Philippines’ growth, real or imagined?

THE Philippine economy is growing and will continue to grow for as long as President Gloria Macapagal Arroyo, a Georgetown-educated economist, is in charge.

So goes the line that the Arroyo administration has been pushing and which it hopes will result in a resounding victory for her party in the coming May elections.

Mrs. Arroyo herself is not a candidate, but the general consensus is that the senatorial elections will be a gauge of her popularity, or lack thereof.

A win by the majority of her candidates means that the people are silently supporting her policies which are aimed at continued growth of the economy.

For the most part, there are indications that our homeland’s economy is no longer in bad shape.

The Filipino American community, which has kept its ties with the motherland, shares some of the responsibility through the huge volume of remittances sent back home month after month, year after year.

Now comes an Asian Development Bank report that says the claims of Mrs.

Arroyo may be lacking a solid foundation.

The report released late last month says that the Philippines is not even keeping up with the growth in the region.

Worst of all, the expansion of the country’s gross national product will not translate into increased employment.

The Philippine population continues to grow at a steady clip creating a work force that still will not be 100 percent employed anytime in the near future.

The ADB report paints a less-than-bright scenario for the Philippines.

Last year, the region grew by 8.3 percent, the healthiest in more than a decade.

The Philippines’ growth was far, far less. Close to three percentage points less, in fact.

Simply put, the country is still falling behind its neighbors.

The country is still an economic laggard.

The country may as well retain its old title of Sick Man of Asia.

An exaggeration? Not really.This year, the Asian economies are projected to grow by 7.6 percent on the average.

Next year, the growth will be 7.7 percent.Closer to home, the Southeast Asian economies might not grow as much as the rest of Asia, but such countries as Singapore, Malaysia, Indonesia, Thailand and Vietnam are still expected to outpace the Philippines.

The ADB projects Southeast Asia’s economies to grow by 5.6 percent and 5.9 percent, this year and next, respectively.

The Philippines, on the other hand, will only expand by 5.4 percent and 5.8 percent this year and next.

The Arroyo administration’s biggest mistake is taking the country’s growth out of context.

Since all the economies of the world are inter-connected and inter-related – with the only exceptions being North Korea and to a lesser extent Cuba – there are always winners and losers where growth is concerned.

Countries which fall behind will see their citizens’ quality of life depreciate, while those which do well will naturally appreciate.

So where does the Philippines under GMA stand?Pardon this awful joke, but only as high as her own short physical stature. Growth will be stunted vis-à-vis Asia and Southeast Asia.

If the president of the Philippines wants to claim that she is handling the economy well, she must begin by doing her homework.

Surely the lessons she learned in Georgetown University remain valid.

She must lead the country to a period of sustained high economic growth, reducing unemployment to as close to nil as possible, and eradicating poverty at all cost.

A tall order perhaps, but one that Mrs. Arroyo must be committed to achieving if her presidency is to mean anything in the country’s history.

The Filipino people can forgive her many flaws, but they cannot and should not forgive the lie she is peddling that the Philippine economy is in great shape.

Health and hospital execs to promote medical tourism

From April 30 to May 2, 2007, senior government officials and chief medical directors of premier medical hospitals in the Philippines will be in California for business meetings and presentations on Philippine medical tourism industry.

The participating hospitals are St. Luke’s Medical Center, The Medical City, Makati Medical Center, Capitol Medical Center, and University of Sto. Tomas Hospital, National Kidney and Transplant Institute, Philippine Heart Center and Asian Hospital.

A forum will be held on May 1, Tuesday, from 6 p.m. to 8 p.m., at the Social Hall of the Philippine Center Building, 447 Sutter St., San Francisco, California.

At the forum, Undersecretary Jade del Mundo of the health department will provide an overview of regulatory policies and standards that govern health service delivery in the Philippines.

Ruy Moreno from the health and wellness committee of the taskforce on global competitiveness will share the public-private efforts to make medical tourism easily accessible to the global market.

Dr. Jorge Garcia from premier medical facility Asian Hospital will present the top medical and surgical procedures available for medical tourism in the Philippines today.

With healthcare costs in the U.S. rising rapidly every year, more Americans are looking to countries like the Philippines for their medical care.

Available services range from the simple to the complex, from the cosmetic to the life-saving procedures, such as dentistry, plastic surgery, kidney, ophthalmology, orthopedic surgery and rehabilitation, and cardiovascular.

In 2006, total national health expenses in the U.S. paid for by public and private insurance companies amounted to $2,169.5 billion of which professional services (physician, clinical, dental and others) was about $680 billion.

Add to this the health expenditures of one in six Americans who do not have medical insurance to get an even more staggering number!

Medical tourists can expect to be in safe hands with Filipino medical professionals educated in the best Asian schools, many of whom trained in American and Japanese medical facilities.

The country’s hospitable people and tropical environment make healing a leisurely experience.

And medical tourists get great value for their money, paying only a fraction of medical costs for the same service provided in their countries.

