Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 12625

A co‑working space especially for ‘designpreneurs’ in New Manila

Swatches are important for every kind of artist. Those who work with paints and colors can get palette samples and inspiration from everywhere, and there are online tools that can pull palettes from photos. Those who work with cloth can easily get swatches from retaso and from their neighborhood cloth shop.

Those who work with tiles and paneling however might have a more difficult time in getting swatches. Presenting photos from the internet to your client just won’t do when you’re proposing to redesign a studio condominium. You have to show them the actual material, let them feel a sample of their future home.

That’s where Paperwork PH comes in. A co‑working space in New Manila, easily accessible by any jeep passing by E. Rodriguez Sr. Avenue, it provides its customers access to a library of material swatches and product catalogues that they can use as inspiration, present to their clients, and avail with the help of the Paperwork staff. They have a smorgasbord of materials available, from lighting fixture, furniture and fittings, to different kinds of flooring, panelling, wallpaper and surfaces. You can check out their library online, but this is one of those cases where feeling, not just seeing, is believing.

Paperwork also doubles as the office of PaperSpace, a design consultancy company founded by designers from three Southeast Asian countries: Karen Calalec from the Philippines, Sombat Ngamchalermsak from Thailand, and Narita Cheah from Singapore. “The three of them met and worked together in Singapore,” Janine Jayme, general manager for Paperwork PH, told SparkUp. “They got together and formed PaperSpace. It’s our core business, a design consultancy, and it has offices in Singapore, Bangkok and the Philippines. This happened February last year”

“What happened was they needed a physical office and thus we had Paperwork,” Jayme continued. There are currently two Paperwork branches—Bangkok and New Manila—and a future branch in Singapore that will open this March.

“What makes us different from other co‑work places is that we’re for designpreneurs,” said Jayne. “We have a materials library from all our suppliers. We get preferred rates from those suppliers so if you’re a member here—that means that you have a monthly subscription—you have access to our design library and we can help you get preferred rates from our suppliers. Our suppliers are regional.” An individual or starting designer would have difficulty procuring samples otherwise. They can be expensive, and suppliers might be less enthusiastic in dealing with individuals compared to companies that can buy materials in bulk.

There’s an additional perk for freelancers and fresh graduates. “Our partner architects and interior designers love to mentor, and they encourage freelancers, fresh grads and those taking their practicum to go here,” Jayne explained, adding that Calalec enjoys guiding students. “She loves to mentor people… she has the patience to sit down with students and explain the whole design process.”

“We encouage collaboration,” Paperwork Digital Marketing Manager, Arturo Navarro told SparkUp. “Our tagline is ‘make ideas come to work’. For PaperSpace it’s ‘do what you love with people you trust.’” Paperwork refers their tennants to each other to grow the community, with the advantage of connections to other Paperwork and Paperspace branches.

Even the Paperwork office was made through collaboration. Most of the furniture in the space are also from the suppliers Paperspace uses. If a designer or a client wants to use the furniture in Paperspace in their project, then they can buy it through the co‑working space.

The art in display in Paperwork (this January they have the black and white photography of Marlo Roxas) is also for sale. “We’ve sold a few of her works, and we’re bringing her exhibit in the opening of the Sigapore branch.”

“If you’re with us, we will see your potential, and we can see if you can work with our regional offices as well.”

Renting a space at Paperwork costs ₱500 per day, with full internet access and unlimited coffee, or ₱6000 per month. They also have meeting rooms, virtual offices, and workshop venues for rent.

For more information, email Paperwork at info@paperworkph.com or check out their facebook page fb.com/paperworkph

COMPETITION ALERT: IdeaSpace mounts competition for tech startups

Business incubator and accelerator IdeaSpace Foundation, Inc., is looking for tech startups to be part of its annual startup competition.

Now on its sixth year, the IdeaSpace National Startup Competition aims to help potential tech‑based enterprises grow by providing them with resources such as funding, mentorship, and other operational needs. It was formed to “develop innovation and entrepreneurship as a pathway to economic development,” Goldy Yancha, IdeaSpace associate director, told SparkUp in an interview. “We want equitable opportunities, more capable and to be able to support competent teams,” she added.

The competition draws about 300 applicants every year. Since its launch in 2012, the foundation, through the annual tilt, has supported a total of 68 startups, among which are full‑fledged enterprises such as Cropital, Pinoy Travel, Fetch, Investagrams, Cleaning Lady, and FrontLearners, to name a few.

