Philippine International Air Passenger Traffic Up +8.6%
By Cris Larano
Dow Jones Newswires
MANILA -(Dow Jones)- International airline passenger traffic in the Philippines increased 8.6% on year in the first three quarters of 2008, data released Wednesday by the Civil Aeronautics Board showed.
The increase was largely due to Philippine Airlines and Cebu Pacific's opening more routes and adding flights to existing destinations. The 3 airlines that service the Philippines carried 9.16 million outbound and inbound travelers in the January-September period, up from 8.43 million in the same period a year earlier, the data showed.
Philippine Airlines and Cebu Pacific, which are both overhauling their fleets, increased their combined share of the international passenger market in the first three quarters to 41%, from 39% in the same period a year earlier.
Philippine Airlines carried 2.74 million travelers in the period, 7.7% more than the year before. It carried 1.31 million inbound passengers, 14% more than the year before, and 1.43 million outbound passengers, up 3.5%.
Cebu Pacific increased its total traffic by 40% on year to 1 million, with 477,069 inbound passengers, up 39%, and 525,598 outbound passengers, up 41%. - 632-848-5051
Wednesday, 7 January 2009
Manila defies travel slump, grows 8.6%
Fitch Ratings retains 'stable' outlook for the Philippines
By Des Ferriols Updated January 07, 2009 12:00 AM
The Philippine Star
http://www.philstar.com/Article.aspx?ArticleId=429702&publicationSubCategoryId=63
London-based Fitch Ratings has maintained its stable outlook for the Philippines, saying the country is “reasonably healthy” despite the tumult in the global economy.
Bangko Sentral ng Pilipinas Governor Amando Tetangco said the outlook indicated Fitch’s confidence in the Philippines’ ability to weather the global slowdown or even recession in the country’s major trading partners.
A stable outlook means that the Philippines stays at its current credit ratings until the next Fitch review.
In a television interview, Fitch managing director James McCormack said the Philippines, China and Indonesia are the only countries that are not in Fitch Ratings’ negative watch.
Speaking at the weekly Tuesday Club breakfast forum at the EDSA Shangri-La yesterday, Tetangco said Fitch’s action reaffirmed the view of monetary officials that the country’s external position is strong enough to buttress the economy even amid the global slowdown.
“The Philippines is still reasonably healthy. Public finance is well-managed in the last couple of years,” McCormack said.
McCormack said weaker growth in the region was not necessarily negative from a sovereign creditor’s perspective.
China, according to McCormack, was still exceptionally well based on its “extremely high” foreign exchange reserves.
The Philippines’ reserves may not be as big as China’s but its external position is strong.
The Bangko Sentral ng Pilipinas said the country’s reserves stood at $36.2 billion as of November 2008 and Tetangco said authorities expect a further buildup this year.
Tetangco said that even with the anticipated slowdown in foreign short-term investments as well as in exports and remittances, the country’s external position would be robust because remittances would still come in and some export sectors might even benefit from the global slowdown, particularly business process outsourcing.
“I think in case of the Philippines, it’s been largely left aside in terms of what’s going on in international capital markets; and it still benefits from reasonably strong remittance flows,” McCormack said.
Remittances would probably suffer but McCormack said the country would remain reasonably healthy.
“Public finance is well-managed in the Philippines in last couple of years,” he said. “We don’t think it’s sustainable in the medium term but I think the recent record has been quite good so the Philippines looks okay.”
According to Tetangco, Fitch’s action has validated the BSP’s view that the country’s external position is resilient and healthy. He said the Fitch outlook would boost investor confidence amid the panic that struck the markets last year.
Tetangco said the country has enough foreign exchange buffers despite portfolio outflows because of the adequate reserves built up by the BSP in response to the expected slowdown in investments and exports in 2009.
“It is difficult to predict the extent risk appetite will retreat from the market,” Tetangco said. “But as I said, our reserves continue to be at comfortable levels. We also have buffers to slowing, even reversing, portfolio flows.”
After its mid-year review last year, Fitch Ratings affirmed the country’s credit ratings, keeping its outlook at “stable” on expectations that external debt ratios would be kept afloat by inflows from overseas Filipinos.
Fitch currently rated the Philippines’ long-term foreign currency Issuer Default Rating (IDR) at ‘BB’. Likewise, Fitch said the country’s long-term local currency IDR would be kept at ‘BB+’, while short-term foreign currency IDR would stay at ‘B’ and the country ceiling at ‘BB+’.
Fitch said the country’s “relatively strong” external financial position continued to support its current sovereign credit ratings, boosted largely by robust inflows from overseas workers.
However, Fitch said it still considers the country’s public finances fundamentally weak and that significant improvements in revenue base would have to be made to make the Philippines at par with similarly-rated countries.
“Ongoing current account surpluses, driven largely by overseas workers’ remittances, are contributing to a steady reduction in the country’s external debt ratios, and have allowed for a significant increase in official foreign exchange reserves,” said Fitch in its June 2008 report.
Fitch earlier said net capital flows were much weaker in 2008 because of the general reduction in global investors’ risk appetite amid slower growth in advanced economies as well as lingering uncertainty in credit markets.
Fitch noted that net portfolio equity inflows averaged about $2.4 billion annually between 2005 and 2007.
Philippine int'l airports fly in new direction
By Tina Arceo-Dumlao
Philippine Daily Inquirer
First Posted 18:05:00 12/28/2008
http://business.inquirer.net/money/features/view/20081228-180363/RP-intl-airports-fly-in-new-direction
MANILA, Philippines - Fortunately or unfortunately, tourists and business travelers get their first impression of a place they are visiting at the airport they land in.
This is one of the reasons why countries and cities take great pains and spend much money to put up state-of-the-art airports that double as show pieces of what they have to offer. Think Changi in Singapore, Chek Lap Kok in Hong Kong, Heathrow in London and John F. Kennedy in New York City.
But more than just putting on a great face, airports play a role in economic development because of the goods and people that pass through their portals.
The Manila International Airport Authority, which oversees all international airports in the Philippines, recognizes this important role, which is why it has come up with programs to ensure that it fulfills its vision to bring the main airports in the Philippines at par with the best in the world.
In an interview with the Inquirer, Miaa General Manager Alfonso Cusi explains how the Miaa plans to stay true to its mission.
Q: What do you think is the role of airports in national development?
