Social Security System President and Chief Executive Officer Romulo Neri said the pension fund remained on target to achieve a record P26.1 billion investment income this year, despite the meltdown of the financial markets in the United States, which has affected other economies in the world.
“Our present investments amounting to P216.9 billion are all in the local markets. These include government securities, which are virtually risk-free, and shares of stocks of blue-chip companies, corporate debts, housing and member loans and properties,” he said.
SSS’ funds are invested in accordance with its charter, which has put caps on investments here and abroad, Neri said.
The institution has the mandate to invest up to 7.5 percent of its reserve fund overseas, but it stayed away because of unfavorable investment climate and global turbulence. Instead, the SSS decided to optimize earnings in the local market.
In line with its P26.1 billion target for the year, the state-run SSS already earned a total of P21.0 billion in investments from January to July 2008.
Income from equities alone totaled P14.2 billion, which was 28 percent more compared with the same period last year. Earnings from government securities rose by 40 percent, amounting to P3.7 billion.
Under the Social Security Law, the SSS could only buy shares of stocks in companies which has paid dividends at least once and has posted profits during the last three years, Neri said.
“Our charter, which is very strict, allows us to invest only in companies with proven profitability and viability,” he said, adding that the fund was able to weather similar market shocks in the past such as the Asian financial crisis in 1997.
Thursday, September 25, 2008
Wednesday, September 24, 2008
FedEx Announces Fivefold Increase in Daily Capacity
New Airbus A310 Service Also Reduces Transit Times to Hanoi
MANILA--FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, announced it had launched a new Airbus A310 flight service to Vietnam to meet the country’s increasing demand for reliable time-definite express services. The new service increases FedEx capacity into and out of the country fivefold, to more than 30,000kg a day.
As a result of the new service, customers also enjoy an improvement in transit times into and out of the capital, Hanoi, of one day, and can take advantage of the best delivery and cut-off times available in the city. Customer cut-off and transit times out of Ho Chi Minh City are unchanged.
“The transformation of Vietnam’s economy over the last fifteen years has seen Vietnam emerge as a powerful economic force in this region,” said David L. Cunningham Jr., president, Asia Pacific, FedEx Express.
“This service enhancement reinforces the FedEx commitment to provide greater access for customers doing business in and with Vietnam. It also helps increase Vietnam’s competitiveness throughout the region and around the world by delivering greater connectivity and convenience to our customers.”
Local businesses in Vietnam that ship internationally, and customers globally with commercial ties to Vietnam, will benefit from the comprehensive FedEx portfolio of services in the country. The service enhancement applies to all FedEx International PriorityÒ and FedEx International EconomyÒ shipments that are destined for addresses in Asia, Europe and the U.S.
FedEx customers in the Philippines will also benefit from this enhancement as Vietnam is one of the important trading partners of the country. For the first five months of 2008, Vietnam accounted for 6.5% and 7.5% of Philippine exports and imports, respectively, within the ASEAN region.
The total Philippines-Vietnam trade volume in the same period reached US$639.9 million, of which US$200.3 million stands for Philippine exports and US$439.6 million represents the country’s imports from Vietnam1.
Since FedEx first established operations in Vietnam in 1994, the company has worked to support the country’s efforts to become a key export market. With a healthy economic growth rate of 8.5%2, Vietnam’s exports rose more than 20% to US$48 billion3 in
2007. According to an estimate by the Ministry of Finance of Vietnam, the country will see an export turnover of US$58.6 billion in 2008, or a year-on-year increase of 22%.4
The upgraded Vietnam service also strengthens the FedEx AsiaOneÒ Network, which connects 19 key Asian cities with more than 400 intra-Asia flights each week. The network is interconnected with FedEx global network – covering North and South America, the Middle East, Africa and Europe.
___________________________________
About FedEx Express
FedEx Express is the world's largest express transportation company, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date with a money-back guarantee*.
*Subject to relevant terms and conditions
MANILA--FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, announced it had launched a new Airbus A310 flight service to Vietnam to meet the country’s increasing demand for reliable time-definite express services. The new service increases FedEx capacity into and out of the country fivefold, to more than 30,000kg a day.
As a result of the new service, customers also enjoy an improvement in transit times into and out of the capital, Hanoi, of one day, and can take advantage of the best delivery and cut-off times available in the city. Customer cut-off and transit times out of Ho Chi Minh City are unchanged.
“The transformation of Vietnam’s economy over the last fifteen years has seen Vietnam emerge as a powerful economic force in this region,” said David L. Cunningham Jr., president, Asia Pacific, FedEx Express.
“This service enhancement reinforces the FedEx commitment to provide greater access for customers doing business in and with Vietnam. It also helps increase Vietnam’s competitiveness throughout the region and around the world by delivering greater connectivity and convenience to our customers.”
Local businesses in Vietnam that ship internationally, and customers globally with commercial ties to Vietnam, will benefit from the comprehensive FedEx portfolio of services in the country. The service enhancement applies to all FedEx International PriorityÒ and FedEx International EconomyÒ shipments that are destined for addresses in Asia, Europe and the U.S.
FedEx customers in the Philippines will also benefit from this enhancement as Vietnam is one of the important trading partners of the country. For the first five months of 2008, Vietnam accounted for 6.5% and 7.5% of Philippine exports and imports, respectively, within the ASEAN region.
The total Philippines-Vietnam trade volume in the same period reached US$639.9 million, of which US$200.3 million stands for Philippine exports and US$439.6 million represents the country’s imports from Vietnam1.
Since FedEx first established operations in Vietnam in 1994, the company has worked to support the country’s efforts to become a key export market. With a healthy economic growth rate of 8.5%2, Vietnam’s exports rose more than 20% to US$48 billion3 in
2007. According to an estimate by the Ministry of Finance of Vietnam, the country will see an export turnover of US$58.6 billion in 2008, or a year-on-year increase of 22%.4
The upgraded Vietnam service also strengthens the FedEx AsiaOneÒ Network, which connects 19 key Asian cities with more than 400 intra-Asia flights each week. The network is interconnected with FedEx global network – covering North and South America, the Middle East, Africa and Europe.
___________________________________
About FedEx Express
FedEx Express is the world's largest express transportation company, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date with a money-back guarantee*.
*Subject to relevant terms and conditions
Some $13 billion a Year Needed to Reach Gender Millennium Development Goals
WASHINGTON—Women’s health and education have improvedsubstantially in most countries, but progress is lagging on improving theireconomic opportunities, and investments of some US$13 billion a year areneeded to achieve the overall goal of gender equality and women’s empowerment,says a new report by the World Bank and the Organization for Economic Cooperation and Development.
“Equality for Women: Where Do We Stand on Millennium Development Goal 3?” wasreleased today during a joint seminar of the International Center for Researchon Women and the World Bank, a day ahead of the United Nations High-level Event on the Millennium Development Goals (MDGs).
“Gender equality is key for poverty reduction and growth,” says DannyLeipziger, World Bank Vice President for Poverty Reduction and EconomicManagement (PREM).
“Progress on women’s education is essential but not enoughif we don’t improve women’s access to good jobs and credit lines, to landownership and to income-generating activities.”
“Equality for Women: Where Do We Stand on Millennium Development Goal 3?” wasreleased today during a joint seminar of the International Center for Researchon Women and the World Bank, a day ahead of the United Nations High-level Event on the Millennium Development Goals (MDGs).
“Gender equality is key for poverty reduction and growth,” says DannyLeipziger, World Bank Vice President for Poverty Reduction and EconomicManagement (PREM).
“Progress on women’s education is essential but not enoughif we don’t improve women’s access to good jobs and credit lines, to landownership and to income-generating activities.”
ExcelAsia, TeamAsia, ATR KimEng Sponsor BPAP and O2P Executive Forum
Photo shows (from left) Jose Antonio Vilar, PSE Assistant Head for Marketing Services – Capital Markets Development Division; Rita Trillo-Ugarte, ExcelAsia President; Gillian Joyce Virata, BPAP Executive Director for Information and Research; Clarish Barundia , TeamAsia Program Assistant, and Oscar Sañez, BPAP President.
Human resource solutions firm ExcelAsia, strategic marketing communications firm TeamAsia, and full-service investment bank ATR KimEng are sponsoring a breakfast briefing, “On the Road to Going Public: A Forum for Corporate Executives Considering Equity Funding.” The briefing is being organized by the Business Processing Association of the Philippines ’ and Outsource2Philippines with the support of the Philippine Stock Exchange.
Human resource solutions firm ExcelAsia, strategic marketing communications firm TeamAsia, and full-service investment bank ATR KimEng are sponsoring a breakfast briefing, “On the Road to Going Public: A Forum for Corporate Executives Considering Equity Funding.” The briefing is being organized by the Business Processing Association of the Philippines ’ and Outsource2Philippines with the support of the Philippine Stock Exchange.
JPEPA's New Side 'Agreement': A Deceptive Exchange of Notes
The mountain labored hard and managed to produce a mouse out of the so-called "exchange of notes" on the anti-Constitutional Japan-Philippine Economic Partnership Agreement.
It will be recalled that the Senate suspended its deliberations on the ratification of the proposed bilateral treaty to give the executive branch ample time to work out with the Japanese side corrections on JPEPA provisions that violate the Philippine Constitution. Senator Miriam Santiago, the chief sponsor of JPEPA in the Senate, openly admitted the Constitutional infirmities of JPEPA and even recommended conditional Senate concurrence to JPEPA "as an absolute necessity," otherwise the Supreme Court would declare JPEPA unconstitutional. And yet today, the lady Senator is now recommending simple Senate concurrence to JPEPA for the reason that the Exchange of Notes between Department of Foreign Affairs Secretary Alberto Romulo and Minister of Foreign Affairs Masahiko Koumura already adequately resolves the Constitutional flaws of JPEPA. simply on the basis of their shared understanding on the interpretation of JPEPA. With all due respect, the Exchange of Notes is but a piece of paper, as it is ineffectual and inadequate in curing the Constitutional flaws in JPEPA.
As a backgrounder, JPEPA as currently worded, gives to Japanese rights to full ownership of Philippine lands, unhampered exploration and development of Philippine minerals and other resources, unrestricted access in the management of Philippine public utilities and mass media, and equal treatment in the exploitation of Philippine territorial waters. In addition, JPEPA allows the illegal trade in toxic wastes and used vehicles, even as the treaty gives the Japanese side greater trade flexibility through a long list of excluded tariff lines. Thus, the appeal of the Fair Trade Alliance to both the legislative and executive branches of the government to stop the ratification process and instead re-negotiate the treaty and purge it of its anti-Constitutional and anti-development features. FairTrade thought that this appeal was heeded when the JPEPA hearings were suspended and Malacanang leaked the information that the Department of Foreign Affairs was exploring a side agreement with Japan.
In this context, the Exchange of Notes between DFA Secretary Romulo and his Japanese counterpart, Minister Koumura is a labor in vain for there is nothing in the Exchange of Notes that revises or modifies any of the above anti-Charter provisions of JPEPA. In fact, the exchange of notes in Paragraph 4 thereof expressly provides that it "does not modify the rights and obligations of the parties under the provisions of the JPEPA." Further, the Exchange of Notes is not an agreement between the parties and moreover, is not considered an integral part of JPEPA. Clearly, the said Exchange of Notes between the two countries failed to cure the anti-charter provisions of JPEPA.
We, at the Fair Trade Alliance, therefore, call on the Senate to defer any further hearing or deliberation on the JPEPA until the treaty is truly healed of its Constitutional infirmities and economic imbalances. We support the stand of Senator Francis Pangilinan for a genuine re-negotiation, not a defective and ineffectual exchange of notes. Let us summon the will to assert Philippine interests through a fair and balanced treaty! Otherwise, JPEPA as it is currently worded, must be rejected by the Senate.
Sa mga Senador: Tumindig tayo bilang tunay na Senador ng Bayan!
SSS Statement on its Financial Condition
Pension fund Social Security System said on September 17, 2008 that all its investments are in the local market, which has been profitable, and it expects to earn a record of P26 billion income from investments this year.
Although the pension fund is allowed to invest abroad, it has not done so because of the unfavorable investment climate, SSS spokesman Joel Palacios said.
Although the pension fund is allowed to invest abroad, it has not done so because of the unfavorable investment climate, SSS spokesman Joel Palacios said.
CBRE Executives Accomplish CREBA, DLS-SPaCE Real Estate Management Program
Executives of full service real estate services firm CB Richard Ellis were awarded with diplomas after accomplishing the real estate management program of the Chamber of Real Estate and Builders’ Associations and De La Salle-College of Saint Benilde School of Professional and Continuing Education.
The six module program, the first of its kind in the real estate education and practice in the Philippines, is composed of industry-responsive modules covering brokerage and marketing; laws and regulations; environmental planning; appraisal; consultancy and property management; technical planning; construction and development; real estate financing, taxation, and investments.
Photo shows CBRE negotiator Francis Bautista; CBRE project analysts Eunice Cajucom and Vixen Salvador; CREBA-SPaCE overall program director Professor Roque Magno; CBRE Director Victor Asuncion; CBRE negotiator Ian Perez, and CBRE vice chairman and head of global corporate services Joey Radovan.
###
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2006 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; investment management; appraisal and valuation; and research and consulting. Please visit our Web site at www.cbre.com.ph.
Photo shows CBRE negotiator Francis Bautista; CBRE project analysts Eunice Cajucom and Vixen Salvador; CREBA-SPaCE overall program director Professor Roque Magno; CBRE Director Victor Asuncion; CBRE negotiator Ian Perez, and CBRE vice chairman and head of global corporate services Joey Radovan.
###
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2006 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; investment management; appraisal and valuation; and research and consulting. Please visit our Web site at www.cbre.com.ph.
NEDA-ICC endorses six projects worth PhP17.4 billion to NEDA Board
In a recent joint meeting, the National Economic and Development Authority Investment Coordination Committee-Technical Board and Cabinet Committee endorsed to the NEDA Board for approval six projects costing some PhP17.4 billion.
The ICC-TB and CC approved the Philippine Energy Efficiency Project, which costs about P2.17 billion. The project aims to reduce government expenditure on electricity by 20 percent in pilot government buildings as well as average cost of production by electric cooperatives by 10 percent.
The project also intends to increase the cooperatives’ electric consumption by 10 percent from 2007 levels. About PhP1.58 billion funding for the Project will be sourced from a loan from Asian Development Bank (ADB), PhP67.5 million from the ADB Clean Energy Fund grant, and the remaining PhP517.5 million will come from the Department of Energy’s counterpart fund.
In the report submitted by Assistant Director-General and NEDA Infrastructure Staff Director Ruben Reinoso to the ICC, he said that the project will “reduce peak demand in ECs through consumer savings for each compact fluorescent lamp, reduce energy consumption in 42 pilot public buildings by five percent from 2007 and recover residual mercury from fluorescent lights within 24 months to prevent it from entering the food chain.”
Among the components of the project are the National Residential Lighting Program and the creation of the Super Energy Service Company. The lighting program involves the distribution of 13 million (13,14 and 15-watt) CFLs to residential and small commercial sectors that cover about 6.68 million households nationwide. The Super ESCO will be created as a subsidiary of the Philippine National Oil Company under the DOE.
