Sunday, September 30, 2012

Oil falls as gloom pervades economic outlook

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In this photo taken July 2, 2012, early morning sunlight illuminates fuel storage tanks at a North Little Rock, Arkansas, petroleum distributorship.AP FILE PHOTO



BANGKOK – Oil prices fell in anticipation of weaker demand after two closely watched surveys underscored enduring global economic weakness.


Benchmark oil for November delivery was down 64 cents to $91.55 per barrel at midday Bangkok time to in electronic trading on the New York Mercantile Exchange. The contract rose 34 cents to finish at $92.19 per barrel on the Nymex on Friday.


Brent crude was down 81 cents to $111.58 on the ICE Futures exchange in London.


Japan’s central bank on Monday released a survey that shows deepening pessimism over the economy among the country’s big manufacturers.


The Bank of Japan’s quarterly “tankan” index was minus 3, a worsening from the previous quarter’s minus 1.


The survey showed pessimism over the prospects for both domestic and global demand given weak growth in China, the U.S. and Europe.


Meanwhile, a survey by the China Federation of Logistics & Purchasing said its monthly index of manufacturing activity stood at 49.8 points on a 100-point scale. Numbers below 50 indicate a contraction. China’s economic growth fell to a three-year low of 7.6 percent in the quarter ending in June.


Traders are now looking to upcoming jobs data out of the U.S. for a read on the health of the world’s No. 1 economy.


“With Wednesday’s presidential debates and the approaching election, we expect all eyes will be on Friday’s non-farm payrolls data,” said oil analyst Stephen Schork in an email commentary.


In other energy futures trading:


— Heating oil fell 2.6 cents to $3.133 per gallon.


— Wholesale gasoline fell 0. 3 cents to $2.917 per gallon.


— Natural gas rose 6.3 cents to $3.383 per thousand cubic feet.


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Tags: Bangkok , economy , Japan , oil



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Asian stocks quiet amid holidays; Nikkei declines

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A woman walks past an Indonesian stock exchange index board in Jakarta on September 27, 2012. AFP FILE PHOTO



BANGKOK – Japan’s benchmark Nikkei 225 index fell Monday after a closely watched survey showed confidence in the economy weakening.


The Bank of Japan’s “tankan” confidence index was minus 3, a worsening from the previous quarter’s minus 1.


The index is a percentage of the companies with a positive outlook versus those who see unfavorable conditions ahead, so a minus number means there are more pessimistic companies than optimistic ones.


Australia’s S&P/ASX 200 rose marginally to 4,390.20, with solid gains among big banks and resource shares. Still, trading was light due to a public holiday in parts of the country.


Markets in China, Hong Kong and South Korea were closed for public holidays.


Wall Street stocks fell Friday. Investors remain nervous about Spain, even though the results of stress-tests for the country’s most troubled banks contained no surprises. A report in the U.S. showing that high gasoline prices were the only reason that consumer spending rose last month also weighed on market sentiment.


The Dow Jones industrial average fell 0.4 percent to 13,437.13. The S&P 500 index fell 0.5 percent to 1,440.67. The Nasdaq composite index fell 0.7 percent to 3,116.23.


Benchmark oil for November delivery was down 68 cents to $91.51 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 34 cents to finish at $92.19 per barrel on the Nymex on Friday.


In currencies, the euro fell to $1.2828 from $1.2855 late Friday in New York. The dollar fell to 77.91 yen from 77.99 yen.


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Tags: Asia , economy , stocks



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Fuel prices move

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MANILA, Philippines—Pilipinas Shell Petroleum Corp. and Petron Corp. said over the weekend they would raise the prices of some fuel products and lower others to reflect trends in the international oil market.


Shell will roll back diesel prices by 30 centavos a liter and kerosene by 25 centavos a liter effective 6 a.m. Monday. However, it will raise the prices of unleaded gasoline by 30 centavos a liter and regular gasoline by 25 centavos a liter.


Petron will roll back Turbo Diesel and DieselMax prices by 30 centavos per liter and kerosene by 25 centavos per liter. However, prices for Blaze 100, XCS Plus and Xtra will increase by 30 centavos per liter while Pinoy gasoline and regular gasoline prices will increase by 25 centavos per liter.


The Department of Energy’s Oil Price Monitor report said last week’s trades showed consecutive price drops since Monday, driven by several factors affecting the global oil market.


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Tags: Department of Energy , fuel price hike , Oil Price Hike , Petron , Shell



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Chart to Watch


We’ve asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he’ll be be analyzing a different chart using the Trade Triangles and his experience.


Today he is going to take a look at the technical picture of December Cocoa (CC.Z12.E). I hope you had a GREAT week !


This week let’s take a look at December Cocoa.


The monthly MarketClub Trade Triangle is green which means the longer term monthly time frame is bullish.


The weekly MarketClub Trade Triangle is red which means the weekly time frame is bearish.


Cocoa is probably in a counter trend correction of a longer term bull market.


If Cocoa trades higher from here and the weekly MarketClub Trade Triangle goes back to green that would be bullish as both the weekly and monthly time frames would be pointing to higher prices.


Cocoa is definitely a Chart to Watch and see how the MarketClub Trade Triangle’s play out from here,as Cocoa probably has some big moves coming up soon!



Thanks,

Jim Robinson

Profit Trading.com



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Manufacturing ‘renaissance’ in Philippines seen


Deutsche Bank notes surge since 2010


By




A Philippine-made catamaran sailing yacht made by Ces Craft Philippines. The Philippines may be on the brink of a manufacturing “renaissance” that can add a leg to its structural growth story, says the German financial giant Deutsche Bank, citing the breadth of industries from tires to boats that are expanding capacities. PHOTO FROM BOATSHOPMANILA.COM



After decades of reliance on remittances and the business process outsourcing sector, the Philippines may be on the brink of a manufacturing “renaissance” that can add a leg to its structural growth story, according to German financial giant Deutsche Bank.


In a report titled “Manufacturing: A New Growth Driver” issued last week, the bank said it remained “structurally bullish” on the Philippine economy specially as the investment cycle “seems to have turned sustainably upward.” While most bets are on the government’s public-private partnership (PPP) infrastructure to be the linchpin of an investment-led growth, the research paper raised the possibility that manufacturing—which remained “under the radar” despite an evidence of a surge since 2010—could be a key driver as well.


As a share of gross domestic product, industry peaked at 43 percent in the early 1980s falling to 31 percent in the first semester of 2012—a low level not seen since the 1950s, the report noted. On the other hand, services fueled by remittances and BPOs contributed nearly 60 percent, in turn driving consumption higher.


