PH SPOTLIGHT: How to raise pigs and make an odorless pigpen (babuyang walang amoy)

So how can one raise pigs well? Paano nga ba magpalaki ng baboy? 

In the past, when we visit our hometown, we were able to see real live piglets being conceived manually by the local folks. This brought me the question, is it really hard to raise pigs? Is it costly?

The video below isn't about snorting or what (haha). It's about making an odorless pigpen (babuyang walang amoy) using the most updated technology.

Video Courtesy: Youtube channel PinoyHowTo

PH improves in ease of doing business! Check out the largest companies in the Philippines.

Recently, the Philippines was heralded by the World Bank as the most improved country in terms of Ease of Doing Business ranking. The Philippines jumped 30 spots from 138th to 108th this year. (Wow!)

This 30-spot jump was the biggest improvement for any country in the world this year. This could be accredited to gains in the following indicators: Resolving Insolvency indicator (where PH jumped from 165th to 100th), Getting Credit, Electricity, Paying Taxes, Cross-Border Trading, Dealing with Construction Permits, and Registering Property.

Seems like the PH is the up and coming roaring tiger cub economy of the century, to follow the lead of the Four Asian Tigers - Singapore, Hong Kong, Taiwan and South Korea. It's perhaps the best time to know which PH companies are creating this wave of sustained economic growth.

 

Would you know which companies are the largest in the Philippines? Well, according to a list made by Forbes in April 2013, eight (8) companies made it to the list of 2000 largest companies in the world.

 San Miguel Corporation leads the group of 8 major companies that would somehow drive the economic future of the Philippines. It's then followed by tycoon Henry Sy's SM Investments.

The list of largest companies in the Philippines are as follows:

1. San Miguel

Rank: 694

Sales: $16.6 B

Assets: $0.7 B

Profits: $25.1 B

Market Value: $7 B

2. SM Investments

Rank: 915

Sales: $5.3 B

Assets: $0.6 B

Profits: $13.6 B

Market Value: $16.6 B

3. PLDT

Rank: 1060

Sales: $4 B

Assets: $0.9 B

Profits: $9.9 B

Market Value: $15.1 B

4. BPI

Rank: 1142

Sales: $1.4 B

Assets: $0.4 B

Profits: $23.9 B

Market Value: $9.1 B

5. Manila Electric

Rank: 1308

Sales: $6.8 B

Assets: $0.4 B

Profits: $5.3 B

Market Value: $9.2 B

6. Aboitiz Equity Ventures

Rank: 1642

Sales: $1.6 B

Assets: $0.5 B

Profits: $4.6 B

Market Value: $7.8 B

7. Metropolitan Bank and Trust

Rank: 1666

Sales: $1.5 B

Assets: $0.3 B

Profits: $21.7 B

Market Value: $6 B

8. Ayala

Rank: 1784

Sales: $2.5 B

Assets: $0.3 B

Profits: $11.9 B

Market Value: $8.2 B

Smart, Meralco, Shell, Chevron, Nestle make it to top of 500 non-individual (corporate) taxpayers list

Telecommunications giant Smart, electric utility and distributor Meralco, oil titans Shell and Chevron, and food and beverage giant Nestle led the list of top non-individual (company) taxpayers of 2011 in the Philippines. The list was released by BIR to give hint as to which PH companies have paid less and which companies have paid accordingly in 2011.

Image, Data Courtesy: Inquirer, BIR

The full list of top 2011 PH non-individual (company) taxpayers is found here. The top 20 corporate taxpayers are as follows:

1 001901673-000 SMART COMMUNICATIONS INCORPORATED - P10,235,358,541.64

2 000101528-000 MANILA ELECTRIC COMPANY "MERALCO" - P8,302,481,339.38

3 000662551-000 SHELL PHILIPPINES EXPLORATION, B.V, - P6,367,809,783.82

4 206136596-000 CHEVRON MALAMPAYA LLC - P6,309,861,723.00

5 000421786-000 NESTLE PHILIPPINES INC - P4,886,077,359.00

6 006807251-000 SAN MIGUEL BREWERY INC. - P4,775,481,657.84

7 000768480-000 GLOBE TELECOM, INC. - P4,522,451,208.31

8 007515588-000 PMFTC INC - P3,709,288,593.70

9 000168801-000 PETRON CORPORATION - P2,620,598,749.07

10 000283731-000 PHILEX MINING CORP - P1,876,747,468.50

11 004470601-000 FIRST GAS POWER CORPORATION - P1,492,555,812.60

12 000164757-000 PILIPINAS SHELL PETROLEUM CORPORATION - P1,318,172,492.44

13 005038428-000 MANILA WATER COMPANY, INC. - P1,287,736,959.20

14 003841103-000 TEAM SUAL CORPORATION - P1,227,008,548.06

15 000342744-000 UNILEVER PHILIPPINES,INC. - P1,020,290,189.70

16 000887972-000 PHILIPPINE AMUSEMENT AND GAMING CORPORATION - P960,262,390.46

17 000237540-000 LAFARGE REPUBLIC, INC. - P901,299,306.06

18 005017501-000 SAN ROQUE POWER CORPORATION - P885,925,077.00

19 238684383-000 EMPERADOR DISTILLERS, INC. - P863,017,104.00

20 004625830-000 CITRA METRO MANILA TOLLWAYS CORPORATION - P856,585,600.86

Good News: PH gets first-ever investment grade

Photo Courtesy: HopeAndFail

A report from ABS-CBNNews has confirmed that the Philippines got its first-ever investment grade debt rating today (Wednesday), as Fitch Ratings gave the country a 'BBB-' with a stable outlook.

"The Philippine economy has been resilient, expanding 6.6% in 2012 amid a weak global economic backdrop. Strong domestic demand drove this outturn," Fitch said.

Fitch, however, expects the PH economy to slow down to 5.5% this year, lower than government target growth of 6-7% growth.

The Philippines still awaits two other internationaly recognized credit ratings agencies' provision of investment grade ratings - one from Standard & Poor's and the other from Moody's Investors Service, which both rate the country a notch below investment grade.

S&P awarded the Philippines a BB+ with a positive outlook, while Moody's gave it a Ba1 with a positive outlook

What does investment grade mean?

There are many dimensions of the term investment grade. Investopedia defines investment-grade for a company as the following:

Investment grade refers to the quality of a company's credit. In order to be considered an investment grade issue, the company must be rated at 'BBB' or higher by Standard and Poor's or Moody's. Anything below this 'BBB' rating is considered non-investment grade. If the company or bond is rated 'BB' or lower it is known as junk grade, in which case the probability that the company will repay its issued debt is deemed to be speculative.

Investment grade, in the context of the country's ability to pay off its debts, means that the country is likely able to meet its obligations to creditor banks and other financial institutions. This means that the Philippines will be able to secure a spot in terms of financial investments (FDIs) and loan with relatively lower interests since there's no speculation it couldn't pay off its debts, as seen in the Aquino administration's continuous allotment of a big chunk of the government budget to paying off (bad) debts, in order for the country to settle its accounts and eventually be guaranteed access to more international funding due to its high reputation (investment grade).

Furthermore, financial dictionary defines investment grade as an indicator of a corporate bond's "creditworthiness and likelihood of default".

11 Filipino billionaires in Forbes 2013 list, mall tycoon Henry Sy leads

As the economy and stock market of the Philippines progressed and outperformed others, 11 Filipinos made it to the Forbes Magazine 2013 global billionaires' list, with five more Filipino billionaires added from a total of six last year.

Number 1 Filipino tycoon and business magnate Henry Sy, and his family, ranked 68th on the list with a net worth of $13.2 billion as of March 2013.

"The Philippines' richest man Henry Sy saw his fortune swell by more than $5 billion as shares of his holding firm SM Investments, the country's most valuable company, surged by over 50 percent, fueled by reports that it may merge its property units," Forbes said.

Lucio Tan, owner of tobacco, alcohol, airline and real estate firms, and his family ranked second in the Filipino billionaires list with a net worth of $5 billion. 

The new members of the billionaires' list are this year are Consunji and family, Ty and family, the Co couple, Coyiuto, Tan Caktiong and family, and Gotianun and family. 

