Phl making big push to lift agri, other sectors

 Economy
Jul 042013
 
Phl making big push to lift agri, other sectors

MANILA, Philippines – The Aquino Administration is making a big push to expand its  manufacturing,  agriculture, infrastructure and tourism sectors as it works toward achieving sustainable, inclusive growth. Budget and Management Secretary Florencio Abad said the government would focus its efforts on attracting investments into the country as well as creating jobs to keep the local economy moving forward.  “There’s going to be a greater push for expansion in industries because of the challenge of inclusive growth, that’s why more investments are needed to promote poverty reduction and job generation,” Abad said. In particular, he said the Aquino Administration is looking to get more investments into the country’s infrastructure development program as it rolls out more projects to boost infrastructure spending to five percent of GDP by 2016.  Abad said increased infrastructure spending would help spur the growth of key industries like agriculture and tourism while at the same time getting more people into work. Between now and 2016, the government must adopt measures to create a total of 14.6 million jobs. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We’re going to be rationalizing the infra program because unlike in the past, each agency was worrying about its own infra program.  But since we’re very clear about economic targets, this time around we have to operate differently, meaning there has to be somebody who will oversee the government’s infra plan,” he said. In the five months ending May this year, government infrastructure spending reached P106.4 billion, up 35.6 Read More …

Business leaders write Noy: Overhaul customs, develop ports

 Economy
Jul 032013
 
Business leaders write Noy: Overhaul customs, develop ports

In this June 1 file photo, Customs Commissioner Ruffy Biazon (left) inpsect three container vans of sugar, misdeclared as engine and aircon parts seized by authorities. The 1,521 bags are estimated at around P5 million. MANILA, Philippines – International and local business leaders drew eight recommendations to President Benigno Aquino III to facilitate inclusive growth within his term, including an overhaul of the Bureau of Customs as well as the country’s gateways. “It is imperative to overhaul the Bureau of Customs and to create an oversight body with private sector representations,” heads of 14 business groups including Makati Business Club president Ramon del Rosario Jr., Philippine Chamber of Commerce and Industry acting president Antonio Lopa and the American Chamber of Commerce president Rhicke Jennings said in the letter received by the Office of the President last June 21. The letter said that the estimated P100 billion lost from smuggling can instead be used for social programs and infrastructure. “Smuggling continues to derail your efforts on revenue collection and job generation,” it says. The groups also advised Aquino to pass a measure that would ensure that the country’s customs procedures comply with the Revised Kyoto Convention recognized by the international community. The immediate implementation of transportation infrastructure projects was also among the groups’ recommendations, highlighting the need to develop the Ninoy Aquino International Airport among others. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 De-clogging of the Port of Manila at Manila Bay  and the connection project of major highways NLEX Read More …

BSP asks banks to prepare for US FATCA implementation

 Economy
Jul 032013
 
BSP asks banks to prepare for US FATCA implementation

MANILA, Philippines – Financial institutions were asked to prepare for the effectivity of a US order next year targeted at running after American tax evaders offshore and seen having an impact on their operations. Local and foreign firms transacting with “US persons” will be hit next year by the Foreign Account Tax Compliance Act (FATCA), which orders the charging of taxes against any non-compliant financial institution engaged with US citizens. The Bangko Sentral ng Pilipinas (BSP), in a memorandum, said its supervised institutions – including commercial and investment banks – must “evaluate” if they are covered by FATCA and if applicable, must “establish a policy” to comply.  “They are advised to study the potential effects of FATCA to their businesses and determine the necessary steps to take to avoid the unfavorable consequences of non-compliance with FATCA requirements,” said Memorandum 2013-030 dated July 1. FATCA is part of the US’s Hiring Incentives to Restore Employment Act enacted into law in 2010 as part of stimulus measures to boost US economic activity and employment. According to the US Internal Revenue Service (IRS), firms may register between this month until Oct. 25 through its online portal to become “FATCA-compliant.” In doing so, they are agreeing to provide “certain information” to the IRS concerning US accounts they hold. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In addition, US citizens who have foreign assets in excess of $50,000 must report their holdings to the IRS. If they chose not to register though, FATCA Read More …

Approved PEZA investments up 92% to P83.7 B in H1

 Economy
Jul 032013
 
Approved PEZA investments up 92% to P83.7 B in H1

MANILA, Philippines – Investment pledges approved by the Philippine Economic Zone Authority (PEZA) grew by over 90 percent in the first semester from a year ago as more companies expressed plans to set-up manufacturing facilities in the country. PEZA director general Lilia De Lima told reporters in a chance interview yesterday investments approved by the agency for the January to June period amounted to P83.692 billion, posting a 91.9 percent growth from the P43.611 billion in the same period last year. “The biggest chunk (of approved investments) was for electronics,” she said. She said most of the investments were from Japanese companies. The government is optimistic the country could attract more foreign investments as the Philippines is now being considered as a place to do business by European companies. “What is good is we are now on the radar screen of European investors,” De Lima said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Given the recent visit of high-level European government officials to the Philippines, European Union Ambassador Guy Ledoux told reporters firms from that region are most likely to check out investment opportunities here. Apart from European firms, American companies are likewise looking at the country as an investment destination. De Lima said that during a recent trip to the US, firms engaged in manufacturing and information technology have expressed interest to set-up facilities here. She said the Philippines is being considered as a place to make investments given its skilled and young workforce. With more foreign Read More …

