THE BUREAU of Customs (BoC) could lose at least P40 billion this year in collections and miss its target in 2015 as world oil prices continue to slump, Commissioner John Phillip P. Sevilla said last week.
THE POWER Sector Assets and Liabilities Management Corp. (PSALM) is banking on privatization proceeds and earnings from operations to settle P40 billion worth of debt maturing this year, an official said last week.
IN THIS second installment of the series on Base Erosion and Profit Shifting (BEPS) 2014 deliverables, we will discuss the recommendations of the Organization for Economic Co-operation and Development (OECD) on how to neutralize the effects of Hybrid Mismatch Arrangements.

FOR 35 YEARS, Margarita Rola and her husband, Juanito, would set up makeshift stalls at the public market in Aguilar town in Pangasinan province three times a week to sell tomatoes and bell peppers harvested from their garden in the upland tribal community of Mapita in Barangay Laoag. They would hitch on cramped passenger jeepneys or trucks that transported the produce of other farmers from their village for the one-hour ride to town. But on their way back, the Rolas would often hike uphill for four to five hours, most of the time carrying the tomatoes and bell peppers that were not bought. The village, where some 1,000 indigenous residents belonging to the Kankanaey, Ibaloy and Bago tribes had settled in the 1960s, is nestled in a 496-hectare rolling terrain of the Zambales mountain range, about 15 kilometers from the town. The villagers till some 150 hectares of land surrounding the settlement, planting rice, corn, vegetables and root crops. “It was very hard for us then,” said Rola, 57. “People in the market would buy our produce for P2 or P3 a kilo, and we still had to take home what we were not able to sell. We earned barely enough for us to buy our basic needs for the day.” But in 2011, Rola and 23 other vegetable farmers in the village stopped setting up makeshift stalls at the market. In January that year, they boarded a rented truck to deliver their harvest to the Jollibee Foods Corp. (JFC) Read More …

MANILA, Philippines – Five trade missions are expected to arrive in the country from the United Kingdom (UK) starting next month until the end of the year to explore business opportunities, the UK Trade and Investment (UKTI) said. UKTI director for Manila Iain Mansfield told reporters that following the trade mission focused on healthcare which visited the country just this week “we can expect five more missions (from the UK) this year.” The trade mission focused on healthcare was composed of eight firms. Mansfield said two trade missions are expected next month, with one focused on the financial services and the other on education. Mansfield said Lord Mayor of the City of London Alderman Alan Yarrow who is the representative of the UK’s financial and investment services, would be in the country from Feb. 12 to 13, and lead a trade mission composed of at least five firms engaged in financial services. The visit is intended to support and promote the UK-based financial and related professional services industry. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 During the visit, the Lord Mayor would meet with government officials such as Finance Secretary Cesar Purisima and Bangko Sentral ng Pilipinas Gov. Amando Tetangco, Jr. The visit is seen as a good time to explore opportunities here amid the Philippines’ move to liberalize the entry of foreign banks in the country through Republic Act (RA) 10641. RA 10641 signed by President Aquino in July amended RA 7721 which only allowed the entry Read More …

MANILA, Philippines – Car sales should continue to accelerate this year as domestic economic growth remains robust, the research arm of Metropolitan Bank and Trust Co. said. “Expect the automotive industry to have another banner year this 2015 as economic prospects continue to be positive,” Mabellene Reynaldo, research analyst at Metrobank, said in a recent report. “Manageable inflation and record-low oil prices are also expected to support demand. Additional spending may also be seen as the 2016 elections draws near,” she added. Latest government data showed Philippine economic growth slowed to 5.3 percent in the third quarter of last year from 6.4 percent in the second quarter. This brought the nine-month growth rate to 5.8 percent, below the government’s 6.5 to 7.5 percent target. The International Monetary Fund and World Bank, however, expect growth to pick up this year from last year’s performance. The IMF forecast economic expansion at 6.6 percent, while the World Bank sees it at 6.5 percent. Vehicle sales last year went up 30 percent to a record-high of 234,747 units from 181,283 in 2013, combined data from the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association Inc. (TMA) showed. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Sales of passenger cars climbed by 48 percent year-on-year in 2014 as new models were introduced and growing purchases in the small category. Robust income growth and low interest rates also fueled automotive demand,” Reynaldo said. “As of the end of third Read More …

