PHILDEVFINANCE (old news)

Saturday, April 14, 2012

Banks to stay open to receive tax payments

THE TAX bureau's authorized agent banks will be open on Saturday and
Monday up to 5 p.m. to accommodate taxpayers beating the April 16
deadline for the payment of income tax and the filing of annual income
tax returns.
Taxpayers may go to the following banks:

• Allied Banking Corp.;

• Bank of Commerce;

• Bank of the Philippine Islands;

• China Banking Corp.;

• Chinatrust Commercial Bank Corp.;

• Citibank Philippines;

• Deutsche Bank;

• Development Bank of the Philippines;

• EastWest Banking Corp.;

• HSBC Philippines;

• Land Bank of the Philippines;

• Metropolitan Bank & Trust Co.;

• Philippine Bank of Communications;

• Philippine National Bank;

• Philippine Veterans Bank;

• Philippine Trust Co.;

• Rizal Commercial Banking Corp.;

• Security Bank Corp.;

• Standard Chartered Bank;

• Union Bank of the Philippines; and

• United Coconut Planters Bank.

Large taxpayers -- the top 20,000 corporations, top 5,000 individuals
and government bidders -- who use the Bureau of Internal Revenue's (BIR)
electronic filing and payment system can make over-the-counter payments
at the above banks, except Allied Bank, Bank of Commerce, EastWest Bank
and Philippine Veterans Bank.

Meanwhile, small taxpayers who will pay less than P10,000 can do so
using GCASH. They should text "PAYBIR" followed by the amount, personal
identification number, tax type ("IT" for "income tax"), tax form (1700,
1701 or 1702), return period, taxpayer identification number, taxpayer
branch code, revenue district office code and registered name, and send
to 2882.

Individual and corporate taxpayers are required to pay their income tax
and file their annual ITRs, covering their 2011 taxable income, on or
before April 16. The deadline is typically set on April 15, but it falls
on a Sunday this year.

The BIR is tasked to collect P122.815 billion this month, its highest
revenue target for the year due to the payment and filing deadline. --
Diane Claire J. Jiao

--
------------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +639152919580 (Globe) and +639328590859 (Sun)
Websites:
CARLOSANI.COM - http://www.carlosani.com
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
SEEDFINANCE Corporation - http://www.seedfinance.net
Skype name: carlosaniph
-----------------------------------------------------------------------

***********
This message is intended only for the named recipient and may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any misdirected transmission. If you received this message in error, please notify us immediately by telephone at +63495010127 and immediately delete this message from your system. If you are not the intended recipient, you must not use, disclose, distribute or copy any part of this message. Thank you.
***********

Wednesday, April 11, 2012

Government eyes levy fund to revitalize coco trade

By Kristine L. Alave

Philippine Daily Inquirer

2:20 am | Wednesday, April 11th, 2012

Impoverished coconut farmers cannot wait forever for the Supreme Court
to ease their plight.

Secretary Joel Rocamora of the National Anti-Poverty Commission (NAPC)
said on Tuesday the Aquino administration was considering borrowing
against the sequestered assets acquired with funds from a coconut levy
imposed for nine years during the Ferdinand Marcos dictatorship.

Rocamora said the move was necessary as the court was taking ages to
resolve the ownership of 24 percent of shares of stocks in San Miguel
Corp. (SMC), which the government froze after the ouster of Marcos in
1986 pending an investigation into whether the portfolio was part of the
ill-gotten wealth the dictator and his cronies had amassed.

NAPC had drawn up a P10-billion, five-year "road map" to revitalize the
coconut industry, Rocamora said. The first year of the program could be
funded with loans.

"The plan is to borrow off the coco levy," he told the Inquirer. "By
June 30, the Aquino administration would be in power for one third of
its term. We don't have a lot of time. Whatever programs we want to do,
these have to be felt by the people. We don't want to wait forever," he
explained.

Rocamora said Budget Secretary Florencio Abad had floated the idea to
him. The Department of Finance has yet to weigh in on this, he said.

Last January, the Supreme Court affirmed a 2004 Sandiganbayan decision
that the controversial portfolio, designated in judicial proceedings as
SMC-CIIF shares, was acquired under the state-administered Coconut
Industry Investment Fund in an elaborate, clandestine scheme involving
14 holding companies, and, therefore, belonged to the government.

Shares valued at P85B

The high tribunal said this asset should now be used to rehabilitate the
industry, wracked by falling harvests because of aging trees and climate
change, and to ameliorate the conditions of some 3.5 million coconut
farmers and their families comprising a fourth of the nation's
population described as the "poorest of the poor."

A motion for reconsideration has been filed by the Philippine Coconut
Producers Federation and the case remains pending. The federation is
claiming ownership of the bloc in behalf of 1 million unnamed coconut
farmers.

An official paper submitted to a Senate committee inquiry put the value
of this
24-percent bloc of 700 million shares of stocks at P85 billion,
including interests and dividends.

Implementing agencies

A year ago, the Supreme Court, in a decision derided by a dissenting
justice as the "joke of the century," awarded another sequestered SMC
portfolio, consisting of nearly 500 million common shares valued at P58
billion at P117 per share, to Eduardo "Danding" Cojuangco, current SMC
chairman and uncle of President Benigno Aquino III. Oppositors said
Cojuangco had borrowed from United Coconut Planters Bank (UCPB), which
he then headed, to purchase the shares in 1983, violating a fiduciary trust.

The Aquino government plans to establish an interagency group to manage
the assets that will be placed in a trust fund, according to Rocamora.
He said no decision had yet been made on how much money should be
borrowed against levy funds deposited in UCPB, which has been criticized
for granting questionable loans to SMC.

He said poverty intervention programs would be implemented by his
commission and the Department of Social Welfare and Development.

Aside from poverty alleviation projects, the money will be used for
fertilizing the soil, replacing old trees, and providing capital for
agricultural enterprises for small they can diversify their income sources.

Neglected sector

About 3.4 million hectares of the country's farmlands are planted with
340 million coconut trees, making the country the world's biggest
exporter of coconut products, according to the Philippine Coconut Authority.

Although the sector is the biggest dollar-earner in agriculture, it is
largely neglected. Rural poverty incidence in coconut-producing
provinces is 60 percent.

The commission has identified 609 poorest municipalities in the country
of which 493 cultivate coconut.
In the first year of the road map, the funds will go to 153
municipalities in Camarines Sur, Leyte, Albay, Quezon, Sorsogon,
Camarines Norte, Lanao del Norte, Northern Samar, Eastern Samar, Davao
Oriental and Sarangani.

Militant groups had urged President Aquino to certify as urgent a bill
that would establish a trust fund for coconut farmers, fearing that the
levy assets would be diverted to finance agrarian reform and the
distribution of Hacienda Luisita, which is owned by his family.

The Cojuangco-Aquino clan is seeking P10 billion as "just compensation"
for the sugar plantation, which the Supreme Court, in a unanimous
decision, in November ordered distributed to its 6,000 farm workers.

Tuesday, April 10, 2012

More rural banks tap BAP’s credit info bureau

More rural banks tap BAP's credit info bureau

ACCURATE credit data on borrowers and faster loan processing have
encouraged more rural banks to tap the Bankers Association of the
Philippines' (BAP) credit bureau, according to the association of rural
banks.
In a statement posted on its Web site last March 29, the Microenterprise
Access to Banking Services (MABS) said the number of rural banks that
accessed the BAP's credit bureau significantly increased last year from
2010.

