RP IT spending to reach US$580M in 2011

By Alexander Villafania
INQUIRER.net
http://technology.inquirer.net/infotech/infotech/view/20091112-235826/RP-IT-spending-to-reach-US580M-in-2011

MANILA, Philippines—The Philippines public sector information technology spending is expected to be worth US$580 million in 2011, according to a report by IT research firm Springboard Research. Public sector IT expenditures also include budgets for government IT projects.

This growth is pegged on the continuation of government IT projects, as well as a robust political environment that prioritizes public necessity and transparency, something that is found wanting among past controversial IT projects, such as the failed ZTE-NBN project and the much-maligned election computerization in 2004.

During a press conference Michael Barnes Springboard Research vice president for Software and Asia Pacific Research cited trends in past expenditures of the Philippine government when it comes to IT infrastructure. In 2007, IT spending was pegged at US$349.2 million, which increased to US$390 million in 2008.

In the next two years, the trend will continue as government agencies, particularly those in the national level, will spend on new IT infrastructure for both internal and public sector purposes. This growth is rated to be about 12 to 13 percent per year.

“If there are points that can be expected to show some stronger presence and spur further IT growth in the Philippines, that would be increased broadband penetration, cloud computing, service-oriented architecture, and the growing offshore outsourcing industry,” Barnes said.

Barnes, however, stressed that as for now the majority of IT spending is on maintenance. He expects this to change as there would be a shift to spending on new projects, especially with the entry of a new Philippine administration in 2010. Barnes ascribed an improving IT public expenditure to a good political environment.

He also said that one positive effect of higher investments in government IT programs is increased transparency, which should minimize under-the-table dealings between government officials and technology suppliers.

“The culture of graft is nothing unique to the Philippines; it is every country's concern. But by implementing these IT infrastructures should expose the reasons why these happen. It also forces accountability among parties involved,” Barnes said.

Past IT government projects in the Philippines have been scrutinized for various reasons, most of which is regarding questionable bidding and implementation. Aside from the failed National Broadband Network fiasco, there is also the Department of Education's “Cyber Education” project, and the current plans for the 2010 poll automation.

One of the companies that is eyeing this huge public IT spending market in the Philippines is the Public Sector division of technology firm HP. Even while it is relatively new in the public IT services deployment business in the Philippines (ostensibly dominated by IBM and its partners), the company is looking at raking in some of the government IT projects.

HP Asia Pacific and Japan Director for Public Sector Poh Chuan Tan noted that cloud computing is one of the new technologies that are being integrated into government projects, partly because of demand for streamlined IT infrastructure management and maximization.

Tan said their public IT service deployments cover a broad range of public sector requirements from healthcare, security, life sciences, social services, emergency management, web services, among others.

On the question of preventing illegal transactions during bidding and implementation of these projects, HP Public Sector Director of Sales Gerry Lim said their company exercises strict business practices when dealing with government projects.

“It is a concern that we make sure does not affect our business,” said Lim.

MPIC raises stake in Citra Tollways to 13%

Also set to infuse $123M in Skyway project
By Doris Dumlao
Philippine Daily Inquirer
http://business.inquirer.net/money/topstories/view/20091112-235849/MPIC-raises-stake-in-Citra-Tollways-to-13

METRO PACIFIC INVESTMENTS CORP. HAS STRUCK a deal with an Indonesian conglomerate to raise its stake in Citra Metro Manila Tollways Corp. (CMMTC)—operator of the Skyway—to 13 percent from two percent.

Citra Group of Indonesia controls 66 percent of CMMTC, of which 11 percent will be acquired by MPIC.

The company has also committed to invest about $123 million in the Skyway project—a third of which will be infused this year, MPIC president Jose Ma. Lim said in a briefing yesterday.

Lim told reporters after MPIC’s special stockholders meeting that the company would also buy CMMTC shares held by other investors.

CMMTC is a joint venture between Citra and the state-owned Philippine National Construction Corp. Apart from the PNCC, distressed asset manager Avenue Asia also has an 18-percent stake in CMMTC.

The MPIC term sheet with Citra group was scheduled for signing yesterday afternoon, Lim said.

