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Foreign firm to present power supply options to the country

Roy — Sun, 15 May 2011 05:26:39 +0000

A United Kingdom company is offering the Philippines its power solution to help avoid power disruptions in the country.

The British Embassy in Manila said Aggreko, a developer of power solutions, will be coming in the country next week to make a presentation of its product. The embassy said the company’s expertise could help address the possible power shortage in the near future which poses a threat to businesses operating in the country.

Aggreko is bringing to the country its more than 45 years of experience in the power solution industry. The company is said to be the world leader in the supply of temporary power and temperature control services. It will present its alternative solutions to potential power disruptions when it makes its presentation to the country next week.

The target participants in its presentations include the construction industry, food and beverages, agriculture, healthcare, manufacturing, government and institutions, mining and mineral processing, ports and telecommunications, among others.

Aggreko owns the world’s largest power rental fleet which consists of diesel and natural gas generating sets. Company experts will be in Manila to present different power supply options to help businesses avoid opportunity lost and other costs that could be brought about by power disruptions.

The company will be organizing the seminar presentation in partnership with the British Embassy in Manila, through UK Trade & Investment. The aim of the seminar is to inform industries in the country of the different power supply options available in case of unavoidable future power supply shortages.

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Transport firm to pioneer electric buses in the Philippines

Roy — Sun, 01 May 2011 14:57:44 +0000

Local transport firm Green Frog Zero Emission Transport Corp. dared to take the huge risk in the electric vehicle industry and expressed interest to buy some 3,000 electric buses in the next seven years, with the initial 38 units coming in from China within the year.

Green Frog director Philip Apostol said the 36-passenger buses will be fielded in Makati City with an P8 fare trip. The first 10 buses arriving midyear will ply the Buendia line while the 28 units will take other routes. The buses will initially ply a route that goes along Buendia from EDSA to the South Luzon Expressway (SLEX). Eventually, they will be available to commuters with the whole of Makati.

“The plan is to implement to project within 90 days after the signing of the MOA (memorandum of agreement) with the Makati LGU. This is a PPP (Public-Private-Partnership) with Makati,” he said. Apostol admits that cost of the e-buses was high, but hopes that the government “would work” with them.

He did not disclosed the cost of the electric buses but said that normally, the bigger electric buses would cost $300,000 (P13.5 million) each. Green Frog’s buses, however, will be smaller and would cost less.

The company is seeking tax perks, among other incentives, and a pioneer status from the Board of Investments, to make the project economically viable.

Negotiations by the company with banks and government financial institutions have been started, seeking for the best financing package. It also seeks some guarantees from the Philippine Export Import Credit Agency (PhilExim) to get lower interest rates.

Apostol said the half of the revenues will be coming from advertising income to help keep fares at reasonable levels during the initial roll-out.

Another Green Frog director, Servillano Batac, said talks were also ongoing between government and financial institutions for the mechanics of a “tap-and-go” system for the electric buses. “The idea is that you will be able to use your MRT (Metro Rail Transit) cards to pay our electric buses, just like in other countries,” he said.

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Diskwento Caravan rolls out of Metro Manila

Roy — Sun, 01 May 2011 11:38:46 +0000

The Diskwento Caravan (Discount Caravan) will soon roll out to areas outside Metro Manila to bring cheaper goods to more Filipino consumers.

Department of Trade and Industry (DTI) secretary Gregory L. Domingo said, “We also want consumers in various regions to experience the reduced prices of goods sold at the caravan which Metro Manila residents were afforded.”

Domingo instructed the agency’s regional and provincial directors to coordinate with manufacturers of prime and basic commodities to sell discounted products in provinces and allow consumers in the countryside to purchase products for as low as factory prices. The Diskwento Caravan is participated by manufacturers that sell their wares ranging from generic medicines, bread, sardines, cooking oil, processed meat, fruits, vegetables, detergent bars and school supplies.

The DTI chief said consumers should take this opportunity and take advantage of the discounts, most especially to households that are in need of school supplies for the coming school opening. “Enrollment is just a few days, students and mothers can shop for notebooks, crayolas, ballpens, pencils, etc. and expect big savings on these items.”

The trade department, however, was quick to point out that they do not directly compete with local retailers since the caravans are stationed far from commercial establishments and hosted in city halls and are under the supervision of the mayor’s office.