Endorsed also was the Credit Line for Energy Efficiency and Climate Protection project in the Philippines proposed by the Land Bank of the Philippines. This is intended to support the initiatives, programs and projects that promote energy efficiency and climate protection. The credit line will be available to private sector companies and entities which are at least 70 percent Filipino-owned. Local government units, National Government Agencies, and Government-Owned and Controlled Corporations may also avail of credit as sub-borrowers.
Three transmission projects were likewise approved. These are the P6.13-billion Abaga-Kirahon-Maramag 230kV Power Transmission Project, the P1.63-billion General Santos-Tacurong 138kV Transmission Line Project, and the P1.27-billion Wright-Calbayog 138kV Transmission Line Project.
All three projects aim to ensure continuous supply of adequate power to the areas mentioned. The ICC also approved the PhP4.52 billion Project on Forestlands Management of the Department of Environment and Natural Resources, which aims to rehabilitate degraded forestlands to uplift the socio-economic conditions of affected communities in three critical river basins, i.e., Upper Magat and Cagayan, Upper Pampanga and Jalaur River basin.
The ICC-TB and CC approved the Philippine Energy Efficiency Project, which costs about P2.17 billion. The project aims to reduce government expenditure on electricity by 20 percent in pilot government buildings as well as average cost of production by electric cooperatives by 10 percent.
The project also intends to increase the cooperatives’ electric consumption by 10 percent from 2007 levels. About PhP1.58 billion funding for the Project will be sourced from a loan from Asian Development Bank (ADB), PhP67.5 million from the ADB Clean Energy Fund grant, and the remaining PhP517.5 million will come from the Department of Energy’s counterpart fund.
In the report submitted by Assistant Director-General and NEDA Infrastructure Staff Director Ruben Reinoso to the ICC, he said that the project will “reduce peak demand in ECs through consumer savings for each compact fluorescent lamp, reduce energy consumption in 42 pilot public buildings by five percent from 2007 and recover residual mercury from fluorescent lights within 24 months to prevent it from entering the food chain.”
Among the components of the project are the National Residential Lighting Program and the creation of the Super Energy Service Company. The lighting program involves the distribution of 13 million (13,14 and 15-watt) CFLs to residential and small commercial sectors that cover about 6.68 million households nationwide. The Super ESCO will be created as a subsidiary of the Philippine National Oil Company under the DOE.
Endorsed also was the Credit Line for Energy Efficiency and Climate Protection project in the Philippines proposed by the Land Bank of the Philippines. This is intended to support the initiatives, programs and projects that promote energy efficiency and climate protection. The credit line will be available to private sector companies and entities which are at least 70 percent Filipino-owned. Local government units, National Government Agencies, and Government-Owned and Controlled Corporations may also avail of credit as sub-borrowers.
Three transmission projects were likewise approved. These are the P6.13-billion Abaga-Kirahon-Maramag 230kV Power Transmission Project, the P1.63-billion General Santos-Tacurong 138kV Transmission Line Project, and the P1.27-billion Wright-Calbayog 138kV Transmission Line Project.
All three projects aim to ensure continuous supply of adequate power to the areas mentioned. The ICC also approved the PhP4.52 billion Project on Forestlands Management of the Department of Environment and Natural Resources, which aims to rehabilitate degraded forestlands to uplift the socio-economic conditions of affected communities in three critical river basins, i.e., Upper Magat and Cagayan, Upper Pampanga and Jalaur River basin.
BOC Seized Smuggled Agri Products
Commissioner Napoleon L. Morales on September 19 presented to the media fourteen forty-footer containers of smuggled apples, ginger and onions valued at over P24.8 million seized by Customs Intelligence and Investigation Service operatives at the Port of Manila.
All fourteen containers which arrived in two different shipments at the Port of Manila from Hong Kong and China were consigned to Futek Enterprises. CIIS operatives alerted the shipment after the 3D-day grace period in which the importers failed to file the necessary entries.
Inspection of the containers revealed that the four containers which arrived on board Fesco Trader from China , declared to contain apples, actually contained fresh apples and ginger. The other ten containers which arrived on board Ocean Park from Hong Kong were also misdeclared as garlic but actually contained yellow and red onions. Both shipments were not covered by any import permit from the Bureau of Plant Industry of the Department of Agriculture.
"We will unplug these reefer containers to speed up the decomposition process and we will finally dispose the contents either by rendering or burying underground," said Dino Tuason, Head of the Intelligence Division of CIIS.
"We are seeking the guidance of the Bureau of Plant Industry on how best to dispose these products," said Commissioner Morales, who also clarified that the shipments may not be sold through auction, "because these have not been cleared by the DA as fit for human consumption. We cannot allow these to enter the market. We have to protect our consumers."
The volume of the seized apples and ginger, if sold to the market, can fetch some P6.4 million. On the other hand, the volurT:Ie of onions is valued to be worth some P18.4 million.
Commissioner Morales also ordered the CIIS to review all overstaying containers in the container yards to determine what can be auctioned, or disposed of to decongest the container yard in preparation for the anticipated increase in volume of imports in the last quarter of the year due to the higher demand during the Christmas season.
All fourteen containers which arrived in two different shipments at the Port of Manila from Hong Kong and China were consigned to Futek Enterprises. CIIS operatives alerted the shipment after the 3D-day grace period in which the importers failed to file the necessary entries.
Inspection of the containers revealed that the four containers which arrived on board Fesco Trader from China , declared to contain apples, actually contained fresh apples and ginger. The other ten containers which arrived on board Ocean Park from Hong Kong were also misdeclared as garlic but actually contained yellow and red onions. Both shipments were not covered by any import permit from the Bureau of Plant Industry of the Department of Agriculture.
"We will unplug these reefer containers to speed up the decomposition process and we will finally dispose the contents either by rendering or burying underground," said Dino Tuason, Head of the Intelligence Division of CIIS.
"We are seeking the guidance of the Bureau of Plant Industry on how best to dispose these products," said Commissioner Morales, who also clarified that the shipments may not be sold through auction, "because these have not been cleared by the DA as fit for human consumption. We cannot allow these to enter the market. We have to protect our consumers."
The volume of the seized apples and ginger, if sold to the market, can fetch some P6.4 million. On the other hand, the volurT:Ie of onions is valued to be worth some P18.4 million.
Commissioner Morales also ordered the CIIS to review all overstaying containers in the container yards to determine what can be auctioned, or disposed of to decongest the container yard in preparation for the anticipated increase in volume of imports in the last quarter of the year due to the higher demand during the Christmas season.
Strategic Tools Essential to Drive Growth, Says JDA Software Country Manager
As commodities and competition soar, businesses seek better forecasting, supply chain management tools
Soaring oil prices leading to increased commodity and service costs across the board and intense competition are forcing Philippine businesses to rapidly improve their capability for gauging customer demand and delivering products and services more cost-effectively when and where they are needed, the top Philippine executive of a global software company said.
“Companies are focusing on demand forecasting, planning and optimization of their supply chains, said JDA Software Philippines country manager Cherokee Chamorro.
“Given increased competition, rising costs, and other macro-economic factors, Philippine businesses are telling us their key challenge is to predict customer demand in the most accurate and timely manner possible, then execute supply chain processes to meet demand as efficiently as possible.”
The company’s solutions provide “the ability for retailers and manufacturers to segment customers and territories based on actual buying behavior. This provides the capability to forecast demand based on basic demographic and geographic attributes, actual historical sales information, current market research data, and forward-looking market trends,” Chamorro said.
“Our solutions provide retailers and manufacturers the means to achieve their profit and merchandising objectives through optimal inventory and service levels. Our customers typically experience significant increases in market share as a result. Another benefit is lower inventory of slow-moving products by as much as 20% to 70% while increasing service levels,” Chamorro said.
According to Chamorro, JDA has demonstrated these capabilities with major clients through Asia Pacific and is now working with major Philippine companies to provide the same benefits.
Arun Grupta, CIO of HyperCITY, a member of India ’s retail giant Shopper’s Stop Group, recently explained the benefits his company experienced. "Before we implemented JDA’s Allocation & Replenishment solutions, it was an experiment for us to understand what customers would buy. For example, we closely evaluated our grocery products to determine what kind of categories would sell and which would not. We found that the JDA solutions are able to provide information that helps us plan our category mix a lot more effectively. As a result of better business decisions driven by the JDA solutions, some of the categories we offered two years back have been replaced by newer, better-selling categories," he said.
"Precise inventory planning is essential to HyperCITY's continued success. In the retail and food business, availability of the right SKU in the right quantity on the shelf is imperative. When the ordering is based on guesswork rather than statistics, the result is excess inventory or empty shelves. This inventory holding cost can adversely impact profitability. Additional stock also means that available space to hold the stock is at a premium." Arun said.
JDA solutions are used by more than 5,550 retailers and manufacturers of all sizes internationally, according to Chamorro. Eight of the Philippines top 10 retailers use JDA’s Merchandise Management System to integrate point-of-sale and enterprise financial systems.
###
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results – fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably. For more information on JDA Software, visit www.jda.com.
Soaring oil prices leading to increased commodity and service costs across the board and intense competition are forcing Philippine businesses to rapidly improve their capability for gauging customer demand and delivering products and services more cost-effectively when and where they are needed, the top Philippine executive of a global software company said.
“Companies are focusing on demand forecasting, planning and optimization of their supply chains, said JDA Software Philippines country manager Cherokee Chamorro.
“Given increased competition, rising costs, and other macro-economic factors, Philippine businesses are telling us their key challenge is to predict customer demand in the most accurate and timely manner possible, then execute supply chain processes to meet demand as efficiently as possible.”
The company’s solutions provide “the ability for retailers and manufacturers to segment customers and territories based on actual buying behavior. This provides the capability to forecast demand based on basic demographic and geographic attributes, actual historical sales information, current market research data, and forward-looking market trends,” Chamorro said.
“Our solutions provide retailers and manufacturers the means to achieve their profit and merchandising objectives through optimal inventory and service levels. Our customers typically experience significant increases in market share as a result. Another benefit is lower inventory of slow-moving products by as much as 20% to 70% while increasing service levels,” Chamorro said.
According to Chamorro, JDA has demonstrated these capabilities with major clients through Asia Pacific and is now working with major Philippine companies to provide the same benefits.
Arun Grupta, CIO of HyperCITY, a member of India ’s retail giant Shopper’s Stop Group, recently explained the benefits his company experienced. "Before we implemented JDA’s Allocation & Replenishment solutions, it was an experiment for us to understand what customers would buy. For example, we closely evaluated our grocery products to determine what kind of categories would sell and which would not. We found that the JDA solutions are able to provide information that helps us plan our category mix a lot more effectively. As a result of better business decisions driven by the JDA solutions, some of the categories we offered two years back have been replaced by newer, better-selling categories," he said.
"Precise inventory planning is essential to HyperCITY's continued success. In the retail and food business, availability of the right SKU in the right quantity on the shelf is imperative. When the ordering is based on guesswork rather than statistics, the result is excess inventory or empty shelves. This inventory holding cost can adversely impact profitability. Additional stock also means that available space to hold the stock is at a premium." Arun said.
JDA solutions are used by more than 5,550 retailers and manufacturers of all sizes internationally, according to Chamorro. Eight of the Philippines top 10 retailers use JDA’s Merchandise Management System to integrate point-of-sale and enterprise financial systems.
###
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results – fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably. For more information on JDA Software, visit www.jda.com.
Tuesday, September 23, 2008
TESDA Instructor Wins Dangal ng Bayan Award
Naida G. Lasangre, 51, an instructor at the Lupon School of Fisheries, a TESDA technical-vocational institution in Lupon, Davao Oriental, has won the Civil Service Commission’s 2008 Dangal ng Bayan Award.
She is one of the seven winners of the CSC’s yearly search for outstanding government employees, and was selected on the basis of her remarkable achievements in aquaculture education and development and community extension work.
As a government employee, she was also cited for her simple living and commitment to democracy.
Lasangre goes to work with her husband even during Saturdays and Sundays. She was one of those instrumental in enabling LSF to avail the highest amount of grant in Region 11 provided under the TESDA’s Jobs Directed Scholarship Program. It was she who prepared the Institutional Implementation Plan for Aquaculture, the LSF’s Distinctive Area of Competence (DAC), which hastened the release of an P8 million soft loan from the government of Germany for aquaculture processing tools and equipment.
A TESDA National Model Employee awardee in 2006, Lasangre, who has been teaching for 27 years, has been instrumental in the development of the LSF fishpond, which now greatly aids in the education of LSF’s aquculture students.
TESDA means Technical Education and Skills Development Authority.
“Because of her contribution to the development of the fishpond, LSF aquaculture students now train in bangus grow-out production hands-on, instead of through CDs and tapes which was the case before,” said Delia Lorica, LSF administrator.
“The LSF also now earns from the fishpond, it being the school’s second-highest income-generating project,” she added.
A mother of seven children, four of whom have ventured in tech-voc careers, Lasangre is an active member of the Couples for Christ and the Philippine Aquaculture Society. Her husband, Edgardo, is also an aquaculture instructor at the same school.
Her achievement in community-based training in agri-fishery is well known. She trained farmers in Barangay Rang-ay, Banay-banay, Davao Oriental in growing tilapia in a grow-out pond and taught them tilapia processing to add value to the product.
In Belayong, San Isidro, another Davao Oriental town, she trained a group of Muslims whose chieftain is a rebel returnee in growing tilapia in cages and processing them into ‘tamayo’. Today, about 50 families enjoy the fruit of her labors by engaging in tilapia growing.
TESDA director general Augusto Boboy Syjuco lauded Lasangre for her achievement when she met her and her husband in his office.
“TESDA is proud to have an employee winning the prestigious Dangal ng Bayan Award,” he said, noting how Mrs. Lasangre has motivated students in Lupon and other communities to pursue careers in tech-voc education.
Lasangre, along with the other awardees, will receive her award today from President Gloria Macapagal Arroyo in Malacanang.
“Because of her contribution to the development of the fishpond, LSF aquaculture students now train in bangus grow-out production hands-on, instead of through CDs and tapes which was the case before,” said Delia Lorica, LSF administrator.
“The LSF also now earns from the fishpond, it being the school’s second-highest income-generating project,” she added.
A mother of seven children, four of whom have ventured in tech-voc careers, Lasangre is an active member of the Couples for Christ and the Philippine Aquaculture Society. Her husband, Edgardo, is also an aquaculture instructor at the same school.
Her achievement in community-based training in agri-fishery is well known. She trained farmers in Barangay Rang-ay, Banay-banay, Davao Oriental in growing tilapia in a grow-out pond and taught them tilapia processing to add value to the product.
In Belayong, San Isidro, another Davao Oriental town, she trained a group of Muslims whose chieftain is a rebel returnee in growing tilapia in cages and processing them into ‘tamayo’. Today, about 50 families enjoy the fruit of her labors by engaging in tilapia growing.
TESDA director general Augusto Boboy Syjuco lauded Lasangre for her achievement when she met her and her husband in his office.
“TESDA is proud to have an employee winning the prestigious Dangal ng Bayan Award,” he said, noting how Mrs. Lasangre has motivated students in Lupon and other communities to pursue careers in tech-voc education.