A: The Ninoy Aquino International Airport undoubtedly continues to be the main international gateway of the country, as it has been for the past several decades. Last year, even with the emergence of new airports with international flight capabilities, the Naia complex, handled about 90 percent of all international traffic in the country. If we were to consider total passenger traffic in the country, that is, including domestic passenger movement, Naia accounted for about 75 percent.
Throughout the years, the Manila International Airport Authority has been managing the Naia complex, which is composed of Terminal 1, Terminal 2 or the Centennial Airport, and the Manila Domestic Passenger Terminal. This year, starting in June 2008, the long-awaited Terminal 3 was finally opened with its first commercial flight during the return flight of President Gloria Macapagal-Arroyo after her state visit to the United States.
We would like to believe that Miaa had been successfully running the main gateway that is Naia through the past decades and gauging from its basic key result areas of passenger safety, security and convenience, Naia as an airport has somehow contributed satisfactorily in making the Naia a world class and efficient airport, giving its all-out effort in coping with the ever growing flight and passenger traffic.
Q: How busy are the main airports?
A: Naia handled around 21 million passengers in 2007. In 2007, we registered 54,643 international flights consisting of both incoming and outgoing flights. Our domestic flights are around 92,648 flights a year. With our runway system consisting of our primary runway 06-24 and our secondary runway 13-3, our runway capacity is fast approaching its maximum level, that is why we are undertaking appropriate technical studies so we can still enhance our capacity. At present, we can accommodate about 30 to 40 flights an hour with as many as 42 flights during peak hours.
Q: Over the past five years, what were the major accomplishments of Miaa as far as airport development is concerned?
A: The Naia, in its own humble way has been judiciously assessing ways and means by which it could be a better airport for its stakeholders. For the various international airlines, we have been on our toes in making sure that we are always compliant with all the appropriate international standards governing civil aviation, such as those of the International Civil Aviation Organization or Icao, the United States' Transportation Security Administration or TSA and the International Aviation Transport Association or the Iata.
By observing and abiding by the set international standards in civil aviation and airport management in terms of operational soundness, security provisions and safety standards, we are able to provide a healthy and effective venue for airlines to operate in.
We may not be able to enjoy the financial capacity to compete among the most modern airports in the world, nor can we guarantee that we can hold a candle in terms of the supremacy of our airport processes as this also is based on technology. But we have been able to identify that there is one area that we are sure and bullish to be able to compete in and that is in the area of human resources, or our people.
We have thus pursued our service excellence campaign using a unique branding strategy of making the airport be known and regarded as one of the most friendliest airports in the region. Naia as the smiling airport is being promoted with our creative campaign of “Naia, we go the extra Smile,” to catch the imagination not only of our external public but to create greater commitment within each and every individual in the airport.
Q: What are the priority projects going forward?
A: I would say that a new chapter of the corporate life of the Miaa came when a new executive order was signed by President Macapagal-Arroyo. Having been entrusted with the management and administration of the country's premier international gateway for almost the past three decades, Miaa had acquired and developed the expertise necessary for the proper and aggressive functioning of international airport terminals.
EO 341 was issued to modify and expand the powers and functions of the Miaa by authorizing and directing it to exercise administrative supervision and control over all international airports in the Philippines. This will make it possible to achieve the objectives of providing high standards of accommodation and service within the context of a financially viable operation.
The overall picture calls for revitalizing the country's airport hubs respective of their distinct purpose in the industry and redefine the limits of their development capabilities. With the Naia servicing 90 percent of all international passenger traffic and with the new Naia Terminal 3 opened, which dramatically raised terminal capacity of the Naia complex to almost 35 million passengers a year, it will be a most challenging and difficult road toward being able to rationalize the gateway development broad strokes for the Naia as well as the other international airports in the country, with the end in view of aggressively pursuing the bright prospects of a developing country with such vast potential in trade and tourism.
Q:. What would you say would be the major issues confronting the airports?
A: Basically, the global airport industry is a very exciting and ever changing industry. Airports have been the showcase all nations, regardless of whether they are developing or are developed countries. Miaa, entrusted with premier gateway administration and development, is certainly facing the challenge of addressing not only national or parochial concerns within the Naia complex, but needs to deal with the atmosphere of competitiveness in the mind of the global passenger.
This is so because, somehow, airports play a very crucial role in the way countries all over the world market or sell themselves.
Q. What are the major stumbling blocks to further development of airports?
A: One of the common constraints to development programs especially for those involving infrastructure development is the availability of long-term financing for capital expenditure. This is most especially true for the development of airports, which is truly characterized by a high level of capex. Hence, it is important that countries are able to project the long-term prospects not only of the country as a whole, but also the various regions within a particular nation. The development of airports is usually a natural consequence of a nation's development thrusts and the Philippines is not an exception. Hence, we are aligning our national plan for airport development with the overall plan for infrastructure development as well as the trade and tourism thrusts of the country.
Q: The airports have been downgraded because of safety, how is the Miaa responding to this pressing issue?
A: This is actually an issue that concerns more the former ATO, now the Caap, since the downgrade has been caused by the observation that we have had inadequacies in air safety concerns, air controllership training and support policies and laws in civil aviation. But just the same, the Miaa and the Naia community have been joining hands with the Caap in helping make possible the pertinent measures that will help us get into the same category as we were before.
Q:. Do you see more airlines coming to the Philippines? Why or why not?
A: Definitely. Firstly, there is the item on the tourism prospects of the country. The growth of airlines servicing a country's routes is usually anchored on the way a country is able to pursue its trade and tourism thrusts. Secondly, it's also a function of how airports are built and managed. We are confident that when airports are run professionally, there is no reason why there will be no growth in terms of passenger flights and passenger traffic as a whole. This is the very reason that we at the Miaa have a very crucial role in helping maintain a healthy mix of international airlines. This is the reason why the Miaa is also teaming up with all the government agencies operating at the Naia, such as the Bureau of Immigration, Bureau of Customs, Philippine National Police Aviation Security Group, Department of Tourism, quarantine offices of the Department of Health and others. This is also the reason why we need to also closely work with all the private international and domestic airlines and the various service providers handling a wide array of airport services in cargo handling, security screening, housekeeping and many others.
Q: Do you see our airports in Metro Manila becoming truly world class?
A: Certainly. We have actually been saying that at the Naia we offer world-class service, world-class smiles.
Filipinos highly optimistic for 2009
By Fr. Bel R. San Luis, SVD
The Manila Bulletin
http://www.mb.com.ph/OPED20090107145031.html
Here’s good news! Despite the grim forecasts about the world economy, nine out of 10 Filipinos look forward to a happy Christmas and better New Year.
