Soaring stock market earns thumbs-up for PH

By Kim Arveen Patria | Yahoo! Southeast Asia Newsroom – Mon, Dec 3, 2012   

The economy notched another vote of confidence as the Philippines landed in an international news website's list of 40 best-performing stock markets this year.

CNN Money ranked the Philippines as the 9th bourse with the strongest performance so far in 2012, noting a 26-percent gain as of Nov. 14.

Reuters/REUTERS - A worker counts one thousand pesos bills inside a money changer in Manila November 28, 2012. The Philippine peso hovered around its strongest level in more than 4-1/2 years on Wednesday after stronger growth data, while most other emerging Asian currencies slid on worries about the looming U.S. fiscal crisis and doubt on the Greece debt deal. REUTERS/Romeo Ranoco (PHILIPPINES - Tags: POLITICS BUSINESS SOCIETY)

Related story: World Bank says more people have access to phones than toilets

The list, which is also tagged as the "best investments in the world," includes stock markets which posted "healthy gains" despite "a volatile year and a slowing global economy," CNN Money said.

The recent thumbs-up for the Philippine economy comes as local stocks soared to new all-time highs 32 times so far this year.

In other News: Which mall is most PWD-friendly? 

The latest record was hit Thursday when the PSEi rose by 0.12 percent or 6.73 points, closing at 5,640.45.

"A number of stock markets around the world have delivered solid performances this year, but if you look at the standouts, there's a common thread: they're all small emerging markets," CNN Money said.

The best-performing markets are those are insulated from external events and have enjoyed stable local and political environments, it added, quoting a fund analyst.

Related story: Shopping tops PH tourism industry earnings 

Venezuela sat on top of the list of 40 markets, having posted a year-to-date gain of 219 percent so far this year.

It was followed by Egypt (55 percent), Turkey (43 percent), Pakistan (33 percent) and Nigeria (31 percent).

At the bottom of the list, meanwhile, are Taiwan and the United States,which both posted 6-percent gains; and Czech Republic, Iceland, Luxembourg at 4 percent.

"While most of the top-performing markets are still small when it comes to liquidity and volume, they're starting to gain positive attention from investors, fund managers and rating agencies," CNN Money said further.

In the case of the Philippines, the three major credit rating agencies--Standard & Poor's, Moody's and Fitch--now placed it only a notch below investment grade.

For more updates and good news about Philippine Economy, Business and Investment issues, subscribe to our blog. You may also visit our website for more info about Real Estate industry concerns at http://www.yourwiseinvestment.com

Source: http://ph.news.yahoo.com/soaring-stock-market-earns-thumbs-up-for-ph-080731064.html

PH economy best performer in Southeast Asia

Surprising 7.1% growth

PH economy best performer in Southeast Asia

By Riza T. Olchondra
Philippine Daily Inquirer
12:29 am | Thursday, November 29th, 2012 

CRANES OVER MAKATI CITY A property boom in Metro Manila, described as the best in two decades, has pushed construction to its highest growth in at least six quarters, jumping 24.3 percent in the third quarter from a year earlier. EDWIN BACASMAS

The Philippine economy grew 7.1 percent in the third quarter year-on-year, exceeding expectations and making it the best performer in Southeast Asia.

The country’s economic growth was the strongest in Asia during the period after China’s.

“We are well on our way to surpassing our growth target of 5 to 6 percent this year,” Socioeconomic Planning Secretary

Arsenio Balisacan told reporters on Wednesday.

Balisacan said the high growth of the gross domestic product (GDP), the value of goods produced and services rendered in a given period, was expected to translate to more jobs and better incomes for Filipinos.

A jump in third-quarter farm output and a late rebound in exports also contributed to the economy’s 1.3-percent growth rate in the July-September quarter from April-June, which was three times as fast as economists had predicted.

Robust domestic consumption and higher government spending have helped cushion the economy from the worst of the global slowdown, while manageable inflation has allowed authorities to keep interest rates conducive to growth.

The country is the only economy in the world which the International Monetary Fund (IMF) believes will grow faster than earlier expected this year.

