Economy – Page 100

Soft remittances to persist – BSP

Economy

Sep 182016

BSP Deputy Governor Diwa Guinigundo said de-risking activities coupled with the soft oil prices would likely continue to affect the normal flow of remittances. Due to de-risking, low oil prices MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said soft remittance flows from overseas Filipinos could persist this year amid various de-risking activities by foreign banks and weak oil prices. BSP Deputy Governor Diwa Guinigundo said de-risking activities coupled with the soft oil prices would likely continue to affect the normal flow of remittances. “We are seeing the continuing narrative of de-risking, upsetting the otherwise normal flow of remittances. What exacerbates this is the continued weak oil prices dampening the propensity of Saudi Arabia, United Arab Emirates and other oil producing markets to provide jobs to our overseas workers,” he said. Guinigundo said the Arab Monetary Fund, the International Monetary Fund (IMF) and The World Bank have documented various cases of de-risking in the Middle East jurisdictions. “De-risking” refers to financial institutions exiting relationships with and closing the accounts of clients considered high risk. There is an observed trend toward de-risking of money service businesses and correspondent banks resulting in account closures in the US, the United Kingdom and Australia due to rising anti-money laundering and combatting the financing of terrorism scrutiny. As early as 2014, the BSP has raised concerns on the adverse impact of de-risking with relevant international institutions including the Financial Action Task Force (FATF), Alliance for Financial Inclusion, the Global Partnership for Financial Inclusion of Read More …

Exporters push reforms in tourism, hospitality sectors

Economy

Sep 182016

Exporters push reforms in tourism, hospitality sectors

Philexport president Sergio Ortiz-Luis Jr. said most of the group’s members are linked within the tourism supply chain such as in food, furniture, logistics and giftwares, thus reforms in the tourism and hospitality sectors are also critical for local exporters. MANILA, Philippines – Local exporters are pushing for policy and economic reforms to boost the country’s tourism and hospitality sectors which they claim remain lagging behind in the region. Among the reforms being proposed by the Philippine Exporters Confederation Inc. (Philexport) include market access and connectivity improvement through upgrading of the international and domestic airports and seaports, as well as reduction of foreign carrier operations cost and elimination of the common carriers and tax on gross Philippine billings. Other reforms seen by the group as imperative for bolstering industry growth include improving sea and road transportation services on safety and reliability, as well as development of competitive destinations, products and services. Philexport president Sergio Ortiz-Luis Jr. said most of the group’s members are linked within the tourism supply chain such as in food, furniture, logistics and giftwares, thus reforms in the tourism and hospitality sectors are also critical for local exporters. Ortiz-Luis stressed the vital contribution of the tourism sector to the country, with 34.8 percent of total employment or about five million Filipinos engaged in the food, beverage and accommodation sectors. He said the number is still outside the passenger transport sector which has recorded an even bigger employment share of 36 percent. Business ( Article MRec ), pagematch: Read More …

Group urges review of coal projects

Economy

Sep 172016

MANILA, Philippines – The government is being urged to review and revoke clearances to build coal projects as the Philippine Movement for Climate Justice (PMCJ) highlighted the dangers and worsening conditions in communities with coal-fired power plants. The PMCJ said it would raise the issues and sentiments of affected communities before the Department of Environment and Natural Resources (DENR). The group previously called for a moratorium on the issuance of Environmental Compliance Certificates (ECCs) to coal projects. “More than a moratorium, we urge the DENR to review the ECCs issued to coal projects and revoke upon finding of serious breach compromising the health and environment of host communities,” said Aaron Pedrosa, PMCJ’s head of energy working group. Pedrosa said there is a clear and present danger arising from continued reliance in coal projects for the country’s energy requirements, enough reasons to abandon coal developments. “Coal-burning has been identified as the single largest source of greenhouse gas emissions that is causing climate change. For a country identified as vulnerable to climate change impacts, promoting coal borders on the criminal as it would surely undermine the resiliency of communities to address climate change impacts from extreme weather events such as Yolanda to slow onset impacts like extreme El Niño,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In Luzon, eight coal fired power plants with 16 boiler units are already in the pipeline in Bataan, Quezon and Batangas, on top of the existing 22 plants. Citing a Harvard University Read More …

