Construction seen to drive growth in next 3 years

 Economy
Mar 222014
 
Construction seen to drive growth in next 3 years

MANILA, Philippines – The construction industry will likely emerge as one of the main drivers of the economy in the next three years due to its strong growth potential, the research arm of Metropolitan Bank & Trust Co. said. “Given the base and seasonal effects, the construction industry still has a substantial upside potential in the next three years and would be one of the fast movers in the Philippine economy,” Mabellene Reynaldo, research analyst at Metrobank, said in a research note. “Private construction will still be propped up by steady real estate demand, especially as tight supply in Metro Manila drives growth in other regional hubs,” she added. “Reconstruction efforts in typhoon-damaged areas will also support both private and public construction values,” the Metrobank analyst further said. Construction contracted 0.8 percent in the fourth quarter last year, paling in comparison with a 29.9 percent growth seen in the same period in 2012, government data showed. This dragged last year’s construction growth to only 11.1 percent, slower than the 15.7 percent recorded in 2012. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The fourth quarter contraction so far is not indicative of a slowing construction industry,” Reynaldo pointed out. “A high fourth quarter 2012 base factored in the contraction, and private construction for the first nine months of 2013 was actually strong at 12.6 percent year-on-year,” she noted. The analyst also added construction work is done during the first half historically due to a wet season experienced by the Read More …

Sigh of relief

 Economy
Mar 222014
 
Sigh of relief

Just recently, the Manila Electric Co. (Meralco) announced a hefty slash in the utility’s deferred rate adjustments, resulting from the recent move by the Energy Regulatory Commission (ERC) to void the previous quarter’s prices at the Wholesale Electricity Spot Market (WESM). Meralco spokesperson Joe Zaldarriaga said the utility would cut the deferred charge for its January billings to just 45 centavos per kilowatt-hour (kwh), or just a tenth of its earlier announced P4.56 rate, in response to the drastic cut in WESM prices arising from the ERC-ordered recomputation by the Philippine Electricity Market Corp. (PEMC) of the spot market’s sky-high rates during the October-December period. For his part, Meralco utility economics chief Larry Fernandez explained that Meralco was able to effect such a significant cut because, following the ERC-ordered re-calculation, WESM prices last December fell to a per-kwh average of P8.33 from the original P36. “Kaya sumunod ang generation charge mula original na P10.23 per kwh, ay naging P6.12 per kwh,” he said. Credit must be given to the ERC which has finally mustered the guts to wield the state’s police powers in intervening in the spot market and imposing lower, regulated electricity prices in response to the alleged move by certain independent power producers (IPP) suppliers to create an artificial shortage and whip up WESM’s record rate spikes. Credit also goes to Energy Secretary Jericho Petilla, because everything started when he told the Supreme Court that regulators had been investigating the state-run Malaya Thermal Plant and 11 IPPs for Read More …

Saudi visitors to the Philippines up by 104% from 2009

 Economy
Mar 182014
 
Saudi visitors to the Philippines up by 104% from 2009

MANILA, Philippines – Saudi Arabian visitors to the Philippines more than doubled since 2009, the Department of Foreign Affairs (DFA) reported on Tuesday. “From only 19,101 Saudi visitors in 2009, the Philippines attracted a record 38,969 last year, a growth of 104 percent. Last year’s total was a growth of nearly 29.7 percent from the previous year, while the average growth of visitor arrivals since 2009 has been at 19.8 percent,” the state agency said. DFA said the spike in Saudi Arabian tourist arrivals came from the Embassy’s tourism promotion campaigns in the Middle Eastern country, in partnership with Saudi travel agencies accredited with the Philippine Department of Tourism (DOT). Last December, DOT officials went to Saudi Arabia to promote Philippine tourism in Riyadh. The event was attended by officials from the Saudi Chambers of Commerce and tour operators in the country. In April 2013, the Philippine Embassy in Riyadh and DOT also participated in the Riyadh Travel Fair. “The event drew 998 visitors, with many inquiring about holiday packages to prime destinations like Boracay, Palawan, Bohol’s Chocolate Hills and Panglao Island, and Davao’s Pearl Farm,” DFA said, adding that DOT and the embassy will be joining the event again this year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The DOT, in coordination with the Philippine Tourism Office in Dubai, also held a familiarization tour of Manila, as well as Tagaytay, Clark and Subic, for selected Saudi travel agents.  “It was an opportunity for them to personally see Read More …

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