MABS reported that the number of rural banks enrolled in BAP's credit
bureau rose to 77 last year from 20 in the year before. The number of
"active users," meanwhile, totaled 51 from 13 in 2010.

It also noted that the number of inquiries done by rural banks nearly
quadrupled to 44,909 last year from 11,509 inquiries a year earlier.

BAP is the grouping of commercial and universal banks.

MABS is a program supported by the United States Agency for
International Development. It is helping the Rural Bankers Association
of the Philippines (RBAP), the association of rural banks, come up with
new financial services.

"The increase in the number of rural banks tapping the BAP's credit
bureau can be attributed to higher awareness among rural bankers of the
benefits they get from having access to a credit bureau," said RBAP
President Ian Eric S. Pama in a phone interview last Wednesday.

"Once a rural bank has access to BAP's credit bureau, it enjoys
protection against credit applicants who have bad loan records in
commercial, thrift or other rural banks because it can verify a
particular client's record," he said.

Another benefit is, the processing of loan applications becomes faster.

"Using BAP's credit bureau, a rural bank can approve or turn down a loan
application in a few hours because it would immediately know a loan
applicant's credit profile and decide from there if the loan application
should be approved or not," Mr. Pama said.

In the statement, MABS said: "One factor [for the higher number of rural
banks enrolled in BAP's credit bureau and higher number of inquiries] is
the reduced fee to both enroll and access the system."

Rural banks may now enroll in BAP's credit bureau for free and pay P5
per credit inquiry.

Mr. Pama agreed and added that BAP's only requirement for rural banks
and other institutions accessing its credit bureau is the monthly
updating of their data or negative file information system (NFIS).

The NFIS is a record of commercial, thrift and rural banks' delinquent
borrowers.

MABS also pointed out the credit bureau is one of the "important tools
that could improve the analysis of potential clients' credit histories
and assist in better managing multiple borrowings and over-indebtedness."

For his part, Manuel R. Batallones, manager of BAP's credit bureau, in
the statement said delinquent loan borrowers are "flagged."

"...[R]ural banks naturally benefit from sharing these accounts as a way
to improve their loan collection efforts," Mr. Batallones said.

The BAP's credit bureau and the recently launched Microfinance Data
Sharing System -- a credit bureau for institutions practicing
microfinance -- are the only two credit bureaus operating in the country
at present.

The government has yet to launch the central credit information bureau
created through Republic Act No. 9510 or the Credit Information System
Act of 2008. -- ARRG

Lower Tax On Microenterprises Proposed

Written By CHINO S. LEYCO
April 7, 2012, 10:52pm

MANILA, Philippines — In a bid to bolster the country's
microenterprising program, a lawmaker has filed a bill introducing a
lower tax of only 2 percent on microenterprise development institutions
engaged in activities that directly benefit the poor.

Senate Bill 3162 also known as the "Microenterprise Development
Institutions Act of 2011" recognizes the role of microenterprise
development (microdev) institutions in boosting the financial capacity
of millions of poor families with its income-and-employment opportunities.

"We should create a viable environment to advance microenterprise
development and address the constraints that hamper their growth, among
which is the lack of access to affordable credit and business
development opportunities," Senator Franklin M. Drilon said.

"Our proposed measure seeks to shore up government's poverty eradication
programs by partnering with qualified microdevs and mandating them to
implement microenterprise development strategy which seeks to empower
the poor," he added.

The bill mandates that these institutions should craft pro-poor programs
and services such as providing them access to reasonable and affordable
credit and related services including microfinance, microinsurance,
health care and microhousing, and as well as organizing training to
business development, Drilon said.

In recognizing its contribution, microdevs will pay a tax of only two
percent of their gross income in lieu of all national and local taxes to
be remitted to the national government.

The tax proceeds will go to the People's Development Trust Fund
established under Republic Act No. 8425 otherwise known as the "Social
Reform and Poverty Alleviation Act", the bill said.

An already established mircodev should have at least PhP20 million net
worth and at least PhP10 million for newly-organized, the lawmaker noted.

The bill also creates an accrediting body to be chaired by the National
Anti-Poverty Commission (NAPC) tasked to identify and recognize
micro-development institutions and to monitor their activities pursuant
to the provisions of the act.

Among its members are the Departments of Finance, Trade and Industry,
the Central Bank, the Security and Exchange Commission, and the
Microfinance Council of the Philippines.

Carlos Ani

Financial tool to deal with poverty

Framework
By Elfren Sicangco Cruz

Micro-insurance, especially combined with micro-financing, is a major
developmental tool for poverty alleviation because the poor, who are
vulnerable to fall back into poverty in times of hardship such as when a
breadwinner dies or natural disasters destroy their property, are given
access to financial protection schemes.

The overwhelming majority of people in developing countries live in a
state of poverty. The main hindrances to escaping this cycle of poverty
include economic crisis, natural disasters and social shocks. Unlike the
rich, the poor are not able to cope with serious illnesses, death of
livestock, loss of property, droughts, crop failures, job layoffs and
especially death of breadwinners.
Many development efforts, like micro financing, offer possible means of
alleviating poverty. This is a method of helping the poor, especially in
rural areas, by giving loans with minimum collaterals and other terms.

Unfortunately, the risks confronting the poor have greater financial
impact and occur with greater frequency than the same type of risk for
the rich. Also, the vulnerability of poor people is exacerbated each
time they incur a loss, creating a vicious cycle that prevents any
lasting improvements in their human and economic welfare.

In a 2007 paper presented by Professor Mamun of Bangladesh, he says:

"Crises are recurrent in the lives of the poor. Such crises -- personal,
social, or natural -- often involve high expenditures ad drive poor
families deeper into poverty. Most common crises are accidents, sudden
hospitalization and death of a bread earner, and loss of crops or
assets. Expenses incurred during such crises are met either by borrowing
from moneylenders, sales or mortgaging of assets or by drawing on scarce
saving resulting into a simultaneous reduction in income and saving, and
an increase in debt and expenditure. Each crises leaves a poor family
weaker and more vulnerable. Traditional micro-finance schemes do not
address such vulnerabilities and the necessity of risk reduction for the
ultra poor. The informal coping mechanisms offer limited protection and
are less available to poorer households and break down when most needed.
Formal financial services can offer greater benefits at lower cost than
informal mechanisms; but, there is vulnerability to risk is reducing
effectiveness and financial performance of micro-credit."

UN Secretary General Kofi Annan, following the adoption of 2005 as the
International Year of Microcredit, said: "The stark reality is that most
poor people in the world still lack access to sustainable financial
services, whether it is savings, credit or insurance. The great
challenge before us is to address the constraints that exclude people
from full participation in the financial sector... Together, we can and
must build inclusive financial sectors that help people improve lives."

Fortunately, for low-income peoples not traditionally covered by
traditional insurance, financial protection schemes that reduce
vulnerability to unexpected and catastrophic life shocks have been made
available. This method is referred to as micro-insurance which can cover
loss or injury to health, property, crop, weather, and life or similar
risks to the poor.