The schedule of the Diskwento Caravans are as follows: Bukidnon – April 27-28; Antique – May 4-5; Abra – May 10-11; Oriental Mindoro – May 18-19; Pangasinan – May 24-25; Surigao del Norte –May 30-31; Zambales – June 2-3; Zamboanga del Norte – June 7-8; Cagayan – June 14-15; Northern Samar – June 17-18; Sorsogon – June 22-23; Davao Oriental – June 28-29; Negros Oriental July 5-6; Quezon – July 14-15; and Saranggani – July 26-27.

In Metro Manila, the Diskwento Caravan will be at the DTI headquarters in Buendia Ave. corner Makati Ave – May 9 -10, Mandaluyong, May 16; Manila – May 30; Pateros – May 31; Taguig – June 1; Malabon – June 3. The Diskwento Caravans will be enhanced with jobs fair to be conducted by the Labor Department and the National Wages and Productivity Commission at the same venues and schedules.

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Philippine-China trade and conference fair set on June

Roy — Sun, 01 May 2011 08:56:27 +0000

The China Council for the Promotion of International Trade (CCPIT)-Guangzhou and Philippine Chamber of Commerce and Industry (PCCI) recently signed a cooperation agreement to co-organize the Manila-Guangzhou Trade and Investment Conference slated to be held on June.

The event, which is aimed to further boost the Philippine-China trade and investment relations, is expected to gather around 500 business leaders, industry captains and government officials from both countries.

Part of the activities of the conference will be a product promotion through a virtual trade fair which would feature top export products of China, and business matching activities. There will also be office and factory visits to be arranged for the estimated 200 businesses and industry leaders comprising the Chinese delegation.

PCCI President Dr. Francis Chua said, “The Philippines and Chinese’ economies are open to mutual cooperation in trade and investments. While initially, the idea behind the conference is to promote Chinese-manufactured products for export to the country, we are making it a point to ensure that local enterprises and industries get maximum exposure and gain from the visit of top-level Chinese businessmen. That is why we are arranging business meetings and site visitations on the sidelines of the conference.”

China is the country’s top trading partner with export receipts reaching US$51.39 billion in 2010. Data from the National Statistic Office (NSO) show that the combined markets of China and Hong Kong in 2010 accounted for about 19.52 percent of the Philippines’ total exports.

Guangzhou Vice President of CCPIT Madame Li San Jian said, “China is a very big market. With increasing domestic demand and infrastructure development, Philippine export products such as mineral-and-metal-based resources as well as processed and fresh food products can easily gain entry into the Chinese market.”

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PLDT counters Globe’s claim

Roy — Sat, 30 Apr 2011 02:02:45 +0000

The Philippine Long Distance Telephone Co. (PLDT) said the claim of Globe Telecom that the deal between PLDT and Digital Telecommuncations Phil. Inc. (Digitel) would result into the monopoly of the telecom industry is only Globe’s way of protecting its interest at the public’s expense. PLDT criticized Globe’s effort to stop the deal that would allow the telecom giant to take over third-ranked mobile brand Sun Cellular.

PLDT said that the acquisition of Sun would actually result in a more efficient use of network facilities, which would lead to better services at lower costs. “Globe wants to create the impression of an impending monopoly by PLDT, which is not the case,” said Ray Espinosa, regulatory affairs head of the company. “What they really want is for the government to make up for their inefficiencies.”

Earlier, Globe asked the National Telecommunications Commission (NTC) to intervene in the deal between PLDT and Sun Cellular operator Digitel. Globe claimed that a monopoly would emerge from this deal and this could only work for the detriment of the industry and consumers. Globe also said that the deal would give the combined entity 3.5 frequencies for every one that Globe has, creating an imbalance.

Espinosa countered that based on the data available at the NTC, PLDT is in fact 23-percent more efficient than Globe in terms of frequency use. This means PLDT, which has 45 million subscribers, need more frequencies than Globe. He said Globe should instead allow market forces to work and let the consumers decide for themselves which is the better network.

With the claim that the PLDT-Digitel would give them 70 percent control of the market that would eventually kill competition, Espinosa said that at the end of the day, it all boils down on to which network can offer the better service, regardless of the size of the company.

