MRT boss defends ‘crowd control’ amid jeering riders

The head of the Metro Rail Transit Line 3 (MRT 3), which runs through Edsa, defended a recently implemented “crowd control” scheme limiting train riders to batches of 500 people at a time.
In an Inquirer Radio interview on Thursday, MRT general manager Al Vitangcol III said the measure was meant to ease congestion at the stations while promoting passenger safety.

Vitangcol, who acknowledged that the trains were operating at overcapacity, also explained that the measure would allow a more equitable distribution of riders on the 17-km elevated railway.

MRT stations are located at North Avenue, Quezon Avenue, Kamuning, Cubao and Santolan-Annapolis, all in Quezon City; Ortigas Avenue in Pasig City; Shaw Blvd. and Boni Avenue in Mandaluyong City; Guadalupe, Sen. Gil Puyat Avenue (Buendia), Ayala Avenue and Magallanes Avenue in Makati City; and Taft Avenue in Pasay City.

Due to the sheer volume of passengers, southbound trains originating from North Avenue, for example, could already reach full capacity at the fourth station in Cubao, Vitangcol noted.

Vitangcol stood firm on the measure despite mounting complaints, some of them posted on social media.

“The new MRT crowd control scheme is marvelous! Now we have to wait 15 minutes longer than usual just to board the train. Bravo!” said a Twitter user, Alex L. 

“Thinking about MRT’s new crowd control scheme inspires me (to go back to sleep). Zzzz!” added Michi Guiritan.

Before the new system was implemented, the trip from North Avenue to Magallenes was only 35 minutes but “now it’s one hour for the queue and then 35 minutes for the train ride. Good job, MRT!” said Jessica Tin Miraña.

In an earlier interview, Secretary Joseph Abaya of the Department of Transportation and Communications said the agency was in the process of acquiring more train cars.

The department is currently evaluating the proposal of China’s Dalian Locomotive & Rolling Stock Co.–CNR Group, which emerged as the only qualified bidder during an auction held in June.

DOTC said it was targeting an additional 48 trains to serve the estimated 600,000 people now taking the trains daily, a volume well above its designed capacity of 350,000. MRT currently has a fleet of 73 train cars.—With a report from Ramon Royandoyan

Read more: http://newsinfo.inquirer.net/549501/mrt-boss-defends-crowd-control-amid-jeering-riders#ixzz2nyQ1EzQz

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Gov't Debt

Outstanding gov't debt at P7.73 trillion as of June
 
THE COUNTRY'S outstanding public sector debt (OPSD) reached P7.73 trillion as of June, the government reported on Friday.

In a statement, the Finance department said the consolidated outstanding debt of the public sector was equivalent to just 70.2% of the country's gross domestic product (GDP) for the period.

This is smaller than the 73.1% OPSD-to-GDP ratio recorded as of the same period last year. This is likewise down from the 71.3% ratio as of March.

The Philippine economy grew by 7.7% in the first quarter and 7.6% in the second quarter, bringing first-half GDP growth to 7.65%. In nominal terms, the GDP totaled P11.016 trillion in the six-month period.

The OPSD represents the total outstanding debt of the national government (NG), local government units (LGUs), the 14 monitored non-financial government corporations (MNFGCs), social security institutions, the Bangko Sentral ng Pilipinas (BSP), and government financial institutions (GFIs), minus the government's holdings of its own debt through the above entities and the Bond Sinking Fund (BSF).

Broken down, the domestic debt of the public sector as of end-June totaled P5.52 trillion. Meanwhile, foreign public sector debt amounted to P2.21 trillion.

"As of June 2013, 28.7% of the total consolidated outstanding public sector debt is owed to foreign creditors, and the remaining 71.3% is owed to domestic creditors," the Finance department said.

Meanwhile, on a per sector basis, of the total outstanding public sector debt, non-financial liabilities -- the debt of the national government, LGUs, government corporations, and social security institutions -- amounted to P5.7 trillion as of June 2013, equivalent to 51.8% of GDP.

This is greater than the P5.44 trillion recorded as of June last year, which was, however, equivalent to a higher ratio of 54% of GDP.

The end-June 2013 level was also higher than the P5.45 trillion recorded as of March 2013, which was just 50.4% of the economy.

"This was attributed to the P169.8 billion increase in NG debt, the LGUs, and the increase in debt of both the domestic and foreign liabilities of the 14 MNFGCs," the Finance department said.

For financial public corporations, their outstanding debt stood at P3.78 trillion as of June, higher than the P3.404-trillion year-ago level but down from the end-March 2013 tally of P3.888 trillion.

"Bangko Sentral ng Pilipinas (BSP) debt registered a decrease of 2.8%, offset by a slight increase of 0.1% in the debt of the Government Financial Institutions (GFIs) from March 2013 level," it noted.

The government's holdings of its own debt totaled P1.72 trillion in the first semester.

Meanwhile, general government (GG) debt -- which consolidates the outstanding debt of the national government, LGUs, the Central Bank Board of Liquidators (CB-BOL), and social security institutions -- amounted to P4.315 trillion as of the first semester.

This was higher than the end-June 2012 level of P4.153 trillion and the P4.156 trillion registered as of March 2013.

As a percentage of the economy, these liabilities comprised 39.2% of GDP in the first semester, improving from the 41.2% ratio recorded as of the same period last year but slightly higher than the 38.5% GG debt-to-GDP ratio registered as of March.

Debt as a percentage of GDP is a measure used by many debt watchers to assess the creditworthiness of sovereigns.

A smaller ratio indicates that a country has more than enough resources to settle its liabilities.

source:  Businessworld, 12/13/2013

Remittances seen to beat target

THE BANGKO Sentral ng Pilipinas (BSP) expects to breach its remittance target of 5% more than in 2012 on the back of higher inflows, buoyed by seasonal flows and money sent home by relatives of those affected by typhoon Yolanda (international name: Haiyan), the central bank chief said.

"With the reports we are getting now, there is an increase in remittances, but you cannot segregate remittances due to the calamities and those due to seasonal flows," said BSP Governor Amando M. Tetangco, Jr. at a media forum last Friday, when asked if the central bank expects more remittance inflows towards the end of the year amid expectations of larger inflows due to typhoon Yolanda.

"At this point in time, we are no longer changing the forecast of 5% for the year. But our January-to-September growth rate of remittances is actually 5.8%, so it looks like we will exceed the projected whole year growth of 5%," Mr. Tetangco continued.

This is in line with BSP Deputy Governor Diwa C. Guinigundo’s earlier statement that the volume of money sent home by overseas Filipinos is expected to post higher-than-normal rates towards the end of the year due to expectations that migrant Filipinos will send more money home to support families affected by the typhoon, which battered the central Philippines last month.

Remittances rose by 5.27% to $1.935 billion in September from a year ago. The result is the biggest so far this year and brought the year-to-date tally to $16.480 billion, up 5.84% from last year.

The central bank aims for remittances to rise by 5% this year from the $21.391 billion recorded last year.

The amount of money sent home by Filipinos abroad usually rises towards Christmas and the enrollment season.