Meanwhile, the biggest gainer title goes to Enrique Razon who debuted in the billionaires list just last year. Razon, owner of International Container Terminal Services (ICTS) which purchased various ports worldwide, saw his wealth hike by over $3 billion after Bloomberry Resorts,  his hotel and casino venture, joined the Philippine Stock Exchange.

The names and ranks of the Filipino billionaires worldwie in 2013 are as follows:

1. No. 68 - Henry Sy ($13.2 billion)

2. No. 248 - Lucio Tan ($5 billion)

3. No. 258 - Enrique Razon Jr. ($4.9 billion)

4. No. 345 - Andrew Tan ($3.95 billion)

5. No. 503 - David Consunji and family ($2.8 billion)

6. No. 554 - George Ty and family ($2.6 billion)

7. No. 736 - Lucio and Susan Co ($2 billion)

8. No. 931 - Robert Coyiuto, Jr. ($1.6 billion)

9. No. 1031 - Tony Tan Caktiong and family ($1.4 billion)

10. No. 1175 - Andrew Gotianun and family ($1.2 billion)

11. No. 1175 - Roberto Ongpin ($1.2 billion)

Forbes noted that all the 1,426 billionaires of the world saw an increase in its aggregate net worth from $4.6 trillion to $5.4 trillion, which is roughly near (hundreds of billions in dollars) the gross domestic product (GDP) of Japan or the GDPs of France and Brazil combined in 2011.

Together, the net worth of the Philippine billionaires this year totaled to $39.85 billion, around 16.75 percent of the Philippine economy in 2012.

Some facts about the economy of the Philippines

According to World Bank country director Motoo Konishi, the Philippines "is no longer the sick man of East Asia, but the rising tiger." True as it may seem, PH has registered one of the highest growth rates in Asia since the Aquino administration started.

However, could the issue of 'inclusive' growth several years ago still be the same issue of today? There must be some truth in it. Here are some facts which that economic gains do not trickle down the bottom classes.

1. In 2009, about 25 million Filipinos or 1/4 of the population lived on $1 dollar a day or less.

2. In 2011, the 40 richest families in the Forbes wealthy list accounted for 76 percent of the total gross domestic product (GDP) of the Philippines. That's very high compared to Thailand's 33.7 petcent, Malaysia's 5.6 percent, and Japan's 2.8 percent.

3. In 2012, the two wealthiest people in the Philippines were worth a combined $13.6 billion, which is approximately six percent of the Philippine economy.

4. Minimum wages have not been increased to a point that could significantly impact the lives on the lowest social strata, despite corporate gains obtained by owners of profitable Philippine companies and corporations. Hence, the owners get increases, yet the workers don't.

5. Politics is a game-changer, with regards to effectiveness of public policy that negatively impacts PH capitalists and business owners.

6. Some sectors of the Philippine economy are under monopoly or duopoly; thus, prices of commodities (may it be goods or services) can easily be controlled and eventually directly affect the customer base - a big portion of which is powered up by the middle class.

Japan manufacturers transfer to the Philippines

Japanese manufacturers transfer to the Philippines due to the country's young, English-speaking workforce following rising business risks that lower their confidence at home such as disasters and a rising yen.

Latest to invest are electronics firm Furukawa Electric Co. Ltd. and adhesive maker Cemedine Co. Ltd who injected $12.9 million or almost P500 million in initial capitalization alone.

Also building new facilities Power Rangers and Gundam toy maker Bandai (more than P350 million), camera and projector optical lens maker Fujifilm Corp. (approx. P1.1 billion), and electronics component maker Murata Manufacturing Co. Ltd. (no less than P300 million).

Companies expanding their presence in the Philippines include Canon Inc., and Brother Industries Ltd. with estimated initial investments of P3 billion and P2 million, respectively. 

Japan remains the biggest investor in the Philippines with total investments of P77.4 billion in 2011

MRT 3 expansion, major infrastructure projects approved

It's all systems go for the purchase of 52 more train cars for the Metro Rail Transit Line 3 (MRT 3) in the P8.63 billion MRT 3 Capacity Expansion Project, which was approved by the board of the National Economic and Development Authority (NEDA). This was done to increase the capacity of MRT, in response to future serious overloading or full-capacity problems. 