Lasangre, along with the other awardees, will receive her award today from President Gloria Macapagal Arroyo in Malacanang.
Pinays On Board Ship Battle Discrimination, Exploitation and Harassment
Kanlungan Centre Foundation Inc., the UP Center for Women’s Studies and the UP Department of Women and Development Studies are holding a forum on the plight of women seafares on Sept. 29 from 1 to 4 pm at the audio-visual room of the UP College of Social Work and Community Development Building in Diliman, Quezon City.
Former journalist and faculty member of the UP Journalism Department Lucia P. Tangi is expected to unveil at the forum her study entitled, “Pinays” On Board: An Exploratory Study on the Working Conditions of Filipino Women Seafarers.
Prof. Tangi’s study--the first of its kind in the Philippines--focuses on the various forms of discrimination, exploitation and sexual harassments that Filipino women seafarers have to endure in exchange for the dollars that they remit to their families.
The study which was based on in-depth interviews with women seafarers, male officers and crewing managers found that Filipino women seafarers face institutional forms of discrimination as they enter a hierarchical and male-dominated industry.
Representatives from the Philippine Overseas and Employment Agency, Associated Marine Officers and Seafarers’ Union of the Philippines, and the Maritime Academy of Asia and the Pacific have been invited as members of the panel of reactors.
Prof. Tangi worked as a journalist in Manila, Hong Kong and in Japan before pursuing her Master’s Degree in Women and Development at the UP CSWCD. During her five-year stint in Hong Kong, she received two awards from the Hong Kong Newspaper Society in the general news and business categories. She also received a bronze award from the the Hong Kong AIDS Council for her reports on AIDS/HIV and she was also given a special award by the Hong Kong Amnesty International for her human rights coverage .
Former journalist and faculty member of the UP Journalism Department Lucia P. Tangi is expected to unveil at the forum her study entitled, “Pinays” On Board: An Exploratory Study on the Working Conditions of Filipino Women Seafarers.
Prof. Tangi’s study--the first of its kind in the Philippines--focuses on the various forms of discrimination, exploitation and sexual harassments that Filipino women seafarers have to endure in exchange for the dollars that they remit to their families.
The study which was based on in-depth interviews with women seafarers, male officers and crewing managers found that Filipino women seafarers face institutional forms of discrimination as they enter a hierarchical and male-dominated industry.
Representatives from the Philippine Overseas and Employment Agency, Associated Marine Officers and Seafarers’ Union of the Philippines, and the Maritime Academy of Asia and the Pacific have been invited as members of the panel of reactors.
Prof. Tangi worked as a journalist in Manila, Hong Kong and in Japan before pursuing her Master’s Degree in Women and Development at the UP CSWCD. During her five-year stint in Hong Kong, she received two awards from the Hong Kong Newspaper Society in the general news and business categories. She also received a bronze award from the the Hong Kong AIDS Council for her reports on AIDS/HIV and she was also given a special award by the Hong Kong Amnesty International for her human rights coverage .
Friday, September 19, 2008
TESDA Fast Tracking Seafarer Assessment
Technical Education and Skills Development Authority Secretary General Augusto ‘Boboy’ Syjuco said the TESDA is fast tracking the assessment of seafarers and continues to issue certificates of competency, belying the complaint of the so-called Retired Seafarers Association that the TESDA has stopped the issuance of COCs since Thursday last week.
“We took note of the complaint, but I wish the complainant had checked with the TESDA first about the matter,” Syjuco said in a press release.
“The TESDA continues to issue COCs and has in fact assigned a fulltime maritime training officer to attend to seafarer concerns,” he added.
Syjuco, who holds the rank of cabinet secretary, also said the RSA’s complaint that the alleged stoppage will cause delay in the deployment of seafarers is far-fetched.
“Since the TESDA has not stopped issuing COCs, how could there be delay in the deployment of seafarers?” he asked.
Data of the Philippine Overseas Employment Administration show that in 2007, the country deployed 266,553 seafarers, or 25 percent of the total OFW deployment of 1.07 million.
Of the number, 61,307 (23 percent) are officers; 165,263 (62 percent) are ratings; and 33,983 (15 percent) are other passenger ship personnel.
The same data also show that as of September 2008, the country has a total certified seafarer stock of 343,651 deck ratings and 118,593 engine ratings.
The TESDA chief explained that under the law, TESDA is mandated to issue COCs to seafarer deck and engine ratings after conducting a competency assessment.
He said the agency conducts two types of assessments. The first is portfolio or document assessment which covers experienced or returning seafarers. The second is the performance assessment, which consists of written and skills demonstration administered to new entrants in the seafaring profession.
He emphasized that a seafarer must pass the TESDA competency assessment before he could be issued a COC, which has a validity of five years.
Syjuco said that the TESDA has six accredited assessment centers for deck and engine ratings located in Regions 3, 6, 8 and in the National Capital Region. Three assessment centers in Regions 4-A, 7, and 11 are undergoing re-accreditation process.
In Metro Manila, the National Capital Regional office of the TESDA conducts portfolio assessment through the Free Assessment Service of TESDA, while performance assessment is administered by accredited assessment centers.
“We took note of the complaint, but I wish the complainant had checked with the TESDA first about the matter,” Syjuco said in a press release.
“The TESDA continues to issue COCs and has in fact assigned a fulltime maritime training officer to attend to seafarer concerns,” he added.
Syjuco, who holds the rank of cabinet secretary, also said the RSA’s complaint that the alleged stoppage will cause delay in the deployment of seafarers is far-fetched.
“Since the TESDA has not stopped issuing COCs, how could there be delay in the deployment of seafarers?” he asked.
Data of the Philippine Overseas Employment Administration show that in 2007, the country deployed 266,553 seafarers, or 25 percent of the total OFW deployment of 1.07 million.
Of the number, 61,307 (23 percent) are officers; 165,263 (62 percent) are ratings; and 33,983 (15 percent) are other passenger ship personnel.
The same data also show that as of September 2008, the country has a total certified seafarer stock of 343,651 deck ratings and 118,593 engine ratings.
The TESDA chief explained that under the law, TESDA is mandated to issue COCs to seafarer deck and engine ratings after conducting a competency assessment.
He said the agency conducts two types of assessments. The first is portfolio or document assessment which covers experienced or returning seafarers. The second is the performance assessment, which consists of written and skills demonstration administered to new entrants in the seafaring profession.
He emphasized that a seafarer must pass the TESDA competency assessment before he could be issued a COC, which has a validity of five years.
Syjuco said that the TESDA has six accredited assessment centers for deck and engine ratings located in Regions 3, 6, 8 and in the National Capital Region. Three assessment centers in Regions 4-A, 7, and 11 are undergoing re-accreditation process.
In Metro Manila, the National Capital Regional office of the TESDA conducts portfolio assessment through the Free Assessment Service of TESDA, while performance assessment is administered by accredited assessment centers.
SC Transfers Election Case Versus Tineg Mayor to Laoag Court
The Supreme Court has decided to transfer the venue of the election protest filed by defeated candidate Lenin Benwaren against Tineg, Abra Mayor Edwin Crisologo Sr. to the Regional Trial Court in Laoag City, Ilocos Norte.
In granting the plea of Crisologo, the 2nd Division of the SC noted the dangers facing Crisologo and his counsel, Atty. Estelita Cordero, and said the political turmoil in Abra is "publicly known throughout the country."
The July 28, 2008 resolution of the 2nd Division was received belatedly by Crisologo, who filed the petition on January 17, 2008, several months after his wife Brenda died nearly two months after she was shot by an assassin in Bangued, Abra.
Crisologo's victory in the May 2007 elections has been questioned by Benwaren in Election Case No. 2007-004, which was originally lodged at RTC Branch 2 in Bangued, Abra.
Judge Corpuz B. Alzate of the Bangued RTC did not object to the plea of Crisologo.
The resolution also directed the Branch Clerk of Court ofn RTC Branch 2 in Bangued to transmit the records of the case to the Executive Jduge of RTC in Laoag City, Ilocos Norte.
It also ordered the Executive Judge of the Laoag City RTC to raffle the case to a branch of the court upon receipt of the case records.
The division also instructed the judge assigned to handle the case to hear the case with dispatch.
Crisologo welcomed the resolution while Cordero expressed relief since it represented a legal victory for her.
Benwaren earlier asked the same division to transfer the venue of the case to any court in San Fernando City, La Union but Crisologo objected, saying San Fernando City is near Baguio City, where the regional office of the Philippine National Police (PNP) in the Cordillera Administrative Region is located, and feared that his security and that of his witnesses might be at risk.
The head of the PNP in CAR, Chief Supt. Eugene Martin, is at logerheads with Crisologo and his counsel.
In a related development, Chief Supt. Ramon Gatan, head of the PNP in Region 1, has granted the request of Cordero for the assignment of five security escorts for her each time she attends hearings on the administrative cases filed against Crisologo in Bangued and Criminal Case Nos. 2007-08, 2--7-059-061 and IS Case NBo. 2008-D-138, all of which were described by the lawyer as harassment suits.
Cordero said threats to her life had been issued by a member of a powerful political clan in Abra and that she had reported the same to the police in Ilocos Sur and to Brig. Gen. Loreto Rirao Jr., commanding general of the 503rd Infantry Brigade of the Philippine Army, which is stationed at Sulvec, Narvacan, Ilocos Sur. Cordero is a native of Narvacan who also handles cases in Abra.
In granting the plea of Crisologo, the 2nd Division of the SC noted the dangers facing Crisologo and his counsel, Atty. Estelita Cordero, and said the political turmoil in Abra is "publicly known throughout the country."
The July 28, 2008 resolution of the 2nd Division was received belatedly by Crisologo, who filed the petition on January 17, 2008, several months after his wife Brenda died nearly two months after she was shot by an assassin in Bangued, Abra.
Crisologo's victory in the May 2007 elections has been questioned by Benwaren in Election Case No. 2007-004, which was originally lodged at RTC Branch 2 in Bangued, Abra.
Judge Corpuz B. Alzate of the Bangued RTC did not object to the plea of Crisologo.
The resolution also directed the Branch Clerk of Court ofn RTC Branch 2 in Bangued to transmit the records of the case to the Executive Jduge of RTC in Laoag City, Ilocos Norte.
It also ordered the Executive Judge of the Laoag City RTC to raffle the case to a branch of the court upon receipt of the case records.
The division also instructed the judge assigned to handle the case to hear the case with dispatch.
Crisologo welcomed the resolution while Cordero expressed relief since it represented a legal victory for her.
Benwaren earlier asked the same division to transfer the venue of the case to any court in San Fernando City, La Union but Crisologo objected, saying San Fernando City is near Baguio City, where the regional office of the Philippine National Police (PNP) in the Cordillera Administrative Region is located, and feared that his security and that of his witnesses might be at risk.
The head of the PNP in CAR, Chief Supt. Eugene Martin, is at logerheads with Crisologo and his counsel.
In a related development, Chief Supt. Ramon Gatan, head of the PNP in Region 1, has granted the request of Cordero for the assignment of five security escorts for her each time she attends hearings on the administrative cases filed against Crisologo in Bangued and Criminal Case Nos. 2007-08, 2--7-059-061 and IS Case NBo. 2008-D-138, all of which were described by the lawyer as harassment suits.
Cordero said threats to her life had been issued by a member of a powerful political clan in Abra and that she had reported the same to the police in Ilocos Sur and to Brig. Gen. Loreto Rirao Jr., commanding general of the 503rd Infantry Brigade of the Philippine Army, which is stationed at Sulvec, Narvacan, Ilocos Sur. Cordero is a native of Narvacan who also handles cases in Abra.
Neda Chief: Pushing Growth Strategies Key To Address Global Slowdown
Socioeconomic Planning Secretary and National Economic and Development Authority Director-General Ralph G. Recto said that strategies to boost growth should be pushed in light of the current global slowdown and increased food and fuel prices, which includes improving capacity of government agencies in using their budgets, encouraging diversification, innovation and upgrading exports, continuing strong support for agriculture and attracting more investments from countries like China and the Middle East.
“In order to meet the economic growth targets, the following are some of our key strategies. First is to increase the absorptive capacity of government agencies. We are directing the infrastructure agencies to prepare their engineering plans now for projects in the proposed 2009 budget. We must also proceed with procurement reforms to ensure that they are indeed transparent and efficient; improve the technical, legal and financial expertise as well as planning and implementation capacity of our agencies. The central government must improve its coordination with local government units to ensure that infrastructure development will reach remote municipalities, particularly by identifying and implementing projects,” he said during the Mid-Year Philippine Economic Briefing held in Makati City.
Recto said that the country’s manufacturing and exporting firms need to enter into high-end product lines to generate greater revenues and to become more competitive. The government should continue its strong support for agriculture via the FIELDS program.
Recto underscored the need to attract investments from China and the Middle East. China is the rising dragon of the century offer a mammoth market and a vast reservoir of capital, and there is a need to expand trade, investment, and tourism with this nation, as well as draw investments from the Arab nations that are awash with oil revenues
“For the remainder of the planning period, the strategic investments needed to boost growth can be summarized in the catchword HEARTS: Health, Education, Agriculture, Roads/Bridges/Railroads (infrastructure), Technology/Tourism, Security/Shelter/Social Protection/Subsidies. I shall focus though on R or infrastructure investments of the HEARTS,” he said.
To implement these strategies, according to the NEDA Chief, there is a need for the immediate approval of the 2009 budget. “I ask Congress: Please pass the budget on time so that we can make infrastructure investments on time. This would help increase the absorptive capacity of agencies. Recall that the 2008 budget was approved only in March. Because of this, agencies were not able to maximize use of their funds during the first half of the year and take advantage of the good weather season,” he said.
Despite concerns over the possible impact of the slower global economy and rising commodity prices on growth prospects, the NEDA chief said that “the ship steams on as growth continues to be resilient, because of fiscal reforms and achieving macroeconomic stability.
“Amid the storm in global finance we remain secure, for we have done our homework. Fiscal reforms, most notably the passage of the expanded Value-Added Tax law, have yielded vital revenues since 2005. As a result, the national government deficit has been falling, from PhP187 billion in 2004 to PhP33 billion as of July. Hence, the country is on track to balance the National Government budget by 2010,” Recto explained.
Another fact that is under-appreciated, according to the NEDA chief, is that surpluses have been posted in the wider public sector accounts for the past two years. Because of the fiscal reforms, the debt burden has been easing, as seen in falling debt to GDP ratios. “The added revenues have allowed us to reemphasize infrastructure spending. Then we have our rising pool of foreign exchange, thanks to the combined streams of exports, outsourcing, tourism, and overseas workers’ remittances. Our balance of payments remains in a healthy surplus,” he explained.
These factors have been instrumental in addressing the major challenges, like volatility in world oil prices, higher food prices, inflationary pressures, and the slowdown of exports.
“Let me stress that we are confident. The storm is here, yes, but we have built quite a strong ship. It has a secure foundation of fiscal reform. It has more resources at its disposal. It is investing more on infrastructure. Its diaspora of workers will ensure a steady base of growth no matter what comes. I hope we can unite on this ship and get all hands on deck,” Recto said.