This is revealed in the latest survey conducted by Social Weather Station (SWS) from Nov. 28-Dec. 1, 2008.
* * *
Ninety-two percent of those interviewed felt hopeful for 2009. Only eight percent said they looked forward to the coming year with fear. The survey showed a one percent increase from 2006 and 2007.
* * *
In Germany, where the survey questions on hope for the New Year originated, the percentage of hopeful citizens never exceeded 58 percent since 1991, despite the fact that the country is one of the richest in the world.
* * *
The SWS survey shows Filipinos to be a very optimistic and hopeful people. Moreover, they see that despite the global economic crisis and political bickerings, there are positive gains under President Gloria Macapagal Arroyo, notably the numerous infrastructure projects in the countryside, better revenue collection, the fast drop of the oil price.
* * *
In fact, in an earlier survey conducted by Social Weather stations last September 24-27, 2008, the self-rated poverty average shows a decrease of seven points, the lowest in over 25 years.
So, as the late Pope John Paul XXIII once said: "Look to the good you see around you and encourage it as much as possible. That in itself will lessen the bad."
* * *
Presently the government focuses its attention on cushioning the impact of the economic tsunami that’s expected to hit Asian countries this year.
Consequently, more jobs should be generated to absorb our contract workers who were laid off abroad or whose companies closed down. One concrete means is to provide micro business opportunities for small entrepreneurs.
* * *
Talking of hope, ours should not be a passive kind which depends only on doleouts or for the government to spoonfeed us.
What’s needed is an active hope which works out solutions to problems, induces us to be more resourceful and enterprising.
Active hope does not let things happen but MAKE things happen.
* * *
For instance, a young man who took up computer science invested some capital for a small computer shop. Through diligence and perseverance, he was able to increase his sole computer unit to two, then three as his profits grew.
Now he has a modestly successful business.
Electronics industry shortens work-week
Instead of laying off employees
The Manila Bulletin
http://www.mb.com.ph/BSNS20090107145025.html
The domestic electronics industry, the country’s biggest exporter and perhaps the biggest employer, is implementing an industry-wide shortened work week instead of laying off people and urged government to conduct more trainings for workers because when the upturn comes it would be fast and high and Philippine companies must be ready for it.
Ernie Santiago, president of the Semiconductor and Electronic Industries in the Philippines (SEIPI), said some companies are already implementing a four-day work week indefinitely from the regular six-day work week.
"What we are trying to work is how to manage the downturn. We have to mitigate layoffs people either in finance or purchasing, but the goal is to keep the company alive and prepare for an upturn," Santiago said.
Santiago said this is the first time that companies are implementing shortened work week although some companies had laid off people in 2001 during a global electronics industry downturn.
Santiago said that electronics companies in the country have two kinds of customers: those loaded with cash and those with no more credit line from the banks.
"Those with no credit line from the banks have no recourse but to cancel orders from the Philippine companies," he said.
Orders have also to be cancelled because the end-users, the consumers, of these electronics products are not buying also.
"Banks have also become stricter with the use of credit cards thus restricting credit cardholders on the liberal use of their credit line. As a result, consumers are also trying as much as possible to hold on to their cash money," he added.
Since nobody can tell as to when the credit crunch would end, SEIPI members are implementing measure to manage the situation carefully so that when the upturn comes they would also be prepared.
"Our projection is that once upturn comes, it would be too high and too fast that one should be ready so if we plan to layoff, manage it well because you don’t want to be caught in situation where you have no more people to help you run the business," he said.
While managing the crisis, SEIPI is urging the government to provide more trainings for those already laid-off to prepare workers for the upturn.
SEIPI’s projection is that 2009 is worst than 2008. The last quarter of 2008 is the worst as orders were reduced by 40 percent.
"But this is the time to restructure, train people, improve organizations, improve processes and factory retooling," he said.
"This signals that the Philippines is ready when the upturn comes," he said.(BCM)
Food, construction expected to drive Philippine economic growth
BY LOUELLA D. DESIDERIO, Reporter
BusinessWorld Online
http://www.bworldonline.com/BW010709/content.php?id=056
AMID EXPECTATIONS that the economy will slow down with the rest of the world as the financial crisis deepens this year, local food production and construction are projected to lead growth, economists said in separate recent interviews.
University of the Philippines economist Benjamin E. Diokno, former Budget secretary from July 1998-January 2001, said that agriculture should be able to grow by 2%-4% this year.
Agriculture Secretary Arthur C. Yap had said in November last year that his department expected the sector to have grown by 3.8%-4.5% last year.
Data from the National Statistical Coordination Board (NSCB) showed that agriculture grew 3.4%, year on year, in the third quarter of 2008, compared to a 3.7% growth in the same period in 2007.
"Actual growth [this year] would depend on weather pattern — whether it’s favorable or harsh — and incentives for farmers to plant crops using high-yielding seeds and fertilizers," Mr. Diokno said.
He added that growth would also depend on more rural infrastructure like irrigation and farm-to-market roads.
Peter Lee U, an economist from the University of Asia and the Pacific (UA&P), shared the same view, saying that "food utilities should continue to be okay as it is a necessity and rely mainly on the domestic market."
Fellow UA&P economist Victor A. Abola said the government’s proposed budget of over P39.7 billion this year for fertilizer, seeds, rehabilitation of irrigation systems, farm-to-market roads and storage facilities should help prod food production.
UA&P’s Center for Food and Agribusiness has projected that agriculture growth would hit 4%-4.5% this year, barring prolonged dry spells, strong typhoons and spikes in fertilizer prices.
Apart from food production, construction is likewise expected to grow this year.
Mr. Abola said that construction should post double-digit growth this year due to increased public infrastructure spending. He noted that the proposed 2009 budget includes a 20% hike in infrastructure spending to prod growth of economic activity amid a global slump.
Mr. Abola added that private construction should also grow due to demand for real estate, particularly residential units by overseas Filipino workers (OFWs), even as retrenchment has started in some economies hosting them.
"BPO [business process outsourcing] will also be positive, with the risk and costs in India leading firms to move to alternative sites like the Philippines," he said, explaining that this would mean increased demand for office space.
Main risk
While Mr. Diokno agrees that public construction could grow this year, he said that there is a risk since the proposed budget for the year has not been approved. Bicameral conference committee debates on the proposed P1.415-trillion national budget this year will start when Congress resumes session this January 19. "The risk is the delay in project starts [sic] as the approval of the budget gets stalled," he said.