The CMMTC consortium has already invested about $504 million in Skyway, which currently has daily vehicular traffic of about 180,000.

At present, CMMTC cash flow is estimated to range between P3.5 to P4 billion a year. This is expected to increase after the expansion program.

In 2008, CMMTC posted a net income of P1 billion.

The first phase of Skyway is the 9.3-km elevated expressway from Buendia, Makati to Bicutan, Parañaque, and the 13.5-km at-grade South Luzon Expressway from Magallanes to Alabang.

The second phase, currently under construction, is the 6.88-km. elevated expressway from Bicutan to Alabang.

MPIC officials said the acquisition of an economic interest in Skyway is part of its goal of building an efficient network of roads.

Also, MPIC’s unit Manila North Tollways Corp. (MNTC) is planning a P20-billion integrated rail and tollway joint venture with state-owned Philippine National Railways to link the expressways.

More companies report earnings--PNB, Metro Pacific, ABS-CBN

PNB net income rises 134%
2009 a banner year
http://beta.bworldonline.com/main/content.php?id=1445

THE NET PROFIT of the Philippine National Bank (PNB), the country’s fifth largest, more than doubled in the nine months to September, with strong revenue flows coming from loans and securities trading.

In a statement, the bank, controlled by tycoon Lucio Tan, said its net income rose to P2.11 billion as of September, 134% higher year-on-year.

PNB said this bottomline is "unprecedented."

"The year 2009 is proving to be a banner year for PNB," it said. "The bank is expected to close the year with its highest bottomline income performance ever in 12 years, now surpassing the P2 billion mark."

PNB shares closed at P23.25 apiece yesterday, 25 centavos less than on Wednesday.

PNB’s said its net interest income jumped by 30% to P6 billion, after it extended more loans. It also saw wider interest margins.

Loans and receivables totaled P113.9 billion, 24% higher year-on-year. Deposits, on the other hand, summed up to P211.1 billion, around 5% more.

Non-interest income, meanwhile, surged by half to P5.6 billion during the nine-month period, buoyed by a vast improvement in its securities trading gains.

"Net trading and investment securities gains were positive at P1.02 billion," PNB reported, "up 215% from year-ago levels partly due to favorable mark-to-market valuations of securities."

PNB’s securities trading business took a hit last year from mark-to-market valuations amid high interest rates and volatility in the financial markets. It was not the only victim, however, with most big banks reporting lower profits last year due to poor trading gains.

The bank also said it recorded a profit from its share in the net income of Allied Commercial Bank based in Xiamen, China. PNB, together with Allied Bank, also controlled by Mr. Tan, infused an equity investment in Allied Commercial this year, allowing it to gain a foothold in the Chinese market.

PNB and Allied Bank intend to merge but could not do so until Allied Bank sells its stake in a US bank. The merger would result in Allied Bank becoming a subsidiary of PNB, the surviving entity.

The US, however, has imposed strict rules against the entry of foreign banks.

===

Metro Pacific nets P2B in nine months
KRISTINE JANE R. LIU
BusinessWorld
http://beta.bworldonline.com/main/content.php?id=1420

PANGILINAN-LED Metro Pacific Investments Corp. remains on track in meeting its year-end targets after its major operations showed strong results from January to September.

Analysts however are optimistic that the company will beat its forecast as it starts to equitize earnings made by Manila Electric Co. (Meralco).

Net income of the holding company from January to September stood at P2.08 billion, significantly higher than the restated P638 million posted over last year. Metro Pacific said the results represent the contribution of its water distribution and toll operations businesses.

“Our nine-month profits underscored the significant progress which Metro Pacific has made in realizing its strategic objective of being the country’s leading infrastructure company,” Metro Pacific President Jose Ma. K. Lim said.

Metro Pacific Chairman Manuel V. Pangilinan, meanwhile, said the strong performance across all its units affirms the company’s previously announced P1.5-billion net income target for the year.

“The additional investments in Meralco and North Harbor to our expanding business portfolio serve to reinforce Metro Pacific’s position as the preeminent infrastructure company in the Philippines,” Mr. Pangilinan said.

An analyst interviewed said there is a high probability that the company will be able to beat its forecast for the year, especially since it will start recognizing profits made by the power distributor now that it holds a 14.7% stake in Meralco.