Earlier this month, the IMF raised its 2012 growth outlook for the Philippines to more than 5 percent from its October forecast of 4.8 percent, citing its sound fiscal and monetary policies.

‘Diamond’ of region

“The Philippines is the diamond of the region this year,” said Enrico Tanuwidjaja, economist for Southeast Asia at RBS in Singapore.

Indonesia was the second-best performer in Asean with 6.2 percent growth, followed by Malaysia (5.2 percent), Vietnam (4.7 percent), Thailand

(3 percent) and Singapore (0.3 percent). China posted a 7.7-percent GDP growth.

Balisacan said the third-quarter performance of the Philippine economy was way above the market’s media forecast of 5.4 percent.

The growth momentum is expected to continue next year as government works to ease the cost of doing business and as more infrastructure projects under the private-public partnership scheme get underway, he said.

Record infra budget

The government has set a record infrastructure budget of over P400 billion next year as it pursues major upgrades of roads, ports, bridges and airports to speed up growth and boost private investment.

Balisacan said these along with finance department’s tapping of the country’s record foreign reserves to pay its foreign debts would ease the upward pressures on the peso next year.

The peso is Asia’s best performing currency so far this year, up more than 7 percent against the US dollar on strong foreign inflows into Philippine stocks and bonds, fueled by forecasts of sustained and resilient domestic growth.

Year-to-date growth is already at 6.5 percent with services and industry (except mining) still driving growth.

Officials said the full-year growth would likely beat the target of 5 to 6 percent and move toward the previously “aspirational” 7-8 percent needed per year to spur employment and curb poverty.

A strong BPO sector, booming construction, increased consumer and government spending, and external trade contributed to the highest quarterly growth since 2010, said

Jose Ramon G. Albert, secretary general of the National Statistical Coordination Board.

Property boom

Among industries, construction posted its highest growth in at least six quarters, jumping 24.3 percent from a year earlier as Metro Manila enjoys the best property boom in two decades. (See table below.)

Public consumption expanded an annual 12 percent in the third quarter, almost double the rate in the second quarter.

Relatively stable prices, steady inflow of remittances, and rebounding exports supported growth, according to the National Economic and Development Authority (Neda).

While export receipts of semiconductors and electronic data processing equipment contracted, both items contributed recently to increased imports, which may mean that manufacturers have been “stocking up” on intermediate inputs in anticipation of recovery in the global demand for electronic products, Neda said.

Agriculture also fared better in the third quarter than in the four previous quarters with increased rice and corn outputs as part of efforts to achieve food self-sufficiency. The weak fishery sector is a concern, however, Balisacan said.

Good governance

In a briefing, presidential spokesperson Edwin Lacierda attributed the high growth rate to “sustained confidence in the leadership of President Aquino and his administration, which has consistently equated good governance with good economics.”

Mr. Aquino, who was elected in 2010, has instituted anticorruption reforms while seeking to boost revenues and improve government spending.

“The Philippine economy has shown both resilience and resurgence despite the global economic slowdown,” Lacierda said.

Finance Secretary Cesar Purisima said confidence in the way the government was being run had encouraged more people to do business in the country.

“The growth rate shows that the economics of good governance, or ‘Aquinomics’ works,” Purisima said in a statement.

The Makati Business Club (MBC) lauded the strong third-quarter performance.

“Good governance is paying off. President Aquino and his economic team must be lauded,” MBC executive director Peter Perfecto said via text message.

Trade Secretary Gregory Domingo said in a phone interview that he was “not surprised” by the 7.1-percent growth for the third quarter because the country was coming from a low growth base.

In the third quarter of 2011, the economy turned sluggish as exporters and other contributors to the economy felt the impact of the triple tragedy in Japan and the flooding in Thailand earlier that year.

“Nevertheless, it is good to post this level of growth for the third quarter. We will continue to help our business people with shared facilities, simplifying and shortening the process of starting a business, and educate entrepreneurs as well as students on how to take advantage of free-trade agreements.

Budget Secretary Florencio Abad said the latest indicators showed that the country faced “very fruitful times ahead” with low inflation and interest rates and increased confidence in government reforms.

Christmas, poll spending

Abad said growth was likely to stay robust in the fourth quarter.

