The Philippine economy grew by 7.8% in the first three months of 2013, surpassing every single analyst estimate and putting it just above China as one of Asia’s fastest growing economies. The torrid growth, the best in nearly three years, is especially impressive given that exports declined 6.2% as electronics shipments collapsed. READ FULL STORY
MANILA, Philippines – The peso recovered yesterday from its 11-month slump against the dollar as investors cheered the better-than-expected first quarter economic growth rate. The local unit closed 42.32 against the dollar, 12 centavos stronger than the previous day’s 42.44, which was the weakest since June 2012. Dollars traded reached $1.112 billion, up from Wednesday’s $1.057 billion. “Basically, the strength was due to local story of a strong GDP (gross domestic product) growth that was well above market expectations,” a trader at a local bank said in a phone interview. Driven by consumption and investments, the economy grew by a surprising 7.8 percent for the first three months, the fastest in three years, and beating market consensus of just about six percent. The result was also well-above the official six to seven-percent growth goal for the year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Emilio Neri Jr., an economist at the Bank of the Philippine Islands, said investors would likely continue purchasing the peso, thereby boosting its strength versus the US dollar, “in the near-term.” “The Philippine peso may see some appreciation pressure in the near-term after its sharp slide in the past week as dealers were likely surprised by the strong GDP print,” Neri said in a research note. The peso, Asia’s second best performer last year, has lost more than three percent since the end of last year. This was the second straight day it traded at 42-level versus the greenback this year. While good news Read More …
MANILA, Philippines – Growth targets will be retained while inflation forecasts will be revisited, officials said, after the first-quarter economic expansion both surprising policymakers and becoming the fastest in Asia for the period. Socioeconomic Planning Secretary Arsenio Balisacan said the Aquino administration is “sticking” to its six- to seven-percent growth target for the year “at the moment,” even after the uptick for the first three months registered way beyond at 7.8 percent. “We periodically review assumptions. We will consider first quarter performance when we meet,” Balisacan told reporters on Thursday after the data’s announcement. The Development Budget Coordinating Committee (DBCC), the body setting macro-economic targets, has yet to set a meeting to review its assumptions, but Budget Secretary Florencio Abad acknowledged growth would be sustained in the coming months. “We intend to sustain or surpass the very standards we set over the succeeding quarters,” said Abad, who is also DBCC chairman, in a statement. He did not elaborate. The 7.8-percent growth last quarter surpassed all growth rates in Asia, notably in China (7.7 percent), Indonesia (six percent), Thailand (5.3 percent), Vietnam (4.9 percent), Malaysia (4.1 percent), Japan (3.5 percent), South Korea (1.5 percent). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Strong consumption driven by election-spending, investments and government spending were tagged as the drivers for the growth, which was the fastest in three years. A stable inflation, averaging three percent as of March, was also noted. However, the Bangko Sentral ng Pilipinas (BSP) said there is need to Read More …
MANILA, Philippines – Vista Land and Lifescapes Inc., the Philippine Stock Exchange-listed flagship company of Sen. Manny Villar, has garnered several awards from the prestigious Hong Kong-based FinanceAsia magazine. Based on the final tally of votes for FinanceAsia’s 13th annual poll of Asia’s top companies, Vista Land ranked number one in two key categories: “Best Mid Cap” company and “Best CFO.” The company also made it to the top 10 in five other categories: Best Managed Company – 8th; Best Corporate Governance – 5th; Best Investor Relations – 3rd; Best Corporate Social Responsibility – 10th; Most Committed to a strong dividend policy – 6th. Vista Land improved its ranking from 7th in “Best Investor Relations” and 4th in “Best Mid Cap” in 2012. For the second year in a row, Vista Land’s Chief Financial Officer, Ricardo Tan, Jr., was voted number one by investors and analysts across the region in the “Best CFO” category. Metro Pacific Investments CFO David Nicol came in second, while Emmanuel Singson of First Gen, Iker Aboitiz of Aboitiz Power, and Ismael Basa of Joillibee all came in third equal. Last year, Vista Land was the sole winner of the “Best Investor Relations award” from rival publication Asiamoney, and also received a Best Investor Relations award from CorporateGovernanceAsia. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 CorporateGovernancAsia also cited Vista Land as one of Asia’s Most Promising Companies in Corporate Governance in 2013. Vista Land, the largest homebuilder in the Philippines, posted a net income Read More …
INFLATION could fall below 3% in the second quarter with commodity and fuel prices likely to ease on the back of better inventories and continued slow demand due to the weak global economic environment, according to First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P).
