The Department of Agriculture-Biotechnology Program Office is eyeing to develop Central Luzon as a hub for agricultural biotechnology products and has conducted a series of seminars in the region to promote the cultivation of crops with many byproducts to raise rural incomes and improve nutrition.
Zambales Governor Amor Deloso and Bataan Vice Governor Serafin Roman attended the seminars in their provinces.
These seminars were attended by farmers, educators, businessmen, non-government organizations and representatives of local government units.
Malunggay production was a key topic in the seminars since the versatile tree has proven to be a major source of iron, Vitamin A, zinc and other micronutrients crucial to the improvement of health among children and adults alike.
DA-BPO officials led by Director Alicia Ilaga have been crisscrossing the country to expand the hectarage devoted to malunggay cultivation and in the process have increased the business opportunities offered by the lowly malunggay (scientific name Moringa oleifera Lmk).
Malunggay has also been known to increase the motility of sperm and improve lactation among nursing mothers, which is a boost to children who need to suckle their mothers in order to avoid contracting primary complex, which leads to lung diseases in adulthood.
Other studies conducted in India and other countries showed that the roots of malunggay have anti-cancer agents that can be isolated and used profitably by the global pharmaceutical industry.
Moreover, LGUs interested in joining the biofuel bandwagon also have a ready energy source in malunggay since its trunk can be used to produce ethanol while its seeds are a fount of biodiesel.
Central Luzon is known is the primary rice producer of the Philippines, with 525,700 hectares of land devoted to the staple. Nueva Ecija alone produces about 8 percent of the total national production of palay.
The total hectarage for rice comprises 41 percent of the region's total territory.
Other agricultural products in the region are sugarcane, corn, mango, and cutflowers.
In Zambales alone, 25,412 hectares are utilized for rice production.
On the other hand, Bataan has 29,938 hectares earmarked for rice cultivation.
In the seminars conducted by DA-BPO, participants were shown malunggay's potential as a commodity that has various applications and even bakeries, pastry shops and noodle manufacturers are now using malunggay leaves as ingredients for their products, some of which have already penetrated the international market.
Secura International president Engr. Danilo Manayaga also joined the seminars and discussed how how Moringa oil can be profitable for malunggay growers.
He further said that as the world market shifts to biofuel as a primary energy source, the demand for Moringa oil will rise tremedously.
In an interview, Vice Governor Roman said Bataan is now ready to make malunggay a primary product.
"Bataan is a mountainous area, so maraming upland farming, ang malunggay ay hindi nangangailangan ng maraming tubig, kaya kung upland farming, suitable ang lugar para sa pagtatanim ng malunggay," he adds.
When asked on the province's stand on biotechnology, he said Bataan has been cultivating Bacillus thuringiensis (Bt) corn to help the farmers gain more profit. Corn is a prime crop in Bataan.
Roman added other crops like coconut and cassava are open to enhancement through biotechnology.
While the land devoted to farming is small, the people of Bataan are very keen on intensifying agricultural production through the efficient use of farms.
Lagundi, another plant that has gained fame for its medicinal properties, is cultivated in Bataan. A pharmaceutical company in Bagac is planting it and manufacturing various preparations from the active ingredient derived from the plant.
There is also a plan to set up a malunggay nursery in the province to help boost the growing malunggay industry. This, he said, will be realized through the collaborationn of the LGUs and the DA-BPO.
Biotechnology is a major part of Gov. Deloso's vision to develop Zambales as a key agricultural producer.
His long term plan for Zambales is to create a community that can stand on its own. Biotechnology should play the role of realizing the industrialization of the province as well.
Deloso said that while the province is undergoing industrialization, biotechnology should take care of the food and nutrition needs of the people of Zambales.
"Napapabayaan," this was his answer when asked on the status of malunggay farming in the province. "Hindi talaga tinutuunan ng pansin. Pero kung mayroon talagang magbibigay ng primary concern diyan, lalaki kasi we can easily adapt to malunggay."
He also revealed the provincial government's plan to buy malunggay seedlings and distribute it to his constituents.
Zambales is also working on a project to build a biogas plant, where waste generated by Zambales, including Olongapo, will be used to produce butane.
Aside from Bataan and Zambales, a malunggay nursery has been put up in Tarlac earlier in this year.
This was done through the initiative of BIONet-Pilipinas, an organization that aims to help farmers and stakeholders reach their products to the market, DA-BPO and the LGU. (biolife news service)
Tuesday, October 14, 2008
Saturday, October 11, 2008
Melamine Questions and Answers
1. What is melamine?
Melamine is an industrial chemical rich in nitrogen that is used in making plastics, glues and whiteboards. In the recent case in China , melamine had been used by unscrupulous traders to mask the dilution of milk with water. Because it is high in nitrogen, the addition of melamine to a food artificially increases the apparent protein content as measured with standard tests. Reports of this practice being used in China have caused widespread concern about the safety of foods using milk and milk products produced in China .
2. Is melamine unsafe?
Melamine itself is relatively safe in low amounts. It is not believed to cause cancer or birth defects based on studies in animals. At very high doses it can have bladder effects but no kidney effects have been seen in animal studies. When Melamine is combined with a related chemical, cyanuric acid, the mixture can cause kidney stones and toxic effects in the kidney.
3. How can melamine get into my food?
Melamine can be present at very low levels through transfer from adhesives and plastics containing melamine that come into contact with food. Occurrence of melamine at these levels is permitted and is well below the safety limits established by authorities in the United States and the European Union.
4. How did melamine end up in milk powder in China ?
Recently, melamine and related chemicals have been found to have been deliberately and illegally added to milk in China in an apparent attempt to hide the fact that the milk was diluted with water. In this situation, it is possible that the melamine that was added also contained cyanuric acid as an impurity and this combination of high levels of melamine and cyanuric acid would account for the serious effects seen in children in China . The contamination of milk is particularly serious for infants and small children who rely on milk for most of their nutrition.
5. Have unsafe levels of melamine been found in other food products?
In 2007, melamine was found in wheat gluten and rice protein concentrate exported from China and used in the manufacture of pet food in the United States . This caused the death of a large number of dogs and cats due to kidney failure.
6. I just read a report that melamine has been detected in my favorite food. Should I be worried?
If you are an adult, the mere detection of melamine is not a cause for concern as long as the amount detected is within established safety limits. Health authorities in Australia/New Zealand (FSANZ), Europe (EFSA) and the U.S. (FDA) have established a safety limit of 2.5 parts per million (ppm) melamine for all food products except infant formula. This means that it has been considered that foods containing up to 2.5 ppm of melamine do not pose a risk to human health.
For milk and infant formula most authorities apply a limit of 1 ppm of melamine.
7. I may have consumed some milk products contaminated with melamine. What should I do now?
The risk of harmful effects depends on the amount of melamine consumed. Most food products made in China containing milk powder that have been analyzed for the presence of melamine either have no detectable melamine or levels within generally accepted safety limits. Your risk is very small if the food you consumed is only a small part of your diet.