The Micro Insurance Academy in New Delhi, India offers a definition:

"There is no single and simple definition of micro-insurance today... We
apply a broad definition of micro-insurance, out of which the definition
of insurance is the simpler part: Insurance is the provision of
financial protection contingent on the occurrence of a predefined risk
in exchange for an ex-ante premium payment. Insurance functions through
pooling the risk of various insured and diversifying their risk over
larger numbers. Following this definition, social assistance programs
(such as targeted cash transfers) and fully subsidized insurance schemes
are not included...."
The definition for micro-insurance is the following:

• Insurance for low-income people

• Insurance with small benefits

• Insurance involving low levels of premiums
with:
--Simple, easy understood contracts
--Few if any exclusions
--Simple claim process while still controlling for fraud
--"New collection" modes
--Multi-task intermediaries
--Often community or group pricing.
In the Philippines, a working definition of micro-insurance has been
drafted with the following features:

• Simple product design that clearly identifies the face amount,
benefits and terms of the insurance uniformly applied to the clients.

• Amount of premiums and contributions of the insurance coverage to be
paid by an individual, computed on a daily basis, does not exceed 2% of
the current nominal daily minimum wage rate for the non-agricultural
workers in Metro Manila as determined by the Department of Labor and
Employment,

• Maximum amount of life insurance coverage is not more than 200 times
the daily minimum wage rate for non-agricultural workers in Metro Manila.

• Policy contract is easily understood by the client or member.

• Straightforward and uncomplicated documentation requirements.

• Frequent collection of premium or contribution that coincides with the
cash flow of the insured.

• Fast and timely payment of insurance claims.

Not only does micro-insurance assist families, in times of crises, from
falling back into poverty but also makes it possible for the poor to
take more risks. For example when farmers are insured against bad
harvests resulting from drought, they can grow crops which give high
yields in good years and bad yields in year of drought. Without
insurance they will be inclined to do the opposite since they have to
safeguard a minimum level of incomes. Crops will be grown which are more
drought resistant but which have much lower yield in good weather.

Micro-insurance, combined with micro-financing, provide the incentive
for the poor to become entrepreneurs by staring livelihood projects and
small businesses.

Giving access to all forms of micro-insurance will be an effective way
of improving the lives of the poor and also become a tool for economic
development.

Dr. Elfren S. Cruz is a professor of Strategic Management at the MBA
Program, Ramon V. Del Rosario College of Business, De La Salle
University. Please send comments or questions to elfrencruz@gmail.com

Saturday, April 7, 2012

Philippines Filipino Tuna Industry Gets a Break

Philippines Filipino Tuna Industry Gets a Break
Filipino Tuna Industry Gets a Break
Written by Edwin Espejo
FRIDAY, 06 APRIL 2012

Maybe a little more sashimi

Limited number of vessels allowed back into critical fishing area

Philippine tuna producers can heave a sigh of relief, at least
temporarily. The Western and Central Pacific Fisheries Commission has
decreed that the Philippines be allowed a limited number of fishing
vessels in two pockets of Western Pacific high seas for at least a year
even though several island-nations in the area were pushing for tighter
controls.

These pockets of were closed to tuna and purse seine fishing for two
years beginning in 2010. The area covers more than 306,000 square miles
of open seas south of Micronesia and north of Indonesia and Papua New
Guinea where more than 38 Philippine-flag purse seine fishing ships used
to operate.

Although the vast Pacific supports a tuna fishery worth US$1.8 billion
annually, accounting for a third of global catches, conservationists
have repeatedly warned that five of the eight tuna species are at risk
of extinction, with all three bluefin species – southern, Atlantic and
Pacific – susceptible to collapse from overfishing. The International
Union for Conservation of Nature study said seven of the 61 species of
so-called "scombrid" or billed fish, are under severe threat.

It is a threat that has dire implications for the Philippine tuna
industry, much of it centered in General Santos City at the southern tip
of Mindanao island, which is acknowledged as the country's tuna capital.
The city is host to six of the seven tuna canneries in the country, with
120,000 residents directly or indirectly dependent on the industry. The
country is the world's fourth largest producer of fresh-chilled and
canned tuna products.

In the early days of the industry, tuna could be caught just a little
over 100 meters from shore off Mindanao. Today, the closest they can be
found in volume is a good six hours from the coastal towns of Kiamba and
Maasim. On a bad trip, three weeks in the open seas off Sarangani Bay
will net a zero catch.

In 2011, because of the ban on the selected areas, total tuna landings
at the General Santos City fishing port complex dropped by 21 percent,
from 143,139.17 metric tons in 2010 to 112,891.81 MT last year. The
volume of landings of mature yellowfin tuna has also been on a steady
decline, from 33,369 MT in 2007 to a mere 9,061.13 last year.

The seas off Palau, Micronesia, Papua New Guinea and Indonesia are areas
closest to the Philippines where local tuna fishing companies frequently
operate and further south west off the Solomon Islands, Fiji, Tuvalu,
Nauru, Marshall Islands, Micronesia, Papua New Guinea and parts of
Kiribati.

Opponents of the ban argue that it has had an adverse impact on
employment and the Philippine economy, especially in southern Mindanao.
The opponents say they aren't pushing for the resumption of so-called
super seiners, 70-meter giants that can land up to 200 metric tons in a
single catch by settling a large circular net around the school of fish,
then pursing the bottom together to capture them. Those vessels are
largely stationed in Papua New Guinea where two Filipino companies also
own tuna separate canning plants.

The two-year ban has clearly left the Philippine tuna industry in a
quandary, with some fishermen saying fishing must be curtailed to allow
the fishery to regenerate, with others saying fishing must continue
because of the threat to livelihoods. The volume of landings of mature
yellowfin tuna has been declining steadily in any case from overfishing.
Today more than 90 percent of raw materials for the city's six canning
plants have been sourced from either abroad or from Manila. Some
industry figures have argued that the best solution would be for the
government to pay to decommission some vising vessels to cushion the
impact of a ban. One industry figure earlier estimated that the
government would need to set aside at least P1.l2 billion (US$27.7
million) to pay to address the issue.

With the Philippine seas south of Mindanao already overfished, local
tuna producers have looked beyond the country's fishing grounds for
their operations. In the 1990s, local producers began to open up
operations in Indonesia and in Papua New Guinea. By the turn of the
millennium, several Filipino companies had already put up canning plants
in these countries known for their rich tuna fishing grounds.

But while production has declined, increased international prices of
canned and processed tuna as well as fresh chilled yellowfin exports are
keeping the Philippine tuna industry afloat. Over the last five years,
the annual export earnings of Philippine tuna have remained within the
range of US$280 million despite reduced production. Six years ago,
before fuel costs skyrocketed worldwide, the average price of a box of
skipjack was P600 (US$14) per 33-kilo box. In early 2010, it was US$48.

It is not yet clear how many of these Philippine fishing vessels will be
allowed back in the contested area but industry sources in General
Santos City say the lifting of the ban will benefit RD Fishing and
Frabelle Fishing, two of the country's largest tuna fishing fleets,
which have already established bases in Papua New Guinea and have
concession areas in Palau. The two Pacific Island nations are near these
pockets.

Although the fisheries commission lifted the ban, it is still imposing a
three-month suspension of each year on the use so-called fish
aggregating devices, which draw fish to areas where they can be netted
in large numbers. It also required all fishing vessels in the area to
allow 100 percent observer coverage on board all purse seine operations.

The next meeting of the fisheries commission, a sanctioning body with 18
members and 33 participating countries, is to be held in the Philippines
in December. The Philippines is a signatory to the conference.

(Edwin Espejo blogs for Asian Correspondent at Chronicles from Mindanao.)