A mighty story

Economy

Sep 172016

Sep. 20 marks a very important date for the only wholly Filipino-owned cigarette manufacturing company as it celebrates its 71st anniversary. Mighty Corp. is a fully integrated tobacco company, with its factories located inside a nine-hectare property in Malolos, Bulacan, Philippines. It is engaged in both tobacco processing, which includes fermentation of tobaccos for the cigar-blended cigarillos, and cigarette manufacturing. The company has two cigarette manufacturing plants and one tobacco processing plant. It also has a complete threshing and redrying plant, which supplies the necessary requirements for the cigarette manufacturing operations of the company. The two cigarette manufacturing facilities answer for the two major product lines of Mighty. Here is a description of Mighty’s operations as told by one of their most loyal employees: “The company boasts of a complete cigarette product line, the cigar blended cigarillos and the American blended cigarettes. The cigar blended cigarillos are a blend of dark air cured tobaccos. Its distinctive aroma and flavor has made the products of Mighty bywords in the Philippine cigarette market. “Mighty produces the well-known products of La Campana Fabrica De Tabacos and Alhambra Industries. The two product lines of these two companies have a combined history of over a century, dating back to the Spanish colonial period. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “These cigarillos are known as Cortos and Regaliz Largos. The flavors of these cigarettes are a combined distinct Cigar Aroma and the smoothness of fully aged and fermented tobaccos. They are wrapped in Read More …

Arthaland selling P3-B shares

Economy

Sep 172016

MANILA, Philippines – Listed boutique property developer Arthaland Corp. formally filed with the Securities and Exchange Commission its application for a preferred share offering amounting to as much as P3 billion. Proceeds would be used to finance the development of the Cebu Exchange (P53.6 million), Biñan Laguna project (P458.8 million), Makati Residential (P371.6 million) and South of Metro Manila project (P822.4 million). Preferred shares are cumulative, non-voting, non-participating, non-convertible and peso-denominated. The company filed a three-year shelf registration for 30 million preferred shares. It intends to sell the peso-denominated preferred shares with a par value of P1 for P100 a piece. Based on its filing, Arthaland intends to initially offer P1 billion worth of preferred shares with an oversubscription option of another P1 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The net proceeds will be used to partially finance the acquisition and development of the company’s real estate projects, repayment of loans and general corporate purposes. The Cebu Exchange project is a commercial development located within the Cebu IT Park in Barangay, Lahug, Cebu City. The land was acquired by Arthaland subsidiary Cebu Lavana Land Corp. last year. The company expects to launch the project in the third or the fourth quarter of the year. Construction is expected to start in the second quarter of 2017. For the Biñan Laguna Project, Arthaland unit Cazneau will develop an 8.2-hectare residential community project in the province. It will the first campus-type residential community project and will feature a mix Read More …

City & Land sets issuance of P300-M comm’l papers

Economy

Sep 172016

City & Land sets issuance of P300-M comm’l papers

MANILA, Philippines – The Securities and Exchange Commission has approved the plan of City & Land Developer Inc. to issue P300 million worth of commercial papers. According to documents from the SEC, net proceeds from the offering would be used for project related costs (P74.5 million), payment of maturing loans (P23.5 million) and interest expense at (P1.2 million). Early this year, Cityland launched two new residential projects – the Grand Central Residences and Pines Peak Tower 1, which are both located in Mandaluyong City. Grand Central Residences, located along EDSA corner Sultan St., Bgy. Highway Hills, is a 40-story commercial, office and residential condominium while Pines Peak Tower 1, is a 27-story residential condominium is located along Union corner Pines Streets. Amenities include a swimming pool, gym, multi-purpose function room with movable playset, viewing deck and 24-hour association security. These condominium projects will be ideal for the fast-paced Filipino families who enjoy comfortable but affordable way of living. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Economically-designed residential units in Studio, one and two-bedroom types are now available in friendly and flexible payment scheme, City & Land said. Cityland Development was formerly known as Statehouse Land Development Corp. it has two subsidiaries, namely City & Land Developers Inc. and Cityplans. Among Cityland Development projects include Pines Peak Tower I, Grand Central Residences I, the Makati Executive Towers I, II and III, Corinthian Executive Regency, Manila Executive Regency and Rada Regency.

Philippine now treads ‘higher growth path’ — Pernia

Economy

Sep 172016

Philippine now treads ‘higher growth path’ — Pernia

MANILA, Philippines – With a growth trajectory that has been uninterrupted for 17 years and a robust economic growth average in the past six years, the Philippines has gotten out of the boom-and-bust cycle and is now traversing a “higher growth path,” said Socioeconomic Planning Secretary Ernesto Pernia. In a presentation during the general membership meeting of the Chamber of Thrift Banks on Thursday, Pernia said the average growth rate of 6.2 percent in the last six years has been the highest since the 1970s. “In earlier years, the Philippine economy was known to go through a boom-and-bust growth cycle. However, in recent years, the country has proven to get out of this cycle as we have been experiencing sustained high growth,” he said. In the second quarter of 2016, the country’s gross domestic product (GDP) accelerated to seven percent, faster than the previous quarter’s growth rate of 6.8 percent and 5.9 percent in the second quarter of 2015. With the first semester growth rate of 6.9 percent, the economy only needs to grow by 5.1 percent in the second semester to reach the lower end of the government’s growth target of 6.7 percent for 2016. Pernia said the low inflation in recent years fueled the expansion of the economy. In 2015, headline inflation rose by only 1.4 percent on the average. This was mainly due to the deceleration of non-food commodity prices such us housing, water, electricity and gas. Year-to-date headline inflation averaged 1.4 percent ending in July. Business Read More …

