Thursday, May 31, 2012

Growth tops expectations



THE PHILIPPINE ECONOMY grew by 6.4% in the first quarter -- way above market expectations as well as the official forecast -- amid a "revitalized" service sector, higher exports and a jump in state spending.

Growth in real gross domestic product (GDP) was the fastest since the 7.3% seen in the third quarter of 2010. The January-March result, which was above the government’s 5-6% outlook, was significantly faster than the revised 4.9% recorded in the first quarter of 2011. 


BusinessWorld poll of analysts had a median forecast of 4.3%.



Real GDP, or the value of all finished goods and services within the country adjusted for inflation, stood at P1.49 trillion for the quarter from P1.4 trillion the same period last year. At current prices, GDP grew by 7.7% to P2.42 trillion, data released by the National Statistical Coordination Board (NSCB) showed.



Government officials were quick to address concerns from surprised analysts that the growth figure might not be sustained for the rest of the year. The government has forecast full-year GDP growth of 5-6% for 2012. 



The domestic economy benefited from a regime of benign inflation and an uptick in the services sector particularly from trade and other services, NSCB Secretary-General Romulo A. Virola said in a press briefing.



Headline inflation averaged 3.1% for the January to March period, within the Bangko Sentral ng Pilipinas (BSP) target of 3-5% for the year.



"Growth also got a big boost from manufacturing which has recovered some grounds ... on the demand side, growth mainly came from net exports and robust spending," Mr. Virola said.



The services sector registered the highest growth since 2004 at 8.5% during the period, with trade and other services gaining 8.9% and 10.5%, respectively.



Industry gained by a modest 4.9%, compared with last year’s 7.3%, as manufacturing recorded a 5.7% increase.



Mining and quarrying, however, contracted by 11.0%, a turnaround from the 32.2% rise in the first quarter of 2011.



Agriculture output, meanwhile, went up by just 1%, significantly slower than last year’s 4.4%.



On the expenditure side, government spending jumped by 24% during the period, reversing last year’s 15.8% slump, while service exports and merchandise exports grew by 11.1% and 7.1%, respectively.

‘BROAD-BASED’
Arsenio M. Balisacan, acting Socioeconomic Planning Secretary, said first quarter economic growth was "broad-based."


"Growth for the quarter was supported by accelerated government spending, low prices which supported household consumption, better-than-anticipated exports performance, continued credit expansion, continued robustness of remittances, expansion in the tourism sector, increased business and consumer confidence, and an overall buoyant domestic economic outlook," Mr. Balisacan said.



"Also, the Philippines posted highest growth among ASEAN (Association of Southeast Asian Nations) and other neighboring countries except China, growing faster than Indonesia (6.3%), Vietnam (4.0%), Singapore (1.6%) and Thailand (0.3%)."

GROWTH SEEN SLOWING
Economists were surprised with the growth number, and said the pace could slow down in the next quarter as external threats continued to persist.


Eugene Leow, economist at DBS Bank, said: "Headline growth was surprisingly robust on the back of a surge in services output, while on the production side, the surge in export and industrial production already point to a strong start to the year."



"However, the outlook has become decidedly cloudier due to the worsening of the euro zone crisis and risks of a hard landing in China," Mr. Leow said, adding that "electronics exports had been buoyed by restocking and it is far from clear that final demand can be sustained in the coming months."



Hong Kong and Shanghai Banking Corp. regional economist Trinh D. Nguyen was of the same view, saying: "Looking ahead, growth, while continuing to be robust, will likely slow in the next quarters as government spending will likely slow as evidenced in the April number."



"Exports, although expected to record positive growth, will normalize and expand at a more modest pace due to the worsening of the euro zone crisis, the slowing down of China as well as the gradual decrease consumer confidence in the US," the HSBC economist said.



She added: "We expect the economy to expand by 4.4% in 2012. With inflationary pressures increasing and growth less of a concern, the BSP has room to hold rates steady to monitor price conditions as well as external demand."