If you remain concerned you should consult your family physician.
8. How is melamine in food regulated?
Addition of melamine into food is not approved by the FAO/WHO Codex Alimentarius, or by any national authorities. The United States has established safe levels of melamine as an indirect food additive from adhesives and plastics that come into contact with food. Also, the pesticide cyromazine can be converted to melamine and approved uses of that pesticide take this into account. Of course deliberate contamination of food with melamine is illegal. The FDA has recently concluded that presence of melamine in food at or below 2.5 ppm should not be a cause for public health concern. This is similar to the conclusions of the EU, New Zealand and Singapore .
9. What actions have been taking to take/keep contaminated products out of the market place?
Governments around the world are analyzing food products that may contain milk or milk products from China and taking action to remove from sale any products that are found to be in violation of established safe limits.
Private companies are redoubling their efforts to ensure that their products are not contaminated and to take action where contamination is found.
10. Who should I contact for enquiries on affected products or for health concerns?
You should consult your local health authorities either directly or on their websites. Some useful links are provided below.
11. “A Food” was found to have 0.5 ppm melamine yet was declared ok to sell, what’s going on?
The mere detection of melamine is not a cause for concern as long as the amount detected is within established safety limits. New Zealand has established a safety limit of 2.5 parts per million melamine for all food products except infant formula. European authorities have proposed a limit of 2.5 parts per million in general foods. For milk and infant formula most authorities apply a limit of 1 ppm of melamine
The risk of harmful effects depends on the amount of melamine consumed. Most food products made in China containing milk powder that have been analyzed for the presence of melamine either have no detectable melamine or levels within generally accepted safety limits.
12. How reliable are these tests for melamine?
There are several test methods for melamine and the ability to detect melamine at very low levels is difficult and highly variable. Most methods can distinguish well between dangerous adulteration and low level presence of melamine.
Melamine can be present at very low levels through transfer from adhesives and plastics containing melamine that come into contact with food. Occurrence of melamine at these levels is permitted and is well below the safety limits established by authorities in the United States and the European Union.
What the Experts Are Saying:
WHO :
Melamine-contamination event, China, September 2008 and Questions and Answers on melamine
- The Chinese event appears to be the result of deliberate contamination of diluted milk with melamine to make it appear to have normal levels of protein measured by standard tests.
- Toxic effects are more likely to occur when melamine is present along with a related compound, cyanuric acid
- Contaminated products in China have been found to contain levels much higher than the safety thresholds for melamine established by the EU and the U.S:
“Melamine and Cyanuric Acid: Toxicity, Preliminary Risk Assessment and Guidance on Levels in Food.”
- This preliminary guidance was developed to assist national authorities in making decisions regarding possible health concerns of melamine content found in food.
EU (EFSA) : EFSA assesses possible risks related to melamine in composite foods from China
- Adult consumption of chocolate and biscuits made from contaminated milk powder should not be a concern.
- Average consumption of these products by children should also not be a concern but worst case high level consumption of highly contaminated products by children could exceed EU safety levels.
- It is not known if worst-case assumptions for children exist in Europe
Australia/New Zealand : risk assessment for dairy foods and foods containing dairy based ingredients adulterated with melamine
- A maximum level of 1 mg/kg for melamine in infant formula is considered appropriate.
- A maximum level of 2.5 mg/kg for melamine in dairy-based foods and foods containing dairy-based ingredients is appropriate and acceptable
- Foods with low levels of dairy-based ingredients, such as candies and biscuits, are likely to be infrequently consumed and in small amounts so they are not considered to be a high-risk food for potential dietary exposure to melamine even if the dairy ingredient has been adulterated
Singapore Agriculture and Veterinary Authority (AVA) : Consumers need not to be unduly concerned over melamine incidents
- Products in Singapore which have been found to contain melamine should not be an undue concern for consumers
- Levels of melamine detected in products in Singapore are much lower than the amounts found in contaminated milk in China and are within safety limits established by the U.S. FDA.
United States FDA : Interim Melamine and Analogues Safety/Risk Assessment
- The U.S. Food and Drug Administration conducted an interim safety assessment of the safety of melamine-related consumption. Key findings were:
- "FDA is currently unable to establish any level of melamine and melamine-related compounds in infant formula that does not raise public health concerns.
- In [other] food products, FDA concludes that levels of melamine and melamine-related compounds below 2.5 parts per million (ppm) do not raise concerns
- The FDA explains how the 2.5 mg/kg food safety limit has been calculated based on the TDI of 0.63 mg/kg body weight.
Food Safety and Quality Division, Ministry of Health Malaysia :
- The Minister of Health Malaysia had declared that permissible levels of melamine were set at 2.5 parts per million (ppm) for adult food products and 1ppm for baby food.
source: ww.afic.org
Thursday, October 09, 2008
SSS to Philex: Observe Pre-emptive Rights
Social Security Commission, the policy-making body of the country’s largest pension fund, said Philiex Mining Corp must follow procedures in disposing its shares to the public.
Social Security Commission Chairman Thelmo Cunanan said the pre-emptive right of a shareholder, as provided by the company’s charter, must be observed to avoid future complications on the sale.
“The pre-emptive right of a shareholder has not been denied by the company’s charter and ratified by the shareholders as required by law, so it must be observed,” Cunanan said.
Philex Mining Corp, the country’s oldest and largest mining company, announced early this week a bloc sale of 20 percent of the company shares to the First Pacific of Hong Kong.
SSS President Romulo Neri indicated that Philex must comply with pre-emptive rights of all shareholders, including the SSS.
Cunanan, who heads the fund’s nine member tripartite commission representing labor, management and government, said Neri’s good faith objection was a valid exercise of his duties as a director of the company.
“Neri raised a valid issue of pre-emptive rights of shareholders , which could derail a potentially beneficial deal for Philex. In fact, he was acting in the best interest of Philex and the SSS,” he said.
Social Security Commission Chairman Thelmo Cunanan said the pre-emptive right of a shareholder, as provided by the company’s charter, must be observed to avoid future complications on the sale.
“The pre-emptive right of a shareholder has not been denied by the company’s charter and ratified by the shareholders as required by law, so it must be observed,” Cunanan said.
Philex Mining Corp, the country’s oldest and largest mining company, announced early this week a bloc sale of 20 percent of the company shares to the First Pacific of Hong Kong.
SSS President Romulo Neri indicated that Philex must comply with pre-emptive rights of all shareholders, including the SSS.
Cunanan, who heads the fund’s nine member tripartite commission representing labor, management and government, said Neri’s good faith objection was a valid exercise of his duties as a director of the company.
“Neri raised a valid issue of pre-emptive rights of shareholders , which could derail a potentially beneficial deal for Philex. In fact, he was acting in the best interest of Philex and the SSS,” he said.
SSS Cites Pre-emptive Right in Philex Shares
Social Security System called on a mining corporation, on which it owns substantial shares of stocks, to recognize its pre-emptive right on holdings that the company is selling to the public.