Global Change

The Global Change Program focuses on the impacts of climate change on water supplies, wildlife, the environment, and human society.

In the world of contemporary American politics, the dangers of climate change remain hazy and indistinct. But among scientists a consensus has formed: We must act.

Although there is still much we don't know, an overwhelming majority of scientists who study the issue believe that global warming is already changing our climate, with dangerous and potentially deadly consequences for the future.

The threat of climate change cuts across all of the Pacific Institute's programs and has been a focus of our work from the beginning.

The Global Change program is dedicated to studying the impacts of climate change, educating policymakers about the dangers, and creating real-world solutions to slow or reverse this threat.

This company specializes in credit-challenged debtors

Larry Medina, Mar 28, 2007

LOS ANGELES – Home financing can make you crazy if you’re credit-challenged but in this city there’s one company that can bring back your sanity even when you’re on the verge of losing your mind and even your home.

Recently, the Filipino American Real Estate Professional Association (Farepa) of LA has sought the assistance of Clear Credit Exchange (CCE) to help FilAms in addressing their mortgage and credit concerns.

According to Farepa, CCE specializes in repairing consumer credit reports, debt management and tax relief.

It also deals with bankruptcies to chargeoffs and virtually every credit-related problem.

Hazel Valera, CCE president and chief executive officer, says its success is based on three things: CCE executives believe in what they’re doing, they enjoy what they’re doing, and are committed to helping consumers.

Valera further says that CCE’s services are engineered “from the ground up” with the financial solutions required to assist consumers.

By customizing a financial solutions program to each client’s individual situation, they automatically get the detailed care they deserve to obtain the targeted results.

Much more, they provide education and assistance for credit enhancement, debt management, debt negotiation, debt settlement, rent reporting, credit coaching, credit analysis, credit rebuilding, credit scoring updates, business credit building, and relief from taxes.

For example, explains Valera, in a CCE’s FICO credit score workshop/credit enhancement seminar, CCE’s results tested service utilizes the Fair Credit Reporting Act to remove inaccurate and unverifiable items from your credit reports.

Most consumers in this program have slow payments in the past, collections, judgments, tax liens and even bankruptcies.

Most of CCE’s clients see immediate results in their credit score in as little as 90 days.

Every point matters when you’re trying to obtain financing.

Their jumpstart program, as another example, can buy time to negotiate a 180-day break for consumers to provide some breathing room from monthly payments.

By giving them the time needed and deferring payments to the minimum possible, they can make the financial moves a consumer needs tostart over.

For business owners, they offer a workshop on creating corporate credit.

This service teaches business owners to stop tying up all their personal credit in their respective businesses and to separate business from personal credit by building their own businesscredit profile.

And for real estate professionals, CCE offers a class covering credit scoring, how to save a home sale, how to create a “seasonless” market, the psychology of a debtor, and how to turn debtors into homebuyers through strategic marketing.

“With over 16 years of experience and personal history I am passionate about empowering the community on strategies to overcome negative financial events in their lives,” Valera tells Philippine News.

Recently, she was the guest speaker at a Farepa meeting that covered the break down of credit scoring and what to do when financial hardship occurs.

The tips are practical and works with the system to get clients back on track with integrity and knowledge, Valera narrates.

“I believe that through education presented to professional groups such as realtors, loan officers and Farepa, we can assist more people in the shortest period of time,” she states.

“The real estate industry attracts people who are interested in moving forward in life,” she elaborates.

“Purchasing a home is one of the largest financial moves that a family makes.”Valera is a certified debt arbitrator, credit coach.

She is also the author of “Strength in Numbers: Managing a Winning Credit Score” released July 2007.

A former mortgage and real estate professional, she has 14 years of experience in real estate finance and underwriting.

Valera also conducts training classes for loan officers on how to extend assistance to credit challenged clients instead of turning them away.

Spring Oil posts third

LAST year’s runnerup Tagaytay-Spring Cooking Oil nipped slumping Quezon Villa Anita, 80-77, Sunday to assume solo leadership in the 2007 NBC National Cup basketball tournament at the Tolentino Sports Center in Tagaytay City.

The Cooking Oil Masters of NBC president Nathaniel “Tac” Padilla and league EVP Mayor Bambol Tolentino leaned on Nani Epondulan and Jeff Tajonera to post their third straight victory.

The Firefly/Iligan Crusaders scored a masterful 96-72 win over the visiting Montaña Pawnshop-Davao Jewelers to tie idle Valencia Golden Harvest for second place.

The Crusaders of Mayor Lawrence Cruz broke away in the payoff period enroute to their second victory in the tournament sponsored by Sulpicio Lines, Yahoo Philippines, Spring Cooking Oil, San Miguel Beer, Caltex, Sun Cellular, Firefly Lightings, Molten, Nature’s Spring, Basketball TV and Viva Prime Channel.

The scores:

Spring 80—Epondulan 19, Regalado 12, Mallari 11, Legaspi 7, Marquez 5, Salud 4, Bolocon 3, Reyes 3, Cuenca 0, Muñoz 0.