“But evidence points to a nascent surge in the manufacturing sector—a renaissance of sorts. More startling, the growth seems to be coming from the export sector. In fact, an objective reading of the data suggests the rebound has been happening for at least two years now,” said the September 24 research authored by analysts Rafael Garchitorena, Carissa Manhubat and Iza Fernandez.


Deutsche Bank pointed out that loan growth, electricity and water usage and even exports have consistently shown strong industrial growths since 2010. It also favorably noted that investment commitments in export zones hit new all-time highs in 2011, suggesting further demand growth as the plants are completed.


“And the breadth of industries is impressive. Makers of everything from tires, chemicals, capacitors, printers, toys, lenses, boats, ignition wire harnesses and airline galleys are expanding capacity,” the research said.


It was often argued in the past that high labor and power costs and poor infrastructure were making the country uncompetitive in manufacturing, thus skewing the economy toward services.


According to Deutsche Bank, labor costs have been “remarkably stable” in the Philippines, with minimum wage growth of just 5 percent annually in the last decade compared to the sharp increases in Thailand and China wages, making the English-speaking Filipino worker “much more competitive by default.” It said the recent 40-percent increase in Thai wages, for example, had brought the premium of Metro Manila wages (at about $10.68 a day) over Bangkok (at about $9.72 a day) to just 10 percent. Bangkok and Shanghai minimum wages are now about the same as, or more expensive than, in areas just outside Manila.


On power costs, the research said while these remained the highest in the region, some firms operated during off-peak hours when rates were lower. It also pointed out that companies operating in Philippine Economic Zone Authority-accredited zones were exempt from a variety of taxes, which could lower their electricity costs by another 10 percent and further narrow the price differential. Finally, it argued that with the upcoming implementation of “open access”—wherein large electricity users could negotiate supply contracts directly with power generators and aggregators—electricity rates could go down further.


On infrastructure, the research said that while it was true that the Philippines was suffering from poor internal infrastructure, it is an archipelago and, as such, had many sea ports across the country. It also noted the incentives offered by Peza for manufacturing, including duty-free importation of capital equipment and raw materials, three- to eight-year corporate income tax holidays and value-added tax exemption for local purchases.


Meanwhile, the research noted that the key downside risk to the manufacturing sector’s competitiveness was the strong peso.


Overall, the study said a prospective manufacturing “renaissance” could add another leg to the Philippine stock market’s bull story and benefit banks, power, property and consumption the most.


While it said there were few direct plays on a resurgent manufacturing sector, Deutsche Bank’s top pick for the theme was Manila Electric Co., the country’s biggest power distributor.


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Tags: economy , forecasts , manufacturing , Philippines , renaissance



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Philippine stocks seen to pull back





Local stocks may pull back this week after last week’s quarter-end window-dressing and improved global sentiment brought the main index closer to record highs.


The Philippine Stock Exchange index gained 54 points, or 1 percent, last week to close at 5,346.10 on Friday. The index is nearing the all-time high closing of 5,369.98 and the record intraday high of 5,403.16, both seen last July.


“With the market struggling to stay above the 5,300 levels, the market appears tired and in need of a much-awaited correction,” said Banco de Oro Unibank chief strategist Jonathan Ravelas.


Ravelas said a break below the 5,280 levels could call for further losses toward the 5,200 levels in the near-term. “At the moment, the near-term bias still calls for a revisit of the July 4 high of 5,403.16,” he said.


In its weekly commentary, BPI Securities said this week, “market movement may be limited to some selected stocks with downward bias and possible profit-taking.” It noted that some US economic indicators closely awaited this week were the ISM manufacturing index, consumer spending, jobless claims, Federal Open Market Committee minutes and employment situation.


DA Market Securities said that in the aftermath of stimulus announcements worldwide, there was a renewed focus on the latest European developments, particularly on recent protests against austerity measures in Greece and Spain, and the uncertainty over a banking union, which would give the European Central Bank authority over national central banks. At the same time, it said the US continued to show poor job growth and the December 31 deadline of the fiscal cliff might come to the forefront.—Doris C. Dumlao


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Tags: forecasts , Philippines , stock trading , stocks



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Aussie airline set to start charter flights to Cebu

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CEBU CITY—The province’s tourism trade will get a shot in the arm once Wild Orchid Airlines of Australia begins direct charter flights on December 15.


The airline will operate the Darwin-Cebu route. Darwin’s proximity to Asia is the primary reason behind the charter flights, Wild Orchid’s director for global operations David Fleming told the Inquirer.


Darwin, part of Australia’s Northern Territory, is three and a half hours from Cebu, which is considered one of the Philippines’ popular tourist destinations.


Fleming explained that Wild Orchid Airlines would offer direct charter flights based on peak demand.


The charter flights will operate for 20 Saturdays starting December 15. The weekly service is scheduled to run until Dec. 28, 2013.


“Darwin’s proximity to Asia gives us great opportunities. The reality is that our population base cannot sustain additional permanent regular weekly air services to new Asian destinations such as Cebu.”


“Wild Orchid Airlines believes that a cooperative approach will be the new sustainable option for Territorians looking for a new, affordable, safe and exciting holiday destination for singles, couples, families and groups,” the airline said.


The airline noted that since charter flights do not operate like a traditional airline, it allows more scope and flexibility in the person’s travel planning.


Department of Tourism Central Visayas (DoT 7) regional director Rowena Lu Montecillo said they were working with tour operators and tourism establishments to prepare for the Australian market.


“For now, we are doing more research to pin down what it is that they really want. Based on our initial research, we know that Australians are adventurous and they love beaches. And we have a lot of that in Cebu and in the whole Central Visayas,” Montecillo said in a phone interview.


She said Cebu might initially welcome families and tour groups, but that the DoT was looking forward to attract business groups and the meetings, incentives, conferences and exhibitions (MICE) market in the future.


Montecillo said the continuity of charter flights after 2013 would depend on the success of the one-year service.


She said the charter flights would also provide an opportunity for Filipinos who live near Darwin to visit the Philippines during the holidays.


Montecillo said Australia was a growing tourist market.


DoT 7 data showed that 2,732 Australians visited Central Visayas in the first six months of 2012, a 40-percent increase from the 1,944 tourists who visited the region during the same period in 2011.


To service the Darwin-Cebu route, the airline has hired a Boeing 737 and crew from Qantas, Australia’s flag carrier. It offers full-service economy and business-class accommodations.


The direct charter flights will depart from Darwin at 1 p.m. every Saturday. It will leave Cebu at 4:35 p.m.


The airline also boasts of a catered flight with generous baggage allowance of 20 kilograms for economy guests and 30 kilograms for business class.


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Tags: air transpoet , Australia , Cebu , charter flights , Wild Orchid Airlines



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Biz Buzz: Banker’s big day arrives

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A big change is coming to this foreign bank this month after its big bosses overseas decided to finally put a Filipino in charge of local operations.