NSCB data showed that construction grew 21.3%, year on year, in the third quarter of 2008, compared to the 17.8% growth rate posted in the same period of 2007. Public construction grew by 20% from 11.5% for those comparative periods, as the national government raised infrastructure spending by 52.7% and local governments by 11.2%. Private construction grew 13.8% from 19.5% in the same periods, spurred by demand from BPO firms and OFWs.
Socioeconomic Planning Sec. Ralph G. Recto said in a separate interview that construction and manufacturing would fuel growth this year. "Construction would remain strong due to the strong push for public construction and demand of the BPO sector, as well as OFWs and tourism," he said.
He explained that manufacturing, which grew 4.7% in the third quarter 2008 from 3.7% in the same period 2007, should be able to endure the slowdown this year since slowing inflation would spur domestic demand.
The economy expanded by 4.6% in the third quarter last year. The government expects gross domestic product to have grown 4.1%-4.8% last year, and to expand by a slower 3.7%-4.7% this year.
"The industries that would drive growth for 2009 would depend on how fast, efficient and productive government will spend its budget for the first half of the year," Mr. Recto said.
"Government must spend at least 70%-80% of its productive outlay immediately. The first half is critical," he stressed.
Tuesday, 6 January 2009
Philippine Central Bank sees remittances growing to $18b
Eileen A. Mencias
The Manila Standard
http://www.manilastandardtoday.com/?page=business3_jan5_2009
The Bangko Sentral expects remittances this year to grow around 6 percent to $17.9 billion despite the slowdown in the global economy.
Central bank sources said Filipinos working abroad were expected to send home $17.3 billion through the banking system. Remittances in 2008 likely grew 15 percent to a little over $16 billion. About eight million Filipinos work abroad.
Bangko Sentral Gov. Amando Tetangco Jr. said in an interview with Global Source Philippines that demand for Filipino workers would continue because of the diversity and the quality of the skills they offer, adding that more Filipinos were expected to get permanent residency status.
Global Source is an independent network of financial advisers.
“While we expect the crisis to affect permanent workers, we believe that they have better flexibility to look for replacement jobs compared to workers who rely on contract renewals,” Tetangco said.
“Bilateral talks with host countries have also continued to open up new employment opportunities abroad for Filipinos in terms of translation and transcription services. Furthermore, the inelastic demand for medical and healthcare practitioners from the ageing population of developed countries account for the continued demand for overseas labor particularly from the Philippines. These skilled workers earn more income and remit more foreign exchange,” he added.
Deployment of Filipino workers in the first 10 months of 2008 surged 25.5 percent to 1.11 million from 888,339 year-on-year.
The central bank earlier warned of a slowdown in deployment next year as host countries dealt with the impact of the global financial meltdown. Canada and some Middle Eastern countries and Australia, however, have expressed interest in tapping Filipino workers.
Remittances from Filipinos abroad totaled $13.71 billion in the 10-month period, up 15.5 percent on year.
Progress seen at NAIA terminals
Terminal 3’s half capacity filled in by budget flights
By Roderick T. dela Cruz
The Manila Standard
http://www.manilastandardtoday.com/?page=police1_jan5_2009
The Ninoy Aquino International Airport Terminal 3, which was designed for 13 million passengers a year, is now on half its capacity mainly on budget flights, said airport officials.
Opened on July 22 last year, the terminal has since hosted domestic flights of Cebu Pacific, Air Philippines and PAL Express. On Aug. 1, Cebu Pacific Air’s international operations was added.
The Manila International Airport Authority, which operates Naia terminals, targets to transfer all international flights to Terminal 3 from the old Terminal 1 and the Terminal 2 this year.
Terminal 1, which was refurbished last year, continues to serve all the international flights of airlines except Cebu Pacific while Terminal 2 takes in domestic and international flights of Philippine Airlines.
MIAA general manager Alfonso Cusi said Terminal 3’s performance was commendable.
“The Naia Terminal 3 is now handling about half of its designed capacity of 13 million passengers yearly,” he said.
Tirso Serrano, MIAA assistant general manager for airport development and corporate affairs, says Naia continues to be the principal international gateway of the country, despite the emergence of new major airports such as the Diosdado Macapagal International Airport in Clark, Pampanga.
Serrano said the Naia complex handled last year about 90 percent of all international flights.
“If we were to consider total passenger traffic in the country, that is, including domestic passenger movement, Naia accounted for about 75 percent,” he added.
In its year-end report, MIAA cited useful improvements and service enhancements at the Naia complex, including expanded departure lobby of Terminal 1, re-layouting of the terminal passenger movement areas, new metered yellow taxi cabs, free shuttle service between terminals, new concierge and enhanced meet-and-assist services, new security equipment and other facility and housekeeping upgrades.
“For the various international airlines... we are always compliant with all the appropriate international standards governing civil aviation, such as those of the International Civil Aviation Organization, the United States’ Transportation Security Administration and the International Aviation Transport Association,” Cusi said.
SEAIR transport franchise lapses into law
BY ALEXIS DOUGLAS B. ROMERO AND PAOLO LUIS G. MONTECILLO, Reporters
BusinessWorld Online
http://www.bworldonline.com/BW010609/content.php?id=045
A MEASURE that gives budget carrier Southeast Asian Airlines, Inc. (SEAIR) a 25-year franchise to operate domestic and international air operations has lapsed into law.
Malacañang failed to sign Republic Act 9517, which gives the airline the authority to operate the service from Clark, Pampanga as its base.
In a phone interview, SEAIR President Avelino L. Zapanta said the franchise would boost their corporate standing and make the carrier more attractive to investors.
"The value of the company has increased and it will attract some investors in terms of additional equity or lending, and that would allow us to expand our operations," he told BusinessWorld.
Under the Constitution, the President has 30 days to sign or veto a bill. In the absence of an action, it automatically lapses into law.
The House of Representatives approved the SEAIR franchise on May 12, while the Senate passed its own version on Sept. 29. The bill was sent to the Palace for the President’s signature in November, and it had until Dec. 27 to act on it.
Mr. Zapanta noted that before the franchise, SEAIR had obtained a mere certificate from the Civil Aeronautics Board (CAB), which had allowed it to offer air service.
The law requires SEAIR to allot at least a quarter of its operations to the domestic market. It may carry passengers, mail, goods and freight, subject to government regulation.
The law bars SEAIR from transferring or selling its franchise to a third party without congressional approval. Moreover, SEAIR must list at least 30% of its outstanding capital stock on the exchange within five years to encourage public ownership of utilities.