Quezon 77—Gahol 24, Mendoza 11, Buenaventura 11, Drio 10, Agapito 6, Veranga 6, de Guia 4, Malonzo 3, Gonzales 2, de Leon 0, Vilar 0, Zuniga 0.

Quarters: 23-19, 43-41, 59-59; 80-77.

Security up as Holy Week exodus begins

Security at the country's air and sea terminals were tightened over the weekend as Filipinos started going home to the provinces for the annual Holy Week break.

At the Manila Domestic Airport and Ninoy Aquino International Airport-Terminal 2, officials set up operations counters to ensure the smooth flow of operations.

Alfonso Cusi, general manager of the Manila International Airport Authority, said the coutners will be manned by personnel from the public affairs, engineering and medical departments.

He added that those assigned to the special counters will be there to assist passengers and other guests at the airport, adding that the comfort and safety of travelers will be ensured especially during the Lenten holidays when crowding and long lines are inevitable.

Cusi said additional security personnel will be assigned in various “critical” areas of the facility, from the curbside to the NAIA's departure area.

At the Port of Batangas, authorities said Sunday that some 12,000 tickets were sold for the Saturday departures alone.

(As of now, it’s still manageable but we're expecting at least 20,000 more passengers in the coming days)," said Fe Faytaren, assistant administrative officer of port operator Asian Terminals, Incorporated.

It was learned that most of the passengers at the port will travel on fast-craft vessels bound for Puerto Galera's beaches in Oriental Mindoro province.

Puerto Galera is world-famous for its white sand beaches.

Port authorities, meanwhile, said that they already have tightened security and informed passengers about prohibited items in their luggages.

Port policeman Sherwin Chavez said authorities have already seized some knives from passengers this week despite previous warnings.

(We had warned them ot to bring knives, but some people still bring them),” said Chavez.

The Lenten holidays officially start on Maundy Thursday and end on Easter Sunday for both the public and private sectors.

Private firms, however, have the prerogative of allowing their employees to start their Holy Week break on Holy Wednesday....

OFW, hot money inflows fuel surge in liquidity

Domestic liquidity, a broad measure of money supply and deposit levels in banks, continued to surge in February, fueled by the steady inflow of remittances from overseas Filipino workers (OFWs) and foreign portfolio investments.

The Bangko Sentral ng Pilipinas (BSP) reported that domestic liquidity, also known as M3, grew 22.4 percent in February, only marginally slower than the 22.8 percent growth rate recorded in January.

BSP Governor Amando M. Tetangco Jr. said the growth in February reflected the steady rise in net foreign assets despite the slight slowdown in the expansion of net domestic assets.

"Overseas Filipino workers’ remittances, export earnings as well as foreign direct and portfolio investments continued to drive the sustained growth in foreign assets," Tetangco said.

The surge in foreign exchange inflows - which ultimately translates into more pesos circulating in the local financial system - means that the total amount of money in the system is on a sustained expansion track.

According to the BSP, the growth in credit to both the public and private sectors also contributed to the expansion of domestic liquidity since banks were releasing more funds into the system to their borrowers who, in turn, would spend them.

Tetangco noted that there was a slight slowdown in credit to the public sector from 20.3 percent to 13 percent as well as the private sector whose borrowing slowed down to 4.1 percent from 6.2 percent.

Nevertheless, Tetangco said the BSP was closely monitoring the growth in domestic liquidity which has since become one of the main concerns of monetary authorities despite the apparent resilience of the country’s inflation rate.

Even at this level of expansion, however, Tetangco said the BSP did not consider the domestic money supply as "excessive".

Tetangco has already brushed aside speculations that the BSP was gearing up to undertake non-policy related "tools" to mop up liquidity including the possibility of issuing its own bonds.

"Under our charter, we are allowed to do that under extraordinary circumstances," he said.

According to Tetangco, however, he does not consider the current money supply as excessive or the current conditions "extraordinary".

He said the central bank is already making sure it has ample room for any policy response that would be needed should money supply start affecting its inflation target.

"We want to make sure that the benign inflation environment is maintained over the policy horizon," he said.

Tetangco maintained that the economy has the capacity to absorb the dramatic increase in the demand for money without creating inflation pressures.

Tetangco downplayed the surge, saying that even at this rate, the domestic economy still has the capacity to absorb the liquidity without necessarily triggering a corresponding increase in inflation rate.

"That’s still absorbable," Tetangco said. "There is brisk activity in housing development and real estate in general as well as agriculture," he added.

The BSP has projected the demand for money to grow by an average rate of 14 percent for 2005 and 2006 but Tetangco said the dynamics of the country’s domestic economy is changing faster than expected.

"The sectors that use up liquidity are now bigger than before so they have a bigger absorptive capacity," Tetangco said.

"Even at this level, we see no threat to our inflation target but that doesn’t mean we are not watching it.

We are always watching it."