According to our sources, the decision has been made a few days ago that, in line with the banking giant’s thrust of “localization,” it would finally appoint a local to run its large Philippine business.


This is, of course, a major landmark for the bank considering that no Filipino has ever run it despite having been in the country for more than a century now.


It has not always been smooth sailing for the soon-to-be-named country manager though. He’s had his fair share of challenges on his way to the top of the corporate ladder and also has his fair share of detractors (most of whom are, no doubt, envious of the mega-deals he always seems to bag, whether from the government or the private sector).


The icing on the cake for Mr. Big Bold Banker, however, was his most recent deal, which he managed to pull off successfully, despite having a slew of would-be underwriting allies spreading adverse rumors about the deal (while collecting nice underwriting fees on the side, of course).


We’re told that Mr. Big Bold Banker’s appointment will be made public in exactly two weeks, while the incumbent foreign head of the local operations will get another post in his home country.


Expect Mr. Big Bold Banker’s “frenemies” to make nice comments all of a sudden in the coming days as word of his appointment makes its way into the market.—Daxim L. Lucas


Rockwell’s ‘high drama’ development


If you are wondering who Carlos Ott is and why his face is splashed on billboards along Edsa, ask upscale developer Rockwell Land Corp.


Ott—an Uruguayan architect who designed the L’Opera de la Bastille in Paris—is working with the Lopezes’ real estate firm to develop the former Philippine headquarters of Colgate Palmolive into another “ultra-luxury” mixed-use development dubbed the “Proscenium.”


The story behind the curious name? Proscenium means “in front of the scenery,” which, officials say, emphasizes the high drama that many are expecting from what Rockwell claims is another pioneering development.


Ott’s first project in the country is set to rise on the 3.6-hectare site adjacent to Rockwell Center and is expected to address the “intense demand for more of their units in Makati,” officials say.


The only tidbit that has been leaked so far is that the project will consist of five ultra-luxury residential towers, commercial and retail space, as well as a 600-seater performing arts theater.


No news yet, however, as to when Rockwell will formally unveil its latest creation. I guess we’ll just have to wait for the invitations.—Amy R. Remo


Jack the power newbie


Chinoy industrialist Jacinto “Jack” Ng may debut in the power generation business as the third party in a triumvirate being formed with Ayala Corp. and A. Brown Inc. to undertake a P12.5-billion coal-fired power plant project in Iloilo. This is a 135-megawatt project targeted to start operations by 2015, expandable by another 135 MW and aims to ease the tight power supply in the Panay and Visayas grids.


Project proponent Brown is keen on harnessing not just the Ayalas’ but the Ngs’ financial muscle as well, obviously to diversify risks in the capital-intensive undertaking.


A source familiar with the discussions told Biz Buzz that Ng wanted to acquire a 30-percent stake in the project. Brown will retain 40 percent while Ayala, through AC Energy Holdings, will get 40 percent. Ng’s buy-in deal may be finalized within this month, our source said.


The Iloilo project is scheduled to break ground in the fourth quarter of this year. Brown, for its part, has done all the preliminary work and investments during the past two years. The project—now in an advanced stage of predevelopment—is ready to take off. The engineering plans are ready and important regulatory approvals have been secured. It’s the moolah that’s now being finalized.


With the prospective partnership, the cash-awash Ng hopes to learn the ropes of the power-generation business that he can scale up in the future to add to his biscuit manufacturing (Rebisco Group), banking (Asia United Bank) and hotel (Oakwood Ortigas Center) crown jewels.—Doris C. Dumlao


Intra-Cabinet debates


The Department of Transportation and Communications has shot back at the Department of Public Works and Highways in the never-ending debate over issues affecting the connector roads espoused by the country’s most famous “frenemies.”


To recall, the DPWH had questioned before Malacañang the Department of Justice’s decision to recognize the exclusivity of the expressway franchise of the state-owned Philippine National Construction Corp. (the tollway project partner of Citra) as well as the DoJ’s failure to recognize that the DPWH had the power to enter into infrastructure contracts pursuant to the Build-Operate-Transfer (BOT) law, notwithstanding the PNCC franchise.


The appeal is what is preventing the Toll Regulatory Board, an attached agency of the DoTC, from processing the road alignment of PNCC-Citra (and now in partnership with San Miguel Corp.) for its North-South Luzon connector road project.


In a manifestation against the DPWH’s appeal to Malacañang, the DoTC said the DoJ’s ruling in the case was “final” as well as “conclusive and binding” upon all parties. The department argued that the secretary of justice—being the ex-officio legal adviser of all government corporations and entities—had legal authority on cases involving only questions of law. It also noted that appeals from DoJ decisions were limited to those involving offenses punishable by reclusion perpetua to death (gloomy!)—Doris C. Dumlao


Shifting tectonic plates


The shift from traditional to online advertising is going to get a kick in the pants this week with the plan of a “fast-moving consumer goods” giant to shift more of its advertising budget to new media platforms.


According to our sources, Proctor and Gamble has decided to make a “gradual but sure” shift to marketing and advertising in online platforms.


The firm has commissioned a study for this and the results have come back showing that spending for online and new media platforms are steadily becoming more cost-effective than traditional forms.


More importantly (and perhaps a little alarmingly for traditional media platforms), the shift will begin in countries with high online platform penetration like … *gasp* … the Philippines.


We’re told that Proctor and Gamble and its third-party research outfit will make the findings of their study public this week. Brace yourselves. –Daxim L. Lucas


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Tags: Advertising , Banking , Business , Carlos Ott , change in management , Department of Public Works and Highways , Department of Transportation and Communications , Energy , government offices and agencies , Iloilo , Jacinto “Jack” Ng , online advertising , power plant project , Procter and Gamble , Real Estate , Rockwell Land Corp.



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Century Properties forays into shopping mall sector


Retail center rising in Makati City


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Property developer Century Properties will debut in the shopping mall business with the opening next year of a community retail center at its flagship mixed-use development Century City in Makati.


The five-story Century City Mall is under construction and will make available for rent 110 retail units that will create a new stream of recurring income to complement earnings from residential development.


Century’s co-chief operating officer and managing director Marco Antonio said in a statement that the mall would serve as the neighborhood lifestyle center for thousands of future residents, tenants, employees and visitors in the 3.4-hectare Century City complex.


“In true Century Properties tradition, we have planned an entirely unique and different lifestyle experience for the visitors of Century City Mall,” Antonio said. “We understand that retail is an integral component of every mixed-use development, especially so when it has residential buildings. Similar to how we have incorporated innovation, quality and value to our other projects, we will seek to elevate the lifestyle experience a notch higher in our first ever retail development.”


