Download February 2, 2015 Electronics exports beat 2014 target -

February 2, 2015
Electronics exports beat 2014 target -- SEIPI
ELECTRONICS exports have beaten their 2014 growth target after a 7.9% rise in the
first 11 months of 2014, amid strong performances by the semiconductor and
electronic data processing subsectors, the president of the Semiconductor and
Electronics Industries in the Philippines, Inc. (SEIPI) said.
Fitch team in town for review
A TEAM from United Kingdom-based Fitch Ratings is in town this week for an annual
review of the Philippines’ creditworthiness.
Davao business counting on growth to energize neighboring regions
DAVAO CITY -- With overall investor confidence in Mindanao shaken by the
outcome of the Mamasapano raid, the Davao City Chamber of Commerce and
Industry, Inc. (DCCCII) will focus on growing existing businesses in the city to spur
growth in surrounding regions.
Peso seen sideways versus dollar as players make bets on mixed US data
THE PESO could trade sideways against the dollar this week after growth in the
world’s biggest economy continued to pick up last year -- even as the fourth-quarter
print was slower than expectations -- bolstering views that the US Federal Reserve
could still hike interest rates this year.
DTI objects to budget for investment perks
SETTING a budget for tax incentives could be damaging to the country’s image, a
Trade official said, as a set amount for perks would tie the hands of government
should investment levels exceed expectations.
Continued inflation slowdown marked January -- poll
THE RISE in consumer prices likely abated for a fifth straight month in January as
fuel costs dropped further and food remained cheap, a BusinessWorld poll showed,
giving the Bangko Sentral ng Pilipinas’ (BSP) room to keep rates steady for a longer
period to support economic growth.
Treasury bill rates may decline as market appetite improves
RATES of Treasury bills (T-bills) on offer today will likely see mixed movements as
players take a cue from the government’s rejection of bids in last month’s sale of
short-tenored debt, with 91-day papers in particular poised to fetch lower yields as
peso appreciation boosts demand for short-term securities.
Joblessness steadies in 2014 on Q4 hike
JOBLESSNESS among adults in the country steadied last year from 2013, as the
rate edged up last quarter to its highest point in 2014, the Social Weather Stations
(SWS) said in a new report, while noting that optimism on availability of work in the
coming months improved.
Infrastructure spending below programmed levels in 9 months to Sept.
INFRASTRUCTURE spending in the first nine months of 2014 fell below
programmed levels by almost a third as spending by key agencies was hindered by
various delays, data from the Department of Budget and Management (DBM)
showed.
Yields on gov’t debt steady ahead of Jan. inflation data
YIELD TRACKER
DESPITE better-than-expected numbers on Philippine economic growth for 2014,
yields on government securities barely moved last week as market players preferred
to stay on the sidelines in anticipation of January inflation data.
BEPS Action Plan 5: Countering harmful tax practices
Suits The C-Suite by Ma. Theresa M. Abarientos
IN LAST WEEK’S column we talked about the OECD’s BEPS Action Plan on Hybrid
Mismatch Arrangements. This week’s column focuses on the OECD’s Action Plan on
Harmful Tax Practices (HTP).
Bank lending growth to continue – Tetangco
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said bank
lending will sustain its growth despite contained money supply and central bank
measures that are considered restrictive by the industry.
PEZA urges repeal of Cabotage Law (Can also be read in Manila Standard Today)
The Philippine Economic Zone Authority (PEZA), which registers export-oriented
investments, has batted for the amendment of the Cabotage Law after its growth in
investment registration slowed down in 2014 on the lingering port congestion issue.
DOF, BIR reiterate impact of higher tax exemption cap
Internal Revenue Commissioner Kim S. Jacinto-Henares clarified that they are just
advising President Benigno S. Aquino III on the possible scenario should he sign the
bill raising the tax exemption ceiling.
Meralco’s NAIA facilities up for relocation
Power utility giant Manila Electric Company (Meralco) is seeking for the relocation of
some of its facilities at the Ninoy Aquino International Airport (NAIA) as well as value
recovery of the facilities which stand in the way of the expressway project for the
country’s international airport.
JP Morgan hikes Philippine growth forecast (Can also be read in Business Mirror)
MANILA, Philippines - US-based JP Morgan raised its forecast for Philippine
economic growth this year following the faster-than-estimated expansion in the last
quarter of 2014.
Market seen hitting new highs this week (Can also be read in Philippine Daily
Inquirer, Manila Times, Manila Standard Today)
MANILA, Philippines - The Philippine stock market may extend its upward trend
following its rapid ascent to the 7,600 mark last week.