However, due to the calamities that recently struck the country, remittances are expected to rise above normal levels, central bank officials said.

"If you look at the experience in remittances during typhoons Pepeng and Ondoy in 2009, there was an increase in the rate of growth of remittances from about 5% or 6% per annum to 11% per annum towards the end of 2009; this is the year-on-year growth seen on a monthly basis. [Regarding] the cumulative growth by 2009, there was an acceleration by about .5%," Mr. Tetangco explained.

For next year, meanwhile, he said "the BSP is keeping the 5% target" but noted that the central bank’s projections are being reviewed periodically to take into account various developments.

Remittances are normally equivalent to 10% of the gross domestic product (GDP), and previous disasters have seen an increase of up to 15%.

Super typhoon Yolanda, devastated parts of the central Philippines last month, causing 5,632 deaths and P30.65 billion in infrastructure and agriculture damage, according to the National Disaster Risk Reduction and Management Council’s latest report yesterday. -- Ann Rozainne R. Gregorio

source:  Businessworld

Embattled taxman takes aim at the famous

THE PHILIPPINES’ taxman has long struggled to compel the country’s elite pay its fair share, but a name-and-shame campaign targeting one of history’s greatest boxers and the "sexiest woman alive" is aiming to change that.

A crusade against wealthy Filipinos is part of President Benigno S. C. Aquino III’s high-profile effort to curb tax evasion throughout all sectors of society, a central plank of his quest to fight widespread corruption.

Boxing hero Emmanuel "Manny" D. Pacquiao became the latest to be caught in the crosshairs when the Bureau of Internal Revenue froze his bank accounts last week for refusing to pay a $50-million tax bill related to earnings in the ring in 2008 and 2009. The boxer says he has already paid the required taxes in the United States and paying in the Philippines would equate to double taxation.

While the champion appeared stunned and claimed he was being harassed, it was in fact just the latest strike by the BIR since Mr. Aquino came to power in 2010 that has targeted hundreds of rich or famous Filipinos.

"When ordinary people see that we are going after popular and well-known figures... it drives home the point that paying taxes is a civic duty," Claro B. Ortiz, who runs the bureau’s Run After Tax Evaders (RATE) campaign, told AFP.

The revenue bureau has so far filed criminal complaints or charges against 200 wealthy Filipinos it accuses of avoiding a combined P44.45 billion ($1.02 billion) in taxes.

Mr. Pacquiao, who is also a second-term congressman with ambitions of eventually becoming president, has not been charged. His case is currently a civil matter. Among those facing criminal prosecution are actor-model celebrities, including Solenn A. Heussaff, named by the Philippine edition of Esquire magazine this year as "the sexiest woman alive". Wealthy individuals who are away from the limelight are also being pursued, including a precious metals trader who allegedly failed to disclose over a billion pesos’ worth of refined gold and silver sales to the central bank.

Tax evasion is punishable by up to 10 years in jail. However, those facing prosecution can have charges or criminal complaints dropped by cutting a deal with the revenue bureau, or hope to have their case lost in the quicksand of the Philippines’ justice system. Criminal cases in the Philippines’ overwhelmed courts take an average of six years to complete, according to 2010 government data.

The Philippines is also infamous for a "culture of impunity" in which the wealthy or powerful are able to bribe, intimidate or otherwise use their influence so that they are rarely held accountable for crimes. Just one person has been put behind bars for tax evasion since Mr. Aquino came to power in 2010, and her four-year prison term, meted out last year stemmed from charges filed in 2005.

But the government is banking on a wide range of name-and-shame techniques to fight tax evasion. It regularly publishes in newspapers lists of top tax-paying companies in various industries and asks readers whether successful businesses they know of should be there. It also releases an annual list of the country’s wealthiest individuals and companies, highlighting the huge difference between their riches and taxes paid.

Occasionally there is also some direct presidential intervention. In March, Mr. Aquino warned the Chinese-Filipino community to start paying taxes or face prosecution. In an address to an annual meeting of the Federation of Filipino-Chinese Chambers of Commerce and Industry, Mr. Aquino said just 8% of its companies paid taxes.

The stakes are so high in the Philippines because tax evasion costs $10 billion each year, equivalent to 4% of GDP. The government is claiming limited success in its campaign, citing tax collections having risen by 14% last year.

However, has also acknowledged there is a long way to go before tax evasion is tamed, and that the onus rests on whoever takes over from Mr. Aquino in 2016 to continue long-term anti-corruption reforms. -- AFP

source:  Businessworld

Country’s tax ranking rises

THE PHILIPPINES has risen several places in the World Bank and International Finance Corp.’s global tax rankings, benefiting from continued reforms said to have made compliance more efficient and less costly.

The country ranked 131st out of 189 economies in the annual "Paying Taxes" report after placing 143rd out of 185 last year.

The United Arab Emirates was ranked first, followed by Qatar, Saudi Arabia, Hong Kong and Singapore. At the bottom, meanwhile, were Bolivia, Guinea, Venezuela, Central African Republic, and Chad.

The World Bank and IFC list measures the overall ease of paying taxes -- based on mandatory levies and contributions imposed on medium-sized firms in a given year -- with regard to three main indicators: number of payments, time given to comply and the total tax rate imposed.

This year’s report -- the result of surveys from June 2012 to June 2013 -- showed that globally, businesses spent an average of 268 hours in complying with 26.7 tax payments and paid 43.1% of their commercial profit for these. Last year, they took 267 hours, made 27.2 payments and dealt with a 44.7% tax rate.

"Economies around the world are adopting a range of policies as they strive to strike a balance between raising tax revenues and encouraging growth," it noted.

For the Philippines, the Bureau of Internal Revenue’s (BIR) implementation of electronic facilities for tax payments was said to have helped this year.

The country was noted as requiring 36 tax payments from businesses per year, still higher than the world average of 26.7. One corporate income tax payment, 25 labor tax payments and social contributions, and 10 other forms of taxes are mandated. These numbers, however, improved from the 47 payments reported last year as labor taxes then totaled 36.

"In the Philippines, an electronic filing and payment system for social security contributions, health insurance and housing development fund contributions was launched in 2012. Over the past two years the system has been rolled out and in 2012 the majority of companies adopted this new system which reduced the number of payments by 11," the report noted.

The country’s total tax rate likewise went down to 44.5% of firms’ commercial profit from last year’s 46.6% -- albeit still higher than the global benchmark of 43.1%. Of this, 19.6% goes to corporate income tax, 10.8% to labor taxes and social contributions, and 14.1% to other taxes. In last year’s report, the numbers were 21.1%, 11.3% and 14.2%, respectively.

As for the time required for compliance, meanwhile, businesses here spend 193 hours to settle their tax liabilities, lower than the global average of 267. Of this, 42 hours are needed to pay corporate income tax, 38 hours for labor taxes and social contributions, and 113 hours for consumption taxes -- unchanged from last year’s report.

The report noted that governments worldwide continued to reform their respective tax regimes to reduce the administrative burden. The most common initiative noted remained the introduction or improvement of online filing and payment systems.

source:  Businessworld

Bank exposures to real estate up in Q2 – Bangko Sentral

The amount of exposure of Philippine banks to the real estate sector increased in in the second quarter of the year from a quarter earlier, Bangko Sentral ng Pilipinas reported Wednesday.