The five-story mall will have a gross floor area of 50,000 square meters. Three basement floors with 527 parking slots have been allotted for visitors’ parking.


The retail center also seeks to attract residents from nearby villages. The mall will have a supermarket and stores for essentials, concept shops, four cinemas, cafes and restaurants.


Century City is also the site of luxury residential towers Gramercy Residences, Knightsbridge Residences, the Versace Home-interior designed Milano Residences, Trump Tower at Century City and the outpatient medical building called Centuria Medical Makati. The completion dates of these buildings will start from December 2012 to 2016.


The Century group, led by the Antonio family, has 26 years of experience in real estate development, marketing and property management. It has completed 20 condominium buildings (4,128 units) with a total gross floor area of 548,262 sqm and was managing 51 properties as of end-2011.


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Tags: Century Properties , Makati , Philippines - Metro , property , Real Estate , Shopping Mall



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Thrift banks projected to post double-digit lending growth

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An SMDC condominium project. the recent increase in housing loans was accounted for largely by demand in Metro Manila, according Patrick Cheng, president of the Chamber of Thrift Banks.



MANILA, Philippines—The thrift banking industry said the outlook on auto, housing and other consumer loans remained rosy for 2013.


According to Patrick Cheng, president of the Chamber of Thrift Banks, lending by industry members is expected to continue posting double-digit growth next year. He said it would be driven primarily by consumer loans, especially car and housing.


“The economy is doing well. If the economy continues to grow at a healthy pace as projected, the increase in loans will stay at double-digit levels,” Cheng told reporters.


He said a robust economic growth, which indicated rising incomes, would fuel more demand for automobiles, thereby increasing requirements for car loans.


On housing loans, Cheng said thrift banks saw a huge opportunity for credit growth, especially outside Metro Manila.


He said the recent increase in housing loans was accounted for largely by demand in Metro Manila. He said demand for real estate loans in the provinces was also expected to grow over the short to medium term.


“We see more and more lending growth opportunities outside Metro Manila. There is still a huge market that remains untapped,” he said.


Data from the BSP showed that the combined outstanding loans extended by thrift banks amounted to P402.54 billion as of the end of March, up by 13.7 percent from P354 billion a year ago.


Thrift banks serve the credit needs of consumers, and small and medium enterprises.


Cheng said the thrift banking sector was expected to maintain in 2013 a growth rate that would at least be double the rate of the economy’s expansion.


Data from the BSP further showed that thrift banks in the country had generated a combined net income of P2.2 billion in the first quarter, up by 18 percent from P1.86 billion in the same period last year.


In the first quarter, the economy grew by 6.3 percent year on year. In the first half, the average growth of the economy stood at 6.1 percent.


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Tags: Banking , economy , forecasts , lending growth , Loans , Philippines , thrift banks



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Thai firm mulls over wind power in Mindoro

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MANILA, Philippines—Electricity Generating Public Co. Ltd. (Egco) of Thailand is conducting due diligence for a possible investment in a wind power project in Oriental Mindoro as part of expansion efforts in the Philippines.


“We’re doing some due diligence right now. We’re hoping that we can make something happen very quickly,” said Frank Thiel, managing director of Quezon Power (Philippines) Limited Co., a unit of Egco.


Thiel, however, declined to reveal how much Egco would put into the project, citing confidentiality agreements.


“But we’re excited about the opportunity. We’re hoping to make it happen,” Thiel said.


The 48-megawatt wind power project being developed by Philippine Hybrid Energy System Inc. is estimated to cost a total of P6 billion. It involves a three-phase development plan and is expected to be the largest so far in the country.


While seeking new projects and possible acquisitions, Egco also wants to partner with Manila Electric Co. (Meralco) for Quezon Power’s plant expansion, Thiel said.


Egco wants Meralco as an offtaker and partner for the 500-megawatt (MW) second phase of its coal-fired power plant in Mauban, Quezon, Thiel said.


Quezon Power’s existing facility comprises a 460 MW coal-fired electric generating facility and a 31-kilometer transmission line.


Construction of Quezon Power’s second unit may take about three years. Financing will come mostly from cash-rich local banks. But the power firm is also looking abroad for complementary and competitive deals, Thiel said.


The recent release of feed-in tariffs (FIT) has sparked greater interest in renewable energy, said Jose Layug Jr., Department of Energy undersecretary.


BDO Capital & Investment Corp., the investment arm of BDO Unibank Inc., is among those that have shown interest in renewable energy projects. The release of FIT rates makes BDO Capital “more comfortable” with renewable energy projects although it wants to see the implementing rules to guide the company in exploring opportunities, BDO Capital president Eduardo Francisco said.


In the meantime, “we’re talking to two wind developers with maybe at least 100 MW combined. In addition to EDC [Energy Development Corp.] there are two other companies,” Francisco said.


The FIT scheme, required under the Renewable Energy Act of 2008, guarantees returns for renewable energy firms through fixed rates to be shouldered by consumers.


Approved FIT rates, which are lower than those proposed in 2011, are at P5.90 per kilowatt-hour (kwh) for run-of-river hydropower, P6.63 per kwh for biomass, P8.53 per kwh for wind, and P9.68 per kwh for solar.


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Tags: Business , Electricity Generating Public Co. Ltd. (EGCO) , Energy , Investments , Oriental Mindoro , Philippines , renewable energy , Thailand , wind power



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Subsidies to state firms fell by 36% in August


In 1st 8 months, funding declined by 15% to P14.8B


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In the first eight months, the top recipient of subsidies, in terms of cumulative receipt, was the National Food Authority with P4 billion.



MANILA, Philippines—The government gave out P1.4 billion in subsidies to state-owned and -controlled corporations in August, a big part of which was allocated to those engaged in housing, irrigation, crops and health.


Data from the Bureau of Treasury (BTr) showed that the amount was 36 percent lower than the P2.1 billion given out in the same month of 2011.


As a result, cumulative subsidies to state firms for the first eight months of the year totaled P14.8 billion—14.9 percent less than the P17.4 billion given out in the same period last year.


From January to August, the amount of subsidies declined even as the government’s total spending went up by 14.5 percent during the eight-month period.


According to Budget Secretary Florencio B. Abad, expenses for August alone went up by 10.4 percent as Malacañang continued to pour funds into infrastructure, apart from other capital outlays and other operating expenditures.


Abad said the expenditures would speed up the rollout of key infrastructure projects which, in turn, would boost the country’s viability as “the next investment and tourism hub in the region.”


The budget chief added that the deployment of account management teams in key departments led to improved disbursement.


In the first eight months, the top recipient of subsidies, in terms of cumulative receipt, was the National Food Authority with P4 billion.