“Public consumption will most definitely stay robust, fueled by high consumption levels during the holidays, continuing investments in public and private infrastructure, and the kick-start of election-related spending this Christmas season,” Abad said in a separate statement.

Abad said this would improve the country’s credit rating further. Both Moody’s and Standard & Poor’s raised the Philippines’ credit ratings to within one rung of investment grade in recent months.

However, Balisacan said there were still external threats such as the “looming fiscal cliff” in the United States and the long-running eurozone crisis.

He also said the government was closely watching the strengthening peso, which could hurt exporters’ competitiveness. With reports from Michael Lim Ubac, Michelle Remo, AFP

Third quarter 2012 growth by industry

Industry/ Group               Growth rate (in percent)

Agriculture                                          5.5

Fishing                                                  -0.6

Industry sector                                 8.1

a. Mining & quarrying                     -2.2

b. Manufacturing                             5.7

c. Construction                                  24.3

d. Electricity,gas and water supply            2.7

Service sector                                    7

a. Transportation, storage and

communication                                 9

b. Trade and repair of motor

vehicles, motorcycles,

personal and household goods 7

c. Financial intermediation           8.3

d. Real estate, renting

& business activity                           7.8

e. Public administration

& defense; compulsory

social security                                    4.3

f. Other services                               5.3

Visit our website for more info about Real Estate properties and investment at http://www.yourwiseinvestment.com

Source: http://business.inquirer.net/95447/philippine-economy-grows-7-1-in-third-quarter

Boracay beats Ibiza in top party beaches list

Boracay as one of the top party beaches in the world. Photo by Karen Flores, ABS-CBNnews.com 

MANILA, Philippines – The Philippines’ very own Boracay island continues to be recognized as among the world’s best as it recently beat Ibiza in Spain and South Beach in Miami in a list of top party beaches compiled by online travel advisor Cheapflights.com.

The Huffington Post recently featured Cheapflights.com’s list of “Top 10 party beaches around the world,” where Boracay ranked sixth. Ibiza and South Beach landed in seventh and eighth place, respectively.

Topping the list is Psarou Beach in Mykonos island in Greece, which was described as a “pretty well-kept secret.”

Cheapflights.com said of Boracay's White Beach: “This beach at Boracay used to be so notorious for wild behavior that its visitors were sworn to secrecy – to keep this gem a private pleasure. Word got out eventually (of course), but the party scene hasn’t been dialed back a single bit.

“When night falls, this incredible beach comes to life. There are amazing fire dance shows and fireworks, live bands and parties that last from dusk until dawn. There’s a great variety of clubs and bars along the beach, so no matter what kind of music you’re interested in, you’ll find a great place to hang out where the dance floor is never empty.”

Other beaches that made it to the list include Zrce Beach in Croatia (second), Palolem Beach in India (third), Haad Rin Beach in Thailand (fourth), Nissi Beach in Cyprus (fifth), Gordon Beach in Israel (ninth) and Kuta Beach in Indonesia (tenth).

Early this year, Boracay was named the world’s best island getaway by Travel +Leisure, an international travel magazine. The list of top ten island destinations was based on a survey of the magazine’s readers.

Source: ABS-CBNnews.com

For foreigners, working is more fun in PH

Reuters/REUTERS - Workers walk in front of a poster advertising a high rise apartment in Manila's Makati financial district August 30, 2012. Philippine economic growth slowed much more sharply than expected in the second quarter as exports slumped, boosting expectations the central bank will cut interest rates again soon to spur activity and cushion the country from the global downturn. REUTERS/Erik De Castro (PHILIPPINES - Tags: BUSINESS POLITICS)

Apparently, even U.S. business executives think it's more fun in the Philippines.

Expatriates currently working in the Philippines seem to be enjoying their stay here, results of the US Chamber of Commerce's latest Association of Southeast Asian Nations (ASEAN) Business Outlook Survey showed.

Surveyed American firms operating in the Philippines answered yes when asked: "Are your expatriate employees generally satisfied with their assignments in your response location?"

The 100-percent score is an increase from 93 percent in 2011 and 86 percent in 2010.