The central bank has kept its overnight borrowing and lending rates steady at 4% and 6%, respectively.

CENTRAL BANK WATCHFUL
BSP Governor Amando M. Tetangco, Jr., in an e-mail to reporters, said monetary authorities were ready to move against any inflationary effects.


"[W]e are ready to make adjustments as needed to ensure a non-inflationary growth environment," Mr. Tetangco said as he also noted that the first quarter result "makes the official target of 5%-6% GDP growth more manageable."



"We are, of course, hopeful that this trend would continue, as the NG (national government) accelerates spending and private consumption remains robust," he added.



"Nevertheless, we are mindful of the risks in the external environment, particularly the weakness in the euro zone, tentative growth in the US and slowdown in China.



"We will take all of these into consideration and refine our forecasts for our next policy meeting."



The policy-making Monetary Board will next meet on June 14.



"At the moment, our policy settings remain appropriate especially as our forecasts continue to show full-year average inflation to be closer to the lower end of the target range," Mr. Tetangco noted.

DOUBTS RAISED
Benjamin E. Diokno, economist at University of the Philippines, questioned the results.


"How come many Filipinos are jobless, poorer and hungrier? Is the 6.4% GDP growth sustainable in the light of the looming global recession?" he asked yesterday.



"Exports growth exceeded imports growth. That’s unusual considering the tepid growth of exports. Certainly, the positive net exports are not sustainable and perhaps not even consistent with strong growth in the future," Mr. Diokno said, adding that global market is "shrinking and volatile."



"The growth of the Philippine economy should be based on domestic demand." 



Jeff Ng, economist at Standard Chartered Bank in Hong Kong, said export growth may face "increasing headwinds."



"As the first quarter typically contributes the least to full-year growth as the weakest quarter, we will need to examine second-quarter numbers in order to determine if the 5-6% full year GDP growth is attainable," Mr. Ng said.



Cid L. Terosa, senior economist at the University of Asia and the Pacific, was optimistic. "Momentum will be maintained because of greater government and household spending and greater investor confidence, which are the reasons why the government’s full year target would be surpassed," he said, adding, "exports could add more to the growth spurt."

GOV’T UBPEAT
The government, for its part, said the full-year target could even be surpassed. 


"We already completed April and May and I have not seen any major shocks, so far. I think growth will be sustained as the second quarter outlook will be quite good," Mr. Balisacan said.



Regarding exports, National Economic and Development Authority (NEDA) assistant director-general Ruperto P. Majuca said that despite problems in the euro zone, exports are expected to grow faster in the second quarter and continue to improve.



"We are anticipating exports growth for the year to ... attain the 10% growth forecast," he said.



The Budget department, which had received flak for the slow pace of spending, also said growth would be sustained. Public spending has been focused in "foundational" areas such as basic education, health care, public housing, rural electricity and farm productivity, Budget Secretary Florencio B. Abad said in a telephone interview.



"The government will release the final tranche of [pay hikes under the] Salary Standardization Law for government employees, coupled with increased spending in irrigation and the coconut and fisheries sector, which have with the highest poverty rates," Mr. Abad said.

REFORMS CITED
The disaggregation of lump-sum funds in the national budget allowed government agencies to bid out infrastructure projects as early as January and take advantage of the dry season, he said. The speedy release of allotments for projects such as the rural health facilities, public school buildings and the conditional cash transfer program also jumpstarted government consumption.


While reforms caused a temporary slump last year, they have now proven to be critical for growth, Mr. Abad stressed.



"It takes a while to restore credibility to the government. That’s why, for a while, there was a necessary slowdown because there was a lot of review. We had to replace people and reinstitute processes," he said. -- with Diane Claire J. Jiao and Kathleen A. Martin

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After CNN, 'It's more fun' ads soon featured on National Geographic



MANILA, Philippines - The Department of Tourism (DOT) has gone all out in its international campaign to promote Philippine tourism.

