http://www.mb.com.ph/BSNS2005012727282.html


Export sector expected to grow 10% this year, to hit $42 billion



The country’s exports are expected to reach $40 billion-$42 billion this year mainly due to surges in the shipment of manufactured items, electronic products, machinery and garments for a growth rate of at least 10 percent.

Bangko Sentral ng Pilipinas Governor Rafael B. Buenaventura said this is a conservative estimate in fact, that the exporting community could aim higher. "The $40 billion is easy, we can do more. (We need) higher exports and we can do better," he said. Exports, like foreign direct investments, portfolio money and overseas Filipino workers’ remittances jack up the BSP-monitored gross international reserves.

Trade Secretary Cesar V. Purisima, incoming finance chief on February 15, said the projection for 2005 exports is $40 billion. "It’s conservative and achievable," he said.

Purisima said exports performance is at pace with global market growth and the improving geographical balance will enhance shipments this year.

Philippine Export Confederation chair Sergio Ortiz Luis Jr. said the Philippine export sector is expected to at least match last year’s revenue growth this year, with electronics and garments continuing to be the star performers,.

"All in all, I’m still hoping that the sector would post at least a 10% growth also this year," said Ortiz Luis.

While electronics and garments will remain the country’s top export earners, Ortiz-Luis said their share in total exports "may slowly be easing," as other export goods make headway in new markets.

Latest government data show that exports in the 11 months to November 2004 rose 9.9% on year to $36.3 billion, boosted by a 19.5% growth in November alone — the best performance in more than two years.

For 2004, exports are expected to hit $38 billion while the government projection for the current year is a growth forecast of between 8 to 10 percent. The National Economic Development Authority said it would be an 8percent growth while the private sector is more optimistic at 10 percent.

The government foresees a more business-friendly environment for exports in 2005.

Bilateral trade agreements, favorable laws for business, increased investments in the export sector, and an improved export plan in the next five years would further strengthen the country’s international trading position. These agreements are designed to increase the country’s opportunity to ship more goods to export markets.

Under the Philippine Export Development Plan 2005-2007 by the government and private sector, the plan aims to strategically align the country’s products to high impact markets and further diversify export products based on the competitive advantage of the country.

The government will also pursue a rationalized approach to key markets that include the United States, Japan and China, among others.

Economic Planning Secretary Romulo Neri had said then that while the export sector will achieve a targeted 10% growth in 2004, growth in 2005 may slow to 8% due to a possible weakening in the global economy. (LCC)

=====================================================


If the economy improves further, then we may be able to give more for our AFP modernization program.

:armycheers:

Nice start! :thumb:

So, is this a sign that we are going to have a much better economy this year?


Check this;

Stocks up 23.22 points, peso at 55.103:$1

The Phisix advanced 23.22 points on Friday as investors continued to buy shares on the back of strong economic fundamentals.

The main index added 1.166 percent to close at 2,014.61.

The commercial-industrial, oil, property and banks and financial services sectors advanced while the all-shares and mining subindicators retreated.

Gainers outnumbered losers, 99 to 27, with 33 issues unchanged. Value turnover was at P1,839,681 billion.

Jovis Vistan of AB Capital Securities said optimism is being driven by the peso's rally and improvements in the government's fiscal standing.

MORE: http://www.abs-cbnnews.com/FlashNewsStory....?FlashOID=23380


Peso strengthens to 55.03, Phisix up

The peso continued its rally in early trading Friday, reaching 55.03 to 55.08 against the dollar.

The currency closed at 55.15 per US dollar on Thursday, its strongest since January 2004.

Volume was at $70 million as of posting time.

Several analysts said they expect the peso to stabilize at the 54 to the dollar level at the end of the first quarter.

At the stock market, the Phisix breached the 2,000 resistance level in early trading and was up 25 points at 2,016.

MORE : http://www.abs-cbnnews.com/FlashNewsStory....?FlashOID=23374

Peso may breach P54:$1 if RP keeps fiscal reforms, avoids downgrade - analyst

The peso may breach the 54 to the US dollar level if the Philippines avoids further credit downgrades and continues implementing much needed fiscal reforms, an analyst at BNP Paribas, Singapore told ANC Friday.

Senior currency analyst Thio Chin Loo said that the factors driving the peso's rally at the start of the year are strong.

"We've seen a fairly good showing of the fiscal deficit in 2004, when the fiscal deficit was better than the target," she said.

"Despite the potential negative credit downgrade, we see capital inflows into the Philippines," she said, adding that some of the momentum building for the peso's gain is broadening.

She, however, cautioned that the peso's breaching the 54 level in a short period may need more developments.

"I think it will depend on more advances, particularly on the fiscal front and the avoidance of credit downgrade," she said.

MORE: http://www.abs-cbnnews.com/FlashNewsStory....?FlashOID=23378

Just read this today. At last some more good news for our country. :thumb:

http://www.manilatimes.net/national/2005/f...050201top1.html

Tuesday, February 01, 2005


RP posts record GDP

6.1 percent growth highest in 15 years; President ‘delighted’ by result

By Darwin G. Amojelar, Researcher

FUELED by a strong services sector, the country’s economy grew 6.1 percent in 2004 from 4.7 percent in 2003, the highest in 15 years, the National Statistical Coordination Board reported on Monday.

The growth exceeded government forecasts of 4.9 percent to 5.8 percent.

The country’s gross domestic pro­duct (GDP) in 2004 was 1.4 percent higher than the figure in 2003.

For the fourth quarter in 2004, the GDP grew 5.4 percent from 5 percent in the same period in 2003, but the fourth-quarter figure was lower by 0.9 percent from the 6.3 percent in the third quarter.

In 1989 the country’s econo­my grew by 6.2 percent and 6.6 percent in 1988, partly because of higher consumption spending in the first half related to the May national elections.

A statement by the board secretary-general, Ro­mulo Virola, said the services sector was the best performer, growing 7.3 percent after 5.8 percent in 2003.

In Malacañang President Arroyo said she was “delighted” with the growth figures.

“This is our highest since 1996 and shows the resilience and capacity of our people to overcome crisis, work hard and keep on track to a better future,” she said.

She thanked Congress for “putting our fiscal house in order” and the country’s farmers who managed to maintain high productivity despite the floods and typhoons late last year, which destroyed large areas in Northern Luzon.

The President said industry and services are picking up owing to higher farm incomes and that overseas remittances are adding fuel to the country’s “growth engine.”

Virola said the growth of the economy was bolstered by the strong performances of all three major sectors such as agriculture, fishery and forestry, which grew 4.9 percent, up from 3.8 percent in 2003, while industrial growth rose to 5.3 percent from 3.8 percent.

“Services, which accounted for about 47 percent of total GDP, contributed the most to the growth with 3.37 percentage points,” Virola said.

Industry accounted for about 33 percent of GDP and contributed 1.77 percentage points to the total growth rate. Manufacturing and construction led the strong performance of the industry.

“All of its subsectors posted accelerated growths in 2004. Top contributors to growth were trade, transportation, communications and storage, and private services,” the statement said.

Agriculture, fishery and forestry, which accounted for about 20 percent of total GDP, contributed 0.96 percentage point to total GDP growth.

“With the moderate growth of 4.9 percent in net-factor income from abroad, coming mostly from an increase in compensation income of our overseas Filipino workers, the gross national product [GNP] grew by a similar 6.1 percent, from 5.6 percent in the previous year,” Virola said.

Invigorated consumer spending

Virola explained that reinvi­gorated consumer spending, partly boosted by the election-related activities in the first semester of the year, propped up the growth of personal consumption expenditure to 5.8 percent in 2004 from 5.3 percent in 2003.

“Improved farm production and income, hiked remittances of the country’s OFWs and the sustained increase in the use of mobile-phone services also contributed to the robust growth of [personal consumption expenditure] during the year,” he added.

In a telephone interview Benjamin Diokno, former budget secretary and an economist from the University of the Philippines, attributed the increase in GDP to higher consumer spending owing to the May 2004 election.

Socioeconomic Planning Secretary Romulo L. Neri, on the other hand, believes government policy and program interventions contributed to the growth.

Neri noted that agriculture, which rose 4.9 percent, has been favored by normal rainfall conditions except during the typhoons in the last two months, which hit palay, corn and vegetable production.

Neri said the increase in consumer spending has been strong because of the growth in rural incomes as both real output and terms of trade improved. “Remittances have also continued to bolster spending. As of the first 11 months of the year, remittances grew 11 percent and reached $7.7 billion in 2004, contributing about a tenth of domestic economic production.”

Growth quite good, says MBC

Guillermo Luz, executive director of the Makati Business Club, said that the growth rate was quite good, considering that “2004 was perceived to be a bit of a difficult year.”

“We had so many events,” which could have hurt the economy such as a series of destructive typhoons and uncertainty after President Arroyo’s victory in the May elections, which the opposition had charged was due to cheating.

Luz said the growth in agriculture had been “the big surprise” of the year, and that this would greatly benefit the 30 percent of the work force that depends on that sector.

Luz said, however, that growth was not likely to be as high in 2005, remarking that “the expectation is slightly more tempered for 2005 than for 2004.”

“There is an expectation that inflation and interest rates will be higher due to the high price of imported fuel and the continuing budget deficits of the government which will force it to borrow more,” Luz explained. The sentiment “is still bullish but not as bullish as last year,” he said.

Is the growth sustainable?

Diokno sees the domestic economy growing by 4.5 percent owing to the return of El Niño, noting that the agriculture sector would experience flat or negative growth coupled with high taxes.