In a statement, the central bank said real estate exposure of universal, commercial and thrift banks stood at P900.1 billion as of end-June, up 6.8 percent from P842.6 billion as of end-March.

Bulk or 84.7 percent of the exposure was made up of real estate loans (RELs) to bankroll acquisition, construction and improvement of housing units. RELs grew 6.6 percent quarter-on-quarter to P762.5 billion.
The rest of bank's exposure comprised of investments in real estate securities, which grew 8.3 percent to P137.7 billion.


The numbers were based on central bank's new reporting system that covers loans to developers of socialized and low-cost housing, loans to individuals, loans supported by non-risk collateral or Home Guarantee Corporation, investment in securities to finance real estate activities, as well as exposure by banks' trust departments to the property sector.


Under Memorandum No. 2012-046, the central bank told banks to report more types of credit and investments in the real estate sector, casting a wider net in capturing the financial system's exposure to the property industry.


The central bank said it is “keen on monitoring the credit conditions that support the heightened activity in property development to prevent potential impairment of intermediation.” – Sieg Alegado/VS, GMA News

Pag-IBIG to invest P5B in stocks

HOME Development Mutual Fund (Pag-IBIG) is setting aside P5 billion for its maiden investment in equities, an official said last Thursday.

“I’ve just gotten approval [from the board of trustees] to invest a certain percentage of our investable funds into equities,” Pag-IBIG Chief Executive Officer Darlene Marie B. Berberabe told reporters at the sidelines of the Asia CEO Awards.

Ms. Berberabe, who was given the Public Sector Leadership Award, said Pag-IBIG currently holds P330 billion in assets, with about 70% of these invested in housing-related loans.

It also has P35 billion in “free funds” for other investments -- 85% of which are in government securities, while the rest are in fixed-income assets.

“We have approval for a maximum of P5 billion to be invested in equities,” she said.

Pag-IBIG has begun screening fund managers to help the state-run agency with the investment.

“That’s what we are doing now, we are accrediting fund managers because we recognize that we don’t have that capacity. This is a first for us,” Ms. Berberabe said.

She said fund managers would be chosen based on their track record and the management fees they offer.

“We really want to be safe. This is money that members will need at a certain point. We need to return them to our members.”

While no specific timetable has been set, Pag-IBIG’s first investment in stocks will likely happen next year, she said.

Earlier this year, two other state-run financial institutions, the Government Service Insurance System and Social Security System, said they were planning to increase their exposure to equities to take advantage of attractive valuations, especially with the Philippine economy booming.

Pag-IBIG’s foray into stocks is expected to add liquidity to the local market, which is bracing for volatility should the US Federal Reserve start reducing its massive stimulus program next year.

Last year, the Philippine Stock Exchange (PSE) emerged as the third best performing bourse in the world after Turkey and Thailand.

Despite volatility this year due to concerns over the Fed’s taper plans, the benchmark index has still gained 7.83% to date. It settled at 6,267.85 points yesterday against the 2012 yearend close of 5,812.73.

Before the US central bank said it would taper its $85-billion monthly bond-buying program and sent tremors across financial markets worldwide, the PSE index hit as high as 7,392.20 on May 15 -- a gain of 27.17% for the year.

source:  Businessworld

Pag-IBIG to invest P5B in stocks

Pag-IBIG to invest P5B in stocks

HOME Development Mutual Fund (Pag-IBIG) is setting aside P5 billion for its maiden investment in equities, an official said last Thursday.

“I’ve just gotten approval [from the board of trustees] to invest a certain percentage of our investable funds into equities,” Pag-IBIG Chief Executive Officer Darlene Marie B. Berberabe told reporters at the sidelines of the Asia CEO Awards.

Ms. Berberabe, who was given the Public Sector Leadership Award, said Pag-IBIG currently holds P330 billion in assets, with about 70% of these invested in housing-related loans.

It also has P35 billion in “free funds” for other investments -- 85% of which are in government securities, while the rest are in fixed-income assets.

“We have approval for a maximum of P5 billion to be invested in equities,” she said.

Pag-IBIG has begun screening fund managers to help the state-run agency with the investment.

“That’s what we are doing now, we are accrediting fund managers because we recognize that we don’t have that capacity. This is a first for us,” Ms. Berberabe said.

She said fund managers would be chosen based on their track record and the management fees they offer.

“We really want to be safe. This is money that members will need at a certain point. We need to return them to our members.”

While no specific timetable has been set, Pag-IBIG’s first investment in stocks will likely happen next year, she said.

Earlier this year, two other state-run financial institutions, the Government Service Insurance System and Social Security System, said they were planning to increase their exposure to equities to take advantage of attractive valuations, especially with the Philippine economy booming.

Pag-IBIG’s foray into stocks is expected to add liquidity to the local market, which is bracing for volatility should the US Federal Reserve start reducing its massive stimulus program next year.

Last year, the Philippine Stock Exchange (PSE) emerged as the third best performing bourse in the world after Turkey and Thailand.

Despite volatility this year due to concerns over the Fed’s taper plans, the benchmark index has still gained 7.83% to date. It settled at 6,267.85 points yesterday against the 2012 yearend close of 5,812.73.

Before the US central bank said it would taper its $85-billion monthly bond-buying program and sent tremors across financial markets worldwide, the PSE index hit as high as 7,392.20 on May 15 -- a gain of 27.17% for the year.

source:  Businessworld

Pag-IBIG to invest P5B in stocks

HOME Development Mutual Fund (Pag-IBIG) is setting aside P5 billion for its maiden investment in equities, an official said last Thursday.

“I’ve just gotten approval [from the board of trustees] to invest a certain percentage of our investable funds into equities,” Pag-IBIG Chief Executive Officer Darlene Marie B. Berberabe told reporters at the sidelines of the Asia CEO Awards.

Ms. Berberabe, who was given the Public Sector Leadership Award, said Pag-IBIG currently holds P330 billion in assets, with about 70% of these invested in housing-related loans.

It also has P35 billion in “free funds” for other investments -- 85% of which are in government securities, while the rest are in fixed-income assets.

“We have approval for a maximum of P5 billion to be invested in equities,” she said.

Pag-IBIG has begun screening fund managers to help the state-run agency with the investment.

“That’s what we are doing now, we are accrediting fund managers because we recognize that we don’t have that capacity. This is a first for us,” Ms. Berberabe said.

She said fund managers would be chosen based on their track record and the management fees they offer.

“We really want to be safe. This is money that members will need at a certain point. We need to return them to our members.”

While no specific timetable has been set, Pag-IBIG’s first investment in stocks will likely happen next year, she said.

Earlier this year, two other state-run financial institutions, the Government Service Insurance System and Social Security System, said they were planning to increase their exposure to equities to take advantage of attractive valuations, especially with the Philippine economy booming.

Pag-IBIG’s foray into stocks is expected to add liquidity to the local market, which is bracing for volatility should the US Federal Reserve start reducing its massive stimulus program next year.

