North Luzon Railway Phase 1 may be operational by 2012

Ramon Efren R. Lazaro
Business Mirror
http://businessmirror.com.ph/index.php?option=com_content&view=article&id=21660:north-luzon-railway-phase-1-may-be-operational-by-2012&catid=45:regions&Itemid=71

GUIGUINTO, Bulacan—The first stage of the North Luzon Railways Corp. (Northrail) system, a modern-day railway that will be running to and from Caloocan City to Clark Economic Zone in Pampanga, is expected to be operational by 2012.

This was the assessment of Zoilo Andin, president and chief operating officer of Northrail.

Northrail is a government entity tasked to build, manage and operate the railway project that is divided into four phases. Phase 1 is from Caloocan to Clark that is divided into two sections: Section 1 is from Caloocan to Malolos. Section 2 is from Malolos to Clark.

Phase 2 is a branch line to Subic, Zambales; Phase 3 is from Caloocan to Fort Bonifacio; and Phase 4 is the extension line to San Fernando, La Union.

Andin said during a press briefing on Friday afternoon at the Northrail’s Coupler Conference Room in St. Agatha Subdivision in this town, “We have gained momentum in our undertaking to build a modern-day railway system from Caloocan to Clark in Pampanga. Based on our 2009 performance and lessons learned, we are now certain of having our trains running on the 82-kilometer track from Caloocan to Clark in the next two years or so.”

He added the project was almost stopped after encountering several problems.

“After surmounting recurring difficulties encountered in previous years, our physical achievements for Section 1 in 2009 have even surpassed cumulative accomplishments since construction work commenced in 2007,” Andin said. He added that accomplishment rate last year alone was 17 percent.

He said accomplishment rate in the coming months is expected to rise dramatically because Northrail has already attained a higher degree of functional synergy among the contractors, engineers, technical and support personnel that translated to faster and effective application of engineering and construction approaches.

The train test run on its track in the Caloocan portion of the project is expected to be made in June before President Arroyo steps down from office. All civil works may be completed in the middle of 2011, barring any major problems in the construction stages, Andin said.

He said preliminary work of some tedious and critical undertakings, such as construction design and drawings, has either been completed or already being implemented.

It took some time before Northrail and its Chinese counterpart finally agreed on what designs and standards are to be used.

The project was funded through a loan by the Chinese government on the condition that a Chinese contractor, China Machinery and Equiptment Group (CNMeg), was tapped for its construction.

Andin said CNMeg and Northrail inked the agreement on Dec. 30, 2003, and signed the construction agreement later.

The design of Northrail is “rail-over-road” where the trains will be traveling above major road crossings that will allow for the continuous and uninterrupted flow of vehicular traffic.

PGMA in Batangas

http://www.youtube.com/watch?v=Qo9qmits-xk


http://www.youtube.com/watch?v=dbhtHYOwu_8

Automotive sales up 33.8% in January

J. A. D. Hermosa
BusinessWorld
http://www.bworldonline.com/main/content.php?id=6050

THE AUTOMOTIVE industry kicked off 2010 with a hefty sales growth in January, much improved from when sales flattened in the same month last year, data released yesterday showed.

Twenty car firms sold 11,763 units last month, up 33.8% from the 8,791 vehicles sold by 18 distributors a year earlier. The January growth comes to 32.7% if CATS Motors and Focus Ventures, Inc. -- not listed in last year’s report -- are excluded.

Last month’s sales were even better than the 8,809 units sold in January 2008 before the economic downturn deepened, but were less than the 13,000 monthly average seen in the last quarter of 2009 when buyers sought to replace flood-damaged cars.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) pointed to brighter economic prospects as spurring the increase.

Trucks, vans and other commercial vehicles (CV) drove sales with a 46% rise to 7,907. This segment continued to corner more than two-thirds of total sales.

Passenger car sales, meanwhile, improved by 14.3% to 3,856 units.

"To a certain extent, strong vehicle sales is reflective of a stronger economic environment," CAMPI President Elizabeth H. Lee said in a statement.

"With the robust growth of CV sales ... Filipinos are now showing more aggressiveness in either starting a business or expanding their current businesses," she added.

But despite the good head-start, CAMPI will be maintaining its 4% growth outlook for 2010 in the meantime.

"We will revise accordingly but [only when] first quarter [figures are in] to see the trend," Ms. Lee said in a text message.

Industry leader Toyota Motors Philippines Corp. remained the top seller, accounting for nearly a third of total sales. The firm sold 3,871 vehicles, up 20.9%.

Mitsubishi Motor Philippines Corp. enjoyed a 56.5% uptick to 2,411 units.

Third-placed Honda Cars Philippines, Inc. sold 1,319 units, down 11.9%.

Presidential road rage

Genalyn Kabiling
Manila Bulletin
http://mb.com.ph/articles/242692/presidential-road-rage

http://www.youtube.com/watch?v=A1eeNMr4aic


It was supposed to be a fast joy ride showcasing the modern roads built in Urban Luzon Beltway (ULB) during her administration until the bus tour encountered traffic congestion.

President Arroyo displayed her famous temper Tuesday when the road trip along South Luzon Expressway (SLEX) in Laguna to C-5 in Quezon City veered off course and encountered traffic, delaying the hour-long bus ride by more than 45 minutes.

The President’s road trip started on a high note in Calamba City, Laguna, shortly after she visited Real Elementary School where she announced the signing of the 2010 national budget.

At 10:30 a.m. in Calamba, the President boarded an airconditioned Victory Liner bus and joined the several journalists and government officials for a motorcade along SLEX to C5 as part of the ULB tour.

Mrs. Arroyo, on a week-long tour in ULB, also wanted to show the media the planned interconnection of C5 to North Luzon Expressway towards the end of the motorcade.

At first, the President, seated in the middle of the bus, was all too giddy about the growth of the Urban Luzon Beltway, praising the 99 percent completion of the SLEX that has paved the way for faster transportation of goods and people.

The SLEX, according to South Luzon Tollway Corp president Isaac David, would be fully operational by April when the toll plaza system is established.

The presidential motorcade then made its first stop along the construction of the STAR-SLEX (Southern Tagalog Arterial Road-South Luzon Expressway) interconnection.

The President and her entourage went down the bus to inspect the construction, which she ordered should be completed by end of March.

Back on the bus, the President took pride of the modern road network in the Urban Luzon Beltway, saying people could look forward to quick travel when they tour the southern provinces during summer season.