Other Southeast Asian countries also had generally high scores, with the regional average pegged at 96 percent. Aside from the Philippines, Malaysia also got a score of 100 percent in the said indicator.

A growing number of employees in American companies also want to be transferred to the Philippines.

Results of the survey showed that two out of five (40 percent) locally operating American firms said they regularly receive requests from employees based on other locations to work in the Philippines.

This is an increase from 21 percent in 2011 and 15 percent in 2010.

The Philippines got the third highest response in "expatriate assignment satisfaction" within the region, even as it remained below the regional average of 51 percent. It was topped only by Singapore, 75 percent and Malaysia, 40 percent.

More and more employees also want to stay in the Philippines longer, the survey showed further.

Nearly four out of five (79 percent) of firms said surveyed their employees "attempt to extend their time" working here.

This is higher than the country's score of 77 percent in 2011 and 71 percent in 2010.

The country posted the third highest score in this indicator compared to other countries in Southeast Asia, following Singapore (85 percent) and Malaysia (83 percent).

The expatriates' positive sentiment toward ASEAN countries, along with other indicators, means that "the outlook for investment opportunities in ASEAN is good across the region," the US Chamber of Commerce said.

Positive outlooks were expressed by 92 percent of respondents, while 70 percent plan to expand their business in ASEAN.

"Expansion is expected to continue region-wide," the group noted.

In the Philippines alone, 92 percent of respondents "maintain a positive outlook for the ASEAN region as an investment opportunity for their companies."

The country's strengths include its positive relations with the US, availability of skilled manpower, low cost of labor and office lease costs.

Corruption, meanwhile, remains a major concern for American investors.

Also deterring investments are strict laws and regulations, inefficient customs procedures and lack of infrastructure.

Source: By Kim Arveen Patria | Yahoo! Southeast Asia Newsroom / http://ph.news.yahoo.com/for-foreigners--working-is-more-fun-in-ph.html?page=1

Philippine economy grows 5.9% in second quarter

The Philippines said Thursday the economy grew a better-than-forecast 5.9 percent in the three months to June, largely due to a strong services sector.

And the government said the second-quarter figures -- which also saw growth in the first half at 6.1 percent after a strong 6.3 percent expansion in January-March -- would continue for the rest of 2012.

"The resilient services sector remained the main driver of growth," said Lina Castro, secretary general of the National Statistics Coordination Board.

Independent analysts had widely predicted 5.4 to 5.8 percent growth in the second quarter.

Castro said the services sector had accounted for 4.3 percentage points of the growth figure for the three-month period, while industry accounted for 1.5 percentage points and agriculture 0.1 points.

The figures led Socio-economic Planning Secretary Arsenio Balisacan to predict "we will be close to the upper end of the (5.0-6.0 percent) range", for the whole of 2012.

Cranes and container trucks are seen at the port of Manila on August 30. The Philippines said Thursday the economy grew a better-than-forecast 5.9 percent in the three months to June, largely due to a strong services sector

The momentum of growth "will not dissipate in the succeeding quarters", he told reporters.

He cited "accelerated government spending on infrastructure" for helping growth, as well as low inflation, improved exports, rising tourist arrivals and the continued remittances of about 10 million Filipino overseas workers.

A rash of storms and heavy rains that caused massive flooding in Manila and surrounding areas in recent months were unlikely to have a huge effect on the growth rate in 2012, Balisacan added.

"Their impact on agriculture was quite modest and their likely impact (on the whole economy) was also quite modest," he said.

But he warned that the economy faced challenges for the rest of the year stemming from the global economic slowdown and the expected return of the "El Nino" weather phenomenon.

Source: AFP News / http://ph.news.yahoo.com/philippine-economy-grows-5-9-second-quarter-034647633--finance.html

PH is now Asia's strongest-performing economy, says expert

This, as an expert claims Philippines is now the strongest-performing economy in Asia, thanks to improved exports even in a weak global environment.

"The strongest-performing economy in the Asia today is the Philippines," Michael Spencer, chief economist for Asia at Deutsche Bank AG, said in an interview with Bloomberg on Thursday.