After a show on CNN cable television, various Philippine destinations will be soon featured in the international television channel National Geographic.

With support from the DOT, a six-part documentary series that seeks to reveal cultural and historical insights on some of the country’s world-class destinations will be viewed over National Geographic.

Among the destinations to be featured are the Batad Rice Terraces in Mountain Province, Coron in Palawan, Taal and Anilao in Batangas, Siquijor, and Mt. Pulag in Benguet.

Produced by The Extra Mile Productions, “Islands Insider” presents the Philippines in a different perspective and deviates from traditional travel shows by featuring stories as narrated by the locals, highlighting issues beyond the breathtaking sights, and delivering a strong preservation and conservation message.

Tourism Secretary Ramon Jimenez expressed delight at being a partner of the project, which was conceptualized even before he assumed his post.

“Being a part of National Geographic means that the beautiful sights of your country are part of the world, not just part of the Philippines, and the day will come that we will have to share it with the rest of the world,” Jimenez said.

He urged Filipinos to visit and see for themselves the beauty of the different destinations in the country and help in their preservation.

“We want you to see it first, we want you to protect it, before they all come rushing in,” Jimenez said.

DOT said “Islands Insider” is a title befitting the documentary’s theme and in-depth look at the communities, as the featured locals – the Ifugaos, Ibalois, and shamans in Siquijor – were allowed to speak for themselves and their culture.

“Insider” connotes a point of truth that an outsider would not know, according to the producers.

The first episode of the six-part series, which will feature the Batad Rice Terraces, is targeted to premiere on the third week of June.

“Islands Insider” is directed by Gabby Malvar and hosted by Ginggay Hontiveros, both executive producers of The Extra Mile Productions.

With the National Geographic series, DOT expressed confidence that more foreign and local tourists would come and explore the country.

By Mayen Jaymalin (The Philippine Star)

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Raymund B. Baroy
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National Geographic to feature PHL in documentary series



A six-part documentary on the Philippines will be featured on international television channel National Geographic (NatGeo) starting in the second half of June, the Department of Tourism (DOT) said on Thursday.

The DOT said "Islands Insider" is a Filipino-produced documentary showing cultural and historical insights on some of the country’s world-class destinations.

In a news release posted on the Official Gazette, the DOT said the first episode will air on the third week of June and will feature the Batad Rice Terraces.

The other areas to be featured include Coron in Palawan, Taal and Anilao in Batangas, Siquijor, and Mt. Pulag in Benguet.

"Islands Insider" is directed by Gabby Malvar and hosted by Ginggay Hontiveros, executive producers of The Extra Mile Productions, which produced the series with support from the DOT.

The DOT said "Islands Insider" presents the Philippines using a different perspective and deviates from traditional travel shows by featuring stories as narrated by the locals.

The locals featured in the series - Ifugaos, Ibaloys, and Shamans in Siquijor — talked about their cultural practices.

The series highlights issues "beyond the breathtaking sights, and delivering a strong preservation and conservation message."

The DOT said it hopes the project will encourage more Filipinos to explore the Philippines, participate in preserving its rich cultural and historical heritage, and promote the country to the rest of the world.

A special screening was held last May 21 at Greenbelt 3 for members of the press, the blogging community, and tourism stakeholders.

DOT Secretary Ramon Jimenez Jr. attended the screening and voiced delight as a partner of the project.

“This project came as a surprise because I was not yet the Secretary when this was conceptualized. This being a part of National Geographic means that the beautiful sights of your country are part of the world, not just part of the Philippines, and the days will come that we will have to share it with the rest of the world. We want you to see it first, we want you to protect it, before they all come rushing in,” Jimenez said during his opening remarks at the special screening. - VVP, GMA News



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Everyday is a Holiday
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For inquiries please call 09065549505 or 09229452718 and look for Ray.
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Raymund B. Baroy
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Robinsons Land Corp. - Cebu Sales Force
Call/SMS:
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Wednesday, May 30, 2012

Solenn now endorser of Robinsons Land Corp.

