Among 2013’s most explosive stories, how multi-billion-peso public funds were so blatantly misused shocked and angered the nation. That the abuses involved public officials, obscure private individuals, and fake non-governmental organizations added to the outrage. How could corruption be masked so well? READ FULL STORY
MANILA, Philippines – I have to admit it. I love what the BIR is doing. No country can progress without adequate state revenue. While nobody likes taxes, it’s the price we must pay to participate in, and benefit from a society. Many are flabbergasted at the recent ads that publicize the highest taxpayers — and by virtue those who are noticeably absent — which the BIR is sponsoring in the leading newspapers. I think it’s fabulous. Let’s put a spotlight on all of it. Nothing purifies better than a bright spotlight. This approach is a proven tactic of the US Internal Revenue Service. In fact, it is fairly well established that each and every tax season, at least one prominent citizen — be it a top athlete or Hollywood star — is arrested and jailed for tax evasion. Why? To send a signal to the entire population that nobody is above the law. Tax avoidance is legal, but tax evasion is not. Just watch in the coming February-April window in the US press. We’ll see at least one famous individual on CNN being led to prison in handcuffs. It is imperative that the internal revenue bureau of any country sends clear signals. Who pays and who doesn’t. And that nobody is above the law. You evade your taxes and you go to jail — pure and simple. Doesn’t matter who you are, who your daddy is. How much money you have. The Philippines is on its way. But there is Read More …
Last week, Bloomberg wrote an article about the Philippine stock market. In that article, Bloomberg mentioned how the PSE Index turned into one of the worst performing indices recently after being one of the best performers in early 2013. At its peak in May 2013, the PSE Index was up 27.4 percent vs. year-end 2012 and had gained 339 percent since its bottom in October 2008. At that point, our index was one of the world’s best performers, next to Japan’s Nikkei 225. Since that peak, the PSE Index has fallen 20.4 percent and is on its way to becoming one of the worst performers for the 2nd half of the year. Considering this, many are probably wondering why our index swung from best to worst in the span of one year. 1. Reasons for the downturn too fast, too soon. Though the run-up of the PSE Index in early 2013 was not without reason, it happened a bit too fast and too soon. The performance of our index from year-end 2012 to May 2013 almost eclipsed the impressive 33.0 percent return of our index in full-year 2012. 2. Valuations rise. The steep run-up also pushed the valuations of Philippine stocks significantly higher. At the peak, the PSE Index had a 2014 P/E (price-to-earnings ratio) of 21.5x. Note that this was reached even before the halfway mark of the year. 3. QE tapering. The talks about the tapering of the Fed’s quantitative easing (QE) program triggered large-scale unwinding, deleveraging and Read More …
I have no doubt Energy Secretary Jericho Petilla meant it when he said he will resign if he failed to reconnect the towns in Leyte and Eastern Samar to the power grid by Christmas Eve. But only three towns remain to be connected and that is definitely substantial compliance. ABS-CBN reports the three towns were connected by Friday last week. PNoy was right to reject his resignation. Indeed, P-Noy should hang on to Petilla. It is rare to have someone like him who is ready to put his job on the line towards the accomplishment of a goal. I have not personally met Petilla and initially dismissed him as just another politician. But he is showing himself to be a breed apart from many in P-Noy’s cabinet and key officials. How I wish this retired General Honrado would do a Petilla and put his job on the line on the issue of providing functioning air conditioners, working CCTVs and clean washrooms in all the NAIA terminals. Because he knows he is a bosom buddy of P-Noy (relative pa daw), all he has offered these past three years are excuses, a mountain of excuses. Kung hindi kaya ang trabaho, resign! But he seems to be kapalmuks to the core. Having worked at the Ministry of Energy, I understand the challenges that Petilla faces. We did well enough then because we had an exceptionally results oriented boss in Ronnie Velasco who took no excuses for failure. It was also martial law. Now, Petilla and the energy bosses after Read More …
MANILA, Philippines – The Philippine financial system had remained resilient from all external shocks in 2013, thanks to the country’s strong economic fundamentals. With the continuing growth in the economy, local banks are expected to be kept on their toes in the coming years. These are generally the sentiments shared by some top bank officials and leading international rating agencies in the Philippine banking system this year and in 2014. “We have a healthy banking sector, well-capitalized. I don’t think anybody among the major banks is facing problems with their loans, BDO Unibank president Nestor Tan said.” “I think earnings are relatively strong, the industry performed quite well,” when asked to describe how banks fared in 2013. BDO is the country’s biggest lender, controlled by the family of retail tycoon Henry Sy Sr. of the SM Group of Companies. For 2014, BDO sees the economy growing by a still strong 6.5 percent amid a conducive business environment. This is, however, slightly lower than the 2013 growth estimate of 6.75 percent. Main drivers of growth are expected to come from the doubling of infrastructure from the regular National Government budget of P400 billion and partly the implementation of the government’s Public-Private Partnership (PPP) program. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On the possible impact of external factors on the banking industry’s performance, Tan said as long as the economy is doing good, banks would remain stable. “If the local economy will be affected by these external risks, then Read More …
MANILA, Philippines – Most Japanese companies with operations in Asia and Oceania including the Philippines intend to expand their business in the next two years, according to the Japan External Trade Organization (JETRO). The JETRO’s survey of Japanese-affiliated companies in Asia and Oceania for December 2013 showed that 58.1 percent of 148 Japanese firms based in the Philippines plan to expand their business in the next two years. Meanwhile, 38.5 percent want to maintain the existing level of business and 3.4 percent will reduce their operations here. For the whole of Asia and Oceania, the survey showed that 59.8 percent of the 4,536 Japanese firms are planning to expand in the next two years, while 36.3 percent will maintain current level of business and 3.9 percent will cut their operations. “The most commonly cited reason for business expansion was a ‘sales increase’ at 85.4 percent, followed by ‘high growth potential’ at 46.8 percent,” JETRO said. In the Philippines, it noted that the proportion of firms responding “easy to secure labor force” as a reason for the planned expansion, was relatively high at 12.8 percent. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In terms of sales outlook, Japanese companies with operations in the Philippines are more optimistic of growth in profits in 2014 than this year. The survey noted that 46.7 percent of Japanese firms in the Philippines expect their profits to rise this year compared to 2012, while 51 percent see their income growing next year over 2013. Read More …