ERC thumbs down 11 power supply deals

Economy

Sep 172016

MANILA, Philippines – The Energy Regulatory Commission (ERC) has thumbed down 11 power supply deals deemed “legally defective.” The ERC dismissed each power supply agreement (PSA) applications of Biliran Electric Cooperative (BILECO) and La Union Electric Cooperative I (LUELCO) with GNPower Dinginin Coal Plant Ltd. Co. (GNPD), a joint venture among GNPower AC Energy Holdings Inc. of the Ayala Group and Sithe Global Power LLC. The power regulator also denied the PSA application of Cotabato Electric Cooperative (COTELCO) & Western Mindanao Power Corp. (WMPC) of the Alsons Group and of Camarines Sur IV Electric Cooperative Inc. (CASURECO IV) & Unified Leyte Geothermal Energy Inc. (ULGEI) of the Lopez Group. The applications of several electric cooperatives with San Miguel Corp. (SMC) related power plants were also denied. The ERC dismissed the PSAs of Cebu I Electric Cooperative (CEBECO I) and Cebu II Electric Cooperative (CEBECO II) with Mariveles Power Generation Corp. (MPGC), a joint venture between SMC Global Power Holdings Inc. and Meralco Powergen Corp. that is building a 4×150-MW circulating fluidized bed coal-fired power generating facility in Mariveles, Bataan. Also thumbed down were the PSAs of Davao del Norte Electric Cooperative (DANECO), Siargao Electric Cooperative (SIARELCO), Misamis Oriental I Electric Cooperative (MORESCO I) and Zamboanga del Sur Electric Cooperative (ZAMSURECO I) with San Miguel Consolidated Power Corp. (SMCPC), which is developing a coal-fired power plant in Malita, Davao. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Lastly, the power regulator dismissed the PSA between Nueva Vizcaya Electric Cooperative Inc. Read More …

Asean bloc to promote asset class, corporate governance

Economy

Sep 172016

Asean bloc to promote asset class, corporate governance

MANILA, Philippines – Members of the ASEAN Capital Markets Forum (ACMF) including the Philippines have agreed to intensify efforts to promote ASEAN asset classes and promote corporate governance and other initiatives to support the ASEAN Economic Community (AEC). This was the result of the ACMF’s 25th meeting, hosted by the Indonesia Financial Services Authority (Otoritas Jasa Keuangan) in Jakarta early this month. During the meeting, the ACMF also agreed to introduce an annual ASEAN Capital Market Conference as a platform to discuss opportunities in ASEAN capital markets and to showcase ASEAN asset classes. The inaugural conference will be conducted in the first half of 2017. The members of ACMF also noted the progress of implementation of the ACMF Action Plan 2016 to 2020 that will support the objectives of the AEC. A key initiative in the Action Plan is to foster greater mobility of professionals within the region by establishing a working group on professional mobility to introduce rules to facilitate cross-border movement of capital market professionals on a phased basis. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The ACMF also acknowledged the progress of the holistic review of the ASEAN Corporate Governance Scorecard and assessment methodology, which is being spearheaded by the Philippines’ Securities and Exchange Commission (SEC). Overall, the members reiterated the importance of corporate governance as a key component of the ACMF’s efforts in promoting the investability of ASEAN public-listed companies. Ranjit Ajit Singh, chair of the ACMF, said discussions with international dialogue partners and industry Read More …

Property, telco firms back IT-BPM roadmap

Economy

Sep 172016

Property, telco firms back IT-BPM roadmap

MANILA, Philippines – Real estate developers and telecommunications companies have pledged their support for the development of the country’s information technology and business process management (IT-BPM) sector which will soon embark on a new six-year growth path. The Information Technology and Business Process Association of the Philippines (IBPAP) said the country’s biggest property and telecommunications players vowed to put up better quality buildings and infrastructure in their bid to create an ecosystem that will sustain more inclusive growth for the IT-BPM sector. These firms include Ayala Land, Double Dragon Properties, Federal Land, Filinvest, Globe Telecom, Leechiu Property Consultants, Megaworld, PLDT, Profriends, Robinsons Land, and SM Prime Holdings, the IBPAP said. “All these years, our roadmap partners have been our strong allies in building the industry through connectivity and building robust, world class 24/7 communities that IT-BPM companies need. They continue to play a crucial role as the 1.2 million strong industry charts its course over the next six years,” said Benedict Hernandez, IBPAP’s executive committee chairman. Hernandez said the property and telecommunications giants maintained their commitment to further support the growth of the sector by continuously aligning with IT-BPM companies’ needs and ICT demands as they continue to expand into areas outside Metro Manila, transforming previously untapped and undeveloped localities into bustling IT-BPM hubs. “Our collaboration and partnership will remain key to realizing the new roadmap ambitions, especially as we focus even more on countryside development,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 IBPAP and research Read More …

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