Last year, the Philippine Stock Exchange (PSE) emerged as the third best performing bourse in the world after Turkey and Thailand.

Despite volatility this year due to concerns over the Fed’s taper plans, the benchmark index has still gained 7.83% to date. It settled at 6,267.85 points yesterday against the 2012 yearend close of 5,812.73.

Before the US central bank said it would taper its $85-billion monthly bond-buying program and sent tremors across financial markets worldwide, the PSE index hit as high as 7,392.20 on May 15 -- a gain of 27.17% for the year.

source:  Businessworld

Pag-IBIG to invest P5B in stocks

HOME Development Mutual Fund (Pag-IBIG) is setting aside P5 billion for its maiden investment in equities, an official said last Thursday.

“I’ve just gotten approval [from the board of trustees] to invest a certain percentage of our investable funds into equities,” Pag-IBIG Chief Executive Officer Darlene Marie B. Berberabe told reporters at the sidelines of the Asia CEO Awards.

Ms. Berberabe, who was given the Public Sector Leadership Award, said Pag-IBIG currently holds P330 billion in assets, with about 70% of these invested in housing-related loans.

It also has P35 billion in “free funds” for other investments -- 85% of which are in government securities, while the rest are in fixed-income assets.

“We have approval for a maximum of P5 billion to be invested in equities,” she said.

Pag-IBIG has begun screening fund managers to help the state-run agency with the investment.

“That’s what we are doing now, we are accrediting fund managers because we recognize that we don’t have that capacity. This is a first for us,” Ms. Berberabe said.

She said fund managers would be chosen based on their track record and the management fees they offer.

“We really want to be safe. This is money that members will need at a certain point. We need to return them to our members.”

While no specific timetable has been set, Pag-IBIG’s first investment in stocks will likely happen next year, she said.

Earlier this year, two other state-run financial institutions, the Government Service Insurance System and Social Security System, said they were planning to increase their exposure to equities to take advantage of attractive valuations, especially with the Philippine economy booming.

Pag-IBIG’s foray into stocks is expected to add liquidity to the local market, which is bracing for volatility should the US Federal Reserve start reducing its massive stimulus program next year.

Last year, the Philippine Stock Exchange (PSE) emerged as the third best performing bourse in the world after Turkey and Thailand.

Despite volatility this year due to concerns over the Fed’s taper plans, the benchmark index has still gained 7.83% to date. It settled at 6,267.85 points yesterday against the 2012 yearend close of 5,812.73.

Before the US central bank said it would taper its $85-billion monthly bond-buying program and sent tremors across financial markets worldwide, the PSE index hit as high as 7,392.20 on May 15 -- a gain of 27.17% for the year.

source:  Businessworld

Inframachineries goes to PhilConstruct

A LEADING provider of construction tools and equipment is launching its latest product lines “that has never been displayed in the any trade exhibition in the Philippines”

Doosan-DLA wheel loader

Eduardo Trinidad, president of Inframachineries, said that the company is confident that its new line of equipment—-that will be on display during PhilConstruct 2013 this week—will meet the growing needs of developers

Our team is excited to unveil it in this year’s PhilConstruct,” Trinidad said.

As one of the major exhibitors at PhilConstruct, the company is expected to showcase its products and services to than 50,000 visitors, including the largest network of industry professionals, in a single venue.

“We are a key partner in infrastructure development across the country, providing builders with the expertise and superior machinery they need to fulfill their requirements,” Trinidad said, adding that the leadership team brings 30 years of training and experience to every project.  

“It’s an exciting time to be part of PhilConstruct,” Trinidad said. “The construction sector is booming and we want to support this growth by making the right insight and most advanced equipment available.”
The company is the exclusive distributor of Doosan Infracore Construction Equipment for sales and service, and Zoomlion, Everdigm, and Sandvik equipment.

Inframachineries is optimistic that a strong economy will lead to improved infrastructure, which will help pave the way for sustainable and inclusive development.

The Philippines’ construction sector continues to show robust growth. In the second quarter of 2013, the National Statistics Office reported a total of 29,424 construction projects based on approved building permits. Residential and non-residential projects generated P32.60 billion and P28.50 billion, respectively. In 2012, new construction projects from approved building permits were recorded at 121,051, representing an increase of 7.2% compared with 112,881 construction projects in 2011.

Since its establishment in 2011, Inframachineries steadily rose to serve more global brands and clients that rely on highly personalized after-care service. “Inframachineries is making a name in the industry by offering competitive prices and excellent service to customers,” said Peter Pancho, former president of the Association of Carriers and Equipment Lessors (ACEL).

source:  Manila Standard

BIR: Few lawyers, CPAs in top taxpayers list

MANILA, Philippines – Doctors, lawyers, accountants – they are the first who come to mind when talking about high-earning professionals.

But sadly, many of them aren't paying the right amount of taxes, said the Bureau of Internal Revenue, which has been zeroing in on professionals, especially the self-employed ones, in its fight against tax evasion.

In its latest tax campaign ad, BIR pointed out that of 3.2 million people belonging in 50 registered professions, less than a hundred made it to the Top 500 Individual Taxpayers List for 2012.

BIR failed to note, however, that the professionals who made it to BIR's list are also businessmen.
BIR said of 65,398 lawyers registered with the Philippine Regulation Commission (PRC) as of 2011, 19 were top taxpayers in 2012.

Corporate lawyer and PAL Holdings Inc. company secretary Estelito Mendoza led the lawyers group, with P56.59 million tax paid. He ranked third on the BIR list.

Following Mendoza was GMA Network Inc. chairman and CEO Felipe Gozon, who ranked 41st on the BIR list, with P20.91 million tax paid.

Among 176,048 doctors and dentists, 2 were on the BIR list – Splash Corporation chairman and CEO Rolando Hortaleza (P12.32 million) and Levi Labra of Procter & Gamble (P9.38 million).

Meanwhile, 8 out of 145,209 certified public accountants registered with PRC were included in the list. The 8 were led by Rizal Commercial Banking Corporation president and CEO Lorenzo Tan, with P33.16 million; TVI Resource Development president Eugene Mateo, with P13.10 million; and businessman Roberto Ongpin, with P7.42 million.

Check out this graphic for the names of the other professionals who paid the highest amount of income taxes last year.



source: Rappler

Longer fun in the Philippines

IN AN EFFORT to stimulate foreign tourism, the Bureau of Immigration has recently amended its guidelines on visa-free entry into the Philippines. This past August, visa-free entry privileges of foreign nationals from 151 countries with bilateral agreements or diplomatic ties with the Philippines have been extended from 21 days to 30.

Under the new policy, nationals from the list of non-restricted countries travelling to the Philippines for business or leisure are allowed to enter the country without an entry visa and stay for a maximum period of 30 days. Foreigners may avail of the visa-free privilege if they hold valid outbound tickets and passports that are valid for a period of at least 6 months beyond the contemplated period of stay in the Philippines.

