Gov’t subsidies to GOCC down 21.5% to P42.15B

 Economy
Mar 072013
 
Gov’t subsidies to GOCC down 21.5% to P42.15B

MANILA, Philippines – Subsidies given by the government to state-owned and controlled corporations went down by 21.5 percent to P 42.15 billion last year from P53.7 billion in 2011, data from the Bureau of Treasury showed. The amount, however, was 32.7 percent higher than the government’s 2012 target of only P31.76 billion. Cumulative subsidies declined even as the government increased its spending by 14 percent to P1.78 trillion last year. In December alone, subsidies for state institutions reached P15.96 billion, 87.76 percent higher than the previous year’s P8.5 billion. Among top five recipients of subsidies in 2012 were the Philippine Health Insurance Corp. (P14.07 billion), National Food Authority (P7.66 billion), National Electrification Administration (P4.95 billion), National Irrigation Administration (P2.81 billion),  and the National Housing Authority (P2.4 billion). PhilHealth was created on Feb. 17, 1995 to provide universal health coverage and ensure a sustainable national health insurance program for Filipinos. Local and national government allocate funds to subsidize the membership of indigents.  Among PhilHealth’s members include workers employed by companies and institutions, indigents with no means of support; retirees (non-paying members) who are 60 or older, and individuals under the overseas workers and similar programs.           Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The NFA is an agency of the government under the Department of Agriculture responsible for ensuring the food security of the Philippines and the stability of supply and price of rice.  The government subsidizes rice imports through exemption from duties and taxes. The NEA, on the Read More …

P-Noy bent on reviving coco industry

 Economy
Mar 072013
 
P-Noy bent on reviving coco industry

DAVAO CITY, Philippines – The Aguino government is bent on reviving the  coconut industry especially after super storm Pablo struck the provinces of Davao Oriental and Compostela Valley, considered to be the country’s largest coconut-producing areas. According to President Benigno Simeon Aquino, “We have short and medium term interventions but what is important is the long-term intervention for the areas affected by Typhoon Pablo and in the long run, eventually revive the country’s coconut industry.” The President admitted though that it would take a long time for the coconut industry to fully recover. The President arrived here Wednesday for a series of engagements including addressing the participants to the Meetings, Incentives, Conventions, Events/ Exhibits Conference (MICECON) 2013 forum held here. The President also joined the Team PNoy senatorial candidates as they barnstormed key areas in Southern Mindanao. The President cited the short-term interventions carried out by the Department of Agriculture and the Philippine Coconut Industry in providing farm tractors and chainsaws to clear the coconut debris brought about by Typhoon Pablo. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He said coconut farmers were also given vegetable seeds which they could plant for their alternative source of livelihood. The President likewise pointed out that for the medium-term intervention for the coconut farmers affected by typhoon Pablo in Davao Oriental, they were provided an additional 40 units of chainsaws for the clearing operation. The DA also distributed corn seeds intended for planting under the coconut trees. The President said government would look Read More …

P-Noy signs IP Code amendments

 Economy
Mar 072013
 
P-Noy signs IP Code amendments

MANILA, Philippines – Now that President Aquino has signed a bill amending the Intellectual Property Code, there is no more limit to the entry of copyrighted products into the country for personal use. Cagayan de Oro City Rep. Rufus Rodriguez, a principal author of the bill, made this clarification yesterday amid apprehensions raised by overseas Filipino workers and travelers that the new law bans the bringing in of products covered by intellectual property (IP) rights. The confusion arose from the deletion of two provisions in the old law limiting the bringing in or importation of such products for personal use to only three copies. The President signed the amendments into law on Feb. 28. The new statute, denominated as Republic Act 10372, was published in The STAR yesterday. It takes effect 15 days after its publication in two national newspapers. Rodriguez said the deletion of the two provisions does not mean that the new law bans the bringing in of copyrighted products like books, music and films or movies. On the contrary, it means that there is no more limit to the entry of these products, provided that they are for personal use, he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The new law also allows religious, charitable and educational institutions to import more copies, “for as long as they are not infringing or pirated copies, so that more Filipino students in the country may use such works,” he said. He added that RA 10372 does not Read More …