“In order to meet the economic growth targets, the following are some of our key strategies. First is to increase the absorptive capacity of government agencies. We are directing the infrastructure agencies to prepare their engineering plans now for projects in the proposed 2009 budget. We must also proceed with procurement reforms to ensure that they are indeed transparent and efficient; improve the technical, legal and financial expertise as well as planning and implementation capacity of our agencies. The central government must improve its coordination with local government units to ensure that infrastructure development will reach remote municipalities, particularly by identifying and implementing projects,” he said during the Mid-Year Philippine Economic Briefing held in Makati City.
Recto said that the country’s manufacturing and exporting firms need to enter into high-end product lines to generate greater revenues and to become more competitive. The government should continue its strong support for agriculture via the FIELDS program.
Recto underscored the need to attract investments from China and the Middle East. China is the rising dragon of the century offer a mammoth market and a vast reservoir of capital, and there is a need to expand trade, investment, and tourism with this nation, as well as draw investments from the Arab nations that are awash with oil revenues
“For the remainder of the planning period, the strategic investments needed to boost growth can be summarized in the catchword HEARTS: Health, Education, Agriculture, Roads/Bridges/Railroads (infrastructure), Technology/Tourism, Security/Shelter/Social Protection/Subsidies. I shall focus though on R or infrastructure investments of the HEARTS,” he said.
To implement these strategies, according to the NEDA Chief, there is a need for the immediate approval of the 2009 budget. “I ask Congress: Please pass the budget on time so that we can make infrastructure investments on time. This would help increase the absorptive capacity of agencies. Recall that the 2008 budget was approved only in March. Because of this, agencies were not able to maximize use of their funds during the first half of the year and take advantage of the good weather season,” he said.
Despite concerns over the possible impact of the slower global economy and rising commodity prices on growth prospects, the NEDA chief said that “the ship steams on as growth continues to be resilient, because of fiscal reforms and achieving macroeconomic stability.
“Amid the storm in global finance we remain secure, for we have done our homework. Fiscal reforms, most notably the passage of the expanded Value-Added Tax law, have yielded vital revenues since 2005. As a result, the national government deficit has been falling, from PhP187 billion in 2004 to PhP33 billion as of July. Hence, the country is on track to balance the National Government budget by 2010,” Recto explained.
Another fact that is under-appreciated, according to the NEDA chief, is that surpluses have been posted in the wider public sector accounts for the past two years. Because of the fiscal reforms, the debt burden has been easing, as seen in falling debt to GDP ratios. “The added revenues have allowed us to reemphasize infrastructure spending. Then we have our rising pool of foreign exchange, thanks to the combined streams of exports, outsourcing, tourism, and overseas workers’ remittances. Our balance of payments remains in a healthy surplus,” he explained.
These factors have been instrumental in addressing the major challenges, like volatility in world oil prices, higher food prices, inflationary pressures, and the slowdown of exports.
“Let me stress that we are confident. The storm is here, yes, but we have built quite a strong ship. It has a secure foundation of fiscal reform. It has more resources at its disposal. It is investing more on infrastructure. Its diaspora of workers will ensure a steady base of growth no matter what comes. I hope we can unite on this ship and get all hands on deck,” Recto said.
Employer Gets 8 Years for Unpaid SSS Contributions
A trial court sentenced the owner of a Quezon City-based food company to a maximum of eight years in jail for failure to pay contributions to the Social Security System (SSS) for more than two years.
Judge Vivencio Baclig also ordered Norma Flores, President of the Royal East Food Corporation, to pay a total of P94,874 in unpaid contributions including the three percent monthly penalty, and P20,000 fine.
“The evidence for the prosecution clearly show that the Royal East Food Corporation was delinquent in the remittance of the contributions it is mandated to pay to the SSS,” Baclig said in his three-page decision.
The court found Royal East delinquent in remitting employees’ SSS contributions from December 1998 to October 2001. Flores pleaded not guilty during her arraignment on February 2004, but she failed to present evidence for her defense.
In his testimony, SSS account officer Enrique del Carmen said the company failed to comply with its own proposal to pay the delinquency by installment, and the pension fund went to court in 2002.
Employers who violate the Social Security Law face up to 12 years in prison and fines ranging from P5,000 to P20,000 on top of the corresponding penalties.
Under the law, employers should pay premiums on or before the 10th day after the applicable month to avoid a three percent monthly penalty.
Judge Vivencio Baclig also ordered Norma Flores, President of the Royal East Food Corporation, to pay a total of P94,874 in unpaid contributions including the three percent monthly penalty, and P20,000 fine.
“The evidence for the prosecution clearly show that the Royal East Food Corporation was delinquent in the remittance of the contributions it is mandated to pay to the SSS,” Baclig said in his three-page decision.
The court found Royal East delinquent in remitting employees’ SSS contributions from December 1998 to October 2001. Flores pleaded not guilty during her arraignment on February 2004, but she failed to present evidence for her defense.
In his testimony, SSS account officer Enrique del Carmen said the company failed to comply with its own proposal to pay the delinquency by installment, and the pension fund went to court in 2002.
Employers who violate the Social Security Law face up to 12 years in prison and fines ranging from P5,000 to P20,000 on top of the corresponding penalties.
Under the law, employers should pay premiums on or before the 10th day after the applicable month to avoid a three percent monthly penalty.
Growth in the O&O Industry Driving Demand in the Office Sector
Locations outside the CBD area eyed by expanding service providers
The steady growth of the offshoring and outsourcing industry will continue to drive demand in the office sector with property developers eyeing locations outside the Metro Manila Central Business Districts for expansion, said CB Richard Ellis Philippines Vice Chairman Joey Radovan at Shared Services Week Asia 2008 in Singapore. Radovan, as head of the Global Corporate Services group, promoted the Philippines as an offshoring location to an audience that included Shell, Diageo, CITI Bank, Hewlett Packard and Rolls Royce.
The O&O industry in the Philippines expanded 50% annually from US$1.47 billion in 2004 to US$7 billion in 2007. In response to sustained demand for office space in the industry, 34 projects with a total floor area of 731,871 square meters are to be completed in 2008. At the end of 2007, call centers and other O&O companies occupied 1,080,000 square meters of space, a substantial increase from 750,000 square meters in 2006.
According to Radovan, investment in non-voice back office services is expected to increase, compensating for slower growth in the contact center sector.
“We see foreign investors investing in Bonifacio Global City, Makati CBD, UP North Science and Technology Park, and Alabang,” said Radovan.
Provincial urban centers are also becoming more attractive for O&O services providers that are considering expansion.
“BPO companies that have been in the country for three to four years are looking at the provinces to leverage the large labor pools in these areas and to leverage the benefits of lower rates for office space and operating costs, and 23 of the 34 projects scheduled for completion by the end of 2008 are located outside the Makati and Ortigas CBDs,” said Radovan.
The emergence of alternate business districts has increased supply of comparable office space, giving O&O companies the choice of moving from Grade A high-rise buildings to new IT buildings with lower lease rates. “We expect O&O services providers to increasingly move to low-cost growth areas as rents in the Makati CBD stabilize in a range of P850 to P950 per square meter,” said Radovan.
For 2008, the outlook for Bacolod, Cebu, Davao, Pampanga, and Naga is promising. O&O investors have been active in these markets this year. Radovan projects that in 2009 and 2010, tier two and three locations such as Laoag, Tacloban, Tagbilaran, Tuguegarao, Kalibo, Legaspi, Roxas, Butuan, Puerto Princesa, Dipolog, Cotabato, and General Santos City further south will benefit from expansion of the O&O industry.
###
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2006 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; investment management; appraisal and valuation; and research and consulting. Please visit our Web site at www.cbre.com.ph.
The steady growth of the offshoring and outsourcing industry will continue to drive demand in the office sector with property developers eyeing locations outside the Metro Manila Central Business Districts for expansion, said CB Richard Ellis Philippines Vice Chairman Joey Radovan at Shared Services Week Asia 2008 in Singapore. Radovan, as head of the Global Corporate Services group, promoted the Philippines as an offshoring location to an audience that included Shell, Diageo, CITI Bank, Hewlett Packard and Rolls Royce.
The O&O industry in the Philippines expanded 50% annually from US$1.47 billion in 2004 to US$7 billion in 2007. In response to sustained demand for office space in the industry, 34 projects with a total floor area of 731,871 square meters are to be completed in 2008. At the end of 2007, call centers and other O&O companies occupied 1,080,000 square meters of space, a substantial increase from 750,000 square meters in 2006.
According to Radovan, investment in non-voice back office services is expected to increase, compensating for slower growth in the contact center sector.
“We see foreign investors investing in Bonifacio Global City, Makati CBD, UP North Science and Technology Park, and Alabang,” said Radovan.
Provincial urban centers are also becoming more attractive for O&O services providers that are considering expansion.
“BPO companies that have been in the country for three to four years are looking at the provinces to leverage the large labor pools in these areas and to leverage the benefits of lower rates for office space and operating costs, and 23 of the 34 projects scheduled for completion by the end of 2008 are located outside the Makati and Ortigas CBDs,” said Radovan.
The emergence of alternate business districts has increased supply of comparable office space, giving O&O companies the choice of moving from Grade A high-rise buildings to new IT buildings with lower lease rates. “We expect O&O services providers to increasingly move to low-cost growth areas as rents in the Makati CBD stabilize in a range of P850 to P950 per square meter,” said Radovan.
For 2008, the outlook for Bacolod, Cebu, Davao, Pampanga, and Naga is promising. O&O investors have been active in these markets this year. Radovan projects that in 2009 and 2010, tier two and three locations such as Laoag, Tacloban, Tagbilaran, Tuguegarao, Kalibo, Legaspi, Roxas, Butuan, Puerto Princesa, Dipolog, Cotabato, and General Santos City further south will benefit from expansion of the O&O industry.
###
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2006 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; investment management; appraisal and valuation; and research and consulting. Please visit our Web site at www.cbre.com.ph.
Alternatives for Equity Funding Available to Support Growth of O&O Companies
To facilitate expansion plans, local offshoring and outsourcing companies have the option of equity funding through initial public offerings and other means, an industry spokesperson said.
“Many O&O companies are planning to expand their operations in the Philippines ,” said Oscar Sañez, chief executive officer of the Business Processing Association of the Philippines.
“And of course any expansion plan requires capital. Equity funding, through IPOs and other means, can be leveraged to support these strategic development initiatives.”
According to a survey BPA/P conducted with Outsource2Philippines, 65 percent of 81 respondents—executives of companies in the local O&O industry—are considering options for equity funding to fuel expansion plans. The majority of respondents hope to generate between PHP100 million to PHP500 million in investment capital, either through private placement, venture capital, initial public offering, or angel investment.
“This data clearly shows that the idea of accessing equity funding is being considered by a significant number of industry players,” said Sañez. “Accelerating growth through equity funding will benefit the industry,” he said.
By 2010, BPA/P’s O&O industry roadmap projects that the Philippines will capture 10 percent of the global O&O market with revenues of US$12 billion. “Naturally, our chances of reaching and exceeding that goal will increase if local services providers expand quickly.” said Sañez. “Equity funding can play a core role in providing the resources to expand.”
BPA/P and O2P, in association with the Philippine Stock Exchange (PSE), will present a senior executive business briefing on equity funding September 18, 2008, from 7:30 am to 10:30 am, at the Makati Shangri-la Hotel. Entitled, “On the Road to Going Public, the forum will focus on equity funding alternatives for companies in the O&O industry. Aside from industry executives, delegates from the finance, legal, and investment sectors are also expected to attend the briefing.
On the Road to Going Public is sponsored by ExcelAsia, ATR KimEng Capital Partners, and TeamAsia. Aside from Sañez, other confirmed speakers for the event include Frank Holz, CEO, O2P; Atty. Francis Lim, president, PSE; Luz Lorenzo, regional economist, ATR-KimEng Securities Inc.; Joey Gurango, chief executive officer, Gurango Software; and Rainerio “Bong” Borja, president, PeopleSupport Philippines Inc.
“Many O&O companies are planning to expand their operations in the Philippines ,” said Oscar Sañez, chief executive officer of the Business Processing Association of the Philippines.
“And of course any expansion plan requires capital. Equity funding, through IPOs and other means, can be leveraged to support these strategic development initiatives.”
According to a survey BPA/P conducted with Outsource2Philippines, 65 percent of 81 respondents—executives of companies in the local O&O industry—are considering options for equity funding to fuel expansion plans. The majority of respondents hope to generate between PHP100 million to PHP500 million in investment capital, either through private placement, venture capital, initial public offering, or angel investment.
“This data clearly shows that the idea of accessing equity funding is being considered by a significant number of industry players,” said Sañez. “Accelerating growth through equity funding will benefit the industry,” he said.
By 2010, BPA/P’s O&O industry roadmap projects that the Philippines will capture 10 percent of the global O&O market with revenues of US$12 billion. “Naturally, our chances of reaching and exceeding that goal will increase if local services providers expand quickly.” said Sañez. “Equity funding can play a core role in providing the resources to expand.”
BPA/P and O2P, in association with the Philippine Stock Exchange (PSE), will present a senior executive business briefing on equity funding September 18, 2008, from 7:30 am to 10:30 am, at the Makati Shangri-la Hotel. Entitled, “On the Road to Going Public, the forum will focus on equity funding alternatives for companies in the O&O industry. Aside from industry executives, delegates from the finance, legal, and investment sectors are also expected to attend the briefing.
On the Road to Going Public is sponsored by ExcelAsia, ATR KimEng Capital Partners, and TeamAsia. Aside from Sañez, other confirmed speakers for the event include Frank Holz, CEO, O2P; Atty. Francis Lim, president, PSE; Luz Lorenzo, regional economist, ATR-KimEng Securities Inc.; Joey Gurango, chief executive officer, Gurango Software; and Rainerio “Bong” Borja, president, PeopleSupport Philippines Inc.
ExcelAsia Taps Bacolod as the Next Wave BPO Hub
ExcelAsia, a rapidly growing HR solutions provider, recently tapped Bacolod as one of the next wave cities to emerge as a Business Process Outsourcing hub. As plans of expansion rolled out, ExcelAsia chose to position its first new site this year in Bacolod and formally opened it this September.
Bacolod was identified by the Philippine Cities Competitiveness Ranking Project as one of the most competitive cities in the country in terms of infrastructure, business potential, and overall quality of life. Also this year, the Institute for Development and Economic Analysis Inc., or Idea, also cited Bacolod in its Outsourcing Study as one of the best alternative locations to expand outsourced services.
With clients such as Teletech and Convergys operating in Bacolod, ExcelAsia expects to train approximately 300 call center near-hires every month in this new facility. ExcelAsia provides free call center training for applicants certified as “near-hires” by potential employers. Near-hires are applicants who require remedial training to qualify for employment.
According to ExcelAsia President Rita Trillo-Ugarte, the new Bacolod site will serve as one of their chief offices strategically situated within the Mindanao region. Prior to this, ExcelAsia already positioned its training and recruitment operations in Cebu and in Makati City.
“To provide for crucial ramp-ups happening in our BPO clients, ExcelAsia has positioned itself to be within our clients’ reach.” Trillo-Ugarte said. “Our expansion plan is also our way of bringing more jobs to Filipinos who wish to start their career in this industry.”