In general, the 30-day visa-free stay may be extended. The first extension will be valid for 29 days. Thereafter, succeeding extensions for one or two months can be secured. Any foreigner whose total period of stay in the Philippines has exceeded one and one-half years will be required to secure approval from the Commissioner of the Bureau of Immigration for an additional extension of his authorized period of stay.

As far as restricted nationals are concerned (i.e., those not from the 151 listed countries), they will still be required to secure an entry visa from the appropriate Philippine Embassy or Consulate abroad before they can be allowed to enter the country.

With the longer visa-free entry stay, the government can expect an increase in visitor arrivals and tourist spending in the Philippines. In economic terms, this translates to a more dynamic growth in trade, capital investment and employment. As a robust industry, Philippine tourism has been able to generate an average of $2.48 billion per annum during the five-year period from 1993-1997. Based on the economic impact research of the World Travel and Tourism Council (WTTC), the industry has contributed P194.7 billion to the Philippine economy in 2011 or 2.0% of the country’s GDP. In 2011 alone, the Philippines generated P159.9 billion in visitor exports or total spending within the country by international tourists for both business and leisure trips. It is expected to attract 5,238,000 international tourist arrivals by 2022, generating expenditure of P417.3 billion.

As for employment, the travel and tourism industry was able to contribute 3,547,500 jobs in 2011 or 9.6% of total employment. When apportioned, 778,000 of these jobs deal directly with tourists, while a greater margin is created in allied industries. Travel and tourism includes jobs from hotels, restaurants and airlines, grand tour and excursion companies, catering trade, travel agents, tour operators, cruise ship operators, specialized retailing, ancillary airport employment and taxi services. Other than jobs created directly by travel and tourism, this employment opportunity ripples to other sectors of the economy as well. For instance, indirect impact is felt in the manufacturing and wholesale/retail trade sectors that benefit from the supply-chain effect, and in the construction sector, which posted revenue returns from investment spending for new tourism assets and leisure facilities. By 2022, tourism is forecasted to support 4,448,000 jobs or 9.5% of the country’s total employment (Travel and Tourism Economic Impact 2012: Philippines, WTTC).

To an average Filipino, job generation may signify a more inclusive participation in the economic wealth of the nation. This could mean a more equitable distribution of income trickling down to the masses rather than being concentrated to a few. With employment comes sustainable household income. In the economic equation, such financial advancement brings improved living standards -- a catalyst to societal transformation from the depths of poverty.

Only time can tell if the liberalization of tourist entry policies will bring in the needed revenue to boost the economy. As for now, tourism remains as the sunshine industry to contend with. With an extended 30-day visa free privilege, a longer sojourn by foreign visitors may bring substance to the government’s tourism campaign, “It’s more fun in the Philippines”.

Harold S. Ocampo is a director at the tax services department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network. Readers may send feedback to harold.s.ocampo@ph.pwc.com.

Views or opinions presented in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The firm will not accept any liability arising from such article; the author will be personally liable for any consequent damages or other liabilities.

source:  Businessworld

Debt servicing down 40%

GOVERNMENT debt servicing dropped by almost 40% annually in August due to a decline in principal payments made in the month, data from the Bureau of the Treasury showed.

The government spent a total of P40.888 billion to cover its principal and interest payments to its creditors in August, 38.32% less than the P66.294 billion recorded in the same month last year.

Principal payments made in the month declined by 51.25% to P22.658 billion against the P46.478 billion disbursed in August 2012.

The bulk of this amount was paid to foreign lenders at P22.564 billion while the remaining P94 million went to domestic creditors.

Meanwhile, interest payments made in August likewise declined by 8% to P18.23 billion from the P19.816 billion paid in the same month last year.

Of this total, the government paid P12.613 billion in interest to local lenders, and P5.617 billion went to external creditors.

In the breakdown, of the interest payments to domestic lenders, P11.316 billion went to holders of fixed-rate Treasury bonds.

Holders of retail Treasury bonds were also paid P1.213 billion while Treasury bills holders accounted for P75 million. The remaining P9 million went to interest payments for other domestic liabilities of the government.

From January to August, debt payments totaled P425.085 billion, 16.92% less than the P511.684 billion disbursed in the same period last year, the data showed.

Principal payments made in the first eight months dropped by more than a third year-on-year to P196.21 billion from last year’s P290.569 billion.

Of this total, P98.627 billion was paid to local creditors while P97.583 billion went to foreign creditors.

Interest payments in the eight months ending August, meanwhile, rose slightly to P228.875 billion from the P221.115 billion recorded in the same period in 2012.

Disbursements to domestic lenders accounted for the bulk of this total at P151.941 billion while the remaining P76.934 billion went to foreign lenders.

A significant portion of the national budget goes to interest payments on debt, while principal payments are off-budget items covered by debt refinancing.

Public spending reached P133.2 billion in August, bringing the eight-month tally to P1.222 trillion, 12.63% higher than the P1.085 trillion disbursed in the same period last year.

According to the national budget, the government is programmed to spend P767.394 billion for debt servicing this year, with P435.185 billion allotted for principal payments and the remaining P332.209 billion, for interest payments.

In 2012, the government spent a total of P729.774 billion to service its debts, slightly more than the P722.75 billion disbursed the year before.

The national government’s outstanding debt grew by 6.9% year-on-year to P5.451 trillion as of June, up from the P5.101 trillion recorded as of the same month in 2012. -- Bettina Faye V. Roc

source:  Businessworld

Presidential Kitty

There is the P7.5-billion Calamity Fund, the P6-billion Presidential Social Fund, the P1-billion Discretionary Fund, the emergency response fund of the departments, even Philippine Charity Sweepstakes Office (PCSO) and the Philippine Amusement and Gaming Corporation (PAGCOR) funds.

Not to mention the Malampaya Fund.

And not the DAP Fund.

2014 @ 11%: The new SSS rate you need to know

SSS will increase contribution rates and maximum monthly salary credit starting January 2014.

Employers and employees need to take note of the new Social Security System (SSS) rule starting next year that will implement a 0.6 percent increase in its current 10.4 percent monthly contribution rate. The new rate will be 11 percent effective January 2014. It will also increase the maximum monthly salary credit from P15,000 to P16,000.

“The 0.6 percent increase will be divided equally between employees and employers, with the latter to pay 7.37 percent, while the former will pay 3.63 percent based on the applicable monthly salary credit. Self-Employed and Voluntary Members will shoulder the entire 11-percent contribution rate,” SSS President and Chief Executive Officer Emilio S. de Quiros, Jr. said. “This contribution rate increase is part of the SSS Reform Agenda that seeks to lengthen gradually the actuarial life of the Social Security Fund,” he added. “It also aims to reduce the unfunded liability of SSS, which was at P1.07 Trillion as of December 2011 and increases by about eight percent annually.”

An unfunded liability exists when the present value of a pension fund’s contributions and assets is insufficient to cover the present value of future benefit payments and operating expenses. Such situation occurs because the benefits that a member receives or is entitled to far outweigh the accumulated contributions, including interest.

