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SSS sees further growth for OFW provident fund

Economy

Dec 112014

SSS sees further growth for OFW provident fund

MANILA, Philippines – The Social Security System (SSS) said its provident fund for overseas Filipino workers has much more room for growth as only two in every five OFWs set aside money for investments and savings. Citing the Philippine Statistics Authority (PSA)’s 2013 survey on overseas Filipinos, SSS senior vice president and international operations division head Judy Frances A. See said only 40.7 percent of 1.9 million OFWs had savings from cash remittances. This was 2.2 percent lower than the 2012 figure. Given this, See urged OFWs registered with the state pension fund to invest in its Flexi-Fund program, a provident fund type of retirement plan offered exclusively to OFW members. Under the program, an OFW member could contribute at least P550 based on the P5,000 minimum monthly salary credit (MSC) for OFWs to a maximum of P1,760 per month based on the maximum MSC of P16,000. “Saving should be a priority because once they come back home and their income stops, they would likely have to live off whatever amount they have set aside. It is, therefore, important that they accumulate funds for a reserve, such as their SSS savings to mitigate loss of income.” See said. SSS savings would redound to their benefit in the form of payments for contingencies such as sickness, maternity, disability, retirement and death, she said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “For only a minimum of P200 paid in excess of the maximum contribution, it already enables an OFW member Read More …

Malaysia’s MTD Group to put up N. Ecija gov’t center

Economy

Dec 072014

Malaysia’s MTD Group to put up N. Ecija gov’t center

PALAYAN CITY, Nueva Ecija, Philippines – A giant Malaysian conglomerate which bankrolled the construction of the South Luzon Expressway (SLEX) and the Calabarzon Regional Government Center (CRGC) has tied up with the Nueva Ecija provincial government to establish a P1.5-billion, world-class new government center and business hub in this provincial capital in what is considered as the single, biggest Capitol project under the Umali administration. The mega-project, dubbed the Palayan City Business Hub (PCBH), was unveiled during ground-breaking ceremonies at a 3.4-hectare site in Barangay Singalat at the back of the newly refurbished city hall. Gov. Aurelio Umali, who conceptualized the mega-project, said it is a joint venture between MTD Philippines, a subsidiary of Malaysian conglomerate Alloy MTD, and the provincial government under the Public-Private Partnership (PPP) scheme. The province was the first local government unit (LGU) to enact a PPP Code. Umali led the ground-breaking rites for the project along with Mayor Adrianne Mae Cuevas, Dato Azmil Khalid, chief executive officer of Alloy MTD Group of Malaysia and head of the Malaysia-Philippines Business Council (MPBC) and MTD Philippines president Isaac David. The project site was donated to the provincial government by the city government under Cuevas. The mega-project is labor-intensive and would generate a whopping 13,000 jobs, 10,000 of which in call centers alone, with the rest to come from the operations of the various commercial establishments, the hotel and the government offices. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Alloy MTD, based in Malaysia, is a Read More …

Phoenix Petroleum issues add’l P1.5 B STCPs

Economy

Dec 072014

Phoenix Petroleum issues add’l P1.5 B STCPs

MANILA, Philippines – Phoenix Petroleum Philippines Inc., an independent oil company, is issuing P1.5 billion worth of short-term commercial papers after earlier issuing P2 billion also in short-term papers. Philippine Rating Services Corp. (PhilRatings), the local debt watcher, assigned an Issue Credit Rating of PRS 2 (minus) to Phoenix’ latest issuance. “The total STCP amount rated by PhilRatings in relation to Phoenix Petroleum is now at P3.5 billion, having rated an earlier STCP issue amounting to P2 billion,” Philratings said. According to Philratings, obligations rated PRS 2 exhibit above average capability for payment of both interest and principal. “This is normally evidenced by many characteristics of a PRS 1 rating but to a lesser degree. Earning trends and coverage ratios, while sound, will be more subject to variations. Capitalization characteristics, while still appropriate, may be more affected by external conditions,” Philratings said. The local debt watcher attributed the rating to the oil company’s ability to generate revenues among other factors. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Phoenix Petroleum’s business operations are able to generate substantial revenues, with profitability expected to improve going forward with its adequate liquidity and financial flexibility, and competent and experienced management team,” Philratings said. The local credit rating agency also said that Phoenix’ network expansion would likely strengthen its position in the market. Phoenix Petroleum is an independent oil company with a market share of four percent as of the first half of 2014. As of Sept. 30, the company has a total Read More …