SSS President and Chief Executive Officer Romulo Neri said the institution has 23 percent shares in Philex Mining Corporation, and it aims to protect the interest of its members as provided under corporate laws.
“We exercise this pre-emptive right as matter of good governance,” Neri said. “Our action aims to protect the interest of SSS members and other Philex shareholders.”
The Hong Kong-listed First Pacific acquired a 20-percent stake in Philex Mining Corporation, according to news reports. The purchase makes the conglomerate one of the major shareholders in the company.
SSS owns 714.43 million Philex shares, which is equivalent to a 23.03 percent stake. The pension fund has two board seats in the corporation.
Neri said his actions were in accordance with the instructions from the Social Security Commission, which is SSS’ highest policy-making body and is mandated to ensure the protection of the value of the investments, which were taken from the contributions of its 27 million members.
“Our goal is not to stop the deal, but for SSS to be given the opportunity to exercise this pre-emptive right,” he said, adding that the exercise of this right is stipulated under Section 39 of the Corporation Code.
“We simply request that the procedures as mandated by law are followed,” he said.
SSS President and Chief Executive Officer Romulo Neri said the institution has 23 percent shares in Philex Mining Corporation, and it aims to protect the interest of its members as provided under corporate laws.
“We exercise this pre-emptive right as matter of good governance,” Neri said. “Our action aims to protect the interest of SSS members and other Philex shareholders.”
The Hong Kong-listed First Pacific acquired a 20-percent stake in Philex Mining Corporation, according to news reports. The purchase makes the conglomerate one of the major shareholders in the company.
SSS owns 714.43 million Philex shares, which is equivalent to a 23.03 percent stake. The pension fund has two board seats in the corporation.
Neri said his actions were in accordance with the instructions from the Social Security Commission, which is SSS’ highest policy-making body and is mandated to ensure the protection of the value of the investments, which were taken from the contributions of its 27 million members.
“Our goal is not to stop the deal, but for SSS to be given the opportunity to exercise this pre-emptive right,” he said, adding that the exercise of this right is stipulated under Section 39 of the Corporation Code.
“We simply request that the procedures as mandated by law are followed,” he said.
TESDA Schools to Increase Food Production
Agricultural and fishery schools of the Technical Education and Skills Development Authority nationwide will soon produce rice and other agricultural crops, livestock, and aquatic products in “commercial quantities” to contribute to the country’s food security.
This was agreed by the 27 agri-fishery school administrators and officials of TESDA technology institutions who gathered for two days last week in Manila for a special meeting on food production upon the direction of Secretary Augusto Boboy Syjuco, TESDA director general.
The meeting focused on the discussion of the respective food production plans of each of the TESDA’s technology institutions.
Syjuco convened the meeting in response to the call of President Gloria Macapagal Arroyo to utilize all tillable lands to ensure food security and sufficiency.
“The TESDA as a government institution will contribute to our country’s food security. We have to tap and maximize the use of existing resources and harness our own expertise in increasing food production,” Secretary Syjuco said.
According to Secretary Syjuco, TESDA technical institutions own a combined land area of 2,000 hectares which can be used for agri-fishery production.
At present, these technology institutions use their land resources as training laboratories and experimental facilities for various agri-fishery courses. TESDA has 125 technology institutions all over the country.
“We have to increase our production of agricultural crops, livestock, and aquatic products to contribute to national effort of averting food shortage in the country,” Pastor Guiao, TESDA deputy director general for community and local government units services, exhorted the agri-fishery schools chiefs.
Two food production plans that elicited interest during the meeting were the proposed cultivation of dragon fruit and the utilization of vermi composting technology to produce organic fertilizers.
While the agri-fishery schools chiefs noted that increasing food production in their respective schools would require funds for new equipment, support infrastructure, and other inputs, they agreed that implementing their food production plans as soon as possible will generate income for their schools, their students and their communities.
“In the long-term, increasing food production will be good for our country,” they said.
This was agreed by the 27 agri-fishery school administrators and officials of TESDA technology institutions who gathered for two days last week in Manila for a special meeting on food production upon the direction of Secretary Augusto Boboy Syjuco, TESDA director general.
The meeting focused on the discussion of the respective food production plans of each of the TESDA’s technology institutions.
Syjuco convened the meeting in response to the call of President Gloria Macapagal Arroyo to utilize all tillable lands to ensure food security and sufficiency.
“The TESDA as a government institution will contribute to our country’s food security. We have to tap and maximize the use of existing resources and harness our own expertise in increasing food production,” Secretary Syjuco said.
According to Secretary Syjuco, TESDA technical institutions own a combined land area of 2,000 hectares which can be used for agri-fishery production.
At present, these technology institutions use their land resources as training laboratories and experimental facilities for various agri-fishery courses. TESDA has 125 technology institutions all over the country.
“We have to increase our production of agricultural crops, livestock, and aquatic products to contribute to national effort of averting food shortage in the country,” Pastor Guiao, TESDA deputy director general for community and local government units services, exhorted the agri-fishery schools chiefs.
Two food production plans that elicited interest during the meeting were the proposed cultivation of dragon fruit and the utilization of vermi composting technology to produce organic fertilizers.
While the agri-fishery schools chiefs noted that increasing food production in their respective schools would require funds for new equipment, support infrastructure, and other inputs, they agreed that implementing their food production plans as soon as possible will generate income for their schools, their students and their communities.
“In the long-term, increasing food production will be good for our country,” they said.
RP, British Columbia to Finalize Guidelines on OFW Employment, Deployment
Assistant Deputy Minister Mike Carter of the Ministry of Technology, Trade, and Economic Development, Executive Director of Canada’s Labor Market Development Mark Gillis, and other officials of the Canadian Province of British Columbia will arrive in Manila Sunday, Oct. 5, 2008, to help Canadian employers find needed skills and finalize the proposed guidelines on the employment and deployment of overseas Filipino workers to British Columbia.
Minister Carter will subsequently meet with Labor and Employment Secretary Marianito D. Roque at the Department of Labor and Employment in Intramuros, Manila.
Roque said the Canadian team would collaborate with the Philippine Overseas Employment Administration in the conduct of a pilot recruitment project wherein three Canadian companies are set to interview applicants already pre-screened by Philippine licensed recruitment agencies based on the qualification criteria for the required positions provided by the employers.
The employers participating in this recruitment mission need hotel workers, food counter attendants, and long haul drivers. Other types of skilled workers will be needed for the succeeding recruitment by British Columbia companies and establishments.
The DOLE Chief said the outcome of the project would serve as inputs to the discussion of the proposed guidelines on the implementation of the Memorandum of Understanding between the DOLE and the Province of British Columbia concerning human resource development and deployment of OFWs to British Columbia.
The priority concerns for discussion include recruitment procedures, employment contracts, British Columbia-specific orientation package, identification of skills requirements, criteria for employers and sending agencies, and HRD mechanisms.