In screening applicants for 2018, Yancha said IdeaSpace will look into applicants’ unique and innovative technology, business model, market demand for the product or service and clear customer pain point, as well as their ability to integrate and scale in different industries such as telecommunication, healthcare, agriculture, media, mining, and manufacturing.

“We want to see more of teams that are able to build strong, sustainable startups. We’re still at multi‑industry, we’re still at multi‑stage,” she said. “We want to have teams that have the gritt, the execution quotient, and also their startups incorporated in their long‑terms plans.”

The contest, which will run from February to October this year, is consists of four rounds. The top 100 teams out of all that submitted applications will be selected in the initial round and present a two‑minute video pitch. The list will be trimmed down to 50 teams and undergo interview with IdeaSpace’s board of trustees in the following round. In the third phase of the competition, the participants will be further narrowed down to 20‑30 teams, which will join a five‑day boot camp and a six‑week incubation, and will receive ₱50,000 apiece.

In the final round, successful incubatees will demonstrate their final products and business models. From then the top 10 winners will be picked.

Just like in the previous years, winners will receive equity‑free funding worth ₱500,000, on top of other prices such as housing for those living outside Metro Manila, office space,  communications software, legal documentation, and mentorship from Asian Institute of Management and industry leaders, including executives of Hong Kong‑based First Pacific Co., Ltd. (First Pacific).

Deadline of application is on February 2. Interested applicants may visit IdeaSpace’s website and fill‑up the application form.

IdeaSpace is supported by First Pacific, Metro Pacific Investments, PLDT, Meralco, Philex Mining Corporation, Smart Communications, Maynilad, Makati Medical Center, and Riverside Healthcare.

One of First Pacific’s three key Philippine units PLDT, Inc. Hastings Holdings, Inc., is a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., that has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Economy expands at 6.6% in fourth quarter, 6.7% in 2017

The Philippine economy posted 6.6% gross domestic product (GDP) growth in the fourth quarter, the Philippine Statistics Authority (PSA) reported this morning.

The October-December outcome was lower than the previous quarter’s upwardly revised 7%, but was the same pace as the growth recorded a year earlier.

This brings growth in 2017 to 6.7%, matching the median estimate in a BusinessWorld poll last week, and was near the low end of the government’s 6.5%-7.5% target band for 2017.

Service sector — which contributed 47% of GDP last quarter — propped up growth after rising by 6.8% from 7.2% in 2016. The industry sector also grew by 7.3%, slower than the 7.9% recorded in the same period last year.

Output in the agriculture sector rose by 2.4%, a turnaround from the 1.3% contraction in the last quarter of 2016.

On the expenditure side, household spending rose grew 6.1% during the period, slightly lower than the 6.2% recorded in the fourth quarter of 2016.

Government spending was also up by 14.3% from 4.5% while capital formation expanded by 8.2% from 14.7%.

Exports of goods and services rose by 18.6%, faster than 2016’s 13.4%, while imports grew by 17.5% from 15.4%.

Gross national income – the sum of the nation’s GDP and net income received from overseas – registered a growth of 6.2% in the last quarter of 2017 from 6% previously. — Christine Joyce S. Castañeda

A game-changing cancer treatment

Parkway Cancer Centre in Singapore’s Dr. Richard Quek talks about cancer immunotherapy

Cancer is one of the greatest causes of health burden all over the world. According to the World Health Organization (WHO), it is the second leading cause of death globally, and is responsible for an estimated 9.6 million deaths in 2018. The health agency noted that the economic impact of cancer is increasing. In 2010, its total annual economic cost reached approximately $1.16 trillion.

For Dr. Richard Quek, a senior consultant specializing in Medical Oncology at Parkway Cancer Centre in Singapore, the cancer survival rate today is continuously improving with the advances in diagnosis and treatment options.

“The survival rate has improved,” Dr. Quek said. “There are many reasons behind that. Number one, medical reasons — you have better treatment now and better facilities in terms of surgery, radiation and medication. Second, we are better at detecting cancers. So when you detect it early, you have a better chance; you can get better treatment.”

One of the remarkable breakthroughs in treating cancer today, according to Dr. Quek, is the use of immunotherapy. It is a type of cancer treatment that helps the immune system fight cancer by boosting the body’s natural defenses — just like it would with a germ or virus.

Immunotherapy may work by stopping or slowing the growth of cancer cells, stopping cancer from spreading to other parts of the body, or helping the immune system work better at destroying cancer cells, among others.

