Sep 112016
 
PLDT sees tough Q3 net earnings

MANILA, Philippines – PLDT Inc. expects a tough third quarter in terms of net earnings. “It’s gonna be a tough third quarter. The typical story, it’s really wireless being the epicenter of the issues,” PLDT Inc. chairman and CEO Manuel V. Pangilinan told reporters on the sidelines of the Be the Boss Awards 2016. PLDT generated P55.47 billion from wireless businesses provided by Smart Communications and Digitel Mobile Philippines Inc. (Sun Cellular), as well as wireless broadband services in the first semester. The amount was down four percent from P58.09 billion a year ago. Pangilinan said the company also expects to see a slight erosion in the mobile subscriber base due to stiff competition. The PLDT Group had a total of 64.47 million subscribers as of end-June, down from the 68.86 million in the same period last year.  Pangilinan said the home and enterprise business units, meanwhile, are seen to post better performance this year compared to last year.  Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As of the first semester, PLDT’s consolidated core income reached P17.7 billion, down six percent from P18.9 billion last year. The telco’s net income for the January to June period reached P12.5 billion, 33 percent lower than the P18.7 billion in the same period a year ago.  PLDT has set a core income guidance of P30 billion this year. The company ended 2015 with core net income of P35.2 billion, in line with its guidance for the year.  PLDT, which initially set Read More …

Sep 112016
 
Yap seeks implementation of crop insurance coverage

MANILA, Philippines – A weather-based crop insurance coverage for farmers is being pushed by a former Agriculture secretary now serving as a legislator at the House of Representatives. Bohol Rep. Arthur Yap, who served during the Arroyo administration, wants to protect farmers from the effects of climate change by ensuring they get money depending on the weather. “This can be part of the package of social protection for the poor to help them stay afloat and be one of the tools that we can use to increase food security,” Yap said. “If we can afford to give P60 billion to P70 billion for CCT (conditional cash transfer), why can’t we set aside for index-based insurance?” he added. Under House Bill 40, farmers will be paid cash depending on the measures of indices of wind, water and dry spell, among others, as computed by the state weather bureau. The index-based program could also be triggered by extreme weather conditions, which may impact from the planting to the harvesting of crops. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Currently, the Philippine Crop Insurance Corp. pays only up to P1 billion to cover for damaged crops. This, even as data showed that the country is losing around P40 billion every year from it. “That does not even cover all crops and that is the very eloquent testimony to the absence of crop insurance in the country. Without that, how are you gonna protect the farmers?” Yap said. Yap emphasized that the Read More …

Sep 112016
 
Index may recover this week

The benchmark Philippine Stock Exchange index (PSEi) may recover up to 7,780 this week after a weak performance last week, analysts said. MANILA, Philippines – The benchmark Philippine Stock Exchange index (PSEi) may recover up to 7,780 this week after a weak performance last week, analysts said. According to Jonathan Ravelas, chief market strategist at Banco de Oro (BDO), a pullback, if it does happen, may be limited. “The week’s close at 7,581.79 suggests the market still has some room to test the 7,500 levels in the near-term. Failure for the 7,500 levels to hold could call for further losses toward the 7,250 levels. However, given the decline for the fifth straight week, a pullback could occur but limited toward the 7,760 to 7,780 levels,” Ravelas said. Last week, the main composite index fell 2.89 percent to 7,581.79. Analysts attributed the decline to a series of unfortunate events, with a looming US Federal Reserve hike among the biggest of such factors. President Duterte’s tirade with US President Barack Obama also added to the uncertainty as investors deem that the Philippines cannot afford to strain ties with the US. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Market participants are waiting for the US Federal Open Market Committee meeting scheduled on Sept. 22. For Victor Felix, equity analyst at AB Capital, immediate support is seen at 7,550, which may serve as a technical rebound point. “Overall, we may continue to trade lower next week on increasing downward momentum. That said, Read More …