MANILA, Philippines – The Aquino administration has awarded another Public-Private Partnership (PPP) project after the Department of Transportation and Communications (DOTC) named the group of Filipino-owned Megawide Construction Corp. as the winning bidder for the P2.5-billion Integrated Transport System – Southwest Terminal. Transportation Secretary Joseph Emilio Abaya said in a text message that the agency’s Bids and Awards Committee (BAC) has awarded the PPP project to Megawide’s MWM Terminals. This brings to nine the number of PPP projects worth P135.36 billion awarded by the Aquino administration which has raised a premium payment of over P36 billion. Aside from the ITS – Southwest Terminal, the government has awarded the Daang Hari – South Luzon Expressway link road (P2 billion), PPP for School Infrastructure Project phase 1 (P8.86 billion), the PSIP-2 (P16.28 billion), the modernization project for the Philippine Orthopedic Center (P5.98 billion), the Ninoy Aquino International Airport expressway (P15.52 billion), the automated fare collection system project (P1.72 billion), the Mactan – Cebu International Airport expansion project (P17.5 billion), and the Light Rail Transit line 1 Cavite extension project (P65 billion). On the other hand, Megawide has bagged five of the awarded PPP projects, including the Mactan Cebu International Airport expansion program together with Bangalore-based GMR Infrastructure; the modernization of Philippine Orthophedic Center together with World Citi; the P16.42 billion PPP for School Infrastructure project phase I; and the P3.86 billion PSIP phase II. MWM Terminals submitted an annual grantor payment (AGP) of P100 million, while Filinvest Land Inc. of taipan Andrew Read More …

MANILA, Philippines – One of the largest agriculture technology exhibitors in Thailand is holding a nine-day trade show in March featuring the latest solutions in animal industry, horticulture, and farm machinery. VNU Exhibitions Asia Pacific Co., Ltd. will hold the AGRI-Food Business Week Asia at the Bangkok International Trade and Exhibition Centre (BITEC) at the capital city of the neighboring Southeast Asian Nation from March 11 to 19. The trade show would be divided into three events: VIV Asia, which would showcase technologies for animal industry; Horti Asia, the show for horticultural solutions and Agri Asia, which would display farm machinery that covers the entire supply chain from pre-harvest to post-harvest. VIV Asia would be held from March 11 to March 13 while HortI Asi and Agri Asia would be held from March 17 to 19. In a recently-held press briefing, organizers said the trade show would showcase technologies and innovations from over 1,000 companies from 100 countries. The show is expected to bring together entrepreneurs from various countries such as Netherlands, Germany, Taiwan, Vietnam, Indonesia, Myanmar and China among others. VIV Asia project manager Ruwan Berculo said several Philippine-based companies such as San Miguel Corporation are expected to send representatives to the event to view the latest technological advancements in agriculture. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Aside from the actual trade shows, visitors can also attend seminars related to the exhibited products and meet international industry experts.

NEW YORK — Oil prices rose initially on news of the death of Saudi Arabia’s powerful King Abdullah, but the increase was moderate and short-lived. The king’s death is unlikely to lead to a change in the kingdom’s immense crude production or change the course of oil prices in the coming months, analysts say. The benchmark U.S. crude futures contract rose more than $2 a barrel in the hours after the king’s death was announced Thursday evening in New York. But by the time commodity markets opened Friday those gains had been largely erased. In morning trading, U.S. oil was up 18 cents to $46.49 a barrel. Brent crude, an international benchmark, was up 80 cents to $49.32 a barrel in London. The small rise reflects added uncertainty about Saudi oil policy because the country’s new absolute monarch, Abdullah’s 79-year-old half brother Prince Salman, is in poor health. “It is necessary to stay watchful about Saudi politics,” said Oh Jeong-seok, head of commodity markets at state-run Korea Center for International Finance. “As he is nearly 80 years old and his health isn’t in good condition, that itself is uncertain. The price of oil goes up when there is an uncertainty.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Still, the months-long slump in oil prices that is providing a boost to the stumbling world economy is unlikely to reverse unless Saudi Arabia cuts production or world demand starts strengthening again. Some analysts think Saudi production won’t be lowered anytime Read More …

It is simply amazing that days after the special Philippine Air Lines flight that carried Pope Francis took off from NAIA, the ‘Francis fever’ is still raging. The recent visit is still fodder for the daily television shows, particularly the news, and people still stay glued for anything about Pope Francis and how Filipinos’ lives were touched by the 78-year-old Pontiff whose smile has an uncharacteristic glint of playfulness unique to him. During the entire five-day visit, the leading networks picked out families who braved everything just to be physically present at the masses he officiated at the SM Mall of Asia or at the Quirino Grandstand. During the entire five-day holiday, we stayed home for a much-needed rest, nursing a nasty cold and cough, but we stayed glued to our TV set, hearing mass with the Pope on TV, one with literally millions of Filipinos struck with the Pope fever. At the mass at what was once known as the Independence Grandstand, we marveled at the well-behaved crowd and wondered how communion would go with the endless rows of people waiting and saw how the people in front would pass on the host to others behind them, by hand, so everyone could get accommodated. The communion alone must have taken about 20 minutes as so many lay ministers mingled with the mammoth crowd. Pope Francis waited patiently at the altar until the last communicant had received the host. Such was the devotion and utter respect of the Filipinos, for Read More …