“If I take out a patient’s tumor — and put it on my own body — the cancer will never grow because [my] immune system can get rid of it. Because the tumor is seen as foreign to me, it is not mine… However, that same cancer in that particular patient is not seen as foreign — the cancer is able to evade the immune system of the patient, thrive and grow,” Dr. Quek said.

Dr. Quek, however, noted that the immune system cannot be overly strong, it has to be well-controlled. In cases of an overactive immune system, the body attacks and damages its own tissues that can result in various autoimmune diseases like lupus and rheumatoid arthritis. On the other hand, a weak immune system will leave the body vulnerable to illnesses, including colds, flu, and other infections.

“So to me, immunotherapy is a huge breakthrough in this modern era. Immunotherapy is very promising, and melanoma is leading the way because it’s the first cancer to start with this treatment,” Dr. Quek who has also special interests in the management of melanoma, sarcoma, gastrointestinal stromal tumor (GIST) and lymphoma.

Despite the significant developments in understanding, prevention, and treatment of cancer, Dr. Quek believes that there is still tremendous opportunity to move the field further.

“We have not been able to cure and eradicate all cancers, yet we can prolong and control the disease. I think there are a lot of opportunities for development and improvement on what we have achieved today but it would require a lot of collaboration with all parties involved including clinicians and scientists. Without collaboration, it’s impossible to move the field forwards,” he said.

In terms of modern cancer care, Dr. Quek said that Artificial Intelligence (AI) may play an important assisting role to the doctor in treating patients with cancer but it would be much longer for AI to completely replace humans.

“I think that AI, in time to come, may take on and maybe even replace human doctors. But it would be some decades away before it can replace oncologists,” Dr. Quek said. “AI is impersonal. While cancer is a disease with a deeply emotive human aspect to it in addition to just treatment. The human aspect is the patient and their family.”

For cancer patients, Dr. Quek has a message worth pondering on: “Cancer can be prevented. Cancer can be detected early. And if a person has cancer, it’s not the end of the world because there are good treatments available. A lot of patients have cancer, and a lot of patients are survivors.”

For more information about cancer, please subscribe to http://ph.parkwaycancercentre.com/news-articles/health-news/.

HealthNews is a monthly publication by Parkway Cancer Centre Singapore.

In the Philippines, Parkway Cancer Centre Singapore are represented by CanHOPE Manila. They act as a link with direct access to the Singapore team providing integrated care throughout a patient’s journey.

For information on the centre and their services, please email canhopemla@gmail.com and visit CanHOPE Manila on Facebook.

​Bustling and burgeoning

Western Visayas, the most populous region in Visayas, is a major economic contributor to the country. In 2016, the gross regional domestic product (GRDP) of the region grew by 6.1% from P305 billion to P324 billion, the sixth highest amount nationwide.

Though the pace of growth was slower than in 2015, when GRDP increased by 8.8%, Ro-Ann A. Bacal, Region VI director of National Economic and Development Authority, noted in a press conference the trends in the region that signified that its economy is healthy. Among these were the declines in inflation and underemployment, and increases in employment, exports and tourist arrivals.

The business process outsourcing industry (BPO), Ms. Bacal added, remained one of the region’s major job generators. A total of 47 BPO offices were set up in 2016, and together they employed about 21,500 people. Also that year, the industry posted $22.6 million in revenue, exceeding the 2015 revenue of $22.4 million.

Western Visayas is doing well as a whole. But Iloilo and its namesake capital city are the ones making decidedly significant splash. A quick scan of the corporate and economic news of the past few years suggests that the province and the city are increasingly attractive to both local and international investors.

On the BPO front, some of the country’s top real estate companies are aggressively building offices in Iloilo City. Last year, it was reported that Andrew L. Tan’s Megaworld Corp. was going to spend P5 billion to put up four to five buildings within the next three years in the Iloilo Business Park it has developed. This would increase the total office space inventory of the mixed-use development to 100,000 square meters (sq. m). By the time the report was released, the park had an office space inventory of 45,000 sq. m.

“During the last three years, we have experienced a spike in the demand for office spaces in Iloilo Business Park. Thus, we expedited the construction of our first four towers and we have decided to build more to see the demand,” Jericho P. Go, senior vice-president at Megaworld, was quoted as saying in news reports.