Others were the National Housing Authority with P2.4 billion, Philippine Health Insurance Corp. with P2.1 billion, National Electrification Administration with P1.6 billion, and National Irrigation Administration P1.3 billion.


In August alone, the National Housing Authority was also the top recipient, getting P600 million, or close to half the total subsidies disbursed during the month.


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Tags: Government , National Food Authority , Philippines , state subsidies



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For Philippine unit of Kraft Foods, ‘Grace’ is the boss

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Amazing Grace: Kraft employees spend time with their “boss” to know her needs, concerns, dreams and aspirations.



MANILA, Philippines—If President Aquino claims to have us, the Filipino people, as his boss, Kraft Foods (Philippines) Inc. has Grace.


And just like the President’s boss, Kraft’s Grace refers to no particular person. Instead, it alludes to every Filipino woman who decides what to feed her family.


Grace is Kraft’s main market, and it was named so because a research commissioned by the company a few years ago showed that it was the most common woman name in the country.


“And if Grace is the boss and the boss is important, we need to get intimate with her, know what she wants and needs. The aim is to keep her satisfied and happy,” says Kraft Philippines general manager Sudip Mall.


This paved the way for “amazing Grace,” not the Christian song but an innovation crafted by the Philippine unit of Kraft to get closer to its boss.


The scheme proved to be so effective that it was adopted by several other Kraft branches overseas. It is one of Kraft Philippines’ influences to the Kraft group’s global operations.


Kraft Foods (Philippines) is a wholly owned subsidiary of multinational firm Kraft Foods Inc. and a business unit of Kraft Foods Asia Pacific.


It makes popular cheese brands Kraft Eden Cheese, Cheeze Whiz and Kraft Cheddar; and salad and sandwich spreads Miracle Whip and Kraft Real Mayo in its plant in Parañaque City.


It also distributes Kraft Foods global brands including beverage lines Tang and Kool Aid Juicers, cookies/biscuits Tiger Energy Biscuits, Oreo and Chips Ahoy!, chocolate products Toblerone and Cadbury, candies Halls, Clorets and Dentyne, and coffee brand Maxwell House and baking powder Calumet.


Focus on Grace


Kraft Foods Philippines’ operations are focused on the boss. Its way of doing things, according to Mall, follows an inverted pyramid structure: Grace, the boss, is on top; the company’s frontline people in the middle, while the managers/executives are in the bottom.


Amazing Grace, according to Mall, is an immersion program that gets company employees out of their offices by batches once or twice a year to spend time with customers. Each employee gets to live, eat, work and play with Grace for a day or two. If Grace is a housewife, then the Kraft employee stays with her in the house, accompanies her to the market and helps her prepare meals for the family. The objective is to know her better, how she thinks, what her dreams and aspirations are and how she spends.


Typically, Mall says, companies rely only on third-party researches to get the pulse of the market.


“Surveys and such researches help us, but what we are usually getting are distilled versions of the market feedback. When we go out and stay with her, we get first-hand information about her.”


Amazing Grace helps Kraft Foods get a clearer picture of its market, the changes in its preferences and concerns. This tool, as Mall calls it, was instrumental in the introduction of various Kraft innovations.


Through this, the company came to realize how tight household budgets had become during the hard times in 2009 to 2010 that it decided to offer its products, sandwich spreads in sachets and powdered juices in litro packs, keeping its products affordable to its markets.


Engaged employees


It also works well in enabling Kraft Foods employees to understand and appreciate the real people they cater to. Knowing Grace personally, not only from numbers and market shares, makes employees realize that whatever they do matters to her, and this inspires them to think of ways to add value to the products and their services for her.


This concept was started by Kraft’s Philippine unit about four years ago, and Mall says it is already on an “amazing journey” to other Kraft offices in other parts of Asia, even in Europe.


While keeping Grace happy, Kraft Foods Philippines makes sure its employees are engaged and satisfied.


“Disengaged and unhappy employees can do damage to the company and harm our relationship with the customers,” Mall says.


First, it taps the best possible people to make up its team. It recruits top graduates of major universities and train them under its iTaste program, which has also been duplicated in other Kraft offices overseas. Under this training program, new hires get to work in different departments of the company for 18 months. This allows the new employees to determine what jobs fit them and makes it easy for the company to decide where to assign them.


Kraft Foods has put in place a holistic system of taking care of its team of 450 in the Philippines. It addresses all dimensions of its employees’ lives—mental, physical, spiritual, personal and social, as well as environmental.


Formula


“We want to see everyone to really want to come to work and feel mentally challenged,” Mall says.


The company follows what it calls the 70-20-10 formula for the mental development of its people.


“We believe 70 percent of a person’s development comes from his job. Thus, we make sure he does interesting work and he goes beyond his comfort zone by allowing him to play different roles in the company. This also gives him a very clear career path.”


The 20 percent, he says, comes from coaching-mentoring, and the company is investing heavily in internal and external coaching programs. The remaining 10 percent comes from classroom training programs, which cover skills assessment, and training is focused on areas that need improvement.


For the physical dimension, Kraft provides its employees an environment that is inspiring, comfortable, colorful and “almost delicious,” he says.


“Employees do not have to leave the office to have some ‘me’ time. We have a zen garden, gym, basketball court, dance studio, sauna and spa. We don’t care how much time they spend in these areas, it is up to them, but they have to show results. Expectations are very clear.”


Work-life balance is a culture to Kraft. Family activities—fun runs, learning sessions, kids’ workshops and others—are held particularly during school breaks and holidays so employees get family bonding times outside their homes. These also help make the employees’ families understand and appreciate their work.


The social and environmental dimensions are addressed by the many corporate social responsibility programs being undertaken by the company. These include projects in line with Kraft’s global advocacy of fighting hunger and malnutrition, and the “Go Green” program.


Satisfaction, ripple effects


Both the company and the employees take pride and feel great about how Kraft Foods impact on its market and the economy, Mall says, citing results of the company-commissioned multiplier study made by the University of Asia and the Pacific.


The study, indicating the direct and indirect contributions of the company to the economy or its ripple effect, shows that Kraft is able to contribute P3.10 in additional economic output for every peso it earns. Direct contributions, it shows, are made through sales, employment, wages and taxes paid. Indirect contributions come through its various business deals with distributors and third-party service providers. It shows that about 130,000 sales people are employed with the various supply deals with Kraft Foods.


Employee satisfaction surveys show positive results, according to Mall. Not only are they happy, members of the Kraft Foods family are also proud of what they do, their brands, the company and the numbers that their company has been posting, he adds.


