A DRIVE to increase the number of industrial parks opening their doors across the Philippines is gathering pace as the country moves to build on a landmark level of foreign direct investment (FDI) notched up last year.
Jun 132013
Jun 132013
MANILA, Philippines – I-Remit Inc., a Filipino-owned global remittance firm, will venture into financial derivative activities as a safeguard against the impact of fluctuating foreign exchange rates, a company disclosure to the Philippine Stock Exchange (PSE) said. iRemit said its board has approved the amendment of the corporation’s primary purpose to give way to this new function. “With the amendment, and subject to the Bangko Sentral ng Pilipinas’ regulatory approval, the corporation will no longer be limited to engaging in spot foreign currency transactions,” it said. It added that it “will be able to engage in financial derivative activities such as foreign currency swaps, forwards, options or other similar instruments.” It would be noted that due to the peso’s appreciation against the dollar in the first three months of the year, iRemit’s income dropped 95 percent to P1.6 million from P33 million in the same period in 2012. As iRemit’s operation is dependent on transaction fees of foreign exchange particularly the peso, any forex gyration would greatly impact on its profit. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Due to the sharp peso appreciation, the company said its trading gains also suffered. For the first quarter, the company’s revenues dropped 11.8 percent to P175.8 million from P199.4 million in the same period last year. iRemit said the decline in sales was“mainly due to significant net realized foreign exchange loss as the Philippine peso continued to appreciate against the US dollar.” Despite the income drop, total transactions jumped six Read More …
Jun 132013
NEW YORK (AP) — It’s one of the worst kept secrets in New York. Hidden around the city are counterfeit goods labeled “Prada” or “Louis Vuitton” or some other luxury brand. They’re sold for a pittance to bargain hunters from around the world who flock to Chinatown. Now, if a proposed bill passes the City Council, customers caught buying these items could be punished — with a fine of up to $1,000, or even prison time. A City Hall public hearing is scheduled for Thursday to examine the black-market business. The bill sponsor is Council member Margaret Chin. She expects a vote sometime in the coming months.
Jun 132013
MANILA, Philippines – Satellite television provider Cignal Digital TV is aiming to have more than 600,000 subscribers by the end of this year, after hitting the 500,000 mark, with the roll-out of affordable pricing schemes. “We want to exceed 600,000 subscribers this year,” Cignal vice president for marketing Guido Zaballero told reporters. At present, he said the firm has a total of 500,000 subscribers, with the bulk or 75 percent having prepaid accounts. Most subscribers are in Luzon and Visayas. Zaballero said the introduction of more affordable pricing schemes has allowed the firm to see its subscribers rise to 500,000 in the middle of this year from 440,000 as of the end of 2012. The lowest priced plan is at P390 per month, while the premium plan costs P1,590 per month. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The new plans were launched in January. Zaballero said the new plans are seen to support a further increase in Cignal’s total subscribers. As the total number of subscribers go up, he said the firm is also optimistic that it could start seeing positive earnings before taxes this year. “The first quarter (income) is quite good. I think we can see positive earnings by the second-half,” he said. Launched in 2009, Cignal broadcasts to households and commercial venues nationwide using direct broadcast satellite technology. It is owned and operated by MediaScape Inc., a subsidiary of MediaQuest Holdings, the media partner of the PLDT Group of Companies.
Jun 132013
MANILA, Philippines – Sun Life of Canada (Philippines), Inc. has once again claimed the top spot in the local insurance industry based on premium income in 2012. In the official rankings released by the Insurance Commission on premium income, Sun Life capped 2012 with net premium income of P20.1 billion, up 44 percent from a year ago. The year-end result has again made Sun Life the country’s number one life insurance company. Sun Life topped the industry in 2011 with its net premium income of P13.9 billion. Sun Life also led the industry in new business, with P3.2 billion in weighted first year premiums, 36 percent higher than the previous year’s level. Combining these results with that of our joint venture company with the Yuchengco Group, Sun Life Grepa Financial, Inc., which posted P5.8 billion in premiums in 2012, the Sun Life group in the Philippines made P26 billion in premium income, 86 percent more than 2011. In a statement, Sun Life Philippines president and CEO Riza Mantaring said: “2012 was again another stellar year for Sun Life. Not only did we break records in our life business, we posted robust gains in mutual funds where our balanced and equity funds were among the best performing funds in the industry. Assets under management of our mutual funds business stood at P28.7 billion as of year-end 2012.” The Sun Life chief attributed the company’s robust 2012 growth to new products, aggressive expansion programs, effective branding campaigns, intensive agency recruitment and heightened Read More …
Jun 132013
MANILA, Philippines – Japanese electric vehicle maker Terra Motors Corp. has forged a partnership with a local firm for the manufacture of electric vehicles in Laguna for the domestic market and for export, an official said. Terra Motors chief executive officer Toru Tokushige told reporters in a briefing yesterday that they have partnered with a local firm for the assembly of electric vehicles here. “We have invested $20 million for the production of electric vehicles here. Most of the investment will go to procurement of parts,” he said. He noted that the facility in Laguna has a production capacity of 10,000 units per year. The electric vehicles to be assembled in the site would be for the local market as well as for export. Tokushige said the firm plans to participate in the bidding for the Asian Development Bank (ADB) and Department of Energy’s (DOE) e-tricycle project next week. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The project involves the roll-out of 100,000 e-tricycles to local government units until 2016. Tokushige said the firm has already developed a sample e-tricycle unit based on the design provided by the ADB and DOE. If Terra Motors would be selected for the project, he said the e-tricycles would be manufactured here. He added other electric vehicles such as electric-bicycles would be produced here. “We already have orders from customers in Thailand and Indonesia,” he said. The firm, he added, plans to seek incentives from the Board of Investments for their manufacturing Read More …