Sep 112016
 
ERC, Meralco work out another settlement

MANILA, Philippines – The Energy Regulatory Commission (ERC) is working on another settlement with Manila Electric Co. (Meralco) after the power distributor asked a local court to stop the new rules on the retail competition and open access (RCOA). “We’re preparing our defense. Meralco’s doing the same. In the meantime, we’re trying to talk to them,” ERC commissioner Alfredo Non told reporters. “I have talked to (Meralco president and CEO) Oscar Reyes, (Meralco senior vice-president) Al Panlilio to see how we can manage the earlier settlement,” he added. In May, Meralco sought court relief after the government issued new RCOA rules that it claimed were not in accordance with Republic Act 9136 or the Electric Power Industry Reform Act and its implementing rules and regulations. The company secured a temporary restraining order from the Pasig regional trial court, but ERC said it has no jurisdiction over the case. Currently, other qualified RES are continuing under the RCOA scheme. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The injunction on the new RCOA rules only brings disadvantage to distribution utilities (DUs) like Meralco because this prevents them from participating in the open market, the ERC commissioner said. “I cannot understand why DUs like Meralco and VECO would oppose the change. The longer they are in injunction, the longer they cannot participate in the CREM (Competitive Retail Electricity Market),” Non said. Under the RCOA regime, end-users who are part of the contestable market, or contestable customers, are given the choice to Read More …

Sep 112016
 
The market is dropping… what now?

Last month (Aug. 13), we held our investor briefing at the Meralco Theater. As with our other briefings, we devoted time for a Q&A portion to answer questions from the audience. In this column, we share our answers to some of the common questions or concerns that were raised during the briefing. We believe these topics are still relevant given recent developments and current market conditions. 1. The ghost month just ended. Should we expect the stock market to start performing better soon? The ghost month for this year started on Aug. 3 and ended on Aug. 31. For that period, the PSE Index posted a 3.1 percent loss. Though the ghost month is over, we note September is also a relatively weak month. In a recent article, we showed September has an average return of -1.4 percent, with a 48 percent chance of declining (Who’s afraid of ghosts?, Aug. 1). Although it is very hard to predict what will happen to the stock market in the short term, we use historical data to uncover seasonal patterns in the stock market. In our book “Opportunity of a Lifetime” (page 196), we said we use August and September as buying windows since they are seasonally weak months for stocks. We do the buying during the weak months of the year in preparation for December and January, which are the strongest months of the year. December has an average return of +3.9 percent while January has an average return of +3.4 percent. Read More …

Sep 112016
 
Presidential Miscommunications Office

In the olden days, the press secretary was the Cabinet official responsible for dealing with the press. There was no presidential spokesman… it was just the press secretary. Usually, the position was held by a seasoned former journalist. This is because the position calls for a notable professional experience as a newsman and also a strong relationship with the working press. The press secretary must be able to anticipate the needs of newsmen working against a deadline. He must know what is news and is able to present the day’s stories in a way that would be clearly understood and attract maximum attention from reporters, editors and readers.   As a journalist, having a former colleague as press secretary also means there is this important element of trust… no bum steers. He will not, for instance, claim Duterte will sit between Obama and Ban Ki Moon even if he is not sure it will happen… it didn’t. Mutual respect between news source and reporter is essential. Things are admittedly more complicated now. The press is still there, broadcast media, and now the most difficult of all, social media. There are more people speaking on behalf of the president. Aside from the communications secretary and presidential spokesman, the presidential legal counsel just can’t help himself when a microphone is before him. It is a mess. In the latest flap on Obama, all three people had something to say plus the Labor and Tourism secretaries too. All were eager to do damage control Read More …

Sep 112016
 
Philippines profits from Australia’s trade gains

Aerial view of the 34.5-hectare VICT in Melbourne. ICTSI soon to open world’s most modern terminal  MELBOURNE – By the time Victoria International Container Terminal Ltd. (VICT) starts operations at its new 34.5-hectare cargo port in Melbourne before the year ends, it would have firmly established its parent firm, International Container Terminal Services Inc. (ICTSI), as a global powerhouse in the industry. With 30 terminals spread across 20 countries – including highly-industrialized economies such as the US and China – in six continents, ICTSI has gone Down Under, raising the bar in cargo handling as it touts the “only terminal in the world built without any human body on the land site.” Shelling out A$550 million (about US$415 million) for the project – the company’s third biggest investment after the Manila flagship and Ecuador – ICTSI will utilize cutting-edge technologies and innovations for a fully-automated process from the gate to the quayside. “This will change the logistics landscape in Australia,” said Christian Gonzalez, ICTSI senior vice president and head of Asia Pacific operations, at a recent briefing for Philippine-based media here. Gonzalez “For the first time, post-Panamax cargo ships will be handled in Australia, greatly benefitting both exporters and importers as they can transport larger shipments that otherwise would just pass by and dock in other ports,” he explained. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He noted while the company’s 100-hectare Manila International Container Terminal has the capacity to handle post-Panamax vessels since the early 1990s, MICT Read More …