Along the way, Mrs. Arroyo also hailed the brisk business activities particularly information technology and business process outsourcing companies in Laguna, which she hailed as the country’s Detroit and Silicon Valley.

An hour into the bus ride, the President’s mood turned sour when she noticed the traffic jam along Katipunan Avenue. The traffic jam was apparently caused by the vehicles coming out from the schools along Katipunan road.

She insisted that the Katipunan road should have no intersection since it is an expressway connected to C-5 highway and immediately directed public works officials to find a solution to the traffic congestion.

A few minutes later, the President blew her top when she found out the inspection of new interconnection project between C-5 and North Luzon Expressway, the last stop of the bus tour, would be held at the end of the road project.

Mrs. Arroyo insisted that the inspection of the road project should have taken place at the start of the construction along Tandang Sora and not in Mindanao Avenue in Novaliches, Quezon City.

As a result, the President's motorcade went through traffic jams while traversing Congressional Avenue and then Mindanao Avenue. The President said the government was building the interconnection from C5 to NLEX precisely to skip the heavy traffic gridlock along Quezon City.

"We are going to waste our time in things we should not see. We should have stopped at the place where the connection begins. The construction begins there," she said, referring to the road somewhere in Tandang Sora.

"We are going to spend so much traffic in the place," she added, while her close aides aboard the bus appeared frantic over the President's latest tirade.

Half an hour later, the President's motorcade ended near the inspection site of the underpass construction along Mindanao Avenue. But the President and her entourage had to walk some 50 meters to the briefing area since the bus was stuck in the mud.

Mrs. Arroyo was then heard reprimanding her protocol staff to arrange another briefing of the interconnection of C5 and NLEX in Tandang Sora on Wednesday.

In previous years, the President also took journalists on train rides and tours on the nautical highway in an effort to project her infrastructure transportation projects. But Tuesday’s bus ride was a new tactic to attract media attention to her government’s accomplishments in the Urban Luzon Beltway.

GMA signs P1.54-trillion budget

Education, public works receive lion’s share
By GENALYN KABILING
Manila Bulletin
http://mb.com.ph/articles/242694/arroyo-signs-p154trillion-budget

CALAMBA, Laguna – President Arroyo has signed into law the proposed P1.54-trillion national budget for the year, with the education sector getting the lion's share.

In Republic Act 9970, the President also approved the P64-billion insertion made by lawmakers but on the condition new revenues should cover such expenditure.

Mrs. Arroyo inked her government's new operating budget for the year without fanfare last Monday but announced the signing of the law only last Tuesday during a visit at Real Elementary School in Calamba, Laguna.

In her budget message, the President hailed the P1.54-trillion spending measure as “culmination of the administration’s commitment to reform and responsible development.”

She said the 2010 national budget also marked “the end of years of hard work and fiscal reforms” but also “the beginning from which the next president can build on the accomplishments of this administration" since it matches scarce resources with growing requirements.”

“I signed the 2010 national budget with vetoes,” she later told reporters aboard bus tour along South Luzon Expressway to C-5 in Quezon City.

Budget Secretary Rolando Andaya Jr., however, explained that the President did not necessarily veto expenditure items but only “special provisions created special accounts or the debt cap.” “When we talk about absolute numbers, the President did not veto anything,” he said.

Andaya said the congressional earmarks worth P64.6 billion would only be released if Congress could identify new revenue measures that can support such spending. Lawmakers earlier imposed P64-billion realignment from debt service to social expenditure in the 2010 budget proposal which has not sit well on the executive branch.

“Applying fiscal discipline, the President decided that these items can only be spent or used when there are new revenue measures or available cash to support the P64 billion-expenditure,” Andaya said in a separate interview with reporters prior to the Cabinet meeting in Novaliches, Quezon City..

If Congress fails to come up with P64-billion revenue measure to cover the expenditure, Andaya said the country's deficit could expand from 3.5 to 4.2 percent of GDP “which is way beyond, way above the tolerable limit of around 3.9 of GDP.”

“At this ratio, the next administration will find it hard to balance the budget. It is also out of courtesy to the next president that we are doing this. We don’t want him to be saddled with a heavy load of unsupportable expenses right at the starting line,” Andaya said.

He said the President wants to keep the deficit level to around 3.5 percent to 3.6 percent of GDP.

Andaya said the 2010 national budget, which is 8 percent or P115 billion higher than last year’s P1.426 trillion budget, seeks to balance social responsibility with fiscal responsibility.” He acknowledged such level could prompt a deficit of P233.4 billion “but still within the manageable range of 2.8 percent of the GDP.”

“In this budget, we are saying that we will not break our vow to ramp up social spending, but in doing so we will not be breaking the bank,” he said.

By agency, the biggest recipient of this year’s budget is the Department of Education (DepEd) with a budget of P174. 9 billion.

Next is the Department of Public Works and Highways (DPWH) with P135.6 billion, followed by the Department of the Interior and Local Government (DILG) with P66.45 billion, and the Department of National Defense (DND), P57.84 billion. To sustain food security programs, the Department of Agriculture (DA) is fifth in the list of top recipients, with a budget of P41.17 billion.

The candidates are not ready to lead

John Mangun
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=21623:the-candidates-are-not-ready-to-lead&catid=28:opinion&Itemid=64

Global polities and global economics seem so very far away from our daily lives. Attention in the Philippines is, of course, centered on the upcoming national elections.

The presidential candidates are parading to the various forums, choosing to appear when they believe it will gain them some positive coverage.

I realize I have said this so many times that it is becoming boring, but our leaders seem to be completely out of touch of what is going on in the rest of the world. The closest they seem to get to some understanding of the outside world is only when it might affect Filipino overseas workers’ jobs, as in the case of the Dubai debt failure. I find it amazing that someone who wants to lead the Philippines does not have an adviser on the staff that can bring the candidate up to speed about the dynamics of the global economic situation and what it means to the Philippines.

Over the last week, the peso depreciated against the dollar by about 50 centavos. The comments from “experts” and candidates alike had no basis in reality.

The euro came under massive selling last week in what can only be described as an attack on that currency. This is completely reminiscent of the attack on the British pound by George Soros nearly 20 years ago. Contrary to what we believe in Asia, there are only three major currencies in the world; the US dollar, the euro and gold. Nothing else—yen, yuan, Swiss franc—matters.

Last week’s fall of the euro created a rising dollar because hundred-billion-dollar hedge funds are able to borrow dollars for zero interest and sell euros. Late in 2009, a slow, steady attack on the dollar created rising gold and rising euro.