Ten (10) other major infrastructure projects, seen as big boosters of Philippine economic growth in the coming years, were also given approval. The approved proposals, which came from the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH), include: 

• P9.76 billion Light Railway Transit Line 2 East Extension Project - extension of LRT 2 coverage by another 4.19 kilometers from the existing Santolan Station to the Masinag Junction (intersection of Marcos and Sumulong highways) 
• P4.799 billion Bicol International Airport Project - construction of a new facility in Daraga, Albay; replacement of current Legazpi Airport 
• P7.44 billion New Bohol (Panglao) Airport Project - construction of a new airport at Panglao Island; replacement of existing Tagbilaran facility 
• P6.12 billion Bridge Construction Acceleration Project for Calamity-Stricken Areas Phase II - replacement of 66 temporary bridges with steel ones across 15 regions 
• P8.4 billion National Roads Bridge Placement Project - construction and replacement of 133 bridges across the country; use of UK-made pre-fabricated double-lane modular steel bridges 
• P5-billion Funding for Flood Control Projects - creation of a flood management master plan for Metro Manila, rehabilitation of dikes, seawalls strengthening, river dredging, and construction of river control works  
• P4.97 billion Restructuring of the Bridge Construction and Replacement Project - extension of the implementation of an existing project from January this year to December 2015 
• P3.91 billion Change in Scope, Increase in Cost and Implementation Extension for the Mindanao Roads Improvement Project - change of implementation period from January this year to December 31, 2014 
• P5.72 billion Strengthening of Angat Dam and Dike Project - rehabilitation of 44-year-old dam and its embankment structures; implementation by state-run Metropolitan Waterworks and Sewerage System (MWSS) 
• P2.60 billion Agus 6 Hydroelectric Power Plant Uprating Project - shift in financing to on-lending by the national government from state-run Power Sector Assets and Liabilities Management Corp. (PSALM) 

Source: Interaksyon

MVP offers to buy MRT

MANILA, Philippines—Local infrastructure giant Metro Pacific Investments Corp. (MPIC) has offered to buy the government’s stake in the Metro Rail Transit (MRT) 3 train line traversing Epifanio de los Santos Avenue for $1.1 billion.

The amount will be enough to settle the government’s outstanding debt to MRT Corp. bond holders, MPIC said.

The acquisition will give the group, chaired by businessman Manuel V. Pangilinan, 100-percent ownership of the company that holds the right to operate and manage the train line until 2025.

In a letter to Finance Secretary Cesar Purisima and Transportation Secretary Jose de Jesus, MPIC offered to buy shares in MRT Corp. currently held by state-owned lenders Land Bank of the Philippines and Development Bank of the Philippines.

MPIC was earlier given control over a 29-percent stake in MRT Corp. by the block’s owner, Fil-Estate Corp. of businessman Robert John Sobrepeña.

MPIC said it planned to spend $300 million to increase the MRT’s capacity to 700,000 passengers a day from the current 350,000 a day.

The capacity expansion would be completed in two to three years, according to the proposal letter, a copy of which was obtained by the Inquirer.

MPIC said it was willing to accept a lower rate of return on its investment if it would acquire the MRT stake from the government. It added that it would not seek any government guarantee for the project.

MPIC, however, urged the government to extend the build-operate-transfer contract by another 15 years to 2040 to make it financially viable.

The government stands to save $150 million in annual subsidies if it accepted the proposal, the letter said.

The proposal was offered as an alternative to the way the government wanted to privatize the MRT, which was to bundle it with the Light Rail Transit (LRT) line 1 that runs from Baclaran in Pasay City to Roosevelt, Quezon City.

The letter said any company that would be awarded the contract for the two train lines would have to assume responsibility of the lines’ debt obligations totaling about $2.6 billion.

Any company that wins the contract for both lines would have to spend a lot of money before even starting to improve the train line’s facilities. The letter said this expense would then be passed on to the riding public, raising train fares to as much as P100 a ticket.

In an interview, Transportation Undersecretary for rail transport Glicerio Sicat said the government was looking at two methods of privatizing the MRT line.