Adding those buildings would also allow the park to accommodate more BPO workers. In 2016, it was catering to about 15,000 office workers from seven BPO companies. “We continue to see a bright prospect in Iloilo’s BPO industry. Several companies, most of them are first-timers in Iloilo, want to come in and expand here,” Mr. Go said.

According to the real estate consultancy firm Colliers International, BPO firms were driving demand for office spaces in the city. “The government thrust to promote the province as a major investment hub in the Visayas, coupled with the planned projects of the country’s major developers, provides a positive outlook for Iloilo. Companies such as iQor, WNS, Nearsol, and Yazaki Philippines EDS Technoserve took up spaces last year and started operations this year,” Colliers said in its second-quarter provincial property report released last year. Apart from Megaworld, the property developers operating in Iloilo include Ayala Land, Inc., SM Prime Holdings, Inc. and Robinsons Land.

In the 2016 Cities and Municipalities Competitive Index, developed by the National Competitive Council of the Philippines, Iloilo City ranked eighth among highly urbanized cities. “Thus, the provincial city has remained in the radar of foreign BPO investors. The number of educational institutions has also made Iloilo a center for learning in the Visayas region and consequently a viable area for companies to locate in,” Colliers said.

The firm noted that rental rates were among the things that attracted investors. Last year’s second-quarter rates ranged between P250 to P550 per sq. m. “This price is quite attractive for BPO tenants, especially for those looking for alternatives to Metro Manila and Metro Cebu,” it added.

Iloilo did not go unnoticed by foreign investors. In May of last year, 14 businessmen from China went on a four-day mission to Iloilo — particularly the capital and other parts of the province — to study investment opportunities in human resource training, tourism and the BPO sectors. “My purpose of coming over is for business tourism and human resources development training,” Danny Chou of Ambrose Financial Services (H.K) Ltd. was quoted in a BusinessWorld report, adding that his company was also looking at opportunities in the BPO industry and the field of English-language training.

Meanwhile, Mike Moon, trade and investment director at the British Embassy, told a reporter of this paper last year that the British Ambassador to the Philippines Daniel Pruce had visited Iloilo to assess the possibility of supporting development projects.

The Department of Trade and Industry announced in September of last year that an American outsourcing company for clinical services was expanding its operations in Iloilo City this year in order to meet growing customer demand. This expansion by SHEARWATER Health would raise the company’s investment in the country to $7 million and the number of staff to about 3,000.

An economic zone may soon materialize in Iloilo, which will undoubtedly boost the province’s reputation as an attractive investment destination. Last year, a feasibility study conducted by the University of Asia and the Pacific showed that building an ecozone in the province was a viable proposition. “The indicators show that it is sustainable to put up an economic zone in the province considering that it has an adequate water supply, has a port that can be expanded, enough power supply, stable peace and order, and availability of manpower,” Gov. Arthur Defensor, Sr. was quoted in a BusinessWorld report.

Tasting the heart of Iloilo

More than being the province geographically located at the center of the country, Iloilo has been aptly dubbed as “the Heart of the Philippines” for many reasons.

Even before the Spanish colonial period, Iloilo has been a center of trade, and its city’s vibrant economic activity remains to be unparallelled even up to this day. As a result, it has been hailed as “one of the fastest rising cities” as well as the “second most competitive city” in the country as some media reports stated.

Apart from trade and commerce, the heart and soul of the province is further reflected with its rich history and traditions that Ilonggos continue to uphold.

As a testament on how Ilonggos champion their traditions, they hold various festivities. Thus, Iloilo has been dubbed as the “Province of Festivals.”

These events are being staged almost each month of the year — highlighting the province’s intangible assets: history, religion, cultural heritage, agricultural traditions, and of course, the local food, which almost always left someone saying namit gid! (very delicious!).

Reflecting this namit flavor for the longest time is la paz batchoy — Iloilo’s iconic dish. This noodle dish, composed of noodles, pork innards, and pork cracklings submerged in a savory broth, has long been capturing the hearts and taste buds of both local and foreign tourists alike.

Another dish that put Iloilo in the culinary map of the Philippines is pancit molo, which is a symphony of warm soup with pork and shrimp wonton dumplings.

Iloilo is also known for its sweet delicacies, notably the biscocho, a baked bread lavishly coated with butter and sugar. Other treats including pinasugbo (sweetened fried banana slices) and barquillos (thinly rolled wafers). This liking to sweets perhaps extend to the innate sweet personality of Ilonggos, which they have been known for.