Shell eyes alternative depot

Economy

Dec 072014

MANILA, Philippines – Pilipinas Shell Petroleum Corp. is eyeing Batangas as the site for an alternative depot following the decision of the Supreme Court ordering the relocation of the Pandacan oil terminal. “Right now, we have to review our options,” said Shell vice president for communications Ramon del Rosario. He said that using Shell’s facilities in Batangas is an option for the oil giant. “Batangas is an option,” he said. At the same time, he stressed that nothing is final yet as Shell has yet to receive a copy of the Supreme Court’s decision. As to whether the move to relocate to another depot would affect local pump prices, Del Rosario said prices would depend on market forces. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Probably, there’s an increase in distribution cost but the (pump) prices would depend on market forces,” he said. The Supreme Court has recently ordered the relocation of the Pandacan oil depot. Petron Corp., the country’s biggest oil refiner and Pilipinas Shell Petroleum Corp. are currently using the Pandacan oil depot. Chevron, owner of the Caltex brand, also used the facility but moved out of the depot last in June. Energy Secretary Carlos Jericho Petilla said it would be up to the oil firms to appeal the High Court’s decision but the order does not come as a surprise as the Pandacan terminal has long been surrounded by controversies amid complaints from nearby residents and environmentalists. “It will be up to them to appeal Read More …

Mfg output likely slowed in Oct

Economy

Dec 072014

MANILA, Philippines – Manufacturing output likely expanded by a slower five percent in October, Moody’s Analytics said, as the sector continues to reflect the cooling economy. “Industrial production has slowed in recent months, mirroring the broader economy’s cooling. Fixed investment from both the public and private sectors has weakened through 2014, partly as a result of the slowdown in government approval of new infrastructure projects,” Moody’s Analytics said in a research note. “Solid export demand and continued remittances from overseas should lift production in the coming months,” the firm added. Official October manufacturing data will be released on Wednesday. Latest data showed factory output, as measured by the volume of production index, eased further to 3.2 percent in September from 6.6 percent in August and 8.1 percent in July. This was due to the decrease in the production of wood and wood products, furniture and fixtures, transport equipment, footwear and wearing apparel, tobacco products, and electrical machinery, among others. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Increases in the production of printing, beverages, fabricated metal products, leather products, petroleum products, and machinery except electrical products lifted factory output during the period. Meanwhile, the value of production index only went up 3.8 percent in September, also a deceleration from 5.2 percent in August and 6.4 percent in July. Data showed this was amid a decline in wood and wood products, miscellaneous manufactures, footwear and wearing apparel, transport equipment, and basic metals, among others.

DOE signs up 141 firms for ILP

General

Dec 072014

MANILA, Philippines – The Department of Energy (DOE) has so far enlisted 593 megawatts of capacity for the Interruptible Load Program (ILP) although this remains below the 1,000-MW target capacity needed to prevent blackouts in the summer of 2015. The DOE continues to appeal to big power users to offer their capacity for next summer. “It will be highly appreciated if companies can express commitments to ILP on or before Dec. 31, 2014,” the DOE said in an advisory issued over the weekend. As of Dec. 5, 141 companies had signed up for the program, according to the DOE advisory. These include 105 retail electricity suppliers or RES with total capacity of 402 MW and 36 Meralco customers with total capacity of 191 MW, bringing their combined capacity to 593 MW. Retail electricity suppliers are entities authorized by the Energy Regulatory Commission (ERC) to sell, broker, market or aggregate electricity to the contestable market which consists of a group of end-users that have an average peak demand of one megawatt (1 MW) for 12 months. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Under the ILP scheme, big power users will be asked to run their own generators when supply is short in the summer months, instead of getting their power from the Luzon grid. In exchange, they will be compensated for their fuel costs. The electricity that would not be taken from the grid would be available to households and other users, sparing them from rotating blackouts. The Read More …

New guidelines set for SCTEX price challenge

Economy

Dec 062014

New guidelines set for SCTEX price challenge

MANILA, Philippines – State-run Bases Conversion and Development Authority (BCDA) has approved the guidelines for the Swiss challenge on the maintenance and operations management of the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEX). In a statement yesterday, BCDA said its board of directors approved the guidelines this week. “We are confident that the bidding will result in the best deal for government and motorists. Transparent and competitive biddings are a hallmark of the Aquino administration and have proven to be always beneficial to the public interest,” BCDA president and chief executive officer Arnel Paciano D. Casanova said. The BCDA is bidding out the rights, interest and obligations in the management, operation and maintenance of the SCTEX under a business and operating agreement for a period of 28 years ending in 2043. The SCTEX, a four-lane divided expressway, traverses the provinces of Bataan, Pampanga and Tarlac and is directly linked to the North Luzon Expressway. The BCDA and MNTC signed a business operating agreement on SCTEX in 2011, subject to the approval of the President. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Under the business and operating agreement, MNTC will operate and manage SCTEX for 33 years, while relieving BCDA of payment of the P34-billion debt to the Japan International Cooperation Agency for the construction of the tollway. Malacañang has ordered the price challenge for the SCTEX maintenance and operations management in the interest of transparency. The BCDA said MNTC will have the right to match the highest bid for the project Read More …