“Increasing the contribution rate would result in bridging the gap between contributions and benefits,” de Quiros added. Aside from the 0.6 percent increase in the contribution rate, President Aquino also approved an increase in SSS’ maximum monthly salary credit (MSC) from P15,000 to P16,000. The MSC is the compensation base that determines both the amount of monthly contributions to be paid by the member and the amount of benefits to be derived. With the 11 percent contribution rate, the monthly contribution will be P110 for the minimum MSC of P1,000; P550 for the minimum MSC of P5,000 for OFWs; and P1,760 for the maximum MSC of P16,000.

“The new maximum MSC at P16,000 means that a greater portion of the members’ incomes are covered in their SSS contributions,” de Quiros explained. “Higher contributions eventually mean higher benefits in the future.”

source:   Entrpreneur Philippines

Singapore tightens up on hiring foreigners

SINGAPORE -- Singapore Monday announced tighter rules on the hiring of foreign professional workers, saying companies will from next year have to show proof they first tried to recruit local citizens.

  The change, taking effect in August 2014, follows protests and online complaints about the large number of foreigners in the affluent city-state.

The Ministry of Manpower said companies that discriminate against citizens “will be subject to additional scrutiny” when they apply for employment passes for foreign professionals.

“Even as we remain open to foreign manpower to complement our local workforce, all firms must make an effort to consider Singaporeans fairly,” Acting Manpower Minister Tan Chuan Jin said in a statement.

“What we are doing is to put in place measures to nudge employers to give Singaporeans -- especially our professionals, managers and executives -- a fair chance at both job and development opportunities.”

About 37% of Singapore’s total workforce of 3.36 million in 2012 were non-resident.

The ministry said companies must first advertise for Singaporeans to fill job vacancies in a national jobs bank administered by the government’s workforce development agency. Foreigners can be hired if no citizens are qualified.

Firms which have a “disproportionately low concentration” of Singaporean employees at professional level, and companies where foreign managers are accused of favoring their own compatriots in hiring, will also be put under tighter scrutiny, the ministry said.

Firms with 25 or fewer staff, or those recruiting for jobs paying Sg$12,000 (US$9,580) and above a month, will be exempted from the advertising rule. Authorities have been phasing in measures to tighten foreign worker inflows amid criticism from citizens, who accuse foreigners of competing with them for jobs, housing, schools and public transport space.

Singaporeans have also complained that the rapid influx in previous years is eroding their national identity. The discontent spilled into general elections in 2011 when the ruling party garnered its lowest-ever vote count after more than 50 years in power. Two rallies against the government’s immigration policy were held earlier this year garnering crowds of more than 3,000, making them the country’s biggest protests in decades. -- AFP

 

source:  Businessworld 

Oil companies battle for talent with stress balls, sweets and beer

ABERDEEN, Scotland -- At one of the largest oil shows in the world in Scotland’s oil town of Aberdeen, hundreds of companies vied for new recruits, flaunting shiny drill bits and simulators amid free beers and women in tight work overalls.

The global battle for talent in the oil industry was clear at the SPE Offshore Europe Conference and Exhibition last Sept. 8-11 that was set on a site bigger than four football pitches.

At a time when oil and gas firms are cutting costs to try to improve profits and save cash for dividends, they face a skills shortage that is leading to runaway wage increases.

A recent survey by Oilcareers.com estimated the UK alone would need to attract 120,000 personnel over the next decade to carry on production in the North Sea and replace a retiring workforce.

Exhibiting at the show, which feels like a giant freshers’ fair, was one way for the companies to attract young people into their ranks.

“Having a stand here is good for raising awareness of the company, particularly among students who might be looking for jobs,” Bruce Ferguson, managing director at equipment maker Hunting, told Reuters.

A group of six students from Perth High School in Scotland -- weighed down with branded bags stuffed with brochures, sweets and stress balls -- told Reuters they were on the hunt for scholarships to pay their way through university.

Starting salaries, which in oil and gas rank third behind investment banking and law according to Graduates.co.uk, are getting in the way of efforts to lower costs.

The problem is a global phenomenon with hourly earnings in the oil and gas sector in the United States having risen 62% over the past decade, according to that country’s Bureau of Labor Statistics.

Job site Rigzone puts the global average salary in the sector at $98,000 per year.

Despite graduates struggling to get jobs in most sectors in recent years, oil and gas has bucked the trend with engineers and geologists in hot demand.

Bob Keiller, chief executive of oil services firm Wood Group, told the conference in Aberdeen that pay needed to come down to accommodate the now-declining nature of the North Sea, where output has fallen by two-thirds since 2000.

“If we’re going to be truly successful in the second half of the North Sea industry, we really need to re-baseline our cost base, and quite frankly we need to do our business using fewer people and paying them less,” he said during a talk.

But with oil and gas employers telling an industry survey earlier this year that their major concern in the current employment market was a skills shortage, it doesn’t look like there will be room for maneuver.

“The money, that’s always got to be a consideration, it’s very good,” Nicholas Dubourg, 23 and studying engineering at Aberdeen University, said as he walked around an exhibition hall, chatting to potential employers.

He said he expected a starting salary of between £25,000 and £30,000 ($39,000 to $46,800).

Lynsey Angus, about to start studying geology at Edinburgh University and at the show to secure summer placements, agreed.

“I’m told everyone wants petroleum geologists right now, so that makes my degree feel useful. Some people study something and then just end up working in a supermarket.”

One longer-term solution to the skills shortage is more automated and remote-controlled equipment, enabling unmanned platforms and cutting significantly the number of workers needed per barrel.

Andrew Gould, chairman of BG Group, said a technological jump was needed to keep North Sea production a viable business option.

“The solution to many of today’s problems with logistics is to use technology to reduce the number of people offshore,” Mr. Gould said. -- Reuters

source:  Businessworld

FB & Twitter in PH

The Philippines was ranked eighth in the world for Facebook with 33.6 million users (as of end-2013) and tenth for Twitter (as of August 2012), despite only around 30 percent of the population being able to access the Internet.

Diokno Present Stats @ an Austrian business community

ROAD MAP: The assessment of Dr. Benjamin Diokno, UP economics professor, of the country’s economic performance midway through President Aquino’s term points to a challenge for the administration to do better in the final three years of his presidency.

“Where’s the road map?” asked Diokno, a former Secretary of Budget and Management, as he assessed the economy before Austrian businessmen and their Filipino partners gathered last Thursday at the Makati Shangri-La.

The meeting was organized by Austrian Commercial Counsellor Lisa Viehhauser. It was also an occasion for the Austrian business community to welcome new Austrian Ambassador Josef Müllner.

After painting a not-so-encouraging economic picture, Diokno said: “What is lacking is decisiveness, policy consistency and policy credibility.”

*      *      *

UNSUSTAINABLE GROWTH: Diokno gave statistics showing that the Philippines grew at 7.6 percent in the first semester, but remains to be the poorest among the original five members of the Association of Southeast Asian Nations.

The 7.6-percent growth is not sustainable, he said, noting that even Aquino’s economic managers agree. He added that the Gross Domestic Product in the second half of 2013 will decelerate because of a still weak world economy and the tapering off of effects of election spending.