As of the third quarter however, its water distribution business Maynilad Water Services, Inc., and toll road business Metro Pacific Tollways Corp. (MPTC) still account for the highest chunk of the holding firm’s profits with each unit contributing 48% and 45%, respectively. The health care group made up the balance of 7% or P131 million.

Maynilad registered a net income of P2.33 billion during the period, compared with P1.75 billion last year after its billed volume increased by 11.6% to 257.2 million cubic meters from January to September and nonrevenue water improved by 58% from 63% in the same period last year.

The west zone water conces-sionaire has recently secured the approval of the Metropolitan Waterworks and Sewerage System to extend its concession term extension application for another 15 years.

Meanwhile, Metro Pacific Tollways reported a net income of P1.18 billion from January to September versus the P747 million reported last year, attributable to the higher-than-expected traffic reported by Manila North Tollways Corp. and the higher contribution of Tollways Management Corp. (TMC).

Manila North Tollways holds the concession to operate and maintain the North Luzon Expressway (NLEx), and is 67.1% owned by Metro Pacific Tollways. TMC operates the NLEx for Manila North Tollways, and has an interim agreement to operate and maintain Subic-Clark-Tarlac Expressway. TMC is owned 46.0% by Metro Pacific Tollways.

MPTC continues to venture in linking the network of toll roads from Alabang to Subic through the expansion of its existing concessions.

The construction of the 2.7-kilometer toll road under Phase 2 Segment 8.1, linking Mindanao Avenue in Quezon City to NLEx in Valenzuela City, is on track for completion by May 2010. This will decongest the main Balintawak entry point during peak hours of traffic.

Aside from these two units, Metro Pacific’s other portfolio includes its health care investments in Davao Doctors Hospital, Medical Doctors, Inc., owner and operator of the Makati Medical Center and Colinas Verdes Hospital Managers Corp., operator of Cardinal Santos Medical Center.

Along with sister Pilipino Telephone Corp., Metro Pacific also holds a 14.7% stake in Meralco and has recently secured a deal with Lopez-led First Philippine Holdings Corp. to acquire the latter’s 6.7% stake in the power distributor by March 31, 2010.

Early in October of this year, the Philippine Ports Authority has also awarded to a consortium led by Metro Pacific and Harbour Centre Port Terminal, Inc. the development, management, operation and maintenance of the Manila North Harbour for a period of 25 years where it plans to spend P14.5 billion for the modernization and rearrangement of the existing ports, and expansion of its operational area from 52 to 70 hectares.

Yesterday, the minority stockholders of the company approved the company’s plan to issue more than six billion common shares to parent Metro Pacific Holdings, Inc. for P3 each and the listing of the said shares in the Philippine Stock Exchange.

Following the approval, Metro Pacific is now the third-largest listed holding company with a free float of 26% from just 2% prior to the approval. It is also among the top 20 largest listed firms in the bourse.

===

ABS-CBN core net income up to P1.4 B
By JAMES A. LOYOLA
Manila Bulletin
http://www.mb.com.ph/articles/229185/abscbn-core-net-income-p14-b

The country’s largest multimedia conglomerate ABS-CBN Broadcasting Corporation posted core net income of P1.4 billion for January to September 2009, 16 percent higher than its net income of P1.2 billion for the same period in 2008.

The firm said this figure also exceeds its net income of P1.38 billion for the full year of 2008.

Net of PFRS 3 adjustments relating to the consolidation of Skycable amounting to P50 million, the reported net income of ABS-CBN comes to P1.35 billion, 12 percent more than its P1.2 billion net income for the first nine months of 2008.

For the period January to September 2009, ABS-CBN Broadcasting Corporation generated consolidated revenues of P18.34 billion, an 11 percent year-on-year growth over the first nine months of 2008.

The revenue diversification of the ABS0-CBN continues to improve as direct sales including sales of services from Skycable grew 19 percent year-on-year to P7.67 billion, contributing 42 percent to consolidated revenues.

Airtime revenues of P10.68 billion contributed 58 percent, as it grew 5 percent year-on-year. (ABS-CBN’s comparative financial results include the contributions of Skycable for three quarters of 2009 versus the 2nd and 3rd quarters of 2008).