While these dishes and sweet treats are the flavors that has long defined Iloilo, the province has more gustatory experiences to offer as reflected in various festivals dedicated to celebrate the bounty of their land, and how food unites the Ilonggos.

Just last year, Miagao municipality in Iloilo held its first Talong (eggplant) Festival, which celebrates the town’s thriving eggplant production. On the other hand, every May in the town of Pavia, Iloilo’s Carabao-Carroza Festival, is celebrated. Known as the longest existing festival in the province, the event is a parade of carabaos in colorful carrozas showcasing the town’s abundant local produce.

In July, one of the most anticipated festivals throughout the year continue to draw a crowd — the Lechon Festival. The famed festival gathers the townfolk of Balasan to celebrate food and culture while feasting on generous servings of roasted pig. This annual festival is known to have continuously encouraged oneness in the community.

Most would conclude that a trip to Iloilo is a gustatory delight. The vibrant local food scene added to the rich stories behind heritage sites, thriving economic activity, and the charm of Ilonggos, Iloilo is pulsating with life and continues to be a major vein that pumps life to the heart of Philippines. — Romsanne R. Ortiguero

The beacon of Western Visayas

From being once called the ‘sick man’ of Asia to adopting its new title of ‘rising tiger’, the Philippines has accomplished a lot in the span of half a century, economy-wise to say the least. Successfully achieving economic growth that rivals that of China, the country now faces some new problems. How do you sustain such a powerful momentum? Or more importantly, how do you distribute this newfound wealth equitably throughout the country’s many regions?

One solution put forth by experts and politicians is the decentralization of economic activity. Currently, the National Capital Region, and to some extent Region IV-A, continue to account for a majority of the Philippines’ gross domestic product (GDP). The other 15 regions combined accounted for less than half or 46.5% of the country’s GDP in 2016 according to the Philippine Statistics Authority. Clearly, there is a wealth of untapped potential in establishing new centers of growth elsewhere.

The province of Iloilo in Western Visayas stands ready to face the challenge. As one of the most accessible provinces in the Philippines, Iloilo can serve as a gateway to Visayas through its sea and air ports.

The Iloilo International Airport, the primary gateway to Iloilo, is the hub of regularly scheduled direct domestic flights to and from Manila, Cebu, Davao, General Santos, Puerto Princesa, and Cagayan de Oro. The airport also serves international flights from Iloilo to Hong Kong and Singapore. As the fourth busiest airport in the Philippines and the first airport in both Western Visayas and Panay island to be built to international standards, the Iloilo International Airport plays a huge role in the economic viability of the region, allowing Iloilo to become the trade and commerce hub of the Western Visayas region. Further development could see it become an international gateway to the country.

Meanwhile, the Iloilo seaports include ferry terminals along the Iloilo River in Lapuz district, fastcraft ferries from Bacolod, RORO ferries from Guimaras, and ferries from Palawan. The Iloilo Domestic Port in Fort San Pedro, Iloilo City Proper also serves shipping companies with routes from Manila, Cebu, Cagayan de Oro, and Zamboanga. The Port of Iloilo is even considered the leader of trade and a commercial hub for Western Visayas as it is one of the safest natural seaports in the Philippines.

Due to its strategic location, easy access, and developments in infrastructure, Iloilo’s economy is one of the most competitive in the country. For most of Western Visayas, Iloilo City stands as the center trade, commerce, finance, technology, medical tourism, hospitality, real estate, tourism, education, and industry. The politically independent highly urbanized city is home to various booming industries, such as the business process outsourcing (BPO), banking and finance, and retail industries. Notably, the popular food chain Mang Inasal is headquartered here.

Towards Iloilo’s northern parts, a strong fishing industry flourishes, owing to the bountiful fisheries of the Visayan Sea. Additionally, Iloilo’s agri-industrial central regions produce a wide array of agricultural products such as corn, rice, bananas, sugar, and pineapples among others as well as high-end crops.

Working the region’s many thriving industries are the vibrant and well-educated Ilonggos. In support of the province’s future growth, Iloilo is home to numerous schools and colleges, as well as ten major universities, eight of which are based in Iloilo City. These include the Central Philippine University, University of San Agustin, University of the Philippines Visayas, West Visayas State University, and the Iloilo Science and Technology University.

The abundance of skilled and literate workers have contributed to the rise of Iloilo’s BPO industry, and has spurred the employment rate and economic growth of the region. The rapid development of the industry in Iloilo City prompted the Department of Science and Technology-Information and Communications Technology Office and the Business Processing Association of the Philippines (BPAP) to name it as one of the Philippines’ next wave cities, recognizing its capacity to host information technology-business process outsourcing companies due to the availability of talent and relevant infrastructure.

