Collections from BIR operations increased 15.29 percent to P574.84 billion. Collections from non-BIR operations, on the other hand hand, fell 16.4 percent to P18.87 billion. Excise tax collections on sin products likewise saw an expansion during the six-month period, rising 46.06 percent to P38.54 billion. The bulk of the amount or P22.38 billion came from tobacco products while the balance of P16.16 billion came from alcohol. The excise tax collected from tobacco firms represents an increase of Read More …

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