The peso fell last week because local bank currency traders reacted as they always have when the dollar goes up in the international markets: sell the peso. These traders do make money for their employers but, unfortunately, they too do not have a clue about the financial world of 2010.

The insular, provincial and narrow mindset is pervasive.

One candidate for vice president has a great idea every couple of days to provide another government program to end poverty, save the environment or increase the “quality of life for all Filipinos.” No mention, of course, is ever made how the government would pay for all these blessings. The reason for that is, previously, the government could borrow a ton of money from the international bankers because they wanted to loan to the Philippines as the interest rates we were paying were much higher than in the West. Those days are over. Regardless of what you might think, global banks are out of the lending business. Now what they do is speculate because the profit potential is great and, more important, if their gambling fails, their governments will bail them out.

Despite the impression you may get from the newspapers, the government has significantly increased its borrowings from the domestic market, which is one of the reasons this economy has stalled. Local banks would much prefer to lend to the Philippine government rather than to you to expand your business. You are too risky.

Every new government program that takes money out of the economy is counterproductive because the private sector can do more in the long term to increase the standard of living than the government could ever do. This VP hopeful does not have a clue about the financial world of 2010.

Global warming/climate change (GW/CC) is a hoax without any unmanipulated, unbiased or verifiable data to support its claims. The recent summit meeting in Copenhagen had nothing to do with this discredited theory. It was about Western governments raising taxes to bail out a completely failed banking system and complexly failed government financial policies. The people would not accept new taxation so the West hoped that the GW/CC scare might get the sheep into paying more.

Notice what happened. Governments like the Philippines, China and India understood that new taxes in the West would further hurt non-Western economies. So they demanded that they either be excluded from the new rules (China, India) or get a piece of the money pie (Philippines). The Western leaders that were screaming GW/CC doom suddenly walked away. Raising taxes to fight GW/CC and then giving that money to Manila was not part of their global plan. And I am still getting political e-mail telling me that Antipolo will be beachside property soon unless you pay more taxes to “fight” GW/CC.

Candidates jumping to take credit for the Philippines’ success in outsourcing are clueless, too. The No.1 reason outsourcing is thriving in the country is you. Because you did not feed your children the nonsense
nationalism that speaking English was anti-Filipino. Because you paid for that computer and Internet. Because you encourage a broader global view. And if you asked any of the candidates about the future of outsourcing and, specifically, what the country should do better, I doubt if you would hear one creative thought like using publicly owned broadcasting stations to actually teach better English a few times a day.

I will not predict who will lead this nation for the next six years, but I will guarantee you this: Before the new administration has been on the job for one year, there will be another global financial crisis that will make 2008/2009 seem gentle. Based on what they are saying and doing today, my confident prediction is that they will not be ready for it.



E-mail comments to mangun@gmail.com. PSE stock-market information and technical analysis tools provided by CitisecOnline.com Inc.

NDC takes ownership of ailing MRT-3

Joyce Pangco Pañares
Manila Standard
http://www.manilastandardtoday.com/insideNews.htm?f=2010/february/8/news2.isx&d=2010/february/8

PRESIDENT Gloria Arroyo has ordered state-run National Development Co. to acquire the shares of two state banks in Metro Rail Transit Corp. worth $750 million to speed up the government’s takeover of the 17-kilometer MRT-3 line.

She said NDC will buy the shares owned by Land Bank of the Philippines and Development Bank of the Philippines, and by using the proceeds from a bond float or money raised from loans that come with a sovereign guarantee.

Finance Undersecretary Rosalia de Leon said NDC would need about $300 million for the first stage of the acquisition, which was expected be completed in the first quarter.

The MRT-3 line runs to Taft Avenue in Pasay City from North Avenue in Quezon City and operates under a deal that expires in 2025.

But the build, lease and transfer agreement had been mired in conflict, including questions over the expansion of the train system and the government’s 48-peso subsidy to every passenger using the line. That conflict prompted the state’s takeover of the train system.

DBP and Land Bank own 80 percent of MRT Corp., the company operating the train system, while the remaining 20 percent is held by other banks that had bought MRT bonds for a stake in the company.

DBP president Reynaldo David said his bank and Land bank held equal stakes in Metro Rail Transit Corp., which was formerly owned by the Sobrepeña-led consortium that built the line.

“NDC on its own, or in partnership with other entities, is hereby directed to acquire economic interest in MRT Corp. in the form of shares,” Mrs. Arroyo said in Executive Order 855.

“NDC is also authorized to issue bonds or request loan facilities in order to acquire and purchase the shares, provided that the cost to NDC of such borrowings will not dilute the savings of the national government envisioned from such acquisition.”

The President authorized the Finance Department to issue a sovereign guarantee for NDC’s borrowings, and at the same time ordered NDC to do due diligence on how much the purchase price of the shares should be. The Commission on Audit should verify the price, she said.

“The purchase price shall be mutually agreed upon among the NDC, Land Bank and DBP, with the end view of obtaining savings for the government,” Mrs. Arroyo said.

She ordered the Finance and Budget Departments to ensure that NDC’s borrowings are repaid, and to facilitate the acquisition of the shares by gaining Monetary Board approval.

She ordered officials to “review and amend” the build, lease and-transfer agreement on the MRT- line so NDC could operate the railway and to privatize it if necessary.

Manila Water in joint venture to supply water to Indian states

J. B. F. Santos
BusinessWorld
http://www.bworldonline.com/main/content.php?id=5955

EAST ZONE water concessionaire Manila Water Co., Inc. has entered into a partnership with an Indian company to provide water services in a number of states in India.

In a disclosure, Manila Water said it had signed a joint venture agreement with Jindal Water Infrastructure Ltd. “which [embodies] their commitments to jointly develop new business in the field of water supply, wastewater and other environmental services in the states of [Rajasthan], Gujarat and [Maharashtra] in India.”

The two companies will form a joint venture, the disclosure said. Key officers of both parties will compose the joint venture company’s management and project team “where business development initiatives shall be carried out through a pre-agreed development project.”

“Though this partnership, Manila Water and [Jindal Water] seek to leverage on their key strengths and core competencies and eventually provide synergies in establishing a regional presence in India,” Manila Water said.

Jindal Water is part of the O.P. Jindal Group in India, a $10-billion business conglomerate.

Manila Water officials did not return calls for further details on the project.

The utility has been aggressive in its expansion plans, although it withdrew from a bidding for bulk water services in Iloilo last December as “conditions the company requires for such investment were not present.”

