BIR's January 2013 collections up by 11.27%

 Economy
Feb 272013
 
BIR's January 2013 collections up by 11.27%

MANILA, Philippines – The Bureau of Internal Revenue’s collections for January rose by 11.27 percent or P9.59 billion year-on-year, the state agency reported on Wednesday. BIR said it collected P89.03 billion from its operations and P5.71 billion from non-BIR operations for a total of P94.74 billion worth of tax revenues collected in January 2013. The agency collected P85.15 billion in January last year. BIR Commissioner Kim Henares earlier said the agency is aiming to collect P1.25 trillion this year after missing last year’s target by a small margin. BIR has also unveiled 26 major projects to ensure that it will sustain a positive growth in its collections.

Phl, emerging markets await US decision on spending cuts

 Economy
Feb 262013
 
Phl, emerging markets await US decision on spending cuts

MANILA, Philippines – Hopes are high that leaders in the United States will strike a deal to stop spending cuts from taking effect Friday, an event that could trigger heightened risk aversion in the emerging markets like the Philippines, the central bank said. “Given what transpired at year-end, most analysts have probably not factored in ‘sequestration’ (or the automatic spending cuts) in their baselines,” Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco, Jr. said. “As in the past, I think we can expect heightened volatility in the market in the run up to March 1,” he said in a text message to reporters Tuesday night. US lawmakers found themselves pitted against each other anew, two months after dodging the “fiscal cliff”— the $600-billion spending cuts and tax rises— by choosing to hike income taxes to generate revenues. They however left decision on disbursement cuts, choosing to extend the leeway by another 60 days which is bound to end Friday midnight, Washington time. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 A total of $85 billion worth of cuts could kick in immediately, affecting government services and employee payrolls, seen detrimental to the still-fragile US economy. On Tuesday, the BSP chief said the market would evaluate how the US would act to avert a looming budget problem. “Again, what we could see in the market is a move to safe haven. But what that safe haven is would depend on risk appetite at that point,” Tetangco said. “Given the US Read More …

A nation’s ‘absorptive capacity’ and its current relevance

 Economy
Feb 262013
 
A nation’s ‘absorptive capacity’ and its current relevance

Is the nation’s “absorptive capacity” enabling the country to achieve its full potential for growth? Are investment decisions making the economy more efficient? These two questions have an identical answer: No. There is a great deal of room for improvement. At a time when economic gains are rising to optimistic levels, there should be less excuse for discussing those problems that slow down the achievement of growth objectives. The question of absorptive capacity stares us in the face. The delays in decisions concerning investment projects in the public sector reduce absorptive capacity. Indecision might be attributable to lack of courage on the part of the principals of government agencies to take responsibility for their actions. We should focus on this problem. “Absorptive capacity in the public and private sectors.” Absorptive capacity is the ability to implement projects and investments so that they achieve their intended objectives. If issues arise at any stage in the process, having absorptive capacity implies finding the appropriate ways or adjustments to solve or wiggle out of the problems. Taken in its wider meaning – absorptive capacity – is possessing the appropriate technical and managerial skills to oversee the completion of economic decisions toward satisfactory results . (There are many economic jargons of greater precision to explain this, but I will avoid that route.) In this country and in relative terms, the problem of inadequate or low absorptive capacity resides more in the public, than in the private, sphere. The former is much more inflexible when Read More …

Inflation seen at 2.8-3.7%

 Economy
Feb 262013
 
Inflation seen at 2.8-3.7%

MANILA, Philippines – Inflation could settle between 2.8 percent and 3.7 percent this month as lower food and electricity prices offset oil price hikes, the Bangko Sentral ng Pilipinas (BSP) said yesterday. The forecast falls at the lower end of this year’s official three to five-percent target. Inflation picked up to three percent in January after settling at 2.9 percent in  December 2012. On average, however, consumer prices rose 3.2 percent last year. “Results of the BSP’s latest forecasting exercises suggest that average inflation for 2013 and 2014 could still settle at the lower half of the government-set target range,” BSP Governor Amando Tetangco Jr. said in a text message to reporters.  “(This reflects) continued manageable inflation pressures and well-anchored inflation expectations,” he added. For February, Tetangco said upside pressures coming from a spate of oil price adjustments – and their possible impact to other commodity prices – could nudge consumer prices higher. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Local oil firms have hiked prices five times this year compared with only three rollbacks, according to monitoring by the Department of Energy. Diesel and gasoline prices have risen by P2.05 and P3.05 per liter from their levels end of last year. As of Monday, diesel now has a price range of P41.25-44.30, while gasoline price range was pegged at P51-P57.39. Price pressures from oil prices could be tamed by lower electricity rates this month, Tetangco said.