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DTI’s trade mission to India produces $42 M investment pledges

Roy — Fri, 22 Apr 2011 15:59:24 +0000

The Department of Trade and Industry (DTI) reported that their recent trade and investment mission in India have generated new investment pledges worth $42 million. Trade Secretary Gregory Domingo said they were from three energy projects and a pharmaceutical packaging ventures.

The Philippine delegates, led by Domingo, attended the recent ASEAN-India Business Fair and Conclave held in New Delhi in its bid to penetrate India’s trillion dollar market. Other members of the Philippine mission were the Department of Agriculture, Department of Tourism, Department of Foreign Affairs and the Philippine India Business Council of the Philippine Chamber of Commerce and Industry.

Domingo said he was able to convince Indian businessmen to invest in the Philippines during his first official trip, and the trade department’s first mission to India. “India is emerging as a source of foreign direct investments (FDIs) for the Philippines. Apart from BPO companies which are directed by their principals to open delivery centers in the Philippines, more Indian companies are continuing to realize the potential of the Philippines as a gateway to the lucrative ASEAN market,” he said.

The investment pledges acquired by DTI include two 20-megawatt stand-alone liquefied natural gas (LNG) power plants in Tawi-Tawi and in Cagayan as well as a 1.5-megawatt mini hydro electric power project in Abra.

According to Domingo, the trade department is working on several initiatives for Indian businessmen locating in the country which include the improved business registration procedures; and relaxed visa norms for senior executives of IT and BPO companies. Add to this, he also announced the recently inaugurated direct flights from Manila to New Delhi of the Philippine Airlines (PAL).

During their trip, Domingo also witnessed the signing of a memorandum of understanding (MOUs) between the Associated Chamber of Commerce in India (ASSOCHAM) and the Philippine Chamber of Commerce and Industry, and between the Federation of Indian Mining Industries and the Philippine Chamber of Mining Industries represented by Philip Romualdez, to promote trade, investments, and economic relations between India and the Philippines.

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Ayala Corp. allots P79 billion for its capex

Roy — Tue, 19 Apr 2011 04:51:18 +0000

Giant conglomerate Ayala Corp. allots a record-high P79 billion for its capital expenditures this year. The company said it is in an excellent position to delve into various investment opportunities. It is particularly eyeing the power and infrastructure sector.

During the annual stockholders’ meeting, chairman Jaime Augusto Zobel de Ayala said that while the company is quite successful in its traditional markets which continue to grow, the favorable economic environment has “also ushered a renewed interest to invest in sectors that are critical to sustaining and raising the country’s growth trajectory, particularly with the government’s emphasis on increased private sector participation in the infrastructure and power sectors.”

He added that the group’s ultimate goal is to broaden its customer to reach and diversify its portfolio in a manner that creates developmental impact and economic value both for the corporation and the society as a whole.

The company first took a plunge in the power industry in 2010. It is now aiming to build its power portfolio using both renewable energy sources and traditional fossil fuels. “We are in the process of developing focused platforms across various technologies such as solar, wind, both large-scale and mini hydro, as well as thermal energy with the intent of balancing cost of energy delivery with sustainable practices,” Zobel said. The group aims to put up power facilities that can generate over 1,000 megawatts of electricity over the next five years.

The conglomerate remains on the lookout for opportunities apart from the power industry, like in the transportation infrastructure space, particularly whose which may have strategic value with other business units.

The company is bidding for a contract to operate and maintain the 17-kilometer Line 3 of the Metro Rail Transit (MRT3), which has an estimated cost of P6.3 billion. The MRT3 is one of the infrastructure projects being offered by the government under the public-private partnership (PPP) program.

Meanwhile, president Fernando Zobel de Ayala, for his part, said the highly diversified conglomerate has a healthy cash level, which stood at P29 billion as of end-December last year. “We maintain a highly flexible funding position that allows us to make sizable investments in new sectors moving forward without impairing value-enhancing initiatives such as our ongoing buy-back program, dividend payouts and meeting our funding requirements.”

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Ayala stays firm in its investment in Globe

Roy — Mon, 18 Apr 2011 16:48:09 +0000

Despite of the looming merger of rival Philippine Long Distance Telephone Co. (PLDT) and Digital Telecommunications Philippines Inc., (Digitel), the Ayala Corp. said it has no plans of leaving the telecommunications business.

Ayala and partner Singapore Telecommunications Ltd. (SingTel) were excited about the prospect of its Globe Telecom Inc., despite the tougher competition brought about by the merger of its two rivals.