In September 2009, the Cebu provincial government accepted a joint venture proposal by Manila Water for a bulk water supply project.

Manila Water also completed the acquisition of AAA Water Corp. that month. AAA Water owns 70% of Laguna AAA Water Corp., a joint venture with the province of Laguna which has a 25-year concession for water supply services to Sta. Rosa and the towns of Biñan and Cabuyao in Laguna.

Manila Water also has a joint venture deal with the government to run the water utility in Boracay, one of the country’s top tourist destinations.

Manila Water provides water and wastewater services to nearly six million people in 23 cities and municipalities covering the east zone concession of Metro Manila, which includes Pasig, Mandaluyong, Marikina, Taguig, Pateros, and parts of Manila and Quezon City.

The publicly listed utility secured last year regulatory approval to extend by 15 years its east zone concession to 2037.

Profits of Manila Water grew by 14% in the third quarter of 2009 to P2.3 billion from P1.99 billion on account of higher revenues.

Shares in Manila Water declined by 1.61% to P15.25 apiece yesterday.

Challenges facing the new president

Manny Villar
The Entrepreneur
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=21567:challenges-facing-the-new-president&catid=28:opinion&Itemid=64

I AM taking temporary leave from this weekly column, in line with the policy and rules on campaigning being implemented by the Commission on Elections (Comelec). And so this will be my last piece before voters go to the polls to choose the next president of the Philippines.

I am presenting the challenges that the new Chief Executive of the land will face beginning in the second half of 2010, particularly with respect to the economy.

True, the prospects for growth for the Philippine economy are a lot brighter this year than in 2009, when it closed below 1 percent in terms of gross domestic product (GDP).

Standard & Poor’s (S&P) has projected that the Philippine economy will grow by 3.7 percent this year, a significant jump from the drowsy 0.9-percent growth last year, and higher than the government’s target of 2.6-percent to 3.6-percent growth.

S&P cites sustained growth in domestic consumption, fueled by remittances from overseas Filipinos, as one of the country’s strengths, which offset the impact of the decline in exports.

The government is now considering raising its target for GDP growth for 2010, as exports have started to recover, and remittances continue to increase. Add to that the projected recovery of the global economy.

That’s the good news, and that may help the next president in coping with what I consider as the most serious and immediate challenge facing his administration: the fiscal deficit.

Official figures have not been released, but estimates point to a deficit of more than P290 billion for 2009, a historical high, following the P210.7-billion deficit recorded in 2002.

The huge gap between revenue and spending has compelled the government to postpone its goal of balancing the budget to 2013 (the original target was 2008) under the Medium-Term Philippine Development Plan.

On the surface, the easy and quick way out of the fiscal hole is new taxes, but that approach is both narrow-minded and counterproductive and, in the end, self-defeating. And the reason is that raising taxes deters new investments and discourages economic activities, which, in turn, reduce tax revenues.

I don’t want to say categorically that there should be no new taxes. However, if I will win the presidency, I will consider raising taxes as a last resort. That is to say, I will exhaust all options to maximize collections from existing taxes before I will even consider imposing new ones. This is a commitment I know I can keep, and I will.

Another serious challenge facing the new president is increasing unemployment reported at 7.1 percent last October. The actual figure is probably higher, and I also believe that underemployment is even bigger.

I mentioned the fiscal-deficit problem first because solving it will provide the government the resources to tackle the unemployment and underemployment problem. For with more revenues the government can be more aggressive in stimulus spending—which creates jobs directly and encourages private-sector activities that also provide
employment.

While I mentioned that our growth prospects, in general, are brighter this year than last year, agriculture, which feeds majority of our people, is still reeling from the impact of last year’s disasters. Weather experts are predicting the El Niño phenomenon this year, which means water shortage in contrast to last year’s massive floods.

The next president must move fast to help farmers recover from their losses caused by typhoons Ondoy and Pepeng (in a previous column I suggested direct cash transfers to farmers who lost their crops) and to prepare for the anticipated drought. The first task should be to repair agricultural infrastructure that were damaged or destroyed, like irrigation systems (which will also build up water supplies to cope with El Niño). As much as possible, the manpower requirements for these activities should come from the rural areas, to generate income for farmers while waiting to harvest new crops.

Next, we have the elections during which we will be doing an experiment on a new system: automation. Criticisms and concerns have been raised since the start of the bidding for the company that will install the facilities for automated elections. Actually, automation is limited to counting of votes and transmittal of results, as voters will still use pens to choose their candidates from the ballot.

The latest, of course, is the reported shipment into the country of 5,000 jamming devices that could be used to prevent electronic transmittal of election results. I have heard assurances from the Comelec, the contractor for the election automation and telecom providers that they will be able to cope with this threat.

I hope they do, and that the elections will be clean, both in the national and local levels. Otherwise, it will be a big headache for the economy. Worse, it may lead to a political crisis.

Then, we have the Mindanao problem, not only the insurgency, but also the peace and order situation in southern Philippines.

Add to that a skeptical bureaucracy. Many of the officials and employees of the government will adopt a wait-and-see attitude, and will be wary of the new CEO. That’s understandable. So I believe the new president must promptly move to relay his agenda to the bureaucracy and enlist their cooperation and support toward that agenda.

Traditionally, it is said that a new administration enjoys a honeymoon before it settles down to work. This time, the honeymoon may just be a period during which businessmen give the new president the benefit of the doubt.

Considering the serious challenges and the magnitude of the tasks facing the government, I don’t think the new president will have a honeymoon. He must start working as soon as he takes his oath of office.

As I said before, there’s no time for on-the-job training. The new president must hit the ground running on Day One.

So, let’s choose our country’s CEO very well.



You may send your comments/feedback to mbvillar_comments@yahoo.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it .

LBP’s profit hits P6.76B; assets balloon to P510B

Erik de la Cruz
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=21588:lbps-profit-hits-p676b-assets-balloon-to-p510b&catid=25:bankingandfinance&Itemid=61

State-owned Land Bank of the Philippines (LandBank) posted a record-high net income of P6.76 billion and expanded its asset base to P510.64 billion in 2009, fortifying its rank as one of the country’s top five banks.

In a statement on Monday, LandBank said its net profit in 2009, which was 35 percent higher compared with the 2008 figure, topped by 22.909 percent the original target of P5.5 billion. Its profitability boosted its return on equity to 15.7 percent.

The improved profit reflected the “significant” growth in resources and deposits, it said.