Thursday, April 5, 2012

ASKI, WTRC to open a community social enterprise

Thursday, April 5, 2012

ASKI, WTRC to open a community social enterprise

by Marizol Padilla

NUEVA ECIJA, Philippines- The Alalay Sa Kaunlaran, Inc. (ASKI), a
non-government organization based in Cabanatuan City and the Wholistic
Transformation Resource Center (WTRC), a non-stock, non-profit Christian
foundation will soon open a collaborative social enterprise dubbed as
ASKI Waterhope.

The ASKI Waterhope project in Barangay Lourdes, Cabanatuan City is a
water refilling station project being offered by WTRC in support to the
objective of making potable water accessible to poor communities.

ASKI considers the establishment of a water refilling station that will
offer affordable drinking water and at the same time provide additional
source of income for ASKI clients in the community through dealership.

According to Rolando B. Victoria, ASKI executive director, the income
that will be generated by the project will be used to support and fund
the community development programs in Barangay Lourdes and its nearby
communities.

Aside from the water refilling station, a community center was also
established beside the station. The center will serve as a venue for the
communities' activities. Recently, a feeding program for the children
was already conducted in the center. It was attended by 55 children in
the community.

The ASKI Waterhope Water Refilling Station will be managed by Alalay
Holding and Trading Corporation (AHTC), one of the mutually reinforcing
institutions of ASKI established in November 24, 2011, under the
supervision of Augusto Caesar G. Pascual, acting general manager of AHTC.

"I encourage everyone to be part of this program because this will not
only provide you additional income but also generate funds for community
projects," Pascual said during the soft launching and feeding program
activity.

The project is expected to start its operation on April 20, 2012 and
will benefit around 2,242 people in the community.

ASKI, for many years has been fulfilling its mission as a social
development organization. It is not only concern with the economic
condition of their clients but also on their social transformation. It
has continuously developing programs and services to serve poor
communities in areas of its operation.

Monday, April 2, 2012

More PH families investing OFW money, BSP says

More PH families investing OFW money, BSP says
Number still small, however, at just 8.5% of households
By Michelle V. Remo

Philippine Daily Inquirer

9:24 pm | Sunday, April 1st, 2012

MANILA, Philippines—The number of Filipino households investing a
portion of the money they receive from loved ones based abroad is
steadily increasing, according to the Bangko Sentral ng Pilipinas.

The BSP survey conducted from Jan. 23 to Feb 8 this year showed that 8.5
percent of households that depend on remittances invested a portion of
the money, usually in small businesses.

This is higher than the 6.4 percent recorded in the survey conducted the
previous quarter and the 5.7 percent registered in the first quarter of
last year.

The BSP said putting money in investments creates a higher multiplier
effect for the economy, given that micro businesses generate employment
and contribute to the increase in overall incomes.

BSP data also showed that 42.7 percent of remittance-dependent
households put the money in savings, indicating greater consciousness of
the need to secure their future.

This is slightly higher than the 42.6 percent registered in the previous
quarter and the 41.4 percent recorded in the first quarter of last year.

The survey covered 589 households all over the country.

The BSP said that it is promoting savings and investments among Filipino
households dependent on remittances through its financial literacy
program, which it conducts in various parts of the country.

As part of this thrust, the central bank last week inked a partnership
deal with the Commission on Filipinos Overseas (CFO) to further promote
investments and entrepreneurship among overseas-based Filipinos and
their families.

Led by the BSP and the CFO, together with assistance from other
government and non-government entities, the Remittances for Development
Council (ReDC) was recently established.

ReDC is mandated to craft policy recommendations that cater to the
welfare of overseas-based Filipinos and their families, and to conduct
various programs on entrepreneurship and investments.

The Philippines is the fourth-biggest recipient of remittances, next to
China, India, and Mexico.

Last year, remittances sent to the Philippines amounted to $20.1
billion, rising by 7.2 percent from $18.8 billion the previous year.

SEC to plug loopholes in Corporation Code

By Zinnia B. Dela Peña, The Philippine Star

Posted at 04/01/2012 3:19 PM | Updated as of 04/01/2012 3:20 PM

MANILA, Philippines -- The Securities and Exchange Commission (SEC) is
seeking to plug loopholes in the Corporation Code in line with efforts
to promote good corporate governance.

SEC chairperson Teresita Herbosa said the agency wants to weed out
delinquent firms and shorten the maximum life of companies from the
maximum of 50 years to only 25 years.

Herbosa said the agency also aims to put more focus on revocation to
make sure only competent corporations operate. "It would be bad for the
business community if corporations whose registration license had
already been revoked would continue to operate," she said.

There are around 700,000 firms registered with the SEC but only about
half are operating and actively complying with the regulatory requirements.

Last year, the SEC chalked in record revenues of P1.4 billion or nearly
twice the agency's target of P800 million.

Herbosa said bulk or 85% of the agency's revenues came from filing fees
from business registration, initial public offering and other share sale
transactions. The remaining 15% of the collections came from penalties
imposed on corporations.

She noted that business registrations have dramatically risen in the
last three years or after the currency crisis that erupted in 2008.

Herbosa said she is optimistic that the SEC will continue to post higher
revenues this year especially with the expected influx of initial public
offerings.

At least three corporations have so far filed their IPO applications
this year. These are East West Banking Corp., GT Capital Holdings and
Calata Corp. I-Pay Commerce Ventures Inc. has also filed its application
to list by way of introduction along with Lopez-owned Rockwell Land.

‘More working-age Pinoys will boost PHL economy’

'More working-age Pinoys will boost PHL economy'

WEDNESDAY, 28 MARCH 2012 19:17 JUN VALLECERA / REPORTER

THE Philippines is approaching that stage where the bulk of its citizens
are of working age and in a position to contribute in a meaningful
manner to nation building, the Bangko Sentral ng Pilipinas said on
Wednesday.

BSP Gov. Amando M. Tetangco Jr., following a speech delivered at a forum
hosted by the monthly publication Euromoney, said this stage is known
among demographers as a "sweet spot," or one when Filipinos too young to
work account for less than 30 percent of the population and those too
old contribute equal only 15 percent.

"These are people who have the purchasing power, the purchasing capacity
that can drive consumption and investments and therefore a faster
economy," Tetangco said of their importance.

This particular age group of able-bodied Filipinos has average age of
22.2 years, he said, citing a United Nations document on World
Population Prospects whose revised edition appeared in 2010.

According to Tetangco, the Philippines is expected to reach this stage
of development by 2015 and should also reap the demographic benefits
neighboring Thailand or Malaysia made full use of years earlier.

"If the Philippine economy is growing [by then], underlying that growth
would be an increase in employment as well. As you grow, you can
generate more employment and therefore you can have more people
employed," he said.

"If you look what is happening in the business process outsourcing [BPO]
sector, the Philippine has become an important BPO center because of the
availability of skilled manpower. And if you look at the age of BPO
employees they are quite young but they receive good salaries and
therefore they are able to finance consumption," Tetangco said.

Tetangco said the Philippines is acknowledged as the last major Asian
economy to enter the sweet spot.

"If you are an investor and you're looking at the potential of an
economy in terms of the size of the market, they will consider this
demographic window that the Philippines is about to enter," he said.

India and Malaysia were the last to enter the sweet spot in 2010, with
Malaysia and Vietnam having done the same five years earlier, according
to the UN World Populations Prospects report released in 2010.

The economies he cited benefited immensely from a young population whose
aggregate contribution helped make them the economic heavyweights they
are at present, Tetangco said.