Direct sales from core businesses in the third quarter amounted to P1.79 billion, a 6 percent year-on-year growth, bringing consolidated direct sales for the January to September period to P5 billion, P305 million or 6 percent more than it was in the same period last year.

ABS-CBN Global continued to deliver double-digit growth as its subscription revenues managed to grow by 15 percent year-on-year despite economic slowdown in most of its major markets, while Star Cinema’s three film releases during the third quarter pulled in a combined P282 million in box office receipts.

Consolidated direct sales for the third quarter including sales of services from Skycable totalled P2.7 billion, for a 6 percent year-on-year growth.

Peso may rise to 44, Phisix to hit 3,600

by Roderick T. dela Cruz
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2009/november/11/business2.isx&d=/2009/november/11
With Bloomberg

The Philippine peso is seen to rise further against the US dollar during the election year of 2010, with political risks becoming less of a factor in foreign exchange and equities in the country.

“Political risk is becoming less and less of a concern,” Paul Raymond Favila, president of the Money Market Association of the Philippines, told reporters in a news briefing at Traders Hotel in Pasay City yesterday.

The Philippine equities index, meanwhile, may rise to a record in 2010 with energy, property and mining stocks gaining the most from low interest rates, a pickup in consumer demand and economic growth, ING Investment Management Ltd. said.

The manager of the three best performing Philippine equities funds this year is holding more energy, property and mining shares than the allocation in the benchmark index, said Paul Joseph Garcia, chief investment officer at ING’s Manila unit. He’s reducing holdings of consumer, banking and telecommunications stocks.

The Philippine Stock Exchange Index may climb to 3,600 in 2010 as economic growth accelerates to 3.2 percent and corporate earnings increase between 15 percent and 20 percent, Garcia said. Macquarie Group Ltd. said last week the benchmark may reach a new high in the second half.

Favila, who is also a director of Citi N.A., said none of the presidential candidates who have the highest likelihood of winning worries the market. “The Philippines has matured economically and politically,” he said.

The trend, he said, began in 2001, when not even the subsequent protest rallies and coup attempts against the administration affected the market as much as during the Marcos or Aquino years.

However, he said the market would still watch the continuity of economic policy and stability under the next administration.

The stock index has rallied 60 percent this year, the third best performer in Southeast Asia after Indonesia and Vietnam, on expectation record-low interest rates and a 15-percent increase in government spending will help ease falling exports amid the global recession. The measure closed at a record 3,873.50 on Oct. 8, 2007.

Dalmacio Martin, senior vice president of Banco de Oro Unibank Inc., said there was a general consensus among bankers that the peso would be stronger in 2010, especially against the greenback.

“Most of the [investment] houses we talked to were saying that the peso will appreciate to about 44 to 46 against the dollar next year,” Martin said.

Bangko Sentral: Trying to kill the peso

John Mangun
Outside the Box
Business Mirror
http://www.businessmirror.com.ph/home/opinion/18434-bangko-sentral-trying-to-kill-the-peso.html

ARE you ready to pay more than P50 a liter for gasoline? When it happens, do not blame the oil companies. Don’t even blame the world price of crude oil. Blame the government and its peso exchange-rate policy.

Since the high in March 2009, the dollar has depreciated against a basket of world currencies by 15 percent. Since its low in March, the peso has appreciated against the dollar by less than 2 percent. In effect, our economic powers-that-be have decided to peg or fix the peso against the dollar at an exchange rate of about 47 to $1.

You may think that this has little impact on your wealth. Wrong. You are now paying about P6 to P7 more for a liter of gasoline than you should.

In March, the price of crude oil was $40 a barrel. Currently, crude is trading at $77 a barrel. In March, at an exchange rate of P48 to $1, one barrel of oil cost P1,920. As of yesterday, with the exchange rate at P47, a barrel of oil cost P3,619. That is an increase in peso terms of 89 percent.

We are told that the reason the price of gasoline is higher today than in March is because of the increase in the world price of crude oil. Yet due to exchange-rate polices, the increase in its price in the Philippines is greater than for our neighbors.