“Amid the economic challenges and the spate of calamities that hit the country, 2009 proved to be another banner year for LandBank,” said Gilda Pico, LBP president and CEO. “With prudent management and a clear institutional focus, we were able to register a solid performance last year.”

Driven by continued increase in income from loans and investments, the bank’s top-line figure reached P31.4 billion, reflecting an 18-percent increase over the previous year.

The bank—the fourth-largest local bank in terms of assets, loans and deposits at the end of September 2009—posted an 18-percent increase in total assets over the previous year.

Its deposit base expanded 19 percent to P396.7 billion, while capital accounts grew 34 percent to P47.82 billion.

Regular loans increased 9 percent to P194.7 billion.

“These results further strengthen our financial standing, making LandBank well-positioned for continued growth in order to support our priority sectors,” Pico said.

In an interview in January, Pico said the bank was looking to boost its bottom line this year to P7.2 billion. Interest income should remain robust this year, she said, after the bank booked more loans in the past year.

The bank also planned to beef up its capital to be able to lend more this year.

Pico had said the bank would revive its plan to sell up to $150 million in hybrid Tier 1 notes within the first quarter. The capital-raising exercise was approved by the central bank in 2008, but was delayed due to the global financial crisis.

Hybrid notes are a debt instrument but have equity-like features, making them acceptable as Tier 1, or core, capital under the internationally accepted capital-adequacy framework of the Basel II accord.

LandBank has tapped Deutsche Bank and Citigroup to manage the debt issue.

According to Pico, proceeds from the notes sale will likely lift LandBank’s capital-adequacy ratio by about two percentage points from between 17 percent and 18 percent reported before the end of 2009. This level was already well above the minimum regulatory requirement of 10 percent.

PNB’s net income doubles to P2.2 billion in 2009

Erik de la Cruz
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=21589:pnbs-net-income-doubles-to-p22-billion-in-2009&catid=25:bankingandfinance&Itemid=61

PHILIPPINE National Bank (PNB) reported a net income of P2.2 billion in 2009, double the figure it posted in 2008, and on Monday said it was looking to deliver a more solid performance this year as it gets bigger and stronger with its possible merger with Allied Banking Corp.

“Strong gains in its core businesses, improvement in asset quality and higher operating efficiencies drove the bank’s banner performance in 2009,” PNB, formerly government-owned but which is now controlled by businessman Lucio Tan, said in a statement.

PNB closed trading on Monday unchanged at P21 after dropping to its lowest at P20.75 on December 22, 2009. It hit its peak at P24.75 on December 29, 2009.

The bank, which is controlled by businessman Lucio Tan, said its net interest margin rose 18 percent to P7.8 billion on increased lending, while net gains from trading and investment securities hit P1.4 billion following the improvement in mark-to-market valuation of securities held for investment.

In a filing posted on the web site of the Philippine Stock Exchange, PNB said Tan is the beneficial owner of 462.70 million PNB shares, or 69.868 percent. His holdings are listed in the name of various corporate stockholders, which belong to the Tan group of companies. The list also shows foreigners owning 43.748 million shares, or 6.61 percent, which are held by Standard Chartered Bank as depository bank or record stockholder.

The market value of these investments was significantly eroded in 2008 when the global financial crisis rattled investors.

PNB expanded its loan and investment portfolios and participated as either lead or coarranger of several landmark debt issuances of big-name companies and the government in 2009.

The bank said its consumer-loan portfolio also grew “briskly” as it actively marketed its auto, housing and multipurpose loan products.

Its deposit liabilities rose 7 percent to P215 billion as of end-2009. Its offer of five-year long-term negotiable certificates of deposits in March raised P3.25 billion in additional funds.

PNB also launched last year medium-term dollar and peso time deposit products and renminbi savings and time deposit products.

Boosting the bank’s top and bottom-line figures were P1.9 billion in miscellaneous income, which improved 22 percent due largely to increased revenue from the sale of foreclosed properties.

In line with its prudent risk-management policies, PNB made additional provision for impairment and credit losses, pushing its nonperforming-loan (NPL) coverage ratio to 88 percent, from 82 percent in 2008.

Its NPL ratio further dropped to 5.9 percent as of end-2009, from 8.5 percent a year earlier and from more than 50 percent several years ago before it underwent a government-supported rehabilitation program.

The bank’s consolidated resources grew 3 percent to P284.5 billion. Aside from increased asset allocation toward loans, it built up other earning assets, including a P2.8-billion equity investment in Allied Commercial Bank (ACB) in Xiamen, China.

The asset growth, it said, came from the expansion in deposit base (7 percent) and stockholders’ equity (9 percent).

PNB also said its capital-adequacy ratio remained at 19 percent as of end-2009, well above the minimum regulatory requirement of 10 percent.

The bank said it expects to finally merge this year with Allied Bank, which Tan also owns, after the merger has finally hurdled regulatory and legal impediments. With the merger, PNB, as the surviving entity, expects to become the fourth-largest private local bank.

Legal issues have prevented the two banks from merging their operations, including the need for Allied Bank to divest itself of 28-percent equity interest in California-based Oceanic Bank before merging with PNB, which is required under US banking regulations.

Omar Byron Mier, PNB president and CEO, last month said the Tan group was hoping to complete the share sale by the middle of this year.

PNB was upbeat on prospects for 2010, saying it “expects to further build up on its solid achievements the past year [and] looks forward to the consummation of its legal merger with Allied Bank.”

“This [merger] will further fortify PNB’s franchise and enable it to better take advantage of the business opportunities in the new decade,” it said.

Preparing for the next administration

Sen. Edgardo J. Angara
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=21617:preparing-for-the-next-administration&catid=28:opinion&Itemid=64

Last week marked the end of the third regular session of the 14th Congress, which will reconvene in May but only as a canvassing board of the presidential and vice-presidential election.

According to Standard & Poor’s latest report “Asia-Pacific Sovereign Report Card: 2010 Will Be Testing for Policymakers,” this year’s presidential election is crucial to the Philippine economy. The next administration’s priorities, especially with regard to fiscal reform, will determine whether foreign and domestic investment will flourish.

But while the credibility and capability of the next administration are certainly pivotal, its success equally depends on what they’re given to start with. Public policymaking, after all, never starts with a clean slate, but builds on the successes and challenges of the past.

During the 14th Congress we endeavored to lay down the groundwork for sustainable economic growth, with particular focus on banking and financial reform, and on science and technology.

The 2010 national budget sets out a second stimulus package that focuses on sustaining growth through green technology.