Jaime Augusto Zobel de Ayala, chairman of the country’s oldest conglomerate, said “I see no reason to disrupt the partnership between Ayala and SingTel,” when asked if they would be willing to accommodate a new investor for Globe. “It’s a very interesting for the industry. It would be foolish of us to get out at this time,” he added.

Analyst earlier said that the deal between PLDT and Digitel would give the telecom giant 70% of the mobile phone market to the disadvantage of Globe. However, Zobel said they remain unfazed by stiff competition in the industry. “In fact, together with our partner, we’re very interested in building Globe up,” he said.

He added that Globe would spend $500 million to upgrade its network as it looks to protect market share.

And while its Globe Company only ranked No. 2 in the telco industry, the conglomerate has a lot of high profile businesses.

It owns property Ayala Land Inc., Bank of the Philippine Islands, Manila Water Co., and it also has interest in business process outsourcing (BPO), electronics and car dealerships. This year, the conglomerate is hiking its capital expenditures by 20% to about P80 billion to accommodate plans to expand into power generation and infrastructure.

Ayala also plans to bid for the contract to operate 2 major elevated railway systems in Metro Manila, which the government will auction under its public-private partnership program. “We believe power generation is a potential source of long-term growth for Ayala. We feel there is an opportunity for new players to come in,” Zobel said.

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PLDT assured market would still be competitive after acquisition of Digitel

Roy — Fri, 15 Apr 2011 04:12:21 +0000

The Philippine Long Distance Telephone Co. (PLDT downplayed fears that its takeover of rival Digitel Telecommunications Philippines Inc. would hinder competition in the local telecommunications industry. The telecom giant in fact said that the PLDT-Digitel merger would even be beneficial to the industry and would bring in better services and more competitive prices for consumers.

PLDT’s Manny Pangilinan said, “We will keep Digitel as a separate company. This is not a merger… more importantly, we will maintain the unlimited and bucket-priced services of Sun Cellular.” He assured that the PLDT group will officially set itself to developing widely accessible, high-speed internet. “We will make a formal commitment to the government for the benefit of consumers,” he added.

Pangilinan said that the acquisition of Digitel will help PLDT roll out broadband services to 95 percent of the country “in three years.” At present, only two-thirds of the Philippines has high-speed internet access.

The PLDT statement came out in response to the concerns raised by some consumer groups and lawmakers that the merger would allow the telecom giant to market prices, ending the “price wars” that have helped keep telecommunication services at affordable rates.

Rival Globe Telecom of the Ayala group even asked the government “to look into the deal” between PLDT and Digitel. Globe said that regulators should consider ordering PLDT to relinquish some of its redundant frequencies following its takeover of Digitel’s operations.

Pangilinan replied that this should only be done in the event of a scarcity of frequencies for new players in the market, which is not the case. He said, “Our frequencies are enough for the subscribers we have.”

After acquiring Digitel, PLDT will acquire 67 percent of industry revenues. Seven out of 10 mobile users in the Philippines will also be on its network.

Pangilinan, however, admitted that due to the size of the agreement, which is valued at P74.1 billion, a state review may be “warranted.” He assured the government though that the market would remain competitive.

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SMC prepares for its foray in the telco industry

Roy — Wed, 13 Apr 2011 01:35:54 +0000

The corporate food and beverage giant San Miguel Corp. (SMC) is seriously mulling entry into the highly competitive field of telecommunication. The company plans to create a holding company for all its telecommunications interest as the conglomerate prepares for its grand entry in this field, according to a top official of the company. SMC president and COO Ramon S. Ang confirms “That is the intention, to create a holding company for our telco business.”

The company have already invested P9 billion so far in the local telecommunications business and plans to put in even more in order to build what it describes as a “next generation” network that will provide the best service and cheapest rate in the country. Ang emphasized that their business model for telecommunications guarantees one that will be better than what the other companies are giving.

SMC, at present, owns 41.5 percent of Liberty Telecom, 100 percent of Bell Telecom and 40 percent of Easter Telecom. Ang assured that they will not be wasting money, time and effort to establish a complete network that will just copy what is being offered in the market right now. “It will be a next generation, long-term evolution, mobile broadband, which is still being planned by others in the industry,” he said.