Jun 132013
MANILA, Philippines – Moody’s Investors Service is due to evaluate the Philippines next quarter, but an upgrade to investment grade status is not hinged on that, officials said yesterday. “The schedule is still being fixed but most likely, it would take place in the third quarter,” Claro Fernandez, central bank investor relations chief, said in a phone interview. The New York-based debt watcher has refrained from raising the country’s credit rating to investment grade despite similar actions from rivals, Fitch Ratings and Standard & Poor’s (S&P) Ratings Services this year. Moody’s currently places the Philippines at Ba1, with a “stable” outlook, which indicates no possible rating movements in the near future since the last action was in October of last year. Fitch and S&P, meanwhile, rank the country at BBB-, the lowest investment grade, months after they had their diligence visits to the Philippines. Fitch made its visit in March and S&P in April. Christian de Guzman, vice-president for Sovereign Ratings Group at Moody’s, said in an e-mail that yearly visits are “surveillance activities and are not a pre-requisite for a rating change.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Fernandez agreed, saying the government is consistently in touch with the rating agencies, sending them reports on Philippine economic developments. “We have been in constant communication with them. We send them reports so that even if they do not come here, they know what is happening,” Fernandez pointed out. “An upgrade is not dependent on the visit. It Read More …
Jun 132013
MANILA, Philippines – Sales of car and truck assemblers went up by more than a fifth in the January to May period from last year due to strong demand for vehicles, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said. In a statement yesterday, the CAMPI said combined sales of the group and the Truck Manufacturers Association Inc. reached 72,988 units as of end-May, 23.3 percent higher than the 59,174 units in the comparable period last year. Passenger car sales rose 35.4 percent to 23,904 units in the five-month period from the 17,656 units last year. Sales of commercial vehicles also grew 18.2 percent to 49,084 units as of end-May, from 41,518 units in the previous year. Light commercial vehicle sales, which reached 30,680 units as of end-May, also posted a 28.9 percent increase from 23,807 units a year ago. “Improvement in the economy is always first manifested by an upward trend in light commercial vehicle sales. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This is because this type of vehicle could easily double as a family vehicle and a business transport service,” CAMPI president Rommel Gutierrez said. Higher sales of trucks and buses were also seen for the five-month period which jumped 58 percent to 778 units from 493 units in the previous year. By company, Toyota Motor Philippines Corp. remained the market leader with its 40.34 percent share.
Jun 132013
MANILA, Philippines – Exports of coconut products rose in the first quarter year-on-year in terms of volume and value following slightly higher nut production during the period and increased demand for coconut oil in key markets, government data showed. Data from the Philippine Coconut Authority (PCA) showed that the volume of coconut exports for the period rose 96.88 percent to 391, 231.76 metric tons (MT) from 198, 717.22 in the same period in 2012. The aggregate value of shipments rose 23.17 percent to $292.22 million in the first three months of the year against $237.25 million in the same period last year. Coconut oil remains as the top coconut export commodity of the country with total shipments valued at $202.63 million in the first quarter, up 36.48 percent from $148.47 million in 2012. In terms of volume, coconut oil shipments rose 108.98 percent to 222,299.96 MT in the first quarter of the year against 106,371.53 MT in 2012. Yvonne Agustin, the executive director of the United Coconut Association of the Philippines (UCAP), earlier said that the Philippines enjoyed increased demand from key export markets such as United States and Europe during the first three months of the year.
Jun 132013
MANILA, Philippines – The Bicol region needs P320 billion worth of infrastructure investments to contribute to the country’s economic boom, Albay Gov. Joey Salceda said on Thursday. “What drive our economy today are investments, particularly on the aspect of infrastructure but most of infrastructure investments are still concentrated in the urban areas, particularly Metro Manila,” Salceda said. Salceda said the investments should complement tourism development projects such as the P3.4-billion Southern Luzon International Airport currently being constructed in Daraga, Albay. In terms of tourism growth rate, Albay has posted a 49-percent growth in 2012. Salceda said large investments are expected to come in with the positive perception that the present administration receives from the private sector. “Investors clearly trust the presidency that projects the image of anti-corruption and this trust is manifested by bigger stakes they put in now, particularly in food manufacturing and tourism- today’s upscale industries,” he said, adding that the industry sectors improved by 31 percent this year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He said the reason for the growth in food manufacturing is import substitution or producing locally the products what we used to import. Local products directly compete with imported goods, Salceda said.