The first was for the government to take over the train system, improve its operations and facilities before finally bidding out a contract for the train’s operations to private parties.

“However, this method will take a long time and will be very expensive,” Sicat said.

The second method, Sicat said, was to look for a private company willing to acquire the government’s stake in MRT. The government would not have to spend a single peso and pass on the responsibility to the private investors.

MPIC controls Hong Kong-based First Pacific Co. Ltd.’s interest in the Philippines, including investments in telecommunications, infrastructure, healthcare and power generation and distribution.

Source: Paolo Luis G. Montecillo, Philippine Daily Inquirer

Philippine stocks rise at start of 2011

With a high expectation for a gracious, saving year for equities, investors snapped up stocks leading to a New Year rise in Asian indexes, including that of the Philippine Stock Exchange (PSE) on Monday, this year's first trading day.

PSE's index rose up 14.07 points or 0.33 percent ending a good 4,215.21. The biggest gaining sector was the industrial sector, firming up with 2.54 percent. Value turnover was relatively low at 3.825 billion due to the holiday hangover.

Meanwhile, 79 advancers beat 54 decliners and 30 stocks remain unchanged.

In-demand stocks came from Manila Electric Co., Metro Pacific Investments Corp., Cyber Bay Corp., Aboitiz Power Corp., San Miguel Corp., Metropolitan Bank & Trust Co., SM Investments Corp., Nickel Asia Corp., Petron Corp., First Philippine Holdings Corp., Cebu Air Inc., San Miguel Corp. preferred shares and Megaworld Corp.

Dealers said investors hastily took up shares of Meralco and MPIC, the two most actively traded stocks for this day, on expectations that the First Pacific group could extract more values out of Meralco.

The decliners include Alliance Global Group Inc., DMCI Holdings Inc., Atlas Consolidated Mining & Development Corp., Energy Development Corp., Philippine Long Distance Telephone Co., Philex Mining Corp. and Ayala Land Inc.

Japan to invest $5B in PH

According to the Inquirer website, an enthusiastic President Benigno Aquino III announced a large flow of investment offers amounting to $5.45 billion in projects, which includes the expansion of power plants and construction of a bioethanol facility.

Mr. Aquino reported a minimum $2.85 billion in new investments and $2.6 billion in yet-to-be-firmed-up business deals from Japanese investors whom he met in Yokohama before attending the Asia-Pacific Economic Cooperation (APEC) leaders’ summit.

Itochu is investing $122 million in the construction of a bioethanol plant in the province of Isabela.

Marubeni is allocating $1 billion for the expansion of the power plant in Sual, Pangasinan. Another $1 billion is allotted for the power plant in Pagbilao, Quezon, and $600 million for the power plant in Calaca, Batangas.

Toshiba is also setting aside $133 million for the expansion of its electronics products in the country.

Mr. Aquino especially enthused Itochu’s plan to develop 11,000 hectares of sugar plantation in Isabela for bioethanol production which may generate 18,000 jobs in two years and help 15,000 farmers.

Aside from the $2.85-billion investment offers, new “possible projects” worth some $2.6 billion are on the table.These projects include the expansion of the Metro Rail Transit Line 7, Light Rail Transit 2, and digital TV system and equipment.

To read the detailed report, click here.

RP Economy at Record High 7.3%

Arroyo's presidency has bear fruits, bringing in an economic pouring of 7.3% in its national growth from outrageous election spending, an okay-rise in remittances from abroad, and improved business and consumer confidence.

Both the GDP and GNP of the country outpaced expectations.

Augusto Santos, director general of NEDA, stated that “the improvement in the global economy, brighter economic outlook, increased business and consumer confidence, and election-related spending all contributed to the resurgence in economic activities."

The industrial sector, which embraces the fields of manufacturing, utilities, mining and quarrying, grew 15.7% during the first quarter, way better than last year's contraction of 2.6%. The services sector, which includes the growing business process outsourcing sub-sector, also increased to 6.1% in the first quarter. However, the agriculture, forestry and fisheries sector was hit largely due to the dry spell, contracting at 2.5%.

Santos suggested that to prevent stagnant growth or probable decline, the government has to increase spending on infrastructure, social services and education.

For more information, click on this link.