Huge demand for latex-less jackfruit cited
MANILA, Philippines - There is currently a huge demand for jackfruit or langka, that
delectable golden fruit that exudes a heavenly scent and taste used in flavoring
pastries and ice creams, or served as dessert.
Government waives penalties, cuts taxes on facilities of IPPs
MANILA, Philippines - With the country facing imminent power crisis, the government
has reduced the real property taxes and waived the penalties imposed on the
facilities of independent power producers (IPPs) under build-operate-transfer
contracts with government-owned or controlled corporations.
Car importers set 42,000 sales target this year (Can also be read in Philippine Daily
Inquirer)
MANILA, Philippines - The country’s group of vehicle importers wants to grow its
sales up to 42,000 units this year as it expects strong demand for cars amid positive
economic growth.
Government to expand coverage of proposed US duty-free list
MANILA, Philippines - The government is looking to expand the coverage of a
proposal seeking duty-free entry to the US for goods produced in areas hit by Super
Typhoon Yolanda to include parts of Mindanao.
Philippine peso: A haven of stability
PHILEQUITY CORNER By Valentino Sy
With slowing economies around the world, governments are worried about a doubledip recession and deflation, hence the coordinated action by central banks in
previous years to stimulate through QE and low interest rates.
Divergent central bank policies
Full-year growth may hit gov’t goal (Can also be read in Manila Times)
MANILA, Philippines–Philippine economic growth can hit the government’s target of
at least 7 percent this year, given the falling oil prices and a rebound in government
spending, economists said.
BSP seen likely to ease key policy rates (Can also be read in Manila Times, Manila
Standard Today)
AS LOW fuel prices keep inflation subdued, monetary authorities may start
considering easing policy settings to give the economy as much room as it needs to
grow.
Construction sector boosts job market
MANILA, Philippines–Job growth at large enterprises in Metro Manila accelerated in
the third quarter of 2014, riding a strong performance of the construction industry,
according to the Philippine Statistics Authority (PSA).
Philippines to push infra, PPP financing across Apec
THE PHILIPPINES’ proposed roadmap for financial integration across the AsiaPacific Economic Cooperation (Apec) will serve to better connect the geographically
vast and segmented region, Department of Finance officials said.
PH officials to lobby trade bill on Capitol Hill
THE PHILIPPINE government will again lobby for the passage of the Philippine
Recovery Investment Development Export (PRIDE) bill before the United States
Congress. The bill seeks to provide duty-free access of, and preferential treatment
to, goods produced in certain areas in Mindanao and parts devastated by
Supertyphoon “Yolanda” in 2013.
2015 corporate earnings seen growing by 19%
THE PHILIPPINE stock market is poised for another bull run this year as corporate
earnings are seen growing at a much faster pace and finally catching up with lofty
stock valuations, the chief strategist of stock brokerage Deutsche Regis Partners
said.
PHL wants greater Apec integration in services
The Philippines is pushing for greater integration in the services sector among AsiaPacific Economic Cooperation (Apec) economies, according to the National
Economic and Development Authority (Neda).
House vows passage of competition law in March
The leadership of the House of Representatives has committed to passing the
proposed Philippine Fair Competition Act (PFCA) in March, after the Joint Foreign
Chambers (JFC) and Philippine business groups urged law makers to prioritize the
passage of the key economic measure.
Maybank Kim Eng sees 7% output growth in 2015
The country’s local output measured as the gross domestic product (GDP) could hit
7 percent this year, supported by accelerated government spending and lower oil
prices, according to Maybank Kim Eng economic research.
Global demand for PHL abaca to grow 5.7%
For the next five years, the Philippines will remain as the world’s top source of
abaca, the strongest-known natural fiber, a global market research and consulting
company said recently.
Allow foreign vessels to ply local routes–Peza
The Philippine Economic Zone Authority (Peza) is backing changes to the cabotage
law, saying the opening up of domestic routes to foreign vessels will jump-start the
development of other ports and provide relief to the bottlenecks in Manila’s ports.
DA to put up small-scale irrigation systems
In preparation for the summer months, the Department of Agriculture (DA) said it will
work with the National Irrigation Administration (NIA) to put up small-scale irrigation
systems nationwide.
Govt, insurers forge microinsurance pact
Amanifesto containing the master plan to expand microinsurance coverage in the
Philippines was signed by the government and the private sector to ensure that even
marginal-income Filipinos are protected against risks associated with climate
change.
Filipino nurses remain most active job seekers in US
A leader of the House of Representatives on Sunday said Filipinos remain the most
active job seekers in America, as a total of 4,580 Philippine-educated nurses took
the US National Licensure Examination (NCLEX) for the first time in 2014.
‘Aviation industry can’t take advantage of cheaper oil’
The expected growth in air travel this year, driven by the continuous drop in jet-fuel
prices, will be stunted by the insufficient capacity of the key gateways around the
country, a senior air-services regulator said.
