THE GOVERNMENT’S debt payments declined by almost 30% in March, data from the Bureau of the Treasury showed.
May 182014
May 182014
DAVAO CITY — Mindanao’s power distributors want to lower the Interim Mindanao Electricity Market’s (IMEM) offer cap, a figure that would influence power price trading, to P22 per kilowatt-hour (kWh) from the P32 previously approved by the Energy Regulatory Commission.
May 182014
THE PHILIPPINES is poised to still be among the top performing economies in Asia this year, although some analysts predict a growth rate slower than the 7.2% growth target in 2014. Yet it would seem that we are proceeding well: the stock market is slowly but steadily recovering, new initial public offerings (IPOs) are entering the market, and investor confidence remains high. It is still an auspicious time to look at the rise of private equity (PE) in the region, and how it may more deeply impact business and investment for the rest of 2014.
May 182014
MANILA, Philippines -The Philippine Deposit Insurance Corp. gave its support for the recent bill filed in Congress amending the state deposit insurer’s charter. “The move affirms the important role the state deposit insurer plays as a financial safety net player in the light of legislative reforms in the financial system,” the PDIC said in a statement. House Bill 4392, a bill amending the Charter of the PDIC, was filed by Batangas Representative Nelson Collantes (3rd district) last May 12. The PDIC noted this came following key legislative reforms strengthening the financial sector such as the passage of the Insurance Code of the Philippines and the recent proposals filed to amend the Charter of the Bangko Sentral ng Pilipinas. Cristina Orbeta, PDIC’s executive vice president for receivership and liquidation, said HB 4392 will allow the insurer to better perform its role as a co-regulator of banks. “Lessons from the financial crisis taught us that a strong resolution and liquidation framework over banks is crucial to depositor protection and to the stability of the banking system,” Orbeta said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Collantes, in his explanatory note of the bill, said that such will enhance bank resolution and depositor protection. This will be done through additional options for liquidating shuttered banks such as the creation of bridge banks. Bridge banks act as shell companies that absorb the assets and liabilities of an insolvent bank until the latter is ready for acquisition or liquidation. By using a bridge Read More …
May 182014
MANILA, Philippines – Costlier operations and more expensive raw materials cut through the earnings of listed restaurant chain Pancake House Inc., which is now a part of the Max’s Group of Companies. Pancake House said net income attributable to equity holders of the parent firm slipped by nearly a quarter to P31.75 million in the first three months from P41.56 million a year ago. Consolidated revenues rose 4.81 percent to P926.73 million from P884.19 million. “The growth was attributed to a sustained growth in same base store sales and increase in store network by 4.54 percent or 22 stores to 310 stores as of Mar. 31, 2014 from 288 stores as of March 2013,” Pancake House said. Specifically, store sales rose 4.54 percent to P778.20 million while commissary sales climbed 11 percent to P120.93 million in the first quarter. However, franchise revenues, or the continuing license fee and franchise income, dropped 12 percent to P27.59 million “due to lesser number of franchise stores opened this quarter versus last year,” Pancake House said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 But costs and expenses grew faster than revenues, increasing 6.4 percent to P895.45 million from P841.52 million. For instance, cost of sales increased six percent to P340.1 million from P320.85 million “due to increase in the price of Japanese rice caused by importation problem,” the company said. Consolidated operating expenses jumped nearly 10 percent to P292.68 million from P266.23 million “mainly attributable to change in electricity and LPG rates, Read More …
May 182014
MANILA, Philippines – The local licensee of the 7-Eleven convenience store chain posted lower income in the first quarter, dragged down by expenses from the store expansion while the sin tax law tempered the growth in sales. Profits of Philippine Seven Corp. (Philseven) fell 12.2 percent to P100 million in the first three months from P113.9 million last year. Retail sales generated by all 7-Eleven stores in the Philippines rose 6.6 percent to P4.4 billion from P4.2 billion during first quarter last year. “The growth in sales was largely driven by the increase in number of stores. Store count went up by 23.8 percent to 1,049 stores,” Philseven said. Franchise stores accounted for 68 percent of total branches, slightly up from 66 percent a year ago. However, the company reported lower sales from existing stores in the first quarter. “Same store sales in the first quarter declined due to lower cigarette sales,” Philseven said, adding that the cigarette category registered significant growth a year ago due to stockpiling prior with the implementation of higher sin taxes. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Sales in the affected categories have since settled down, although higher prices, steady demand, and a more level playing field will continue to benefit these categories going forward,” Philseven said. Excluding cigarette sales, Philseven still posted a slight drop in same store sales due to cooler weather and the timing effect of the Lenten season. Franchise revenues gained 22.3 percent to P347.9 million from P284.4 Read More …
May 182014
MANILA, Philippines – Property firm Robinsons Land Corp. (RLC) is beefing up its shopping malls, hotels and office space offerings in the medium term, riding on the strength of the economy. “Given the growth prospects of the Philippine economy, we will continue to expand all our businesses,” said RLC president and chief operating officer Frederick D. Go. “For our commercial centers division, we will open seven malls in fiscal year 2014. All our locations are carefully selected in the fast-growing cities in the provinces,” Go said. By the end of 2014 fiscal year in September, RLC’s total leasable area will hit 1.07 million square meters (sqm.), up 18 percent from 913,000 sqm a year ago. RLC will further increase its shopping centers with one new mall in fiscal year 2015, and four new commercial centers and two expanded projects in fiscal year 2016. Hence, its leasable area will reach 1.15 million sqm and 1.29 million sqm in fiscal year 2015 and 2016, respectively. For its part, the Robinsons Offices will also put up more business process outsourcing (BPO) towers. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Backed by the robust BPO industry of the Philippines, we continue to be bullish on the growth prospect of our office buildings division,” Go said. Construction are under way for Cyberscape Alpha and Beta while two new office buildings will be created in the P30-billion Bridgetowne mixed-use project in Quezon City. Net leasable area for the office division will climb from 193,000 Read More …
May 182014
MANILA, Philippines – The government is aiming to increase the share of the manufacturing sector total economic output to 30 percent by 2020 from the current level of 22 percent under the Comprehensive National Industrial Strategy (CNIS). Trade Assistant Secretary Rafaelita Aldaba told reporters that under the CNIS which serves as the country’s blueprint of overall industrial development, the government wants to increase the manufacturing sector’s contribution to total economic output. “Our target is for manufacturing to hit 30 percent of our GDP (gross domestic product)…We want to achieve this by 2020,” she said. The government also wants to raise the manufacturing sector’s contribution to total employment to 15 percent by 2020 from its current nine percent share. Aldaba said the country can hit the targets if more firms, both domestic and foreign, will pour in funds for manufacturing operations. “We hope we can see more substantial investments from local companies that go into manufacturing and from multinationals that locate in the Philippines,” she said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 She said the government would also want more companies to choose the country as their manufacturing hub in the Southeast Asian region. “Based on what I hear and see and the conversations with economic attaches of our main investors, primarily Japan, they have strong vote for the Philippines,” she added. In attracting more investments in manufacturing, the government would want to promote sectors that are not power intensive such as furniture, automotive, as well as chemicals. Read More …
May 182014
MANILA, Philippines – Department of Foreign Affairs Secretary Albert del Rosario (left) spoke on the interests, investments, and continued aspirations of the United States as among the factors affecting the resurgence of Asia and the Philippines as a dynamic economy at the recent Asia Pacific Council of American Chambers of Commerce (APCAC) Spring Summit held at the New World Hotel in Makati City. Rick Santos, first vice president of AmCham Philippines and chairman/founder of real estate advisory CBRE Philippines, moderated the forum.
May 172014
LOGRO with his Chinese colleagues in the palace kitchen. Contributed photo/GMA 7 With this funny antics, signature dance moves and “yumyumyum” recipes, Chef Pablo “Boy” Logro is now one of the most popular chefs on Philippine television. Once upon a time, the “Kusina Master” of Philippine television served state leaders, kings and queens. A poor boy from a fishing village in Leyte, Chef Boy’s rags-to-riches story from a houseboy in Quiapo to the personal chef of the King of Oman is among the most inspiring overseas Pinoy stories. In a palace with golden walls and crystal chandeliers, he led the kitchen with an international staff of around 300 to prepare 25 to 30 dishes for Oman Sultan Qaboos bin Said al-Said, while often preparing special menus for visiting world leaders—among them former American president George Bush, Sr., the late King Hussein bin Talal of Jordan, former president Hosni Mubarak of Egypt and the late Princess Diana of Wales. Former Philippine president Fidel Ramos was also one of the guests he served. The sultan also took him along on trips to Istanbul, Geneva, London and France, among others. “Kung nasaan siya, naroon ako. (I accompanied him everywhere)” he said. They rode in a royal yacht and were given “VIP treatment” everywhere they went. The sultan, Logro said, provided him with a car and a two-storey house in a “Forbes Park-like neighborhood.” His wife, Ernelinda, and children eventually came to live with him in Oman upon the sultan’s invitation. In 10 years, Read More …