He said the Philippines remains to be the poorest among the original ASEAN-5 economies. In World Bank reports for 2012, the per capita Gross National Income of the five nations is: Singapore $47,210, Malaysia $9,800, Thailand $5,210, Indonesia $3,420 and Philippines $2,470.

The Philippines ranks the highest in poverty incidence among the ASEAN-5 economies. In the CIA World Factbook, the comparative poverty rankings of the five are: Philippines 83; Indonesia 133; Thailand 147; Malaysia 156; Singapore 211.

*      *      *

DEEPENING POVERTY: Based on data of the National Statistics Coordination Board, the poverty situation in 2012 appears to be unchanged from 2006 and 2009. But in terms of warm bodies, poverty has deepened.

The NSCB reports that there are 463,000 more poor people now than in 2009. “And we all know that because of the world economic crisis, 2009 was a bad year,” Diokno said.

Among the ASEAN-5, the Philippines has the worst unemployment record. While the unemployment rate was falling among its ASEAN-5 neighbors, it was rising in the Philippines.

Bangko Sentral ng Pilipinas data show that unemployment in the ASEAN-5 for 2012 and the first and second quarters of the current year was: Philippines 7.0 percent (2012) and 7.1 (Q1), 7.5 (Q2); Malaysia 3.0% (2012), 3.2 (Q1), 3.2 (Q2); Indonesia 6.4 % (2012), 5.9 (Q1); Thailand 0.7% (2012), 0.7 (Q1); and Singapore 2.1% (2012), 1.9 (Q1).

*      *      *

NOT INCLUSIVE: Diokno said that whatever growth there was, it was not inclusive. Government figures show that the number of jobless Filipinos this year stood at: (January) 2,894,000 unemployed and 7,934,000 underemployed; (April) 3,086,000 unemployed and 7,252,00 underemployed; (July) 3,000,000 unemployed and 7,341,000 underemployed.

A recent World Bank study showed that by the time President Aquino steps down in 2016, the state of unemployment will be as dismal as it was before he assumed the presidency – if not worse.

The study forecast that 12.4 million Filipinos, or 11.5 percent of projected population by then “would still be unemployed, underemployed, or would have to work in the informal sector where moving up the job ladder is difficult.”

Diokno said unemployment is a form of “market failure,” adding that there is need for government intervention.

He said one challenge for government is to create around 14.6 million jobs in the next four years. In addition, it should create better jobs for the other 21 million who are informally employed.

source:  Philippine Star Column Postcript by Federico Pascual

The growth of the global middle class

WHILE there are signs that the global economy may be moving (albeit slowly) towards stability, one thing is clear: the world has changed significantly from the one that we knew just a few years ago. As the centers for trade and economic power shift away from traditional western bastions, analysts are looking to rapid-growth markets (RGMs) to shore up the still-wobbly global economy.

A recent Ernst & Young (E&Y) publication, Rapid-Growth Markets Forecast, identifies RGMs as countries that emerged from the 2008 recession with minimum damage and are projected to grow up to 6% in 2014. These countries cut across the globe and include nations in Southeast Asia, Africa, Latin America and the Middle East, among others. [The report did not classify the Philippines as an RGM for now, but the country is viewed as a high-potential market.] The expectation is that an increasingly interconnected world can benefit from the trading opportunities that will arise from this anticipated phenomenal growth.

Under this scenario, one anticipates that as RGMs achieve prominence, their economies will become stronger, their governments will become more influential and -- this is most important -- their people will become more visible because of their buying power. This will drive a significant shift in worldwide demographics, with the expected growth of the global middle class. Logically, increased economic performance will eventually flow down to the largest socio-economic groups in most developing countries -- the poor -- who are also the ones who will benefit the most from increased prosperity.

Who do we expect will constitute this “new” middle class? The report uses the same definition used by the Organization for Economic Cooperation and Development (OECD): households with daily expenditures between $10 and $100 per person in purchasing power parity terms. This income group includes consumers of television sets, refrigerators, cars and mobile phones, and is therefore clearly seen to be the driver of the global economy.

No longer will the global demand for goods and services be driven primarily by consumption patterns in the United States. The middle class in RGMs is expected to create a burgeoning demand in the coming years as they rise out of poverty, with their spending increasing from $21 trillion to $56 trillion in 2030. And as the RGM middle class expands, they will draw more imports and increase demand for services. It is highly possible that RGMs will become a key destination for more service exports, including sophisticated banking, insurance and other financial services that were previously more prevalent in western markets.

The global middle class is expected to grow organically and to have a healthy appetite. It is projected that the size of this group will hit 3.2 billion by 2020 and 4.9 billion by 2030, according to the OECD Development Center. The bulk of this growth will come from Asia; by 2030, Asia will represent 66% of the global middle class population and generate 59% of middle-class consumption (compared with 28% and 23%, respectively, in 2009). China, India and Indonesia together are expected to account for 27% of global consumption by 2020 and 45% by 2030. ASEAN’s proposed economic community, expected to be in place by 2015, will likely further fuel consumption within, and beyond, ASEAN.

The Philippines, which demonstrated 7.6% GDP growth in the first semester of this year and is projected to grow by 7% in 2014, is a high-potential market. The positive views and upgrades given by the credit ratings agencies have brought an increase in investor interest in the country, supported by socio-economic progress of recent years. With our robust domestic demand, coupled with our talented working-age population and growing middle class, the Philippines can be seen as being in a similar position to other RGMs in long-term performance. Local businesses would be well-advised to prepare for the growth opportunities to come, as well as increasing competition from foreign players.

There are a few key factors that have contributed to RGMs leapfrogging from third-world status to the new engines of the global economy.

One is technology. Mobile communications, broadband connections, tablets and smartphones -- all these have changed consumer purchasing habits and accessibility to goods. There are increasing numbers of online retailers in Russia, China and various RGMs that are capitalizing on having a huge global market -- without needing an actual, physical retail environment.

Then there is the growing number of foreign-educated youth who are bringing in skills, capital and new ideas to their home countries, and contributing to the economic and social welfare of their nations. From these individuals will eventually rise a new generation of companies that will embody modern entrepreneurial ideas and insights. As the middle class becomes more educated, they begin demanding more from themselves and the government. Consequently, their social and economic conditions will improve, leading to a better relationship with the government and a more advanced society -- one that offers the best in terms of employment opportunities, medical facilities, infrastructure, law and order, ease of doing business, and cross-border trade. This will, in turn, lead to stronger fiscal and monetary policies, which will benefit businesses and consumers. Under these scenarios, there are tremendous possibilities for forward-thinking companies to begin preparing, whether by establishing footholds in RGMs or building strategic alliances that will allow them to market positively to the coming global middle class.

The question is, are businesses ready to meet this coming demand?

To borrow an often-used phrase, the global financial crisis has resulted in a brave new world for all of us. One where the bold -- be they companies, individuals, or even a social class as a whole -- may find great advantages in seizing the initiative.

J.G. Cruz is the vice-chairman and deputy managing partner of SGV & Co.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

source:   Businessworld

Remittances rise as more professionals turn OFWs

Remittances rise as more professionals turn OFWs

MORE PROFESSIONALS are leaving the Philippines for work abroad, bumping up remittances that are keeping the economy afloat.

