PH eyes Russia’s, China’s help to boost defenses

 News
Nov 202016
 
PH eyes Russia’s, China’s help to boost defenses

President Rodrigo Duterte and Chinese President Xi Jinping greet each during a bilateral meeting at the sidelines of the Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit in Lima, Peru on November 19. REY BANIQUET/ Presidential Photo The Philippines plans to beef up its defense capabilities with the help of countries like Russia and China, as it seeks to establish industrial defense complexes in areas considered highly “vulnerable to attacks.” These complexes, which will house defense-related manufacturing firms, are targeted to be put up in places like Palawan, since it faces the Spratlys and Zambales, because of the Scarborough Shoal, said Charito B. Plaza, director general of the Philippine Economic Zone Authority (Peza). “We have military reservations that can be utilized as defense industrial complexes depending on the studies to be undertaken by the Department of National Defense (DND). I suggested that we should put up these defense industrial complexes in vulnerable areas of attacks like Palawan and Zambales,” Plaza said.  ‘Window shopping’ She also suggested that two defense industrial complexes be put up in Mindanao. “This is not just about the transfer of technology. We will also be able to modernize our armed forces and the police.” Plaza explained that Peza had begun “window shopping” for prospective locators from Russia, China, Israel and other countries that have sophisticated defense industries. The target is to have locators from these countries to manufacture drones, equipment as well as the hardware and software needed by the military and police both for export and local Read More …

Palay, corn output may drop this year

 Economy
Nov 202016
 
Palay, corn output may drop this year

MANILA, Philippines – The positive second half for the agriculture sector may not be able to pull off the output for the rest of the year as palay (unhusked rice) and corn production may suffer setbacks due to the recent dry spell, the Philippine Statistics Authority (PSA) said. Palay production is expected to reach 17.91 million metric tons (MT) this year, down 1.3 percent from the 18.15 million MT output last year. Harvest area may also decline by almost two percent to 4.58 million hectares in 2016 from 4.66 million hectares last year. Production for the last quarter is expected to increase a measly 0.33  percent from 7.28 million MT last year to 7.3 million MT this year coming from Central Luzon, Mimaropa and ARMM. But the PSA said the increase in production would not likely offset the decline in output in the early part of the year. Palay output for the first semester was already lower by 8.13 percent mainly due to the contraction of harvest areas and lower yields due to the El Niño phenomenon. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Possible decrements in production are also perceived in Cagayan Valley and Zamboanga Peninsula due to unrealized plantings and movement of cropping in the Visayas regions and Zamboanga Peninsula as an effect of dry spell and drought in the past quarters,” the agency said. Furthermore, corn production is also expected to post a 3.4 percent decrease, from 7.52 million MT last year to 7.26 million MT this year Read More …

PAL expects to post profit in 4th quarter

 Economy
Nov 202016
 
PAL expects to post profit in 4th quarter

MANILA, Philippines – The parent firm of Philippine Airlines (PAL) expects to post profit in the fourth quarter, coming from a net loss in the third quarter, amid anticipated increase in passengers during the holiday season. PAL president and chief operating officer Jaime Bautista told reporters on the sidelines of the 60th Assembly of Presidents of the Association of Asia Pacific Airlines that while the carrier expects October to still be a lean month for travel, passenger volume would likely pick up in November and December. “Half of November is lean (and) half is going to peak, but December will be peak. So, the (fourth) quarter, we’re expecting to be a profitable quarter,” he said. PAL Holdings Inc. incurred a net loss of P2.01 billion in the third quarter last year, a turnaround from the P247.90 million net income posted in the same period a year ago. While revenues went up year-on-year in the third quarter, total expenses rose. Revenues grew six percent to P27.78 billion in the third quarter from P26.21 billion last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Total expenses, meanwhile, climbed 14.9 percent to P29.57 billion in the third quarter from the previous year’s P25.73 billion. For the January to September period, net earnings of PAL Holdings reached P2.60 billion, down 57 percent from the P6.11 billion a year ago. Revenues for the nine-month period reached P85.35 billion this year, a 3.5 percent increase from the P82.48 billion in the same period last Read More …