The Thai baht exchanged at 36 to $1 in March. Now the rate is 33 baht to $1. Converting the price of a barrel of oil based on the 10-percent appreciation of the baht, the Philippines is paying at least 10 percent more for oil than the people in Thailand. This is only because of our government’s policy.

Had Philippine financial authorities allowed the peso to appreciate against the dollar and take its natural course, we could be paying about 10 percent to 15 percent less for oil than we are now.

The rationale for keeping the peso in the narrow band of about 3-percent fluctuation is “exchange-rate stability,” according to the Bangko Sentral ng Pilipinas (BSP). This can be a valid strategy. Too much volatility is bad for business planning.

Thai baht volatility was no greater on a daily basis at any time during the March to November 2009 period than the peso. More important, any excess volatility could have been stopped easily and quickly with BSP intervention while still maintaining and allowing market forces to appreciate the peso.

The argument that the BSP has controlled the peso exchange rate to decrease wild price swings is just plain false.

The more logical reason for the BSP to keep the peso pegged at around 47 to the dollar is to give more peso value to remitted money. It is probable that remitted dollars to the Philippines would now only receive P40 to P43 for each dollar rather than the current P47 had the BSP stayed out of the market.

However, the policy fails here also. The amount of pesos received for each remitted dollar means nothing if the purchasing power of those pesos is lower. At the pegged rate of P47, you get P47 that can buy one liter of gasoline, for example. Yet at P43 to the dollar, you could potentially buy 1.10 liters of gasoline, as much as 10 percent more, as shown in the price difference between the Philippines and Thailand.

Under the BSP policy, anyone who currently receives remitted dollars gets more pesos that buy less. And the overall economy suffers because remittances are only a part of the economy. The rest of the nondollar remitted part of the economy suffers because of artificially higher prices for imported goods like oil.

Continuing to peg the peso could have disastrous effects in the future when the dollar moves another 10 percent to 20 percent lower, which is very realistic. The worrisome thing is that the drop could be very quick.

In the last week, the dollar has depreciated by 2.5 percent. The peso has appreciated by about 1.5 percent. The 1.5-percent change in a week is manageable, although some peso-dollar adjustment will have to be made if this trend continues. Eventually the peso must appreciate in comparison to the dollar-value decrease. However, the dollar right now is very fragile.

There is a strong potential for a 2.5-percent movement of the dollar against the world’s major currencies in one day. If that occurred, the Philippines would suddenly have a very much-undervalued currency which would negatively impact countless Philippine international trade and financial transactions.

Yesterday the BSP “urged emerging economies to retain the dollar as the world’s reserve currency.” Are you kidding me? Dear BSP, no one cares the slightest about your opinion. Come on. Tell the truth. Did Federal Reserve Chairman Ben Bernanke ask you to say that?

The US dollar is becoming more and more a worthless piece of paper. And it is going to get worse. The BSP reminds us that 77 percent of the Philippines’ $40 billion in foreign reserves is in dollars. Too bad the BSP did not do what India just did and convert $6.7 billion into something valuable: 200 tons of gold.

So you and I are overpaying for crude oil, the BSP is bowing to the US dollar, and the rest of the world is dumping greenback as fast as possible.

On October 7, I wrote: “As of this writing the dollar index is 76.293, the spot gold price is $1,040, the peso is 46.60 and the PSE index is 2,967. Three of these four will be significantly increased in value by the end of the year.”

The dollar index is now 74.923, gold is $1,106, the PSE is 2,995 and the peso is 46.79.



PSE stock-market information and technical analysis tools provided by CitisecOnline.com Inc. E-mail comments to mangun@email.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Wanted: 50,000 techies to man poll machines

By Kristine L. Alave
Philippine Daily Inquirer
http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20091111-235507/Wanted-50000-techies-to-man-poll-machines

MANILA, Philippines—At least 50,000 information technology (IT) people are needed for the automated elections in May, the Commission on Elections (Comelec) announced Tuesday.

Comelec Commissioner Gregorio Larrazabal said in a press briefing that the IT personnel would work for Smartmatic-Total Information Management (TIM) group, which won the P7.2-billion contract for the country’s first national electronic balloting.

