Gov’t aims to make Phl a major hub in SE Asia

MANILA, Philippines – Finance Secretary Cesar V. Purisima reiterated the Aquino administration’s goal to turn the Philippines into a major hub in Southeast Asia.

During Standard Chartered’s 2013 Singapore Forum, Purisima highlighted the Philippines’ commitment to integrate with Asean members and enhance its business environment to become a major hub in the region.

 “We in the Philippines look forward to Asean Integration in 2015. Our hope is that the Philippines will be the Northern and Pacific Gateway to Asean. The Aquino Administration is committed to ensuring that we continue to invest in infrastructure, our people, and address the constraints to growth to ensure that our people are ready to take full advantage and be part of an integrated Asean,” Purisima said.

The Southeast Asian region, with a population of over 600 million people, is seen to become a major economic growth force in Asia when the planned regional common market of Asean countries is established by 2015.

This will significantly reduce the cost of production for the businesses and economic growth of member-countries.

“The ASEAN demographic places the region in a very strong position for growth. It is important that ASEAN integrates because our collective strengths are more formidable than our individual competencies,” Purisima said.

The region, comprising the Philippines, Singapore, Malaysia, Indonesia, Cambodia, Brunei, Laos, Thailand, Vietnam, and Myanmar, collectively makes up the world’s third largest population behind only China and India. Its population is also one of the youngest in the world, with an average age of 27, which Purisima said puts the region at an advantage versus the rest of the world.

Purisima likewise underscored the importance of Asean’s initiatives in connectivity, “we have to be connected with each other, not just through infrastructure, but also connectivity through common standards for trade and investments.”

Source: http://www.philstar.com/business/2013/03/27/924320/govt-aims-make-phl-major-hub-se-asia

BSP: More OFW families saving, investing in Q1

Families of overseas Filipino workers (OFW) are now saving and investing a larger portion of the remittances they receive from their loved ones abroad, a Bangko Sentral ng Pilipinas survey showed.

In its consumer expectations poll, the Bangko Sentral said the percentage of OFW households that utilized their remittances or savings rose to 42.5 percent in the first quarter from 39.5 percent in the fourth quarter of last year.

Likewise, the proportion of remittance recipients who invest in vehicles such as business capital or stocks increased to 5.8 percent from 3.1 percent previously.

“The various programs of the BSP and other agencies on financial literacy have somewhat provided support to the decision of many households to allocate more portion of their earnings into savings and to some extent investments,” Bangko Sentral deputy governor Diwa Guinigundo told reporters.

Guinigundo, likewise, said the stable rise of consumer prices could also be attributed to the higher proportion of OFW families who save and invest.

Inflation averaged at 3.2 percent in 2012, which is at the lower end of the Bangko Sentral’s 3 to 5 percent target. Inflation in March is seen settling between 2.8 to 3.7 percent.

However, families of OFWs still use bulk of the money sent back home for food and education.

Some 96.6 percent of respondents used remittances for food, while more than two thirds or 67.2 percent of the households surveyed allocated a portion of their remittances for education.

Over half or 59.1 percent of households spent remittances for medical payments, while 42.2 percent utilize the money they got for debt payments.  

Remittances grew 8.4 percent to $1.9 billion in January this year from $1.7 billion last year, latest Bangko Sentral data showed.

In 2012, remittances hit $23.8 billion, higher by 6.4 percent compared to the level recorded in 2011.

The number of OFWs sending money back home increased by seven percent to 1.8 million from 1.69 million in 2011, according to latest data from the Philippine Overseas Employment Administration. — BM, GMA News

Source: http://www.gmanetwork.com/news/story/301263/economy/moneyandbanking/bsp-more-ofw-families-saving-investing-in-q1

PH investment grade rating fuels bull run

MANILA, Philippines—It came as a surprise catalyst that revitalized the bulls into scaling unprecedented heights before the long Lenten break.

As the Philippine government bagged a much-coveted investment grade rating from Fitch Ratings, the main-share Philippine Stock Exchange index rallied by 182.35 points or 2.74 percent towards its best ever finish of 6,847.47 on Wednesday. A new intra-day peak was also hit at 6,873.89 close to the end of the session.

This marked the 24^th record finish for the index this year. The local stock market, which is now on its fifth year of upswing, has gained a total of 1,034.74 or 17.8 percent at the end of the first quarter.

While trading was mostly upbeat since the start of the shortened trading week due to quarter-end window-dressing, Fitch’s rating action allowed the local market to end with a big bang.

At 2:33 p.m. on Wednesday, Fitch announced the upgrade of the Philippines’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BBB-’ from ‘BB+’ with a stable outlook, lifting Philippine debt grade out of “junk” status for the first time in history. This immediately triggered a new wave of buying at the stock market during the last hour of trade.

“This is the best news for us Filipinos and we are all part of this,” said Ismael Cruz, president of local stock brokerage IGC Securities.

