Moody’s hints of upgrade for Phl

 Economy
Jun 032013
 
Moody’s hints of upgrade for Phl

MANILA, Philippines – The country’s third investment grade rating may be forthcoming as Moody’s Investors Service has lauded the Philippine economy’s robust expansion, the Aquino government’s record budget surplus, and the conduct of generally peaceful elections. Moody’s is the only global credit rating agency that still rates the Philippines one notch below investment grade or BA1.  The country obtained its first, investment grade upgrade from Fitch Ratings Services in March.  Standard & Poors’ followed suit in May. In a statement issued yesterday, Moody’s said the Philippines’ first quarter GDP (gross domestic product) and record budget surplus are “credit positive,” a sign that that an upgrade may be in the offing. National Treasurer Rosalia De Leon said officials from Moody’s are expected to arrive in the Philippines next month.  Last week, the government announced that it posted a P36.8-billion budget surplus in April, the highest monthly surplus it achieved, largely due to a 28.9- percent year-on-year increase in income tax receipts. “The improvement in tax receipts demonstrates that the government’s efforts to bolster tax compliance are gaining traction and helping to boost revenue generation, one of the key weaknesses of the Philippines’ credit profile. The relatively moderate year-to-date fiscal deficit also suggests that a degree of spending restraint in the run-up to the midterm elections held last month and that the government’s spending decisions are increasingly driven by long-term economic objectives rather than short-term political ones,” said Moody’s senior analyst Christian de Guzman. Business ( Article MRec ), pagematch: 1, sectionmatch: Read More …

Peso up from 11-mo slump

 Economy
May 302013
 
Peso up from 11-mo slump

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 …

Gov’t on track to meeting debt, revenue goals

 Economy
May 302013
 
Gov’t on track to meeting debt, revenue goals

MANILA, Philippines – The government is “on track” to meeting its debt and revenue goals, the Department of Finance (DOF) said, despite the first-quarter data showing new figures were actually lower than their previous year’s levels. Revenue and debt ratios – which are important gauges for credit raters – were released yesterday, following the economic performance report that showed growth hitting 7.8 percent as of March. For the first quarter, state revenues already accounted for 13.7 percent of economic output, lower than the 14.9 percent posted in the same period last year. The target has been set at 14.7 percent. Of these, tax collections were equivalent to 11.92 percent, down from 12.5 percent, but on track to meeting the 13.5-percent target for the year. Revenue and tax efforts gauge how much the government has collected as the economy expanded. Fast economic growth should mean higher revenues – and ratios – and vice-versa. Finance Assistant Secretary Ma. Teresa Habitan, in an interview, downplayed the year-on-year decrease in figures. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  “It is too early to tell how our tax effort would turn out for the year based on just one quarter,” Habitan told The STAR.  “We are hopeful tax collections would eventually catch up with a buoyant economy,” she added. By way of comparison, the economy grew 7.8 percent during the first quarter, while total revenues only inched up 0.9 percent. Last Monday, the government said it attained a “record-high” budget surplus of P36.803 Read More …

NEDA chief: GDP growth still about the poor

 Economy
May 302013
 
NEDA chief: GDP growth still about the poor

A man cooks his food along a sidewalk in Tondo district, Manila. EDD GUMBAN/FILE PHOTO MANILA, Philippines – The country may have an impressive gross domestic product (GDP) in the first quarter, but an economic official believes that this growth is still about its impact to the poor. The National Statistical Coordination Board (NSCB) revealed on Thursday that the Philippines’ GDP grew by 7.8 percent in the first three months, exceeding market and government expectations and beating Southeast Asian nations and even China. But Socioeconomic Planning Sec. Arsenio Balisacan admitted that the issue is all about making the GDP growth inclusive. “We know, however, that inclusive growth is not about averages, but about the lower part of the income distribution, namely, the poor,” said Balisacan, who is also the director-general of the National Economic and Development Authority (NEDA). “On the other hand, we also know that growth is still the necessary condition for inclusive growth,” he added. Malacanang said its goal is to ensure that the recent economic gains of the country are being felt by all. “That is always the target; that nobody will be left behind,” said Deputy Presidential Spokesperson Abigail Valte. “With the high numbers that we have, even with the boost in investor confidence, the rallies that you’ve been seeing in the stock market, ang importante po sa atin ay ‘yung maramdaman ng lahat [‘yung economic growth],” she added. But Valte noted that the effects of these economic gains do not happen overnight. The NSCB said Read More …

Philippines called 'brightest' in Southeast Asia

 Economy
May 282013
 
Philippines called 'brightest' in Southeast Asia

Photo shows the Makati City skyline during sunset. ANDY ENERO MANILA, Philippines – A report by the Institute of Chartered Accountants in England and Wales (ICAEW) said the Philippines is significantly contributing to the “glowing” Southeast Asian region with its bright economic prospects. “The Philippines is the brightest spark in glowing Asean region,” the report said, citing the recent quarterly review Economic Insight: South East Asia by its partner organization Cebr that highlights Indonesia, Malaysia, the Philippines, Singapore and Thailand. ICAEW said that the “very positive” outlook for the country which is expected to grow 5.1 percent in GDP this year and in 2014 can be attributed to strong exports, “booming” household expenditures and the government’s heavy infrastructure investments. “The country looks set to shake off its former reputation as the ‘sick man of Asia’,” Cebr’s macroeconomics head Charles Davis said in a statement. Davis said, however, that the country’s capacity constraints will likely lead to a slowdown in growth, which is seen to fall to 4.5 percent in 2015. Such constraints cause higher inflation and tighter monetary policy. Furthermore, the growth in stock prices in the Philippines–currently at 34 percent–is seen unsustainable and suggests a bubble to emerge, Davis warned. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Stagnation in industrialized nations means investors are turning to emerging economies in search of higher yield,” Davis, also an economic advisor at ICAEW, said. ICAEW South East Asia director Mark Billington, meanwhile, added that the Philippines’ emergence in the region Read More …