Throughout the 14th Congress, we have enacted measures that will strengthen the financial system and build up our capital market.

We shielded our financial system from the strains of the financial crisis through the charter reforms of two key financial institutions: the Philippine Deposit Insurance Corp. (PDIC) and the Pag-IBIG Fund. We amended the PDIC charter to expand and extend its protection to bank depositors, providing wider deposit-insurance coverage, from P250,000 to P500,000. This boosted public confidence in the local banking system amid the global financial crisis. The Pag-IBIG Fund Charter was also amended to allow it to provide more loans for the huge housing backlog. The amendments restored the fund’s tax-exemption privilege, granted its board of trustees the power to set contribution rates, and provided Pag-IBIG employees a compensation plan comparable with the ones prevailing in the private financial sector.

We have also introduced measures to deepen capital markets in the country, through the Personal Equity Retirement Act, or Pera, and the Real-Estate Investment Trust (REIT). Pera is a pension scheme that supplements existing government pension plans, and aims to encourage Filipinos to save more by providing tax incentives to its contributors, such as income-tax credits equivalent to 5 percent of total Pera contribution, and tax exemptions in the income and eventual distribution of the Pera. Pera then channels these domestic savings into financial instruments. The REIT, on the other hand, is a stock corporation that invests in income-producing real-estate assets such as apartments, office buildings, warehouses and the like. It allows the direct returns of real estate in a securitized form by providing a structure for real-estate investments similar to how mutual funds manage stock investments. The introduction of the Reit will hopefully increase investments in realty assets, and allow both large and small investors to invest in real estate.

The “Preneed Code and the Credit Information System” are also now in place. The former establishes rules to govern the operations of preneed firms and provide protection to consumers, while the latter gathers credit information from financial institutions such as banks, credit-card companies and government lending institutions, and makes it available to lenders. Armed with reliable credit information, lenders can now manage credit risks better, which, in effect, can lower the cost of credit and reduce the reliance on physical collateral. Its greatest benefit is making credit more available, especially to small yet responsible borrowers, as their good track record in paying their obligations will be made known to the financial institutions.

Congress also passed the Business Recovery and Insolvency Act, which creates a more systematic framework for insolvency proceedings and provides equitable treatment of all parties involved in financial restructuring or rehabilitation.

Policy proposals recommended by the Congressional Commission on Science, Technology and Engineering (Comste), which I chair, have received budget allocations for 2010. These include the Renewable Energy Research and Development (R&D) Institute and the Philippine Industrial R&D Institute, research institutions that will spur R&D and link it to industries to produce innovative products and services.

Yet another Comste proposal allotted funding is the National Telehealth System, which, through information and communications technology, will allow long-distance consultation with experts in the Philippine General Hospital. An electronic health record system for poison and trauma patients will also be developed to provide relevant information and health education to the public, and facilitate continuous learning for health professionals. The National Telehealth System will eventually bring the best health care to the most remote barangays, and bridge the urban-rural divide in health care.

Another is a Disaster Management Center, in order to manage risks and prepare the populace and public officials to cope with disasters. Typhoons Ondoy and Pepeng and Haiti underscore its national urgency. But we didn’t neglect social protection, we have passed laws that provide social safety nets, especially in response to the economic crisis and the typhoons last year. We enacted a P12-billion emergency fund, intended to rehabilitate areas destroyed and damaged by Ondoy and Pepeng in 2009 and those by Frank in 2008.

We have passed a salary-standardization law, which substantially increased salaries of government employees.

And the Expanded Senior Citizens’ Act of 2009 now awaits the signature of the President. By exempting senior citizens from the value-added tax, the expanded Senior Citizens’ Act will allow them to fully enjoy the discounts granted to them by the Angara Law.

E-mail: edgardo_angara@hotmail.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it . Web site: www.edangara.com.

PGMA to launch 'legacy of accomplishment' tour of Luzon Urban Beltway Super Region

http://www.gov.ph/index.php?option=com_content&task=view&id=2002893&Itemid=1

LIPA CITY, Batangas – President Gloria Macapagal-Arroyo continues her “legacy of accomplishment” tour of her Super Regions program by appraising this time, the Luzon Urban Beltway, during her visit to this province tomorrow (Monday, Feb. 8).

The Super Regions program, which according to the President was designed to spread development away from an inequitable concentration in Manila, is composed of the North Luzon Agribusiness Quadrangle, Tourism Central Philippines, Agribusiness Mindanao, Cyber Corridor and the Luzon Urban Beltway.

The President had launched the tour of the Super Regions beginning with the NLAQ in Batac, Ilocos Norte last month and had recently wrapped-up her visit to the “next wave cities” of the Cyber Corridor last week. Tomorrow, the President will launch the LUB Super Region tour at the University of Batangas Campus here.

The LUB Super Region is composed of the southern part of Central Luzon, the entire Metro Manila, CALABARZON, and half of Region IV-B, specifically the islands of Mindoro and Marinduque, which are the country’s bases of industry, manufacturing, and trade and commerce. It is one of the five (5) Super Regions created by the President in 2006 pursuant to Executive Order No. 561.

After the launching ceremony, the President will proceed to the Batangas Seaport to conduct a windshield inspection of the completed Batangas Port Development Project (BPDP), an undertaking aimed at converting the Batangas Port into a major international container terminal.

She will then proceed to the Philippine Ports Authority Building located within the Batangas Port where she will be briefed on the BPDP.

The completed Batangas Port Development Project (BPDP), which consists of Phase I (domestic) and Phase II (international) will serve the Mindoro Island and other islands within the economic range but will respond to the demand of the burgeoning trade and commerce resulting from the regional developments. The port is expected to complement the Port of Manila.

From the Batangas Port, the President and her convoy will traverse the 42-kilometer long Southern Tagalog Arterial Road (STAR) to Sto. Tomas, also in Batangas, to personally inspect the on-going construction work that will link the STAR to the South Luzon Expressway (SLEX) once completed.