The National Statistics Office’s (NSO) 2012 Survey on Overseas Filipinos showed the number of overseas Filipino workers (OFWs) increasing to 2.22 million last year, up from 2.16 million the year before.

Professionals comprised 12.4% of the total number of OFWs, while officials of government and special interest organizations, corporate executives, managers, managing proprietors and supervisors made up 3.2%, higher respectively than the 10.6% and 2.9% recorded the year before.

More Filipinos also left for abroad to work as clerks (5.8% from 5.5%), and as service workers and shop and market sales workers (16.2% from 15.5%).

On the other hand, deployment of trade and related workers, plant and machine operators and assemblers, and laborers and skilled workers slowed. Trade and related workers comprised 0.1% of the total number of OFWs, down from 0.4% in 2011 while plant and machine operators and assemblers made up 12.9%, down from 13.6%.

Laborers and unskilled workers still comprised the largest group of OFWs, but their proportion fell to 31.3% from 32.7%.

More OFWs in 2012 meant more remittances: P165.63 billion versus P156.34 billion in 2011.

Professionals contributed the most, sending home a total of P24.78 billion, a fourth more than the year before. Each remitted an average of P109,000, rising from P99,000.

Ranking behind them in terms of remittances were laborers and unskilled workers who came up with P19.63 million, 11% less compared to the previous year. Remittances averaged P35,000 per worker, dropping from P37,000 each in 2011.

Remittances are supporting personal consumption, which accounts for around 70% of the country’s gross domestic product.

Bangko Sentral ng Pilipinas data showed that overseas Filipinos sent home a total of $20 billion in 2011, and $21 billion the following year. It expects a 5% rise in remittance inflows this year.

“Overseas Filipinos,” which encompass permanent migrants, temporary migrants (mostly OFWs) and irregular migrants totaled 10.5 million, about a tenth of the population, based on the Commission on Filipinos Overseas’ count as of 2011.

Fernando T. Aldaba, an economics professor at the Ateneo de Manila University, said the exodus of professionals is expected to continue “as long as there is a huge wage differential between destination countries’ rates and the Philippines’.”

Remittances might be higher but the country loses in the long run from the contributions they would have made owing to their higher education. The problem is exacerbated when they do not return to the Philippines.

“Politically, these permanent migrant workers should have been members of a growing middle class that will clamor and demand more governance reforms,” Mr. Aldaba added.

Jobs in tourism and business process outsourcing might hold them back but professionals are expected to continue to seek better opportunities abroad especially as the world economy improves, he pointed out.

The Survey on Overseas Filipinos, done annually, "aims to derive national estimates on the number of overseas Filipino workers, their socio-economic characteristics and the amount and mode of remittances, in cash and in kind, received by their families," the NSO said.

The survey covered those aged 15 years and older and who worked abroad from April 1 to Sept. 30, 2012.

"OFWs" pertained to those who had work contracts, working visas and work permits. Those without these documents but were employed were also covered by the survey.

Results of the NSO survey also showed that overseas contract workers -- those with contracts -- comprised 95% of the total number of OFWs.

Saudia Arabia was the preferred destination for around 21% of OFWs, followed by the United Arab Emirates, Singapore and Qatar.

Most OFWs sent cash to families in the Philippines through banks. They also brought some cash home, or sent remittances in kind. Other channels aside from banks were door-to-door services, agencies or local offices and friends and co-workers. -- Judy T. Gulane - See more at: http://research.bworldonline.com/print_preview.php?article_id=195#sthash.kyUldvHf.dpuf

MORE PROFESSIONALS are leaving the Philippines for work abroad, bumping up remittances that are keeping the economy afloat.

The National Statistics Office’s (NSO) 2012 Survey on Overseas Filipinos showed the number of overseas Filipino workers (OFWs) increasing to 2.22 million last year, up from 2.16 million the year before.

Professionals comprised 12.4% of the total number of OFWs, while officials of government and special interest organizations, corporate executives, managers, managing proprietors and supervisors made up 3.2%, higher respectively than the 10.6% and 2.9% recorded the year before.

More Filipinos also left for abroad to work as clerks (5.8% from 5.5%), and as service workers and shop and market sales workers (16.2% from 15.5%).

On the other hand, deployment of trade and related workers, plant and machine operators and assemblers, and laborers and skilled workers slowed. Trade and related workers comprised 0.1% of the total number of OFWs, down from 0.4% in 2011 while plant and machine operators and assemblers made up 12.9%, down from 13.6%.

Laborers and unskilled workers still comprised the largest group of OFWs, but their proportion fell to 31.3% from 32.7%.

More OFWs in 2012 meant more remittances: P165.63 billion versus P156.34 billion in 2011.

Professionals contributed the most, sending home a total of P24.78 billion, a fourth more than the year before. Each remitted an average of P109,000, rising from P99,000.

Ranking behind them in terms of remittances were laborers and unskilled workers who came up with P19.63 million, 11% less compared to the previous year. Remittances averaged P35,000 per worker, dropping from P37,000 each in 2011.

Remittances are supporting personal consumption, which accounts for around 70% of the country’s gross domestic product.

Bangko Sentral ng Pilipinas data showed that overseas Filipinos sent home a total of $20 billion in 2011, and $21 billion the following year. It expects a 5% rise in remittance inflows this year.

“Overseas Filipinos,” which encompass permanent migrants, temporary migrants (mostly OFWs) and irregular migrants totaled 10.5 million, about a tenth of the population, based on the Commission on Filipinos Overseas’ count as of 2011.

Fernando T. Aldaba, an economics professor at the Ateneo de Manila University, said the exodus of professionals is expected to continue “as long as there is a huge wage differential between destination countries’ rates and the Philippines’.”

Remittances might be higher but the country loses in the long run from the contributions they would have made owing to their higher education. The problem is exacerbated when they do not return to the Philippines.

“Politically, these permanent migrant workers should have been members of a growing middle class that will clamor and demand more governance reforms,” Mr. Aldaba added.

Jobs in tourism and business process outsourcing might hold them back but professionals are expected to continue to seek better opportunities abroad especially as the world economy improves, he pointed out.

The Survey on Overseas Filipinos, done annually, "aims to derive national estimates on the number of overseas Filipino workers, their socio-economic characteristics and the amount and mode of remittances, in cash and in kind, received by their families," the NSO said.

The survey covered those aged 15 years and older and who worked abroad from April 1 to Sept. 30, 2012.

"OFWs" pertained to those who had work contracts, working visas and work permits. Those without these documents but were employed were also covered by the survey.

Results of the NSO survey also showed that overseas contract workers -- those with contracts -- comprised 95% of the total number of OFWs.

Saudia Arabia was the preferred destination for around 21% of OFWs, followed by the United Arab Emirates, Singapore and Qatar.

Most OFWs sent cash to families in the Philippines through banks. They also brought some cash home, or sent remittances in kind. Other channels aside from banks were door-to-door services, agencies or local offices and friends and co-workers. -- Judy T. Gulane



source:  Businessworld