PIA Dispatch - Tuesday, August 11, 2009

RP now out of threats of recession

MANILA, Aug. 11 - The Philippines is no longer in danger of falling into a recession.

National Economic and Development Authority (NEDA) Deputy Director General Rolando Tungpalan made this bold announcement in a press briefing in Malacanang today, saying the economy will further improve with positive economic forecasts from the United States, the European Union (EU) and Japan.

“The economy has demonstrated greater resiliency,” Tungpalan said, noting that the United States and the EU are moving out of recession.

The US Federal Reserve, according to him, has also upgraded its outlook on the US economy from a contraction of 1.3 to 2 percent to 1 to 1.5 percent.

Tungpalan said there are clear evidence of positive developments in the economy that included the latest data on overseas Filipino workers’ remittances showing continued growth, contrary to the earlier expectations of the Bangko Sentral ng Pilipinas.

OFW remittances in May this year grew 3.7 percent, debuking predictions of several analysts.

Tungpalan cited several other external factors to back up the government’s optimism on economic growth such as the expansion of the retail trade sector, specifically the growth in car loans by the banks and the expansion of major malls.

Auto loans grew 48 percent in May, up from the negative 6.6 percent growth last year.

Tungpalan cited a Department of Labor and Employment report that more jobs are now available in the information and communication technology (ICT) sector as well as reports from companies that they have started rehiring previous employees.

Add to this the positive outlook rating of Moody’s on the economy, he said.

Tungpalan stressed that the government “expects positive growth but added that adjustment to this year’s 0.8 to 1.8 percent target growth will only be made with the release on Aug. 27 of the second quarter gross domestic product or GDP.

The NEDA official said the government will depend on the ICT and tourism industry, among other sectors, to boost the economy.

Tungpalan said the call center sector is a “bright spot” for new jobs and investments with the emergence of ICT hubs outside Metro Manila such as in Metro Laguna, Iloilo, Bacolod, Cagayan de Oro and Lipa City.

He also said the government will also look beyond voice calls and seek the opportunities offered by non-voice such as animation.

Tungpalan noted that the President’s Comprehensive Livelihood and Emergency Employment Program or CLEEP “continues to contribute to the resiliency of the economy.”

He also noted that China’s impressive 7.9-percent growth in the second quarter provides a huge opportunity for the Philippine economy in terms of expanding trade and investments.

China is among the major trading partners of the Philippines and with relations between the two countries continuing to be very strong, the country hopes to ride on the strength of China to move the economy forward.

“China continues to post strong growth. We reiterate the importance of engaging China for more trade, investment and tourism,” Tungpalan said.

However, this good news may be dampened by some threats that include water crisis, as it was forecasted that there will be drought later this year due to unusual weather patterns.

He added though that the President has instructed the Department of Agriculture (DA) “to temper expectations” as “water for food production is above (daily) water consumption.”

In today’s cabinet meeting, Tungpalan said the President ordered DA to “look at measures (to be undertaken) especially in the area of water management.”


PGMA inaugurates RP product depot

MANILA, Aug. 11 - A Philippine Product Depot was opened to the public to showcase of outstanding products from the country's 16 regions as well as serve as a training facility to would-be entrepreneurs.

President Gloria Macapagal Arroyo together with Trade and Industry Secretary Peter B. Favila and other DTI officials inaugurated the Philippine Product Depot at the HK Sun Plaza along Macapagal Avenue in Pasay City.

The Depot will serve as one-stop facility for the small Filipino entrepreneur to display, and market products for international and Metro Manila buyers. The facility will also serve as an incubation center where entrepreneurs will be trained and given expert advice to upgrade skills and their products.

The Philippine Product Depot, a brainchild of DTI Secretary Peter B. Favila, targets various clients from institutional buyers to traditional connoisseurs, from tourists to balikbayans, even from housewives to everyday budget buy seekers.

About 170 micro, small and medium enterprises (MSMEs) are presently housed during the inauguration.

“We expect the number to grow to about double in a year’s time when buyers and producers see the benefits of the Depot,” Favila said.

The Depot aims at providing micro, small and medium enterprises from the countryside a three-way push to a better life, Favila said.

These MSMEs shall constitute the nucleus of economically sufficient citizens as they also contribute to showcase Filipino craftsmanship and creativity mostly in products expressly unique in their regions.

They shall be part of a marketing outlet that will allow them to touch base with regular buyers beside the malling crowd. The bonus boost, however, shall be the opportunity to make use of the depot as incubator for design and packaging development and as an alternative and more affordable venue for them to hold their conventions and product launchings.

"The development MSMEs is an important program of the government that addresses thrust to develop the countryside and generate jobs to the poor sector of the country," he said.

The Arroyo administration prioritized MSMEs through the Comprehensive Livelihood and Emergency Employment Program (CLEEP) as buffer to absorb the impact of the global financial crisis in the country.