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Tags: Business , food , Grace , Kraft Foods , Philippines



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PH, Thai, Myanmar firms form rice consortium


Group to use proprietary technology of SL Agritech


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The Philippines, Myanmar and Thailand have formed a consortium to develop a formidable rice supply chain using the proprietary hybrid and premium rice technology of local firm SL Agritech Corp., which will initially contribute its high-yielding SL-8H hybrid rice variety to the venture. PHOTO FROM SL-AGRITECH.COM



MANILA, Philippines—Key agribusiness groups from the Philippines, Myanmar and Thailand have formed a consortium to develop a formidable Southeast Asian rice supply chain using the proprietary hybrid and premium rice technology of local firm SL Agritech Corp.


Henry Lim Bon Liong, chairman and chief executive of SL Agritech—which is part of the Sterling Paper group of companies—said his group signed a few weeks ago a memorandum of understanding (MOU) with the IBTC group of Myanmar and Capital Rice Co. Ltd. of Thailand to set up the three-country private sector partnership.


“If we’re talking about Asean [Association of Southeast Asian Nations] partnership, it’s a good Asean partnership,” Lim said in an interview with the Inquirer. He said the vision of the collaboration was “to become the biggest rice consortium” in the region.


SL Agritech will contribute its rice technology and varieties to the venture while the Myanmar partner will provide the land for production. The Thai partner will handle global marketing.


The recently signed MOU provided for the conduct of feasibility studies to identify the land for production and finalize partnership details by end-December this year. “By next year, we hope to start (production) already,” Lim said.


The production base of the consortium will be in Myanmar, where cost is very low and the government provides a lot of tax incentives, Lim said. It will also be in Myanmar where a company to be owned by the consortium will be incorporated.


Partner IBTC group is Myanmar’s leading manufacturer, marketer and distributor of alcoholic beverages. Its agribusiness arm is ISMSA International Sun Moon Star Agricultural Co. Ltd.


Capital Rice, which is part of the STC group, is one of Thailand’s top rice exporters. Lim estimated the Thai partner’s exports at 2.2 million metric tons in 2011 while the annual average was about 1.8 million MT.


Lim said initial investment in the venture would not be too big at about $10 million to $20 million.


SL Agritech will initially contribute its high-yielding SL-8H hybrid rice variety to the venture but Lim said this might also be a springboard for the premium Doña Maria rice variety.


“For Doña Maria rice, we have a big market also. Five years ago, there were Singaporean rice traders who wanted to place 200,000 MT order but it was impossible when we are importing 500,000 MT every year,” Lim said.


Lim said SL Agritech was likewise working with the Tao group of businessman Jun Sy on the regional venture.


Even before the consortium, SL Agritech has been selling its hybrid rice seeds to other Southeast Asian countries.


SL Agritech started in 1998 as an unincorporated entity performing research work on hybrid rice, inspired by the success of China in becoming a surplus producer and exporter of rice despite its limited arable land. The Lim family sought and obtained the assistance of notable Chinese scientist Yuan Long Ping to develop hybrid rice varieties suitable to tropical conditions prevalent in the Philippines.


Starting modestly with land provided by the provincial government of Laguna in 1999, the company initiated the development of several hybrid rice parental lines, which were later transferred to a 40-hectare farm in Sta. Cruz, Laguna, which now houses the research and breeding complex of the company. Its proprietary hybrid rice SL-8H, which was initially released during the dry season in 2002-2003, marked the start of the company’s expansion and the development of its marketing organization.


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Tags: Agriculture , Business , Myanmar , Philippines , rice , rice consortium , SL Agritech Corp. , Thailand



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DoTC hit for easing emission standards


Group urges gov’t agency to repeal order


By ,




Former DoTC secretary Manuel Roxas II: ‘Threat’



MANILA, Philippines—A new Department of Transportation and Communications regulation that relaxes emission test standards for private vehicles is a threat to the environment and must be repealed, a group of private emission testing operators said over the weekend.


In a statement, the group Ani Kalikasan said the order was issued by then Transportation Secretary Manuel Roxas II, before he transferred from the DoTC to the Department of the Interior and Local Governments.


The new order specifically excluded carbon dioxide from the list of emissions to be monitored before vehicle registrations are renewed.


The group said new regulations on motor vehicle Private Emission Testing Centers (PETC’s) that do business with the Land Transportation Office (LTO) could lead to the further deterioration of air quality in the country’s urban centers.


According to Ani Kalikasan president Macario Evangelista Jr., the DoTC’s Department Order 2012-10 revised the rules and regulations on the authorization and monitoring of motor vehicle Private Emission Testing Centers (PETCs) and effectively allowed the “unabated proliferation of carbon dioxide into the air” by motor vehicles.


“In 2005, DoTC required the testing of four gases, namely, hydrocarbons, carbon monoxide, carbon dioxide and oxygen. Today, the new DoTC order has gone back to three gases, removing carbon dioxide, instead of going up to six to include nitrogen oxide and sulfur oxide in accordance with international standards,” Evangelista explained.


“Carbon dioxide gas is recognized worldwide as the number one air pollutant.”


The Ani Kalikasan chief said that Roxas “may not have been briefed accurately by his subordinates” because the new order “failed to consider the issues” involving climate change, where carbon dioxide gas has been recognized as a key factor.


Specifically, the Kyoto Protocol to the United Nations Framework to Climate Change—in which the Philippines is a signatory—and the United Nations Commission on Sustainable Development underscore carbon dioxide from motor vehicles as one of the main concerns on global warming and climate change.


The group said that the DoTC order also encourages the “non-appearance” of motor vehicles at the testing centers.


“By allowing batch upload of data instead of the current real time upload, unscrupulous PETC operators can edit the test results by simply using photoshop or other editing software,” Evangelista warned.


In contrast with “real time” data uploads where the transmission of the test result to the LTO’s computer systems is done immediately, the new “batch upload” scheme allows the storage of data for up to 24 hours before it is transmitted to the LTO.


“We appeal to Secretary Roxas and incoming Secretary [Joseph Emilio] Abaya to recall and withdraw or, at the very least, hold in abeyance the implementation of Department Order No. 2012-10 pending the conduct of further reviews, public hearings and technical studies by the Department of Environment and Natural Resources and private sector stakeholders,” Evangelista said.


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Tags: Ani Kalikasan , Department of Transportation and Communications , emission standards , Environmental Issues , Manuel Roxas II



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Saturday, September 29, 2012

Greece in final stretch on austerity cuts

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Finance Ministry, tax office and customs employees march in central Athens to protest new austerity measures on September 27, 2012. Greece’s three-party coalition government agreed on the “main points” of 13.5-billion-euro ($17.4 billion) austerity package, tied to the release of vital EU-IMF rescue loans. AFP / LOUISA GOULIAMAKI



ATHENS – Greece enters the final stretch on a tough new round of austerity cuts with the return of creditor auditors this week after a breakthrough in arduous talks between its political leaders.