Neri, however, cited governments programs that would sustain economic growth for this year.

One of the drivers of economic growth this year, he said, is the higher spending in infrastructure investment.

He cited major projects that would start in 2005 such as the Subic-Clark-Tarlac Toll Road, P27 billion; South Luzon Extension, P10 billion; Northrail, $503 million; and the Subic Port, P5 billion.

He added that the Department of Energy is also speeding up the privatization of the National Power Corp. and Transco in 2005 from the initial target date of 2006. The Wholesale and Electricity Spot Market, which will create competition in the bulk purchase of electricity, is also planned to start in October 2005.

Neri also noted that the government’s fiscal position, although still weak, is improving.

“The 2004 government fiscal deficit ended at P186.1 billion, or at 3.8 percent, of GDP lower than the target of 4.2 percent. In 2005 the government is targeting a further reduction in the government’s fiscal deficit to P180 billion, or 3.6 percent, of GDP,” he explained.

Neri stressed that the government is hell bent on dealing with the problem of corruption. “To control smuggling and technical evasion, the Bureau of Customs will install x-ray machines in the country’s five major ports—Manila, Cebu, Subic, Batangas and the Manila International Container Terminal. The Bureau of Internal Revenue is also strengthening its computer-assisted audit programs to reduce tax evasion on VAT and corporate income.”
--With AFP

We really have the edge being Filipinos and because of the richness of our beloved motherland.

We must have to vanquish the negative factors dampening our growth nonetheless.

Rid our society of corruption and let's work together in plotting the right course for our nation.

:patrioticpinoy:

Hey Flipzi, does it mean that with this record GDP we can now finally implement the AFP Modernization Program realistically?

Not yet at this time.

As i see it, if the country can sustain a 5% growth rate GDP in three consecutive years...

... and there'll be no budgetary deficit ...

... the modernization program can run "smoothly".

Nonetheless, even without this condition, as long as there'll be no budget deficit, an annual P20 billion worth of modernization fund can be realized.

If all the tax measures will take effect soon enough, we can even expect a delivery of defense items within the first half or the third quarter of this year.

That's only based on how i am looking at it and not from a solid basis.

Well,.. hopefully the lawmakers will support such effort.

Some more good news Folks!

http://news.inq7.net/nation/index.php?index=1&story_id=26159

Peso breaks into 54 level
US fund to keep on investing in country


Posted 11:48pm (Mla time) Feb 01, 2005
By Doris Dumlao, Michelle Remo
Inquirer News Service



Editor's Note: Published on page A1 of the Feb. 2, 2005 issue of the Philippine Daily Inquirer


THE PESO yesterday broke into the 54 level against the US dollar for the first time since October 2003 on a string of favorable news such as the 6.1-percent economic growth last year and the country's fresh chance to stay on the list of investment sites of the biggest US pension fund.

The peso was the sole gainer in Asia as expectations the G7 will once again issue a dull, familiar message calling for global currency flexibility weighed on regional currencies.

The peso surged to a 15-month high of 54.87 before closing at 55 against the greenback.

It opened at 55.03 and hit an intra-day low of 55.04 before breaching the 55 barrier.

"When the 55:$1 level was breached, it triggered further selling of dollars on expectation that it will appreciate some more," said Jonathan Ravelas, chief market strategist at Banco de Oro Universal Bank.

The $454.5-million volume at the Philippine Dealing System yesterday was one of the highest seen in the aftermath of the 1997 Asian currency turmoil.

Upon closing at 55 to the dollar, the local currency gained 9 centavos despite some technical correction.

"The uptrend is still due to equity flows. The sentiment seems to be improving due to the recent tax measures being passed, the favorable economic data, gross international reserves and OFW (overseas Filipino workers) inflows," said Rovic de Guzman, chief foreign exchange dealer at Union Bank of the Philippines.

"If you've noticed, most of the stories coming out over the last two weeks have been generally positive," he said.

CalPERS staying

Ravelas said the peso's rally was buoyed by the higher gross domestic product growth and the country's passing grade given by the consultant of California Public Employees' Retirement System (CalPERS).

CalPERS has an estimated $85 million worth of portfolio investment in the Philippines. It is the third-largest pension fund in the world, and has $172 billion worth of assets, part of which is invested in emerging markets.

CalPERS decided to stay after its consultant kept the country yesterday on the list of permissible investment sites.

Wilshire Consulting said the Philippines got passing marks in the seven basic criteria of a permissible investment site-market liquidity, political stability, transparency, productive labor practice, capital market openness, settlement proficiency and transaction cost.

Beryl Ang, a member of the government's technical staff working on convincing CalPERS to keep its investments in the country, said officials of Wilshire would meet with CalPERS on Feb. 14, when the actual score of the Philippines would be presented.

She said being on the list meant that the country got a score of at least 2 points.

"This success can be attributed to many factors foremost of which is the resolve of the administration of President Macapagal-Arroyo to institute far-ranging reforms toward strengthening the country's economic and political foundations," Philippine Ambassador to the United States Albert del Rosario said in a statement.

A Philippine delegation led by Del Rosario earlier talked with officials of CalPERS and Wilshire to convince them that the country still had a good investment climate despite a negative perception brought about by its ailing fiscal sector.

Int'l accounting standards

One of the factors that boosted the country's score was the adoption of international accounting standards, which improved its score in transparency, Ang said.

Del Rosario said an effective inter-agency coordination was forged to address the concerns of Wilshire.

"Strong efforts were made by the Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Board of Accountancy and by the Professional Regulation Commission to adopt, before Dec. 31 the International Accounting Standards to increase the Philippine score in one of the factors used for the rating which is transparency," he said.

He said Labor Secretary Patricia Sto. Tomas led a delegation to Amherst, Massachusetts, "to engage third-party source Verite on still another factor which is Productive Labor Practices."

Credit downgrade

"We also led a team to meet with Standard & Poor's to improve the Philippine score in market liquidity and volatility," Del Rosario said.

Talks of a possible exclusion of the Philippines from the list of permissible investment sites arose after the country's credit rating was downgraded.

International ratings firm Standard & Poor's last month downgraded by a notch the country's foreign currency debt rating to BB- from BB, citing the country's lingering fiscal problem.

Fitch Ratings, for its part, downgraded its outlook for the Philippines from stable to negative last month, citing reasons related to the country's fiscal standing. Moody's Investors Service has yet to give its verdict on the Philippines next month, although there are fears it might follow the lead of S&P.

Investments in agro, food

Raul Hernandez, vice president of the Philippine Chamber of Commerce and Industry, said CalPERS expressed interest in increasing its investments in the Philippines by pouring in money into local government projects involving agriculture and food processing.

Hernandez went to the United States as a member of a separate delegation that asked the pension fund to continue investing in the Philippines.

He went with Bulacan Gov. Josefina Mendoza-de la Cruz, and together with the rest of the delegation, they urged CalPERS to invest in projects that would boost economic activities in towns and provinces.

"Our image now will be in a better light because CalPERS is a big organization," Hernandez said. With reports from Inquirer wires

I obviously spoke too soon, but hope it's just a temporary setback.

http://www.philstar.com/philstar/News200502090701.htm

Peso tumbles back to 55 to $1
By Des Ferriols
The Philippine Star 02/09/2005

The peso plunged back to the 55-to- the dollar level yesterday, weakening by 46 centavos in a single trading day, as exporters started buying up dollars while profit-takers took advantage of the local unit’s steady appreciation in the last few weeks.

Malacañang, however, remained upbeat that the peso will recover and continue to strengthen against the dollar.

Presidential Spokesman Ignacio Bunye said "the strengthening of the peso marks the return of confidence that is fully deserved by our diligent and hardworking people."

At the Philippine Dealing System (PDS), the peso opened weak at 54.68 before hitting a high of 54.650 and a low of 55.030 to the dollar. It hovered around this level throughout the session, closing the trading day 46 centavos lower at 55.030 compared with Monday’s close of 54.570 to the dollar.

Traders said the depreciation was not unexpected with the market ripe for profit-taking as residents converted some of their holdings into dollars.

Volume was heavy at $476 million with the bulk coming in during the morning session. Mid-session volume amounted to $357 million and the afternoon trade volume amounted to $199 million.

The Bangko Sentral ng Pilipinas (BSP) said the strong dollar inflows from portfolio investors will boost the peso again, saying that investor interest was "not a spent force yet."

Inflows from investors has been fueling the appreciation of the peso as portfolio investments in the last three weeks overtook last year’s total net portfolio investments .

BSP Deputy Governor Amando Tetangco said the peso merely tracked regional currencies yesterday, combined with actual demand for dollars and even holiday sentiments.

"The Chinese New Year may cause some illiquidity because some markets are closed so the dollar buying will happen in the few markets in the region that are open and trading," Tetangco said.

The BSP earlier said it was only a matter of time before the peso rises above the 54 level to as high as 52-to- the dollar level if government is able to sustain its ongoing reforms and actually manages to lay down the foundations to reverse its budget crisis.

The BSP’s official projected exchange rate is 55 to 57, but BSP Governor Rafael Buenaventura told reporters over the weekend that the exchange rate could strengthen to as high as $52 to the dollar by yearend.

"If we are able to do everything we said we will do, why not?" Buenaventura said. "We have to lay down these fiscal, financial and capital market reforms."