ExcelAsia is accredited by TESDA to provide training services under PGMA’s Training for Work Scholarship Program. The program provides free skills training for Filipino job-seekers who wish to work in the BPO industry. With a hiring rate of 80% after training, ExcelAsia brings their free training service to Bacolod to leverage call center skills among its potential hires.
Trillo-Ugarte also said that her company’s nationwide expansion plan demonstrates the success ExcelAsia has attained since beginning operations in 2005. “We have consistently exceeded our year-on-year targets from our first year of operation,” Trillo-Ugarte said. “Later this year, we also plan to increase our capacity in the Cebu site and also plan to open a facility in Baguio.”
###
About ExcelAsia
ExcelAsia provides industry-leading Human Resources Solutions to more than 30 multinational companies in the Philippines. The firm is staffed by training and recruitment experts who provide end-to-end Human Resource solutions: sourcing and recruitment, executive search and business consultancy, and employee training and development. ExcelAsia is a professional and reliable service-oriented company that services the growing HR needs of Contact Centers and other Business Process Outsourcing sectors. At present, ExcelAsia is headquartered in Manila with offices in Cebu, Bacolod and Alabang. It has trained and deployed over 16,000 Filipino jobseekers.
Bacolod was identified by the Philippine Cities Competitiveness Ranking Project as one of the most competitive cities in the country in terms of infrastructure, business potential, and overall quality of life. Also this year, the Institute for Development and Economic Analysis Inc., or Idea, also cited Bacolod in its Outsourcing Study as one of the best alternative locations to expand outsourced services.
With clients such as Teletech and Convergys operating in Bacolod, ExcelAsia expects to train approximately 300 call center near-hires every month in this new facility. ExcelAsia provides free call center training for applicants certified as “near-hires” by potential employers. Near-hires are applicants who require remedial training to qualify for employment.
According to ExcelAsia President Rita Trillo-Ugarte, the new Bacolod site will serve as one of their chief offices strategically situated within the Mindanao region. Prior to this, ExcelAsia already positioned its training and recruitment operations in Cebu and in Makati City.
“To provide for crucial ramp-ups happening in our BPO clients, ExcelAsia has positioned itself to be within our clients’ reach.” Trillo-Ugarte said. “Our expansion plan is also our way of bringing more jobs to Filipinos who wish to start their career in this industry.”
ExcelAsia is accredited by TESDA to provide training services under PGMA’s Training for Work Scholarship Program. The program provides free skills training for Filipino job-seekers who wish to work in the BPO industry. With a hiring rate of 80% after training, ExcelAsia brings their free training service to Bacolod to leverage call center skills among its potential hires.
Trillo-Ugarte also said that her company’s nationwide expansion plan demonstrates the success ExcelAsia has attained since beginning operations in 2005. “We have consistently exceeded our year-on-year targets from our first year of operation,” Trillo-Ugarte said. “Later this year, we also plan to increase our capacity in the Cebu site and also plan to open a facility in Baguio.”
###
About ExcelAsia
ExcelAsia provides industry-leading Human Resources Solutions to more than 30 multinational companies in the Philippines. The firm is staffed by training and recruitment experts who provide end-to-end Human Resource solutions: sourcing and recruitment, executive search and business consultancy, and employee training and development. ExcelAsia is a professional and reliable service-oriented company that services the growing HR needs of Contact Centers and other Business Process Outsourcing sectors. At present, ExcelAsia is headquartered in Manila with offices in Cebu, Bacolod and Alabang. It has trained and deployed over 16,000 Filipino jobseekers.
Mapfre Insular Ortigas Exceeds Sales Target
Mapfre Insular announced that its Ortigas branch achieved 103 percent of its sales target as of August 2008.
The announcement was made as Mapfre Insular recognized outstanding sales performance in its Ortigas and Quezon City branches as part of its annual La Visita del Presidente program recently.
Each year, Mapfre Insular president and CEO Enrique Clemente III visits the company’s 11 branches in Luzon, Visayas, and Mindanao. The branch visit initiative is undertaken in fulfillment of the company’s mission of promoting professional development and acknowledging its agents as indispensable partners in attaining success.
During the Ortigas and Quezon City visits, plans to merge the two branches were announced. Operations for the two branches will be consolidated at the Ortigas branch next year. Clemente noted that as of August 31, the Ortigas branch has exceeded its sales target, achieving 103% of its production goal and exhibiting a 19 percent increase over last year. The merged Quezon City-Ortigas branch will have a combined annual premium target of more than P150 million.
“2008 has been a relatively good year for the company and we hope to end the year with premium production of over P1.4 billion. Our estimated year-end bottom line will be about 17 percent better than last year,” Clemente said.
“The very good and stable performance of the company is a result of the quality business our people bring in. The success of the company lies in its people--its employees and agents.”
Mapfre Insular currently ranks 3rd in terms of paid up capital and net income, and 5th in terms of premiums earned as of August 4 this year among non-life insurance companies operating in the Philippines according to the Philippine Insurance Commission.
The announcement was made as Mapfre Insular recognized outstanding sales performance in its Ortigas and Quezon City branches as part of its annual La Visita del Presidente program recently.
Each year, Mapfre Insular president and CEO Enrique Clemente III visits the company’s 11 branches in Luzon, Visayas, and Mindanao. The branch visit initiative is undertaken in fulfillment of the company’s mission of promoting professional development and acknowledging its agents as indispensable partners in attaining success.
During the Ortigas and Quezon City visits, plans to merge the two branches were announced. Operations for the two branches will be consolidated at the Ortigas branch next year. Clemente noted that as of August 31, the Ortigas branch has exceeded its sales target, achieving 103% of its production goal and exhibiting a 19 percent increase over last year. The merged Quezon City-Ortigas branch will have a combined annual premium target of more than P150 million.
“2008 has been a relatively good year for the company and we hope to end the year with premium production of over P1.4 billion. Our estimated year-end bottom line will be about 17 percent better than last year,” Clemente said.
“The very good and stable performance of the company is a result of the quality business our people bring in. The success of the company lies in its people--its employees and agents.”
Mapfre Insular currently ranks 3rd in terms of paid up capital and net income, and 5th in terms of premiums earned as of August 4 this year among non-life insurance companies operating in the Philippines according to the Philippine Insurance Commission.
Strategic Tools essential to Drive Growth, Says JDA Software Country Manager
Soaring oil prices leading to increased commodity and service costs across the board and intense competition are forcing Philippine businesses to rapidly improve their capability for gauging customer demand and delivering products and services more cost-effectively when and where they are needed, the top Philippine executive of a global software company said.
“Companies are focusing on demand forecasting, planning and optimization of their supply chains, said JDA Software Philippines country manager Cherokee Chamorro. “Given increased competition, rising costs, and other macro-economic factors, Philippine businesses are telling us their key challenge is to predict customer demand in the most accurate and timely manner possible, then execute supply chain processes to meet demand as efficiently as possible.”
The company’s solutions provide “the ability for retailers and manufacturers to segment customers and territories based on actual buying behavior. This provides the capability to forecast demand based on basic demographic and geographic attributes, actual historical sales information, current market research data, and forward-looking market trends.” Chamorro said.
“Our solutions provide retailers and manufacturers the means to achieve their profit and merchandising objectives through optimal inventory and service levels. Our customers typically experience significant increases in market share as a result. Another benefit is lower inventory of slow-moving products by as much as 20% to 70% while increasing service levels,” Chamorro said.
According to Chamorro, JDA has demonstrated these capabilities with major clients through Asia Pacific and is now working with major Philippine companies to provide the same benefits.
Arun Grupta, CIO of HyperCITY, a member of India ’s retail giant Shopper’s Stop Group, recently explained the benefits his company experienced. "Before we implemented JDA’s Allocation & Replenishment solutions, it was an experiment for us to understand what customers would buy. For example, we closely evaluated our grocery products to determine what kind of categories would sell and which would not. We found that the JDA solutions are able to provide information that helps us plan our category mix a lot more effectively. As a result of better business decisions driven by the JDA solutions, some of the categories we offered two years back have been replaced by newer, better-selling categories," he said.
"Precise inventory planning is essential to HyperCITY's continued success. In the retail and food business, availability of the right SKU in the right quantity on the shelf is imperative. When the ordering is based on guesswork rather than statistics, the result is excess inventory or empty shelves. This inventory holding cost can adversely impact profitability. Additional stock also means that available space to hold the stock is at a premium." Arun said.
JDA solutions are used by more than 5,550 retailers and manufacturers of all sizes internationally, according to Chamorro. Eight of the Philippines top 10 retailers use JDA’s Merchandise Management System to integrate point-of-sale and enterprise financial systems.
###
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results – fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably.
“Companies are focusing on demand forecasting, planning and optimization of their supply chains, said JDA Software Philippines country manager Cherokee Chamorro. “Given increased competition, rising costs, and other macro-economic factors, Philippine businesses are telling us their key challenge is to predict customer demand in the most accurate and timely manner possible, then execute supply chain processes to meet demand as efficiently as possible.”
The company’s solutions provide “the ability for retailers and manufacturers to segment customers and territories based on actual buying behavior. This provides the capability to forecast demand based on basic demographic and geographic attributes, actual historical sales information, current market research data, and forward-looking market trends.” Chamorro said.
“Our solutions provide retailers and manufacturers the means to achieve their profit and merchandising objectives through optimal inventory and service levels. Our customers typically experience significant increases in market share as a result. Another benefit is lower inventory of slow-moving products by as much as 20% to 70% while increasing service levels,” Chamorro said.
According to Chamorro, JDA has demonstrated these capabilities with major clients through Asia Pacific and is now working with major Philippine companies to provide the same benefits.
Arun Grupta, CIO of HyperCITY, a member of India ’s retail giant Shopper’s Stop Group, recently explained the benefits his company experienced. "Before we implemented JDA’s Allocation & Replenishment solutions, it was an experiment for us to understand what customers would buy. For example, we closely evaluated our grocery products to determine what kind of categories would sell and which would not. We found that the JDA solutions are able to provide information that helps us plan our category mix a lot more effectively. As a result of better business decisions driven by the JDA solutions, some of the categories we offered two years back have been replaced by newer, better-selling categories," he said.
"Precise inventory planning is essential to HyperCITY's continued success. In the retail and food business, availability of the right SKU in the right quantity on the shelf is imperative. When the ordering is based on guesswork rather than statistics, the result is excess inventory or empty shelves. This inventory holding cost can adversely impact profitability. Additional stock also means that available space to hold the stock is at a premium." Arun said.
JDA solutions are used by more than 5,550 retailers and manufacturers of all sizes internationally, according to Chamorro. Eight of the Philippines top 10 retailers use JDA’s Merchandise Management System to integrate point-of-sale and enterprise financial systems.
###
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results – fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution, and optimization solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably.
Saturday, September 13, 2008
Review of deployment guidelines for Canada -Recruiters' Group
Federated Associations of Manpower Exporters, the umbrella group of ten associations of licensed recruitment agencies serving country-specific labor markets, is urging Labor Secretary Marianito Roque to undertake a review of the guidelines for the deployment of overseas workers to Canada.
In a letter to Roque coursed through Undersecretary for Employment Rosalinda Baldoz, the federation thru its president Eduardo Mahiya said that at a recent meeting held by several top-deploying Philippine recruitment agencies and a delegation of Canadian employers from the province of Alberta, it was learned that the no placement fee policy for Canada, embodied in POEA Memorandum Circular No. 3, Series of 2007, does not apply to Alberta.
“Employers from Alberta clarified that the no placement fee policy applies only to the “Red Seal” which refer to engineers, welders and other highly-technical staff whose recruitment and processing expense are paid by them (employers), Mahiya said. “But for lower categories like service crew, janitor-cleaners, etc., the placement fee equivalent to one month salary should be adhered to.”
Mahiya explained that employers from Alberta will not defray the cost of placement and recruitment services for low- skill workers, and for that reason a large section of overseas Filipino workers will be deprived of employment opportunities in Canada if recruitment agencies are not allowed to collect the equivalent of one month salary in placement fee that will cover for the recruitment costs.
In a letter to Roque coursed through Undersecretary for Employment Rosalinda Baldoz, the federation thru its president Eduardo Mahiya said that at a recent meeting held by several top-deploying Philippine recruitment agencies and a delegation of Canadian employers from the province of Alberta, it was learned that the no placement fee policy for Canada, embodied in POEA Memorandum Circular No. 3, Series of 2007, does not apply to Alberta.
“Employers from Alberta clarified that the no placement fee policy applies only to the “Red Seal” which refer to engineers, welders and other highly-technical staff whose recruitment and processing expense are paid by them (employers), Mahiya said. “But for lower categories like service crew, janitor-cleaners, etc., the placement fee equivalent to one month salary should be adhered to.”
Mahiya explained that employers from Alberta will not defray the cost of placement and recruitment services for low- skill workers, and for that reason a large section of overseas Filipino workers will be deprived of employment opportunities in Canada if recruitment agencies are not allowed to collect the equivalent of one month salary in placement fee that will cover for the recruitment costs.
UP Expert Backs Imports of Bt Cotton Technology
A professor from the University of the Philippines Los-Baños has backed the importation of Bt cotton technology for local use.
Agnes Rola, dean of the UPLB-College of Public Affairs, says this technology will help save the dying cotton industry in the Philippines.
The technology is resistant to major pests, like cotton bollworm and pink bollworm, which plague the cotton industry.
By improving cotton product ion, the country can save up to $75 million per year.
A study was recently undertaken to determine whether the technology importation could benefit the Philippine cotton industry or not.
Research and development on Bt cotton is expected to cost P6 million. Results show that planting Bt cotton in the Philippines will significantly increase the yield and profit of farmers as those in other countries.
The effectiveness and efficiency of this technology have been proven and used in countries like China, Argentina, India, Mexico, South Africa and the US.
Commercialization of Bt cotton will not be costly if the regulatory compliance is not prohibitive and if the total area to be planted is not less than 5,000 hectares.
Return on investment is expected to be from 43 percent to 68 percent, a benefit cost ratio of 3.36 to 4.74, a net present value of P512 million to P574 million for a 20-year period. The payback period is five years.
For farmers, the decrease in production cost is expected to be P12,000 per hectare due to reduced use of pesticides and a 20 percent increase in yield.
Decrease pesticide use will also create a good impact in the environment.
Society in general will profit from this technology, from lower environmental risks, more farmer benefits and a profitable seed business.
The study says that to attain potential society benefits, Bt cotton must be planted above the required 5,000 hectares.
Incentives, according to Rola, should be used to encourage plantation type cotton farming. She added that local governments should regularize and monitor pests and diseases that may crop up for this new technology to be strengthened.
Cotton is the world's principal fiber used in almost half of manufactured textiles. The Philippines imports 95 percent of its requirements. Pest infestations also led to the decline of cotton area from 35,284 hectares in 1991 to 1,683 hectares in 1999. (biolife news service)
Agnes Rola, dean of the UPLB-College of Public Affairs, says this technology will help save the dying cotton industry in the Philippines.
The technology is resistant to major pests, like cotton bollworm and pink bollworm, which plague the cotton industry.
By improving cotton product ion, the country can save up to $75 million per year.
A study was recently undertaken to determine whether the technology importation could benefit the Philippine cotton industry or not.