Established in 1995, SEAIR is based in Pampanga and has hubs in Puerto Princesa, Cebu and Zamboanga. Its local destinations include Boracay Island via Caticlan; and Busuanga, El Nido and Puerto Princesa in Palawan. SEAIR is owned by foreigners Iren Dornier and Nikos Gitsis and the Filipino group of Tomas Lopez, Jr.
In a related development, rival Zest Airways, Inc. is planning to fly to Japan by the second quarter to take advantage of available air rights under an air agreement approved last year.
The flights will compete directly with services offered by Lucio Tan-owned flag carrier Philippine Airlines (PAL) and another budget carrier, Gokongwei-led Cebu Pacific.
"We’ll have the same plane, we’ll have the same route... It will all boil down to marketing," Zest Airways Chairman Alfredo M. Yao said in an interview yesterday.
Based on documents filed with the Civil Aeronautics Board last month, Zest Airways wanted to start daily flights between Manila and Osaka, and between Cebu and Fukuoka starting May.
These are similar to Cebu Pacific’s thrice-a-week Manila-Osaka service that started in November.
PAL, meanwhile, flies from Cebu to Osaka twice weekly. The flag carrier revived the service in October, which it stopped offering in 2001 in the wake of the Sept. 11 terrorist attacks in the US. Both PAL and Cebu Pacific’s regular roundtrip flights to Japan cost around $500. Mr. Yao said his airline had yet to decide on ticket prices.
Zest Airways’ planned service is in line with a recent deal between the Philippines and Japan increasing the frequency of flights between the two countries, mainly from Manila and Clark. Local officials, however, earlier admitted the traffic between the two countries had declined due to the slowing global economy.
The government was supposed to hear Zest Airway’s application on Dec. 18, but the hearing had been moved to this month, officials of the CAB’s air rights division said.
Earlier, the carrier bought seven new airplanes as part of its refleeting program. Five of the 50- to 60-seater aircraft will be used to expand the airline’s local operations, while two 150-seater Airbus 320s will fly to regional destinations.
Set up in 1995, Zest Airways flies to 12 local and three international destinations — Incheon, Korea; Sandakan, Malaysia; and Macau using a fleet of 10 planes. Mr. Yao, who also owns juice maker Zest-O Corp., bought Asian Spirit in March reportedly for P1 billion. He had offered to buy rival SEAIR, but the parties failed to close the deal.
Sunday, 4 January 2009
Arroyo: Let’s talk economics, not politics
THURSDAY, JANUARY 1, 2009 | GOVERNMENT MANAGEMENT
http://www.gov.ph/news/?i=23196
MANSION HOUSE, Baguio City – “You know, I don’t want to talk about 2010 – that’s far away. I want to talk about what I’m doing, about what I have to do now.”
Thus said President Gloria Macapagal-Arroyo in response to question posed by a member of the Baguio City media yesterday (Wednesday, Dec. 31) about her plans for 2010.
“Politics is not foremost in my mind. If I were always thinking about politics, I would not have been able to build all these roads in the Cordillera and all these (projects)... So let’s talk economics, not politics,” she said.
She stressed it was not mere luck that the Philippines is not one of the 30 countries that the United Nations Food and Agriculture Organization (FAO) has identified as in the grip of the global economic crisis.
Similarly, the Philippines is not also among the countries that have slipped into recession under the battering of the worldwide slowdown.
Foresight and careful planning has a lot to do with the country’s resiliency in the midst of the storm buffeting the global economy, the President said.
“As I said, we cannot predict what will happen in the future but we can plan. And, it was, you know, we were lucky this year but we worked hard to have that luck – we planned for it,” she added.
The President pointed out that last “October, I had presented to the business community a contingency plan. But that is no longer a contingency plan because two-thirds of the world is already in recession -- that is a resiliency plan.”
The contingency plan was unveiled during a meeting of the National Economic and Development Authority (NEDA) “and I have been asking him (NEDA Director-General Ralph Recto) to continue to propagate it.”
The plan, calls for, among others, the implementation of various infrastructure projects to serve as economic stimulus. “That’s why we want this 24/7 on Halsema Highway -- that’s part of our stimulus,” the President said.
“We want to have a lot of social services targeted for the poorest of the poor that’s why it is very important for the DSWD (Department of Social Welfare and Development) to identify who, indeed, are these poorest of the poor to avoid free riders,” she said.
Asked if the government would extend the “food chain” to Mt. Province, the President explained that “those are details and I don’t really work on details – I work on the strategic points.”
She stressed, though, that Agriculture Secretary Arthur Yap will work on the details of the aggie project even as she pointed out that the government cannot be faulted for lack of attention to the Cordilleras.
“I assure you that what is needed, we will work on them together. And, in fact, I would like to congratulate Mt. Province because it is no longer part of the 10 poorest provinces in our country through the people’s own work and also because of the assistance of the national government.”
The President also pointed out that Tom Killip, the Presidential Assistant for the Cordilleras, is a former mayor of Sagada, Mt. Province, “and so I am sure that he will work and will be making sure that he works with the national government, with the DA, on the needs of Sagada.”
Earlier Monday (Dec. 31), the President, together with First Gentleman Jose Miguel Arroyo and their grandchildren, went spelunking in the famous caves of Sagada.
PHILIPPINES IS ‘MANNING CAPITAL OF THE WORLD’
Camille Beatrice Bauzon
The Manila Times
http://www.manilatimes.net/national/2009/jan/04/yehey/top_stories/20090104top2.html
FILIPINO seamen continue to ply dangerous waters because they see the world for “free”—albeit with all the woes—and the wages beat those back home.
“It’s a high-paying job,” says one merchant marine. “Who wouldn’t want to receive the kind of salary we have?”
A mess man, the lowest rank, receives around $800 a month (P37,600 at the exchange rate of P47 to $1) plus overtime. Officers may get as much as $8,000 a month, or 15 times higher than the wage of many Philippine company executives.
Remittances from seafarers make up 15 percent of the $14.5 billion sent home by Filipino workers abroad. In 2007, the RP sailors’ remittances totaled around $2.2 billion. Employers are required to send a part of a sailor’s salary back home.
The sailors’ paycheck remains largely untouched because of free board and lodging; they spend big time only during port calls.
In the first nine months of 2008, according to the Bangko Sentral ng Pilipinas, Filipino seafarers sent home $2.393 billion—or 43.35-percent more than the $1.669 billion they sent in the same period in 2007.
