PHL to be among least at risk from global shocks

The Philippines is less vulnerable to external shocks due to uncertainties from the impending interest rate hike in the United States (U.S), weaker-than-expected recovery in Japan, and China’s economic woes, separate studies, conducted by international ratings agency Standards and Poor’s (S & P), Fitch Ratings, and Moody Investors Showed. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)

“ASIA-PACIFIC Sovereigns Fitch Ratings Head Andrew Colquhoun”

Identified the Philippines, together with India and Vietnam, as emerging market economies that will least likely be affected by global economic problems.   Fitch cut its global growth forecast for 2015 to 2.3%, the lowest rate since 2009. However, it sees the emerging market’s gross domestic product (GDP) growth to increase up to 2.7% in 2016 and 2017. On the same note, S&P named the Philippines, Mexico, and Poland as the least vulnerable emerging market economies to be affected by the tightening global liquidity, financial deleveraging, and a slowdown of China’s economy. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)

PHL can rise to the top 20% in global competitiveness index

The Philippines aims to move into the top 20% in global competitiveness index in the next five years, after hitting its goal to rise into the top 305 and ranked 47th among 140 countries in the Global Competitiveness Report 2015-2016,

National Competitiveness Council (NCC) Private Sector Co-Chairman Guillermo M. Luz said. To be in the top 20%, the country must surpass 18 countries which are tougher and more competitive but this is possible given the fact that the Philippines was able to overtake 38 countries in the past 5 years, Luz said. Since 2010, the Philippines placed 38 notches higher, the biggest jump in the Association of Southeast Asian Nations(ASEAN), in five years. In the survey, the Philippines reached 47th from 52nd spot, a huge improvement from the 82nd rank in 2010. The Global Competitiveness Report is an annual publication of the World Economic Forum (WEF) that provides a comprehensive picture of the productivity and competitiveness by gathering statistical and survey data on over 114 indicators grouped into 12 pillars in 140 countries. It is one of the most widely read competitiveness reports and is highly correlated to investment attractiveness. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)

PHL’s Scores in the Global Competitiveness Report 2015-2016

Improving Areas 

∞ Labor Market Efficiency (up 9 from 91st to 82nd).

∞ Health and Primary Education (up 6 from 92nd to 86th).

∞ Market Size (up 5 from 35th to 30th).

∞ Business Sophistication (up 4 from 46th to 42nd)

. ∞ Innovation (up 4 from 52nd to 48th).

∞ Macroeconomic Environment (up 2 from 26th to 24th).

The PHL’s greatest grains in the last Five Years

Innovation (up 63 from 111th to 58th).

∞ Institutions (up 48 from 125th to 77th).

∞ Macroeconomic Environment (up 44 from 68th to 24th).

∞ Research and Development (up 49 from 85th to 36th).

∞ Government procurement of advanced technology products (up 70 from 129th to 59th).

∞ Government budget balance (up 49 from 63rd to 14th).

∞ Government debt (up 48 from 102nd to 54th).

∞ Gross national savings (up 26 from 74th to 48th).

Young population to propel PHL

The government’s rising budget for human capital development to improve its quality workforce amid the rising number of young population would help groom the Philippines to become a major economic powerhouse over the long term,

Investor Relations office (IRO) Executive Director Editha L. Martin said. Investments in health and education will help ensure that the Philippines seize the window of opportunity offered by its entry to the “Demographic Window” and make the economy reap the dividends, Martin said. Starting this year until 2050, the Philippines is within the “Demographic Window”, a period when a great majority of the population are of working age. The county’s working-age population (between 15 and 64 years old) this year accounted for 66.6% of the total population of 101.6M. It is expected to rise to 68% of 110M people in 2020, and further to 70.6% of 125.3M in 2030. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)


Government Budget for Health, Education, and Social Services fo FY 2015”

Services                                                  Amount in Billion Php

∞ Education                                                      367.0

∞ Health                                                            108.2

∞ Social Work and Development                             62.3 Conditional Cash Transfer


BPO revenue generation to grow faster

The business process outsourcing (BPO) sectors revenue generation between 15% to 18% and generate USD 3.7B annually or 33B over a nine-year period until 2025, real estate firm CBRE project. “The Philippine BPO sector will continue to thrive in the next years because the country provides a conducive environment for foreign investors – an excellent pool and low cost of skilled labor, outstanding customer service, and quality destination”,

CBRE Philippines Chief Executive officer (CEO) Rick M. Santos said. Next year the BPO industry is expected to engage 1.3M full time employees (FTEs). CBRE forecasts that BPO FTEs will reach 2.23M by 2025 or 105,000 new hires annually and will hit 3.3M by 2035. BPO hotspots in the country includes the National Capital Region(NCR), CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), Davao-General Santos Area, Cebu Province, Dumaguete City, Bacolod, and Bohol Province, CBRE said. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)   “23rd


APEC Economic Leaders’ Declaration Building Inclusive Economies, Building a Better World: A Vision for an Asia-Pacific CommunityBuilding Inclusive Economies

  1. To support comprehensive and ambitious structural reforms; achieve positive economic, social, and environmental outcomes; and promote good governance.
  2. To deepen our financial markets and mitigate risks.

Fostering Micro, Small and Medium Enterprises’ Participation in Regional and Global Markets

  1. To foster an enabling trading environment that is responsive to new ways in which goods and services are produced and delivered and that promotes inclusiveness, especially for MSMEs.