Buenaventura said it was critical for the government to proceed aggressively with the privatization of its power generation companies as well as to persuade the Energy Regulatory Commission to raise power rates by another 98 centavos in order to improve the balance sheet of the National Power Corp.

"Being able to do all these things will create the ideal condition for more investment inflows, better access to better credit terms when the government borrows and the liberation of a bigger portion of the budget for development spending," he pointed out.

Based on the historical relationship between the Philippine peso and the Thai baht, Buenaventura said the peso should be at around 52 to $1 considering that the Thai baht was already at 40 to the dollar.

"At that exchange rate, we’d still be competitive," Buenaventura said. "Imagine the difference it would make if we didn’t need so much money to service our debts and if we had a capital market deep enough to supply the funding requirements of the corporate sector."

According to Buenaventura, none of the tasks laid down by the Arroyo administration was impossible or even improbable. "The most irritating part about this whole thing is precisely the fact that all these things are doable," he said.

Glad we're getting back on track and the future seems to be getting brighter for us.

http://www.philstar.com/philstar/NEWS_FLASH0223200568_17.htm

Stocks make a comeback as peso recovers
02/23 1:10:29 PM

The Philippine Stock market bounced back Wednesday due to bargain-hunting as the index closed higher, up by 50.51 points or 2.53 percent to 2,042.78.

The All-Shares market also registered in the green, up by 10.59 points to 1,207.92. Likewise all the sectors moved upward with mining the biggest gainer with 149.67 points.

Trade volume was pegged at 2.61 billion worth 1.36 billion pesos. Gainers whipped losers at 88 to 17 with 32 issues unchanged.

In the foreign exchange market, the local currency strengthened at 54.603 pesos against the US dollar as of noon time. The peso closed at 54.680 pesos yesterday.

http://www.philstar.com/philstar/News200502240701.htm

More Japanese investments, trade opportunities seen
By Marianne V. Go
The Philippine Star 02/24/2005

More Japanese investments and trade opportunities are expected to pour into the country following a recent visit from one of Japan’s biggest trade groups – the Kansai Economic Federation (Kankeiren), Trade and Industry Secretary Juan B. Santos said yesterday.

According to Santos, the Kankeiren mission proved that Japanese businessmen are very interested to do business in the Philippines and that the country is a profitable site for economic ventures.

"The recent mission is an endorsement to other foreign firms that are considering locating or expanding their business in the country," Santos said.

Aside from acknowledging the advantages of the Philippines as an investment destination, the Kankeiren delegation also stressed the importance of the forthcoming realization of the Japan-Philippines Economic Partnership Agreement (JPEPA) which would greatly increase the incentive for Japanese investments and pave the way for more bilateral trade.

The planned free trade accord would affect mainly industrial and agricultural products but would also include services as well as proposals to allow more Filipino nurses and caregivers to work in Japan to minister to its ageing population.

Santos agreed that the JPEPA would help efforts to make the Philippines the ASEAN business partner of choice for Japan.

The major elements of the JPEPA were already agreed upon in principle by President Arroyo and Japanese Prime Minister Junichiro Koizumi last Nov. 29, 2004.

Looking forward to the signing of the JPEPA, the Kankeiren companies are placing their bets and getting a head start in exploring the business environment and opportunities here in the Philippines.

The delegation met with President Arroyo in Malacañang and assured the chief executive of their continued support for the country.

Kankeiren Chairman Masayuki Matsushita said that the rising cost of doing business in China and other ASEAN countries opens an opportunity for the Philippines to capture a bigger share of foreign direct investments (FDI) "The Japanese business sentiment remains very positive in the country and it further encourages the government to align and adjust policies to sustain the country’s position as the preferred business location and platform of operations for Japanese companies and other foreign ventures," Santos said.

He pointed out that the country’s best comparative strength remains the world-class skills of Filipino workers.

In 2004, Japanese businesses had invested some P25.377-billion in the country’s manufacturing and service industries which include information technology (IT), software development, electronics, chemical products, communications equipment, automotive parts, health care programs and others.

"Japan is one of the country’s most important business partners and we will continuously support Japanese firms in their endeavors," Santos said.

The government has adopted measures to make the country more attractive to foreign investments.

These include promoting macroeconomic stability, providing better infrastructure and support facilities, and encouraging the growth of support businesses to provide locally sourced parts and supplies to investing companies, Santos said.

The Kankeiren delegation also showed interest in the country’s mining industry and recommended that the Philippines should mount an investment promotion mission to Japan.

The members of the mission are drawn from various Kansai-based businesses and organizations.

Most of these corporations already operate in the country through their local subsidiaries such as Mitsubishi Corp., Matsushita, Marubeni, Sanyo and Japan Bank for International Cooperation (JBIC).

Japan is one of the country’s top sources of foreign direct investments and the largest export market. Japan accounts for for more than 20 percent of the country’s total shipments.

In 2004, exports to Japan registered an uptrend of 38.1 percent at $7.963-billion.

At last!

The Japanese are taking a second look at our country as a business partner as China and other ASEAN countries begin to change their strategies.

:thumb: :thumb:

We must make the best out of this opportunity and solidify our relationship with the Japanese people.

:armygrin:

It's a good start..

sana the government will do much better for the filipino people. :agree:

It's a good news that the economy is bit improving although in a snail pace. It really does'nt sound necessary for the AFP to be given top priority. There are sectors that need urgent attention like the social services. We are not at war anyway, but we are facing the battle to ease poverty a little bit so that our brothers and sisters in destitute lifestyle can breath a sigh of little relief if the regime of the day cares.

You have a point there.

Nonetheless, not doing anything may put us again in the losing side.

Remember when the Chinese sneaked into the Panganiban reef to set up structures in that shoal which they later claimed as theirs?

Now how can you get that shoal back at these times?

Preventing an intruder, especially an able bully like that of China, from taking what is yours is a lot easier than taking it back from that robber. :exactly:

That's the essence of national defense, "preventing a bigger problem from materializing."

With what you've said about "facing the battle to ease poverty a little bit so that our brothers and sisters in destitute lifestyle can breath a sigh of little relief ", our COIN campaign needs to be supported so that the govt can effectively implement their poverty-alleviation programs.

We need a more reliable firepower to preempt further attacks from the rebels and strengthen our military's capability in restoring peace in the countryside.

Things like, "augmenting our Air Force firepower" by purchasing more attack choppers and bombers will definitely help our govt restore and preserve peace, ...

... which will then expedite the delivery of basic services and the development of the countryside to spur economic growth in those areas.

I think even though we arm ourselves to the teeth we cannot beat that gargantuan power like China anyway. As regards to the internal enemies it does'nt need enormous firepower or military hardware to match their weapon as it is not as sophisticated as the military and the police. Too much firepower to overcome these enemies is an overkill. It is right to upgrade warfare tools but not in such a manner that it would be prioritized and get the lion share of the budget for it.

I agree. But having the right weaponry can still give us some leverage in certain situations.

China may be that strong but it is still a thousand miles away from the Philippine shores.

We can at least delay its manuevers and prevent it from completely overpowering us, ... if and only if we have the right weaponry.

Precisely!

We have to consider though that we need to enhance the capability of our AFP so that operations will not last this long.

The longer any battle lasts the more taxpayer's money is being exhausted here. :exactly:

Plus the fact that the longer it gets, ...

.. the more lives that are sacrificed,
.. the more properties that are damaged..
.. and the longer the flow of commerce is disrupted.

You see? :dunno:

Try to compare those loses with the cost of purchasing a few choppers which could have ended the battle much earlier?

Senate OKs national budget
Each senator to get P120-M pork barrel


Posted 11:56pm (Mla time) Mar 01, 2005
By Juliet Labog-Javellana, TJ Burgonio
Inquirer News Service



Editor's Note: Published on page A1 of the Mar. 2, 2005 issue of the Philippine Daily Inquirer


A DAY after expressing her displeasure over the failure of Congress to pass the proposed national budget, President Gloria Macapagal-Arroyo got what she wanted -- a new P907.56-billion outlay for 2005.

The new budget provides for P120 million in pork barrel funds for each senator, down from P200 million, and a P40-million allocation for every member of the House of Representatives, down from P70 million.

In an unprecedented move, the Senate junked last night its own version of the budget and adopted in toto the 2005 budget proposed by the President and approved by the House of Representatives.

Senate President Franklin Drilon said Malacañang was "pleasantly surprised" by the development, which would pave the way for the immediate signing of the budget.

Asked if Malacañang had set a date for the signing, Drilon said: "No, they are still recovering from their pleasant surprise."

He said the Senate secretary general had communicated the adoption of the budget bill to the House.

"Now that we have adopted the House version, we don't need a bicameral conference, and the President can now sign the budget," Senator Manuel Villar, chair of the Senate finance committee, said.

..........

No pork for Lacson, Drilon, Lim

The Senate went into caucus early last night after Senator Juan Ponce Enrile complained that nothing was happening to important bills.

The senators made the decision during the caucus and later voted unanimously to adopt the House version.

Senator Panfilo Lacson asked the Senate to tell the President not to release the P240-million pork barrel allocated to him, Drilon and Senator Alfredo Lim who all had decided to forego the pork barrel.

Drilon said this should reduce the yearend budget deficit by P360 million. The amount represents the total unreleased pork barrel of the three senators.

He said Senator Juan Flavier also reiterated during the caucus his desire not to avail himself of half of his pork barrel.


FULL DETAIL:

http://news.inq7.net/nation/index.php?index=1&story_id=29137

=====================================================


This will help the country shield itself from the effects of the external forces dampening our economy.