Sep 112016
 
HIMAP earns $1.9 B in 2015

MANILA, Philippines – The country’s healthcare information management service industry employed 100,000 people last year and generated $1.9 billion in revenues, the Healthcare Information Management Association of the Philippines (HIMAP) said. HIMAP president Beng Coronel said the industry is on track to hitting its target of employing 210,000 people by 2022, translating to a 100 percent jump in revenues to about $5 billion. Actual revenue growth could even be higher given the potential of the industry, Coronel said. “This is a conservative growth in revenue forecasted at 250 percent from $1.9 billion in 2015 and these figures were shown during last year’s conference,” she said. The industry has been growing since 2011 with service providers showing strong capability to offer more work. It has diversified from just medical transcription such as medical coding, medical billing, outpatient care services, telemedicine, pharmaceutical and healthcare application support. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As the industry continues to grow, it is expected to offer a wide array of career opportunities for healthcare professionals including nurses who often find it difficult to find gainful opportunities in the country. HIMAP is organizing the Global Convergence Enabling Inclusive Care and Innovation seminar on Sept. 15. The conference is expected to look into stakeholder roles in healthcare and how some trends disrupt the growth and innovation in healthcare industry. Coronel said the conference aims to look back at the achievements of the industry and look forward to opportunities for sustained growth. “It will feature presentations and briefings by industry Read More …

Sep 112016
 
In place of quantitative restrictions: NEDA to pursue strategic trade on rice

MANILA, Philippines – Farmers are expected to diversify their crops and explore other “strategic” products that may be exported and give them better incomes once restrictions on rice imports are lifted next year. “What we want, really, is to have a very strategic trade policy with respect to rice and be more strategic also with respect to agriculture,” said Rosemarie Edillon, deputy director-general at the National Economic and Development Authority (NEDA). “There (are) still a number of farms in the Philippines that can compete with world prices given more competitive conditions. But for some of them, they really have to diversify outside of rice,” she said in a recent interview. Quantitative restrictions on grain importation will expire next year and will not be renewed by the Duterte administration which wanted market forces to dictate rice prices. The restrictions were protecting local farmers from foreign rice imports by imposing a high 35-percent tariff rate after reaching a particular shipment ceiling. Earlier, NEDA director-general Ernesto Pernia said not only will QR not be re-imposed, but that the government will exit rice import business through the National Food Authority (NFA). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Under the plan still being drafted, Edillon said a specific tariff rate will be imposed on private sector importation. While there is nothing confirmed yet, she said the present 35-percent rate applicable under the free trade agreement of the Association of Southeast Asian Nations could be explored. “In the past, we have been artificially protecting Read More …

Sep 112016
 
Healthcare revenues reach $1.9 B in 2015

MANILA, Philippines – The country’s healthcare information management service industry employed 100,000 people last year and generated $1.9 billion in revenues, the Healthcare Information Management Association of the Philippines (HIMAP) said. HIMAP president Beng Coronel said the industry is on track to hitting its target of employing 210,000 people by 2022, translating to a 100 percent jump in revenues to about $5 billion. Actual revenue growth could even be higher given the potential of the industry, Coronel said. “This is a conservative growth in revenue forecasted at 250 percent from $1.9 billion in 2015 and these figures were shown during last year’s conference,” she said. The industry has been growing since 2011 with service providers showing strong capability to offer more work. It has diversified from just medical transcription such as medical coding, medical billing, outpatient care services, telemedicine, pharmaceutical and healthcare application support. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As the industry continues to grow, it is expected to offer a wide array of career opportunities for healthcare professionals including nurses who often find it difficult to find gainful opportunities in the country. HIMAP is organizing the Global Convergence Enabling Inclusive Care and Innovation on Sept. 15 to discuss ways on how to further grow the industry. The conference is expected to look into stakeholder roles in healthcare and how some trends disrupt the growth and innovation in healthcare industry. Coronel said the conference aims to look back at the achievements of the industry and look forward to opportunities for sustained Read More …