Jose Rizal banked with now 140-year-old institution

Rizal banked with now 140-year-old institution

(The Philippine Star) Updated April 01, 2012 12:00 AM

MANILA, Philippines - At the turn of the 19th century, national hero Dr.
Jose Rizal, then taking up higher studies in Europe, proved to be just
as concerned about the exchange rate, like many overseas Filipinos today.

After all, as a student, the young Rizal was still getting his allowance
from his parents back home. A few dollars saved here and there would
certainly go a long way until the next round of financial succor.

In the book called "One Hundred Letters of Jose Rizal to his Parents,
Brothers, Sisters, Relatives" found today in the Lopez Memorial Museum
and Foundation, it is said that Rizal wrote his parents and explicitly
advised them:

(Paris, January 1, 1886 - Boulevard Arago 65)

"I received a draft of $200 which when collected in francs gave me only
192, so 4% is lost. With more reason I repeat to you now what I have
told. If you are to send me money do it by the Chartered Bank of India,
Australia and China which is very much better."

The Chartered Bank of India, Australia and China merged with the
Standard Bank of British South Africa in 1969 to become Standard Chartered.

The bank that Rizal found worthy enough to endorse at the time is now
marking its 140th year of service to the country.

If Rizal were alive today, it is not far-fetched to imagine that the
national hero would still have good words for the bank.

Not only has Standard Chartered stayed in the country through good times
and bad times, or through countless revolutions and political upheavals.
Standard Chartered is also giving to the Philippines this year, to
commemorate its 140th anniversary, a $1-million pledge to help eliminate
curable or preventable blindness in the country.

An ophthalmologist by profession, Rizal would have been happy with the
bank's anniversary gift.

Through "Seeing is Believing," the bank's global initiative to tackle
preventable blindness, the donation will be used for a nationwide
project that will focus on the treatment of cataract, refractive error
and childhood blindness. The project will be undertaken over three years
in partnership with local beneficiary, CBM/Cataract Foundation of the
Philippines Inc. (CFPI).

Almost 450,000 Filipinos are blind today and, of this number, 90,000 are
children.

However, 80 percent of blindness is avoidable, meaning preventable or
curable. This is where Standard Chartered would like to make a difference.

In a Gala Night held at The Peninsula Manila recently, Group executive
director and CEO for Asia Jaspal Bindra said, "This milestone occasion
serves to express our gratitude to the country and the Filipino people,
including our partners, clients, customers and staff, for being a big
part of our 140-year journey here in the Philippines. Through our
$1-million 'Seeing is Believing' pledge to help eliminate avoidable
blindness in the Philippines, we hope to recommit ourselves to be here
for people, here for progress, here for the long run, here for good."

Meanwhile, Philippines CEO Mahendra Gursahani said, "Standard Chartered
Bank is extremely proud of its unbroken record of 140 years of service
in the Philippines. It certainly speaks of our unwavering commitment to
partner with the country and, traditionally, that has been our position
in all the countries we're in. Even through civil wars, world wars or
other kinds of social unrest or upheavals in some nations, we continue
to service our banking clients. We don't get scared easily and we remain
true to our commitment to service. This is the essence of our brand
promise to be here for good."

The bank's foremost client, Rizal, would have been appreciative. Rizal,
after all, was a physician who trained in ophthalmology under two
prominent European ophthalmologists of that era, Louis de Wecker and
Otto Becker.

Rizal was said to have been inspired to study ophthalmology because of
his mother's failing eyesight and his desire to help her. He practiced
ophthalmology mainly in Calamba, Hong Kong and while in exile in the
town of Dapitan. His specialized skills brought him renown, and patients
often traveled long distances to seek his care.

His mother's ailment was cataract and it is reported that in 1892, Rizal
successfully removed the cataract from his mother's left eye. Several
months later, he sent her glasses with instructions to cover the right
lens until he could operate on that eye, and two years later, in
Dapitan, he extracted the right cataract.

More than a century hence, the donation from Rizal's favorite bank is
coming in to benefit thousands, hopefully, of his visually impaired
countrymen.

The anniversary gift will give many needy cataract patients a chance at
avoiding blindness.

Add to these numbers those whose eyesight could be saved by merely
treating refractive error. It is a gift to the Filipino people our
national hero would have greatly approved, because not everyone is
fortunate to have an ophthalmologist like him in the family.

Rural banks reach ‘UNBANKABLE’ customers via text

Rural banks reach 'UNBANKABLE' customers via text

MONDAY, 02 APRIL 2012 01:58

TECHNOLOGY is a friend to the country's rural lenders who count on
so-called application-to-person or A2P text messages as added service to
hard-to-reach clients often ignored by the big boys of the industry.

A2P messages are automated messages sent by a software application to
mobile phones and takes advantage of the fact that while 40 percent of
municipalities in the country still do not have a bank that services
their financial requirements, almost all Filipinos own a mobile phone.

According to Ian Pama, President at the Rural Bankers Association of the
Philippines or RBAP, A2P messages are often used for general alert
purposes but are used in this case for linking clients to the various
aspects of mobile banking.

Mobile banking in the Philippines has allowed even the unbanked to
participate and have access to banking services that previously cost an
arm and a leg if these are available at all.

"Mobile phones have been converted into payment platforms to help
address the banking needs of consumers in rural areas," Pama said.

"With the expected boom in A2P messaging in the coming years, rural
banks will be presented with more incentives to fully utilize mobile
banking and make it as one of their primary services going forward," he
said.

Mobile banking and new technological innovations such as A2PP "help fill
in the gaps in a way that is cost-effective for both rural banks and our
customers," Pama added.

RBAP is also looking to capitalize on the projection of a strong growth
in the mobile banking business this year, driven by the continuous
flexibility of carriers to adapt according to market needs.

"Now, more than ever, we should use mobile banking to reach out to our
clientele and deliver our service to them. If the prognosis of research
firms is correct, then we should ride this wave as much as we can," Pama
said. "RBAP has long been an active proponent of mobile banking. But
with forecasts backing us up, they give the association's vision more fuel."

Information and Communications Technology (ICT) research firms see a big
jump in the Philippine mobile banking industry this year. Based on its
2012 predictions for the Asia Pacific Region, ICT research firm XMG
Global, founded and headed by Filipino-Canadian Lauro Vives, said the
region will be the world's fastest growing mobile and broadband market
with over 3 billion connections this year.

According to XMG, the growth will be driven by three factors: continuous
efforts of telecommunications companies to invest an average of 17.4
percent of revenues into capital expenditures to meet emerging demand;
variety and flexibility of payment and billing schemes; and low-cost
handsets.

In the Philippines alone, Smart Communications Inc. and Globe Telecoms
Inc. are investing close to P100 billion to upgrade their networks.
--Jun Vallecera

114 traders, coops may import duty-free rice

Published : Friday, March 30, 2012 00:00 Article Views : 318 Written by
: JAMES KONSTANTIN GALVEZ

State-run National Food Authority (NFA) on Thursday said it may award to
some 114 traders and farmers' cooperatives the rights to import about
380,000 metric tons of rice, tax free.

Angelito Banayo, NFA administrator, said 114 out of the 364
pre-qualified bidders who participated in two separate auctions will be
given permits to import rice under the agency's tax expenditure subsidy
program.

Under the TES, both private traders and farmers' cooperatives can import
rice at zero tariff in exchange for service fees paid to the grains agency.

A total of 19 traders will be allowed to import a maximum of 10,000
metric tons of rice each, while 95 farmers' cooperatives and
organizations will be given rights to import a maximum of 2,000 MT each.

NFA earlier said it expects to earn as much as P2.1 billion from the
380,000 MT of rice to be imported this year.