What is important right now, Ang noted, is to have a level-playing field in the telco industry. “But what I can assure you is that our service will be the best, no dropped calls, and very affordable rates. We will not waste resources if we will not do it right,” he said.

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Geneva Cruz strips anew for PETA

Roy — Wed, 06 Apr 2011 14:30:48 +0000

Filipina singer and actress Geneva Cruz once again has gone naked for a cause. Cruz went nude in the latest ad campaign of the People for the Ethical Treatment of Animals (PETA) Asia dubbed, “Go Natural, Go Vegan.”

In the latest ad, Cruz was stripped in her birthday suit and was only clutching an armful of tomatoes to cover her bosom in her bid to catch the public’s attention to stop eating meat.

Cruz, who stopped eating meat at the age of 15, said “For me, being vegan is not about the diet. It’s really about my love for all creatures. In addition to saving countless animals every year, the health benefits of a vegan diet are countless, whereas the consumption of animal-derived foods has been linked not only to heart disease and cancer but also multiple sclerosis and osteoporosis.”

In the latest ad, shot by renowned photographer Niccolo Cosme, PETA once again hit at the meat industry. The group said the industry employs “immeasurable cruelty” to animals raised and killed for meat, dairy products and eggs, adding that meat and dairy production can take a toll on a person’s health as well as on the environment.

“Animal grazing has been responsible for loss of topsoil and eventual desertification in many parts of the world. The animals destroy the land’s protective vegetation. Then wind removes the soil and converts formerly productive rangeland into desert. Forest lands in China and South America are being destroyed to clear space for grazing or to grow food for farmed animals,” PETA said.

Cruz said she became vegetarian after shooting a shampoo commercial in Palawan years ago. She recalled, “All the animals were just roaming free. All I had to do was feed one of them and say, ‘Natural!’ We kept doing that, take after take… I couldn’t support the meat industry anymore. Not after that.”

The singer-actress was also declared as the Philippines’ Sexiest Vegetarian in 2009. Other local famous vegans are Chin-chin Gutierrez, Yasmien Kurdi, and Alicia Mayer.

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DTI intensifies awareness campaign on benefits of FTAs

Roy — Wed, 30 Mar 2011 04:24:19 +0000

The Department of Trade and Industry said that many among our exporters are not really aware of the trade opportunities under the country’s free trade agreements (FTA). That is why it is intensifying its information awareness campaign focusing on the government’s priority exports.

Gregory L. Domingo, DTI Secretary, said that the basic information awareness campaigns from March to November this year will focus on sectors such as motor vehicle parts and vehicles, food, garments and textiles, minerals, coconut products, construction and related materials, wearable, home style and IT/BPO. “More targeted information sessions will enlighten our businessmen to engage or expand their business according to what is viable in our FTA markets,” he said.

The trade secretary stressed that by understanding emerging and new markets, as well as instruments such as the FTA, will help exporters address new challenges in the global business environment. For 2010, the Philippines achieved a record of over $51 billion in export revenues.

At present, the country has FTAs with ASEA, China, Japan, Korea, Australia and New Zealand. An FTA with India is already in the work and due for implementation on the last part of the year. On March 31, a second round of information sessions targeting specific sectors will be launched at the Philippine Trade Training Center (PTTC).

Domingo said export companies have not yet fully utilized the FTAs “because businessmen are not properly informed of the business opportunities that the country has gained from our FTA.” Last year, the agency was able to conduct information campaigns in 11 cities, benefitting some 2,000 businessmen.

International Trade Undersecretary Adrian S. Cristobal Jr. said, “Exploring the FTA markets is one of our core strategies to increase our exports over the next six years and sustain its steady growth. He said that this year’s sectoral sessions will include presentations on market opportunities, including non-tariff measures, in the country’s FTA markets; tariff rates on top exports for each sector under the FTAs, rules of origin, open forum, as well as business testimonials from those who have benefitted from FTAs.

“The FTAs are strategic tools or pathways for growth and competitiveness. Not only do these open markets for our goods and services, but they also compel us, as a people to take a hard look at our economic structures and implement the much needed reforms to put our economy in step with the global environment,” he added.

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NSO to conduct survey on businesses establishments

Roy — Mon, 28 Mar 2011 07:13:56 +0000

A survey of the businesses in the Philippines will be conducted by the National Statistics Office (NSO) this year. The project called, the Annual Survey of Philippine Business Industry (ASPBI), will start as soon as the NSO personnel have finished with their training for the conduct of ASPBI, according to NSO-Cordillera Regional Director Olivia Gulla. The aim of the survey is to get the statistical data on the activities of business establishments here in Cordillera.