The pork barrel fund has also been reduced to about half of the original proposal, which means that the lawmakers are beginning to exercise caution on the utilization of these hard-earned funds.

Congressmen grumble over ‘pork’
By Jess Diaz
The Philippine Star 03/03/2005

Congressmen are complaining about the surprise Senate decision to adopt the House version of the 2005 budget, which prevented them from adding at least P7 billion more to their pork barrel.

Majority Leader Prospero Nograles told reporters yesterday he had been swamped with inquiries from his colleagues about the House leadership’s commitment to restore the P30-million Malacañang-sponsored reduction in their pork barrel allocations.

"They are grumbling, but I told them we can’t do anything about the Senate decision. We have to live with it and the reduced pork barrel allocations," he said.

The House version of the 2005 budget is almost the same as the outlay proposed by President Arroyo to Congress in August last year. The Palace had cut pork barrel funds by 40 percent to P120 million per senator and P40 million per House member.

But congressmen had planned to restore the P30-million reduction during the bicameral conference on the budget that was supposed to have begun last night had the Senate not suddenly junked its own version of the bill and adopted the House version instead last Tuesday.

With the Senate decision, no bicameral conference is needed and the pork barrel will be kept to its reduced level.

Cavite Rep. Gilbert Remulla, who had jumped from the opposition to the majority bloc, confirmed that his colleagues were complaining.

"We are grumbling, but what can we do? I think this problem is a big headache for the leadership," he said.

Other House members denounced senators for allegedly making themselves appear good at the expense of congressmen.

According to Camarines Sur Rep. Rolando Andaya Jr., appropriations committee chairman, "we in the House resent the attempt of some opposition senators to look good before the public at our expense."

"They are gloating that this is a sign of statesmanship. If it were, then they should have done it earlier and spared us the zarzuela (charade) of going through the budget with angst only to say yes to the House version later," he said.

When the House approved the budget in December, Andaya had promised his colleagues that he would work for the return of the P30-million cut in their pork barrel in the conference committee.

A congressman advising Mrs. Arroyo on economic matters, who asked not to be named, said senators had planned to insert more "pork" in the budget but retreated when caught and simply adopted the House version to save face.

"The House is open about the need for pork and helps finds the funds for it," he noted.

He said people should ask the Senate where it realigned the P1.3 billion it cut from intelligence funds and other unnecessary expense items before it adopted the House version of the budget.

Muntinlupa Rep. Rufino Biazon said senators had insulted congressmen by claiming that they blunted the latter’s efforts to restore the pork barrel.

"Even if congressmen try to insert pork during the bicam (conference), if they (senators) do not agree to it, it will not happen," he said.

Early last night, in the course of the House session, Makati Rep. Teodoro Locsin Jr. took the floor to criticize senators for throwing "dirt" at their colleagues in the larger chamber.

"Just because they were caught (padding their pork barrel) and caught by one of their members, the only way they could divert attention from their own shame is to slap us with dirt that should properly cling to their faces," an angry Locsin said.

He was referring to the opposition Sen. Panfilo Lacson, who told the Makati Business Club on Monday that senators cut P1.3 billion from the Malacañang-proposed budget and diverted it to their pork barrel.

Locsin said it is not true that congressmen were out to restore their pork barrel allocations, though he admitted that the Palace had sought the help of the House in restoring some amounts that the Senate had cut from intelligence funds.

In fact, he said the story going around is that even with the reduced allocations, "favored members" of the two chambers of Congress would get extra allocations.

"Maybe, that’s the truth. If they get it, that’s their good luck. But certainly, I will not share the shame that has been cast to this House by a Senate that was caught red-handed stealing from the pork barrel," he added.

Minority Leader Francis Escudero said he did not know what senators were trying to prove by their last-minute decision to adopt the House version.

"This matter is between the Senate majority and the House majority. Why didn’t they do it last year? So what were the Senate hearings for?" he asked.

But neophyte Rep. Antonio Alvarez of Palawan said senators should get down to business and do the same with the value-added tax bills as they did with the budget bill.

"The Senate headache over VAT will be gone in five minutes if it will just concur with the House bills on VAT. This will give them an easy way out. They can always blame us congressmen," he said.

Another Palawan congressman, Abraham Mitra, said agencies with intelligence funds, including the Office of the President, are the winners in the Senate decision to adopt the House and Palace version of the budget.

"Such a decision in effect restored the P1.3 billion in intelligence funds senators earlier diverted to other uses," he said.

But the biggest winner, according to Mitra, is President Arroyo.

"She has a budget to her liking, one that will fund her 10-point program, and one that gives her all the resources to fight terrorists, keep the peace, and sustain progress," he said.

=====================================================


Ahhh...whatever! :whogives:

At least the pork barrel for Congressmen was slashed by 40 million for each of them while that of the Senators was by 80 million each.

Doesn't that sound like music to your ears now?

Oh, BTW, i was able to see Sen. Drilon tell his side of the story on ANC's Online with Gene Orejana last night.

I could sense the effect of how we tried to call them names like "pigs", "kapalmuks" and "magnanakaw" because of the CDF issue.

You know what, something sort of pinched my ear when i realized how he looks now and when he said he hadnt touched his CDF allotment.

Sen. Drilon ate his pride and allowed the rest of the lawmakers to throw insults into the Senate just to pass this budget.

He looked haggard and 6 years older than his age now. :armycry:

He looks flabby still though, not an inch slimmer. :armyroleyes:

RP investment climate 'deteriorating', says US report
03/04 5:26:15 PM

http://www.philstar.com/philstar/NEWS_FLAS...42005209_13.htm

A United States report revealed Friday that the Philippines' investment climate has 'deteriorated' as compared to its neighbors in Southeast Asia.

In a report taken from the website of the US embassy to the Philippines, it said, "The comparative advantages the Philippines once enjoyed vis--vis its neighbors in attracting foreign investment have deteriorated."

As one example, it said, "English language proficiency, while improving in other Southeast Asian nations, is declining in the Philippines."

"The increasing US commercial familiarity with other Southeast Asian economies- most notably China and Vietnam - has eliminated some of the unique commercial ties that the Philippines once enjoyed with the United States," it said.

It also noted that some of the Philippines' problems like: High levels of corruption; failure to reform the judicial system; ineffective protection of intellectual property rights; the slow pace of energy sector reform, price liberalization, and privatization; delays in passing key economic and fiscal reform legislation; and political uncertainties surrounding the May 2004 election "combined to constrain the government's ability to attract foreign direct investments over the past year."

Furthermore, the report cited a self-proclaimed fiscal crisis in August 2004 also gave rise to concerns over the country's economic stability.
Due to persistent fiscal constraints, it said, the Philippine government has consistently failed to invest in the infrastructure most important to both domestic and foreign investors, such as roads, communications, healthcare and education.

"The situation has also led to government inability to deal with congestion and pollution in the country's major cities, most notably Manila," it noted.

Trade infrastructure urgently needs attention, especially Bureau of Customs operations and the nation's maritime highway system, including roll-on-roll-off port facilities outside of Manila, it likewise stated.

=====================================================


Thanks for telling us, Uncle Sam! :armyroleyes:

I advise that you get a new pool of much-better analysts though.

Our economy has taken off but the main reason why the Philippine economy cant reach that altitude is that;

1) Oil producers are manipulating oil prices, which has greatly dragged the chances of Filipinos to live a more manageable lifestyle. Oil prices are rising every week.... Hey wait,....Ok, make that every other day!!!!!!! :bs:

Had these greedy oil players not sabotaged the plan to expedite the utilization of fuels not derived from fossil oils, THIRD WORLD ECONOMIES LIKE THE PHILIPPINES, COULD HAVE PROSPERED A LOT LONG AGO.

2) Terrorism has preempted a bit the rising of the peso and the growth of the economy.

WHAT? We already know that. That's not a big deal. We are doing something about it!

My goodness! Cant you find other reasons?

Nonetheless, it's good that you emphasized that one. Let's hope our govt will take note of that. :armyroleyes:

Yeah right! SO BILL GATES CAN GET MORE SALES? :bs: Come on. He's the richest man on earth already for God sake! Give the poor countries a chance.

If I am PGMA, i would put a moratorium on the arrest of vendors of pirated VCD and DVD.

PGMA should consider the plight of the poor vendors here and not the already rich Americans.

PGMA should instead negotiate with record producers first to come up with a better arrangement with retailers of dealers so that they can sell their products better...AND HELP BRING DOWN THE PRICE OF VCD OR DVD discs.

DVD sell around P1000 here. That amount can feed a family of 3 for 5 days!

And what? Buy a 1000 worth of crap that you can only enjoy once anyway?

That's BULLSHIT! :bs:

THE BEST WAY TO SELL AUTHENTIC DVD AND VCD DISCS?

SIMPLE. MAKE THE PRICE REASONABLE. :exactly:

Hilarious! :armyLol:

Cant they find a much clearer and believable idea? :armyroleyes:

In fairness, they got one thing clear though. That's the fight againts corruption.

Real solution?

- Set us free from the enslavement of oil players. Get our inventors to work with Japanese engineers to develop engines that will run using water.

"Hydrogen battery cell" concept was designed to derail massive utilization of water as fuel. The efficiency factor is being used to justify dumping what can be done today to allow current engine design to use water or hydrogen instead.

Now look. Oil prices are rising every other day.