Poorest Pinoys still pay more for less
The irony continues—the poorest Filipinos had to pay more for less. Data released
by the Philippine Statistics Authority (PSA) showed that the poorest 30 percent of the
Philippine population saw the prices of the goods they buy rising at an average rate
of 6 percent in 2014, way faster than the 4.1-percent inflation posted last year.
China’s factory gauge sinks to two-year low
A Chinese manufacturing gauge sank to a more than two-year low in January,
adding pressure on the government to stimulate an economy that last year expanded
at the slowest pace since 1990.
Government and business need each other
BusinessMirror Editorial
THE relationship between the ‘for-profit’ private sector and the ‘non-profit’
government has been a dilemma since the Industrial Revolution. That period marked
a turning point because businesses were able to move beyond the grip of the
government’s control on the economy. This was because prior to industrial
manufacturing, economies were agriculturally dependant. Further, the governments,
primarily monarchies, owned the land.
Cutting through concepts: Virtual currencies get real
KPMG (First of two parts)
Virtual currencies present both a threat and an opportunity to financial institutions.
Regardless of your position on this new market development, you would be well
advised to watch this space closely.
PEZA cuts 2015 investment target
Philippine Economic Zone Authority (PEZA) is cutting its investment target to eight to
nine percent this year due to last year’s minimal growth in investment pledges.
Ethanol output double, still short of demand (Can also be read in Manila Standard
Today)
The Philippines has doubled its production of ethanol last year to 222 million liters
from 114 million liters from but it is still short of demand.
APEC meet to boost local services sector (Can also be read in Malaya)
The services sector, which contributes 56.7 percent of the Philippines total GDP
growth, will be helped by the country’s hosting of the Asia-Pacific Economic
Cooperation (APEC) meetings here according to National Economic and
Development Authority.
China Jan manufacturing shrinks
BEIJING: China’s manufacturing activity contracted for the first time in more than two
years in January, an official survey showed Sunday, signalling further downward
pressure on the world’s second-largest economy.
Banks given leeway
The Bangko Sentral ng Pilipinas has granted regulatory and rediscounting relief
measures to banks operating in areas devastated by tropical storm Seniang.
Albay shares strategy with Pacific bloc
LEGAZPI CITY—The Pacific Economic Cooperation Council has invited Albay to
share its disaster risk reduction strategy in a Singapore forum this month to help
address the challenges of climate change.
Govt expenditures P274-b below target
The Budget Department said national government’s expenditure increased 6.5
percent in the first three quarters of 2014 from a year ago, but fell P274-billion short
of the target for the period.
Empowering unemployed women in agri plantation
IT WAS a dream come true for these women living near a pineapple plantation in
Barangay Cawayan in Calinan, Davao City who were determined to put meaning into
their monotonous afternoons.
Hopes built on construction
THE construction industry and real estate activities will continue to pose high, if not
the highest, growth in the country’s economy this year, an economist said, following
the announcement of a 6.9 percent increase in the gross domestic product (GDP) in
the fourth quarter of 2014.
Ethnic textiles to lead industry recovery
After taking a nosedive, the textiles industry is poised for recovery, this time on the
wings of home-grown fibers and dyes and smart fabrics.
DBM explains drop in disbursements
The Department of Budget and Management blamed the year-on-year drop in
disbursements in the third quarter of the previous year on lower spending for noncash items like interest payments, as well as delays in the grant of performance
based-bonuses, and the decline in subsidies, among others.
AEC vehicle for PH growth
The advent of the Asean Economic Community by the end of the year brings with it
massive opportunities as a vehicle for growth for the Philippines, which along with
the nine other member countries of the Association of Southeast Asian Nations will
be attractive alternative locations for foreign direct investments.
Heavy dependence
Written by Amada Macasaet
‘Limits on businesses that must be controlled by Filipinos is one big factor that
discourages foreign investors.’
Slowing and non-inclusive growth
Written by BENJAMIN DIOKNO
The Philippine economy grew by 6.1 percent in 2014, a full percentage point drop
from the 7.2 percent GDP growth in 2013, and much lower that the 6.5- 7.5 GDP
growth target last year.
MNTC bid for SCTEx heading to success
Business mogul Manuel Pangilinan has expressed gladness after the Bases
Conversion and Development Authority (BCDA) announced that the offer of Manila
North Tollways Corp. to operate and manage the longest expressway in the country
is headed for approval as no challenger emerged.
RP think tank still one of globe’s best
The Philippine Institute for Development Studies (PIDS) continues to be recognized
as one of the world’s best think tanks for its outstanding public policy research,
analysis, engagement, and impact.