24 April 2014

Country rises in ICT use ranking

THE PHILIPPINES has moved up in a World Economic Forum (WEF) ranking that measures the capacity of countries to use technology to improve economic growth and social well-being.

After staying in 86th over the past three years, the country climbed eight rungs to 78th out of 148 economies in terms of network readiness, according to the WEF’s 2014 Global Information Technology Report.

The network readiness index assesses how prepared an economy is to apply the benefits of information and communications technologies (ICTs) to increase productivity, economic growth, and the number of quality jobs.

The improvement in the Philippines standing was driven by good showings in the following subindices: environment (up one to 90th), readiness (up 38 to 81st), usage (up 15 to 76th), and impact (up 10 to 62nd).

The environment subindex evaluates the friendliness of an economy’s market and regulatory framework in supporting high ICT uptake levels.

The readiness subindex, meanwhile, looks at how prepared a society is make good use of an affordable ICT infrastructure and digital content.

The usage subindex assesses the efforts of individuals, businesses, and government to increase their capacity to use ICTs, while the impact subindex gauges the broad economic and social impact of such technologies.

“A significant improvement in the perceived efficiency in the country’s legal system and property rights protection drive the political and regulatory environment ... ICT readiness is the other area where the Philippines improves the most, thanks to a more affordable access to ICT infrastructure and better skills...,” the report said.

“Business usage is, as in many other Asian economies, at a more advanced stage than individual usage. Progress made in terms of economic impacts registered last year continues this year [and] the role of ICTs in fostering innovation by creating new products and services and organizational models is confirmed and contributes to this promising result.”

Finland topped the list for the second consecutive year, followed by Singapore, Sweden, the Netherlands, Norway, Switzerland, the United States, Hong Kong, the United Kingdom, and South Korea.

Chad ranked last.

Sought for comment, National Competitiveness Council (NCC) private sector co-chairman Guillermo M. Luz said: “I am quite optimistic that we will be in the top third by 2016 since the government last year made significant changes the way IT is procured by the government, leading to better systems in the government and more interoperability.” -- Daryll Edisonn D. Saclag


source: Businessworld

12 April 2014

Foreign investments reach $1b

Foreign direct investments rose 5.3 percent year-on-year to $1 billion in January, as foreign companies infused more capital in their local units, the Bangko Sentral said Thursday.

“This developed as investments in debt instruments and equity capital registered higher net inflows during the month despite the observed reversal in foreign portfolio investments,” the Bangko Sentral said.

FDIs refer to long-term investments that are infused in companies in the country while foreign portfolio investments are funds that are temporarily parked in stocks, government securities and currency market.

The January figure reversed the 7.9-percent decline recorded in the same period last year when net inflows of FDIs fell to $976 million from $1.059 billion in January 2012.

“In particular, non-residents’ net placements in debt instruments issued by their local affiliates increased by 7.3 percent to $687 million, accounting for about 67 percent of the FDI in January 2014,” the Bangko Sentral said.

“This was due to the continued lending of parent companies abroad to their local affiliates to fund existing operations and the expansion of their business in the country, an indication of sustained confidence in the country’s strong macroeconomic fundamentals,” the bank regulator said.

Data showed net equity capital inflows increased 10.5 percent to $278 million in January from $252 million a year ago. Gross placements of equity capital reached $361 million, while withdrawals amounted to $83 million during the month.

The bulk of gross equity capital placements came from Hong Kong, the United States, Japan, Singapore and the United Kingdom.

These funds were channeled mainly to financial and insurance; wholesale and retail trade; real estate; manufacturing, and information and communication activities.

Meanwhile, reinvestment of earnings reached $62 million in January 2014, down from $84 million a year ago.

Net inflows of FDIs increased 20 percent to a record $3.86 billion in 2013 from $3.215 billion in 2012, driven by investors’ rising confidence on the country’s sound macroeconomic fundamentals.
The Bangko Sentral projected net inflows of FDIs to reach $2.6 billion this year.

Bangko Sentral Governor Amando Tetangco Jr. earlier said despite the tapering of the US monetary stimulus this year, investors would still look at the fundamentals and prospects of individual countries.

Data from the International Monetary Fund showed FDI inflows in the Philippines from 2000 to 2011 reached $25.59 billion, lower than $114.56 billion of Malaysia, $146 billion of Thailand, $186 billion of Indonesia and $617 billion of Singapore.

source:  Manila Standard Today