Sunday, January 18, 2009

e-news sum/1.19.09

Crisis can also cut economic growth in 2010–ADB

DevNews

Monday; January 19, 2009

Peso-dollar rate: $1.00 = P47.20

Key national news coverage of the

National Economic and Development Authority (NEDA)

and other related news

There are 11 articles of note (3 neutral, 8 other) in the national press that can shape perceptions regarding NEDA and the economy.

neutral news

Crisis can also cut economic growth in 2010–ADB

Business Mirror

http://www.businessmirror.com.ph/index.php?option=com_content&view=article&catid=33%3Aeconomy&id=4742%3Acrisis-can-also-cut-economic-growth-in-2010adb&Itemid=60

by Cai U. Ordinario

THE Asian Development Bank (ADB) has warned that the economic crisis gripping countries worldwide could also “hammer” growth prospects, particularly in Asian countries like the Philippines, until 2010.

An ADB Economics Working Paper Series titled, “The US Financial Crisis, Global Financial Turmoil and Developing Asia: Is the Era of High Growth at an End?” stated there is a possibility the crisis will stretch for 24 months, not 18 months as the ADB earlier predicted.

Under such a scenario, the Manila-based multilateral financing institution said prolonged slowdown in industrial countries that would stretch until the first half of 2010 will further “batter” regional export growth, reduce growth and slow down domestic demand.

Neda Director General Ralph Recto told reporters on Friday, after his speech at the Meeting of Major Business Organizations on the 2009 Economic Roadmap organized by the Philippine Chamber of Commerce and Industry, that growth in 2008 will likely hit 4.6 percent while GDP in 2009 will be at 4.7 percent.

Recto said the slowdown in the country’s GDP is attributable to the crisis.

SSS to contribute P12.5 billion to P300-billion stimulus fund
Phil. Star

http://www.philstar.com/Article.aspx?ArticleId=432831&publicationSubCategoryId=66

By Iris C. Gonzales


The Social Security System (SSS), the state-owned pension fund for private sector employees, is eyeing to contribute P12.5 billion to the government’s proposed P300-billion crisis fund, its top official said Friday night.

SSS president and chief executive officer Romulo Neri said the contribution that SSS is eyeing is through the provision of funds for lending to the private sector.

Neri said SSS is looking at joining other government financial institutions in pooling P100 billion which would form part of hte P300 billion stimulus package.

Socioeconomic Planning Secretary Ralph Recto earlier said the P300 billion-fund would be rolled out within the next two years to help the Philippines prepare for what happens after the crisis.

This way, the government would able to come up with an efficient mechanism on how to go about utilizing the fund. He said this mechanism should help ensure that there would be no room for corruption in the disbursement of the funds.

Concession extension plan splits water firms, puts regulators in a fix
http://www.abs-cbnnews.com/business/01/12/09/concession-extension-plan-splits-water-firms-puts-regulators-fix

by Roel Landingin, Newsbreak Posted on 01/12/2009 9:53 AM

It’s almost like having your cake and eating it too, except, in this case, it’s all about water. Still, that is probably why many members of President Gloria Arroyo’s Cabinet are backing what is being touted as a timely trade-off that could ease an imminent water rate increase in Metro Manila.

The idea is simple. In return for extending the 25-year concession granted to Manila Water Co. and Maynilad Water Service Inc. by another ten year from 2022 to 2032, the two water companies are to moderate planned water rate hikes early this year and boost capital expenditures.

“The proposal would avert a water rate increase and increase investments amid the downturn,” said
Economic Planning Secretary Ralph Recto, who pushed for the idea during a Cabinet meeting in mid-December. “It will work like a stimulus package, except it’s being done by the private sector rather than the government.”

other news

Excise tax key in filling deficit

Business Mirror

http://www.businessmirror.com.ph/index.php?option=com_content&view=category&id=23&layout=blog&Itemid=58

by Jun Vallecera

THE government has made it known the excise-tax reforms for alcohol and cigarettes are far from complete, and could stand further reforms.

Finance Secretary Margarito Teves said on Friday the Department of Finance (DOF) supports continuing moves to increase the tax on sin products and raise possibly more than P100 billion from the measure.

“We believe that there is scope for an increase in the excise tax on alcohol and tobacco,” Teves said at the joint meeting of members of the Philippine Chamber of Commerce and Industry, where he was guest speaker.

Taxing alcohol and tobacco has proven difficult and frustrating for the government in terms of delivery of revenue targets—which continues to disappoint—and in terms of efficient implementation.

Bankers remain optimistic in ’09 amid crisis

Business Mirror

http://www.businessmirror.com.ph/index.php?option=com_content&view=article&catid=23%3Atopnews&id=4758%3Abankers-remain-optimistic-in-09-amid-crisis&Itemid=58

by Erik de la Cruz

ECONOMIC growth this year will be slower than last year due to the global financial crisis, but executives of some of the Philippines’ biggest banks remain optimistic 2009 will see still-positive bottom lines for them.

“We are cautiously optimistic. We are still forecasting growth and we will review the figures every quarter to calibrate our targets,” said Tessie Sy-Coson, chairman of Banco de Oro Unibank (BDO), the country’s largest in terms of assets.

Philippine National Bank (PNB), which is expected to move to fourth place from being sixth-biggest in terms of assets should it merge with Allied Banking Corp. later this year, sees no major corporate failures this year.