Buyacar acquires pre-owned cars from BDO

 Economy
Mar 072013
 
Buyacar acquires pre-owned cars from BDO

Seated (from left): BDO asset management group senior assistant vice president Emmanuel R. Apilado, Esquire Financing Inc. president and chief executive officer Rajan Uttamchandani, BDO asset management group vice president Antonio M. Cruz. Standing from left): Esquire business development manager Isabel Olbes, Capitalife Lending Inc. chief executive officer Steve Borsuk and vice president Amit Borsuk, Esquire vice president Ravi Uttamchandani. MANILA, Philippines – Buyacar Inc. recently purchased another batch of pre-owned vehicles from BDO Unibank Inc. as a response to the increasing market for pre-owned cars in the country. A joint venture between Esquire Financing Inc. and Capitalife Lending Inc., Buyacar is negotiating with BDO to buy the next batch of vehicles as the company is cycling through its inventory faster than its target. Esquire Financing Inc.’ president/CEO Rajan Uttamchandan said: “We’re targeting 700 to 900 cars a year in sales.” In less than five months since it started operations, Buyacar has sold 50 percent of the cars that it purchased. Steve Borsuk, CEO of Capitalife Lending Inc., added:  “The numbers keep growing because people are becoming aware of our company and the way we do business, and they know how to appreciate and value these terms.” Given expectations of future growth, Borsuk said.”  “We believe that by the end of 2014, we will be able to sell hundreds or thousands of cars on a monthly basis.” Similar to the no-down payment car loans in the US, Buyacar brought this business model in the Philippines to meet the increasing demand Read More …

Potential markets for sugar exports cited

 Economy
Mar 032013
 
Potential markets for sugar exports cited

MANILA, Philippines – The Philippines could potentially ship sugar to India, Korea, Indonesia and the Middle East, according to the Sugar Regulatory Administration (SRA). In an announcement on its website, the SRA said state-owned Philippine International Trading Corp. (PITC) has identified export opportunities for refined and raw sugar from these countries. PITC, established in 1973, is the only state-owned international trading corporation mandated to promote local export commodities especially those from small and medium enterprises and undertake bulk importation of strategic raw commodities to secure domestic supply and stabilize local prices. Only buyers from India and Korea have so far provided specifications. The SRA said PITC’s potential buyers from India are interested in procuring an initial 100 to 200 metric tons (MT) of refined sugar of S-30 and M-30 grade.  The volume may increase to 500 to 800 MT, expanding to between 1,000 to 1,500 MT by the second semester of 2013. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Buyers from Korea are interested in procuring 1,500 MT of refined white sugar per month. The sugar content per shipment should be 90 percent with a brightness of 19 to 20. Korean buyers are also interested in importing 12,500 MT of raw sugar monthly with a trial shipment of 3,000 MT to 5,000 MT. The Philippines intends to produce 2.356 million MT of sugar for crop year 2012-2013. The SRA is currently implementing measures to help farmers increase productivity and lower production costs ahead of the implementation of free Read More …

Bernanke defends Fed’s low interest rate policies

 Economy
Mar 032013
 
Bernanke defends Fed’s low interest rate policies

WASHINGTON (AP) — Chairman Ben Bernanke is standing by the Federal Reserve’s low interest rate policies, cautioning that any move to raise rates prematurely could derail a still-modest economic recovery. Bernanke also sought to calm fears that super-low rates risk igniting inflation or rattling investors, during a speech late Friday in San Francisco to an economic conference sponsored by the San Francisco Federal Reserve Bank. The central bank’s low-rate policies are intended to encourage borrowing and spending to boost the economy. Higher rates would make borrowing more expensive. Bernanke said the Fed’s policies mirror what other central banks around the world are doing. “Long-term interest rates in the major industrial countries are low for a good reason: Inflation is low and stable and, given expectations of weak growth, expected real short rates are low,” he said. “Premature rate increases would carry a high risk of short-circuiting the recovery, possibly leading — ironically enough — to an even longer period of low long-term rates,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 His comments amplified testimony he gave to Congress this week. Critics, including some Fed regional bank presidents, have expressed concerns that the Fed may be raising the risk of inflation through its purchases of Treasury bonds and mortgage-backed securities. As he did in his appearance before House and Senate committees this week, Bernanke sought to provide reassurance that the central bank is closely monitoring developments in financial markets to guard against such risks. He said 2010 Read More …

Coca-Cola closes Laguna plant but remains committed to Phl investments

 Economy
Mar 032013
 
Coca-Cola closes Laguna plant but remains committed to Phl investments

MANILA, Philippines – Beverage giant The Coca-Cola Co. has decided to close its plant in Calamba, Laguna to streamline its regional operations. The company, however, said it remains committed to investing in the Philippines for the next 100 years. Bessie Arciga, corporate communications and brand public relations manager of The Coca-Cola Export Corp., said in an email that the decision to close the Canlubang concentrate plant will affect 57 direct employees. “In order to streamline operations, The Coca-Cola Co. continuously reviews its concentrate supply chain to drive greater efficiency and position itself to meet future growth in Asia. As a result of that review, the company has decided to produce all concentrate and beverage base for the Philippines in Singapore, and to close the Philippines concentrate plant,” she said. “This decision will allow us to be more efficient and to increase flexibility in the Asia supply chain,” she said further. The plant closure is expected to be completed within the year. To mitigate the effect of the plant closure, the firm is reassigning employees in Canlubang to its other plants or facilities in the country and in Singapore. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The company will likewise be giving a competitive severance package to its employees. But while the firm has decided to halt operations at its plant in Canlubang, it intends to pursue investments in the country. “Although we have closed our plant, the company remains committed to investing in the Philippine economy not only Read More …

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