That's because they know that oil deposits are drying up AND THEY WANT TO EARN AS MANY PROFIT AS THIS SCENARIO CAN GIVE THEM BEFORE THEIR WELLS RUN DRY. THEY DONT CARE IF THIRD WORLD COUNTRIES WILL HAVE NOTHING TO BUY FOR FOOD ANYMORE.

- IMPROVE TAX COLLECTION. Rid the BIR and Customs of corruption.

- The lawmakers should draft more bills that will spur economic growth and that will help the govt get more taxes.

- End the wars in Mindanao and with that of the CPP.

- Support the deployment of OFWs.

- Support the export drive. Help manufacturers succeed in their business and make investors worry-free and hassle-free on all concerns.

- Harness the local market.

- Improve infrastructure to support the economy and enable other areas to contribute to the economy.

- LET'S NOT MAKE IT APPEAR AS IF WE CAN BE AFFECTED BY, OR THAT WE LEND OUR EARS TO EXTERNAL CREDIT RATINGS ENTITIES, which are manipulating the numbers just to favor other countries and try to dampen our own growth.

:patrioticpinoy:

Peso rallies to beyond 54.50/dollar on IPO inflows
Posted: 10:54 AM | Mar. 09, 2005

Erik de la Cruz
XFN-Asia

THE PESO gained more ground against the US dollar on Wednesday, supported by foreign funds as the initial public offering (IPO) of conglomerate SM Investments Corp. starts this week, following that of Manila Water Co. Inc., dealers said.

They said the peso's strength was also boosted by the dollar's weakness against major currencies ahead of the revised data on the US balance of trade, due out on Friday -- which are expected to show the US trade gap still near record levels.

At 10:13 a.m., the peso had traded at a high of 54.44, off a low of 54.57, on volume of 222.84 million dollars. It closed at 54.635 on Tuesday.

This is the first time since July 2003 that the peso had traded at less than 54.50.

"We've been seeing huge dollar inflows because of the IPOs, and these are giving the peso a big boost," a dealer at a local commercial bank said.

"If the peso breaches 54.40, we cannot rule out 53 levels."

The IPOs of Manila Water and SM Investments are expected to raise up to more than 40 billion pesos, and stock market analysts are saying that the Philippines' improving economic and fiscal performance is helping to generate foreign interest in these offerings.

Originally posted at 10:41 AM

http://money.inq7.net/breakingnews/view_br...3&dd=09&file=10

We can always easily notice when a new National Budget is updated if not upgraded annually but we can never notice at all any changes in the peoples livelihood except the juicy allowances of the politicians and high government officials.

The point there is that the obvious signs of change in our economy will reflect what the people will have later on.

Though, we have to keep our eyes open on these politicians who are using their privelege and powers to siphon off taxpayer's money.

Tobacco tycoon gains control of Philippine National Bank
08/18 5:42:17 PM

MANILA (AFP) - Tobacco tycoon Lucio Tan has won the bidding for a 67 percent share of the Philippine National Bank (PNB), the country's fifth-largest lender, the Finance Department said on Thursday.

The Lucio Tan group stated that it would exercise its right to match the bid of 43.77 pesos (78.3 cents) per share offered by rival Union Bank in the bidding last week for 67 percent of PNB.

This would bring the Lucio Tan group's share in PNB to more than 77 percent, the finance department said in a statement.

The government and the Lucio Tan group each previously owned 45 percent of PNB which is a major depository of government funds.

Under an agreement, both the Lucio Tan group and the government last week each auctioned off 33.5 percent or a total of 67 percent of PNB.

The government will generate 8.14 billion pesos in revenues through the auction, the department said.

PNB will remain a government depository bank until 2007.

The Lucio Tan group has interests in tobacco, brewing, banking and airlines.

http://www.philstar.com/philstar/NEWS_FLAS...20052901_10.htm

damn...he basically owned the Philippines assets..the guy is also a king maker or a puppet master..is he?

Government paying P931 million a day in interest

More than a third of the proposed P1.05-trillion 2006 national budget has been earmarked for foreign debt interest payments amounting to at least P931 million daily, Sen. Manny Villar, chairman of the Senate Committee on Finance, said yesterday.

"Debt servicing continues to corner the bulk of the country’s yearly budget and revenues to the detriment of allotment for social services for the people. The health, education and social welfare sectors have to take a backseat to interest payments. This vicious cycle has got to stop once and for all," he said.

http://www.mb.com.ph/MAIN2005082642812.html

Okay Guys, there goes your wish list. :drunk:

China President expects RP to honor railway contract


By BERNIE CAHILES-MAGKILAT


Chinese President Hu Jintao, who witnessed the signing between the Philippines and China on the North Luzon Railway project (NorthRail), expects the Philippines to honor the contract of the Chinese-funded mass railway project.

Trade and Industry Secretary Peter B. Favila said he met Hu during the bilateral talks with President Arroyo at the recent gathering of world leaders for the United Nations in New York.

During the bilateral talk, Favila said Hu expressed his concern to Arroyo about the integrity of contracts.

"They’re worried about the integrity of contracts they entered into with the Philippines and for which questions are raised," Favila said.

Favila said that the Chinese president did not mention about the investigations regarding NorthRail project but said he would like to see an "early construction" of the project noting the mass railway project has already been delayed.

President Arroyo then explained to Hu that the one causing the delay is the problem of relocating the squatters along the railway tracks.

NorthRail president Jose Cortez Jr., however, said the government has already allocated P1 billion for the relocation of squatters and the project is expected to start in November this year.

Of the $503.4-million project cost for the first phase of NorthRail, the Chinese are extending $421 million with a concessional three percent interest rate payable in 20 years.

The first phase of NorthRail covers Monumento to Calumpit, Malolos stretching a total of 40.2 kilometers.

Despite the controversies hounding the project, Cortez said the Chinese have remained committed to fund the project and are even making available $1 billion for the second phase of the project that will connect the first phase ending Malolos to Clark.

Of the amount, the Chinese are willing to extend $500 million for the construction of the second phase of the railway and another $500 million in financing could be tapped for the relocation of squatters along the second phase.

Phase 2 of the project is about 45 kilometers covering from the end of Calumpit in Malolos, Apalit, Minalin, Sto. Tomas, San Fernando, Angeles and Clark. This is longer than the 40.2 kilometer railway under the Phase I project.

"The financing for the NorthRail project is part of the $10 billion fund for investments abroad by the Chinese government," Cortez said.

Budget Secretary Romulo Neri, who was the chief of the National Economic and Development Authority (NEDA) when the government to government NorthRail contract was signed, said nothing has changed with the commitment of the Chinese government.

Neri said he had a talk with Chinese Ambassador Wu Hongbo, who said they are bullish with the Philippines. The Chinese are looking at a container seaport project in Infanta and a shipyard in Dingalan. The Philippines has also proposed to the Chinese tollways, reclamation and airport projects.

Part of its initial investments in the country is the $1 billion capital infusion for the Nonoc nickel plant in Surigao.

"This is a short window for the Philippines. The western and U.S. kept on condemning us, the Japanese are finicky but the Chinese are tolerant. They don’t lecture to us like the U.S. does and still keep their faith in us by continued investing here," Neri said.

"We don’t smell nice to foreign investors. So let’s count on this goodwill from the Chinese," he said.

Cortez said that Chinese Eximbank has waived a penalty on the loans despite the already one year delay in the implementation. Cortez, however, said they are jumpstarting the project in November this year.

Denying there is any irregularity in the project, Neri said the Chinese loan is the best concession the government ever had.

"I feel the contract is above board, there is nothing wrong with it and I stand by it," former Finance chief Juanita Amatong, now MB member. Amatong as then Finance Secretary signed the loan agreement. (BCM)

http://www.mb.com.ph/BSNS2005100746110.html

=====================================================


And you know what?

The opposition lawmakers including Sen. Franklin Drilon are blocking this project?

Hurling baseless accusations at this project. :bs:

Di na nila inisip and kabutihan magagawa nito sa bansa..

... SAMANTALANAG PURO NAMAN SILA LAHAT INUTIL SA PAGPAPAUNLAD NG BANSA.

Buti nga at nagmamagandang loob pa China sa atin tapos sisirain pa natin ito. :bs:

Napakalaki ng benefit ng proyekto na ito sa bansa lalo na sa makikinabang sa proyekto na ito.

Ilan sa mga ito ay:

1) Yung mga workers ng project, siguradong malaking bagay yan.
2) Yung commuters na mula sa central luzon ay madadalian sa biyahe.
3) Added tax as bayan mula sa operation ng train.
4) Added job at business opportunities pag bukas ng train service.
5) Mga squatters na maililikas sa ibang lugar na magluluwag at magpapaganda sa lugar na pinagalisan. Mas maayos mas magandang pang-akit sa investors, diba?
6) Catalyst ng developement sa lahat lugar kung saan may train stations.

Ang bobo talaga ng lawmakers natin. Di mabalanse ang mga kompromiso at mabuting bunga!

Sen Drilon lambasted the Chinese funded north rail project on the basis of the findings of the UP law center, when everybody knows that the UP law center is anti Gloria in fact it even volunteer to prosecute GMA if she is impeached. The UP law center's investigation is bias and unfair

read the column of jarius bondoc

Please post that column. We can use that to analyze why UP is acting like this.

BTW, we must not forget that some (or what?) reds come from UP.

http://www.philstar.com/philstar/NEWS200510072603.htm


UP twits wrong firm in Northrail
GOTCHA By Jarius Bondoc
The Philippine Star 10/07/2005

Mistaken identity works as comedy plot. In governance or diplomacy mistaken identity can lead to tragedy. That is what happened to the opinion of the U.P. Law Center on the North Luzon Railway to be laid by the China National Machinery and Equipment Corp. (Group), or CNMEG.