This is proof of the province’s potential to become a beacon of economic growth. With a little more encouragement, Iloilo can give a lot more. — Bjorn Biel M. Beltran

S&P watching if tax reform will deliver

By Elijah Joseph C. Tubayan
Reporter

TAX REFORM’s ability to deliver additional revenues that will fuel the government’s P8-trillion infrastructure development program until 2022 remains a key factor in assessing Philippine economic prospects, an analyst of S&P Global Ratings said yesterday, even in the face of mid-term elections next year that could make lawmakers wary of legislation that could prove unpopular.

“So we’re looking at how much new revenue will be generated by the TRAIN and whether or not execution and implementation is there,” Andrew Wood, associate director at S&P for sovereign and international public finance ratings, said in a webcast yesterday, referring to Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act (TRAIN), enacted on Dec. 19 last year.

The first of up to five planned tax reform packages, TRAIN cuts personal income tax rates and plugs the expected foregone revenues by either increasing or adding taxes on fuel, cars, coal, tobacco products, mining, sugar-sweetened drinks and some investment products, besides simplifying donor’s and estate taxation, among others.

The Finance department submitted another package to the House of Representatives two weeks ago that seeks to cut corporate income tax rates gradually to 25% from 30% currently in order to put this levy at par with those of Southeast Asian competitors, as well as to remove tax incentives from sectors that do not need them.

The government hopes to submit to Congress the remaining two to three other packages within the year, ahead of the 2019 senatorial and local mid-term elections.

“To keep this expansionary fiscal policy and if infrastructure investments strategy is on track, that’s the kind of most important thing that we’re looking at in the fiscal side into the next year and a half,” Mr. Wood said.

S&P — which like the other two key debt watchers Fitch Ratings and Moody’s Investors Service has rated the Philippines a notch above minimum investment grade — estimated 2017 Philippine gross domestic product (GDP) growth at 6.6% in a report on Nov. 28 last year, against the government’s 6.5-7.5% target and 2016’s actual 6.9%, as well as S&P’s 5.1% estimate for Southeast Asia last year.

Both Moody’s Analytics and the median of a BusinessWorld poll late last week of 12 economists put fourth-quarter 2017 GDP growth — which the Philippine Statistics Authority is scheduled to report today — at 6.7%.

S&P expects Philippine GDP growth this year to slow to 6.5% against the government’s 7-8% goal and a 5.1% projection for Southeast Asia.

“We have definitely taken into consideration the tax reform packages, but particularly the TRAIN first package. A key part of this forecast is whether or not government will be able to raise revenues in line with their much higher spending on infrastructure, health, education, etc,” said Mr. Wood.

“With the passage of TRAIN in December, the government has really gotten through probably the core piece of the tax reforms to begin with.”

The Finance department expects TRAIN to yield about P90 billion in incremental revenues this year and a total of P786.4 billion until 2022. It is also banking on Congress to approve within this quarter TRAIN’s supplemental package that will seek to raise the motor vehicle users charge, provide for a general tax amnesty and relax bank secrecy restrictions, taking the first package’s cumulative additional revenues to P130 billion this year and P969.2 billion until 2022.

The second package, which the House received two weeks ago, will be revenue-neutral — as many of the other packages will be — since the entire tax reform program primarily aims to shift the burden to those that can afford to pay more.

Still, the government expects the entire program to yield about P2 trillion in total additional revenues, or about a fourth of the planned P8-trillion infrastructure expenditures until 2022, when President Rodrigo R. Duterte will end his six-year term.

Asked if he feared for reforms’ fate as next year’s mid-term elections approached, Mr. Wood replied: “I think risks are relatively contained in the Philippines right now, particularly in the political fence.”

“It didn’t come to our radar that the 2019 elections would derail that.”

Saying tax reform implementation would be “getting to the root of the bottleneck that exists in the Philippines”, Mr. Wood said that in the “medium and long run, we also expect that to provide momentum to the Philippines.”

“In the near term, it’s more in the expansionary fiscal policy and how that translates to higher growth, so were looking at that as a positive development right now.”

Expectations of strong Q4 2017 growth mount

THE PHILIPPINES is expected to have clocked gross domestic product (GDP) growth in the fourth quarter of 2017 that put the full-year pace well within target, according to an assessment released yesterday.