The techies will help in the operation and maintenance of the 82,000 Precinct Count Optical Scan (PCOS) machines to be used in the polling.

Some of the IT employees will be deployed in the field, others in the company’s call center to respond to technical questions.

The Comelec and the Department of Science and Technology (DOST) are also training 500 IT experts for the Board of Election Inspectors (BEI), Larrazabal said.

To ensure that the operations will be smooth on election day, the poll body has mandated that at least one member of the BEI should have IT knowledge and training on how to handle PCOS machines.

The Comelec has coordinated with the local IT industry for its personnel requirements, Larrazabal said.

The Comelec is planning to field 100 IT experts to various municipalities and cities to supervise the poll proceedings.

Volunteers from the Parish Pastoral Council for Responsible Voting, the Comelec’s citizens’ arm, will also train for the project.

All the IT workers will be accredited by the DOST.

Training in January

Bonifacio Belen, Smartmatic-TIM manager, said the company last week held a workshop to develop methods on hiring and training of personnel. The company will start training the employees in January next year.

“There is no shortage of patriotic and IT-savvy Filipinos who want to be part of history,” Belen said.

Smartmatic-TIM has tapped manpower firms Placewell, Manred and Ventureslink to hire the support staff. Interested applicants are advised to send their resumés to these agencies.

Nonpartisan hires

The Comelec has directed its contractor to implement measures to ensure that employees hired are nonpartisan, Larrazabal said.

He said applicants to key positions would undergo background checks and those hired would not be assigned to their home areas.

Under the Comelec’s rules, only BEI members will handle the election and voting machines. Smartmatic-TIM employees will advise the BEI members should the machines malfunction.

Here comes jeepney’s replacement, the Beep

Roy Pelovello
Manila Standard
http://www.manilastandardtoday.com/insideNews.htm?f=2009/november/11/news2.isx&d=/2009/november/11

ABOUT half of the 400,000 jeepneys in the country may no longer be allowed to ply their routes next year following stricter registration standards, an official said yesterday.

Alberto Suansing, chairman of the Land Transportation Franchising and Regulatory Board, made the statement at the launching of the Beep, a combination bus and jeep, as an alternative to the jeepney, a modified version of the Jeep used by the US military during World War II.

The Beep was inspired by the European Gruau Microbus and is a project of Almazora Motors Corp. and Mitsubishi Motors Philippines.

“The [Land Transportation Office] has come up with new regulations on the inspection of motor vehicles, and we expect many public utility vehicles will not meet the requirements,” Suansing said.

“I would say almost 50 percent of the jeepney population will be affected.”

The LTO will require public utility vehicles—jeepneys in particular—to have speedometers, hand brakes, headlights and wipers, among other things, according to Joel Donato, head of the agency’s Motor Vehicle Inspection Service.

“We are implementing these requirements with the start of registration in January 2010,” he said.

Suansing said jeepney owners failing to comply with the new rules should start thinking of buying brand-new replacements—including the Beep.

A brand-new jeepney with a surplus engine costs around P450,000, and a new one with a new diesel engine is priced around P600,000.

By comparison, a Beep costs around P1.6 million. The Beep’s body is designed and manufactured by Almazora Motors, while the chassis with its brand-new FUSO Canter light-duty truck engine is supplied by Mitsubishi Motors Philippines. Mitsubishi says the engine complies fully with Philippine emission and safety regulations.

The Beep can carry 26 passengers, with seating for 18 including the driver and standing for eight.

“The first consideration here is safety. Some of [the jeepneys] are accidents waiting to happen, and then you have environmental concerns,” Suansing said, adding the LTO’s new requirements dovetailed with his agency’s goal of reducing the number of jeepneys on the streets and replacing them with the Beeps.

Almazora’s vice president for vehicle sales, Dante Santos, said the Beep could be the answer to Metro Manila’s worsening traffic and pollution problems.

He cited a government report saying jeepneys contribute 50 percent of the pollution in the area, and that the traffic flow there is choked “by oversized jeepneys with an excessive turning radius that usually clog the U-turn slots.”

Around 70,000 of the estimated 400,000 jeepneys in the country ply routes in Metro Manila.