MANILA, Philippines - Solenn Heussaff is the new celebrity endorser of Robinsons Land Corp.

The Filipina-French actress was chosen not only because of her looks but also because she embodies the brand.

Solenn comes from a good family, her French father is a former French Navy Seal while her Filipino mother was a Bayanihan dancer. She is well-educated, having been schooled in Philippine and French institutions. She is fluent in English and French and speaks Filipino. She loves the arts and studied fashion design and makeup and cosmetic artistry in Paris.

Solenn is not someone who wakes up late, goes to a salon, shops, goes to the gym and attends parties in the evening. She is well-spoken and articulate. She and her family, which includes sister Vanessa and brother Erwan, love to travel. Solenn also has a good heart. The proceeds of her planned exhibit of paintings, which will feature celebrities as the subjects, will all go to the charity.

Even before she joined Survivor Philippines, Solenn was already designing clothes for Lulu Tan Gan’s label. She is a makeup artist who studied cosmetic artistry, including body painting and prosthetics, at two of the most prestigious schools in France. She also studied fashion at Studio Bercot in Paris, one of the Top 50 fashion schools in the world. She is a free spirit who once said when asked if she didn’t mind being in a bikini all the time in Survivor Philippines, “I’m French, that’s not really a big deal to me.” She’s classy but friendly and is quite eloquent. Solenn is the type of girl who can talk to any person.

Solenn’s career is at its peak and she is one of the country’s hottest personalities. In the past year, she has done four films, a best-selling CD and a sold-out two-night concert. Solenn still continues to design clothes and paint.

“I can’t be acting or singing forever and I don’t expect that the offers will always be there. I knew when I entered show business that this is something temporary for me,” says Solenn.

She will be living at Fifth Avenue Place, one of Robinsons Land’s projects in Bonifacio Global City.

“I looked at all the projects of Robinsons Land and I realized Fifth Avenue is perfect for me not only because of its convenient location. It’s near my parents’ house and just a few minutes away from where my brother lives. I also like that the condominium is located in a very respectable and quiet neighborhood,” shares Solenn.

She is excited at finally having a place of her own and decorating it according to her taste.

“It will be modern, of course. But French inspired. My home will be done in such a way that my family members and friends will be at ease when they visit. I want it to have beautiful interiors but not like a museum where people would be afraid to touch anything,” says Solenn.

She also likes the idea of having a fabulous skyline view.

“I’ve always wanted to live in a high-rise. I always dreamed of owning a condominium unit and I knew, even before, that once I moved out of my parents’ house, I would live in one,” she shares.

Being the image model of Robinsons Land Corp. is a job that Solenn believes is tailor-made for her.

“I’m not just a singer or a TV host or a model or a makeup artist. I have many roles in life. I’m a daughter, a sister, a girlfriend, a public figure.”

SOURCE: (The Philippine Star) Updated May 27, 2012 12:00 AM


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Tuesday, May 29, 2012

Philippines could become a 'breakout nation'



IN A NEW economic era of crises and risk-averse investors, not all emerging markets will succeed in sustaining the high economic growth notched in the past decade, a Morgan Stanley executive said.

Only a few will turn out to be "breakout nations," distinguished by their ability to beat widely held growth expectations for their income class, said Ruchir Sharma, head of emerging markets and global macro at Morgan Stanley and author of Breakout Nations: In Pursuit of the Next Economic Miracles published recently.

The Philippines is "among the countries expected to do better than expectations," said Mr. Sharma, speaking by phone from Singapore yesterday, as long as the country focuses on reforms.

To qualify as a "breakout nation," the Philippines has to rise above its 5% growth potential and achieve a higher economic growth average in the next three to five years -- and over a decade.