“It’s an early Easter for the market,” said fund manager Astro del Castillo, managing director at investment management firm First Grade Finance. “It will definitely open the floodgates of investment, both FDI (foreign direct investment) and hot money. The most conservative funds are really just waiting for this feather in our cap before plowing money to our country.”

Del Castillo said this rating action would likely trigger a race among the bulls in corporate Philippines. “It seems that the Philippines is no longer carrying its cross,” he said.

Jose Mari Lacson, head of research at local stock brokerage Campos Lanuza & Co. said the market’s performance on Wednesday turned very exciting with some fast buying of large-caps on the back of the investment upgrade news.

“But the upgrade was announced late in the day, which means that UK and US markets have yet to fully discount the development. They won’t get their chance over the next few days, which means that like a rubber band, investment demand for the Philippines could stretch some more by the time the market reopens on Monday,” Lacson said.

Local markets are closed in the next two days and will resume only on Monday.

“Barring any major upheaval in the global markets or political scene over the long weekend, we expect Monday to be equally exciting or even be a bigger blast,” he said.

Value turnover amounted to P12.92 billion at the local market. There were 110 advancers that edged out 44 decliners while 35 stocks were unchanged.

By counter, property got the day’s biggest boost (+3.88 percent) while the industrial, holding firm and services sectors all surged by over 2 percent.

The day’s biggest index gainers were MWC (+6.1 percent), ALI (+5.48 percent), SMIC (+5.29 percent), Meralco (+4.75 percent), Jollibee (+4.74 percent), URC (+4.44 percent), PLDT (+4.18 percent), BPI (+3.48 percent), SM Prime (+3.35 percent) and Megaworld (+3.18 percent).

Among the few index stocks that lagged the market on Wednesday were EDC (-2.56 percent) and Globe Telecom (-1.64 percent).

Source: http://business.inquirer.net/114413/ph-investment-grade-rating-fuels-bull-run

HK ruling may result in unfair treatment of Filipina maids

MANILA – A Filipino advocacy group is afraid of negative effects from the final decision of Hong Kong’s Court of Final Appeal to deny residency to two long time domestic helpers.

“We do not want to see more anti-migrant policies coming up in the future just because the court has declared we are not at par with other people in Hong 
Kong,” said Eman Villanueva, secretary general of the United Filipinos in Hong Kong, on ANC’s Primetime.

Villanueva insisted that there is no truth to the Hong Kong government’s claim that a favorable ruling would have opened the floodgates to immigrants, saying there is really not much interest among foreign workers to apply for permanent residency.

He added that what they are fighting for is equal treatment under immigration rules.

He fears the decision could send the wrong signal that foreign domestic workers can be treated unfairly.

“With the many existing anti migrant policies, this decision of the court will further strengthen the belief that foreign domestic workers are second class citizens and should not be treated equally in Hong Kong,” he said.

Despite the setback, Villanueva said they will continue the fight for the other basic rights of domestic workers.

“Our OFWs are working 12-15 hours a day. There’s also the 2 year rule which limits our stay. We are forced to leave Hong Kong once our contracts are terminated. There are many issues that we have to fight for to improve the living and working condition of our OFWs,” he said.

Reuters reported that Hong Kong’s highest court has ruled against two Filipino domestic helpers seeking permanent residency.

In a unanimous 5-0 ruling, the Court of Final Appeal sided with government’s position that domestic helpers don’t have the same status as other foreign residents.

Lawyers for Evangeline Vallejos and Daniel Domingo had argued, excluding domestic helpers is unconstitutional and amounts to discrimination.

Vallejos has worked in Hong Kong since 1986 and Domingo since 1985. – ANC

Source: http://www.abs-cbnnews.com/global-filipino/03/26/13/hk-ruling-may-result-unfair-treatment-filipina-maids

phl imposes limit on issuing travel clearances in dubai

Philippine labor officials in the United Arab Emirates (UAE) imposed a limit on the number of travel exit clearances to be issued daily to Filipino expatriate workers.

The Philippine labor office in Dubai said it will now accommodate only 500 applications for the Overseas Employment Certificate (travel exit clearance) per day.

An OEC is a document the Philippine government requires as proof that a returning Filipino worker is in the Philippines for a holiday and will go back to the same employer abroad.

The OEC also proves the worker was hired legally.

“In view of the surge in applicants for OEC, we will process the first 500 applications for OEC per day during peak months when OEC applications exceed 500,” Labor Attache Delmer Cruz said in an interview with Gulf News .

Cruz explained that the policy will apply during peak months like March, July and December.

Cruz said Filipinos who want to avoid the long lines may also book appointments online to get their OECs in Manila via http://bmappointment.poea.gov.ph/.

He also said there are other locations where Filipinos can apply for OECs such as the Al Shabab Sports Club in Dubai where the Labor Office will set up a booth from 1:00 to 4:00 p.m. every Friday until July 12, offering OECs and other labor-related services.

Up to 100 OECs can be issued every Friday, Gulf News said. – VVP, GMA News

Source: http://pinoyoverseas.net/news/uae/phl-imposes-limit-on-issuing-travel-clearances-in-dubai.html