Spencer notes the country has historically been identified as dependent on the economies of the United States and Europe, which both continue to face uncertainties.

The Philippine economy grew by 6.4 percent in the first quarter, with economists noting that this signaled a recovery from the sluggish 3.7 percent growth in 2011.

REUTERS - Traders throw confetti as they celebrate the last trading day of the year at the Philippine Stock Exchange in Makati, the financial district of Manila, in this December 29, 2011 file photo. Asia's top companies are less upbeat on their business outlook than in the first quarter, with mounting concern over the euro zone crisis and a slowdown in China's growth, according to the latest Thomson Reuters/INSEAD Asia Business Sentiment Survey, published on June 20, 2012. To match story ASIA-COMPANIES-SENTIMENT/ REUTERS/Romeo Ranoco/Files (PHILIPPINES - Tags: BUSINESS)

This made the Philippines the second fastest-growing Asian economy, topped only by China at 8.1 percent.

"what's driving growth [in the Philippines] today is exports, surprisingly enough for them," Spencer said.

National Statistics Office (NSO) data show that total exports reach $26.8 million in the first half, up 7.68 percent from $24.8 million in the same period in 2011.

The country's export performance has been insulated from weak external demand, particularly from US and Europe, by increasing outbound shipments to Japan, Spencer said.

"I suspect that this has something to do with Japan outsourcing to the Philippines after the earthquake," he added.

Outbound shipments to Japan also grew by 11 percent to $4.77 billion in the first half from $4.29 billion a year ago.

Japan thus remained the Philippines' top market during the period, accounting for 17.8 percent of total exports.

Last year, Japan was also the Philippines' top product destination with $8.86 billion worth of exports or 18.5 percent of total exports.

It was followed by the US, with a 14.8 percent share; China, 12.7 percent; Hong Kong, 7.71 percent; and Singapore, 8.92 percent.

For more details about Philippine Economy, Business and Investment, visit our website at
http://www.yourwiseinvestment.com/

Source: By Kim Arveen Patria | Yahoo! Southeast Asia Newsroom – Mon, Aug 13, 2012

Vista Land bullish on growth

By Zinnia B. Dela Peña (The Philippine Star) Updated June 26, 2012 12:00 AM

MANILA, Philippines - Top homebuilder Vista Land & Lifescapes Inc. said it is confident of delivering profit growth of at least 20 percent this year on the back of strong sales.

“I’m optimistic that we will comfortably meet our targets for the year — P16 billion in revenues and P4.2 billion in profit,” Vista Land chief executive officer Manuel Paolo A. Villar told reporters following ceremonies marking the company’s fifth anniversary as a listed company yesterday.

Villar said the company has witnessed steady growth in its residential projects and sees this trend continuing due to increasing population and income.

With the property market showing no signs of slowing down, Vista Land is aggressively expanding its geographic footprint to reach new areas and provide affordable housing to every Filipino.

In the first quarter, Vista Land reported a 22-percent growth in net income to P1.06 billion, driven by the robust performance of its Camella brand, which caters to the middle-income segment.

“Our second quarter has also been good,” Villar said.

Villar said he is proud of what Vista Land has achieved during the past five years, as revenues rose 62 percent to P13.5 billion in 2011 from only P8 billion in 2007.

“We have built more houses — over 250,000 - than any other property developer in the country, and have the widest geographic presence — in 27 provinces 57 cities and municipalities — and counting — in Luzon, Visayas, and Mindanao,” he pointed out.

For this year, Vista Land is rolling out 32 new residential subdivision projects across the country, with an estimated total project value of P32 billion. This is significantly higher than the 23 projects launched in 2011 with an estimated value of about P21 billion.

Vista Land was recently named one of the best managed companies in the Philippines by FinanceAsia, one of Asia’s leading financial publications.

It ranked among the top five in the “Best Mid-Cap” category and among the top Vista Land’s chief financial Officer Ricardo B. Tan Jr. likewise bagged the best CFO award.


Visit our website for more details about Vista Land projects in the Philippines, at http://www.yourwiseinvestment.com

Vista Land allots P2B for 3 housing projects

By Zinnia B. Dela Peña (The Philippine Star) Updated July 25, 2012 12:00 AM

MANILA, Philippines - Vista Land & Lifescapes Inc. is setting aside more than P2 billion for three projects along the country’s so-called tourism highway, which should translate to a total of 2,400 housing units.