Senate boss Frank Drilon had commissioned the study after Congress trashed Gloria Arroyo’s impeachment, in which Northrail was a complaint. Among U.P. Law’s conclusions was that CNMEG, personally picked by two Chinese presidents and two prime ministers for the work, is a mere import-export firm with no ability or experience in railways in China or elsewhere.

The item slighted officials of CNMEG, which up to 1997 used to be China’s Ministry of Machineries with 70 subsidiaries, and whose chairman holds cabinet rank. Having built through some of its 50-year-old ancillaries most of China’s 70,000 km of rail, CNMEG is the country’s 6th largest state firm. Engineering News Report lists it 37th of 225 top constructors worldwide, with business turnover of $4.7 billion and income of $3.6 billion in 2004, in such lines as power generation and transmission, port construction, mining, metalwork, telecommunications, petroleum and chemicals, environment, agriculture engineering, construction materials, and spacecraft parts. In railways alone, among its recent works were: rehabilitation of 78 km in Angola, subway electricity and ventilation in Iran, 90 locomotives and 74 trains to Turkmenistan, the Karachi light railway, and 200 km in Jamaica. In China: Qing Shen tracks of 400 km and 300 km/hr trains, Shuo Huang rail (600 km), Da Qin rail (500 km), Nan Kun rail (800 km), Qing Zang rail (900 km), Jing Bing light rail (45 km), Chongqing light rail (21 km), Guangzhou subway Line 2 (31 km) and Line 4 (45 km), and Nanjing subway (22 km). It is about to lay tracks from Beijing to Tibet, all of 1,000 km and up to 4,000 meters above sea level.

How could U.P. Law have missed all this?

The answer is in its report. U.P. Law had searched the Internet for "CNMEC", which it thought to be the acronym of "China National Machinery and Equipment Corp. (Group)," What appeared on its computer screen was "China National Machinery and Equipment Import-Export Corp. (CNMEC)". From there, U.P. Law deduced that "CNMEG", the Group, was a fraud disguising as "CNMEC". What it failed to state – advertently? Northrail officials ask – is that CNMEC, truly engaged in import-export, is but one of CNMEG’s 70 subsidiaries.

It was clearly a case of mistaken identity. Yet from its "discovery", U.P. Law accused Northrail of deliberate lying, supposedly by deleting from the construction contract the "Import-Export" portion of CNMEC’s full name. In turn, Drilon goaded the Senate to investigate as a committee of the whole, only the tenth time it will be so constituted since 1987 and risking a diplomatic tragedy with China where he often vacations.

Ren Hongbin, CNMEG chair and Chinese cabinet member, refuses to speak ill of U.P. Law’s clumsy research and Drilon’s consequent fooling. Instead he invites inquisitive senators for a look-see of CNMEG’s facilities. He can be reached at the CNMEG compound on #5 Nanwuxiang, Sanlihe, West District, Beijing 100045. Tel.: 8610-68595816. Fax: 8610-68595629. E-mail: renhongbin@vip.163.com. For more info: www.cnmeg.com.

At any rate, after U.P. Law mistook CNMEC for CNMEG, Drilon rushed to declare its contract anomalous, implying kickbacks. Here again, Northrail officials are surprised. China Export-Import Bank is financing the project from a $400-million loan, 20 years to pay, with five years’ grace period on the principal, at 3 percent interest, and with RP putting up only 5-percent equity ($21 million). This is much softer than preferential loans China Exim grants to other poor nations: 15-year repayment, three years’ grace, 4-1/2 percent interest, and 15 percent counterpart. In Northrail, China Exim releases money directly to CNMEG based on progress billings. This modern practice by international lenders prevents not only work delays from fund squeezes, but also the possibility of kickbacks. The only money that changes hands between China and RP is from the latter to the former, in the form of interest payments, as in the first such remittance for China Exim’s first release early this year of $100.02 million. No kickbacks there.

This again can be easily checked with Liang Xiang, China Exim assistant president directly in charge of the Northrail loan. Her address: #77 Beiheyan St., Dongcheng District, Beijing 100009. Tel.: 8610-64099016 or 64099127. Fax: 8610-64005186.

Another U.P. Law opinion is that CNMEG’s contract is illegal since it has no license to operate in RP. Too, that there was no public bidding, in violation of the Government Procurement Reform Act. From there, Drilon proceeds to compare Northrail with his pet Iloilo airport project funded by Japan.

Northrail retorts that U.P. Law must be unfamiliar with foreign contracting. For, all international contractors now awarded or doing work in RP have no local licenses. (The Taisei-Shimizu-Kajima consortium of Japan had no RP license when it began work at Drilon’s airport; in fact, Kajima had no license even in Japan, having been suspended for bribing a construction minister.)

Too, there couldn’t have been any public bidding for the Northrail tracks and trains, since the cabinet has drafted implementing guidelines of the Procurement Act only for local contracts. Drilon’s airport did undergo some sort of bidding, in which the Japanese lenders questionably imposed Taisei-Shimizu-Kajima on the transportation department. And that’s no comedy either. * * *
E-mail: jariusbondoc@workmail.com

IMF urges RP to hasten reforms to boost investor confidence

THE IMF has urged the Philippines to speed up economic reforms to restore the confidence of investors dismayed by the country's political troubles.

In its latest assessment of the Philippine economy, the IMF stressed the importance of Manila pressing ahead with a comprehensive reform package in the fiscal, power, and banking sectors.

These reforms will help "reduce the vulnerabilities of the Philippine economy, achieve public debt sustainability over the medium term, improve the investment and business climate for higher and sustainable growth," the IMF said in the statement posted on its website.

It said: "An accelerated pace of reforms would send a strong signal to markets and boost investor confidence."

The statement was released after the IMF executive board concluded post-program monitoring discussions with Philippine authorities last month.

The IMF also commended Manila for the "significant" progress it has made so far with much-needed economic reforms despite President Gloria Arroyo's political problems.

Arroyo has been accused of cheating in last year's presidential election. Her opponents continue to seek her ouster, although the IMF said political uncertainties in the Philippines have receded.

However, the IMF said the country's large external debt and financing requirements remain a major concern, and that the economy, despite its resilience, remains vulnerable to external shocks, especially given high global interest rates and oil prices.

The IMF underscored the importance of the expanded value-added tax (EVAT) law -- the legality of which has been questioned in court by some groups -- to reduce the fiscal deficit.

"Directors therefore expressed concern that the EVAT implementation has been further delayed due to an appeal made to the Supreme Court, and urged the authorities to consider alternative revenue-raising measures in case the EVAT law cannot be implemented in full in the end," it said.

The IMF expects the country's GDP to expand 4.7 percent this year, while full-year inflation is seen at 8.2 percent.

http://money.inq7.net/breakingnews/view_br...10&dd=13&file=7

IMF: Political uncertainty RP’s primary risk
The Philippine Star 10/14/2005

Protracted political uncertainty is the "primary risk" facing the Philippine economy, the International Monetary Fund (IMF) warned yesterday.

However, the IMF board of directors also remarked that "recent political uncertainties have receded, paving the way for improved market stability and resumed reform momentum."

It also praised the Philippine government for its efforts to control its budget deficit through fiscal reforms and improved collections.

But at the same time, the IMF noted that "the country’s external debt and financing requirements are large and, despite its resilience, the economy remains vulnerable to external shocks, especially changes in market sentiment and increases in global interest rates and oil prices."

The IMF also identified "soaring oil prices" and "adverse developments in international capital markets" as other potential threats to the country’s economic growth.

"The primary risk to the near-term outlook for the Philippine economy is that the prevailing state of uncertainty proves to be protracted and sidelines economic reforms," the IMF said in a report.

"If reforms were to stall, investment is likely to remain subdued and (gross domestic product) growth of 4.75 percent is projected for 2005 and 2006," the IMF said, referring to the opposition’s five-month campaign to oust President Arroyo on charges of cheating to win last year’s elections and other alleged anomalies.

The crisis, which broke out in June after opposition members released audiotapes on alleged election fraud, has seen Arroyo’s economic cabinet members resign and the president’s approval rating hit record lows.

The IMF also cited the Supreme Court’s continued suspension of a new expanded value-added tax (VAT) law that the government says is crucial to forestall a looming fiscal crisis.

Although Mrs. Arroyo was credited with spurring economic reforms after winning the May 2004 elections, the political crisis interrupted this, the IMF said.

The IMF called on the government to press ahead with other radical reforms in the fiscal, power and banking sectors to reduce the vulnerabilities of the economy and improve the business climate.

"An accelerated pace of reforms would send a strong signal to markets and boost investor confidence," it added. — AFP

http://www.philstar.com/philstar/NEWS200510140402.htm

Gross int'l reserves hit all-time high of 18.6 billion US dollars: BSP
10/24 5:25:28 PM

The Bangko Sentral ng Pilipinas (BSP or Central Bank of the Philippines) reported on Monday that the country’s gross international reserves (GIR) hit an all-time high of 18.6 billion US dollars, which further strengthened the peso.

In a roundtable conference with President Gloria Macapagal-Arroyo, Trade and Industry Secretary Peter Favila and Finance Secretary Margarito Teves, BSP Deputy Governor Diwa Guinigundo attributed the GIR strong surge to the credible foreign capital inflows and the hike in remittances by overseas Filipino workers (OFWs).