The MOU was forged in January this year to provide for cooperation in the fields of labor, employment, and human resource deployment and development between the Philippines and British Columbia
Roque said the MOU’s working committee consisting of DOLE officials and representatives of the Labour Market Development led by Executive Director Gillis will convene and discuss the proposed framework on the MOU’s implementing guidelines during their visit.
“We aim to finalize the implementing guidelines to facilitate the recruitment and deployment of OFWs to British Columbia in accordance with the MOU between the DOLE and British Columbia,” Roque said adding “ this is to ensure that OFWs bound for this Canadian province are accorded ample benefits and protection.”
At the same time, the Canadian team led by Michael Chew, manager of the Provincial Nominee Program, will conduct briefings on the British Columbia nominee program for the participating recruitment agencies and applicants.
The team is also scheduled to visit the TESDA Women Center in Taguig City, the hospitality department of the Lyceum of the Philippines in Intramuros, and the Department of Trade and Industry in Makati City.
Minister Carter will subsequently meet with Labor and Employment Secretary Marianito D. Roque at the Department of Labor and Employment in Intramuros, Manila.
Roque said the Canadian team would collaborate with the Philippine Overseas Employment Administration in the conduct of a pilot recruitment project wherein three Canadian companies are set to interview applicants already pre-screened by Philippine licensed recruitment agencies based on the qualification criteria for the required positions provided by the employers.
The employers participating in this recruitment mission need hotel workers, food counter attendants, and long haul drivers. Other types of skilled workers will be needed for the succeeding recruitment by British Columbia companies and establishments.
The DOLE Chief said the outcome of the project would serve as inputs to the discussion of the proposed guidelines on the implementation of the Memorandum of Understanding between the DOLE and the Province of British Columbia concerning human resource development and deployment of OFWs to British Columbia.
The priority concerns for discussion include recruitment procedures, employment contracts, British Columbia-specific orientation package, identification of skills requirements, criteria for employers and sending agencies, and HRD mechanisms.
The MOU was forged in January this year to provide for cooperation in the fields of labor, employment, and human resource deployment and development between the Philippines and British Columbia
Roque said the MOU’s working committee consisting of DOLE officials and representatives of the Labour Market Development led by Executive Director Gillis will convene and discuss the proposed framework on the MOU’s implementing guidelines during their visit.
“We aim to finalize the implementing guidelines to facilitate the recruitment and deployment of OFWs to British Columbia in accordance with the MOU between the DOLE and British Columbia,” Roque said adding “ this is to ensure that OFWs bound for this Canadian province are accorded ample benefits and protection.”
At the same time, the Canadian team led by Michael Chew, manager of the Provincial Nominee Program, will conduct briefings on the British Columbia nominee program for the participating recruitment agencies and applicants.
The team is also scheduled to visit the TESDA Women Center in Taguig City, the hospitality department of the Lyceum of the Philippines in Intramuros, and the Department of Trade and Industry in Makati City.
Thursday, October 02, 2008
DBP Facility to Encourage Entrepreneurship Among OFWs
State-owned Development Bank of the Philippines is making available a program that will promote entrepreneurship and savings and investment activities among overseas Filipino workers and their families.
DBP president and chief executive officer Reynaldo G. David said the DBP Livelihood Loan and Savings program for OFWs will support migrant workers and their families in putting up livelihood projects or expanding their existing businesses.
“This program will encourage the entrepreneurial spirit among overseas Filipino workers and their families while teaching them the values of engaging in savings activities and maximizing investment opportunities,” David said.
He added that the program was developed in line with DBP’s commitment to further intensify assistance to the ever-growing OFW sector to uplift the socio-economic conditions of migrant workers and their families.
The facility shall be initially available to OFWs working under controlled environments such as seafarers, as well as those working in hospitals, remittance companies, and similar businesses. Applicants should have co-borrowers/specified beneficiaries who will manage the business.
Qualified beneficiaries are the spouse, children or parents of a married OFW, and the parents, siblings, nephews or nieces of a single OFW.
The program can provide loans for working capital, acquisition of machineries and equipment, franchise fees, and other project-related expenditures. The regular livelihood loan amount ranges from P10,000 up to P100,000, while the franchising loan amount is up to a maximum of P500,000.
Total loan amount to be granted shall be based on 90 percent of total project cost.
Eligible projects for the program include manufacturing, export and support industries; transportation, communication, information technology; franchising, distribution, dealership and trading; education linked to manufacturing; tourism related businesses; and agri-business.
Interested OFWs and their beneficiaries may inquire at any DBP branch or at DBP’s Remittance Center located at the DBP Head Office in Makati City.
DBP president and chief executive officer Reynaldo G. David said the DBP Livelihood Loan and Savings program for OFWs will support migrant workers and their families in putting up livelihood projects or expanding their existing businesses.
“This program will encourage the entrepreneurial spirit among overseas Filipino workers and their families while teaching them the values of engaging in savings activities and maximizing investment opportunities,” David said.
He added that the program was developed in line with DBP’s commitment to further intensify assistance to the ever-growing OFW sector to uplift the socio-economic conditions of migrant workers and their families.
The facility shall be initially available to OFWs working under controlled environments such as seafarers, as well as those working in hospitals, remittance companies, and similar businesses. Applicants should have co-borrowers/specified beneficiaries who will manage the business.
Qualified beneficiaries are the spouse, children or parents of a married OFW, and the parents, siblings, nephews or nieces of a single OFW.
The program can provide loans for working capital, acquisition of machineries and equipment, franchise fees, and other project-related expenditures. The regular livelihood loan amount ranges from P10,000 up to P100,000, while the franchising loan amount is up to a maximum of P500,000.
Total loan amount to be granted shall be based on 90 percent of total project cost.
Eligible projects for the program include manufacturing, export and support industries; transportation, communication, information technology; franchising, distribution, dealership and trading; education linked to manufacturing; tourism related businesses; and agri-business.
Interested OFWs and their beneficiaries may inquire at any DBP branch or at DBP’s Remittance Center located at the DBP Head Office in Makati City.
RP, Alberta Forge Agreement on OFW Deployment
The Department of Labor and Employment on October 1 entered into an agreement with the Canadian Province of Alberta that would provide for their collaboration and cooperation in the exploration of opportunities for human resource development and the deployment of overseas Filipino workers to Alberta.
Labor and Employment Secretary Marianito D. Roque signed for the Philippine side while Alberta was represented by its Minister of Employment and Immigration Hector Goudreau.
Roque said the DOLE and E & I would cooperate primarily for the ethical recruitment, selection, and protection and skills development of OFWs who would be deployed to Alberta in line with the laws and standards of the Philippines, Alberta, and that of international bodies.
He noted that Alberta has recognized the capabilities of OFWs to fill its skills requirements, like the other Canadian provinces of Saskatchewan, British Columbia, and Manitoba, which also forged similar agreements with the DOLE.
The DOLE Chief said the MOUs with the four Canadian provinces underscore efforts aimed at ensuring that Filipino workers seeking overseas employment are afforded ample protection from unscrupulous illegal recruiters and exploitative employers overseas.