In a statement, Vista Land said the residential projects will cover a total of 34 hectares of land located in prime tourist destinations –-Vigan, Tagbilaran and Puerto Princesa. The company expects to generate around P5 billion in sales from the units.

All three projects are under the Camella brand, the flagship of the Vista Land group and among the 32 residential subdivisions to be launched by the company this year.

The project in Vigan sits on a 15-hectare property in Bgy. Cabaroan in Bantay town at the heart of the city, where Plazas Salcedo and Burgos, the St. Paul’s Cathedral and the nearby Calle Crisologo and Plaridel Street are the favorite tourist spots.

Camella Homes Tagbilaran, on the other hand, will rise in Bgy. Bool with a rolling terrain that rises gently to the foot of Banat-i Hill, the city’s highest point at about 150 meters above sea level, providing a priceless view of the Mindanao Sea.

Camella Puerto Princesa, meanwhile, makes for an idyllic living space for those who put great premium on vacationing or retiring in clean and green surroundings, with the beaches and resorts just two kilometers away.

Vista Land president and chief executive officer Manuel Paolo Villar said the company is now the number one property developer in terms of geographical reach, spanning 28 provinces and 58 cities and municipalities throughout the country.

“We have by far the broadest geographic reach of any developer with a land bank of 1,830 hectares,” Villar said.

Vista Land’s land bank includes properties in key tourist areas that are now being developed in line with the government’s tourism drive.

Vista Land, the holding firm for most of the property firms owned by the family of Sen. Manuel Villar, is confident of delivering profit growth of at least 20 percent this year to reach P4.2 billion. Sales are likewise forecast to rise to P16 billion by year end.

Rise In Employment Rate Reported

A survey reported by the National Statistics Office showed that the country's employment rate improved in April this year compared the same period in 2011.

The NSO said the April 2012 Labor Force Survey (LFS) reported a 93.1 percent employment rate compared to 92.8 percent recorded in the same period last year.

The 2012 LFS also showed that, except for the National Capital Region, all regions in the country recorded employment rates of over 90 percent.

The NSO said that out of an estimated 62.8 million people 15 years and older, 40.6 million belong to the labor force as of April 2012, compared to 39.7 million recorded last year.

It added that the labor force participation rate (LFPR) in April 2012 was 64.7 percent, compared to 64.2 percent in April 2011.

Among the regions, only the Autonomous Region in Muslim Mindanao (ARMM) recorded an LFPR lower than 60 percent.

Those employed in the services sector comprised the largest group of the labor force, making up more than half (51.4 percent) of the total employed.

Workers in the agriculture sector comprised the second largest group, consisting of one-third (33 percent) of the total employed.

Only 15.6 percent of the total employed were in the industry sector, with the manufacturing sub-sector contributing the largest share (8.4 percent of the total employed).

Among the various occupation groups, the laborers and unskilled workers comprised the largest group making up 33.2 percent of the total employed persons in April 2012. Farmers, forestry workers and fishermen were the second largest group with 14.7 percent share.

According to the NSO, employed persons fall into any of these categories: wage and salary workers, self-employed workers without any paid employee, employers in own family-operated farm or business, and unpaid family workers.

Wage and salary workers are those who work for private households, private establishments, government or government-controlled corporations, and those who work with pay in own family-operated farm or business.

"The majority (55.5 percent) of the total employed population in April 2012 were wage and salary workers, with the largest percentage (42.9 percent of total employed) working for private establishments. Those working for the government or government-controlled corporations accounted for only 8 percent and those working for private households, 4.3 percent. In April 2011, wage and salary workers accounted for 55.0 percent of the total employed," the NSO said.

"Self-employed workers without paid employees comprised 29.3 percent of the total employed in April 2012. The unpaid family workers accounted for 11.9 percent of the total employed. Employers in own family-operated farm or business made up 3.3 percent," it said.

Source: Manila Bulletin – Thu, Jun 21, 2012