It also expects a record income of P1.14 billion from the winning
bidders' service fee.

In 2011, the grains agency earned as much as P1.53 billion for the
importation of 660,000 metric tons of rice at an average bid of P2.31 or
P115.50 per 50 kilograms.

In the past two years, the allocation for the Private Sector Financed
(PSF) importation was done through an open bid on the service fees. In
2010, the PSF allocation was done via a first come-first served basis at
a pegged service fee of P25 per bag or P0.50 per kilogram of rice imported.

Under this practice, Banayo said that government only earned a measly
P110 million for the 2010 PSF imports of 220,000 metric tons. Meanwhile
the government, through NFA, bought 2.25 million metric tons of imported
rice.

The volume imported under the PSF program was at 660,000 MT (600,000 MT
for the open portion and 60,000 MT for farmer's cooperatives). NFA
buying was at 200,000 metric tons for a total of tax-subsidized
importation of 860,000 metric tons, or about a third of the 2010 volumes.

For 2012 the PSF volume was reduced to 380,000 MT (190,000 MT for the
open and 190,000 MT for the farmers' cooperatives), while NFA will
procure 120,000 metric tons more, for a total of 500,000 metric tons,
equivalent to only a fifth of the record 2010 high volumes.

Saturday, March 31, 2012

Citi eyes MSME loan market

By Lawrence Agcaoili (The Philippine Star) Updated March 31, 2012 12:00 AM

MANILA, Philippines - American banking giant Citibank NA is pushing for
amendments to the existing law on micro, small, and medium enterprises
(MSMEs) to level the playing field between local and foreign-owned banks.

Citi country officer Sanjiv Vohra said in an interview with reporters
that foreign banks are looking forward to changes in existing law to
allow them to provide capital to businesses currently not covered by the
existing legislation for MSMEs.

Vohra pointed out that the relevant amendment is now being threshed out
in the House of Representatives and its counterpart measure in the Senate.

The House of Representatives enacted Republic Act 6977 otherwise known
as "The Magna Carta for Small and Medium Scale Enterprises" in 1991 but
was amended through RA 8289 in 1997 and RA 9501 in 2008.

Section 3 of the law defines MSMEs as any business activity or
enterprise engaged in industry, agribusiness and/or services, whether
single proprietorship, cooperative, partnership or corporation whose
total assets, inclusive of those arising from loans but exclusive of the
land on which the particular business entity's office, plant and
equipment are situated.

Enterprises are classified as micro if their assets are not more than P3
million while those with assets of between P3 million and P15 million
are classified as small. On the other hand, medium enterprises are
companies with assets of between P15 million and P100 million.

The law provides that the definitions should be subject to review and
adjustment by the Micro, Small and Medium Enterprises Development
(MSMED) Council upon recommendation of sectoral organizations concerned,
taking into account inflation and other economic indicators.

The law permits even foreign lenders to acquire real-estate properties
offered as collateral by defaulting borrowers so long as these
properties are disposed of within five years.

While this provision allows both local and foreign lenders the same kind
of protection in case of borrower default, Vohra said the recognized
asset threshold of P100 million for SMEs is too low for foreign lenders
like Citi.

"For us, micro, small and medium scale entrepreneurs go beyond assets
than the law limits at only P100 million," he said.

Section 13 of the law provides that all lending institutions are
required to set aside a portion of their total loan portfolio based on
their balance sheet. Lenders should set aside should at least be five
percent by the end of the year of the effectivity of the law, 10 percent
by the end of the second year through the end of the fifth year, and
five percent by the end of sixth year and may come down to zero by the
end of the seventh year.

The Bangko Sentral ng Pilipinas (BSP) has boosted the industry's lending
program for MSMEs by launching 21 credit surety fund (CSF) programs
across the country.

Initiated in August 2008, the CSF is a fund created through the pooling
of cash contributions from participating cooperatives with an equivalent
counterpart contribution from the local government unit and donations
from partner institutions.

In lieu of acceptable collaterals, the fund would serve as guarantee for
loans extended by banking institutions to MSMEs participating in the
program.

The innovative credit enhancement program is aimed at meeting the
financing requirements of enterprising cooperatives and capital-short
businessmen who often experience difficulty in obtaining loans from
banks due to lack of collaterals and credit track records.

Under the CSF Program, a formal source of credit may now be accessed
even in the absence of acceptable collaterals by way of a surety cover
issued by the CSF in favor of the lending bank.

Wednesday, March 28, 2012

Microfinance experience in PHL shows the poor can be insured

SUNDAY, 25 MARCH 2012 18:56 MANUEL T. CAYON / REPORTER

DAVAO CITY—The Philippine success in extending microfinance credit to
the poor shows that this sector at and below the poverty threshold could
also become worthy of insurance coverage, the Insurance Commission here
said.
At present, about 3.1 million poor Filipinos have been covered by the
government program on microinsurance since the project was started in
2010, said Emmanuel F. Dooc, chairman of the Insurance Commission, the
government supervisory agency.

Microinsurance offers as low as P1 per day worth of buying one of the
government-approved 59 microinsurance products, with the government
wanting to cover the poor with the basic product BBK, for "Buhay, Bahay
at Kabuhayan" (health and accident, house and livelihood), he said.
Or the premium could go higher but should not go beyond 5 percent of the
total earning of a policyholder, he added.

A microinsurance policy could have an insurance coverage of P10,000 to
as much as P200,000.

Dooc said the commission wanted to cover all the households in the
population's 27 percent below the poverty level. "I may be ambitious but
our success in microfinance has told us that even the poor is worth the
financial protection it needs."

An innovation in insurance activity in the microinsurance program was
the coverage of properties and livelihood affected by disasters.
"Agricultural crops and the stalls of vendors would be covered to
provide them extra protection, especially if they live in the most
disaster-prone villages."

The Insurance Commission would be holding 16 regional road shows to drum
up support to the program and to spread the information to the target
clients.

He said 15 mutual benefit insurance and 19 insurance companies have
listed as agents, along with 18 rural banks.

Dr. Joselito Almario, deputy executive director of the National Credit
Council of the Department of Finance, said the Insurance Commission has
tapped cooperatives and associations to extend the reach of the program.

He said the commission was also studying the experience in Quezon City
where it tapped a barangay government to gather its constituents to be
covered.

He said the program has simplified the application as well as it sped up
the payment "because for the poor, cash is very urgent during disasters
and accidents." He said claims could be paid in a day.

Before, he said, insurance companies shun the poor "but with a
98-percent repayment success in our microfinance, we have shown them
that the poor could pay better than their usual clients." He said that
the banking sector could only notch an 85-percent collection rate.

"We also show them, by comparison, that the poor protects their
properties better than the rich," he said. "For instance, we ask them
which one is a risky investment: the rich who wants multiple coverage of
one of his fleet of cars, or the poor fisherman, who would leave his
wife at the shore to run to where his boat was and ensure that it would
be securedly tied to a post at a coming typhoon?"

"Now, even the big names in insurance business have registered. That's
an indication that there's a future in this undertaking," Almario said.

Hiroyuki Aoki, senior finance analyst at the Asian Development Bank,
said his office has allocated $1 million to support the program, from
its conception and marketing, to putting up the mechanism to the
information and dissemination campaign and materials. He said the amount
was being released in tranches, since 2008, and up to the present
campaign road shows.

