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Midyear Economic Briefing

  • Central Bank Governor Amando Tetangco about to speak.
  • Central Bank governor Amado Tetangco Jr starts w speech. Recalls the last time investors, economic stakeholders were here at PICC was during ADB Governor's annual meeting in May.
    PICC is state-owned facility that was renovated for the ADB gathering.

  • BSP's Tetangco says, "their recovery is our game." He was referring to other economies experiencing financial-turned-economic crisis, especially European economies.

    Also stressed that Philippine funds in loan facility of IMF didn't come from budget.
  • BSP's Tetangco touts strong peso, strong international reserves, other monetary policy tools that help Philippine economy grow stronger.
  • Here at mid-year economic briefing at PICC. Still a lot of empty seats, but overheard optimistic Japanese bizmen.

  • SPOTTTED: Washington Sycip, a lot -- and I mean, a lot -- of bankers.
  • Bangko Sentral ng Pilipinas (BSP)'s Tetangco was recently cited as one of the Top 5 best central bank governors in the world.
  • Now playing: Video that explains the first 6 months of 2012. Note: Philippines grew a phenomenal 6.3% in January to March, and 5.9% in April to June.
  • Tetangco: broader based economic growth protects the economy from external shocks. All of gov't must promote inclusive growth.
  • Economic managers look on during a video report on the Philippine economy.

  • Purisma: we are basically in control of our fiscal destiny.
  • My observation: Last time the economic managers held a briefing, also here at PICC, the summit hall was packed. This time, there are more available seats.
  • BENEDICT HERNANDEZ, President and CEO OF Business Processing Association of the Philippines (BPAP), says Philippines a major choice of global firms.
  • BPAP Hernandez: BPO sector looking forward to better infrastructure to improve flood control.
  • BPAP's Hernandez: non-call center segment growing faster than call centers. 41% growth there last year.
  • BPAP's Fernandez: BPO sector aiming for at least 20% annual growth.
  • BPAP's Fernandez: Our main aims: Protect cost competitiveness and maintain predictable business environment.
  • BPAP's Fernandez: 2016 goals are 1.6 million direct jobs and 3.2 million indirect jobs; P1.3 billion wages
  • BPAP's Hernnadez: Philippine BPOs have cost advantages and issues (due to strong peso). Costs here 6-10% more than India last year. 20% now due to strong peso, weakness of rupee.
  • Next reactor is AURELIO MONTINOLA III, president and CEO of Bank of the Philippine Islands.

  • MONTINOLA: Can Philippines become a "triathlete"?

    He was referring to strong growth performance of Philippines.
  • MONTINOLA: Of the social contracts of the Aquino government, I particularly like the jobs target and ratings upgrades.
  • The top Philippine economic leaders will be here. I already spot some economic movers and shakers like BIR's Henares.

  • MONTINOLA: Banks are healthy and will continue to lend at low rates
  • MONTINOLA: Strong/resilient remittance first wave. Strong BPO another.

    "Let's hope that the next wave is TOURISM since this is expected to raise dollars and create jobs... improve tourism in BPO-fashion."
  • MONTINOLA: PPP projects should continue and connector roads should

    On the medium-term, we should focus on MANUFACTURING. We should get back what we lost to China. Today, their cost advantage has disappeared. Now, well-run PEZA are attractive.

    AGRICULATURE and FISHERIES, also. We just need improve cheaper bank financing for farmers.
  • MONTINOLA on EDUCATION: Thankfully the government realizes need for better education. K-12 key to gaining competitiveness in future. Any help from Congress on K-12 budget will be helpful.
  • MONTINOLA: Healthy banking supports good economics.
  • Next reactor is JESSE ANG, Resident Representative of the International Finance Corp

  • IFC's ANG: I focus also on "Doing Business" survey. The Philippine ranking has been weak in last few years.

    The issue is not cost or time, the issue is number of procedures, which increases opportunity for corruption.
  • IFC's Jesse Ang about to speak. He's the first Filipino to head IFC in PH
  • Ang: While PH jumped 10 notches in Competitiveness survey, we still trail other ASEAN countries.
  • ANG: Doing Business Survey showed main issue in PH competitiveness is the number of procedures in opening and closing a biz.
  • ANG: PH improved in corruption survey but we still have a long way to go in improving corruption perception.
  • ANG: Inequality in Ph among highest in asia.
  • ANG: unskilled labor high in agriculture sector. Minimum wage need to be higher
  • ANG: We can do much more in food exports. We need to improve trade facilitation, logistics
  • ANG: significant improvement in infrastructure. The PPP programs are coming along. 2012 will be an impt year for PPPs
  • ANG: creation of competition office is a good start to improve investment growth in PH.
  • ANG: if we can reduce face to face interactions in business registration and closure will improve corruption perception.
  • ANG: impt is to focus on getting reforms done.
  • Key economic managers and chief of related agencies take the floor. Panel discussion and open forum now starts. Questions via social media will be included.

  • Panel discussion starts.
  • Balisacan: Fullyear growth will be closer to 6pct
  • Balisacan: public const, increased investments, personal consumption on back of strong remittances to drive growth
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