Mr. Sharma explained that emerging market economies cannot be expected to post the high growth rates seen in a decade ago because the "easy money" that came in the wake of central bank rate cuts, and which drove growth higher, had dried up.

The prior decade was also marked by these emerging markets’ playing catch-up with the bigger economies after they were racked by crises in the 1980s to 1990s.

"The last decade is not likely to be replicated," Mr. Sharma said. "Not everyone will be able to grow rapidly and the challenge is to identify which countries can do better than the rest."

While interest rates in the United States and Europe are at historical lows at present, money is not going rapidly to emerging market economies because of risk aversion. 

Banks there are also either "keeping money at home or bringing money back home" to repair balance sheets or comply with capitalization requirements. The situation is compounded by the ongoing euro zone debt crisis.

Indeed, net foreign portfolio investments to the Philippines fell 11% to $4.08 billion in 2011 versus the previous year while data as of May 11 showed "hot money" at a little over $1 billion, roughly half the previous year’s level. Foreign direct investments was at a minuscule $1.1 billion in 2010.

Emerging market economies will have to compete for the slow-flowing foreign capital and those that succeed are those that are able to demonstrate high growth vis-a-vis peers.

In the case of the Philippines, its peers include other lower-middle-income countries such as Indonesia, India, Nigeria, Pakistan and Sri Lanka. Lower-income-countries, based on the World Bank grouping, are those with $1,006 to $3,975 in per capita income.

The Philippines’ other neighbors, Malaysia, Thailand and China belong to the upper-middle-income grouping with $3,976 to $12,275 in per capita income. So do Turkey, Brazil and Russia.

"Indonesia looks good, Thailand looks good, also Turkey and Poland," Mr. Sharma said. "Frontier markets look decent from Nigeria to Sri Lanka."

"Likely to disappoint" are Brazil, Russia and China, whose growth rates have already fallen. It’s a "mixed view" for India, which has room to catch up in terms of per capita income, but whose government has "done little reforms or back-pedaling on reforms."

Increasing revenue and raising investments put the Philippines on the right track, said Mr. Sharma, noting how the country dashed expectations previously.

"It had a very high per capita income in the 1960s, but every other country surpassed it… Korea and Taiwan in the ’70s, Malaysia and Thailand in the ’80s, China in the ’90s and Indonesia in 2009. It was getting to be a joke," he said.

"When I came to the Philippines [in 2010], I saw signs of change with [President Benigno S. C.] Aquino [III]. There was a reform momentum, it was getting the investment cycle going again."

He also sees pluses in the country’s young population and the fact that more Filipinos are living in cities. 

"Urbanization is better for productivity," he said.

The government, he said, can hit its medium-term 7-8% growth target as long as it keeps its reform momentum going.

"At the end of my book, I referred to a proverb that went ‘If there is no wind, row,’" Mr. Sharma said. 

"The easy global conditions in the past decade are not there, there are no tailwinds to ride on, so emerging markets must invite the capital."

Politics and cronyism, however, can stall the Philippines’ momentum but "hopefully, changes ... [will be] for the better."

At Morgan Stanley, Mr. Sharma oversees $25 billion in assets. Half of this is invested in Asia, of which about $500 million to $1 billion is invested in Philippine assets, mostly stocks.

The amount might look small, "but for the size of the Philippines, it’s quite big," he said.

- Business World



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Everyday is a Holiday
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Units Available include RFO and Preselling
Life's Simple Joys are Always Within Reach
Convenient Business and Leisure Living at the Heart of Cebu
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Flexible payment terms available!
For inquiries please call 09065549505 or 09229452718 and look for Ray.
You can also email at raymund.baroy@yahoo.com

=========================




Best Regards, 

Raymund B. Baroy
Account Manager
Robinsons Land Corp. - Cebu Sales Force
Call/SMS:
Local: 09065549505 / 09229452718
International :  +639065549505 / +639229452718      
Azalea Place: Azalea Place