Tuesday, March 27, 2012

Citibank eyes bigger lending to SMEs

CITI is seeking a legislation that will allow foreign banks to lend to
small and medium-scale enterprises (SMEs) whose business values are
higher than the current limit of P100 million.

Sanjiv Vohra, Citi country president, said the bank is also looking at
improving its SME loan portfolio.

"Currently, we are lending to those who are in the P100 million and
below business size clients," Vohra said.

He said he is pushing for a law that will allow foreign banks to go
beyond P100 million, to at least reach P200 million.

According to Vohra, the current MSME law allows a level playing field
between local banks and foreign banks to participate in the said sector.

"Under (the present) MSME law, there is a separate provision which
allows foreign creditors to take real estate as collateral and allows
you to undertake foreclosure under extrajudicial means, (which) makes it
easier for foreign banks," Vohra said.

At the moment, Citi says the bank is still catching up with other banks
when it comes to the SME portfolio.

Meanwhile, Eugene McQuade, CEO of Citi North America, said the
Philippines will play a very important role in the bank's business
expansion.

"We will be transferring more of our operations here in the Philippines
soon," McQuade said.

According to McQuade, "Citi has now recovered from the issues brought on
by the world economy."

"(We are) very focused on continuing to grow our businesses all over the
world," he said.

He said that for the next 12 years or so, opportunities of growth will
be greater in the region.

McQuade also pointed out that the healthy macro-economics of the country
opened more opportunities to Citi.

Vohra added that Citi is strong enough to withstand great economic
pressure outside the country.

Because of this, Citi expressed its intentions to transfer more of its
outsourced services soon.

Currently, Citi employs about 6,000 people, 3,000 of whom are in the
regional offices and the other 3,000 in shared services.

"We have great confidence in our ability to thrive no matter what
happens in the global economy," Vohra said.

"We've seen positive growth in 2008 and 2009 and we're quite confident
about the Philippines' growth over the next two years."

Vohra projects a GDP growth of 4.2 percent for the Philippines in 2012
on the back of good feedback from exports, government spending, and
investments.

RBAP-MABS introduces TRACS process

(The Philippine Star) Updated November 08, 2011 12:00 AM

MANILA, Philippines - The microinsurance initiative of the Rural Bankers
Association of the Philippines-Microenterprise Access to Banking
Services (RBAP-MABS) program has introduced a simplified licensing process.

Called the TRACS process, the process will simplify the microinsurance
licensing applications of rural bank to the Bangko Sentral ng Pilipinas
(BSP) and the Insurance Commission (IC).

The United States Agency for International Development (USAID)-supported
MABS developed the turn-key system to assist participating rural banks
in expanding their services to include microfinance product in order for
microinsurance to reach low-income groups.

The TRACS Process actually stands for: Train in microinsurance basic and
product mastery; Request for a no objection notice from the BSP;
Assemble microinsurance core team; Choose the bank's partner-insurance
provider; and, Submit complete requirements to the Rural Bankers
Research and Development Foundation Inc. (RBRDFI).

The process was introduced in a two-day microinsurance basic course
covers the fundamental concepts and principles of microinsurance. It
also imparts practical knowledge and skills to participants on
microinsurance sales and servicing.

After completion of the training, the participating rural banks must
submit its No Objection Notice to the BSP.

This document signifies the bank's compliance to the regulations and
intent to pursue the distribution of regulated microinsurance products.

Participating banks are encouraged to designate members of its
microinsurance team with expertise in marketing, operations and the
management information system (MIS) of the bank.

In addition, the team supervisor must have completed the trainings on
microinsurance basics and product mastery conducted by RBAP-RBRDFI and
the bank's partner-insurance provider, respectively. Only licensed
insurance companies and their authorized microinsurance products are
endorsed to the member rural banks.

These steps and the training provided help to ensure the success of
banks in properly selling, marketing and servicing microinsurance
services to their low-income clients.

RBAP-RBRDFI, with support from the International Labor Organization's
microinsurance innovation facility successfully trained 145 rural banks
since its launched in January 2011 and assisted more than 40 rural banks
with their microinsurance license applications.

Lowly Lagundi leaf has come a long way

LAGUNDI started out as a simple folk remedy for cough and other
illnesses. Filipino mothers would boil freshly-picked green leaves and
strain them to produce an herbal tea, which is then given to an ailing
member of the family. Through the years, its effectiveness was proven
through intensive studies in modern medicine led by the Department of
Science and Technology (DOST).

Recognizing the efficacy of lagundi as a natural remedy for cough and
asthma, Pascual Laboratories (PascualLab), in collaboration with the
National Integrated Research Program of Medicinal Plants (NIRPROMP)
introduced ASCOF Lagundi as the first herbal medicine in the country in
1996. Licensed by the Philippine Council for Health Research and
Development (PCHRD) and DOST, ASCOF is currently the most successful
phytomedicine (or plant-based therapeutic product) in the Philippines.

The initial production of ASCOF that began over a decade ago was done
through a technology transfer from the DOST and NIRPROMP. This made it
possible for PascualLab to manufacture quality medicine from organic
lagundi leaves.

Today, PascualLab takes quality care to the next level by developing
more advanced production technologies for ASCOF. Its Herbal R&D and
Product & Process Development team collaborates with independent medical
and research institutions and consultants both here and abroad, to
continuously improve its products. PascualLab is committed to intensify
its researches on lagundi, and is set to launch new product innovations
within the year.

PascualLab is the only local pharmaceutical company in the country today
with an advanced herbal research facility that is tasked to study and
develop technology for phytomedicines, thereby opening up a world of
possibilities in the future of healthcare. "With our second-generation
technology, our production process is more efficient and more
standardized, ensuring that ASCOF's phytoactive contents are consistent
in every batch that is produced.

Monday, March 26, 2012

House leaders say Phl economy poised for take-off

By Paolo S. Romero (The Philippine Star) Updated March 26, 2012 12:00 AM

MANILA, Philippines - Despite harsh criticisms heaped on the Aquino
administration and the many global challenges facing the country, the
Philippine economy is actually poised for a take-off based on indicators
glossed over by critics, House leaders said yesterday.

The lawmakers, led by Ang Kasangga party-list Rep. Teodorico Haresco and
Eastern Samar Rep. Ben Evardone, also filed a resolution "commending the
government's economic team of the DOF (Department of Finance), DTI
(Trade and Industry), DBM (Budget and Management) with the BSP (Bangko
Sentral ng Pilipinas) for the country's coming economic take-off because
of 'PNoying' or the President's 'Daang Matuwid' (straight path)."

Haresco is vice chairman of the House committee on small business and
entrepreneurship development while Evardone is chairman of the House
committee on public information.

Other authors of the resolution are Aklan Rep. Miraflores, chairman of
the House committee on tourism, and Guimaras Rep. Joaquin Carlos Rahman
Nava, vice chairman of the House committee on appropriations.

"Despite the economic doldrums of major economic partners, like the US,
EU and Japan, which have seriously affected the Philippines in terms of
trade. We see a robust Philippine economy," Haresco said.

He pointed out the country's vibrant stock market, whose index recently
breached 5,000 for the first time in 11 years; a sustained current
account surplus of $5.2 billion, and a huge foreign currency reserve of
$75 billion.

He also cited the appreciating peso which mitigates imported inflation
to an estimated 3.5 percent this year and probability of another
probable ratings upgrade by Standard & Poor's "which may against lower
the country's borrowing costs and save us another P25 billion in
interest charges."

