August BOP edges closer to $50B

August BoP surplus higher
by Roderick T. dela Cruz
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/september/6/business1.isx&d=2010/september/6

The Philippines posted another balance of payments surplus in August, pushing the gross international reserves to about $49 billion at the end of the month and on its way past $50 billion by the end of the year.

“It is going to be higher than the BoP surplus in July,” Bangko Sentral Gov. Amando Tetangco Jr. said of the figure in August, which will be officially released around the middle of the month.

Bangko Sentral reported that the BoP yielded a surplus of $91 million in July, boosting the cumulative figure in the first seven months of the year to $3.326 billion.

Tetangco said it was possible the GIR would exceed the $50-billion mark this year with the strong BoP surplus.

Tetangco said remittances, investments, business process outsourcing revenues, government borrowings and foreign exchange inflows of Bangko Sentral were supporting the balance of payments.

Sources said the country’s BoP position would be further augmented by a $1-billion inflow in the second half of the year, following the recent approval by the Monetary Board of the planned $1-billion global bond issue by the government.

The government is floating the global bond issue with a tenor of up to 10 years to help finance its budget deficit this year and next, sources added.

Tetangco said the government would review its projection for BoP and GIR by November, to take into account the latest trends.

“The way it looks, we may exceed the BoP surplus projected for 2010. We will be reviewing the numbers and release the updated projections by November,” he said.

The BoP, which represents the country’s transactions with the rest of the world, is expected to end the year with a surplus of $3.7 billion, and shore up the gross international reserves to about $49 billion to $50 billion.

Tetangco said the Philippines was one of the emerging economies experiencing increased foreign exchange inflows.

He said the BoP surplus would provide fundamental support to the Philippine peso.

“It can also be affected by what is happening to the US dollar, investors’ sentiment, and the global economic recovery. It is responding to a lot of different factors, but BoP will give the fundamental support,” he said.

The peso bounced back to 44.69 against the US dollar on Friday, in line with the rebound of emerging market currencies and equities.

HSBC, fund managers eye large infra projects

by Roderick T. dela Cruz
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/september/1/business3.isx&d=2010/september/1

HongKong and Shanghai Banking Corp. has committed to participate in the public-private partnership undertakings of the Aquino administration to boost infrastructure development in the country.

“We are very keen on the government’s commitment to infrastructure,” said HSBC Philippines president and chief executive Tony Cripps. “We are very excited about the prospects and we are very keen.”

The British bank, which has large infrastructure project finance in the Asia-Pacific region, is awaiting the government’s completion of its infrastructure project priority list. The bank has participated in a recent infrastructure forum organized by the government.

“We are more likely to look at transactions where we already have some experience along the lines of power space like power generation,” Cripps said.

Cripps said the bank might also look at other priority projects such as water and tourism infrastructure development that includes roads and airports.

Cripps said a number of international fund managers also expressed interest to infuse capital into the country during the recent roadshows led by the Finance Department abroad.

Junie Veloso, senior vice president and head of corporate banking for HSBC Philippines, said the bank was in the process of securing deals for several energy projects and one large telecommunication transaction. He declined to give details.

The Aquino administration during a recent infrastructure forum that it was looking at raising P400 billion to P500 billion to support infrastructure projects.

Hanjin of Korea to employ over 5,000 workers

by Julito G. Rada
Manila Standard
http://www.manilastandardtoday.com/insideBusiness.htm?f=2010/september/1/business2.isx&d=2010/september/1

Hanjin Heavy Industries Corp. Philippines will increase its workers in the Subic Freeport by over 5,000 after signing a contract to build 20 more vessels worth about $1.2 billion, the government said Tuesday.

Taek Kyun Yoo, general manager for external business of unit Hanjin Heavy Industries Corp.-Philippines, said the Korean shipbuilding giant would create more jobs at its Redondo Peninsula shipyard in Subic, Zambales to increase its workforce to 22,000 by the end of 2010 from the current 16,600.

Taek said the company’s order book rose to 56 vessels worth about $4.9 billion. He told Zambales Gov. Hermogenes Ebdane Jr. that Hanjin’s manpower requirements would further increase to 24,000 in 2011 and 25,000 in 2012.

Armand Arreza, Subic Bay Metropolitan Authority administrator, said Hanjin had remained Subic’s top exporter since last year. The Korea company registered exports with freight on board value of $372.74 million in the first half of the year.

“We expect Hanjin to remain as the Subic free port’s top exporter for the next few years, and to fuel the growth of Subic’s maritime industry,” Arreza said.

He said the SBMA expected Subic’s export FOB value to grow in the coming months, as Hanjin and other free port enterprises rolled out more products amid brightening prospects in global trade.

Ebdane said the increasing job generation at the Hanjin shipyard “augurs well for the development of the Zambales province, and to local efforts to strengthen the economic empowerment of Zambaleños.”