Bonds to benefit from calm – Barclays

 Economy
Jul 032013
 
Bonds to benefit from calm – Barclays

MANILA, Philippines – The bond market is likely to benefit from the calm in the financial markets with investors expected to prefer “safer” investment  instruments once they return to Asia, an investment bank said. For the first time in more than two weeks, British bank Barclays said investors have shifted to buying mode in Asian markets, as fears of US’s trimming down stimulus measures later this year recede. “Going forward, we expect more of the same: bonds performing in line with the risk indicators as we think investors will likely to get back into safer markets first,” the bank said in a research note. On Tuesday, Barclays noted bonds from India, Malaysia and Thailand benefitted from huge inflows, followed by those in South Korea, Singapore and Indonesia. There was no mention of the Philippines in the report. The performance of regional bonds, the bank said, could be partly attributed to the participation of local investors in the market, which cushions outflows coming from the flight of foreign placements. Even then, Barclays said there has been some “resilience” in the bond market even during the financial turbulence driven by fears cheap money from the US – most of which flowed to emerging markets – would soon be gone. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Even though external risks loom large, the resilience of institutional portfolio flows is encouraging and challenges the assumption that large foreign holdings of local government debt are the key to underperformance in a sell-off,” Read More …

SEC seeks reversal of CA ruling on John Hay condotel sales

 Economy
Jul 032013
 
SEC seeks reversal of CA ruling on John Hay condotel sales

MANILA, Philippines – The Securities and Exchange Commission (SEC) has sought a reversal of the Court of Appeals’ (CA) decision that allowed Camp John Hay’s private developer to sell condotel units. In a statement, the SEC said it filed on June 28 a motion for reconsideration regarding the CA’s ruling that favored Camp John Hay Development Corp. (CJHDevCo) and Camp John Hay Suites Corp. (CJHS). SEC chairperson Teresita J. Herbosa said they “hope that CA finds merit in the arguments presented by the SEC in its motion for reconsideration.” “Otherwise, the CA decision, as it stands presently, hamstrings the SEC’s efforts at weeding out investment schemes not registered with the SEC to the detriment of the investing public,” she added. Last month, the appellate court allowed the private developer of Camp John Hay in Baguio City to proceed with the sale of securities for the operation of The Manor Hotel. The CA’s Sixth Division granted the petition of CJHDevCo, which permanently enjoined the SEC from implementing its cease-and-desist order against the sale. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The case is just one of the latest in the SEC’s continued battle to safeguard the public from falling victim to unlawful business schemes,” the corporate regulator said. Until CA resolves the motion for reconsideration, the cease order against CJHDevCo and CJHS remain effective, SEC said. State-run Bases Conversion and Development Authority earlier claimed that the sale of the units of The Manor and The Suites with leaseback or Read More …

Puregold forms food retailing unit

 Economy
Jul 032013
 
Puregold forms food retailing unit

MANILA, Philippines – Grocery chain Puregold Price Club Inc. has created a new subsidiary to jumpstart its venture into food-retailing. In a regulatory filing, Puregold said it has formed Estenso Equities Inc. that will “house investments of Puregold to other food-retail related activities.” “Estenso Equities is just a shelf-ready subsidiary of Puregold for possible future joint ventures with third parties in food-related retail business,” Jimmy F. P. Perez, investor relationas officer of Puregold, said in a text message. Late in May, Puregold’s parent firm Cosco Capital Inc. raised P16.8 billion in fresh capital from the sale of existing and new shares to investors. Of the proceeds, 50 percent will be used to expand the selling area of Puregold-anchored commercial real estate properties and increase the oil and petroleum storage of Pure Petroleum. Around 20 percent is allotted for the acquisition of non-food retail businesses like hardware and pharmacies. Another 20 percent was allocated for debt payments and the remaining 10 percent to improve its distribution network. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the first quarter, Puregold more than doubled its earnings to P962 million from P469 million a year ago on the back of new stores and stronger sales. The growth was supported by P16.09 billion in consolidated net sales, up almost half from P10.74 billion last year. Puregold also opened nine new stores out of the initial target of 25 new branches for the entire 2013. Of the new stores, five were hypermarkets and four Read More …

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