UN arm forecasts 6.2% Phl growth

 Economy
Apr 182013
 
UN arm forecasts 6.2% Phl growth

MANILA, Philippines – The Philippine economy is expected to grow by 6.2 percent in 2013, driven by strong private consumption, according to a survey released by the United Nations Economic and Social Survey of Asia and the Pacific (UNESCAP) yesterday. In its briefing paper, UNESCAP noted while there could be threats of poor global demand, the Philippines could bank on its aggressive investment programs. “Poor global demand, including a slowdown in major trading partners such as China, could impede (Philippines) economic expansion, however. Speedy growth could materialize if progress on the Public-Private Partnership (PPP) gains more momentum, helped by the upgrade of the country’s rating to investment grade status in March,” it said. PPP is a government initiative to boost investment and, at the same time, provide the public with adequate, safe, efficient, reliable,and reasonably-priced infrastructure and development facilities while affording the private sector a level playing field, reasonable returns and appropriate sharing of risks. Early this year, the government approved four big-ticket infrastructure projects under the PPP program totaling more than P80 billion. Fitch Ratings early this month raised the Philippines’ credit rating to investment grade. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 According to the survey, the Philippine government expects to raise infrastructure spending to five percent of GDP (gross domestic product) by 2016 from two percent in 2012. Aside from the slump in its regional partners’ growth, another major concern for the Philippines, UNESCAP noted, is higher job creation in the formal sector which remains Read More …

PH Seeks More Public-Private Partnership Projects

 Entertainment
Mar 132013
 
PH Seeks More Public-Private Partnership Projects

Public-Private Partnership. Ambassador Jose L. Cuisia, Jr. presents the challenges and opportunities in infrastructure investments in the Philippines in a panel discussion on Monday, 11 March 2012, hosted by the Center for Strategic and International Studies in Washington, D.C. (Philippine Embassy Photo by Lilibeth Almonte-Arbez) WASHINGTON, D.C.—The Philippines wants to enter into more partnerships with the private sector as Manila continues to invest in the development of key infrastructure to help sustain its economic growth. “The Philippine government remains committed to driving infrastructure development as it recognizes its importance to future rapid and sustainable economic growth,” Ambassador Jose L. Cuisia, Jr. told a forum at the Center for Strategic and International Studies (CSIS) here on Monday, 11 March 2013. In his presentation “Philippines: Opportunities and Challenges in Infrastructure Investment,” Ambassador Cuisia urged investors to take another look at the Philippines  and take advantage of the country’s unprecedented growth that has made it the s0-called rising star of East Asia. Ambassador Cuisia said that under the Philippine Development Plan 2011-2016, the government of President Benigno S. Aquino III seeks to not only accelerate infrastructure development but also provide safe, efficient, reliable, cost-effective and sustainable infrastructure. With the 6.6 percent growth in GDP, which was the highest in Southeast Asia in 2012, Ambassador Cuisia said the Philippines can be expected to continue increasing infrastructure spending to as much as 5 percent of GDP by 2016. Last year, the Philippines allocated 2.6 percent of GDP for infrastructure spending from 1 percent in 2005. Read More …

Luxembourg-BPO to make Phl its biggest operation

 Economy
Feb 192013
 
Luxembourg-BPO to make Phl its biggest operation

MANILA, Philippines – Luxembourg-based Transcom Worldwide S.A. is set to hire 5,000 new workers this year to maintain the Philippines as its largest operations in terms of workforce in its global business. Transcom Worldwide president and chief executive officer Johan Eriksson said in an interview with The STAR that the company is bullish about the business process outsourcing (BPO) industry in the Philippines after the country posted a strong growth last year. “We definitely see the Philippines as a growth area. Things are growing rapidly here and we see some more opportunities,” Eriksson stressed. Data from the National Statistical Coordination Board (NSCB) showed that the country’s gross domestic product (GDP) grew 6.6 percent last year, exceeding the target of five percent to six percent set by the Cabinet-level Development Budget Coordination Committee (DBCC). This made the Philippines the second fastest in terms of economic growth in the region after China. This year, the DBCC has set a GDP growth target of six percent to seven percent. The company through Transcom Worldwide Philippines Inc. is looking at raising its workforce by 50 percent to 15,000 by the end of this year from the current level of close to 10,000. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Eriksson said the Philippines is its largest in terms of the number of workforce, currently accounting for a third of its 30,000 global workforce. The company operates 70 contact centers in 28 countries including four sites in the Philippines. He pointed out that Read More …

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