MANILA, Philippines – Investor activity is expected to remain robust next year, with an upside for a slight growth after investors weigh the effects of the gradual US Federal Reserve tapering. The country’s growth story remains intact, a factor that could help restore investor confidence in the local bourse, an official said. “We think of a 10-percent increment (in capital raising proceeds). We have a larger base now and we said there is better certainty about the taper,” PSE president and CEO Hans B. Sicat said. Sicat said investors are now sure that the easing of the monetary stimulus, which has flooded financial markets with liquidity, will be gradual. This year, capital proceeds from private placement, stock rights offerings and follow-on offerings declined 20 percent to P175.06 billion from P219.07 billion in 2012 as market volatility dampened the valuation of listed companies. With the projected increase, capital proceeds next year might reach P192 billion. “With valuations where they are right now, it would help investors who want to come in the market next year,” Sicat said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 From recording the 31st all-time high this year at 7,392.20 on May 15, the benchmark PSE index closed 2013 at 5,889.83 due to a slew of negative news that dampened investor sentiment. PSE data showed that net foreign buying plunged 85.83 percent to P15.58 billion as of end-2013 from P109.97 billion a year ago. Foreign selling surged 74.68 percent to P1.29 trillion this year from Read More …
KYMCO Philippines recently launched in Mindanao the KTR 125, the latest among the quality but affordable motorcycles that are tailored fit for the bikers in the island. Allan B. Santiago, national sales manager of Kymco Philippines, said a team of researchers from Taiwan and Kymco Philippines came up with the concept of the motorcycle that sought to eradicate the gap between a quality expensive motorcycle and low-cost less quality model. “We want to offer the market with an alternative all-new purpose motorcycle that is value-packed on a more affordable cost,” he said. He said many of the features of the KTR 125 are also found in the more advanced and more expensive brands of motorcycles in the Philippines. “The all-new Kymco motorcycle was conceptualized months ago with the idea of bringing the competition to a new level, by providing a product with more distinct features and a clear advantage that can’t be found in the leading brand,” he said. The latest motorcycle sports a European-inspired design, with a sleek, fluid lines, and a modern head lamp, in what Santiago described as the model that has “more value than its cost.” Other sturdy features of this motorcycle include the perfect square engine, safety reflectors, stylishly-designed tail lamp and full-knuckle guard. He said the full-knuckle guard protects the hands of the bikers, and thus prevent accidents. Santiago said KTR 125 was specially designed for the rough roads, making it perfect for bikers who are always on-the-go to explore the suburbs of Mindanao. Read More …
By Michelle V. RemoPhilippine Daily Inquirer 8:42 pm | Sunday, December 29th, 2013 The government plans to sell P135 billion worth of treasury bills and bonds in the first quarter of the coming year, according to the Bureau of the Treasury. The amount represents a nearly 10-percent rise from the P122.96 billion worth of government securities sold in the domestic market in the same period of 2013. The decision to raise domestic borrowings came on the heels of the government’s announcement to hike public expenditures for infrastructure and social services. The government has been forced to beef up spending and support reconstruction activities in areas affected by Supertyphoon “Yolanda,” which devastated the Visayas last month. To accommodate the higher spending, the government is ready to post a higher budget deficit and borrow more in 2014. In the notice posted on its website, the Treasury said P60 billion worth of T-bills and P75 billion worth of T-bonds would be auctioned off in January to March. About P4 billion worth of 91-day T-bills and P6 billion worth of 182-day bills, as well as P10 billion in 364-day notes will be sold each month. Also, P25 billion worth of bonds will be sold each month. Finance Secretary Cesar Purisima told reporters that the government would continue to borrow more from the domestic than the foreign market in the coming year. This will allow the government to minimize its exposure to foreign-exchange risks, he explained. The government does not need to borrow abroad if Read More …
MANILA, Philippines – The Department of Agriculture (DA) is pushing for the expansion of corn cultivation areas to keep up with the growing feed requirement of the livestock sector. Agriculture Secretary Proceso Alcala said that while the Philippines is already self- sufficient in corn, production targets would be reviewed to meet the rising feed demand from livestock raisers. “We need to expand corn cultivation areas because the livestock sector is growing. We should be able to surpass our sufficiency by next year,” he said. In the first nine months of the year, domestic corn production, rose to 5.92 million metric tons, up by 0.40 percent year-on-year on improved harvets in Northern Mindanao, SOCCSKSARGEN and Western Visayas. Production this year is expected to reach 8.2 million MT, up 10 percent from 7.408 million MT in 2012. Full- year production results are expected to be announced within the first quarter of 2014. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Despite the good production, the government is hesitant to allow corn producers to export to keep domestic supply stable. Corn growers, however, have been allowed to ship out silage to South Korea. The agriculture department wants the corn sector to be fully compliant with international export standards before its allowed to export. Alcala wants the local corn sector to be competitive in time for the economic integration of Southeast Asian economies by 2015 so it can get a piece of the export market dominated by the United States. “We would like Read More …