Philippine Real Estate News – April 2017

 real estate news 43 p

hello everyone,

Here’s some select articles about Philippine Real Estate and our Economy from various newspaper correspondents that matters for your reference.  Take note that these articles when assessed actually guides us locally what direction the economy is going, what kind of issues our government is going through and generally, and how this affects our real estate market.

here’s an article from Reuters.com correspondent, Ben Blanchard; Editing by Nick Macfie

benham rise

China and the Philippines do not and will not have a dispute over Benham Rise, China’s Foreign Ministry said on Thursday, referring to a vast area the United Nations has declared to be part of the Philippines’ continental shelf.

Earlier this month the Philippine defense minister said he believed China had conducted survey missions deep into the Southeast Asian nation’s 200 nautical mile exclusive economic zone in the Benham Rise, which sits off the Philippines’ east coast.

China has already dismissed those concerns, saying its ships were simply passing through the waters there.

In a further statement carried on its website, China’s Foreign Ministry said the whole issue had been “hyped up”.

“China fully respects the Philippines’ maritime area rights over the Benham Rise. On this point, there has not been, is not at the moment and will not be a dispute between China and the Philippines,” the ministry said.

China and the Philippines had worked very hard over the past year to improve relations, and China set great store on this, it added.

China would continue to dedicate itself to “appropriately handling” maritime issues, the ministry said.

China is however involved in a dispute with the Philippines over ownership of islands in the South China Sea, even as both countries have dramatically improved relations since Philippine President Rodrigo Duterte took office last year.

Duterte said earlier in the day he trusted China would not build anything on one of the disputed areas, Scarborough Shoal, because he was given its “word of honor” and Beijing would not want to jeopardize a new friendship.

China claims most of the energy-rich South China Sea through which about $5 trillion in ship-borne trade passes every year. Neighbors Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

here’s an article from worldbank.com correspondent, Ralph Jennings :

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Japan And China Are Competing To Win Over The Philippines

MANILA – The World Bank said Friday it upgraded the Philippines’ economic outlook for 2016 to 2018 on sustained public spending on infrastructure.

Gross domestic product is projected to expand 6.8 percent this year, higher than the previous forecast of 6.4 percent, the lender said.

The bank said it upgraded its projections to 6.9 percent for 2017 and 7 percent for 2018.

The country’s economic growth accelerated to 7.1 percent in the first three months of President Rodrigo Duterte’s term, beating forecasts on the back of growing investments and a rebound in agriculture.

The economic planning agency sees growth at 6.5 percent to 7 percent this year.

“Recent economic trends illustrate the high confidence among investors and consumers, and provide the foundation for a more optimistic outlook for the remainder of 2016 and for 2017,” said Birgit Hansl, World Bank’s lead economist for the Philippines.

“The economy’s strong performance in October and November, and continued policy commitment to an increase in public infrastructure spending are expected to carry the economy’s growth momentum over to 2017-2018,” Hansl added.

Growth will be driven by increased capital investment, the World Bank said.

Monetary policy is expected to remain supportive of growth, resulting in continued expansion in credit despite an expected increase in interest rates in 2017, it added.

Philippine exports are also expected to grow in 2017 at a similar rate as in the last two years as growth momentum shifts towards emerging markets and developing economies.

here’s an article from http://asia.nikkei.com correspondent,Cliff Venzon :

Philippine-Call-Center-Industry1

MANILA — Philippine call centers plan to chase more contracts within the Asia-Pacific region to reduce their reliance on the U.S., where President Donald Trump has been pushing companies to relocate operations there.

Jojo Uligan, the president of Contact Center Association of the Philippines, said his group has told state investment promotion agencies to visit other countries in the region, after recent roadshows in New York, Orlando, Houston and California.

“We suggested going to other countries like the United Kingdom, and have more visibility in Australia, New Zealand, and [other countries in] Asia Pacific,” he told reporters on March 23.

Trump is setting his sights on his tax reform bill — largely aimed at giving companies tax incentives to relocate their offshore operations back to the U.S. — after failing his first legislative test to replace President Barack Obama’s Affordable Healthcare Act. Trump had previously threatened companies with a “big border tax” if they make products abroad and sell them back home.

“Although it has so far been big manufacturing companies like Ford which have been put under the most pressure by Trump to bring production back to the U.S., outsourcing companies have also come in for criticism,” London-based Capital Economics said in a February report about Trump’s impact on the Philippines.

U.S. contracts made up 70% of the Philippine call center industry’s $12.8 billion revenue last year, when it employed 751,200 workers. In 2016, the country’s larger business process outsourcing industry also derived two-thirds of its $23 billion estimated revenues from U.S. The entire sector employed 1.15 million people last year.

Contracts serving American clients powered the industry’s growth in the last decade, thanks to an English-speaking workforce steeped in American culture.

The success of the BPO industry has benefitted the wider Philippine economy, which counts as one of the fastest-growing in the region in recent years. BPO companies snapped up office space, and expanded workforces. This increased the spending power of employees, pushing up personal consumption.

Diversifying markets, along with moving to high-value sectors like healthcare, financial services, and animation, is a key strategy in the industry’s recently launched six-year growth blueprint. By 2022, the industry expects an annual revenue of $38.9 billion, or 15.5% of the global outsourcing sector, to be employing 1.8 million people.

Industry officials say they have yet to feel Trump’s direct impact. “Our clients have given us the same mandate as we have received over the years,” said Tonichi Achurra-Parekh, vice-president at StarTek Philippines, the local unit of the Colorado-based call center company.

here’s an article Adb.com

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Philippines and ADB

The Philippines is among the fastest-growing economies in Southeast Asia, with upgrades to sovereign investment ratings confirming improvements in the country’s macroeconomic fundamentals. The government has defined its development objectives as driving rapid but inclusive economic growth, accelerating employment on a massive scale, and reducing poverty.

Since 1966, ADB has been a strong partner in the development of the Philippines, its host country. The country operations business plan, 2017 – 2019 will help the government achieve more inclusive growth and address income inequalities and regional disparities.

The Philippines is part of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA)

here’a an article from www.dealstreetasia.com from correspondent, Tomas S. Noda III :

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Seven Japanese trading houses investing $3.9b in Philippines

Seven major Japanese trading houses are looking at investing up to $3.9 billion (P198.5 billion) in different industries in the Philippines. After his recent trip to Tokyo, Department of Trade and Industry (DTI) secretary Ramon Lopez disclosed on Monday (March 13) that the Japanese companies who made the commitment (to invest in the country) were Mitsubishi Corp, Mitsui and Co Ltd, Sumitomo Corp, Itochu Corp, Marubeni Corp, Toyota Tsusho, and Sojitz. Others present in the dialogue were Transportation Secretary Arthur Tugade, and Philippine Ambassador-designate Jose Laurel.

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robert
Robert G. Sarmiento Properties
Professional Affiliation :
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