Research and development on Bt cotton is expected to cost P6 million. Results show that planting Bt cotton in the Philippines will significantly increase the yield and profit of farmers as those in other countries.
The effectiveness and efficiency of this technology have been proven and used in countries like China, Argentina, India, Mexico, South Africa and the US.
Commercialization of Bt cotton will not be costly if the regulatory compliance is not prohibitive and if the total area to be planted is not less than 5,000 hectares.
Return on investment is expected to be from 43 percent to 68 percent, a benefit cost ratio of 3.36 to 4.74, a net present value of P512 million to P574 million for a 20-year period. The payback period is five years.
For farmers, the decrease in production cost is expected to be P12,000 per hectare due to reduced use of pesticides and a 20 percent increase in yield.
Decrease pesticide use will also create a good impact in the environment.
Society in general will profit from this technology, from lower environmental risks, more farmer benefits and a profitable seed business.
The study says that to attain potential society benefits, Bt cotton must be planted above the required 5,000 hectares.
Incentives, according to Rola, should be used to encourage plantation type cotton farming. She added that local governments should regularize and monitor pests and diseases that may crop up for this new technology to be strengthened.
Cotton is the world's principal fiber used in almost half of manufactured textiles. The Philippines imports 95 percent of its requirements. Pest infestations also led to the decline of cotton area from 35,284 hectares in 1991 to 1,683 hectares in 1999. (biolife news service)
Tineg Mayor Hits Denial of Security for Atty
Mayor Edwin Crisologo of Tineg, Abra has scored the denial by the Philippine National Police of police escorts for his counsel, Atty. Estelita Cordero, who represents him in administrative cases filed by the Sangguniang Panlalawigan of Abra.
Crisologo stressed that Cordero needs security due to death threats issued against her by his political enemies, some of whom have pressured the PNP leadership in Region 1 to deny his lawyer escorts from the 103rd Regional Mobile Group.
Cordero said that she only avails herself of escorts whenever she has to travel to Bangued to represent Crisologo.
"The need for security became even more pronounced after Mayor Crisologo's wife Brenda was shot and eventually died last year. The closest political ally of the mayor, Councilor Pedro Enon, was himself slain in Bangued," she clarified.
Cordero appealed to PNP Director General Avelino Razon and Deputy Director General Jesus Versoza to provide her with security and countermand the orders of provincial and regional PNP officers who had been pressured by Crisologo's political foes to strip her of any protection in Abra.
She noted that an Abra mayor had been pressuring PNP officers in both Region 1 and the Cordillera Administrative Region (CAR) to deny her request for security.
"This pressure is extraordinary considering that Crisologo is the only mayor who is at odds with a political clan that wants to control all of Abra. They want no opposition at all and they want to control Tineg, now the object of desire by big interests that seek mining and logging concessions. This political clan wants Crisologo out of the picture and the only way to do it is to rid him of his counsel and eventually oust him from office by charging him with a variety of offenses," Cordero explained.
Tineg is the largest town in Abra in terms of territory and enjoys the biggest internal revenue allotment. It has huge potential for mining and other industries even as its population is small.
Cordero said Crisologo has been winning the cases filed against him by his detractors, and this is probably the reason why they want to get rid of me.
On the other hand, Crisologo stressed that he would continue to oppose the reign of terror in Abra and fight for justice, particularly for his wife who was slain by a hired gunman, his uncle, Pedro Enon, who was his closest adviser.
Cordero also slammed the involvement of top PNP officials in CAR for the denial of her request for security at a time when she needs it to ensure that the rights of her client are and respected by the Sangguniang Panlalawigan of Abra.
Crisologo stressed that Cordero needs security due to death threats issued against her by his political enemies, some of whom have pressured the PNP leadership in Region 1 to deny his lawyer escorts from the 103rd Regional Mobile Group.
Cordero said that she only avails herself of escorts whenever she has to travel to Bangued to represent Crisologo.
"The need for security became even more pronounced after Mayor Crisologo's wife Brenda was shot and eventually died last year. The closest political ally of the mayor, Councilor Pedro Enon, was himself slain in Bangued," she clarified.
Cordero appealed to PNP Director General Avelino Razon and Deputy Director General Jesus Versoza to provide her with security and countermand the orders of provincial and regional PNP officers who had been pressured by Crisologo's political foes to strip her of any protection in Abra.
She noted that an Abra mayor had been pressuring PNP officers in both Region 1 and the Cordillera Administrative Region (CAR) to deny her request for security.
"This pressure is extraordinary considering that Crisologo is the only mayor who is at odds with a political clan that wants to control all of Abra. They want no opposition at all and they want to control Tineg, now the object of desire by big interests that seek mining and logging concessions. This political clan wants Crisologo out of the picture and the only way to do it is to rid him of his counsel and eventually oust him from office by charging him with a variety of offenses," Cordero explained.
Tineg is the largest town in Abra in terms of territory and enjoys the biggest internal revenue allotment. It has huge potential for mining and other industries even as its population is small.
Cordero said Crisologo has been winning the cases filed against him by his detractors, and this is probably the reason why they want to get rid of me.
On the other hand, Crisologo stressed that he would continue to oppose the reign of terror in Abra and fight for justice, particularly for his wife who was slain by a hired gunman, his uncle, Pedro Enon, who was his closest adviser.
Cordero also slammed the involvement of top PNP officials in CAR for the denial of her request for security at a time when she needs it to ensure that the rights of her client are and respected by the Sangguniang Panlalawigan of Abra.
Tuesday, September 09, 2008
Symposium on Outsourcing Sector Set on September
Local IT heroes to speak on equity funding alternatives for local startups
Outsource2Philippines and Business Processing Association of the Philippines announced that an executive business briefing, “On the Road to Going Public”, will take place September 18, 2008, from 7:30 am to 10:30 am, at the Makati Shangri-la Hotel. Organized in association with the Philippine Stock Exchange (PSE), the forum will focus on equity funding alternatives for companies in the Offshoring and Outsourcing industry.
On the Road to Going Public is a joint undertaking by BPA/P and O2P to support development of the Philippine O&O industry. The forum will feature presentations by high-level executives representing major industry players, including PeopleSupport Philippines Inc. president Rainerio “Bong” Borja and Gurango Software CEO Joey Gurango. Investment experts such as ATR-KimEng Securities Inc. regional economist Luz Lorenzo are also featured.
Considered a driving force behind the massive growth of the call center sector in the Philippines , Borja is a highly respected figure in the O&O industry. A member of BPA/P’s Board of Trustees, he is president of PeopleSupport Philippines Inc.—a fully-owned subsidiary of one of the world’s leading BPO companies, PeopleSupport Inc.
Last month, PeopleSupport Philippines announced that it is being acquired by Indian business conglomerate Essar Group for US$250 million. The company is scheduled to merge with Essar Group’s Aegis BPO, combining PeopleSupport Philippines ’ seven facilities (7,000 seats) with Aegis’ 25 facilities (14,000 seats).
Borja will participate in the briefing as an industry panelist. He played a major role in PeopleSupport’s initial public offering on the NASDAQ exchange in the United States . Borja is also well-versed with local and regional markets and is a member of the US-ASEAN Business Council and the Makati Business Development Association. He travels extensively in support of PeopleSupport’s global operations.
Software entrepreneur Joey Gurango will discuss his experience founding and preparing companies to go public. Gurango Software is an award-winning Microsoft Dynamics partner that develops and distributes products for the Microsoft Dynamics ecosystem. Founded in 2003, the company has developed into a multinational software company, with offices in the US , Singapore, Australia, and South Africa aside from its local headquarters in the Philippines .
Lorenzo is an economist for ATR-KimEng Securities Inc.—a subsidiary of Philippine-based investment holding company, ATR KimEng Financial Corporation. ATR-KimEng Securities facilitates research, sales, execution capabilities for its institutional and retail clients worldwide. The company is considered the leading Filipino-controlled stock brokerage firm. In 2006, it was ranked sixth in total trading volume in the PSE.
O2P and BPA/P officials said the On the Road to Going Public breakfast briefing will serve as a venue for O&O company executives to acquaint themselves with the rules governing and processes involved in acquiring equity funding.
Other confirmed speakers for the event include Oscar Sañez, CEO, BPA/P; Frank Holz, CEO, O2P; Atty. Francis Lim, president, PSE; Karen Batungbacal, president, ICT Group Philippines; James Donovan, CEO, ADEC Solutions; Roberto Juanchito Dispo, chairman, First Metro Securities; Varvie Roldan, office of the general counsel, PSE; and Justina Callangan, corporate finance department director, Securities and Exchange Commission.
Outsource2Philippines and Business Processing Association of the Philippines announced that an executive business briefing, “On the Road to Going Public”, will take place September 18, 2008, from 7:30 am to 10:30 am, at the Makati Shangri-la Hotel. Organized in association with the Philippine Stock Exchange (PSE), the forum will focus on equity funding alternatives for companies in the Offshoring and Outsourcing industry.
On the Road to Going Public is a joint undertaking by BPA/P and O2P to support development of the Philippine O&O industry. The forum will feature presentations by high-level executives representing major industry players, including PeopleSupport Philippines Inc. president Rainerio “Bong” Borja and Gurango Software CEO Joey Gurango. Investment experts such as ATR-KimEng Securities Inc. regional economist Luz Lorenzo are also featured.
Considered a driving force behind the massive growth of the call center sector in the Philippines , Borja is a highly respected figure in the O&O industry. A member of BPA/P’s Board of Trustees, he is president of PeopleSupport Philippines Inc.—a fully-owned subsidiary of one of the world’s leading BPO companies, PeopleSupport Inc.
Last month, PeopleSupport Philippines announced that it is being acquired by Indian business conglomerate Essar Group for US$250 million. The company is scheduled to merge with Essar Group’s Aegis BPO, combining PeopleSupport Philippines ’ seven facilities (7,000 seats) with Aegis’ 25 facilities (14,000 seats).
Borja will participate in the briefing as an industry panelist. He played a major role in PeopleSupport’s initial public offering on the NASDAQ exchange in the United States . Borja is also well-versed with local and regional markets and is a member of the US-ASEAN Business Council and the Makati Business Development Association. He travels extensively in support of PeopleSupport’s global operations.
Software entrepreneur Joey Gurango will discuss his experience founding and preparing companies to go public. Gurango Software is an award-winning Microsoft Dynamics partner that develops and distributes products for the Microsoft Dynamics ecosystem. Founded in 2003, the company has developed into a multinational software company, with offices in the US , Singapore, Australia, and South Africa aside from its local headquarters in the Philippines .
Lorenzo is an economist for ATR-KimEng Securities Inc.—a subsidiary of Philippine-based investment holding company, ATR KimEng Financial Corporation. ATR-KimEng Securities facilitates research, sales, execution capabilities for its institutional and retail clients worldwide. The company is considered the leading Filipino-controlled stock brokerage firm. In 2006, it was ranked sixth in total trading volume in the PSE.
O2P and BPA/P officials said the On the Road to Going Public breakfast briefing will serve as a venue for O&O company executives to acquaint themselves with the rules governing and processes involved in acquiring equity funding.
Other confirmed speakers for the event include Oscar Sañez, CEO, BPA/P; Frank Holz, CEO, O2P; Atty. Francis Lim, president, PSE; Karen Batungbacal, president, ICT Group Philippines; James Donovan, CEO, ADEC Solutions; Roberto Juanchito Dispo, chairman, First Metro Securities; Varvie Roldan, office of the general counsel, PSE; and Justina Callangan, corporate finance department director, Securities and Exchange Commission.
DOLE forms team to implement labor agreements with Canada
Department of Labor and Employment has begun efforts for the implementation of the labor agreements with western Canadian provinces, that will provide Filipino workers greater access to employment opportunities in Canada.
Labor and Employment Secretary Marianito D. Roque issued Administrative Order No. 303, series of 2008, creating a composite team tasked to work out mechanisms for the implementation of the memoranda of understanding which the DOLE entered into with the Canadian provinces of Saskatchewan, British Columbia, and Manitoba to strengthen areas of cooperation with the Philippines in the employment and deployment of Filipino workers to these parts of Canada.
The DOLE forged the MOUs with the provincial governments of Saskatchewan in December 2007 and British Columbia and Manitoba early this year. It is scheduled to enter into a similar agreement with the Canadian province of Alberta this month.
Roque said the DOLE team has been directed to address urgent concerns affecting the employment of Filipino workers to Canada in areas provided for in the MOUs such as ethical recruitment, human resource development, training and credentials recognition, and workers protection.
The team is headed by Undersecretary Luzviminda Padilla with technical representatives from the Technical Education and Skills Development Authority, Overseas Workers Welfare Administration, Philippine Overseas Employment Administration, and DOLE Canadian Desk as members.
He said the MOUs specifically provide for an ethical, orderly, and expeditious recruitment and deployment of overseas Filipino workers to Canada, non-collection of placement fees, protection of OFWs' rights and welfare, and for the provinces to encourage employers to support HRD efforts for OFWs and the reintegration of returning OFWs to the Philippines.
He added that the DOLE team, pursuant to the MOUs, shall exert efforts towards the setting up of the Philippines-Canada joint consultative council or working committee in a bid to ensure the implementation of the MOUs’ provisions.
“The successful implementation of the MOUs would pave the way for many skilled OFWs to find better-paying and more quality employment that ensures ample protection of their rights and welfare in Canada,” the DOLE Chief said.
He said the team shall specifically discuss recruitment guidelines with the respective government representatives of the Canadian provinces particularly on procedures and requirements for hiring workers under the temporary workers and the provincial nominee programs involving government and private employers in Canada.
The team shall also explore talks on HRD to provide for Filipino-Canadian cooperation in skills training and upgrading of Filipino workers, Roque said adding the DOLE has already drafted an HRD framework upon which the talks would be based. The DOLE team shall likewise endeavor to address kinks in credential recognition affecting Filipino nurses and other professionals and trades people. It shall also determine each province’s skills requirement to facilitate skills matching, training, and employment of Filipino workers in the provinces of Canada.
The team shall also explore talks on HRD to provide for Filipino-Canadian cooperation in skills training and upgrading of Filipino workers, Roque said adding the DOLE has already drafted an HRD framework upon which the talks would be based. The DOLE team shall likewise endeavor to address kinks in credential recognition affecting Filipino nurses and other professionals and trades people. It shall also determine each province’s skills requirement to facilitate skills matching, training, and employment of Filipino workers in the provinces of Canada.
Talks on skills certification and training program of Saskatchewan and training collaboration with other western Canadian provinces shall also be explored. At the same time, the DOLE team shall start discussions on the extension of the MOU with Saskatchewan, which is due to expire on December 2008.
ExcelAsia Bares Graduates of Near-hire Contact Center Training Program
Photo shows (from left ) John Milton Templo, Communications Trainer, ExcelAsia; Jamie Wilson, Lead Trainer, ExcelAsia; Rita Trillo-Ugarte, President, ExcelAsia; Augusto Syjuco Jr., Director-General, Technical Education and Skills Development Authority; Philippine President Gloria Macapagal-Arroyo; Amado Bagatsing, Manila 5th District Representative; Trisha Bonoan-David, Manila 4th District Representative.