Del Monte selling $360-M preferred shares

Economy

Dec 062014

Del Monte selling $360-M preferred shares

MANILA, Philippines – Food processing giant Del Monte Pacific Ltd. (DMPL), a company listed in both Singapore and the Philippines, has decided to tap foreign investors for its preferred shares sale worth $360 million. In a disclosure to the local bourse late Friday, DMPL said it intends to conduct an international offering of up to $360 million to institutional investors. Based on an earlier filing with the Philippines’ Securities and Exchange Commission (SEC), DMPL was seeking approval to sell 36 million preferred shares at an indicative price of $10 a piece. The company intends to list the shares on the Singapore Exchange Securities Trading Ltd (SGX- ST) and has already submitted an application for the shares’ listing. “The company intends to pursue this international offering in lieu of the previously disclosed Philippine offering for timing and market considerations,” the firm said. DMPL said proceeds of the offering would be used to refinance the company’s acquisition of the consumer food business of US-based Del Monte Corp. earlier this year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 DMPL obtained a $350 million bridge loan from BDO Unibank, Inc. and another $15.6 million Metropolitan Bank and Trust Co. to acquire Del Monte Foods Inc. (DMFI). DMPL completed the acquisition of DMFI in February this year for nearly $1.7 billion, jumpstarting the transformation of the former into a global branded food and beverage firm. The acquisition was funded by a $970 million debt and $705 million equity, of which Del Monte financed Read More …

NGCP puts up Iloilo area control center

Economy

Dec 062014

MANILA, Philippines – The National Grid Corp. of the Philippines (NGCP), has put up an area control center in Iloilo as part of efforts to improve transmission operations. Serving as a nerve center, the Panay Area Control Center enables the system operator to monitor the grid situation in real-time and under all circumstances, NGCP said. The new control center inaugurated in October, is located inside NGCP’s Sta. Barbara Substation and houses top-of-the-line system, telecom equipment, and serves as satellite office of the Visayas System Operations. NGCP president and CEO Henry Sy, Jr. said the move to put up a nerve center is part of efforts to respond to Panay’s growing economy. “NGCP recognizes Panay’s potential, and NGCP is ready to respond to Panay’s growth, “ Sy said in his message during the center’s inauguration. “With this facility, our customers are assured of a more secure and efficient monitoring and control system for transmission facilities serving the area, particularly in places of interest for tourists and investors alike,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1

GSIS pensioners set to receive P2.42-B Christmas cash gifts

Economy

Dec 062014

GSIS pensioners set to receive P2.42-B Christmas cash gifts

MANILA, Philippines – The Government Service Insurance System (GSIS) will release P2.42 billion worth of Christmas cash gifts to pensioner members starting Thursday (Dec. 10). GSIS president and the general manager Robert G. Vergara said the amount is 15 percent more than the P2.1 billion disbursed last year. Old-age (retirement) and disability pensioners who have been receiving regularly their monthly pension and whose 2013 cash gift is above P10,000 will each receive an amount equivalent to their one-month pension not exceeding P12,600. Those whose 2013 cash gift is P10,000 and below are entitled to receive one-month pension but not to exceed P10,000. Retirees who availed of five-year lump-sum retirement benefit and had resumed their regular monthly pension after Dec. 31, 2013 will receive their cash gift for the first time this year in an amount equivalent to a month’s pension up to a maximum of P10,000. Pensioners living abroad and those in the Autonomous Region of Muslim Mindanao who are on suspended status as of Dec. 31 are also eligible to receive the cash gift provided they activate their status not later than April 30 next year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Survivorship and dependent pensioners, however, are not entitled to receive the benefit. Retirees who will be receiving their regular monthly pension after Dec. 31, 2014 are also not eligible to receive the benefit. Similarly, new retirees from 2010 to 2014 will only be entitled to the cash gift five years after their retirement date. Read More …

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