Building Sustainable and disaster-resilient Communities

  1. To build sustainable and disaster-resilient economies.
  2. To make urbanization work for growth.

Investing in Human Capital Development

  1. To redouble our efforts to empower with the tools to benefit from and participate in economic growth.

Enhancing the Regional Economic Integration Agenda

  1. To achieve our vision for an integrated community in a comprehensive and systematic manner.
  2. To develop the services sector as an enabler of economic growth and inclusion.

Strengthening Collaboration

  1. To work with stakeholders to address common challenges.
  2. To strongly support the work of our Ministers, the APEC process, and all its’ Committees and Fora. (“PHILIPPINE BUSINESS REPORT VOLUME 26 No. 11 November 2015”)
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March 6, 2016March 6, 2016
NO NEED FOR NEW PIER FOR EQUIPMENTS; AIRPORT TO START NEXT MONTH It is now final and official. There is no more need for a temporary seaport in bringing in heavy equipments needed in the construction of the New Bohol Airport in Panglao. This development surfaced after the main contractor, Chiyoda Mitsubishi Joint Venture ( CMJV), a Japanese consortium and sub-contractor EEI Corp. agreed to the “night shift” policy suggested by Gov, Edgar Chatto amid the controversy arising from the rumored plan to construct a temporary pier in barangay Tangan, Panglao town. The suggestion of the governor which seems adopted by the contractors was part of last Sunday’s editorial of The Chronicle. Meanwhile, the new Bohol Airport will officially commence its construction next month. Only recently, the controversial plan for a temporary pier generated strong public opposition citing the environmental destruction it brings in the area. Hauling and transport by heavy equipment of the materials for the 30-month construction of the new Bohol airport will be done nightly until early morning to avoid likely heavy traffic never seen here before. Last Wednesday, Gov. Chatto witnessed the Manila signing between the Department of Transportation and Communications (DOTC) and the consortium of the deal for the construction of the airport on Panglao island. DOTC Sec. Joseph Emilio Abaya led the signing together with Associate Director and Deputy Division Director Tadayoshi Kimura of Business Development Division of the Chiyoda Corp. and Deputy General Manager and Division Head Masahito Nonaka of the Global Environment & Infrastructure Business Division of the Mitsubishi Corp. Japan International Cooperation Agency (JICA) Chief Representative to the Philippines Noriaki Niwa and Project Formulation Advisor Shimizu Toshihiro of JICA Economic Growth Section also witnessed the sealing, which paves the start of the construction. “Construction will start in June. We appreciate if the airport can be done in one-and-a-half year,” Chatto quoted Abaya as saying during the signing, although the construction from start to finish takes 30 months per contract. In the coordination conference here, the local Philippine Ports Authority (PPA) assured of berthing spaces at the Tagbilaran City port for vessels that carry the equipment and construction materials. Not just the traffic on city roads identified for routes of the equipment and materials to Panglao prosite, port congestion itself is expected to heighten considering the unusual frequent volume loading, hauling and transport. The contractor agreed to haul and transport—at 75 trips daily—during night time, preferably from midnight to six in the morning (6am) when roads are usually not or less used. City traffic is back to busy with the opening of classes in June. The local Department of Public Works and Highways (DPWH) said the bridges along the identified hauling routes from the city to construction site can contain the weight of the loaded equipment with strict regulation observed. As the city port is still undergoing rehabilitation after the earthquake, the port in Alburquerque has been eyed for alternate docking of barges loaded with heavy equipment and construction materials. But according to the PPA, the town port has also been damaged by the earthquake and its repair could cost some P20 million. While the airport contractor is willing to help rehabilitate the port, the entire work is estimated to consume eight months. Rep. Rene Relampagos, who also attended the coordination meeting, agreed with the governor that securing the funding for repair and the process through which project procurement undergoes before the actual concrete works are a different story that also takes time. The First District solon could not attend the Manila signing last Wednesday because of a meeting of the congressional tourism committee which he chairs. The peak period of airport construction is expected to start from the third week of September this year until the middle of February in 2017. Every week within this period, an average of three vessels arrive at the port, loaded with an average volume of almost 6,000 metric tons of materials and requiring 425 truck loads en route to construction site. FREQUENT COORDINATION Chatto and Relampagos would want as shorter interval of regular coordination meetings as possible so that the expected concerns which may hinder fast implementation could get addressed. It is likewise a proactive system to ready measures or policy guidelines for other possible yet unforeseen problems as construction progresses, they said. The Local Project Management Team (LPMT) handled by Provincial Administrator Alfonso Damalerio has been focused on all concerns within its mandate and capacity surrounding the gigantic undertaking. The team presented updates on varied concerns during the coordination meeting, which was also attended by Panglao Mayor Leonila Montero. These concerns include the rerouting of existing Panglao barangay roads that traverse the airport site and have to be closed and cut once construction starts or possible opening of new access roads. Yesterday, Chatto and Relampagos led the signing of the deed of transfer of the resettlement for the project-affected families (PAFs) right at their finished relocation site, which negotiation, preparation, construction, supervision, monitoring and completion had the LMPT at the painstaking front. 11th BUSIEST Once done by the middle or final quarter of 2017, although some say early 2018 is the safest projection, the Panglao airport will replace the Tagbilaran City flight terminal as the 11th busiest airport in the country. Ten times bigger than the city airport, it is foreseen to accommodate 1.7 million air passengers annually, although Chatto and Relampagos is already moving this early to secure support for its expansion in the future. Officially, the project is billed the New Bohol Airport Construction and Sustainable Environment Protection Project (NBACSEPP), said to be the first ever package deal assisted by JICA in the country. The airport has been designed to be the Philippines ’ “first world-class eco-friendly, green airport.” (Ven rebo Arigo) The Bohol Chronicle May 31, 2015