==

Mitsubishi Philippines, partner launch bus-jeepney crossbreed

Patrick Everett Tadeo
Topgear
http://www.topgear.com.ph/news/mitsubishi-philippines-partner-launch-busjeepney-crossbreed



Mitsubishi Motors Philippines (MMPC) and partner Almazora Motors introduced a fresh alternative to jeepney and buses: the BEEP.

The BEEP, inspired by Europe's Gruau Microbus, is a micro bus that is suitable for Metro Manila's crowded streets--making it an ideal replacement for jeepneys and Asian utility vehicle (AUV).

"The auto industry should not only care about selling brand new vehicles but also take a lead role in improving the mass transport system," Mitsubishi Philippnies president and chief executive Masahiko Ueki said. "Since no assembler has really pursued to modernize the public transportation, MMPC as a socially responsible automotive company have collaborated with Almazora to come up with a better solution for mass transportation."

Using a FUSO Canter light duty truck chassis from Mitsubishi Philippines, Almazora Motors designed and manufactured a bus body that can accommodate 18 passengers on bench-type seats and up to eight standing commuters.

The BEEP's Mitsubishi engine complies with Euro emission standards, making it more environment-friendly than surplus Japanese engines used in today's jeepneys. Its high-roof, low-floor, and large wraparound windows make the interior roomier while reducing the driver's blind spots.

The BEEP is also fully-configurable depending on the needs of the client. Almazora executive vice president Conrad Almazora said his company can manufacture as much as 50 standard-configuration BEEPs a month, with a turnaround time of one month from order placement.

The bus-jeepney hybrid of Mitsubishi Philippines and Almazora is priced at P1.6 million, almost twice the price of an AUV. Its revenue potential, however, is more than double due to the larger seating capacity. Acquisition is also easier through bank financing.

Philippine index may rise to record in 2010, ING says

Jun Cruz
Business Mirror
http://www.businessmirror.com.ph/home/companies/18370-philippine-index-may-rise-to-record-in-2010-ing-says.html

THE Philippine equities index may rise to a record in 2010 with energy, property and mining stocks gaining the most from low interest rates, a pickup in consumer demand and economic growth, ING Investment Management Ltd. said.

The manager of the three best-performing Philippine equities funds this year is holding more energy, property and mining shares than the allocation in the benchmark index, said Paul Joseph Garcia, chief investment officer at ING Manila. He’s reducing holdings of consumer, banking and telecommunications stocks.

The Philippine Stock Exchange index may climb to 3,600 points in 2010 as economic growth accelerates to 3.2 percent and corporate earnings increase between 15 percent and 20 percent, Garcia said. Macquarie Group Ltd. said last week the benchmark may reach a new high in the second half. The measure rose 2.8 percent to 2,996.71 at the noon close yesterday, a 19- month high.

“Anything better than those numbers and we could see the index hitting a new record,” Garcia said, adding that ING prefers “names that will benefit most from low interest rates and the ongoing economic recovery.”

ING forecast a 1.4-percent economic growth and 8-percent earnings growth this year, he said. The government has forecast economic growth to range between 0.8 percent and 1.8 percent this year, after expanding 4.6 percent in 2008.

The Philippine stock index has rallied 60 percent this year, the third best-performer in Southeast Asia after Indonesia and Vietnam, on expectation record-low interest rates and a 15-percent increase in government spending will help ease falling exports amid the global recession. The measure closed at a record 3,873.50 on October 8, 2007.

Energy Development Corp., the largest Philippine producer of geothermal energy, and Philex Mining Corp., the nation’s biggest metals company, are among power and materials-related stocks that ING has been acquiring, Garcia said.

The ING Philippine High Conviction Equity Fund, the nation’s best performer with a 101-percent gain this year, had 22 percent of its portfolio invested in Philex and Energy Development at end-September. Among the nation’s developers, ING owns shares of Ayala Land Inc., Megaworld Corp., Robinsons Land Corp. and SM Prime Holdings Inc., as a new law allowing real estate investment trusts next year will boost these stocks, Garcia said.

Ayala Land and Megaworld, the two biggest Philippine homebuilders, will also gain on expectations demand for homes will increase as economic growth accelerates and the central bank is expected keep interest rates low, he said.