GIR’s components include foreign investments, gold reserves, OFWs’ remittances and other foreign exchange receipts.

Guinigundo said OFWs’ remittances for the first seven months of 2005 posted an impressive 28 percent growth, which reaffirmed the role of OFWs as one of the pillars of the peso’s potency.

"We also acknowledge the capital infused by foreign investors, both portfolio and equity investments, which added to our dollar reserves," he noted.

"We have exceeded our GIR target of US$16 billion," Guinigundo added.

The BSP official also cited the Supreme Court’s decision affirming the constitutionality of the Expanded Valued Added Tax (EVAT) law and lifting the temporary restraining order (TRO) on it which, he said, renewed the investors’ confidence in the country.

He likewise expressed his appreciation to Congress for its having crafted new legislations to improve the banking system, the capital market and the overall economic environment.

Trade Secretary Favila, for his part, said his department will continue efforts to further promote the country’s trade and investments, which have reached 145 billion pesos.

Favila informed the President that the latest foreign investor in the country is a medical transcription company which is set to open shop in Dumaguete City by January.

Overseas cash transfers reshape RP countryside
By Cecil Morella
Agence France-Presse


BILLOCA, Ilocos Norte--In this impoverished rural corner of the Philippines, traditional one-room thatch houses are giving way to modern brick homes with glass windows, tiled roofs, and giant courtyards -- the product of a housing boom fuelled by remittances from overseas workers.

As the northern Philippines marks the 100th anniversary of the first batch of its sons who went to work abroad, a fresh flood of greenbacks is swamping this sleepy village by the shores of Billoca lake, triggering furious development.
Large houses in shades of mint, ecru, cream, or old rose threaten to swallow up the paddy fields. Farmers gleefully oblige the newly rich by selling their plots for up to 12 times what they worth before the construction frenzy.

"This was only the first big house to be built. Now you see them all around the lake," says Rodolfo Ramos, whose uncle built his 150,000-dollar dream home five years ago on a one-hectare (2.47-acre) lot of rice paddy and woods.

His uncle plans to retire here soon after decades serving as steward for navy ships based in the US port of San Diego.

"He was poor once, just like us. His family lived in a one-room bamboo shack with a wood-burning stove," Ramos tells AFP. "Without the US Navy they would have stayed that way."

Various cousins and neighbors have also sought their fortune abroad, from caregivers in Canada to domestic helpers in Hong Kong and Spain; part of the army of four million Filipinos who now work abroad sending back an estimated eight to 24 billion dollars back home every year.

Even Ramos's 24-year-old eldest son has joined the exodus, one of tens of thousands of Filipino seafarers on the world's merchant fleets.

Tax rates on land south of the lake has risen four-fold over the past year because of the huge demand.

"We bought this place for 1,300 pesos (23.21 dollars) a square meter (10.764 square feet) and we considered ourselves lucky. Now land around here goes for 1,800 to 2,000 (32.14-35.71 dollars) per square meter," says Rizal Parbo, who runs a garden and landscaping business that caters to the newly wealthy neighbors.

A nephew who works at a Hawaii hotel put up the capital.

Josephine Silao's elder sister, based in southern California, had one side of a hillside carved out so she could build a sprawling bungalow close to the northeastern shore of the lake.

Twenty-six major Philippine banks have followed the gravy train by opening branches in Laoag, the capital of Ilocos Norte province, said the governor, Ferdinand Marcos Jr.

"I would venture to say that if you want to buy dollars, they would be cheapest here because of the volume of remittances," Marcos tells AFP.

"Some families have not one but two members abroad," he says. "The result is beautiful houses, plus they also start businesses, which is good."

Trapped in a dry, narrow coastal plain on the northwestern section of the main Philippine island of Luzon, the people of the Ilocos region caught the travel bug early on and blazed a trail that millions have followed.

The first workers sailed off to work in the sugar cane plantations of Hawaii in 1906 from Salomague, a forlorn port 350 kilometers (217 miles) north of Manila, says Ferdinand Dumlao, a special assistant to the Ilocos Norte governor.
"That is how we set our foot in Hawaii, and now we are a strong political force in Hawaii," Dumlao says.

He says the governor of Hawaii, Linda Lingle, many of whose constituents are the descendants of the Ilocano plantation workers, plans to visit the Ilocos region on January 7 next year to unveil a centennial marker at Salomague Point.

Ramos says his grandfather Nicomedes Galacgac was among the first Billoca residents to work the Hawaii cane fields. His younger brothers Alberto and Victorio soon followed him, and another brother Pelagio also went after World War II. The eldest and the youngest prospered and never returned, but the fun-loving Alberto had kidney surgery and returned to a life of poverty here.

"Grandpa Kides was the first. Ox-drawn carts hauled their luggage to the port. They said this road was a mere dirt path at the time," Ramos says, gesturing to the concrete highway outside.

Aside from escalating property prices, Ramos says the new wealth has also boosted agricultural output in these parts.
"Now that local folk are going abroad, capital is more readily available. Before we used oxen and our bare hands, but now tractors and other farm implements make the work less burdensome," he adds.

Copyright 2005 Agence France-Presse . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

http://www.inq7.net/globalnation/sec_new/2005/oct/24-01.htm

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This is an excellent example of how providing the opportunities to our fellows to live a better life can help spur the local economy.

Let's hope our LAWMAKERS will start gaining wisdom and help other less fortunate folks to get the chance to live a better life.

Why not start it by lessening the fees that an applicant for a foreign job has to pay?

Why not create or revive a FLY NOW PAY LATER PLAN?

Use earnings to become entrepreneurs, OFWs urged
By Veronica Uy
INQ7.net



OVERSEAS Filipino workers must save their earnings and use these savings to start their own enterprises, Senator Manuel Villar said Wednesday.

In his "Overseas Filipino Investment Bill," the richest Philippine senator said entrepreneurship or becoming overseas Filipino investors (OFIs) "would translate their hard-earned money into more economic gains for their country."

Among the provisions of the bill are fuss-free procedures and the creation of risk-free opportunities, such as the issuance of short- and long-term OFI bonds by government banks; provision of government financial institutions (GFIs) of credit facilities for OFIs; and the allocation of 10 percent of the total equity of government's existing businesses or enterprises for OFIs and their families. Other benefits and incentives include income tax exemptions.
At the same time, Villar, head of the Senate committee on finance, also expressed gratitude and appreciation to OFWs for keeping the economy afloat with their remittances.

"OFWs are really doing our country a huge favor through their dollar remittances, which continue to be the saving grace of our economy. If it were not for their precious remittances, our dollar reserves would have suffered adversely. That would really be a big blow to our economy.

"It is certainly good to know that in the next few years, remittances from migrant workers especially OFWs would
continue to increase. Now, more than ever, we need OFW remittances to prop up our economy," Villar said.

A World Bank study shows that remittances from migrant workers are expected to reach 225 billion dollars this year,
even as the Bangko Sentral forecasts that bank remittances from OFWs are likely to reach 10.3 billion dollars by the end of the year or 20 percent higher than last year's level.

Villar said this all-time increase in OFW remittances has been cited by economic managers as one of the drivers of the
strong growth in the country's gross domestic product (GDP); remittances contribute to consumer spending, which accounts for around 70 per cent of the GDP.

Saudi Arabia remains the biggest single destination of OFWs, with 28.4 percent of the total, followed by Hong Kong with 11.5 percent.

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:agree:

This will really encourage OFWs to spend their earnings wisely.

More entrepreneurs engaging in businesses will help spur the local economy much further.

This is what i have been dreaming for long. Lawmakers should instead promulgate laws that will REALLY improve the lives of the people and make them become major players in enhancing the local economy.

I hate to say this but as it seems, only Sen. Villar is the only one who is doing his job!

Yung iba mga pabigat lang kasi bobong mag-isip at walang ginawa kungdi manggulo.

MGA INUTIL TALAGA!

Korean firm eyes $1-B facility to build ships in Subic Freeport


By BERNIE CAHILES-MAGKILAT


A Korean shipbuilding company is keen on investing $1-billion shipbuilding facility in Subic that is expected to transform the country’s premier Freeport into one of the world’s fourth biggest shipbuilding facility.

Subic Bay Metropolitan Authority (SBMA) administrator and CEO Armand C. Arreza refused to divulge the identity of the Korean firm but said the signing of the investment agreement is expected to be done during the state visit of Korean president in December this year.

"By December 15 we committed to deliver the 269 hectares that the Korean firm requires for its proposed facility," Arreza said.

According to Arreza, the Korean firm has proposed to manufacture 8,000 TEU post Panama vessels and is expected to employ 20,000 workers.

The company was also looking at putting up the facility in China and Vietnam but decided to locate in Subic because of the natural deep harbor of the Freeport.

"The negotiation already started early this year," Arreza said.

Construction of the shipbuilding facility is expected to be completed within five years.

Arreza said that Subic has been attracting not just Taiwanese firms but other nationalities as well including those from mainland China and Korea.

Committed investments in Subic as of September this year have reached over $1 billion already.

Arreza also said that they may offer another site for Hebei Jingniu Crystal Bull Co. Ltd. of China which has proposed to put up a $300-million glass production facility inside Subic.

FULL DETAIL:
http://www.mb.com.ph/BSNS2005110247976.html

EVAT boosts peso, stocks
By Rica Delfinado
The Philippine Star 11/03/2005

The peso gained strength and stocks rose yesterday as the markets cheered the long awaited implementation of the expanded value-added tax (EVAT) law, which took effect Nov. 1.