By comparison, land-based Filipino workers abroad sent $9.87 billion from January to September in 2008.
Since 1987, the Philippines has been the leading supplier of seafarers in the international market, “making it the manning capital of the world,” according to the Philippine Overseas Employment Administration (POEA).
United Filipino Seafarers statistics show there are close to 700,000 Filipino seafarers. In 2007, 266,553 Filipinos were deployed in international passenger and cargo vessels.
They make up about 20 percent —or two out of 10—of the 1.2 million ship workers worldwide.
In a year, they account for around $3 billion of the foreign remittances to the Philippines.
This is a quarter of the total remittances contributed by all Filipino workers abroad, even though seafarers only make up 3 percent of the 8.7 million Filipinos working and living abroad.
The POEA gives most seafarers the “Able Seaman” classification. There were 31,818 able seamen registered last year, a little more than half of them employed in 17,355 positions.
Most of them work in passenger vessels, where 47,782 seafarers were employed in 2007. Some 42,357 worked in bulk carriers and 31,983 labored in container ships.
For recent graduates of maritime schools, competition for jobs is particularly fierce. Of the 25,000 ordinary and able seamen who graduate annually, only 8,000 to 10,000 find a job within a year.
Some 60,000 new students enroll in the counry’s 89 maritime schools. Around 25,000 will complete the three-year course. Most will remain as Ordinary Seaman and only about 5,000 will return to maritime school after a period of “on-the-job” training in order to proceed to the rank of Able Seaman.
Still, the deployment of Filipino seafarers reached 204,951 in 2007, from only 50,604 in 1984.
More Filipinos brave pirate-ruled high seas
SPECIAL REPORT:FILIPINO SEAFARERS
Rise in piracy doesn’t deter our sailors
By Camille Beatrice Bauzon, Reporter
The Manila Times
http://www.manilatimes.net/national/2009/jan/04/yehey/top_stories/20090104top1.html
THE alarming rise of piracy in the high seas does not deter Filipinos from working as sailors in dangerous oceans.
“It has no effect whatsoever. In fact, most victims, after the attacks, immediately went back to work in the high seas again,” Nestor Ramirez, president of the United Filipino Seafarers association, told The Manila Times.
“If there is an effect, especially with regards to security, Pinoy seafarers were not affected. But more the other nationalities were,” he continued. “But with regards to Pinoys wanting to be back to their jobs again after being held hostage, there was nothing that indicated a slowdown.”
Filipinos are the most in-demand workers in the high seas, Ramirez said.
International shipping companies prefer them to others because they speak English and are highly trained, industrious and adaptable to a multicultural setting.
After one pirate attack in September, a Filipino seafarer was asked by his Malaysian employer to have a vacation with his family in the Philippines and come back to the seas again this January. All on company time and expense.
2008 saw a huge rise in piracy attacks, particularly in the Gulf of Aden.
That is terrible news to a country that is the world’s biggest source of seafarers, deploying an average of about 270,000 Filipinos annually. “We supply 27 percent of the total seafarers around the world,” Ramirez said.
Dangers
The numbers continue to increase even if it means traveling across the lawless sea off Somalia. Seafaring is an industry believed to be one of the most dangerous in the world.
“Even after the incidents of piracy, the number of Pinoy seamen wanting to be deployed continues to increase,” said Ramirez.
The demand for Filipinos has actually risen, according to Ramirez, so much so that women are encroaching on what was once a male-dominated job.
“Actually, Filipina seafarers are now serving as marine officers. And we don’t discriminate. The demand is so great that negative competition between seafarers, male or female, does not exist,” he said.
The rise of piracy this year pushed governments and the shipping industry to increase security aboard ships, training crew on how to detect dangers and deal with the situation if taken hostage.
In October, the Philippine Overseas Employment Agency (POEA) started to require double compensation during passage through dangerous waters like that off Somalia and in the Gulf of Aden. Filipinos also now have the option of disembarking at the last safe port before a high-risk zone.
POEA chief Jennifer Jardin-Manalili, aware that the Filipino seaman would not take the safe option, told The Times, the policies “are merely aimed at ensuring that our seafarers are justly compensated for the added risks that they are inevitably exposed to, given the circumstances.”
They “are not meant to solve the security problem or claim to ensure the safety of [Filipinos] and prevent them from being taken hostage by pirates. Much as we want to ensure our seafarers’ safety, piracy is something way beyond POEA’s control,” she says.
The additional pay should not be construed as an incentive, she stresses: “It is more in the nature of a standard hazard pay given to workers whenever they are unavoidably exposed to certain risks in the performance of their duties.”
The compensation is doubled only for the period it takes for a vessel to pass through a high-risk zone, which takes approximately two days, for example, off Somalia. Once the vessel has reached safe waters, the regular rate applies.
Only in the unfortunate event that the seafarer is taken hostage by pirates does the double compensation continue—until the hostage is released.
RP, China most resilient economies in Asia – Bloomberg
David Cagahastian
The Manila Bulletin
http://www.mb.com.ph/MAIN20090104144820.html
The Philippines and China have been cited as the two most resilient economies in Asia amid the global economic crisis, Press Secretary Jesus Dureza said yesterday.
Secretary Dureza said a report by the Bloomberg financial service cited the economies of the Philippines and China as having fared well in 2008 and expected to remain resilient in 2009 even with the expected deterioration of regional economies worldwide.
"It’s encouraging to note that we have been cited in Bloomberg today, as one of the two resilient economies in Asia, along with China. Amidst global financial downturn, we continue to post strong currency and fiscal position," the Press Secretary said.
"The Philippines and China were being cited as the two Asian economies that fared the best in 2008 and that will do well in 2009," he added.
While not being specific on where he got the Bloomberg report citing the Philippine and Chinese economies as having done well in 2008, Dureza still said the citation was "undeniably" a result of President Arroyo’s economic reforms.
"While difficult days are expected ahead, we are in a better position to weather them as long as we keep the course and resist the temptation of divisive politics," Dureza said.
Wow, What A Year!
by Joey Concepcion
The Philippine Star Business
Thursday, January 1, 2009
For some reason, the Ask Go Negosyo Thursday column falls on important days this holiday season. Last Thursday was Christmas Day, and today is New Year's Day. How lucky I am to be able to share my Christmas and New Year message to all.