Roque cited the agreement with Alberta, wherein the DOLE and E & I would prioritize their cooperation and collaboration on the following initiatives:
Expedite the approval of selected OFWs for employment opportunities in Alberta, ensure that Alberta’s occupational standards are met through training and credential recognition activities, provide programs for the well being and protection of OFWs in coordination with employers, promote sound and equitable recruitment and employment practices, and establish other areas for collaboration such as HRD programs.
Both parties, he said, shall establish a working committee tasked to coordinate activities on their shared priorities.
In line with the priorities, Roque said the DOLE shall develop mechanisms to facilitate the deployment of qualified OFWs to Alberta. E & I for its part, will encourage Alberta employers who recruit Filipino workers working temporarily outside the Philippines to course their manpower request through the nearest Philippine Overseas Labor Office (POLO) and to advise the said office of the names and employment particulars of the workers shortly after their arrival.
The DOLE Chief also mentioned that OFWs who would like to work in Alberta should still apply for relevant vacancies through recruitment agencies authorized to recruit workers for Canada.
He emphasized that all recruitment costs related to the hiring of OFWs under the MOU shall be covered by the employers in Canada. Hence, the employment agency in Canada and the recruitment or sending agency in the Philippines are not allowed to charge any recruitment fees in any form from OFWs bound for Alberta.
Labor and Employment Secretary Marianito D. Roque signed for the Philippine side while Alberta was represented by its Minister of Employment and Immigration Hector Goudreau.
Roque said the DOLE and E & I would cooperate primarily for the ethical recruitment, selection, and protection and skills development of OFWs who would be deployed to Alberta in line with the laws and standards of the Philippines, Alberta, and that of international bodies.
He noted that Alberta has recognized the capabilities of OFWs to fill its skills requirements, like the other Canadian provinces of Saskatchewan, British Columbia, and Manitoba, which also forged similar agreements with the DOLE.
The DOLE Chief said the MOUs with the four Canadian provinces underscore efforts aimed at ensuring that Filipino workers seeking overseas employment are afforded ample protection from unscrupulous illegal recruiters and exploitative employers overseas.
Roque cited the agreement with Alberta, wherein the DOLE and E & I would prioritize their cooperation and collaboration on the following initiatives:
Expedite the approval of selected OFWs for employment opportunities in Alberta, ensure that Alberta’s occupational standards are met through training and credential recognition activities, provide programs for the well being and protection of OFWs in coordination with employers, promote sound and equitable recruitment and employment practices, and establish other areas for collaboration such as HRD programs.
Both parties, he said, shall establish a working committee tasked to coordinate activities on their shared priorities.
In line with the priorities, Roque said the DOLE shall develop mechanisms to facilitate the deployment of qualified OFWs to Alberta. E & I for its part, will encourage Alberta employers who recruit Filipino workers working temporarily outside the Philippines to course their manpower request through the nearest Philippine Overseas Labor Office (POLO) and to advise the said office of the names and employment particulars of the workers shortly after their arrival.
The DOLE Chief also mentioned that OFWs who would like to work in Alberta should still apply for relevant vacancies through recruitment agencies authorized to recruit workers for Canada.
He emphasized that all recruitment costs related to the hiring of OFWs under the MOU shall be covered by the employers in Canada. Hence, the employment agency in Canada and the recruitment or sending agency in the Philippines are not allowed to charge any recruitment fees in any form from OFWs bound for Alberta.
Recruiters' Group Lauds Ex-Congressman's Appointment to CAB
The Federated Associations of Manpower Exporters, Inc., the country’s largest umbrella organization of licensed overseas employment service providers, yesterday lauded the appointment by President Gloria Macapagal Arroyo of former congressman Renato Diaz as director of the Civic Aeronautic Board.
In a press statement, the Federation, through its president Eduardo T. Mahiya, said stakeholders in the overseas employment industry are ecstatic over the appointment of the former Nueva Ecija solon who also concurrently serves as presidential adviser for North Luzon Development.
The private overseas recruitment sector and overseas Filipino workers has an ally in former congressman Renato Diaz. When he was congressman, he took up the cudgels for us when the House of Representatives’ Committee on Overseas Workers attended to the serious problem of shortage of airline flights for overseas workers bound to the Middle East,” Mahiya explained.
“He spoke on behalf of the affected sectors by asking the CAB to act on the shortage which was preventing the departure of about 1,000 workers everyday,” he added.
Mahiya said that Representative Manuel “Way Kurat” Zamora, committee chairman, acted swiftly on the recommendation of former congressman Diaz for the Philippine Airlines to provide sufficient daily bookings for departing overseas workers.
Moreover, the committee also urged the CAB to provide entitlements (flight rights) to Middle Eastern airlines to enable them to have additional flights that will carry OFW passengers directly to countries in the Middle East.
Mahiya said that with Diaz as a CAB director, he could pursue reforms in the agency and offer meaningful contributions towards ensuring that OFWs as passengers are able to leave for overseas work and return to the country without hassle and worry.
“We wish Cong, Diaz well in his new responsibility,” he said.
In a press statement, the Federation, through its president Eduardo T. Mahiya, said stakeholders in the overseas employment industry are ecstatic over the appointment of the former Nueva Ecija solon who also concurrently serves as presidential adviser for North Luzon Development.
The private overseas recruitment sector and overseas Filipino workers has an ally in former congressman Renato Diaz. When he was congressman, he took up the cudgels for us when the House of Representatives’ Committee on Overseas Workers attended to the serious problem of shortage of airline flights for overseas workers bound to the Middle East,” Mahiya explained.
“He spoke on behalf of the affected sectors by asking the CAB to act on the shortage which was preventing the departure of about 1,000 workers everyday,” he added.
Mahiya said that Representative Manuel “Way Kurat” Zamora, committee chairman, acted swiftly on the recommendation of former congressman Diaz for the Philippine Airlines to provide sufficient daily bookings for departing overseas workers.
Moreover, the committee also urged the CAB to provide entitlements (flight rights) to Middle Eastern airlines to enable them to have additional flights that will carry OFW passengers directly to countries in the Middle East.
Mahiya said that with Diaz as a CAB director, he could pursue reforms in the agency and offer meaningful contributions towards ensuring that OFWs as passengers are able to leave for overseas work and return to the country without hassle and worry.
“We wish Cong, Diaz well in his new responsibility,” he said.
Wednesday, October 01, 2008
Monthly Remittance Data Shows Downward Spikes
By Jeremaiah Opiniano
MANILA–MONTH-ON-MONTH remittance data reflecting downward spikes may reveal the impact of world oil and commodities prices adjustment to economies like the Philippines that are dependent on cash flow from abroad, economist Alvin Ang said.
“While it is too early to see the effect, we should be on guard of the monthly growth rates of remittance inflows and understand the ‘Philippine cycle’ of these flows,” the University of Santo Tomas economics professor said.