Gulla said they have just finished with their second level of training. Participants for the training were regional and provincial statisticians and statistical census officers. After their training, they will then, in turn, train those who will be involved with the ASPBI survey in their respective provinces.

NSO Statistician III Jean Floirendo said, the ASPBI survey aims to determine regional revenues or income of business establishment in the region. This would help in determining the productivity and value added indicators of the business industries not only here in Cordillera but to all parts of the country.

Floirendo, who was assigned by the NSO central office to conduct the said training, called on all business establishments in the region to support the said survey, and assured respondents to the survey their reply will be treated with utmost confidentiality.

The questionnaires for the said survey will be distributed on April and the collection of data will commence on May. Among the data involved in the survey are the number of establishments, number of employment generated, compensation each establishment pay their employees, the revenue and the cost of operating such business.

Based on the last completed ASPBI survey done on 21,040 business establishments nationwide, which have employed 20 or more workers, they have provided employment to about 2.74 million Filipinos nationwide, which also provided a total revenue to the government of about P6.9 Trillion.

The manufacturing sector also got the most part of the pie with 21.9 percent of the total establishments surveyed, followed by the wholesale and retail sector with 19.5 percent, followed by the hotel/restaurant and education sector, with 14 and 13.6 percent, respectively.

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Philippines bans chocolate milk from Japan

Roy — Fri, 25 Mar 2011 02:22:58 +0000

The country temporarily bans chocolate milk products from Japan after the March 11 earthquake, although it was just a verbal order issued by Bureau of Animal Industry (BAI) Director Efren Nuestro. Philippines joins other countries like Russia, Canada, Australia and Singapore, among the list of countries which banned Japanese food imports as radioactive steam wafted anew from the Fukushima Dai-chi Nuclear Power Station.

Nuestro said that a formal order is already being drafted canceling a previous clearance for the import of Japanese chocolate milk products. “We will recall the veterinary quarantine clearance for chocolate milk products that were shipped into the Philippines after March 11.”

Together with the BAI, the Bureau of Fisheries and Aquatic Resources (BFAR), would screen animal-based products from Japan for abnormal radiation levels and recommend the suspension of the importation of suspect items. The two agencies are both under the Department of Agriculture.

A random sampling of mackerel from Japan would be conducted to determine if they have a high radioactivity level, said BFAR Director Malcom Sarmiento. According to him, the country imported 4,000 tons of mackerel from Japan last year for food processing.

Quarantine officer Rico Capulong said that the Philippine custom authorities are also keeping a close watch on any imports from areas of Japan that were close to the stricken nuclear plants. “Not all parts of Japan were affected. There are certain areas that we are concentrating on,” he said.

Meanwhile, three United Nations agencies issued a joint statement in Geneva, pledging their commitment to “mobilizing their and expertise” to help Japan, noting that “food safety issues are an additional dimension of the emergency.”

The three agencies, International Atomic Energy Agency, World Health Organization, and the Food and Agriculture Organization, said Japan was taking the right action. “Food monitoring is being implemented, measurements of radioactivity in food are taking place and the results are being communicated publicly,” the three agencies added.

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BSP said banking system in the country is stable

Roy — Mon, 21 Mar 2011 07:52:31 +0000

The Bangko Sentral ng Pilipinas (BSP) said that despite the closure of Banco Filipino Savings and Mortgage Bank last week, the country’s banking industry remains sound and stable. BSP Governor Amando M. Tetangco Jr. said they have not monitored any negative impact on the banking industry sine Banco Filipino was ordered closed by the Monetary Board (MB) last March 17.

“As we said in our statement, the banking system remains sound and stable. We have not observed any negative impact on the rest of the banking system,” he stressed.

Monetary authorities believe that 2010 was a banner year for the Philippine banks contributing largely to the country’s stronger-than-expected economic growth. Bank deposits went up by 9.8 percent to P5.1 trillion last year while banks’ loans posted a double-digit growth of 11 percent to P2.314 trillion as of January.

Income of Philippine banks doubled to about P4.1 billion as of end-June last year from P20.5 billion as of end-June 2009. The total assets of the banking system rose by 7.2 percent to P6.7 trillion as of end-September last year from P6.2 trillion as of end-September 2009.