Senior representatives from the EU, the IMF and the European Central Bank – Greece’s so-called ‘troika’ of creditors – return to Athens on Sunday.


They had given the coalition government of Prime Minister Antonis Samaras a week to finalize the austerity package worth 13.5 billion euros ($17.5 billion) in order to unlock 31.5 billion euros in frozen EU-IMF loans.


The support funds, part of a Greek bailout worth 130 billion euros overall, had been suspended in May when reforms ground to a halt in a political stalemate as the country held double elections before a government could be formed.


Samaras has been trying to overcome opposition from his socialist and moderate leftist parties allies in government, who have warned against imposing sweeping new cuts on a nation already slogging through a third year of austerity.


They have urged the conservative PM to extract as many concessions as possible from the ‘troika’, chief among them a two-year extension to 2016 in order to ease out the fiscal overhaul.


“Applying the measures to 2016 instead of 2014 is enormously important,” said socialist leader Evangelos Venizelos, one of the three coalition partners.


“Spreading the measures over four years will make them milder,” he said, arguing that giving the Greek economy more time to start performing should enable the government to mitigate the sweep of the cuts.


After weeks of abortive talks, Finance Minister Yannis Stournaras on Friday said the coalition had agreed on the “main points” of the austerity package and that the approval of the ‘troika’ and of Greece’s EU peers was now required.


Eurozone finance ministers are meeting on October 8, and a European Union summit on October 18 and 19 is expected to decide on the Greek request for a two-year extension, which EU and IMF officials say may require extra funding.


According to a finance ministry source, the package includes around seven billion euros in cuts affecting higher pensions, benefits and the salaries of better-paid civil servants such as judges, professors and police officers.


Another 3.5 billion euros is to be saved from organisational reforms and the early retirement of 15,000 civil servants.


And a further three billion euros is to be raised in additional taxes.


The package was presented by head of Greece’s financial experts team, Panos Tsakloglou, at a euro working group meeting in Brussels on Thursday, the finance ministry source told AFP.


It is to be submitted alongside the draft 2013 budget to parliament on Monday.


Doctors, lawyers, journalists, teachers and even state security staff have staged strikes and walkouts this month against the new measures.


After two years of austerity, nearly one in four Greeks is unemployed according to official figures which unions say only give a partial picture.


On Wednesday, police clashed with masked youths in Athens during a general strike and demonstrations that drew some 34,000 people to the city centre.


Police said they had made 23 arrests, including 10 minors.


Another 18,000 people protested in the northern city of Thessaloniki according to police.


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Tags: austerity , Budget , economy , Greece



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India car sales soar but where are the roads?

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In a file picture taken on February 1, 2012, cars are seen plying Marine Drive in Mumbai. Even with its economy cooling, India’s car sales are forecast to go into overdrive, creating a huge challenge for the government to modernize the country’s antiquated road network. AFP FILE PHOTO



NEW DELHI – Even with its economy cooling, India’s car sales are forecast to go into overdrive, creating a huge challenge for the government to modernize the country’s antiquated road network.


The shift toward vehicle ownership in the country of 1.2 billion people has reached a tipping point, driven by increasingly urban, affluent and aspirational first-time buyers, according to global research firm LMC Automotive.


Many millions “are crossing the wealth threshold to the stage they can afford cars”, said Pete Kelly, managing director of LMC Automotive UK, adding “short-term variations in economic growth aren’t likely to get in the way”.


LMC projected light vehicle sales – cars, sport utility vehicles and light trucks – will quadruple to 11 million units by 2020 from 2.7 million in 2010, in a paper presented at an automotive conference in New Delhi in September.


The forecast surge comes as global automakers have been betting big on Asia’s third-largest economy, spending billions of dollars on plant investments, as they aim to offset saturated Western markets.


“The fundamentals are here, the potential is here – we have to be here,” John Chacko, chief India representative of Germany’s Volkswagen Group, told AFP on the sidelines of the conference.


Right now, just 11 Indians per 1,000 own cars compared with more than 500 per 1,000 in the United States, according to the Society of Indian Automobile Manufacturers.


“Buying a car is not just transport but a status symbol — it shows your neighbours you’ve entered car-driving society. It’s a sign you’ve arrived,” Buvneesh Bedi, a sales executive at a Japanese showroom, told AFP.


But more cars pose big problems for India, which lacks a modern road and highway network and where air pollution in some cities is already sky-high.


Bullock carts, cows, bicycles and rickshaws frequently compete for space with hulking SUVs, cars and trucks on India’s potholed streets and highways.


The traffic mayhem has given India the unenviable claim to having among the world’s most dangerous roads. Some 135,500 people died in 2010 in road accidents and 527,500 were injured, according to latest government figure.


“Our cities were never built for a large number of cars,” Sarbojit Pal, a fellow at India’s Energy and Resources Institute, told AFP. “What’s required is a lot more planning, a lot more investment from government and private players.”


But India’s abilities to meet the challenges are in doubt.


The government set a target in 2009 of building 20 kilometers (12 miles) of highways a day, but a parliamentary panel in March called the goal a “distant dream” with the pace of construction being just 10 kilometers.


“The National Highways Authority is not in a position to complete any project… within the scheduled period, although financing has not been an issue. It is adding project after project without achieving the targets,” the panel said.


India last month opened a new six-lane, 165-kilometer highway halving travel time between New Delhi and Agra, home to the Taj Mahal – the nation’s famed monument to love. The project, however, took nine years to finish.


The government aims to spend nearly $1 trillion to upgrade India’s shabby roads, airports and ports and other infrastructure over the next five years.


A top priority should be creating more public transport, said Anumita Roychowdhury, executive director of India’s Centre for Science and Environment.


“Even if people buy cars, they need other options to using them,” she told AFP. “Otherwise, car growth will be unsustainable from a health, pollution level, traffic fumes and liveability aspect. Road congestion will be unbearable.”


Even with worries mounting about India’s “infrastructure deficit”, car buyers are unlikely to be fazed by the bumpy road ahead, said Roychowdhury.


“We’re at the take-off stage,” she said.


Sunil Kumar, 24, is a typical first-time buyer.


Now a bank customer relations manager and about to marry, Kumar said he can finally afford to trade in his motorcycle for a small car – India’s hottest-selling segment that makes up 70 percent of the market.


“It’s a great feeling to be able to buy a car,” he said as he gripped the steering wheel of a shiny new hatchback in a Delhi auto showroom.