The OFW Journalism Consortium spoke to Ang before the Bangko Sentral ng Pilipinas revealed on August 15 a record high remittance in June of $1.5 billion.
Ang admits that total cash remittance volumes increased, both on a year-on-year level and on a cumulative cash remittance growth rate.
However, Ang said, these growth rates should take into account the start of the US credit crunch, the surge in world oil and food prices, and domestic inflation.
Monitoring cash remittance growth rates in this context is important in determining the level of migrant workers’ propensity to remit back home, Ang said.
He explained month-on-month cumulative remittance data could also help identify the intensity of the impact of world price changes on overseas Filipino workers’ (OFW) money flow.
For example, the BSP cash remittance data between January 2004 to May 2008 that January, February, April, July, September, and November are low-growth months for cash remittance inflows (see Table 1).
Cash remittances’ growth rates usually rebound during the months of March (for graduation), May, August, October (due to tuition and fees payments by students of OFWs), and December (for Christmas).
But when the food crisis peaked in March, remittances growth rate was pegged at 13.44 percent, the lowest March figure over a five-year period.
And when Philippine inflation reached 9.5 percent last May, that month’s remittance growth rate was 1.39 percent.
Ang added Philippine monetary officials should worry if there will be more negative month-on-month cash remittances growth rates this year despite continued increases of total remittance volumes (see Table 2).
The Philippines had seven months of negative month-on-month cash remittance growth rates for both 2006 and 2007, compared to six months of negative growth rates in the years 2005 and 2004.
Three of the first five months of the year saw negative month-on-month growth rates for remittances.
Last year, groups of OFWs circulated electronic mails citing that a strong peso has prompted many of their colleagues to send additional money to maintain the purchasing power of their families in the Philippines.
Money from an estimated 8.7 million Filipinos working or living temporarily or permanently in 193 countries have been credited as keeping consumer spending high or, at best, constant.
However, Ang said that a high-inflation environment and weak dollar cast doubts on the “physical sustainability” of OFWs to send money to the Philippines.
Informal Remittances Sank to Seven-year Low
By Jeremaiah M. Opiniano
MANILA–PADALA, or the money brought home by vacationing overseas Filipinos here, is on its seven-year low, based on data from the Philippines’s central bank.
Migration and remittances experts call these cash —$506 million in 2007— as “informal remittances.” This includes money that did not pass through “formal” banking channels.
Usually, informal remittances are sent through door-to-door companies, in particular those without partner banks, and courier services. Increasingly, some Filipino-run money transfer organizations with door-to-door services have partnered with commercial banks.
That 2007 figure was the lowest since the BSP, following the fifth edition of the Balance of Payments manual of the International Monetary Fund (IMF), started computing the amount of informal remittances in 2001 when the total volume was $1.69 billion.
But the diminished volumes of informal remittances have been evident since 2004. From $1.71 billion that year, informal remittances went down to $1.603 billion in 2005, and $1.276 billion in 2006 (see Table 1).
The Bangko Sentral’s multiple-year data showed that the 2007 total of formal and informal cash remittances from overseas Filipinos was $14.956 billion, broken down into $14.45 billion of formal remittances and the $506 million of informal remittances.
That combined total is a seven-year high as well, as informal remittances make up 3.38 percent of the 2007 total.
That 2007 percentage of informal remittances to the total cash remittances is also the lowest. In 2001, when the combined formal and informal cash remittances reached $7.721 billion, the $1.690 billion of informal remittances made up 21.83 percent.
From 2002 to 2007, the percentage share of informal remittances to the combined total remittances dropped further (see Table 1).
The seven-year total informal remittances of $10.02 billion makes up 13.01 percent of that same period’s total formal and informal remittances, worth $76.967 billion.
In 2005, when the BSP started adopting the BOP 5 Manual of the IMF, informal remittances showed it “mitigated the downward effect of adjustment in goods imports”.
Using that same BOP 5 manual, Bangko Sentral data (see http://www.bsp.gov.ph/statistics/sdds/boprevs/imp99-07.htm) showed that total imports also had a seven-year high with $57.527 billion (from $43.827 billion in 2000).
Director Iluminada Sicat told the OFW Journalism Consortium in 2005 that BSP estimates the volume of informal remittances every time the National Statistics Office comes up with the results of the annual Survey on Overseas Filipinos so that it may determine “an under-coverage ratio” to determine the volume of these informal flows.
Indications
MELINDA dela Cruz, a migrant worker in Paris, France, told the OFW Journalism Consortium newer remittance channels run by Filipino banks and financial institutions in the last five years has made remitting easier.
Now a supervisor at a Paris shopping mall, Melinda has been in Paris for 28 years.
She recently came home for a short vacation.
Undocumented Filipinos in that city usually send money through informal channels because to their irregular status. France alone is home to some 39,000 undocumented or irregular Filipinos, the largest in Europe, says 2007 Philippine government data.
But the country has no restrictions for undocumented migrants wishing to send money home, says Filipina Lea Munnecom, who handles the outlet of Bank of the Philippine Islands and correspondent French bank Banque d’Escompte that serves some 1,000 Filipino customers monthly.
And since Filipinos in host countries like France have started queuing to new remittance companies that have partner banks in the Philippines and in the host country, Filipinos in France, says another set of data from the BSP, have remitted an eight-year-high of $54.48 million in 2007 (from $15.42 million in 2000).
Banco de Oro, BPI, Philippine National Bank (which just re-opened in 2006), Allied Bank, and Metrobank are the Philippine banks that serve Filipinos in Paris.
Remittance charges, Philippine ambassador in Paris Jose Abeto Zaide told the OFW Journalism Consortium, are among the reasons why Filipinos send through informal channels.
Remittance charges of banks in 2006 were €15 “and the three-Euro reduction this year was news,” Zaide said.
Melinda says she only sends through padala whenever she and her daughter Abby go to the Philippines every July while avoiding the summer heat of Europe.
But when Melinda’s back in her home located in a district just outside of Paris, “I have no choice but go to the bank.”
That makes her siblings here and executives of a Philippine bank’s branch in Paris, happy every month.
Table 1: Overseas Filipinos’ cash remittances and their channels, 200-2007 (in million US dollars)
Year | Thru Banks 1/ | Non-Banks | Global 2/ | % of non-banks to total 3/ |
2000 | 6,050 | 0 */ | 6,050 | -- |
2001 | 6,031 | 1,690 | 7,721 | 21.88 |
2002 | 6,886 | 1,721 | 8,607 | 19.99 |
2003 | 7,579 | 1,514 | 9,093 | 16.65 |
2004 | 8,551 | 1,710 | 10,261 | 16.66 |
2005 | 10,689 | 1,603 | 12,292 | 13.04 |
2006 | 12,761 | 1,276 | 14,037 | 9.09 |
2007 p/ | 14,450 | 506 | 14,956 | 3.38 |
Banks’ Past Abuses Still Haunt Migrant Savings Pool – ILO Study
By Isagani De La Paz
MANILA–MIGRANT workers have yet to be convinced errant banking processes are things of the past before they see the veracity of pooled savings for investment in development projects, a recent study by the International Labor Organization revealed.