Stimulus, poll automation in budget priority

Business Mirror

http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=4743:stimulus-poll-automation-in-budget-priority&catid=33:economy&Itemid=60

HOUSE Speaker Prospero Nograles said they are determined to pass the 2009 national budget so it will be on top of the House agenda today, when they resume session, and called on his colleagues to focus on the money measure, the passage of which will trigger the legislation of the P30-billion economic-stimulus appropriation.

At a weekend forum in Manila, Nograles also acknowledged the need to address its “unfinished businesses,” like the controversial Charter change, the reproductive-health bill and the extension of the Comprehensive Agrarian Reform Program (CARP). “There is a need to act on these controversial bills because we only have 18 sessions. When our session ends in March 6, we will be taking another monthlong break.”

“The problem [with my colleagues] is, as long as the bill is controversial, they don’t want to tackle it on the floor. But how can we be public and transparent about it if that’s the case?”

The proposed P30-billion stimulus fund is intended to prime job-generating projects in agriculture, environment, health and education.

Jpepa implementation to cost BOC P12.5B in forgone revenues

Business Mirror

http://www.businessmirror.com.ph/index.php?option=com_content&view=article&catid=33%3Aeconomy&id=4741%3Ajpepa-implementation-to-cost-boc-p125b-in-forgone-revenues&Itemid=60

by VG Cabuag

THE Bureau of Customs (BOC), the national government’s second-largest revenue earner, said the implementation of Japan-Philippines Economic Partnership Agreement (Jpepa) will hurt its collection for the year as it stands to lose billions of pesos.

Based on its initial computation, the said bilateral agreement, which was ratified by the Senate late last year, will result in about P12.5 billion in forgone revenues from its collection from last year, BOC Commissioner Napoleon Morales said.

Imports from Japan make up 10 percent of the bureau’s revenue collections, which from last year’s target amounts to about P25.4 billion, he said. Morales said half of that amount would be forgone revenues.

“If we used to collect 10 percent on items A-Z imported from Japan, some will be reduced to 8 percent, others 5 percent; some will be 3 percent or 2 percent depending on the items…until everything will become zero. Definitely, it has an impact on our revenue generation,” Morales said.

Inflation seen to average even lower than 6 percent

Business Mirror

http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=4747:inflation-seen-to-average-even-lower-than-6-percent&catid=26:nation&Itemid=63

by Jun Vallecera

INFLATION, seen to average around 6 percent to 8 percent this year, should moderate to a rate even lower than the 6-percent low end of the target, reported the Bangko Sentral ng Pilipinas on Friday.

According to Deputy Governor Diwa Guinigundo, it should be possible for inflation to average lower than 6 percent because downtrending inflation has started.

His optimism is not misplaced since the actual inflation in December, originally feared to remain in double digits, averaged only 8 percent. “Its inertial impact should help lower inflation in the future, particularly for the rest of this year.”

Concerns seen troubling P100-B stimulus tagged

Businessworld

http://www.bworldonline.com/BW011909/content.php?id=002

By Jessica Anne D. Hermosa

THE LACK OF RULES and right-of-way problems are holding up implementation of a P100-billion stimulus plan, business leaders said.

As such, members of the Philippine Chamber of Commerce and Industry (PCCI) — the private sector proponent of the fund — are meeting today to settle the mechanics of the fund, which is to be shouldered by both the public and private sectors. These rules will then be presented to the Cabinet for approval.

Business leaders will also be reviewing the status of right-of-way issues behind infrastructure projects the fund may finance, and will be choosing three blueprints at the meeting to recommend to the government, PCCI officials said.

Spoiled and supportive

Inquirer

http://business.inquirer.net/money/columns/view/20090118-184121/Spoiled-and-supportive

No Free Lunch by Cielito Habito

FILIPINOS, IT IS OFTEN SAID, are a spoiled lot. Many (most?) of us don’t do much walking in our daily lives because we are so used to having door-to-door transport. And I’m not talking about those of us with cars. I’m talking about the average Filipino who, to get anywhere, steps out of the house, walks several paces (if at all), hails a pedicab or motorized tricycle, gets a ride to the jeepney or bus stop, rides the jeepney or bus, gets off, hops on to another pedicab/tricycle, and gets transported right to the door of his/her final destination.

Sometimes we carry this “spoiledness” a bit too far. It never fails to both amuse and annoy me when I find myself driving behind a jeepney letting off a passenger in our town of Los Banos (and we all know they never pull over to the side when they do!), and then, just five meters ahead, stops again to pick up a new passenger. I marvel at how a driver could be so obliging as to stop exactly where the alighting passenger yells “para!” even as he knows he will very shortly stop again for another passenger waiting just a few meters away. Thank God (should I say thank MMDA?) we have designated jeepney stops in Metro Manila; otherwise traffic in the city would never move!

World Bank proposes 10 development projects for RP worth $1.336 billion
Philippine Star

http://www.philstar.com/Article.aspx?ArticleId=432827&publicationSubCategoryId=66

By Ted P. Torres

The World Bank has 10 proposed development projects for the Philippines with a combined project cost of $1.336 billion.

The global financial institution said it would be the primary source of the funds, with some contributions from “some non-bank sources.”

Biggest among the projects in the pipeline is the $682-million Light Railway Train (LRT) Line 1 South Extension project. The Light Rail Transit Authority (LRTA) will be the implementing government agency for the project.

The $180-million Cavite-Laguna North-South Highway project is the second largest project in the list with the Department of Public Works and Highways (DPWH) as implementing agency.

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