My column last Thursday, entitled "My Christmas Wish List", surprised my wife and my mom. My wife was especially happy because in a way, I was able to acknowledge all her efforts in Laura Vicuna and Vides Foundations. My mother, who was also surprised, shed tears while reading it. Even my relatives' friends who hardly read my column sent me messages to say it was quite touching. A friend of mine also sent the column to our common friend, who is fighting for his life in Houston. Basing from his last email to all his friends, he is ready to confront his cancer with optimism and the will to live.
Sometimes, we must take time to pause in our lives. Then, we will be able to realize the many things that we are missing. When we are caught up with our businesses, we tend to live in a world of our own. Then, we fail to realize how life is out there. Frankly, I am also guilty of such, especially with my blackberry. With cell phones, we become wired to a material world. These are life's challenges. We know the things that we should avoid, but we keep doing the same old things. I am sure many of the New Year's Resolutions never get done. These resolutions are just symbolically written in paper. My father and my uncle Raul Concepcion, who just celebrated their 77th birthday, are both guilty of this. They have also stopped making their resolutions. Being twins, my baby Isabella is so confused when she sees both of them, wondering if how can there be two 'pappies'. We celebrated their birthday here in Hong Kong, with most family members.
For many of the wealthy, the year 2008 has brought about the most humbling experiences. Many had to experience great anxiety, after seeing their investments tumble and lose value. This makes us realize that in this material world, we can lose what we have in a matter of seconds. The financial catastrophe of many nations, especially of America, is unimaginable. It is like the story of Job in the Bible. He lost everything he had.
Who do we blame for this? Well, we can say that our private bankers and financial counselors are to be blamed. But, equally, it is the greed in each of us. If there is someone out there who would say that he does not have any form of greed, he must not be human. As humans, greed and fear exist in us. We just have to find ways to manage and control these. For me, these traits have caused all these problems and crises. Excessive greed and fear are what caused the problems. It all started with the greed that caused assets to increase beyond its real value. This emboldened people to borrow and leverage beyond their capability. Then, as markets collapsed, we now see extreme fear that pushed all kinds of assets to its all time low.
What lies ahead in 2009 is a big question. How long will this crisis last? And how will it affect us in the Philippines? This is the common question people ask me time and time again. But, maybe one of the best answers came from a sermon during a Sunday mass here in Hong Kong, where we also spent the holidays. The sermon delivered a message addressing the OFWs, who were present in the mass: the greatest love of a parent is shown through the sacrifice to leave home and work overseas for a better future for the family. The pain and loneliness that parents go through, being absent specially during Christmas and birthdays, shows their highest form of love. They are willing to sacrifice just to make sure that the family back home has a better future. This is quite true when we look at the millions of OFW workers and even Filipino-Americans who risk so much just for their families. They are living examples of people taking control of their own destiny. But, there are still count less Filipinos out there who just pray for the pot of gold, hoping that one day it would come without doing anything. I made sure my kids understood what the priest meant, and how lucky we are along with other Filipinos who are able to spend time with their families abroad.
Sometimes, we do take these luxuries in life for granted. It didn't feel like a recession, seeing so many Filipinos in Ocean Terminal, as if we were in Greenbelt shopping area. If the Koreans invaded Manila, the Filipinos invaded Hong Kong this holiday season. Filipinos are very family oriented. We enjoy family reunions during the holidays, bonding with each other until the point of having too much of each other. I guess this is what makes us all different. Imagine how we can use this strength as a nation of Filipinos - united and not divisive, more on inspiring and uplifting one another rather than keeping up with crab mentality, full of optimism and less of pessimism, more of 'yes we can' and none of 'no we cannot'. What happens in 2009 does not lie on what PGMA or this government will do for us. It lies on all of us, focusing on our purpose in life and doing it the best we can. Happy New Year!
***
For feedback, email me at gonegosyo@yahoo.com or thru SMS at 09175591245. For free business advice, visit www.gonegosyo.net . Watch Go Negosyo Bigtime every Saturday and Sunday, 8:00 am to 8:30 am with replays every Sunday 9:15 pm at NBN.
Saturday, 3 January 2009
PNR rehab affects 30,000 family-settlers
By Jason B. Neola
December 11, 2008 6:44 pm by pna
http://balita.ph/2008/12/11/pnr-rehab-affects-30000-family-settlers-by-jason-b-neola/
NAGA CITY, Dec. 11 — Rehabilitation of the Philippine National Railways (PNR) will require the eviction and relocation of some 30,000 families nestled inside the 15-meter clearance on both sides of the PNR mainline south rail from Calamba, Laguna to Legazpi City in Albay.
This is the problem being tackled by the Community Organization of the Philippines (COPE), a national government organization, undertaking social preparations in anticipation of the resumption of the PNR's mothballed repair and rehabilitation of the Bicol south line, once government funds are made available to implement the project.
PNR's rehabilitation from Laguna to Bicol and the construction of new line towards Matnog, Sorsogon was scheduled to start in 2005 and completed in 2011.
But it was put on the wayside following recent political developments that had seen alleged questionable big-time loan deals with foreign investors, specifically China-based financial institutions.
Jun de la Torre, COPE assistant regional coordinator said they have strengthened their social preparation efforts in favor of the railway settlers by collaborating with the Bicol Urban Poor Coordinating Council (BUPCC), headed by Lorna Chavez, to ensure that the rights of these affected settlers would not be derailed when the PNR rehabilitation project starts in the near future.
The project, once it rolls off, is estimated to cost P52.19 billion, of which P35.15 billion will be for repair of railways from Calamba to Legazpi and the construction of a new railway from Legazpi to Sorsogon.
The remaining P17.3 billion will be allocated for clearing of the 15-meter clearance on both sides of the railway.
This means the eviction of the encroaching 30,000 families and the provision of relocation sites with available basic infrastructures and services.
De La Torre said they would press for adequate standard of living and housing for the affected settlers as identified by the Commission on Human Rights.
This would involve, he said, the settlers’ legal security of tenure in the new site, availability of services, materials, facilities and infrastructure, affordability of household financial cost in the new site, habitability, accessibility, acceptable location, and cultural adequacy.
BUPCC's Chavez said, in undertaking social preparations, they have adopted the “Kaantabay sa Kauswagan” or urban poor program of the Naga City Government as model.
She said Naga City's program was slowly being adopted, by Legazpi City in confronting the issue of PNR illegal settlers.
She said security of tenure and availability of basic services were two of the key elements that the illegal settlers would need to start a new life in their new homes.
The HUDC will support the housing needs, while the NHA is mandated to identify habitable relocation sites.
PNR sources said many foreign private contractors have shown interest in undertaking the multi-million railway rehabilitation project.