The BSP reported that the banking system posted a capital adequacy ratio of 15.23 percent on solo basis and 16.21 percent on consolidated basis as of end-June last year. This ratio was well above the 10 percent minimum requirement of the BSP and the 8 percent standard ratio of the Basel Accord.

The implementation of BSP Circular 639 or the implementing regulation on the International Capital Adequacy Assessment Process (ICAAP) this year would further strengthen the country’s financial sector. And to add to that, BSP also raised the minimum capital requirement for new entrants in the banking industry to boost their competitiveness and further strengthen the country’s banking system.

From the P325 million, the BSP raised the minimum capital requirement for thrift banks to P1 billion for those with head offices in Metro Manila. For those whose head offices are in Cebu and Davao, the capital requirement was raised from P52 million to P500 million. In other areas, minimum capital requirement for thrift banks was also raised to P250 million from P52 million.

This capital requirement will be implemented on new thrift banks, those converting their existing banks to a thrift bank, and those relocating their head office in areas of higher classification.

The minimum capital requirement for rural banks was also raised by BSP last November. For those with head offices in Metro Manila, it is now P100 million from the previous level of P26 million; for those whose head offices are located in Cebu and Davao, it was increased from P13 million to P50 million. Those in municipalities belonging to first to fourth class, it was raised to P10 million from P6.5 million, and those in the fifth to sixth class municipalities, it was raised P5 million from a previous P2.6 million.

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Coffee Fund to finance coffee production to be set-up

Roy — Sun, 13 Mar 2011 16:36:46 +0000

To meet the local coffee demand of 64,000 metric tons (MT), a Coffee Fund to finance production is being set up by the Land Bank of the Philippines and (LBP) and coffee grower Corporate Holdings Management Inc. (CHMI).

President Noel S. Gonzales of CHMI said, “Any business will not survive without funding from banks. We can’t finance 100 percent of the equity for our production which is why we’re setting up a Coffee Fund with Land Bank for the Industry.” CHMI is now the largest coffee grower in the Philippines with 200 hectares of coffee plantation.

The template for financing coffee production being set up by CHMI with LBP will standardize financing for the coffee industry, according to Gonzales. He said this will attract commercial banks and other financiers to accommodate coffee growers. Usually, they veer away from this because of the industry’s many inherent risks, like calamity threats, production inefficiencies, and lack of markets.

Gonzales also said that there must be a guarantee loan fund to be set up by the government for agricultural production. “We will also need a guarantee from the government so that banks will lend without collateral. The government can guarantee 85 percent of the loan. The rest is still taken as a risk,” he said.

For its part, LBP, through its vice-president Liduvino S. Geron, said they have a mandate to prioritize agricultural production, especially coffee. “Among the crops, coffee is the nearest to Land Bank. It’s one of the high value crops. We have launched the Food Supply Chain program to promote value chain financing. We’re trying to link producers with millers, processors, and markets, and we’ll provide loans for these. We are prepared to finance post harvest, irrigation, transport, and warehousing facilities to ensure the produce and commodities reach markets.”

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Learning foreign exchange trading

Roy — Wed, 23 Feb 2011 05:53:41 +0000

Entrepreneurs who know the in and out of the lucrative foreign exchange business are making a killing. If you have the money and time to invest, you might want to consider investing in foreign exchange too. Just in case you do not know anything about the business, there are many online sources that can teach you the rudiments of the industry.

One company, the iFOREX, recently just launched a unique education program, the main target of which are those who has no or little experience in the foreign exchange industry, or Forex. One of the leading online trading company, iForex wants to broaden its reach by teaching more people on online currencies trading.

Learning the Forex trading business can be easily learned by iForex’s educational packages, which includes a one-on-one training session.

However, iForex isn’t limited to newbie traders alone, because they have been providing state of the art service to intermediate and professional traders as well. Anyone can be among those who are gaining in this industry. If you believe that foreign exchange trading is for you, and to learn more about iForex, its services and tutorials that are customized into over languages, you can visit their website at www.iforex.com

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Sitel offers more job for Filipinos

Roy — Fri, 05 Nov 2010 16:19:47 +0000

Because of securing a contract with new clients, and with their existing clients also expanding the services that they outsourced to them, business process outsourcing firm (BPO) Sitel will hiring 4,000 more new employees for its Manila and Baguio Sites.