The study titled “The Contribution of Migrant Organisations to Income-Generating Activities in their Countries of Origin” focused on the experience of the Philippines in developing money from overseas Filipino workers as pooled investments.
The study placed under a microscope the experience of the nonprofit Economic Resource Center for Overseas Filipinos in promoting time deposits in microfinance rural banks in the Philippines.
“The possibility to save at an MFI [microfinance institutions] is still not widely known among Filipino migrants,” the study said citing the Ercof experience.
Ercof said attracting migrant workers to put money in time deposit schemes in Philippine banks have been a bumpy ride since they began such moves four years ago.
One culprit, according to Ercof executive Ildefonso Bagasao, came from the Frankenstein Philippine banks crafted themselves.
“Another reason why until today no new savings have been sent collectively for microfinance activities in the Philippines are reservations against rural banks among Filipino migrant workers due to past abuses and closures,” Bagasao was quoted in the ILO study as saying.
Ercof said since its formation a decade ago in Geneva, Switzerland, it has been trying to establish a migrant bank to capture remittances and use it for local economic development in the Philippines.
Having a significant share in gross domestic product, remittances fuel the Philippine economy as it enlarges the purse of families here.
The ILO study said that if remittances as pooled investment are used for community development, feeder roads, rural dispensaries, fire engines and primary schools, then public resources can be redirected to other uses, the ILO study said.
But the money sent on a collective basis, the study argues, “account for only a small fraction of total remittances”.
Potentials
THE potential of tapping that fund hasn’t been lost on Ercof.
But a lot of hurdles await Ercof.
In an electronic mail, Bagasao said that linking rural banks or MFIs and migrant remittances remains a challenging area for advocacy.
“This is mainly because of little awareness on the part of the public, including OFWs on microfinance and rural bank products.”
Bagasao added MFIs also fail to reach out to OFWs, one of several problems plaguing the sector.
For example, the Rural Bank Association of the Philippines was embroiled in a lengthy leadership crisis that began almost immediately after Ercof tapped it as a partner in 2006.
Bagasao told the OFW Journalism Consortium they moved to partner with the Rbap after successfully convincing two groups of five and 16 overseas Filipinos in Luxembourg and the Netherlands to open time deposits in two microfinance banks in Bukidnon and Misamis Oriental.
The groups sent the money collectively in order to save costs. An overall amount of 6,900 Euro (equaling P0.55 million at that time) were locked in for five years, exempting it from interest income tax and slapped with an interest rate is 8.5 percent annually.
As MFIs are charged about 12 percent annually for credits from commercial banks, time deposits are cheaper sources for them to obtain funds.
The MFIs can then re-lend the money to micro-entrepreneurs.
Ercof’s 2005 newlsetter the Migrantrepreneur wrote that the migrants’ deposits helped to create at least 100 enterprises per year (at P5,000 capital per micro-entrepreneur) in the areas where the two banks operate.
Term deposits are also a stable source of funding for the MFIs: because the funds are available for a set period of time they facilitate liquidity and gap management, the ILO study noted.
However, Bagasao said a certain volume of time deposits is necessary to obtain a significant impact; hence their attempt to partner with Rbap.
Support
THE success to Ercof’s and other advocates’ initiatives rests mainly on government action –or inaction, in some cases, according to the ILO study.
Governments can set incentives to attract migrants to pool remittances or help MFIs with development projects capture a significant portion of the money, the study said.
“Some governments need first and foremost to build trust or even overcome hostility with (parts of) their diaspora.”
Remittances reflect migrant workers’ “continuing attachment to the country of origin, and possibly a disposition to eventually return home” and the ILO study said governments should hinge on that motivation.
“Governments in countries of origin can lead different policies to keep their diaspora attached to the country of origin.”
But the ILO study noted governments can only do this if it gains support from migrant organizations and other non-state related stakeholders.
Governments should avoid patronizing migrant organizations.
“When promoting all types of migrant organizations’ projects, governments also need to take care to not neglect poorer areas with less migration and therefore less remittances and help through migrant organizations.”
Ercof, however, said rural banks’ moves to promote self-governance, benchmarking, transparency and prudent community banking practices still “remains to be seen if this will convince Filipino migrants”.
Ercof added additional actions can contribute to that: expanding the network of MFIs partnering with migrant groups; professionalism; and, safety of deposits.
“Professionalism is a key to make saving deposits in MFIs attractive to migrants while the safety of deposits is primordial.”
“It is …very important that migrants can trust the MFI for its remittances transfer offer to be successful.”
This article is free, but to publish, broadcast, rewrite, or redistribute this, please write or email the OFW Journalism Consortium
MANILA–MIGRANT workers have yet to be convinced errant banking processes are things of the past before they see the veracity of pooled savings for investment in development projects, a recent study by the International Labor Organization revealed.
The study titled “The Contribution of Migrant Organisations to Income-Generating Activities in their Countries of Origin” focused on the experience of the Philippines in developing money from overseas Filipino workers as pooled investments.
The study placed under a microscope the experience of the nonprofit Economic Resource Center for Overseas Filipinos in promoting time deposits in microfinance rural banks in the Philippines.
“The possibility to save at an MFI [microfinance institutions] is still not widely known among Filipino migrants,” the study said citing the Ercof experience.
Ercof said attracting migrant workers to put money in time deposit schemes in Philippine banks have been a bumpy ride since they began such moves four years ago.
One culprit, according to Ercof executive Ildefonso Bagasao, came from the Frankenstein Philippine banks crafted themselves.
“Another reason why until today no new savings have been sent collectively for microfinance activities in the Philippines are reservations against rural banks among Filipino migrant workers due to past abuses and closures,” Bagasao was quoted in the ILO study as saying.
Ercof said since its formation a decade ago in Geneva, Switzerland, it has been trying to establish a migrant bank to capture remittances and use it for local economic development in the Philippines.
Having a significant share in gross domestic product, remittances fuel the Philippine economy as it enlarges the purse of families here.
The ILO study said that if remittances as pooled investment are used for community development, feeder roads, rural dispensaries, fire engines and primary schools, then public resources can be redirected to other uses, the ILO study said.
But the money sent on a collective basis, the study argues, “account for only a small fraction of total remittances”.
Potentials
THE potential of tapping that fund hasn’t been lost on Ercof.
But a lot of hurdles await Ercof.
In an electronic mail, Bagasao said that linking rural banks or MFIs and migrant remittances remains a challenging area for advocacy.
“This is mainly because of little awareness on the part of the public, including OFWs on microfinance and rural bank products.”
Bagasao added MFIs also fail to reach out to OFWs, one of several problems plaguing the sector.
For example, the Rural Bank Association of the Philippines was embroiled in a lengthy leadership crisis that began almost immediately after Ercof tapped it as a partner in 2006.