Human resource solutions firm ExcelAsia was recognized by President Gloria Macapagal-Arroyo when the company presented successful graduates trained under a government program that subsidizes training for “near-hire” employment candidates seeking jobs in the fast-growing business process outsourcing industry.
ExcelAsia’s near-hire contact center training program is being delivered with the assistance of the president’s Training for Work Scholarship Program.
The program is administered by the Technical Education and Skills Development Authority. The recognition program was conducted at the Rizal Hall of Malacañang Palace as part of TESDA’s 14th anniversary celebration. It also served as a thanksgiving event for graduates.
A total of 370 successful graduates attended the event, 50 from ExcelAsia. Each graduate received a course completion certificate from TESDA Director-General Augusto Syjuco Jr. Syjuco said that the training program has provided scholarship assistance to a variety of technical sectors, including the contact center industry.
As of June 2008, Syjuco said that approximately 97,000 trainees have benefited from the president’s Training for Work Scholarship Program and have subsequently found gainful employment both locally and abroad. The scholarship program was launched in 2006.
Strict requirements must be met in order to receive TESDA certification for the program. Partner institutions must maintain a 40% hiring rate after trainees that complete their training courses. ExcelAsia consistently exceeds that rate, providing a hiring rate of 70 percent to 80 percent for their graduate trainees. For the contact center industry, vouchers are distributed by TESDA and the Business Processing Association of the Philippines to certified partner institutions.
ExcelAsia trains around 400-500 call center near-hires each month. Near-hires are applicants who demonstrate potential but require additional training to qualify for a job. ExcelAsia works to bridge the gap between the potential of these near-hires and successful job placement. As of June this year, an estimated 11 percent of the total graduates from the government-subsidized initiative come from ExcelAsia.
“This program is truly substantial and everyday, we see an increasing number of Filipinos that the government and ExcelAsia are able to assist in their efforts to gain employment.” ExcelAsia president Rita Trillo-Ugarte said.
“It also motivates us to keep on coming up with new ways in which we, as a private company, can help open up more job opportunities for the Filipino people.”
###
About ExcelAsiaExcelAsia provides industry-leading Human Resources Solutions to more than 30 multinational companies in the Philippines. The firm is staffed by training and recruitment experts who provide end-to-end Human Resource solutions: sourcing and recruitment, executive search and business consultancy, and employee training and development. ExcelAsia is a professional and reliable service-oriented company that services the growing HR needs of Contact Centers and other Business Process Outsourcing sectors. At present, ExcelAsia is headquartered in Manila with offices in Cebu, Bacolod and Alabang. It has trained and deployed over 16,000 Filipino jobseekers.
Saturday, September 06, 2008
Economist Says Crisis Stretching OFWs’ Ability to Send Money
By Jeremaiah Opiniano
A US-generated financial crisis is testing overseas Filipino workers’ ability to send cash home, an economist said using government data on remittances.
“If OFWs persist in sending more money, it will not be physically sustainable for them,” Alvin Ang told the OFW Journalism Consortium before monetary authorities reported on August 15 that OFWs sent home a record $1.5 billion in June.
Bangko Sentral ng Pilipinas linked the 30-percent year-on-year remittance growth rate to an increase in the number of Filipinos who left for work abroad from January to June.
BSP cited government recorded more than 600,000 Filipino workers left the country using official channels during the first six months of the year. That figure just above to the total number of oversea contract workers deployed in 1991: 615,019.
While acknowledging the increasing rate of remittance from these Filipinos, Ang warns that remittance flows especially from the United States and the Kingdom of Saudi Arabia are entering a “plateau.”
Using year-on-year total formally-sent cash remittances on a six-month period ending May, Ang said if the growth rate of remittances is below and up to three percent, “that for me is a plateau.”
He cited as example cash from land-based OFWs in the US grew by less than a percent (0.66) to $2.462 billion in the first six months ending May as against the same six-month period in 2007 of $2.446 billion.
Likewise, Ang noted money credited as coming from land-based OFWs in Saudi Arabia in the five-month period ending May this year hit $528.013 million. That amount represents a 1.12 percent growth rate from the $522.156 million sent from Saudi Arabia in the first five months of last year.
While remittances from land-based Filipino workers in these major host countries still rose, Ang said growth rates year-on-year are “not significant increases”.
Even the Philippines’s total monthly remittances are either touching plateau levels or are experiencing negative growth rates, according to Ang (see related story “Monthly remittance data shows downward spikes”).
The country received $1.396 billion in December 2007 but the following month’s remittance declined by 9.52 percent to $1.264 billion and to $1.258 billion in February this year.
Ang said the declining rates may be due to several factors including US inflation and higher oil and commodities prices.He, however, said the effects on remittances from these economic aberrations are not immediate.
“Give it one to one-and-a-half years before we really feel the full effect.”
He noted that cash from OFWs in countries other than the US and Saudi Arabia have been contributing more to the growth rates and helping arrest the decline in cash flow.
Land-based OFWs in Singapore, for example, sent home $0.175 billion during the first five months, or an 81.98-percent growth year-on-year from $95.985 million in the same period last year.
Filipinos in Canada sent $0.46 billion during the first six months, achieving a year-on-year 70.65-percent growth rate.
Filipinos in Europe, such as Italy (22.11 percent growth rate), Germany (27.22 percent), and the United Kingdom (19.01), also saw their year-on-year five month remittance volumes grow (see Table 2).
ANG said his prognosis on the Philippines’s plateau-level remittance growth rates recalls a basic economic concept: the law of diminishing returns.
There will come a time that remittances from OFWs, whether it’s the overall total or the per-continent or per-country totals, “will go down somewhere,” he said.
Given the weakening dollar, World Bank economists Dilip Ratha and Sanket Mohapatra said rising inflation rate and oil and commodities prices “further (eroded) the purchasing power of remittances” received by Mexico, India, and the Philippines.
In particular, Ratha and Mohapatra noted that while Philippine remittances increased by nearly 50 percent between 2004 and 2007, “[a] large part of this increase has been simply to preserve the purchasing power of recipients since the Philippine peso appreciated by 33 percent against the US dollar.”
OFW remittance to the Philippines hit roughly $14.5 billion last year. It was at $8.5 billion in 2004.
After accounting for the peso’s appreciation and domestic inflation, Philippine remittances increased by only three percent [in the three years beginning 2004],” Ratha and Mohaptra wrote in Remittances Dispatch.
India’s and Mexico’s remittance growth rates after accounting for inflation were 13 and 19 percent, respectively.
While the effects of the world price adjustments are yet to sink in, Ang said he expects Filipinos in many countries would be sending lower amounts of money home.
For complete story and tables visit our site
A US-generated financial crisis is testing overseas Filipino workers’ ability to send cash home, an economist said using government data on remittances.
“If OFWs persist in sending more money, it will not be physically sustainable for them,” Alvin Ang told the OFW Journalism Consortium before monetary authorities reported on August 15 that OFWs sent home a record $1.5 billion in June.
Bangko Sentral ng Pilipinas linked the 30-percent year-on-year remittance growth rate to an increase in the number of Filipinos who left for work abroad from January to June.
BSP cited government recorded more than 600,000 Filipino workers left the country using official channels during the first six months of the year. That figure just above to the total number of oversea contract workers deployed in 1991: 615,019.
While acknowledging the increasing rate of remittance from these Filipinos, Ang warns that remittance flows especially from the United States and the Kingdom of Saudi Arabia are entering a “plateau.”
Using year-on-year total formally-sent cash remittances on a six-month period ending May, Ang said if the growth rate of remittances is below and up to three percent, “that for me is a plateau.”
He cited as example cash from land-based OFWs in the US grew by less than a percent (0.66) to $2.462 billion in the first six months ending May as against the same six-month period in 2007 of $2.446 billion.
Likewise, Ang noted money credited as coming from land-based OFWs in Saudi Arabia in the five-month period ending May this year hit $528.013 million. That amount represents a 1.12 percent growth rate from the $522.156 million sent from Saudi Arabia in the first five months of last year.
While remittances from land-based Filipino workers in these major host countries still rose, Ang said growth rates year-on-year are “not significant increases”.
Even the Philippines’s total monthly remittances are either touching plateau levels or are experiencing negative growth rates, according to Ang (see related story “Monthly remittance data shows downward spikes”).
The country received $1.396 billion in December 2007 but the following month’s remittance declined by 9.52 percent to $1.264 billion and to $1.258 billion in February this year.
Ang said the declining rates may be due to several factors including US inflation and higher oil and commodities prices.He, however, said the effects on remittances from these economic aberrations are not immediate.
“Give it one to one-and-a-half years before we really feel the full effect.”
He noted that cash from OFWs in countries other than the US and Saudi Arabia have been contributing more to the growth rates and helping arrest the decline in cash flow.
Land-based OFWs in Singapore, for example, sent home $0.175 billion during the first five months, or an 81.98-percent growth year-on-year from $95.985 million in the same period last year.
Filipinos in Canada sent $0.46 billion during the first six months, achieving a year-on-year 70.65-percent growth rate.
Filipinos in Europe, such as Italy (22.11 percent growth rate), Germany (27.22 percent), and the United Kingdom (19.01), also saw their year-on-year five month remittance volumes grow (see Table 2).
ANG said his prognosis on the Philippines’s plateau-level remittance growth rates recalls a basic economic concept: the law of diminishing returns.
There will come a time that remittances from OFWs, whether it’s the overall total or the per-continent or per-country totals, “will go down somewhere,” he said.
Given the weakening dollar, World Bank economists Dilip Ratha and Sanket Mohapatra said rising inflation rate and oil and commodities prices “further (eroded) the purchasing power of remittances” received by Mexico, India, and the Philippines.
In particular, Ratha and Mohapatra noted that while Philippine remittances increased by nearly 50 percent between 2004 and 2007, “[a] large part of this increase has been simply to preserve the purchasing power of recipients since the Philippine peso appreciated by 33 percent against the US dollar.”
OFW remittance to the Philippines hit roughly $14.5 billion last year. It was at $8.5 billion in 2004.
After accounting for the peso’s appreciation and domestic inflation, Philippine remittances increased by only three percent [in the three years beginning 2004],” Ratha and Mohaptra wrote in Remittances Dispatch.
India’s and Mexico’s remittance growth rates after accounting for inflation were 13 and 19 percent, respectively.
While the effects of the world price adjustments are yet to sink in, Ang said he expects Filipinos in many countries would be sending lower amounts of money home.
For complete story and tables visit our site
Lobby Groups Pin Hopes on Global Migration Talks
By Isagani dela Paz
FIFTEEN down, 15 organizations more to go, and the global conference on migration and development organizers remain optimistic these advocates can use the conference to lobby for greater protection for migrant workers."We're aiming to come up with recommendations na mapipilitan ang gobyerno na ma-consider [to pressure the government to consider] such recommendations", Second Global Forum on Migration and Development organizer Ildefonso Bagasao told the OFW Journalism Consortium.
There are now 15 groups representing the island groups of Luzon, Visayas and Mindanao for the second global forum that began in Brussels, Belgium last year.
There are 30 slots reserved for the Philippine civil society sector to the forum in October where they would join an expected 200 people representing CSOs around the world.
The POC subcommittee would choose nine more groups during the national consultation of nonprofit groups early October. Bagasao, who represents his group in the six-member group GFMD Philippine Organizing Committee sub-committee, is banking on the lobby strength of these groups to come up with "honest to goodness serious reform, especially for government to give more protection to migrant workers".
That is hoping against hope as it seems since a foreign affairs official has said in a press briefing there are "no negotiated outcomes" expected from the forum of government representatives.
"The approach is not to focus on remuneration of rights but on best practices; to identify what are the concerns," Foreign Affairs Undersecretary for Migrant Workers Affairs Esteban B. Conejos Jr. told reporters last May.
Conejos added they "expect countries to at least raise awareness [on migration and development]."
Conejos's candor reflects the GFMD framework that is based on the United Nations from which the forum's idea came from.The GFMD, to note, stemmed from a proposal for such venue by the UN Secretary General two years ago.
GFMD was formed, according to conference documents, solely "to address, in a transparent manner, the multi-dimensional aspects, opportunities and challenges related to international migration and its inter-linkages with development, to bring together government expertise from all regions, to enhance dialogue and cooperation and partnership and to foster practical and action-oriented outcomes at the national, regional and global levels."
GFMD is "voluntary, inter-governmental, non-binding, and informal consultative process open to all States Members and Observers of the UN."
While UN agencies and other international and regional bodies may be invited as observers, the forum "does not form part of the UN system."
The Philippines would be the first country in Asia to host such a forum. The archipelago would also be the first to allow a two-day consultation among CSOs, according to Guillermo Luz of the Ayala Foundation.
GFMD is a four-day event beginning with the CSO consultation October 27-28, then government officials October 29-30. Over-150 states are expected to have delegates to the inter-governmental event like the one held last year in Brussels.
Ayala Foundation heads the forum steering committee for the CSOs' participation; a task noted only in the Belgium forum last year as "appropriate arrangements".
According to documents from another Philippine Working Group on GFMD (PWG-GFMD), the forum "has become one of the principal international spaces in which governments discuss migration and development policy."
The PWG-GFMD says it is a coalition of CSOs in the Philippines that aims "to provide (an) avenue to engage in a genuine multi-stakeholder process to discuss the issues and challenges on the discourse of migration and development".
PWG-GFMD, which groups 25 organizations, also alleges that the forum is easing out other CSOs.
The GFMD, the group said, "has been very restrictive to participation by civil society".
"The GFMD is taking the course of examining migration policy only through the lens of economic development, without concern for the impact policies have on migrants."
Notably, the PWG-GFMD claims its convenor Migrant Forum in Asia initiated the island consultations where the nominees for Philippine participants will be made.
Luz denied the accusation that Ayala Foundation is excluding other groups.
"We're not easing out anybody; we're trying to make the process as inclusive as possible."
Luz explained that aside from maintaining a geographical balance, "we're also making sure we balance it [representation] among the major sectors concerned."
Bagasao said they are aware "there should be representation from as much as possible."
"All sectors –women, NGOs, unions, religious, seafarers' wives– we ensured were consulted and being consulted."
Luz added they are aware of a conference of CSOs parallel to the official civil society days programmed into the GFMD.
The PWG-GFMD described the official consultations October 27-28 as "very restrictive and will not allow the participation of a large number or range of civil society groups".
At last year's GFMD, more than 200 CSO representatives attended the Civil Society Day July 9 prior to the government-level discussions July 10 and 11.
"We're even encouraging such parallel consultation," Luz said.
Bagasao told the OFW Journalism Consortium the subcommittee is proposing allotting a time so that leaders of the parallel conference and the government discussion could meet.
"It's still in the drawing board but we're looking at something informal; like a solidarity night of sorts."
The forum comes at a time when migrant workers' money continue to make several economies, especially in developing countries, afloat as oil prices rampage and a credit crunch in the United States squeeze the money pipeline.
According to Dilip Ratha and Zhimei Xu of the World Bank, the flowing money could be even higher than official estimates.
"The true size of remittances, including unrecorded flows through formal and informal channels, is believed to be larger," the two said in their Migration and Remittances Factbook".
This year's GFMD, to note, considers remittances as just one of the assets of migrant workers that organizers deem should be tapped for development.