But these contractors are turned off by the huge number of illegal settlers along the railways which becomes a complex problem to tackle.
Travel time of 14 hours from Sorsogon to Manila via the Maharlika Highway would be reduced to 6 hours once the PNR south line has been fully rehabilitated, PNR sources said.
The Calamba-Legazpi line spans 483 kms of railways while the proposed Legazpi-Sorsogon (Matnog) line covers a distance of 135 kilometers.
The Caloocan PNR depot will also be dismantled, and its major facilities relocated to the Legazpi City PNR station.
The station will have a stumbling yard, dormitories and maintain the station buildings throughout the south line route. (PNA)
DCT/wi/LQ/JBN/1257
Philippines aiming at completion of 9 railway projects
By GENALYN D. KABILING
The Manila Bulletin
http://www.mb.com.ph/MAIN20090103144759.html
Malacañang has ordered the speedy completion of nine ongoing railway projects worth P282.65 billion as well as new roads and bridges this year in a bid to unclog busy highways and crowded city centers particularly Metro Manila.
Presidential Management Staff chief Cerge Remonde said the government’s renewed focus on infrastructure development is meant to boost economic growth and create employment in the face of an expected economic slowdown this year.
"We believe that the most urgent challenge the administration is facing right now is finding ways to mitigate and cushion the effects of the global financial crisis on the economy, and sustain the economic gains our country had achieved," Remonde said in an interview.
Remonde said the government is implementing nine modern railway projects across the country, eight of which are located in the Luzon Urban Beltway, as part of its ambitious goal to decongest Metro Manila by 2010 under the "Beat the Odds" program.
He said the new railway systems are expected not only to speed up travel but also to interconnect North and South Luzon and close the Light Rail Transit (LRT) and Metro Rail Transit (MRT) loop.
The Luzon rail projects are the LRT Line 1 North Extension; LRT Line 1 South Extension from Baclaran to Bacoor; LRT Line 2 East Extension Project in Masinag, Antipolo; MRT 3 Capacity Expansion; MRT 7; the Northrail Project; Northrail- Southrail Linkage; and Southrail Project Phase I.
The only railway project outside Luzon is the Southrail Project Phases 1B and 2 in Central Philippines.
"Once these railways are completed, they are expected to provide cheaper and faster alternative mode of transportation," Remonde said.
He said the Northrail Project will reduce travel time from Caloocan to Clark in Pampanga by an hour and 49 minutes. The Northrail-Southrail linkage will make travel from Caloocan City to Calamba, Laguna shorter by an hour and 20 minutes.
On the other hand, travel time from Calamba to Lucena City in Quezon will be shortened from three hours and 21 minutes to 1 hour and 41 minutes once the Southrail project is completed.
The MRT 7 is expected to cut travel time from Caloocan to North Avenue by almost an hour, while the LRT Line 1 North and South extensions will also shorten travel time for commuters, Remonde added.
Remonde said the government will also aggressively implement the construction and improvement of roads and bridges across the country. Majority of the projects are being implemented by the Department of Public Works and Highways (DPWH).
The C5 Expressway (NLEX-SLEX Link) and the South Luzon Expressway Extension (SLEx) Project are being handled by the Toll Regulatory Board, while the Daang-Hari SLEX Link will be implemented by the National Development Company (NDC).
The EDSA Rehabilitation Project is under the Metropolitan Manila Development Authority while the Metro Manila Skyway Stage 2 is being developed by Citra Metro Manila Tollways Corporation.
He said the DPWH and the Office of the Solicitor General have started work on the right-of-way acquisition for Segment 8.1 (Mindanao Avenue to NLEx) of the C5 NLEx- SLEx Link.
The Toll Road 1 (Alabang Viaduct) of the South Luzon Expressway Project was opened to the public last November, while civil works on Toll Road 2 (Sta. Rosa to Calamba) and Toll Road 3 (Calamba to Sto. Tomas, Batangas) are ongoing.
Advance work is being undertaken on the Metro Manila Skyway Stage 2, while pre-construction activities are being prepared by the NDC for the DaangHari Project.
In another measure to decongest Metro Manila, Remonde said the government is pursuing decentralization through the transfer and establishment of new government centers outside the metropolis.
"These new centers shall serve as catalysts of growth by facilitating the entry of investments and other economic activities and eventually create new hubs for business and housing as counter magnets to theNational Capital Region," he said.
He said the operations of some government agencies are gradually being transferred to various regions. These include the Department of Agriculture to Isabela; Department of Tourism to Cebu City; Department of Agrarian Reform (DAR) to Davao City; Department of Transportation and Communications (DOTC) to Clark, Pampanga; DPWH to Bicol; and Department of National Defense to Mindanao or Lucena City.
Friday, 2 January 2009
January 2 holiday makes for an 11-day break
BusinessWorld Online
http://www.bworldonline.com/BW122508/content.php?id=002
Employees will be able to enjoy a longer yearend break as Malacañang yesterday declared Jan. 2, 2009 as a non-working holiday.
Executive Secretary Eduardo R. Ermita said President Gloria Macapagal-Arroyo had made the decision after consulting with business and labor leaders. It was formalized through
Proclamation 1695 which Mr. Ermita signed yesterday. "They [business and labor] have no objections to declaring it [Jan. 2] as a non-working holiday," he said.
The proclamation effectively provides for an 11-day break starting from Dec. 25, Christmas Day, to Jan. 4, the first Sunday of 2009. Officially, however, the days counted as holidays are only Dec. 25-26, 29-31, and Jan. 1-2. Employees who have no work on Saturdays and Sundays will thus return to work on Jan. 5.
"A longer weekend encourages families to get together and strengthen their relationship towards a more productive environment as well as promotes domestic tourism and enables employers to plan their work schedules effectively and efficiently, resulting in improved productivity," the proclamation states.
Businessmen said the long holiday would not have much impact on productivity and added that they had already implemented measures for the break. "[W]e already factored that [long holiday] in ... we do not see much impact [on productivity]," Philippine Chamber of Commerce and Industry Chairman Emeritus Donald G. Dee said in a telephone interview.
Federation of Philippine Industries President Jesus L. Arranza said the long break may affect workers who receive daily wages but noted that nobody was barred from working.
"There is no prohibition for them [workers] to work. They [employers] just have to pay a little premium. I do not mind at all. A holiday is not an order which states that nobody can work," he said.
Management and employees can set the terms on rendering work on holidays so there is no need to worry about productivity, he added.