The peso closed at a five-month high of 54.72 to the dollar, up 22 centavos from Friday’s close of 54.940. Stocks also surged 46.90 points, gaining 2.4 percent, and settled at a three-month high of 2,007.12 points.

The peso’s last highest rally was on June 8, 2005 when it closed at 54.670 to $1.

"It’s bad news for consumers, but the EVAT implementation should be viewed positively as it will ensure long-term fiscal stability for the government," a dealer at a local commercial bank said.

The EVAT is expected to shore up the government’s finances and reduce the budget deficit to more manageable levels.

Dealers said the peso was also boosted by the seasonal spike in remittances of overseas Filipino workers ahead of the Christmas season and the Bangko Sentral ng Pilipinas (BSP)’s previous action of raising key interest rates to their highest levels in three years.

The BSP raised its key overnight borrowing rate a quarter point to 7.5 percent on Oct. 20. The US Federal Reserve increased its benchmark federal funds rate by a quarter point to four percent.

BSP Governor Amando Tetangco said the Fed hike was expected. He maintained that policy makers will take that into account when they consider policy.

"The comment suggests the possibility they will raise rates further, supporting the peso," said Osamu Takashima, chief analyst in the currency and treasury division of the Bank of Tokyo-Mitsubishi Ltd. "The country will maintain its interest-rate advantage."

Rising rates may draw investors’ interest to higher-yielding Philippine bonds and assets denominated in peso.

Funds repatriated by Filipinos working abroad are also seen to rise by as much as 20 percent to $10.3 billion this year and by 10 percent in 2006.

For the first eight months of the year, remittances totaled $7 billion, or 28 percent more than a year ago.

"The remittance is really a big factor for demand and supply conditions for the peso," Takashima said. "The amount of remittances may accelerate toward the year-end and that has been supporting the currency."

In a related development, officials of the Philippine Chamber of Commerce and Industry (PCCI) defended yesterday the EVAT’s implementation and pointed to soaring fuel prices as the cause of higher prices of commodities.

PCCI president Donald Dee cited the plans of a sardine canning company to suspend operations in the country due to the high cost of fuel.

"There is an effect (of the increase in prices of fuel). Nobody is buying their sardines... This is because of the high cost of operations, not the EVAT," said Dee.

He disclosed that the PCCI recently met with foreign chambers in the Philippines and business organizations to discuss the country’s economy.

"Our agenda is for sustained economic growth," he said.

Dee and PCCI chairman Sergio Ortis Luiz Jr. advised militant groups to stop causing instability in the country by holding rallies as it will only continue to bring down the economy. Dee instead advised them to have talks with the government or private organizations to discuss the problem.

"The economic numbers would show that the economy is okay, but it is not really growing as expected," Luis added. "If there are no political noises, this is okay."

Luis also said that the value-added tax is an old law but now the exemptions are brushed out.

"This has been passed into law a long time ago. Several have already expressed protest on this because of the exemptions. For an EVAT system to work, it has to be as pure as possible, with no exemptions so that the chain will be clean," he said.

Dee, however, urged the public to monitor the government’s use of the EVAT. He said the business sector is now also closely monitoring the government, especially the Bureau of Customs. — With reports from AFP, Sandy Araneta

http://www.philstar.com/philstar/News200511030401.htm

Debt service to get priority in EVAT

The Philippine Star 11/03/2005

Revenue generated from the expanded value-added tax in the first six months of the implementation of the EVAT law will go to debt servicing, Finance Secretary Margarito Teves said yesterday.

After six months, 70 percent will be allotted to debt payments while 30 percent will be used for infrastructure and social services.

"Every year, our debts will decrease so we will be able to spend more on infrastructure to create jobs and improve our social services," Teves said in a roundtable discussion on EVAT with Trade Secretary Peter Favila and Agriculture Secretary Domingo Panganiban over government television NBN-4.

Teves emphasized that reduction of the country’s debt would be good for the Philippines’ credit rating and image before the international community.

Teves is hoping that Congress will not yet amend the EVAT law. He wants the government to be given a chance to fully implement the EVAT and develop mitigating measures particularly for the poor.

He said the government should improve tax collection and curb corruption and unnecessary spending to ensure that the additional revenue will go directly back to the people.

The national government’s debts had reached more than P4 trillion and almost one third of the national budget goes to debt servicing every year.

Of the P1.053 trillion proposed national budget for 2006, roughly 70 percent or P721.668 billion will go to debt servicing while only P331 billion will be allocated to the legislative and executive branches.

This means that for every P1 raised for next year’s budget, the Filipino people will only get roughly 33 centavos. The rest will be used to pay local and foreign creditors.

Based on data from the Bureau of Treasury, of the P721.668 billion allotted for debt servicing, interest payments will reach P339.998 billion while P381.67 billion will go to the amortization of debt principals.

The 2006 debt service allocation is an all-time high. This year, debt servicing allocation reached only P674.114 billion, but higher than the P601.672 billion in 2004.

Officials explained that new revenues from EVAT would help the county pay its debts and finance its own projects without resorting to further borrowings.

Improved investment climate

This early, the EVAT’s implementation had already somewhat boosted investor confidence.

In a statement, Teves claimed that Merrill Lynch and Morgan Stanley have placed high positive marks on the country’s investment climate.

"Improving investor sentiment will not only allow the government to generate savings because of lower borrowing cost but actual investment inflows will generate jobs and increase economic activity," Teves said.

The Department of Finance also claims that the two investment houses had upgraded their evaluation of Philippine debt papers.

US-based Merrill Lynch upgraded the country’s credit rating to "overweight," which is considered the best rating for debt papers.

"The fiscal outlook appears stronger for 2006 and the medium term, and the government should be able to bring down the level of public debt," Merrill Lynch said.

Morgan Stanley, on the other hand, increased its recommendation on Philippine debt papers based on strong revenue collection which is expected to reduce the budget deficit.

Teves said the EVAT would raise P81.4 billion in additional revenues next year and trim the budget deficit to P124.9 billion in 2006.

The government, however, needs to thresh out three major issues for the smooth implementation of EVAT.

Energy Secretary Raphael Lotilla said concerns such as the two-percent presumptive tax of dealers of oil companies, the two-percent reduction in tariff from five percent to three percent; and the five percent final withholding tax on the sale of government entities should be addressed.

"We have to work out ways to effect the EVAT as prudently as possible. It is important that we have valuation of numbers. We are working closely with industry players and the dealers who are hit by EVAT," Lotilla said.

He disclosed that the Department of Energy is looking at the possibility of a retroactive implementation of the presumptive tax of dealers.

"We need to recognize the inventories as of Nov. 1 retroactive September," he said.

On the reduction of tariff on petroleum products, Lotilla said the department is working with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to carry out the reduction in import duties for products to be sold on Nov. 1.

Normally, crude refiners like Petron Corp. and Pilipinas Shell Petroleum Corp. have inventory levels of 45 days while oil importers only have 15 days.

Thus, the government should see to it that the VAT would be slapped only on oil firms’ inventories during the time of the implementation of the new tax law.

"What we actually want is to get an accurate computation of the impact of EVAT on petroleum products," Lotilla said.

FULL DETAIL:

http://philstar.com/philstar/News200511030402.htm

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Let's all HOPE and PRAY that it will work out as how it was planned. :thumb:

Probably, the AFP modernization will kick off after a year or so.

NO WONDER THE COMMIES AND PGMA'S DETRACTORS ARE DOING ANYTHING JUST TO DERAIL THEIR PLAN.

With this forecasted easing up of debts and more money for development, there'll be less reasons for our fellows in the countryside to join the rebellion.

Lasting peace will soon be achieved if more funds will be available for development projects.

:exactly:

DAPAT LANG! DAPAT BANTAYAN NG MAIGI ANG MGA KURAKOT NG LAWMAKERS AT LOCAL OFFICIALS.. PARA DI MASAYANG PERA NG BAYAN.

where the are the EVAT critics!!!! WHAT SAY YOU!!!! :pushup: peace...

Top economists, like Solita Monsod, also agrees that THERE'S NO OTHER ALTERNATIVE BUT TO FIND NEW TAXES.

Failure to impose this law will only drag the nation down further since the country will be forced to borrow more and that will further cut the national budget's allocation for development.

The sad thing here, if we dont impose this law, is that the investor confidence will worsen and this will further dampen the growth of the economy.

Now, since the EVAT law has been signed into law, the reverse of this grim outlook will be realized instead.

This means that there'll be more funds to pay off our debts during the first year.
Then when the debts have been lessened, the excess funds will then be used to finance more development projects.

Probably, after a year or two, there will be enough funds for the AFP's modernization.

That would result to better capability to address or subjugate internal and external security concerns and problems.

PAL to purchase nine new Airbus 320s over next three years
11/08 7:39:21 PM

MANILA (AP) - Philippine Airlines said Tuesday it will purchase nine new Airbus 320 jets over the next three years to ensure its dominance in the country's airline industry.

President Jaime Bautista told reporters the company plans to borrow from export credit agencies to fund the purchases.

The new aircraft will service domestic and regional routes, Bautista said.

PAL currently has a fleet of 31 aircraft with an average age of nine years, including Boeing 747-400s, 737-400s and 737-300s, as well as Airbus A340-300s, A330-300s and A320-200s.

http://www.philstar.com/philstar/NEWS_FLAS...20054137_15.htm