We’re attracting Japanese investors

 Economy
Feb 262013
 
We’re attracting Japanese investors

Late last week, a buzz was created in the Japanese business community by Sumitomo Corporation on the growing attractiveness of the Philippines to Japanese investors. Sumitomo issued a press release that declared “among Asian nations where many Japanese manufactures have invested, the Philippines has been gaining power as an exporting nation…” Sumitomo cited our “attractive tax incentives as well as rich human resources equipped with English language skill.”  Sumitomo went on to say that “in line with this trend, since 2011, the foreign direct investment from Japanese manufacturers to the Philippines has been increasing.” Thus, Sumitomo announced it has decided to launch an expansion project of an industrial park south of Manila it co-owns with the Lopez Group’s First Philippine Holdings. Sumitomo says it “believes the Philippines will further increase its position as a strategic location for export-oriented industries compared to other Asian nations…” The Sumitomo press release received wide attention in the Japanese and international press. The Asahi Shimbun reported that Sumitomo “has begun expansion work at the First Philippine Industrial Park in Manila, to add approximately 100 hectares of property for leasing and allow for additional factories to be constructed upon completion.” The Financial Times, on the other hand, observed that Sumitomo’s move means “a fair amount of this newer investment by Japan Inc is happening at the expense of China, as companies balk at spiraling labor costs after the flare up over a tiny chains of islands in the East China Sea.”   The FT also noted “Japan’s Read More …

Stocks sink as investors worry over Italian vote

 Economy
Feb 262013
 
Stocks sink as investors worry over Italian vote

MANILA, Philippines (Xinhua)- Profit takers pulled down the Philippine stock market today. The bellwether Philippine Stock Exchange index lost 1.35 percent or 90.66 points to 6,630.67. The broader all-share index retreated by 0.77 percent or 32.07 points to 4,144.87. Trading volume reached 2.03 billion shares worth P10.49 billion ($257.83 billion) with 111 stocks declining, 55 advancing, and 43 unchanged. All six counters closed in the negative. Analyst Justino Calaycay of Accord Capital Equities Corp. said investors took note of the 216-point drop of the Dow Jones industrial average index to start booking their gains. “It was a day filled with a menu of negative news from Europe,” Calaycay said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Among the negative developments cited by the analyst was the latest election in Italy. Investors are worried over projections in Italy that showed no political coalition is strong enough to form a government. This might lead to political deadlocks that could lead to another Euro-zone crisis. Italy is divided between those pushing for austerity measures as a means to restore the economy back to health and the populists, who oppose such measures. In the US, Calaycay said investors are growing apprehensive over the developments in Europe and ahead of a spate of economic data this week. Stocks in the 30-company index were mostly down. These issues were SM Investments Corp., Ayala Corp., and Ayala Land, Inc.

Feb inflation foreseen at 2.8-3.7 pct

 Economy
Feb 262013
 
Feb inflation foreseen at 2.8-3.7 pct

MANILA, Philippines (Xinhua) – Inflation growth in February is forecast to grow between 2.8 to 3.7 percent in February on back of higher oil prices, the central bank said today. Central Bank Governor Amando Tetangco Jr. said lower food and utility prices will offset the rise in oil prices. He added that February’s forecast is still within the low-end of this year’s three to five percent inflation target. “Results of the (central bank’s) latest forecasting exercises suggest that average inflation for 2013 and 2014 could still settle at the lower half of the government-set target range,” Tetangco said in a  text message sent to reporters. Tetangco said this continues to reflect “manageable inflation pressures and well-anchored inflation expectations.”    Inflation growth in February is forecast to grow between 2.8 to 3.7 percent in February on back of higher oil prices, the central bank said today.

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