“[The year] 2017 ended with a bang!” First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P) said in the December issue of their joint monthly report.

“With infrastructure spending soaring by 45% in November and exports still on the rise, our GDP growth forecast of 6.5-7% for the full-year 2017 appears a no-brainer,” The Market Call Capital Markets Research read.

“Accelerating infrastructure and capital outlays should catalyze faster GDP growth in Q4 and 2018.”

BusinessWorld’s poll late last week of 12 economists yielded a 6.7% estimate median for the fourth quarter that was shared by Moody’s Analytics, while Socioeconomic Planning Secretary Ernesto M. Pernia said in a mid-December yearend news briefing that he expected 2017’s last three months to have seen a pace faster than the 6.7% average of the first three quarters.

Mr. Pernia told reporters yesterday that he was “happy enough” with fourth-quarter and full-year 2017 GDP data scheduled to be released today.

The government has targeted a 6.5-7.5% GDP growth in 2017 and 7-8% annually starting this year, coming from 2016’s actual 6.9%.

FMIC and UA&P said a continued rebound in exports, higher remittances from Filipinos overseas, a low budget deficit and inflation that stayed within the central bank’s 2-4% target range provided “upward growth momentum into the fourth quarter.”

Looking ahead, Mr. Pernia told reporters that “2018… will be a bullish year because there will be a lot of projects breaking ground, so a lot of spending on projects.”

And “[w]ith the higher income for those earning below P250,000” as a result of the first of up to five planned tax reform packages — Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act (TRAIN) — that kicked in as the year began, “there will be a lot of welfare enhancement on their part.”

“The net effect is still positive for them,” the socioeconomic planning chief said, “and the heightened prices” from higher sales taxes on several items “will be temporary… it peters out over time.”

For FMIC and UA&P, inflation “may pick up pace in the first few months of 2018 amid tax reform, but should remain within the BSP target, albeit at higher end.”

“Global recovery — especially in the US, EU and China — should provide a needed boost to exports, to fuel the economy’s second engine to drive 2018 GDP growth to 7-7.5%.”

Given this macroeconomic backdrop, FMIC and UA&P expect the central bank “to respond with two rate hikes” this year after keeping monetary policy steady since an increase in policy rates in September 2014, in order “to limit inflationary expectations from exceeding its target as the TRAIN’s indirect taxes come into effect.”

IMF
Monday also saw the International Monetary Fund (IMF) — which in October last year penciled 6.6% GDP growth for the Philippines in 2017 and 6.7% in 2018 — slightly adjusting upward by 0.1 of a point from October to 5.3% its projection for 2018 GDP growth for the five major Southeast Asian states Indonesia, Malaysia, the Philippines, Thailand and Vietnam, while keeping its 2019 forecast at also 5.3%.

It also hiked its world output projections for 2018 and for 2019 by 0.2 of a point to 3.9%.

“As the year 2018 begins, the world economy is gathering speed,” Maurice Obstfeld, IMF economic counsellor and director of Research, said in e-mailed remarks on the World Economic Outlook Update. “But political leaders and policy makers must stay mindful that the present economic momentum reflects a confluence of factors that is unlikely to last for long. The global financial crisis may seem firmly behind us, but without prompt action to address structural growth impediments, enhance inclusiveness of growth, and build policy buffers and resilience, the next downturn will come sooner and be harder to fight.”

Gov’t sees growth for palay, corn this quarter

PRODUCTION of palay, or unmilled rice, in the Philippines — one of the world’s biggest buyers of the grain — is forecast to increase 5.65% this quarter because of improved yields and increased harvest area, the state statistics agency said on Monday.

The Philippine Statistics Authority (PSA) said that production in January-March will probably hit 4.67 million metric tons (MT), based on standing crop, compared with 4.42 million MT harvested in the same period last year.

“Farmers are optimistic to have better yield resulting from sufficient water supply and good weather condition favorable to plant growth,” the report read.

Palay accounted for 25.82% — the biggest chunk among commodities — of the total value of the agriculture sector’s output in the fourth quarter.

A record-high rice harvest last year of 19.28 million tons — up 9.36% from 2016, which had seen a 2.88% drop in output — helped boost growth of the Southeast Asian nation’s agriculture sector, thanks largely to favorable weather.

The country’s state grains procurement agency plans to import 250,000 MT of rice as soon as possible to boost thinning stockpiles, and the prospective deal has already raised export prices in Vietnam, a major supplier.

