Newsbriefs that matter

I received my latest copy of IDEA’s NewsBriefs, a regular digest produced by the Institute for Development and Econometric Analysis, Inc. (IDEA) whose Chairman, Dr. Cayetano W. Paderanga Jr., is my former President/CEO. IDEA’s NewsBriefs’ purpose is to highlight the most recent national and international economic events. The following are excerpts from said publication reprinted here to share some interesting news and figures pertaining to fiscal, monetary, corporate and labor sectors. I am sharing them to you my dear readers for these news really matter.

On the Monetary Sector. According to the Bangko Sentral ng Pilipinas (BSP), headline inflation in May rose to 9.6 percent year-on-year from only 8.3 percent in April and 2.4 percent during the same period last year. The uptrend in inflation is said to reflect supply side pressures following increased oil and food prices in the international market. BSP reported a 9.6 percent increase in domestic liquidity in March from 6.6 percent in February. Increase in Net Foreign Assets (NFA), along with the reduction in Net Domestic Assets has driven the expansion in domestic liquidity. Other Items account on the other hand continued to reflect a large negative balance.

On Labor Side. Labor Secretary Marianito D. Roque said last Tuesday that twenty-two companies, mostly from manufacturing and electronics sector, have agreed to provide non-wage benefits to their employees in response to President Arroyo’s plea regarding the said employee benefits. Secretary Roque noted that the benefits include nurseries to the children of the employees, rice rations, and shuttle service to and from work.

On Corporate Sector. National Transmission Corporation (Transco) stated a 4.5% increase in electricity delivered for the first quarter compared with the same period last year. Power delivered to Luzon increased by 4.4% 20,924.7 MW, while power delivered to Visayas and Mindanao rose by 6.0% and 5.7% respectively. Manila Electric Company (Meralco), Transco’s biggest customer, incurred an increased demand for power at 5.5% or 800.7

Likewise, it was further reported that, Thai-Filipino joint venture firm Conal Holdings Company announced its plan of setting up a 200 MW coal-fired power plant in Sarangani province in Mindanao. The plant, which is worth $450-M, is expected to run by 2011 and expand every year for 15 years by 350 MW, supplying 15% of the region’s power needs. Furthermore, Ford Philippines foresees growth in exports due to rising demand from Southeast Asian countries, particularly Thailand, Malaysia, Indonesia, and Vietnam. The company sees a 20% higher car exports compared to the previous year. Ford President Richard C. Baker said that the export growth would likely to come from Ford Focus and Escape, and Mazda 3, according to the same published report.

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