Pivot to China seen positive for 2017 GDP

 Economy
Nov 202016
 
Pivot to China seen positive for 2017 GDP

President Rodrigo Duterte and Chinese President Xi Jinping greet each during a bilateral meeting at the sidelines of the Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit in Lima, Peru on November 19. REY BANIQUET/ Presidential Photo MANILA, Philippines – Credit Suisse said President Duterte’s pivot to China would bring in more investments as well as tourists and is positive for the sustained economic growth of the Philippines. In a report, Michael Wan, economist at Credit Suisse, said the country’s pivot toward China is net positive for the gross domestic product (GDP) growth as well as balance of payments (BOP) position for next year.  Wan explained the strategy of the Duterte administration would bring in more foreign direct investments and tourism from China next year and outweigh the potential decline in flows from the US in the near term.  Credit Suisse sees the country’s GDP expanding 6.4 percent next year.  The report said around $1-to $4-billion or 0.3 to 1.2 percent of GDP of the $15 billion investment pledges made during Duterte’s visit to China have the potential to start in 2017.  Likewise, Credit Suisse said it does not expect a sharp slowdown in US investments due to the pivot toward China strategy as well as the shocking victory of Republican Donald Trump. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  “This implies a two-to six-fold increase in current investments from China, and compares with the Philippines’ typical annual total FDI inflows of $6-to $8-billion. While the US is still the Read More …

Corruption kills

 Economy
Nov 202016
 
Corruption kills

I just finished reading the handwritten suicide notes of Francisco Villa, Jr., an official of the Energy Regulatory Commission (ERC) and the older brother of my colleague Charie Villa. It’s sad to hear of someone who had to take his life because he couldn’t see himself acceding to corrupt practices in his workplace. That’s not how it is supposed to be. The good guys should multiply and drive the bad eggs out of our civil service. But l also just read that a deputy customs commissioner was killed in an ambush as he drove home from work. I was told he was a pretty good guy too, a rarity in his agency. The late ERC director Villa wrote a series of three suicide notes starting on Aug. 23, addressed to “my dear Lord Jesus,” a prayer for deliverance from his situation. He expressed worries about his role in reviewing procurement contracts at the power industry watchdog. “I have fears about my BAC (Bids and Awards Committee) work,” he wrote. “Our mistakes may bring on (Commission on Audit) observations and disallowances…” He wrote that his “greatest fear in the Bids and Awards Committee is the AVP by Luis Morelos which the chairman and CEO, Jose Vicente B. Salazar, chose through a rigged selection system. That will be a criminal act.” In his first note, Villa asked the Lord’s help as he “cannot physically bring himself to work” at the ERC due to “fears” about his work as chief of the agency’s Read More …

Government spending slows down in October

 Economy
Nov 202016
 
Government spending slows down in October

A total of P131.09 billion in notices of cash allocation (NCAs) were utilized in October, accounting for 68 percent of the P192.65 billion released during the period. File photo MANILA, Philippines – Government agencies spent slowest in October for this year, latest data from the Department of Budget and Management (DBM) showed. A total of P131.09 billion in notices of cash allocation (NCAs) were utilized in October, accounting for 68 percent of the P192.65 billion released during the period. The NCA utilization rate – the proportion of utilized NCAs over total releases – was the lowest so far this year and marked a considerable drop from 119 percent the month before. It was 83 percent in August and 78.9 percent in July, the first full month of the Duterte administration. NCAs are used by agencies to secure checks from the Bureau of the Treasury to pay for their contracted obligations. Once utilized, funds are deemed disbursed and are recorded on government balance sheet. DBM officials did not reply to request for comment, but an earlier disbursement gave some glimpse of the pace of agency spending last month. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Based on preliminary numbers, spending for the month of October this year is likely lower than that of the previous year,” DBM said in a report on its website. According to the agency, the lower figures were a result of base effects, coming from high disbursements in same period last year for preparations for Read More …

BOI expects boost from new China pledges

 Economy
Nov 202016
 
BOI expects boost from new China pledges

MANILA, Philippines – The Board of Investments (BOI) expects its approved investment pledges to swell next year on the entry of more Chinese investors to the country. BOI managing head Ceferino Rodolfo said the influx of new Chinese investors could be felt starting next year as a result of the current administration’s push for stronger economic ties with China. “They (investments from China) are about to come beginning next year. And once they arrived, our approved investments could further improve,” Rodolfo said. As of the nine months ending September 2016, the BOI has approved investments worth P286.44 billion, up 49 percent from P192.39 billion in the same period last year. Of these investment pledges, only a small portion is from Chinese investors, while the bigger part comes from Singapore, Netherlands, and Japan. The BOI said it is expecting to approve about 44 more projects in the coming months. These projects are worth P52.03 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Rodolfo, however, said the expected deluge of Chinese investments to the country is still not part of this incoming P52.03 billion worth of new projects. For this year, the BOI is targeting to grow its investment approvals by 10 percent from the P366.74 billion recorded in 2015. With the country’s improving relationship with China, the Department of Trade and Industry and its counterpart in China are currently in talks for the creation of an industrial economic zone in the country that would be developed and financed mostly Read More …

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