The real estate industry, which posted growth of 30% in the first quarter of 2007, is the fastest-growing sector in the Philippines, according to the National Statistical Co-ordination Board. The thriving business process outsourcing (BPO) - including contact centres - and information technology (IT) industries as well as continued low interest rates and overseas remittances are the main contributors. Statistics…
The Semiconductor and Electronics Industries in the Philippines, Inc (SEIPI) stated on October 9 that it expects to earn $32bn this year, up from last year's total of $29.6bn. While this is not as high as originally anticipated, global demand has been strong and appears set to continue. Originally SEIPI had anticipated growth of 10% for the year but due to power costs and the rising value of the peso,…
Remittances from Filipinos working overseas reached $9.3bn in the first eight months of this year, a year-on-year increase of 15.3%. This marked 16 straight months of remittances that have exceeded a billion dollars. According to the central bank, Bangko Sentral ng Pilipinas (BSP), total inflows are expected to reach $14.7bn this year, after inflows totalled a record $13.5bn last year. In a statement…
Demand for biodiesel in the Philippines is on the rise since a regulation requiring that a proportion of the environmentally friendly product be blended into the country's fuel supply came into effect six months ago. Officials are now considering how the country will boost local production of biodiesel to meet, and exceed, the standards imposed by the law. The Biofuels Act, which was signed into law…
The government of the Philippines plans to use state funds to address high power rates. Acknowledging it must do something about the rising cost of energy, the government announced last week that it intends to use more of the state's gas royalties, National Power Corp (Napocor) profits and wholesale electricity spot market (WESM) fees to reduce electricity charges. According to the Department of…
The Philippine Stock Exchange (PSE) has started the year on the defensive. The market's main index, the PSEi, has fallen by more 25% from its October 2007 high of 3,873. The exchange has also seen a sharp upswing in net foreign selling, a sharp drop-off in daily market turnover, and a host of IPO cancelations. Equally troubling is the fact that the market has been unable to gain any momentum of its…
The wave of consolidations that has swept through the Philippine banking sector over the past several years is far from over, according to Amando Tetangco, governor of the central bank. Growing competition and a more stringent regulatory environment will continue to push the nation's banks towards higher economies of scale and growth through acquisition. However, market watchers were warned that the…
For years, South African Airways (SAA) has dominated the skies of South Africa, but with the introduction of low-cost airlines, companies such as Mango, 1time and Kulula.com have managed to grab their own piece of the sky. With tickets as low as $24 for a one way trip from Johannesburg to Durban, these innovative companies afford a newly forming middle class the opportunity to explore their country. …
The Philippines has been facing some of the highest energy costs in the region for some time now – a fact any industrialist will attest to. It seems, however, that looming power shortages could possibly be averted as a result of the ongoing economic turmoil; thus giving the government and private sector precious time to boost domestic production. As it stands, the country relies heavily on outside…
The Philippines is on the verge of completing the long-awaited privatisation of its energy sector. Adopted in 2001, the Electricity Power Industry Reform Act mandated the sale of a minimum of 70% of the government-owned power-generating assets held by National Power Corporation (NPC). With the recent sale of the 600-MW Calaca Power Plant to the Consunji-owned DMCI Holdings, the Power Sector Assets…