The construction work includes:

Scope of Work	Description	Cost	Status
1.   Original	•   Construction of 19.74km	P 1.5 B	•  Completed and open
	2-lane (southbound) expressway		to traffic in April 2008.
	from Lipa City to Batangas City
	(Stage 2)		•  Currently in operation
	•   Operation and maintenance of
	the entire 41.90 kms STAR from
	Sto. Tomas to Batangas City
2.  Additional Works	•   Construction of a new toll Plaza	P 53.7 M	•  30% - Accomplishment
	at Sto. Tomas.
			•   Scheduled  for completion
	•   Construction of two (2)	P 19.48 M	in May 2010
	pedestrian overpasses at
	Pakalat and Malainen
	•   Improvement of the STAR Rotonda	P21.23 M
	at Balagtas

Smartmatic-TIM readies measures versus signal jammers

http://www.gov.ph/index.php?option=com_content&task=view&id=2002898&Itemid=2

CEBU CITY, Feb. 8 (PNA) - An executive of Smartmatic- Total Information Management (TIM), winning contractor of the country's first automated elections, said they are working on contingency plans to prevent signal jammers from disrupting the May 10 elections.

Bonifacio Belen, regions manager of Smartmatic-TIM, said they are coordinating with the Commission on Elections (Comelec) and the police in creating contingency plans for security.

Part of the plan is to search the areas near polling precincts thoroughly, he said.

Belen visited the mock elections Saturday in the Bulacao Community School in Cebu City.

Election season goes into high gear on Tuesday, when the official campaign period for national candidates begins.

But the Comelec still has to ease worries about the security and credibility of election results.

All nine test sites in last Saturday’s mock elections managed to transmit to the Comelec head office within two hours, but some areas suffered from unstable cell phone signals.

Among these areas was Barangay Mabini, a mountain barangay of Cebu City. Bulacao, in contrast, was the first area nationwide to send its results.

The National Telecommunications Commission recently banned cell phone signal-jamming devices, which could interfere with the transmission of election results.

Belen assured signal jammers are easy to locate, especially in areas where cell phone transmission signals abound.

A loss of signal, which cell phones indicate, can alert the authorities to the presence of a jammer nearby.

A signal jammer can work within a 50-meter radius and looks like a small box with two 2.5-inch antennas.

Comelec officials have previously assured they are ready to deal with the threat of jammers.

The success of the mock elections apparently buoyed the poll body’s spirits.

The head office “congratulated Cebu for being the first to transmit,” said Sarno.

“Everything went smoothly,” said lawyer Edwin Cadungog, Comelec Cebu City south district election officer.

Barangay Bulacao sent the earliest results nationwide, at 9:08 a.m. Ten minutes after the canvassing center at the Cebu City Hall received these results, it sent these to the Comelec Central Office.

But Barangay Mabini’s results reached the Comelec head office nearly an hour and 15 minutes later, because of signal problems. (PNA)

Philippine fertility rates continue downward trend

ECFL Media Bulletin Number 7

Data from the United Nations show that during the period from 1995-2000 the Total Fertility Rate in the country was 3.64 children born per woman.

From 2000-2005, the number of children born per woman went down to 3.24; and from 2005-2010, it was to further drop to 2.79.

Thus, from the Tenth to the Fourteenth Congress while lawmakers were trying to legislate the Population Management/Reproductive Health bill in its various versions, fertility rate was already declining.

When the Fifteenth Congress opens, the projected children per woman would be down to a precarious 2.33. Passing a population control/reproductive health law would further cut down the fertility rate and put the country below the required number of births (2.1 children per woman) needed for the population to replace itself.

Power in Luzon assured

Mia Gonzales
Business Mirror
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=21578:power-in-luzon-assured&catid=23:topnews&Itemid=58

POWER-sector players in Luzon have assured Energy Secretary Angelo Reyes of uninterrupted power supply until June, Malacañang said on Sunday.

Deputy Presidential Spokesman Gary Olivar also said in a radio interview that Reyes will meet with other groups in the Visayas and Mindanao to secure the same commitment.

“Secretary Reyes asked me to convey to the press that he has already met with the power sector in Luzon, including the generators, the transmission and the distributors in the island of Luzon. And they promised him that they will take steps to make sure that there will be no red, or even yellow, alert until June or until the end of elections at the very earliest,” Olivar said.

He said Reyes is setting meetings with power-industry representatives in the Visayas and Mindanao to ask for a similar commitment.

Olivar said the efforts of Reyes are hoped to put to rest fears of a failure of elections should power outages suddenly disrupt the country’s first-ever national automated elections.

“Hopefully with similar commitment from the Visayas and Mindanao power sectors that there would not be any brownout, there would not be any risk of a brownout under a yellow alert at least until after the elections in May,” he said.

As for the revival of the Bataan Nuclear Power Plant (BNPP), which is seen as a means to lower power rates in Luzon, Olivar said Malacañang has no official position on the matter because it has not received any formal proposal on it.

He said that if the bill related to the BNPP would not prosper during the President’s term, it would be up to the next leadership to deal with it.

Gov’t earmarks up to P48 million for mines’ rehab

KJRL
BusinessWorld
http://www.bworldonline.com/main/content.php?id=5895

THE MINES and Geosciences Bureau (MGB) has programmed some P48 million to be spent this year for the ongoing rehabilitation of the Bagacay copper mine in Western Samar and to conduct feasibility studies on five other inactive mines that pose "great risk" of pollution.

Rodolfo L. Velasco, Jr., officer-in-charge of MGB’s Mining Environment And Safety Division, said in an interview on Friday that half of the P42 million-P48 million budget this year will go to the Bagacay mine, which topped the Department of Environment and Natural Resources’ priority list for mine rehabilitation.

"[The goal] is to target at least five new areas this year for... assessment if they can be rehabilitated or not. We will conduct a risk assessment, among others, on these five mines and see if we can replicate what we are currently doing in the Bagacay mine," Mr. Velasco said.

The five abandoned mines that will be looked into for possible rehabilitation will come from the seven priority areas -- out of the 21 abandoned mines -- that had been identified by US-based environmental consultancy firm Tetra Tech EM, Inc. as the ones posing "great risk of pollution."

Aside from the Bagacay mine, the priority list includes Consolidated Mines in Marinduque, Quicksilver mine in Palawan, Black Mountain’s Basay mine in Negros Oriental, Thanksgiving Mine in Western Minolco, and Black Mountain mines in the Cordilleras.

"We want to identify if the minerals [in the five mines that we have chosen] have already been exhausted and are no longer profitable for mining. Then we can go and see what kind of intervention is needed," Mr. Velasco said.

But since the Bagacay mine poses the highest pollution risk, MGB deemed it necessary to make it the model for the other mines.

Mr. Velasco said the goal is "to convert the area to its near-possible original state" through reforestation.

He said a team from the Ecosystem Research and Development Bureau in Los Baños, Laguna, is now identifying the right species that can survive on Bagacay’s soil.