“We are expecting more MSMEs to be housed under this Depot especially those developed under CLEEP which include DTI initiated projects under bayong, bamboo, food etc.,” Favila said.

The Department has been helping SMEs nationwide to showcase their products in Metro Manila through trade fairs which usually runs from three to five days which is not enough marketing exposure, Favila said. “Under the Product Depot, these SMEs will have a permanent home which is very close the future site of the Department’s headquarters.

The proximity of the Depot to the future DTI site will definitely redound to improved assistance to entrepreneurs in the regions. ”

The DTI, in coordination with iNegosyo, is also in the process of developing a website to familiarize the buying public with available OTOP products in 1,491 municipalities and cities all over the country.

This OTOP website carries a virtual brochure to provide a preview of OTOP products which may be procured through the Philippine Product Depot.


DOST extends National Biotech Week Logo Design Contest

The Department of Science and Technology will accept entries for the National Biotech Week (NBW) Logo Design Contest until the end of August.

The winning entry will be rewarded with a Php 50,000 cash prize and a plaque of recognition.

The NBW Logo Design Contest is open to Filipino citizens, individuals and groups except for members of the 2009 NBW Task Force, the screening committee and the board of judges.

Logo designs must symbolize the application and benefits of biotechnology as well as reflect this year’s NBW theme: “Bioteknolohiya para sa Kalikasan, Kalusugan, Kagandahan, Kabuhayan at Kaunlaran” (Biotechnology for the Environment, Health, Beauty, Livelihood and Development).

Each entry must be original, in JPEG format, 5.5 x 5.5 inches in size and never been entered in any competition.

Logo designs must be accompanied with written descriptions of not more than 350 words.

All entries must be e-mailed to nbw@pnri.dost. gov.ph together with the contestants’ names, mailing addresses, contact details and scanned ID cards with photographs on or before August 31, 2009 at 5 pm.

For more information, call Mr. Chitho Feliciano of the Philippine Nuclear Research Institute at 925-9211 or 929-6011 local 273.


Oil firms implement P2/liter hike in gasoline, P1.50/liter for both diesel and kerosene

Major oil companies on Tuesday raised their prices anew to reflect the upward trend in the international prices.

Pilipinas Shell Petroleum Corp. (PSPC) was the first oil firm to implement the adjustment at 12:01 a.m. with a P2 per liter hike in gasoline and P1.50 per liter for diesel and kerosene.

Petron Corp., together with Chevron Philippines and independent oil player Seaoil Philippines, also raised their gasoline, diesel and kerosene by the same amount but it took effect at 6 a.m.
Roberto Kanapi, Shell spokesman, and Virginia Ruivivar, public affairs chief of Petron Corp., said the increase merely “reflects the increase in international prices.”

Price monitoring surveillance regularly conducted by the Department of Energy (DoE) showed that as of August 4, 2009, unleaded gasoline was sold between P36 to P42.90 per liter; diesel at P27.70 to P34.15 per liter and kerosene at P36 to P41 per liter.

Dubai crude as of August 6, 2009 averaged at US$ 72 per barrel or US$ 7 per barrel higher than the US$ 65 per barrel average for the month of July.

Unleaded gasoline was pegged at US$ 84 per barrel or US$ 11 per barrel higher than the US$ 73 per barrel average for the month of July while diesel was placed at US$ 82 per barrel or up by US$ 8 per barrel than last month’s US$ 72 per barrel average.

This is the first price hike implemented for this month.

So far, only four oil firms imposed the price adjustment and others are expected to follow soon.


P15.3-billion DBP facility for infra development now available

State-owned Development Bank of the Philippines (DBP) is making available a P15.3 billion Y30.380 billion) facility that will finance improvements in the logistics and infrastructure systems in the country.

DBP president & chief executive officer Reynaldo G. David said the Logistics Infrastructure Development Project (LIDP) is a continuation of DBP’s Sustainable Logistics Development Program (SLDP) but on a more expanded scope.

“The LIDP particularly provides long-term funding for critical infrastructure projects such as roll-on, roll-off (roro) vessels and related facilities such asports and ramps; toll roads; farm-to-market roads; and related maintenance equipment,” he said during an investor’s briefing held recently at the Marco Polo Hotel in Davao City.

Other projects eligible under this facility are packaging, transport, and distribution facilities, projects under the bulk grains highway which facilitates efficient transport of products from Mindanao to Luzon, and projects under the cold chain highway which re-engineers the logistics system for perishables.

“This facility will improve farm-to-market efficiency and enhance movement of products and goods to the major trading areas to help boost the domestic economy,” David added.

David said the facility can be accessed by private corporations with at least 70% Filipino ownership, government-owned- and-controlled corporations, and local government units. Borrowers are required to provide counterpart funding of 30% of the project cost.

The facility is sourced from the Japan International Cooperation Agency (JICA) and has a disbursement period of seven years. David added that the LIDP was among the two Official Development Assistance (ODA) loans signed during President Gloria Macapagal-Arroyo’s working visit to Japan last June.