Bagasao told the OFW Journalism Consortium they moved to partner with the Rbap after successfully convincing two groups of five and 16 overseas Filipinos in Luxembourg and the Netherlands to open time deposits in two microfinance banks in Bukidnon and Misamis Oriental.
The groups sent the money collectively in order to save costs. An overall amount of 6,900 Euro (equaling P0.55 million at that time) were locked in for five years, exempting it from interest income tax and slapped with an interest rate is 8.5 percent annually.
As MFIs are charged about 12 percent annually for credits from commercial banks, time deposits are cheaper sources for them to obtain funds.
The MFIs can then re-lend the money to micro-entrepreneurs.
Ercof’s 2005 newlsetter the Migrantrepreneur wrote that the migrants’ deposits helped to create at least 100 enterprises per year (at P5,000 capital per micro-entrepreneur) in the areas where the two banks operate.
Term deposits are also a stable source of funding for the MFIs: because the funds are available for a set period of time they facilitate liquidity and gap management, the ILO study noted.
However, Bagasao said a certain volume of time deposits is necessary to obtain a significant impact; hence their attempt to partner with Rbap.
Support
THE success to Ercof’s and other advocates’ initiatives rests mainly on government action –or inaction, in some cases, according to the ILO study.
Governments can set incentives to attract migrants to pool remittances or help MFIs with development projects capture a significant portion of the money, the study said.
“Some governments need first and foremost to build trust or even overcome hostility with (parts of) their diaspora.”
Remittances reflect migrant workers’ “continuing attachment to the country of origin, and possibly a disposition to eventually return home” and the ILO study said governments should hinge on that motivation.
“Governments in countries of origin can lead different policies to keep their diaspora attached to the country of origin.”
But the ILO study noted governments can only do this if it gains support from migrant organizations and other non-state related stakeholders.
Governments should avoid patronizing migrant organizations.
“When promoting all types of migrant organizations’ projects, governments also need to take care to not neglect poorer areas with less migration and therefore less remittances and help through migrant organizations.”
Ercof, however, said rural banks’ moves to promote self-governance, benchmarking, transparency and prudent community banking practices still “remains to be seen if this will convince Filipino migrants”.
Ercof added additional actions can contribute to that: expanding the network of MFIs partnering with migrant groups; professionalism; and, safety of deposits.
“Professionalism is a key to make saving deposits in MFIs attractive to migrants while the safety of deposits is primordial.”
“It is …very important that migrants can trust the MFI for its remittances transfer offer to be successful.”
This article is free, but to publish, broadcast, rewrite, or redistribute this, please write or email the OFW Journalism Consortium
Philippines Receives $250 Million ADB Loan to Strengthen Fiscal and Governance Reforms
The Asian Development Bank is extending a $250 million loan to strengthen the policy reform initiatives of the Philippine government for fiscal management, investment climate and social sectors.
The loan is a second of a three-part Development Policy Support Program aimed at helping the Philippines achieve its medium-term development goals. The first DPSP loan was approved in February 2007.
Since then, the Philippine government has implemented a series of measures to address the fiscal imbalance, resulting in improvement in the fiscal situation and macroeconomic stability. These measures provided much needed funds for increased spending on the social sector and infrastructure in 2007. The measures also contributed to the Philippines’ best macroeconomic performance in over 30 years.
However, the surge in commodity prices in early 2008, volatility in US financial markets, and the economic slowdown in developed economies have negatively affected the Philippine economy, with a sharper-than-expected slowdown in GDP growth and a spike in inflation to a 17-year high level in August.
“Despite the negative impact, the Philippine economy has weathered the external shocks well compared to some of our other member economies, and also compared to previous external shocks to the Philippines economy,” said Kelly Bird, an Economist in ADB’s Southeast Asia Department. “This resiliency is due to the government’s commitment to fiscal discipline and key reforms including tax reforms, especially on VAT, the absence of fuel subsidies in the national budget, previous trade reforms and synchronized fiscal and monetary policies.”
The external shocks will challenge the government’s resolve to maintain fiscal and macroeconomic stability and performance. At the same time, it is important to protect spending in the social sectors to help poor and vulnerable families, and achieve the country’s longer term development objectives.
“Responding to the recent developments in the global economy, the second loan addresses these issues through greater flexibility in fiscal policy in 2008 and 2009, further enhancement in tax revenue collection, and support for the government’s conditional and targeted cash transfer program currently piloted as a way to mitigate the worst effects of these shocks to the poor,” Mr. Bird added.
The conditional cash transfer program and broader social protection reforms are important as ADB preliminary research shows only about one third of the poor have access to social assistance.
The DPSP also includes a set of measures to strengthen the investment climate with focus on reducing red tape, support for infrastructure policy and rural development.
A policy and advisory technical assistance grant of $800,000 is included in the loan, to support public expenditure reform initiatives at the Department of Budget and Management. This will be a multi-year exercise over a three-year period.
The third DPSP loan is expected to be processed in 2009 and submitted for ADB Board consideration upon the completion of the second loan.
Businesses Seek Strategic Management Tools
Strategic tools essential to drive growth, says JDA Software country manager
Increased commodity and service costs due to soaring oil prices and intense competition are driving Philippine businesses to find cost-effective ways to predict and meet the needs of their customers, said the top Philippine executive of a global software company. The macro- and microeconomic impact of the global financial crisis on the local markets are now apparent and businesses are adjusting to optimize resource and supply solutions.
The mounting issue with tainted Chinese products is also affecting trade, as China is a major source of commodity supplies, from food to manufactured goods. Philippine businesses are eyeing new retail, supply chain, and service management solutions to maximize revenue.
“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 macroeconomic 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.”
Increased commodity and service costs due to soaring oil prices and intense competition are driving Philippine businesses to find cost-effective ways to predict and meet the needs of their customers, said the top Philippine executive of a global software company. The macro- and microeconomic impact of the global financial crisis on the local markets are now apparent and businesses are adjusting to optimize resource and supply solutions.
The mounting issue with tainted Chinese products is also affecting trade, as China is a major source of commodity supplies, from food to manufactured goods. Philippine businesses are eyeing new retail, supply chain, and service management solutions to maximize revenue.
“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 macroeconomic 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 retailers and manufacturers forecasts according to buying behavior across demographics, geography, historical sales information, current market data, and buying trends, resulting in optimized supply and delivery processes.
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 percent to 70 percent while increasing service levels”
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, 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," Grupta said.
JDA solutions are used by more than 5,550 retailers and manufacturers 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.
CBRE Executives Present Philippine Real Estate Updates
Full-service real estate services firm CB Richard Ellis (CBRE) Philippines recently gave a presentation at the Korean Chamber of Commerce of the Philippines (KCCP) Seminar on Real Estate at the Makati Sports Club. CBRE Chairman Rick M. Santos and CBRE General Manger Trent Frankum discussed the current state and prospects of the Philippine real estate to an audience consisting of Korean businessmen and KCCP members and friends. Photo shows KCCP President Jae J. Jang, Santos, Frankum, and CBRE Legal Director Atty. Danilo Cortina.
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