Poverty, income inequality remain high in Phl

 Economy
Jun 292013
 
Poverty, income inequality remain high in Phl

MANILA, Philippines – Despite robust economic growth so far this year and a series of international credit rating upgrades, inclusive growth and poverty alleviation still elude the Philippines. The country’s gross domestic product (GDP) grew an impressive 7.8 percent in the first three months of 2013, after an equally strong growth rate of 6.8 percent in whole of 2012. But Socioeconomic Planning Secretary Arsenio M. Balisacan said compared to other Asian countries, the Philippines still has the lowest total investment share to GDP from 2010-2012 relative to India, Indonesia, Malaysia, Thailand and Vietnam. “Poverty incidence remains high, and so does income inequality. Moreover, more than 60 percent of the entire country’s economic growth is concentrated in Metro Manila, Calabarzon, and Central Luzon,” Balisacan said at a recent forum by the Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD). Substantial poverty reduction achieved in developing countries in the past two decades was due to rapid economic growth and structural transformation in these countries, particularly in Asia. Globally, this growth contributed nearly two-thirds of the observed poverty reduction in the developing world. “A one-percent increase in GDP per capita reduces poverty by 1.7 percent,” Balisacan said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Likewise, the country’s economic growth barely exceeded the population growth rate, which has continued to expand relatively rapidly at about two percent a year. Thus shifting the economy to a higher growth path – and keeping it there for the long term – Read More …

China's state media warns PHL of 'counterstrike' in West PHL Sea

 News
Jun 282013
 
China's state media warns PHL of 'counterstrike' in West PHL Sea

BEIJING – China’s state media warned on Saturday that a “counterstrike” against the Philippines was inevitable if it continues to provoke Beijing in the West Philippine Sea (South China Sea), potentially Asia’s biggest military troublespot. The warning comes as ministers from both countries attend an Association of Southeast Asian Nations meeting in Brunei, starting Saturday, which hopes to reach a legally binding code of conduct to manage maritime conduct in disputed areas. At stake are potentially massive offshore oil reserves. The seas also lie on shipping lanes and fishing grounds. Both China and the Philippines have been locked in a decades-old territorial squabble over the West Philippine Sea, with tensions flaring after the Philippines moved new soldiers and supplies last week to a disputed coral reef, prompting Beijing to condemn Manila’s “illegal occupation”. The overseas edition of the People’s Daily, the official newspaper of the Chinese Communist Party, said in a front-page commentary that the Philippines had committed “seven sins” in the West Philippine Sea. These include the “illegal occupation” of the Spratly Islands, inviting foreign capital to engage in oil and gas development in the disputed waters and promoting the “internationalisation” of the waters, said the commentary. The Philippines has called on the United States to act as a “patron”, while ASEAN has become an “accomplice,” said the commentary, which does not amount to official policy but can reflect the government’s thinking. “The Philippines, knowing that it’s weak, believes that ‘a crying child will have milk to drink’,” the Read More …

Jollibee banks on Pinoys’ higher spending power

 Economy
Jun 282013
 
Jollibee banks on Pinoys’ higher spending power

MANILA, Philippines – Fastfood giant Jollibee Foods Corp. (JFC) is banking on Filipinos’ higher spending power, new branches and product launches to grow its profits further this year. The Philippines’ largest quickservice restaurant chain also expects better profitability in its operations in China, top company executives said yesterday. “There are two [growth] drivers: one is better products and the other one is election spending,” JFC chief finance officer Ysmael V. Baysa told reporters after the company’s annual stockholders’ meeting. Baysa said the effects of the election spending will taper off in the second half but JFC plans to introduce new products and improve its lineup. The current weakness of the peso is also seen to benefit the Philippine operations of JFC. “From different angles, it can be good [because] the OFW family’s income will be a little bit higher,” said JFC chairman and CEO Tony Tan Caktiong. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For the entire year, JFC expects earnings per share to grow 12 percent. This will require at least a five-percent uptick in samestore sales, Baysa said. In the first three months, JFC’s net income grew 29 percent to P881 million from P682 million a year ago due to higher samestore sales and new branches. Systemwide sales, a measure of all sales to customers both in company-owned and franchised stores, picked up 10.6 percent to P23.83 billion in the first quarter. For its expansion plans, the fastfood giant is sticking to its plan of spending Read More …

Public service

 Economy
Jun 272013
 
Public service

Having just returned from an extended trip abroad, I am shocked at the headlines regarding Department of Labor personnel accused of “sex for fly”.  Even assuming they are guilty, I hasten to confirm that those instances are the exception rather than the rule. It may not be as newsworthy but there are individuals who have served the nation with dignity and commitment to excellence which greatly outnumber the sorry lot that give public service a bad name. I would like to cite two examples of individuals who have made immense contribution to our national interest and yet have managed to keep under the radar despite their very senior positions in government and the private sector. Tomas I. Alcantara He cannot be categorized as a career public servant although he continued to serve the public interest long after his brief stint in government. Tommy belongs to a prosperous Davao family.  He graduated from Ateneo de Manila, went to Harvard for his MBA and then to Columbia for an Advanced Management Program. He then went into private business as was expected of him.  In 1986, he was invited to join the government of President Cory Aquino as undersecretary of Trade and Industry, a position he occupied for nine years.  I first met him in 1992 when I was in DFA.  He impressed me as a driven individual, politely aggressive but fiercely stubborn if prevented from getting the job done.  During my first trip to Japan, he volunteered to join my delegation.  It Read More …