"The rehabilitation of the Bagacay mine, [which started in 2007], can already be completed by 2012," Mr. Velasco said.

The Bagacay copper and pyrite mine, occupying 113 hectares of land in Samar, was used to be run by mining companies Marinduque Mining Industrial Corp. (1956-1985) and Philippine Pyrite Corp. (1986-1992).

The Privatization Management Office of the Department of Finance then took over the mine after Philippine Pyrite abandoned the area.

In 2005, the bureau found that dilapidated structures and tailing dams, as well as a buildup of acid mine drainage, could flood the area with toxic sludge. Locals have already blamed the mine’s tailing for pollution of the Taft River in Eastern Samar, one of Samar’s biggest rivers.

But while the other mines are still awaiting the bureau’s feasibility study, Mr. Velasco said the Palawan local government has already started the rehabilitation of Palawan Quicksilver. The plan is to convert the area into a sanitary landfill, he said.

Domestic air traffic increases in 2009 -- CAB

E. N. J. David
BusinessWorld
http://www.bworldonline.com/main/content.php?id=5896

PASSENGERS on domestic flights rose 25% due to strong domestic tourism in 2009, as local cargo grew 8%, data from the Civil Aeronautics Board (CAB) released over the weekend showed.

Specifically, the number of domestic air passengers rose to 14.7 million from 11.8 million in 2008, as airlines increased the number available seats by a fourth to 18.96 million from 15.13 million. Domestic air cargo rose to 148 million kilograms from 136 million kg, the same data showed.

In an interview on Friday, CAB Executive Director Carmelo L. Arcilla attributed the increase in domestic passengers to more leisure travels by locals. "The increase is really due to the fact that we have stronger domestic tourism now, coupled with the promo fares of airlines and the rise of budget carriers," he said.

CAB had earlier said that it and the country’s carriers are banking on growing local tourism to offset the global slump in international air travel.

Philippine Airlines experienced a 23% growth to 6 million domestic passengers last year from 4.9 million in 2008.

Budget carrier Cebu Pacific reported a 35% increase in domestic passengers to 7.2 million last year from 5.35 million in 2008.

The airline attributed the increase to its lower fares. "For Cebu Pacific, higher loads were brought about by successive seat sales and lowest year-round fares offered by the airline. We were able to stimulate travel despite the market conditions," said Cebu Pacific Vice-President Candice A. Iyog in a text message.

Zest Airways, Inc. more than doubled its domestic passengers to 872,223 from 374,145.

Analyzing OFW remittances in 2009

By BERNARDO M. VILLEGAS
Manila Bulletin
http://mb.com.ph/articles/242322/analyzing-ofw-remittances-2009

I can't help gloating over the accuracy of my forecast early last year that OFW remittances would increase by 4 to 5 percent rather than decrease by 6 to 10 percent as economists from international institutions were predicting. I did not have a sophisticated model like the ones of the World Bank and other agencies. In fact, their forecasting models were a liability because they were lumping all overseas workers in the world together to correlate the demand for them with world GDP. I knew from my instinct that Filipino workers should not be lumped together with other overseas workers. OFWs have characteristics that are superior to the average migrant worker from a developing country.

From my own personal experiences and the testimonies of hundreds of people I have talked to abroad, Filipinos are preferred to others because they have better personal hygiene (especially in the personal services sector); they smile more often than most others; they are quickly adaptable to different cultures; they learn new languages more easily because of their own multi-language background in the Philippines; they are multi-talented or multi-skilled; and in such professions as nursing, care giving and physical therapy, they are able to give tender and loving care. All these convinced me that even the worst global crisis will not significantly reduce demand for OFWs because the demand for them is income inelastic. They are usually the first to be hired and the last to be fired.

I am glad that my fellow economists at the University of Asia and the Pacific have actually analyzed the data on OFWs and their remittances during 2009, the worst year of the global crisis. According to a study of Dr. Peter Lee U, Dean of the School of Economics at UA&P, there was a significant drop in job availability in some markets (the US, not surprisingly, and Hong Kong) but this was offset by openings in others so that, on the whole the remittances grew by 4.2 percent from January to September 2009. For the first three quarters, remittances from Asia grew a healthy 16.7 percent. Early on in the recession, many Filipino workers were laid off and returned home from Taiwan, casualties of the electronics industry's slump. Consequently, remittances from Taiwan dropped by 46.1 percent for January to September 2009. Remittances from Hong Kong, another traditional employer of Filipino workers, also dropped 25.3 percent. Fortunately increases in remittances from Japan (56.6 percent) and Singapore (33.3 percent) more than compensated for these.

Remittances from Europe actually grew by 12.1 percent despite a 27.3 percent drop in remittances from Italy, the largest source in the region. Not surprisingly, remittances from the Americas dropped 1.1 percent, dragged by the 9.7 percent drop in remittances from the US. Fortunately, this was offset by the 56 percent increase in remittances from Canada.

A blessing in disguise that resulted from the super-typhoons in September and October was the large increase in remittances from OFWs in October. According to economist Dorothy Jeanne Castaneda of UA&P, after Ondoy and Pepeng, remittances increased in September and rose further in October 2009. The typhoons seemed to have encouraged larger amounts of transfers from relatives overseas with a view of assisting affected families in their rebuilding efforts. In September, remittances from OFWs rose significantly to US $1.4 billion, posting a year-on-year increment of 8.6 percent. As a result, cumulative remittances for the nine-month period increased by 4.2 percent to reach $12.8 billion. Remittances from both sea-based and land-based workers expanded during the first three quarters of the year.

As of end-October 2009, total job orders processed reached 226,260, representing 43.9 percent of the jobs needed (515,438). About 80 percent of the total job orders processed was for service and production and transport-related workers. For the period January-September 2009, the major sources of remittances were the US, Canada, Saudi Arabia, UK, Japan, Singapore, United Arab Emirates, Italy, and Germany. Although there was concern about the debt crisis in Dubai, my own judgement is that Filipinos will remain employed in most countries of the Middle East because they are in indispensable services and are not concentrated in construction.

From this analysis of what actually occurred in 2009, I can rest assured that overseas remittances will continue its upward trend in 2010, as the global economy gradually recovers from the Great Recession. To show our gratitude to the OFWs for the great benefit that they are conferring on our national economy, both the Government and the private sector should fine tune the social policies that will minimize problems arising from separated families, unscrupulous recruiters and employers, bureaucratic obstacles, and lack of political representation. For comments, my email address bvillegas@uap.ed.ph.