The last nine CSOs would be selected during the National Capital Region consultation on August 27 at the San Carlos Seminary. Meanwhile, six other Philippine CSO delegates will be chosen by the CSO Days Philippine Organizing Committee after the August 27 event.
FIFTEEN down, 15 organizations more to go, and the global conference on migration and development organizers remain optimistic these advocates can use the conference to lobby for greater protection for migrant workers."We're aiming to come up with recommendations na mapipilitan ang gobyerno na ma-consider [to pressure the government to consider] such recommendations", Second Global Forum on Migration and Development organizer Ildefonso Bagasao told the OFW Journalism Consortium.
There are now 15 groups representing the island groups of Luzon, Visayas and Mindanao for the second global forum that began in Brussels, Belgium last year.
There are 30 slots reserved for the Philippine civil society sector to the forum in October where they would join an expected 200 people representing CSOs around the world.
The POC subcommittee would choose nine more groups during the national consultation of nonprofit groups early October. Bagasao, who represents his group in the six-member group GFMD Philippine Organizing Committee sub-committee, is banking on the lobby strength of these groups to come up with "honest to goodness serious reform, especially for government to give more protection to migrant workers".
That is hoping against hope as it seems since a foreign affairs official has said in a press briefing there are "no negotiated outcomes" expected from the forum of government representatives.
"The approach is not to focus on remuneration of rights but on best practices; to identify what are the concerns," Foreign Affairs Undersecretary for Migrant Workers Affairs Esteban B. Conejos Jr. told reporters last May.
Conejos added they "expect countries to at least raise awareness [on migration and development]."
Conejos's candor reflects the GFMD framework that is based on the United Nations from which the forum's idea came from.The GFMD, to note, stemmed from a proposal for such venue by the UN Secretary General two years ago.
GFMD was formed, according to conference documents, solely "to address, in a transparent manner, the multi-dimensional aspects, opportunities and challenges related to international migration and its inter-linkages with development, to bring together government expertise from all regions, to enhance dialogue and cooperation and partnership and to foster practical and action-oriented outcomes at the national, regional and global levels."
GFMD is "voluntary, inter-governmental, non-binding, and informal consultative process open to all States Members and Observers of the UN."
While UN agencies and other international and regional bodies may be invited as observers, the forum "does not form part of the UN system."
The Philippines would be the first country in Asia to host such a forum. The archipelago would also be the first to allow a two-day consultation among CSOs, according to Guillermo Luz of the Ayala Foundation.
GFMD is a four-day event beginning with the CSO consultation October 27-28, then government officials October 29-30. Over-150 states are expected to have delegates to the inter-governmental event like the one held last year in Brussels.
Ayala Foundation heads the forum steering committee for the CSOs' participation; a task noted only in the Belgium forum last year as "appropriate arrangements".
According to documents from another Philippine Working Group on GFMD (PWG-GFMD), the forum "has become one of the principal international spaces in which governments discuss migration and development policy."
The PWG-GFMD says it is a coalition of CSOs in the Philippines that aims "to provide (an) avenue to engage in a genuine multi-stakeholder process to discuss the issues and challenges on the discourse of migration and development".
PWG-GFMD, which groups 25 organizations, also alleges that the forum is easing out other CSOs.
The GFMD, the group said, "has been very restrictive to participation by civil society".
"The GFMD is taking the course of examining migration policy only through the lens of economic development, without concern for the impact policies have on migrants."
Notably, the PWG-GFMD claims its convenor Migrant Forum in Asia initiated the island consultations where the nominees for Philippine participants will be made.
Luz denied the accusation that Ayala Foundation is excluding other groups.
"We're not easing out anybody; we're trying to make the process as inclusive as possible."
Luz explained that aside from maintaining a geographical balance, "we're also making sure we balance it [representation] among the major sectors concerned."
Bagasao said they are aware "there should be representation from as much as possible."
"All sectors –women, NGOs, unions, religious, seafarers' wives– we ensured were consulted and being consulted."
Luz added they are aware of a conference of CSOs parallel to the official civil society days programmed into the GFMD.
The PWG-GFMD described the official consultations October 27-28 as "very restrictive and will not allow the participation of a large number or range of civil society groups".
At last year's GFMD, more than 200 CSO representatives attended the Civil Society Day July 9 prior to the government-level discussions July 10 and 11.
"We're even encouraging such parallel consultation," Luz said.
Bagasao told the OFW Journalism Consortium the subcommittee is proposing allotting a time so that leaders of the parallel conference and the government discussion could meet.
"It's still in the drawing board but we're looking at something informal; like a solidarity night of sorts."
The forum comes at a time when migrant workers' money continue to make several economies, especially in developing countries, afloat as oil prices rampage and a credit crunch in the United States squeeze the money pipeline.
According to Dilip Ratha and Zhimei Xu of the World Bank, the flowing money could be even higher than official estimates.
"The true size of remittances, including unrecorded flows through formal and informal channels, is believed to be larger," the two said in their Migration and Remittances Factbook".
This year's GFMD, to note, considers remittances as just one of the assets of migrant workers that organizers deem should be tapped for development.
The last nine CSOs would be selected during the National Capital Region consultation on August 27 at the San Carlos Seminary. Meanwhile, six other Philippine CSO delegates will be chosen by the CSO Days Philippine Organizing Committee after the August 27 event.
Tuesday, September 02, 2008
Mapfre Insular Launches El Mundo
Mapfre Insular Insurance Corporation, the joint venture between Spain’s Mapfre Group and the Philippines’ Insular Life Assurance Co. Ltd. has launche “El Mundo”, a bi-monthly eNewsletter to enhance client interaction and as a token of appreciation for the continued support of their customers. Through “El Mundo” the Company hopes to reach around 50,000 of its clients.
“El Mundo” is our medium for reaching out to policyholders so we can continuously communicate with them. Through the eNewsletter our clients would have exclusive access to exciting events, seminars, freebies, give-aways and special discounts on select Mapfre Insular products or with partner business establishments.,” Mapfre Insular Marketing Support Manager, Mallou Lorenzo, said.
“All of these plus other upcoming surprises, and of course a regular dose of interesting feature articles with useful information will be available to our policyholders. This is our way of thanking our clients for their continued trust in the quality of Mapfre Insular’s services.”
Because Filipinos increasingly rely on the Internet for information—A.C. Nielsen estimates there will be 24 million Internet users before the end of the year—Mapfre will distribute El Mundo by e-mail, to reach their policyholders in a more convenient manner.
Subscriptions to El Mundo are free for Mapfre Insular policyholders and agents. The eNewsletter will be sent directly to the subscribers’ registered email addresses upon their consent to protect customer preference.
According to Lorenzo, the capacity to connect meaningfully with clients strengthens professional ties and customer loyalty. El Mundo, the new bi-monthly eNewsletter, serves as a gift to their growing clientele. “For this issue, Mapfre Insular will provide certificates to El Mundo subscribers that they can use to avail of free medical checkups in Healthway branches. Immediate family members can also avail of this free medical benefit,” Lorenzo explained.
Among the other promotional offers included in the issue is a limited-time-only 50 percent discount on the company’s Premier Personal Accident Plan.
The inaugural issue features Mapfre Insular’s partnership with international health care unit Healthway Medical, which provides free medical consultation for Mapfre Insular policyholders.
For its maiden issue, the magazine also provided insights into men and women’s health. Content includes articles on proper diet and how specific food groups promote total well-being. “For upcoming issues, El Mundo will continue to provide critical alerts for new promotional offers by Mapfre Insular and themed issues in niche topics of human interest.” Lorenzo said.
###
About Mapfre Insular
Mapfre Insular is one of the leading and more stable insurance providers in the country today. With over 70 years of professional experience, Mapfre Insular provides a comprehensive line of insurance services under the following areas: casualty, engineering, fire and allied lines, surety, marine cargo, motor vehicle, and personal accident claims. Mapfre Insular is a joint ownership between Mapfre of Spain and the Insular Life Assurance Co. Ltd. of the Philippines . The Mapfre Group owns 75% of Mapfre Insular and is considered to be the largest insurance conglomerate in Spain with a global presence in 36 other countries. Insular Life owns 25% of Mapfre Insular and is the first and largest domestic life insurance company in the Philippines with over 100 branches nationwide. At present, Mapfre Insular has over 50,000 policyholders and is situated in 11 branches all over the country.
“El Mundo” is our medium for reaching out to policyholders so we can continuously communicate with them. Through the eNewsletter our clients would have exclusive access to exciting events, seminars, freebies, give-aways and special discounts on select Mapfre Insular products or with partner business establishments.,” Mapfre Insular Marketing Support Manager, Mallou Lorenzo, said.
“All of these plus other upcoming surprises, and of course a regular dose of interesting feature articles with useful information will be available to our policyholders. This is our way of thanking our clients for their continued trust in the quality of Mapfre Insular’s services.”
Because Filipinos increasingly rely on the Internet for information—A.C. Nielsen estimates there will be 24 million Internet users before the end of the year—Mapfre will distribute El Mundo by e-mail, to reach their policyholders in a more convenient manner.
Subscriptions to El Mundo are free for Mapfre Insular policyholders and agents. The eNewsletter will be sent directly to the subscribers’ registered email addresses upon their consent to protect customer preference.
According to Lorenzo, the capacity to connect meaningfully with clients strengthens professional ties and customer loyalty. El Mundo, the new bi-monthly eNewsletter, serves as a gift to their growing clientele. “For this issue, Mapfre Insular will provide certificates to El Mundo subscribers that they can use to avail of free medical checkups in Healthway branches. Immediate family members can also avail of this free medical benefit,” Lorenzo explained.
Among the other promotional offers included in the issue is a limited-time-only 50 percent discount on the company’s Premier Personal Accident Plan.
The inaugural issue features Mapfre Insular’s partnership with international health care unit Healthway Medical, which provides free medical consultation for Mapfre Insular policyholders.
For its maiden issue, the magazine also provided insights into men and women’s health. Content includes articles on proper diet and how specific food groups promote total well-being. “For upcoming issues, El Mundo will continue to provide critical alerts for new promotional offers by Mapfre Insular and themed issues in niche topics of human interest.” Lorenzo said.
###
About Mapfre Insular
Mapfre Insular is one of the leading and more stable insurance providers in the country today. With over 70 years of professional experience, Mapfre Insular provides a comprehensive line of insurance services under the following areas: casualty, engineering, fire and allied lines, surety, marine cargo, motor vehicle, and personal accident claims. Mapfre Insular is a joint ownership between Mapfre of Spain and the Insular Life Assurance Co. Ltd. of the Philippines . The Mapfre Group owns 75% of Mapfre Insular and is considered to be the largest insurance conglomerate in Spain with a global presence in 36 other countries. Insular Life owns 25% of Mapfre Insular and is the first and largest domestic life insurance company in the Philippines with over 100 branches nationwide. At present, Mapfre Insular has over 50,000 policyholders and is situated in 11 branches all over the country.
NGOs Call on Congress to Pass Law on People's Participation in Budget Process
Congress got two thumbs up sign from the Alternative Budget Initiative, a nationwide consortium of nongovernment organizations which pioneered civil society engagement in the national budget process, after House Speaker Prospero C. Nograles urged the private sector to actively participate in the congressional deliberations on the national budget.
Rene Raya, convenor of Social Watch Philippines, which led the ABI, said that the Alternative Budget Initiative proved that Filipino civil society is very capable of working with government for a national budget that works for equitable development.
Through the ABI campaign, since 2006 NGOs partnered with legislators in formulating and lobbying alternative budget proposals which prioritize social development, particularly on health, education, environment, agriculture and macroeconomics. They also propose alternative sources of funding for social development which includes transferring vague and unreasonably big allocations to expenditure for social services.
Recognizing the invaluable contribution of the Alternative Budget Initiative, the Congress Committee on Appropriations, for the first time in Philippine history, invited the non-government and people's organizations to participate in budget deliberations in Congress and to present their alternative budget proposals. Moreover, Congress approved Resolution No. 20: Urgent Resolution Allowing the Active Participation of Bona Fide People's Organizations in Public Hearings in Congress' Annual Budget Deliberations in November 2007.
The House Committee on People's Participation is now in the process of consolidating three bills on institutionalizing people's participation in the budget process. These are the bills authored by Guillermo Cua, Teofisto Guingona III, and Lorenzo Tanada III.
"Participation in the budget process is a right of every Filipino. We hope that Congress immediately pass the law which will set up the mechanisms for participation," Raya said.
"The experiences of other countries such as Brazil, India and South Africa proved that people's participation in the budget process improved the delivery of social services and empowered the people to directly influence priorities regarding their own development," Raya added.
The Alternative Budget Initiative campaign for the 2007 budget, the General Appropriations Act contained P5.2 billion allocations for social development, which are consistent with the alternative budget proposals. This includes P5.3 billion budget for the construction of more than 17,000 classrooms; P2 billion funding for food supplements such as milk, coco-pandesal and vegetable-based noodles, and rice under the Department of Education nutrition feeding program; P873 million for the hiring of new teachers; and P65 million additional scholarship fund for tertiary education.
Meanwhile, as a result of the ABI campaign for the 2008 national budget, a total of P6.3 billion were added to allocations for basic education, higher education, health, environment and agriculture.
Rene Raya, convenor of Social Watch Philippines, which led the ABI, said that the Alternative Budget Initiative proved that Filipino civil society is very capable of working with government for a national budget that works for equitable development.
Through the ABI campaign, since 2006 NGOs partnered with legislators in formulating and lobbying alternative budget proposals which prioritize social development, particularly on health, education, environment, agriculture and macroeconomics. They also propose alternative sources of funding for social development which includes transferring vague and unreasonably big allocations to expenditure for social services.
Recognizing the invaluable contribution of the Alternative Budget Initiative, the Congress Committee on Appropriations, for the first time in Philippine history, invited the non-government and people's organizations to participate in budget deliberations in Congress and to present their alternative budget proposals. Moreover, Congress approved Resolution No. 20: Urgent Resolution Allowing the Active Participation of Bona Fide People's Organizations in Public Hearings in Congress' Annual Budget Deliberations in November 2007.
The House Committee on People's Participation is now in the process of consolidating three bills on institutionalizing people's participation in the budget process. These are the bills authored by Guillermo Cua, Teofisto Guingona III, and Lorenzo Tanada III.
"Participation in the budget process is a right of every Filipino. We hope that Congress immediately pass the law which will set up the mechanisms for participation," Raya said.
"The experiences of other countries such as Brazil, India and South Africa proved that people's participation in the budget process improved the delivery of social services and empowered the people to directly influence priorities regarding their own development," Raya added.
The Alternative Budget Initiative campaign for the 2007 budget, the General Appropriations Act contained P5.2 billion allocations for social development, which are consistent with the alternative budget proposals. This includes P5.3 billion budget for the construction of more than 17,000 classrooms; P2 billion funding for food supplements such as milk, coco-pandesal and vegetable-based noodles, and rice under the Department of Education nutrition feeding program; P873 million for the hiring of new teachers; and P65 million additional scholarship fund for tertiary education.
Meanwhile, as a result of the ABI campaign for the 2008 national budget, a total of P6.3 billion were added to allocations for basic education, higher education, health, environment and agriculture.
Subscribe to:
Posts (Atom)