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Tags: economy , India , Infrastructure



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PhilHealth will now pay for kidney transplants

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MANILA, Philippines—The Philippine Health Insurance Corp. (PhilHealth) will pay for kidney transplant procedures of members and their dependents suffering from end-stage renal disease.


“We are affording every member and dependent with kidney failure the chance to enjoy a superior quality of life. We are now subsidizing the full cost of a kidney transplant procedure up to P600,000,” said Dr. Eduardo Banzon, PhilHealth president and chief executive officer, in a statement.


The PhilHealth benefit can be availed of at specialized centers with proven capabilities for providing first-rate kidney transplant services and care. These are the National Kidney and Transplant Institute in Quezon City, Vicente Sotto Memorial Medical Center in Cebu City, Southern Philippines Medical Center in Davao City and Davao Regional Hospital in Tagum City.


“These centers have excellent track records of more than 98-percent survival rates for kidney transplant patients,” Banzon said.


He added: “We are balancing high-quality service with accessibility. We’re starting with only four centers where members can avail themselves of the benefit, but we have at least one facility each in Luzon and the Visayas plus two in Mindanao. We may add to the four later on.”


“The four centers will apply the ‘no balance billing policy’ with respect to kidney transplant patients from families earning P30,000 or less annually. Patients will not be charged extra expenses on top of what PhilHealth pays. The P600,000 benefit already covers everything, including medication, hospitalization and professional fees,” Banzon said.


“This is our way of giving every member considerably greater value for their money. They will be entitled to a P600,000 benefit in return for premium contributions of as low as P2,400 per annum, or less than P7 per day, by Jan. 1, 2013,” Banzon said, noting that the subsidy would be PhilHealth’s single largest benefit payout ever.


According to Banzon, PhilHealth has members as young as 23 years old with chronic kidney disease.


“While they have their whole lives ahead of them, they have to undergo constant dialysis. Some of them die young. Hopefully, not anymore with this new benefit,” he said.


Some 12,000 Filipinos, or 120 per one-million population, develop kidney failure every year. They have a mean age of 53 years, with six out of 10 of them male, according to the National Renal Disease Registry.


Despite being the “gold standard” of care for patients with end-stage renal disease, Banzon said less than a thousand kidney transplants are performed in the country every year, largely due to the steep cost of the procedure.


With the P600,000 benefit, Banzon sees a dramatic increase in life-saving kidney transplants.


PhilHealth previously covered only up to eight percent of the total medical bill for the procedure.


“With this new benefit, our members and dependents with kidney failure, especially those from poverty-stricken households, can readily avail of a transplant procedure and look forward to more productive and fuller lives,” Banzon said.


The leading causes of kidney failure among Filipinos are diabetes, inflammation of the kidneys and high blood pressure.


To stay alive, patients with end-stage renal disease have only two treatment options—lifetime dialysis or a one-time kidney replacement.


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Tags: Dr. Eduardo Banzon , end-stage renal disease , kidney transplants , PhilHealth , Philippine Health Insurance Corp. , Science & Health



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Alex Daley: The Greatest Growth Sector in the World


Genome sequencing has gone from a cost of $3 billion to $10,000 – within just nine years, says Alex Daley, Chief Technology Investment Strategist at Casey Research. And that’s only one example of how fast new technologies are now being implemented and made affordable to the public. Watch this eye-opening speech from the just-concluded Casey/Sprott Summit to find out where today’s and tomorrow’s big investment profits lie, and how you can get your own slice of them.







Technology is becoming an increasingly important sector for investors looking to make money in a weakened economy burdened by ceaseless government meddling. And there are many other investments that can help you protect and grow your wealth – even while inflation and real negative interest rates whittle away the profits of income investors. Listen to 28 renowned financial experts today, and learn how to Navigate the Politicized Economy .



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Bank teaches legacy of war vets

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THE CORPORATE social responsibility of Philippine Veterans Bank is unique: It mounts an exhibit of vintage World War II photographs to honor Filipino soldiers and teach young people about freedom and love of country.



CITY OF SAN FERNANDO—The Philippine Veterans Bank performs its corporate social responsibility in unique and specific ways.


For six years now, it has been touring the exhibit called “War of our Fathers.” It also sets aside 20 percent of its net income to the board of trustees for the veterans of World War II.


This group, together with the heirs, manages the funds through which the veterans get free medical services and medicines in partner-hospitals.


The funds represent the P80 to P120 shares of 400,000 veterans who are also bank stockholders.


“The pressure for us to generate net income each year is not just a business objective but also a social mission,” says Miguel Villa-Real, vice president of PVB corporate communications.


Among the country’s commercial banks, PVB moved up from the 32nd slot in 2004 to 18th place last year. Its assets grew from P17 billion in 2004 to P56 billion in 2011.



THE CORPORATE social responsibility of Philippine Veterans Bank is unique: It mounts an exhibit of vintage World War II photographs to honor Filipino soldiers and teach young people about freedom and love of country.



“If our net income declines, that means less medicine and medical services to our WWII heroes who are our stockholders, their widows and children, especially the indigent ones,” Villa-Real says.


The Multi-Sectoral Governance Council of San Fernando brought to this city the mobile exhibit, which opened on Aug. 31 and will run until Sept. 11 at the newly restored Philippine National Railways station downtown. The exhibit’s next stop is Paniqui, Tarlac.


The San Fernando leg of the tour drew war veterans Ruben Sta. Ana and Vivencio Tizon.


They asked their relatives to take them to the station that is historic for two reasons: via train, the national hero, Dr. Jose Rizal, reached Pampanga and recruited leaders for reforms here; and Japanese troops herded American and Filipino soldiers on closed train vans in San Fernando for the final destination of the Death March in Camp O’Donnel in Capas, Tarlac.


Viewing vintage photographs of World War II in the Philippines between 1941 and 1945, the 92-year-old Sta. Ana says: “These are remembrances.”


Tizon, 79, says he felt proud of the assembly of images and memorabilia. “Freedom was fought and won by us Filipinos. It did not come easily. A lot of lives were put on the line,” he says.


In no unhurried ways, Sta. Ana, Tizon and 20 fellow veterans in Pampanga beheld the photos with mixed feelings. One quietly wept for comrades who died in battle or during the Death March.



THE CORPORATE social responsibility of Philippine Veterans Bank is unique: It mounts an exhibit of vintage World War II photographs to honor Filipino soldiers and teach young people about freedom and love of country.



“The thought of defeat was also painful,” says Tizon.


The exhibit, complete with video documentaries, is for old soldiers as it is for the younger generations.


Jussel Barroma, 10, says: “The exhibit was nice. I learned many things. Filipinos were very courageous during the war.”


photos by Tonette Orejas, Inquirer Central Luzon


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Tags: Philippine veterans bank , Social Responsibility



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