Amnesty appeals to Filipino captors of 2 sisters

 News
Jun 262013
 
Amnesty appeals to Filipino captors of 2 sisters

Associated Press 12:19 pm | Thursday, June 27th, 2013 Nadjoua Bansil (left) and sister Linda (right). AP MANILA, Philippines—Amnesty International and the family of two Filipino-Algerian sisters called for suspected Islamic extremists to release the women immediately, saying Thursday that they are human rights defenders and filmmakers who focused on the plight of impoverished Muslims in Mindanao. Nadjoua and Linda Bansil were taken by about 10 suspected Abu Sayyaf members Saturday in southern Sulu province’s Patikul town while working on a short film about Muslim coffee farmers. At least three companions of the sisters, who were seized from a van, were left behind by the gunmen, police said. Their brother, Mohammed Bansil, noted that his sisters were seized while tackling the very issues at the root of the decades-old minority Muslim unrest in the southern Philippines. “Instead of filming, they now have become the story,” he told The Associated Press. Ritz Lee Santos, who heads Amnesty International Philippines, said that the sisters have been longtime human rights volunteers. “It’s sad that they were taken because they went to Sulu to tell the whole country about the struggles of poor Muslims,” he said. Linda Bansil, 37, wrote for Amnesty International publications in the Philippines and her 39-year-old sister volunteered work on films about the travails and culture of Filipino tribesmen. They also worked together to produce low-budget, independent films showcasing Filipino Muslim life and culture, their family said. “Even on the streets, they’ll pick up homeless children or intervene when somebody’s Read More …

Volatility to last for months – officials

 Economy
Jun 262013
 
Volatility to last for months – officials

MANILA, Philippines – Volatility in the financial markets could last for months, but the Philippines will survive given its strong fundamentals, officials said yesterday.  “These are interesting times again,” Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said in a speech before financial officers in The Asset Forum in Makati City. The central bank chief said the “furor” would “subside” once investors get a complete grasp of the US Federal Reserve’s pronouncements that it may scale down stimulus measures this year. Investors have been rattled by concerns cheap money from the $85-billion monthly bond buying program of the US would end soon, prompting them to reposition their holdings back to the world’s largest economy. The volatile scenario “will be there for a while, possibly for months,” said International Monetary Fund resident representative Shanaka Jayanath Peiris in the same forum. But for National Treasurer Rosalia de Leon, what is important is that the Philippines is in a better position than it was five years ago. “The Philippines is no stranger to heightened volatility,” she said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The sentiment-led slump in the region led to a drop in the Philippine Stock Exchange index by as much as 6.5 percent to the “bear” territory last Tuesday. Yesterday, it closed up 5.7 percent at 6,118.94. The volatility also hit the foreign exchange market, with the peso touching the 44-peso level versus the greenback last Monday before it recovered to close at 43.43 yesterday. “There is Read More …

Stock market: Time to buy

 Economy
Jun 262013
 
Stock market: Time to buy

With the stock market supposedly in bear territory after almost a week in a consecutive downtrend – wiping an estimated $62 billion in value from local stocks ­– analysts continue to be positive in their outlook, saying that the downtrend is caused by external factors. Global markets closed in the red amid jitters after news came out that the US Federal Reserve plans to cut back on its economic stimulus program, coupled with concerns over an impending credit crunch in China. Actually, economists like former Budget Secretary Ben Diokno are saying the country is in a better position to sustain growth and create more jobs in the process. After all, economic fundamentals remain very strong and intact, to which as a natural consequence stocks will start picking up again. Even our favorite stock market “seer” thinks so, too, saying that now is the best time to buy. According to our financial soothsayer, some of the good buys would be Aboitiz Power and SM Prime Holdings (SMPH) whose shares are considered undervalued. However, the steady growth SM Prime has displayed – overshooting forecasts for the last two years – has been rather impressive. The mall development arm of the Henry Sy group posted up to 15-percent profit to P2.79 billion for the first quarter of 2013. Many are convinced that the recent merger between SM Development Corp. and SM Investments Corp. under SMPH will push growth earnings this year even higher than in 2012, which saw SM Prime achieving better-than-expected earnings Read More …

PSEi posts biggest one-day gain since 2007 after entering bear market

 Economy
Jun 262013
 
PSEi posts biggest one-day gain since 2007 after entering bear market

MANILA, Philippines – The Philippine Stock Exchange index (PSEi) on Wednesday made its biggest one-day gain since August 2007 after entering bear territory on Monday, the local bourse reported. The bellwether PSEi returned to the 6,000 level after closing 329.88 points or 5.7 percent higher than Tuesday’s 5,789.06, bringing its current level to 6,118.94. Positive news from the United States economy and listed companies’ impressive first quarter income performance gave PSEi a push after a massive selloff wiped its gains for the year. On Monday, the main index slumped 3.05 percent or 181.99 points to 5,789.06, sinking by 21.68 percent after posting 7,392.20- its highest record- on May 15 this year. A decline of 20 percent or more signals the market’s entry into the bear market. “Against a backdrop of solid fundamentals that have not changed even amidst the volatilities in the past weeks, the declines have served to put some stocks at attractive prices. I think this is what we saw today with the strong recovery of the market,” PSE Chairman Jose Pardo said. He added that volatility is a natural effect of uncertainties due to policy announcements abroad. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “When the market goes past the overreaction phase, countries with strong fundamentals and buffers against uncertainties should be able to stay the course of their growth. The causes for the Philippines’ impressive growth continue to persist and should remain strong moving forward,” Pardo said. Earlier, the local bourse reported that earnings Read More …

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