MANILA, Philippines – The Philippines has a “neutral” exposure to Japan and the continued monetary easing on the world’s third largest economy would not likely result into excessive capital flows, the Bank of America-Merrill Lynch (BofA-ML) said in a report released yesterday. Quantitative easing (QE) from Japan may impact on Asia through exchange rates, reflation and portfolio inflows or hot money, BofA-ML. “Japan’s QE impact is more neutral for China, India, Indonesia and the Philippines,” the investment bank said. Japan is trying to boost its economy by embarking on a multi-billion yen asset purchase program known as QE to swamp the economy with money and in the process boost consumer spending to achieve inflation and growth. On the flipside though, lower rates tend to shun investors who then flock to other markets for better yields. This results into more capital inflows and, among others, more exchange rate pressures. In the Philippines, the effect is seen “neutral,” with BofA-ML noting that only 2.8 percent of total investments to bonds and equities in the country came from Japan for the past seven years. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Japanese foreign direct investments (FDI) in the Philippines accounted for only 0.3 percent of the total, the bank pointed out. The figures were lower compared with other Asian countries in BofA-ML radar. Singapore, with 30.8 percent of hot money coming from Japan, would likely experience a flood of bond and equity inflows. Vietnam, on the other hand, would likely benefit Read More …
MANILA, Philippines – The Department of Transportation and Communication (DOTC) is considering a number of options for the Philippine airport system including the plans to develop two major gateways for the country. Speaking before the members of the Makati Business Club on Thursday, DOTC Secretary Joseph Abaya revealed three proposals, with the first one involving a single airport system. With this scheme, the government will close the Ninoy Aquino International Airport (NAIA) and develop the Clark International Airport in Pampanga. The second option is to make a dual airport system, where the government will develop the Clark airport while maximizing operations at the NAIA through 2025 and also look for a new gateway site 30 minutes away from the said airport. The third option also involves a dual system, where the government will develop both the Clark airport and the NAIA, while considering an alternative airport. “Previously, the direction was to move all NAIA’s current operations to Clark International Airport within the next 5 to 7 years. What is clear now is that we need Clark to absorb some of the traffic in NAIA,” Abaya said. Abaya noted that passenger demand keeps surging and in some places, two major airports are really needed. “That steadily increasing demand is what we expect for Manila, especially with the [Department of Tourism] doing so well in drawing tourists to the country. We will be seeking approval from the President to aggressively expand and promote Clark,” Abaya said. Abaya also clarified that the ongoing Read More …
WASHINGTON, D.C.—An initiative of the National Kidney and Transplant Center (NKTI) that made renal care accessible and affordable to ordinary Filipinos has been recognized as one of the best public-private partnerships (PPP) not only in Asia but also in the rest of the world, the Philippine Embassy announced today. In a statement, the Embassy congratulated […]
Will the Philippine government’s ambitious plan to attract luxury tourism threaten the environmental wonders that have made the country one of the last unspoiled tropical destinations in Asia? Two islands—one pristine, the other overpopulated—sound a cautionary note. READ FULL STORY
Although the Philippines is surrounded by water and experiences at least 20 cyclones in a year, it is still far from achieving water security, according to the Asian Development Bank (ADB). Based on the National Water Security Index, the Philippines comes out of level two out of five, said Wouter Lincklaen Arriens, ADB’s water resources specialist. “It means it still has some quite a way to go,” Arriens said. The index contained in the Asian Water Development Outlook 2013 measures the water adequacy of 48 countries in Asia and the Pacific region. Although institutional arrangement and levels of public investment has been increasing, a level two in the index means that the Philippine government had “inadequate” legislation and policy toward securing water. Focus on PHL According to the latest study, the Philippine lagged in urban water security index, which gauges water services and management in cities. The country scored one out of five. Urban water security also gauges the country’s public infrastructure and utilities, especially wastewater treatment. To this, Arriens noted: “Much has to be done, especially in cities which is an area of serious concern.” The fastest increase in water demand now comes from industries and cities, ADB revealed. “Cities occupy 2 percent of the world’s land, [but] uses 75 percent of its resources.” The city’s wastewater was often released into rivers and lakes with only a fifth or 22 percent of discharges being treated, the study showed. The study added that 80 percent of Asia’s rivers are in Read More …