Sitel recruitment director Joan Laquindanum said they have opened as many as 4,000 positions in one go, to support the new and existing clients’ requirements.

And because of the demand for BPO employees very high, thanks to the continuing development and growth of the outsourcing business in the Philippines, Sitel provided “attractive compensation and benefits packages” to its employees. Among those perks is their in-house pharmacies where employees can order medicine and supplements on a non-cash basis.

Laquindanum said that their employees are enjoying generous leave entitlements, as well as health, life, bereavement and retirement insurance plans. “Our bereavement benefits are extended to all family members of associates, considered the first in the industry. As we continue to grow, giving only the best to our associates is a welcome challenge for Sitel,” she added.

The hiring officer also said that the 4,000 hiring requirement is just the start, and it would be followed by even more job openings in the future as they also planned to expand its operation the Philippines further.

At present, Sitel has 11 sites in the country which provide services such as acquisition and sales, back office, collections, customer care and technical support. The company’s Philippine site serve customers in North America, the United Kingdom, Australia and New Zealand. They support English, Mandarin, Cantonese and Spanish languages.

The Business Processing Association of the Philippines (BPAP) said the outsourcing business could be a $20-billion industry by 2016 with continued concerted industry effort and strong government support. The organization said that in its “IT-BPO Road Map 2011-2016: Driving Global Leadership,” adding that by 2016, the industry could be employing as much as 900,000 call center workers.

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Business name registration now only takes 15 minutes

Roy — Wed, 20 Oct 2010 14:35:06 +0000

From the usual two days processing time, the amount of time spent in registering a business name has been cut to only 15 minutes because of the enhanced Electronic Business Name Registration System (eBNRS).

Trade Secretary Gregorio Domingo said, “The entire transaction will only take around 15 minutes. The actual processing takes only three minutes and the waiting time usually takes 10 minutes. So it’s really the waiting that makes the transaction time long, but still it’s only 15 minutes.”

The Department of Trade and Industry (DTI) conducted a random time-and-motion study in different parts of the country. In their study, Metro Manila averaged 278 business name applications in a day with a total processing time placed at 14.35 minutes. In areas where there were fewer applications, the average transaction time were even shorter, ranging from 5 to 12 minutes.

Aside from the faster registration of business name, the eBNRS allows the registration of the all the branches of a company in just one sitting, and the registration of a business in a different locality in the DTI office nearest the business owner. “The new system gives businessmen less hassle in doing business in the country. Our aim in automation is to lessen people handling the process and allow technology to hasten transaction. In a way it makes government transaction transparent and prevents corruption in the workplace,” Domingo said.

The system will also be made available online, according to the secretary. Aside from the eBNRS, Domingo said that the DTI is also working on the Philippine Business Registry (PBR), which is a one-stop shop for businesses that want to get mayor’s permit, and registration and licenses from the DTI, Securities and Exchange Commission (SEC), and other agencies. The system will also be made available for the application of Pag-Ibig, Social Security System (SSS), and Philhealth benefits.

“Business won’t have to go to each of the agencies in order to register. It’s still under development because we don’t want any glitches to happen once we launch it. We’re hoping to finish this before the end of the year,” Doming said.

This is really a good motivation for entrepreneurs and would-be entrepreneurs.

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The Plans of the Administration

PinoyBusiness — Thu, 23 Sep 2010 15:44:57 +0000

The government especially Mr. President Benigno Aquino III is like answering the call of the business industry. It is good news for the business industry that the President will be also focusing on the business field. Well what can we all expect from a President that is a economist before?

The President have many plans of how can our economy can rise up. The Department of Finance said that the President decided that not to increase the taxes but to improve the collection. The government also try to build a simplier businessname registration by the end of this year and will be known as Philippine Business Registry.

Housing, electronics agribusiness, mining and specially tourism. Those are the sector that will be given a improvement by the government. The tourism is the surely the most that will be given a improvement by the government the administration said that President Aquino’s target is 6 million tourist a year. They said that it can create many jobs that can help the Filipino citizens. The Department of Tourism said that they are looking for improving popular tourist destinations and can attract tourist from India, China, Russia and some part of Middle East.

All of this plan of the administration can be good for the future of our country so lets hope that it can be done by this administration.