"We also have a benign labor-management relationship environment, which
is certainly attracting the second wave of Japanese, Korean, and
Taiwanese manufacturing investments. All of the above is good governance
as a result of 'PNoying—a straight path or 'daang matuwid' which buoyed
the confidence of the public and private sectors," Haresco said.

"With all the essential political vision and actions imbedded in P-Noy's
Cabinet, the country will take off and may even surprise all of us if
2012 breaches the targeted 4.2 percent growth on GDP (gross domestic
product)," he said.

He said the indicators belie criticisms hurled by militants on
government to dispense with the value-added tax (VAT) and legislate a
P125 daily wage.

He said investors to the region are "revisiting the Philippines once
more as their Asean hubs experience near full employment levels of
skilled labor and rising inflationary pressure on wages.

Vietnam and Thailand have seen salaries and wages increase 15 percent
annually over the past three years, he said.

Economy to grow faster this year - BDO

By Neil Jerome C. Morales (The Philippine Star) Updated March 26, 2012
12:00 AM Comments (0)

CLARK FIELD, Pampanga (via Wi-Tribe), Philippines – BDO Unibank, Inc.,
the country's largest lender in terms of assets, expects the economy to
grow faster this year while interest rates will remain low and inflation
manageable.

Benefits of the higher government spending will likely take effect late
this year that will increase consumption spending.

Growth in gross domestic product will likely reach 4.5 percent this year
from 3.7 percent last year, Jonathan L. Ravelas, chief market strategist
at BDO Unibank, Inc., said at the Economic Journalists' Association of
the Philippines-San Miguel Corp. Business Journalism Seminar in Pampanga.

The projection is lower than the government budget assumption of a
5.5-percent uptick.

Ravelas said the economic scenario will be like last year, with numerous
factors that could dampen growth.

"All the problems are still here. Who is next [in the Eurozone debt
crisis]? For the US, we are not sure because their recovery stems from
the fourth quarter so it is all about spending during the Christmas,"
Ravelas said.

"The good thing about our country is it signals spending. In the second
half, we will see the rewards of these things," Ravelas said.

The government has set a budget deficit ceiling of P286 billion this
year. Last year, the government incurred a deficit of P197.8 billion,
below the P300 billion deficit ceiling set for 2011.

Meanwhile, BDO Unibank projects inflation and interest rate of
three-month Treasury bills to average at 4.5 percent and three percent,
respectively, from 4.7 percent and 1.66 percent last year, respectively.

The government expects inflation to average three percent this year.

But a spike in oil prices might dampen economic growth, Ravelas said.

"If Iran is to be attacked, it will trigger $140 per barrel," Ravelas said.

Dubai crude, the benchmark for Asia, stood at $123.10 per barrel as of
March 21, up from $122.15 per barrel as of Mar. 16.

International oil prices remain high given continued tensions over
nuclear program of oil producer Iran.

Ravelas said $120 to $130 will be manageable, with oil prices to
normalize at $100 by yearend.

Sunday, March 25, 2012

Poor man’s sugar’ finds sweet success abroad

Poor man's sugar' finds sweet success abroad

By: Alex Rey Pal
Inquirer Visayas
6:39 pm | Saturday, March 24th, 2012

A WORKER stirs heated sugarcane juice at the Raw Brown Sugar Milling Co.
Inc. muscovado factory.

DUMAGUETE CITY— Most planters here tend to use the bleakest of terms in
describing recent developments in the sugar industry.

A 50-kilo bag of sugar recently fetched a price barely half the P2,600
it commanded last year. Costs of diesel fuel, wages and spare parts have
also increased.

Planters now worry about oversupply and smuggling of sugar. Moreover,
there is the "zero tariff" on imported sugar under the Asian Free Trade
Agreement (Afta), which will take effect in 2015.

But one sugar planter in Negros Oriental manages to keep his head above
water by going into niche marketing.
Export market

Alejandro Florian Alcantara, a lawyer and certified public accountant,
has started selling "muscovado," also known as "poor man's sugar," to
Asian and European markets.

His Brown Sugar Milling Co. Inc. (RBSMCI) in Barangay Igbalanac,
Pamplona, has become only the third company to penetrate the export
market out of 300 muscovado producers in the country today

In 2007, Alcantara, a sugar planter for over 15 years, decided to build
his own sugar mill to save on the 33.5-percent toll fee charged by other
mills in Negros Oriental and to protect his investments once Afta's
sugar provision goes into full swing.
His interests led him to Rene Burt Llanto, director of the Department of
Science and Technology (DOST) in Central Visayas, and to Dr. Nuna
Almanzor of the Industrial Technology Development Institute (ITDI).

On Aug. 22, 2009, then Science Secretary Estrella Alabastro gave the key
of the 90-ton capacity muscovado factory to Alcantara in a simple
ceremony in Pamplona.

Shortly after it started operating, RBSMCI participated in the
International Food Exhibition (Ifex) Manila sponsored by the Center for
International Trade, Exposition and Mission (Citem) in May 2010.

ALEJANDRO Florian Alcantara, Raw Brown Sugar Milling Co. Inc. president
(left), reviews the day's work with production manager Jose Miguel V.
Bengoechea, chief of processing Tim Kenneth Aguilar and sanitation and
food safety head Cristalyn S. Alcantara at the sugar mill in Igbalanac,
Pamplona town, Negros Oriental.

It was one of three food companies in the Philippines chosen from over
100 firms to join the Asean Japan Center in Tokyo and the Asean Korea
Center in Seoul that same year.

Foreign contacts

Abroad, Alcantara learned that what most people here considered to be
"poor man's sugar" was actually a special commodity in developed countries.
Unlike refined sugar, which is subject to fluctuating prices in the
world market, the price of muscovado has been stable over the past
several years.
Alcantara's new contacts abroad enabled him to start exporting "organic
certified" muscovado immediately after his products first rolled off his
factory in February 2010.
To date, exports to Japan, Korea, Russia and Taiwan account for 90
percent of RBSMCI's production, while only 10 percent is distributed
locally.
"The government has been a big help to my operation—from the design,
cleaner technology and marketing—in helping me penetrate the very
discriminating markets in Asia," Alcantara says.
Inspired by his success, the Negros Oriental Chamber of Commerce Inc.,
DOST, the Department of Trade and Industry, and AFOS Foundation for
Entrepreneurial Development Cooperation—a nonprofit organization founded
by the Federation of Catholic Entrepreneurs of Germany—helped RBSMCI in
preparing for International Standards Organization (ISO) 22000
certification-Food Safety Management System (FSMS).
In March last year, RBSMCI joined the Philippine delegation led by
Menandro Ortego of the Philippine Trade Training Center (PTTC) for a
two-week training program on Food Safety and Quality Standards and
Regulations in Japan.
To make the mill competitive in the global market, RBSMCI recently
completed the draft manual for Hazard Analyzing Critical Control Points
(HACCP) seminar.
Good practices
It also obtained the current Good Manufacturing Practice (GMP) manual
and the Sanitation Standard Operating Practices (SSOP).
HACCP teaches food industries to prevent food contamination within the
process flow, while GMP certifies company observance of hygienic
practices among employees in its environment.
"The HACCP and GMP are important tools to guarantee food safety because
buyers usually conduct factory audits and see if we comply with these
global standards," Alcantara explains.
To date, he says, RBSMCI has been sending one 20-foot container of
muscovado abroad each month.
Success stories like Alcantara's may yet be the exception to the rule.
But he and his 40 employees, no doubt, are charting the direction the
sugar industry may take in the years to come.