CORN
The same report also bared expectations that output of corn — which contributed 4.76% to the total value of farm output in the fourth quarter — will increase by 5.05% to 2.49 million MT this quarter from 2.37 million MT in 2016’s first three months.

The PSA attributed its expectation this quarter to bigger harvest areas and better yields.

Corn output dropped by 5.73% by to 1.629 MMT in 2017’s final three months (compared to a 0.15% slip a year ago), although the grain managed to grow by 9.64% to 7.914 million MT for full-year 2017, turning around from 2016’s 3.99% drop.

Unfavorable weather, limited seeds and insufficient soil moisture, however, could weigh on output next quarter, the report read. — with Reuters

Asia loses its luster in EM scorecard

BANGKOK/SINGAPORE/HONG KONG — By some measures, Mexico and Turkey come out as the most attractive emerging markets (EM) for 2018.

In a Bloomberg analysis based on a range of metrics including growth, yields, current-account position and asset valuations, the two countries score highest among 20 developing economies.

Asian economies occupy the five lowest-scoring positions, including the Philippines which placed 17th, just behind Thailand (16th) and ahead of Indonesia (18th), China (19th) and India (20th).

Mexico and Turkey scored higher because their real effective exchange rates are more competitive than the average of the past 10 years, according to the analysis.

India and China’s valuations are relatively expensive in historical terms.

Their economic growth is unlikely to be as fast as it has been in the past decade, according to estimates.

“If you are on the hunt for something to buy now, Turkey and Mexico stand out because they are relatively cheap,” said Takeshi Yokouchi, a senior fund manager in Tokyo at Daiwa SB Investments Ltd., which oversees the equivalent of $50 billion in assets.

“When political risks ease up, that’s when you want to make an entry, given their solid fundamentals and high yield.”

Turkey’s five-year government bond yields about 13%, while Mexico’s yields 7.5%. Both exceed India’s equivalent rate of about 7.3%, which is the highest among Asian nations covered by the analysis. China’s yields 3.9%.

The study covers 20 of the 24 markets making up MSCI Inc.’s Emerging-Market Index.

Greece is excluded owing to its use of the euro, while Egypt, Qatar and Pakistan are excluded because of data limitations.

The result for each is shown as a Z-score, which measures the relationship of the individual value to the 10-year average.

“Asian countries do look relatively expensive as they have been bought amid strong fundamentals in the region,” Mr. Yokouchi said. “They may not have the potential like Turkey or Mexico to rally big, but Asian currencies and assets are also likely to stay steady from here.”

The Turkish lira is the worst-performing currency against the dollar in the past six months, partly due to lingering political tension with the United States.

The Mexican peso ranked second worst amid the ongoing negotiations on the North American Free Trade Agreement.

The MSCI Emerging-Market Index of shares has rallied 79% since bottoming two years ago, outperforming the developed-market gauge’s 47% advance during the period. — Bloomberg

PNB to raise up to P20B from LTNCD issuance

THE Philippine National Bank (PNB) is planning to raise up to P20 billion by selling peso-denominated long-term negotiable certificates of deposit (LTNCD).

In a disclosure to the stock exchange, the Lucio C. Tan-owned bank said its board of directors on Monday approved the issuance of up to P20 billion peso-denominated LTNCDs in one or more tranches. The offering will still require  approval from the Bangko Sentral ng Pilipinas (BSP).

“The proceeds will be used to extend the maturity profile of the Bank’s liabilities as part of overall liability management, support compliance with required BSP liquidity ratios, and raise long-term funds for general corporate purposes,” PNB said.

LTNCDs are similar to regular time deposits which offer higher interest rates, but the difference is that these cannot be pre-terminated. Being “negotiable” means that these can be traded at the secondary market prior to maturity date.

In October 2017, PNB raised P6.35 billion worth of LTNCDs, the third and final tranche for the bank’s P20-billion long-term note offering since November 2016.

The bank reported a net income of P4.51 billion during the first nine months of 2017, a 20% drop from the P5.67 billion recorded during the same period in 2016. PNB’s earnings in 2016 included one-time gains from the disposal of foreclosed assets, and the sale of its 51% stake in PNB Life Insurance Inc. to Allianz SE, among others.

Shares in PNB fell by 0.9% or 5 centavos to P56.60 each on Monday.

1...12,62412,62512,626...13,724Page 12,625 of 13,724
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube