the role of economics in an imperfect world

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Moodys upgrades the Philippines

credit rating outlook

The Philippines received its sixth upgrade inless than 2 years after New York-basedMoodys Investors Service upgraded thecredit rating outlook of the Philippines topositive from stable, paving the way for arating upgrade within the next six months to18 months.

Moodys assistant vice president Christiande Guzman said the credit rating outlook ofthe Philippines was upgraded on the back ofthe countrys continued trend fiscal and debtconsolidation as well as the enhancedfinance-ability of government debt.

The government of the Philippines hascontinued to demonstrate prudence in itsfiscal management, as characterized by lowbudget deficits relative to its rating peersand a steadily declining level of debt relativeto GDP. Such outcomes are the result ofexpenditure restraint and improved revenueperformance, De Guzman said.

This is the sixth upgrade received by the

Philippines since President Aquino assumedoffice in June of 2010. London-based FitchRatings rates the countrys sovereign creditat one notch below investment grade whileMoodys as well as Standard & Poors ratethe country at two notches below investmentgrade.

Despite the absence of legislative reforms,de Guzman pointed out that more effectivetax administration measures have resulted in

revenue growth outpacing nominal grossdomestic product (GDP) growth over thepast five quarters.

And although spending disbursements haveaccelerated since late 2011, he said theuptick in revenues has led to the faster-than-

expected consolidation of the countrysdeficits and debt burden.

The Philippines booked a budget surplus ofP31 billion last April as revenues increased

due to the tax-filing season. The countryrecorded a budget deficit of P2.88 billion inthe first four months of the year, a reversalof the P61 million surplus booked in thesame period last year.

The government hopes to contain this yearsbudget deficit at roughly P280 billion or 2.6percent of GDP from the P197.8 billiondeficit incurred in 2011.

De Guzman said Moodys expects therevenue growth to improve further upon thepassage of legislation aimed at restructuringexcise taxes on alcohol and tobaccoproducts.

Nevertheless, deeper structural reformsmay be necessary for revenue mobilizationto catch up to levels similar to those ofPhilippines rating peers, he added.

According to him, active debt managementcoupled with the increasingly solid trackrecord of inflation management by theBangko Sentral ng Pilipinas (BSP) hasallowed for an improvement in the countrysdebt structure, including lower averageborrowing costs and foreign currencyexposure, as well as longer averagematurities.

He also cited the countrys robust externalpayments position as the gross internationalreserves (GIR) of the Philippine is expectedto hit a new record level of $79 billion thisyear.

The sovereigns vulnerability to globalfinancial market shocks has been reduced bythe build-up of foreign exchange reserves,


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resulting in turn from robust current accountsurpluses and healthy capital inflows inrecent years, he said.

The Cabinet-level Development Budget

Coordination Committee (DBCC) sees thecountrys GDP growing faster at a range offive percent to six percent this year afterslackening to 3.7 percent last year from 7.6percent in 2010 due to weak global trade andcautious government spending.

To achieve a credit rating upgrade, deGuzman said the Philippines should pursuestructural improvements in revenuemobilization, continued reductions in the

government debt burden, and accelerateinvestment spending that places theeconomy on a path of stronger growth.

These developments should also beaccompanied by the continued health of thecountrys balance of payments and stabilityof the financial system, he said.

He said factors that could lead to adowngrade in rating or outlook include adestabilization of macroeconomic conditionsthat could lead to an unmooring of inflationexpectations and an adverse effect onfinancing condition and a shift away fromthe focus on good governance, resulting inturn in a deterioration in the investmentclimate and, ultimately, revenueperformance.

BSP Governor Amando Tetangco Jr. saidthe upgrade was based on the countryscontinued fiscal consolidation and good debt

management underpinned by sustainedrobust external position and solid trackrecord of inflation management.

This positive rating action is therefore

welcome and is a sign that Moodys isseeing the fruits of good governance on allfronts fiscal, monetary, and external,Tetangco said.

The Aquino governments good governancebattle is translating to prudent spending onthe part of the national government as wellas improved revenue collection by theBureau of Internal Revenue (BIR) and theBureau of Customs (BOC).

The message we have been trying to sendto investors in general and credit ratingagencies in particular is that fiscalperformance can improve with goodgovernance, he added.For his part, Finance secretary CesarPurisima said the upgrade brings the countrycloser to the much coveted investment gradecredit rating.

This is one more step in our march towardsinvestment grade, towards reducing the gapbetween the market rating and the creditrating, and more importantly towards a moresustainable growth path, Purisima stressed.He pointed out that the Aquinoadministration would continue to focus ongood governance as the basis for goodeconomics, on fiscal sustainability, onmacroeconomic stability and on opening upthe country to business and tourism.


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*Economy grows by 6.4 percent in

1st quarter

Published : Friday, June 01, 2012

THE Philippine economy grew by 6.4

percent in the first quarter of 2012, thehighest figure recorded among East Asianand Southeast Asian countries, the NationalEconomic Development Authority (NEDA)and the National Statistical CoordinationBoard (NSCB) revealed on Thursday.

Malacaang praised the better-than-expected economic growth, which it saidwas due to sustained private sectorconfidence and accelerated government

spending.

Finance Secretary Cesar Purisima alsolauded the figure, which he attributed to thecountrys resilience and its capacity to besteadfast in terms of economic growth.

According to a report presented by NSCBSecretary General Romulo Virola, thePhilippine economy got off to a great startthis year when the countrys gross domestic

product (GDP) grew by 6.4 percent,compared to the 4.9 percent recorded in thesame period last year.

GDP refers to all goods and servicesproduced in a given period.

The 6.4 percent was higher than the 3.7-percent preliminary average growthregistered in the Southeast Asian region,according to NEDA Director General Dr.

Arsenio Balisacan.

He said that the Philippines was growingfaster than Indonesia (6.3 percent), Vietnam(4.0 percent), Singapore (1.6 percent) andThailand (0.3 percent).

Balisacan added that economic growth

slowed down in East Asian nations likeSouth Korea (2.8 percent), Japan (2.8percent) and Hong Kong (0.4 percent), withthe exception of China (8.1 percent).

Benign inflationThe above-expectations growth benefitedfrom a regime of benign inflation and drewfrom the revitalized services sector,particularly from trade and other services,NSCB said.

It added that this growth was also supportedby the manufacturing sector, recoveringfrom its slow performance during the thirdand fourth quarters of 2011.

On the demand side, the growth camemainly from net exports and robusthousehold spending, according to theNSCB.

The net primary income (NPI) also grew by4.0 percent, pushing the gross nationalincome/gross national product (gni/gnp)growth to 5.8 percent, compared to 3.5percent in 2011.

On a seasonally adjusted basis, GDP gainedmomentum by growing by 2.5 percent in thefirst quarter of 2012, while GNI growth wasslower at 1.3 percent.

Balisacan said that the NSCB reportsfindings exceeded the markets consensusforecast of 4.8 percent.

He added that the growth was supported byaccelerated government spending (includingfor infrastructure and conditional cashtransfer spending); low prices, whichsupported household consumption; better-than-anticipated exports performance;continued credit expansion; continuedrobustness of remittances; expansion in thetourism sector; increased business and


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consumer confidence; and an overallbuoyant domestic economic outlook.

On the supply side, the industry sector wasprimarily driven by manufacturing with 5.7

percent; utilities, 8.0 percent; andconstruction subsectors, 3.6 percent.

The NEDA chief said that governmentagencies were able to speed up theimplementation of major infrastructureprojects after the departments budgetallocations were released in January.

He added that growth in the first quartertranslated to an increase in employment by

1.101 million. According to him, jobgeneration was more pronounced in theservices sector, followed by the industrysector.

The continued strong inflows ofremittances, robust inbound tourist receiptsand low inflation environment contributed tosignificant increases in employmentcreation, particularly in the services sector,which fueled consumption, Balisacan said.

Quality jobsHe stressed, though, that the governmentneeds to create quality jobs in manufacturingand services, as well as create activity in theagriculture sector.

The NEDA director general said thatoverseas Filipino remittances increased by5.4 percent to reach $4.84 billion in the firstthree months of 2012. With the growth inremittances, npi from the rest of the worldincreased by 4.0 percent, boosting gni by 5.8percent.

He added that, given the preliminary firstquarter 2012 estimate, the governmentsGDP growth-rate projection of 5 percent to6 percent may be reached or even

surpassed.

If we can just maintain the momentum andsolve the problems in human development,infrastructure and quality of the institutions,

we should be able to reach our target,Balisacan said.

He added that the government would remainvigilant on the risks to growth, includingthose posed by the Eurozone crisis and theuncertainty in oil prices.

The first-quarter performance serves as aspringboard for the next three quarters. Thegovernment remains committed to provide

the best opportunities for all Filipinos in theattainment of inclusive growth, Balisacansaid.

Several factorsIn a statement, Palace deputy spokeswomanAbigail Valte noted several factors thatcontributed to the countrys economicgrowth.

There were healthy increases in theservices sector, complemented by growth inexports and increases in householdconsumption expenditures, Valte said.

We are confident that the positivetrajectory of our GDP growth will besustained in the latter quarters of this year,which have traditionally demonstrated morerobust and dynamic economicperformance, she added.

This affirmation of our countrys steadyadvance toward inclusive growth comes atthe heels of Moodys Investors Serviceupgrade of our credit outlook to positivefrom stable. All indications point to theglobal economys continued confidence inthe Philippines, as well as to a moreoptimistic outlook within the country, the


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spokeswoman said.

Inclusive growthPurisima said in a statement that the 6.4percent growth highlights the countrys

capacity to [go] faster toward inclusivegrowth that shall produce jobs and eradicatepoverty in the long run.

This expectation-defying result strengthensour resolve to sustain this growth pacetoward achieving a sustainable and inclusive

economic expansion. While we recognizethe risks that exogenous factors pose, wealso see the opportunity that greaterinvestments in agriculture, manufacturing,BPO [business process outsourcing], and

tourism present. We look forward topresenting the Philippine case again to creditrating agencies and investors now thatresults affirm the Aquino administrationscore belief that good governance is goodeconomics, he added.


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*NEDA: PH can withstand global shocks

Published : Thursday, June 14,

2012 00:00

Written by : MAYVELIN U.

CARABALLO REPORTER

The Philippines would be exempted on theimpacts of different economic difficultiesaround the world, primarily because of thegovernments continued efforts to achievebroad-based growth, a National Economicand Development Authority (NEDA)official said on Wednesday, following therelease of a new World Bank (WB) reporton the countrys projected economic growth

for this year.

According to Ruperto Majuca, NEDAofficer-in-charge and deputy director generalfor planning, the World Banks recentprojection on the Philippine economicgrowth is very low as well as difficult tounderstand.

The WB, in its Global Economic Prospects(GEP) June 2012, cited outside risks such as

the eurozone crisis, higher oil prices and theeconomic slowdown in China on its low 4-percent growth forecast for the Philippinesfor this year, which is lower than its 4.2percent January forecast.

The WBs forecast is also below the 6.4-percent Philippine gross domestic productgrowth in the first quarter of 2012, as well asthe governments 5 percent to 6 percentGDP growth target for the whole year.

The World Bank report also said that for2013 and 2014, the Philippines would likelyhave a GDP growth of 5 percent. Majucacontradicted the WB report by saying thatfor 2012, NEDA expects that the countrywill attain the higher end of the growthassumption of 5 percent to 6 percent, with a

considerable probability of exceeding it.

He added that for 2013, the Philippine GDPwill probably be at 6 percent to 7 percent orhigher.

The government has laid the foundation forbroad-based growth, so that even if the restof the world are experiencing economicdifficulties, the Philippine economy is anexemption, and acting like a star player, hesaid.

The NEDA official added that thegovernment has considerably strengtheneddomestic demand, so the country is not too

dependent negative external developments.

Majuca cited examples such as thecontinued developments in infrastructure,social protection programs, tourism,business process outsourcing, exports andinvestments.

Long period volatilityThe GEP report had warned developingcountries like the Philippines to prepare fora long period of volatility in the globaleconomy by reemphasizing medium-termdevelopment strategies, while preparing fortougher times.

It said that a resurgence of tensions in high-income Europe has eroded the gains madeduring the first four months of 2012, whichsaw a rebound in economic activity in bothdeveloping and advanced countries, and aneasing of risk aversion among investors.

The report added that since May 1, increasedmarket jitters have spread. Developing andhigh-income country stock markets have lostsome 7 percent, giving up two-thirds of thegains generated over the preceding fourmonths.


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Most industrial commodity prices are down,with crude and copper prices down by 19and 14 percent, respectively, whiledeveloping country currencies have lost

value against the US dollar, as internationalcapital fled to safe-haven assets, such asGerman and United States governmentbonds, the GEP report noted.

So far, conditions in most developingcountries have not deteriorated as much asin the fourth quarter of 2011, the reportalso said.

According to Hans Timmer, director of

Development Prospects at the World Bank,global capital market and investor sentimentare likely to remain volatile over themedium termmaking economic policysetting difficult.

In this environment, developing countriesshould focus on productivity-enhancingreforms and infrastructure investmentinstead of reacting to day-to-day changes inthe international environment, he said.

Weak growthFurthermore, the report mentioned thatincreased uncertainty will add to pre-existing headwinds from budget cutting,banking-sector deleveraging and developingcountry capacity constraints.

As a result, the World Bank projected thatdeveloping country growth will slow to arelatively weak 5.3 percent in 2012, beforestrengthening somewhat to 5.9 percent in2013 and 6.0 percent in 2014.

The GEP report also stated that growth inhigh-income countries will also be weak,1.4, 1.9 and 2.3 percent for 2012, 2013 and2014 respectivelywith GDP in the EuroArea declining 0.3 percent in 2012. Overall,

global GDP is projected to rise 2.5, 3.0 and3.3 percent for the same period.

This baseline scenario remains the mostlikely outcome. However, should thesituation in Europe deteriorate sharply nodeveloping region would be spared, thereport noted.

Where possible, developing countries needto move to reduce vulnerabilities by

lowering short-term debt levels, cuttingbudget deficits and returning to a moreneutral monetary policy stance. Doing sowill provide them with more leeway toloosen policy, should global conditions takea sharp turn for the worse, said AndrewBurns, manager of Global Macroeconomicsand lead author of the report.

In the case of the East Asia and Pacific, theGEP revealed that the region is on amoderately easing trend at 7.6-percentgrowth in 2012.

It cited the recent deterioration in globalfinancial conditions is expected to add topre-existing headwinds, including relativelyweak demand from the high-income world,and a slowing phase in China.

For 2013 and 2014, because of broaderglobal recovery, the regions projectedgrowth will likely be at 8.1 percent and 7.9percent, respectively, the report noted.


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Can PH economy sustain its growth

momentum?

By Cathy Rose A. Garcia, ABS-CBNnews.com

Posted at 05/31/2012 3:01 PM | Updated asof 05/31/2012 9:15 PM

MANILA, Philippines - The Philippinesposted surprisingly strong first quartergrowth, but some economists arequestioning whether the growth momentumcan be sustained for the rest of the year.

The Philippines saw its first quarter grossdomestic product (GDP) climb 6.4% from ayear earlier, the fastest quarterly pace in 2years, on the back of strong governmentspending, robust domestic demand andrebound in exports.

Socioeconomic Planning Secretary ArsenioBalisacan expects the economy to exceedthe full-year target.

"Given the preliminary first quarter 2012estimate, we expect that the full year 2012real GDP growth rate projection of 5 to 6%is well within reach, or may even exceed it...The first quarter performance serves as aspringboard for the next three quarters," hesaid.

Bangko Sentral ng Pilipinas GovernorAmando Tetangco said the higher thanforecast outcome made the government's2012 target "more manageable," adding thatthere was less need for monetary authoritiesto support growth.

"We are, of course, hopeful that this trendwould continue, as the national governmentaccelerates spending and privateconsumption remains robust," Tetangco saidin a statement.

"Nevertheless we are mindful of the risks inthe external environment, particularly theweakness in the euro zone, tentative growthin the United States and slowdown inChina," he said.

Sustainability in doubt

However, some economists do not think thePhilippines can sustain its growthmomentum for the rest of the year, withuncertainties in the euro zone and theslowdown of the Chinese economy.

University of the Philippines School ofEconomics professor Benjamin Diokno

raised some questions about the first quarterGDP numbers.

"If the numbers are true (adjusted 4.9% lastyear) 6.2 in the first quarter of 2012, howcome many Filipinos are jobless, poorer, andhungrier? Is the 6.2% GDP growthsustainable in the light of the looming globalrecession," he asked.

HSBC economist Trinh Nguyen attributed

the rosy first quarter GDP growth toincreased government spending and better-than-expected exports. She expects the firstquarter to be the "best quarter of the year."

"Growth, while continuing be robust, willlikely slow in the next quarters for thefollowing reasons: a) government spendingwill likely slow, as already evidenced in theApril number; b) exports, although expectedto record positive growth, will normalizeand expand at a more modest pace due to theworsening of the euro zone crisis, theslowing down of China as well as thegradual decrease consumer confidence in theU.S.; and c) remittances will likelydecelerate due to tougher host countryconditions, especially in the euro zone," shesaid.


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Bank of the Philippine Islands economistJun Neri said the question is whether thePhilippines can sustain its economic growth.

"Of course the question is the sustainability.

It's a big question mark, more so thatheadwinds particularly from peripheralEurope are anticipated to have an impact onthe remaining quarters of the year, whichagain should compel our policymakers tosustain if not to continue to step up onexpansionary policies," Neri said.

"Rocking in the Philippines"

On the other hand, PJ Garcia, senior vice-

president of BPI Asset Management, saidthe better-than-expected GDP numbers forthe first quarter is a positive signal forinvestors to enter the Philippines.

But for the country to sustain growthmomentum, Garcia said the governmentshould introduce policy reforms ininvestments and fast-track public-privatepartnership projects.

"This is definitely a buy signal for foreigninvestors and local investors alike... ThePhilippines is one of the few economiesglobally, not only in Asia, with very strongmacro-economic indicators with growth ataround 6%, inflation at around 3%, you havethe peso still stronger vs. the dollar by 2-3%and all-time low interest rates forgovernment bond yields," he said.

"We are in a sweet spot. We are definitelyrocking in the Philippines," Garcia added. -With Reuters, ANC


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Moody's raises 2012 growth

forecast for PH

ABS-CBNnews.com

Posted at 06/06/2012 5:54 PM | Updated as

of 06/06/2012 5:54 PM

MANILA, Philippines - Moody's Analyticsraised its economic growth projection for thePhilippines to 4.7% from 4%. This comesafter the Philippine economy grew better-than-expected in the first quarter.

Moody's Analytics, sister firm of Moody'sInvestors Service, said the government'santi-corruption drive is effective in raising

business confidence in the country.

The government's push for infrastructureprojects is also attracting interest fromforeign investors.

"These twin policy arms, liftinginfrastructure and reducing corruption,

should also help to shore up both domesticand foreign direct investment, lifting the

economy's longterm growth prospects,"Moodys Analytics said.

The Philippines' gross domestic productgrew by 6.4% in the first quarter from a yearago, beating most projections. This was alsothe highest growth rate in Southeast Asia.

"The investment environment in thePhilippines has improved over the past yearas President Aquino's plans have begun totake effect, with a focus on infrastructuredevelopment, stamping out corruption, andthe seemingly obligatory chastisement of his

predecessor, Gloria Arroyo, who now sits injail on charges of electoral sabotage,"Moody's Analytics said.

The Philippine government is targeting 5 to6% growth for 2012. Last year, the economygrew by 3.9%.
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*Aquino arrives home with $2.5-B

investments

ABS-CBNnews.com

Posted at 06/10/2012 12:26 PM | Updated as

of 06/10/2012 7:14 PM

MANILA, Philippines - President BenignoAquino III has arrived home from his seven-day trip, armed with at least $2.5 billionworth of investments from the UnitedKingdom and the United States.

In London, Aquino met with variouscompanies such as Glencore and RoyalDutch Shell, which are ready to invest in the

country.

He said at least $1.5 billion in investmentsare expected to flow into our economy.

Over in the US, the president also met withbusinessmen who have pledged at least P1billion dollars in investments.

"Sa kabuuan po, ang halaga ng kalakal napapasok mula sa mga kumpanyang

nakapulong natin, sa Britanya at saAmerika: Hindi bababa sa dalawa'tkalahating bilyong dolyar, o humigit-kumulang 100 billion pesos. Trabaho po angkatumbas ng mga numerong ito; trabahongmagdadala ng pagkain sa mesa ng Pilipino."

Aquino also announced the Philippineswould no longer need to pay its $23 millionin debts to the US.

Benepisyaryo rin po tayo ng isang debt for

nature swap; hindi na raw po natinkailangang bayaran ang 23 million dollarsna utang, basta't mapupunta sa pagtatanimng mga bagong puno ang perang ito, hesaid.

He also added that the US has affirmed theimportance of the Philippines as its ally andvowed to continue helping the country beefup its maritime capabilities.

"Ipinahayag po ni Secretary of State HillaryClinton ang suporta nilang ibibigay sapagtatayo ng ating Coast Watch, na malayoang mararating upang mabantayan ang atingmga baybayin. Inanunsyo rin ni SecretaryClinton na magkakaroon ng dagdag naPeace Corps volunteers na idedestino saating bansa."

Aquino also said the Philippines will receive$30 million under the Partnership for

Growth program, which supports projectsto address poverty. - ANC


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PNoy backs use of PCOS machines for 2013 polls

By Delon Porcalla, The Philippine Star

Posted at 06/11/2012 8:20 AM | Updated as of 06/11/2012 10:20 AM

MANILA, Philippines - As far as President Aquino is concerned, there should be no moredebates over the use of the precinct count optical scan (PCOS) machines in the May 2013senatorial elections, considering their proven credibility particularly in the 2010 presidentialelections which he overwhelmingly won.

Aquino told journalists over coffee that the country is expected to benefit much in terms ofcredible poll results if it maximizes the use of PCOS machines.

He has urged the Commission on Elections, the independent constitutional body tasked tosupervise the conduct of elections, to ensure that the country would not revert to the old manualsystem for the 2013 senatorial polls.

At the same time, the Chief Executive expressed serious concern over the failure of the SupremeCourt to act expeditiously on petitions against the Comelecs decision to purchase some 80,000PCOS machines for the 2013 polls.

Of course it is alarming, Aquino said, warning that it would be a tragedy to return to themanual counting system, which is vulnerable to manipulation by corrupt politicians and theirsupporters.

The SC has yet to act on petitions contesting the P1.8-billion deal with the Netherlands-basedSmartmatic-Total Information Managements (TIM).

Comelec chairman Sixto Brillantes earlier complained about the SCs alleged foot-dragging onthe matter before the House committee on suffrage and electoral reforms headed by Cavite Rep.Elpidio Barzaga Jr..

We will be pressed for time. This is the reason why were asking the SC to resolve itimmediately. But if it takes time for the SC to resolve the issue until July to August (2012), thenwe will have no more time anymore for automated polls, he said.

Last April, the SC issued a temporary restraining order on the P1.8-billion deal.

Lawmakers, led by Speaker Feliciano Sonny Belmonte Jr., earlier rallied behind the Comelecsmove to exercise the option to purchase the PCOS machines that the poll body rented fromSmartmatic-TIM in 2010.

The congressmen pointed out that the House of Representatives Electoral Tribunal (HRET)thequasi-judicial body that resolves poll disputes among representatives has already dismissedclaims of irregularities in the 2010 elections.


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The Solidarity for Sovereignty and another group, led by Davao City Archbishop FernandoCapalla, sought the issuance of a TRO on the P1.8-billion PCOS machines purchase, saying theComelecs move was unlawful.

SC okays purchase of PCOS machines

ABS-CBNnews.com

Posted at 06/13/2012 4:21 PM | Updated as of 06/13/2012 8:19 PM

Petitioners to appeal, but lawyer says it's a long shot

MANILA, Philippines (3rd UPDATE) - The Supreme Court on Wednesday upheld the decisionof the Commission on Elections to purchase 82,000 precinct count optical scan (PCOS)machines from automation provider Smartmatic-TIM.

SC acting spokesperson Gleo Guerra said the High Court voted 11-3 to uphold the Comelecprocurement.

Only 3 justices - Martin Villarama, Arturo Brion and Estela Perlas-Bernabe - voted against theComelec P1.8 billion contract with Smartmatic-TIM.

The 11 justices who voted to uphold the PCOS purchase are Acting Chief Justice AntonioCarpio, Diosdado Peralta, Presbitero Velasco Jr., Teresita Leonardo de Castro, Lucas Bersamin,Mariano del Castillo, Roberto Abad, Jose Perez, Jose Mendoza, Maria Lourdes Sereno andBienvenido Reyes.

The SC also lifted a temporary restraining order on the PCOS deal.

Smartmatic: PCOS accurate, secure

Cesar Flores, president for Asia-Pacific of Smartmatic, said they are pleased with the decision ofthe Supreme Court.

"We believe it is the most advantageous option for the continuation of the automation processstarted in 2010," he said.

"The system used in 2010 is accurate, secure and auditable, and the more than 17,000 officialselected in May 2010 are the legitimate choice of the Filipino people.

"We will continue our hard work improving the system and supporting comelec's efforts andfollowing their guidance in the 2013 elections."

SC ruling a 'chilling effect'?

Meantime, a lawyer representing the petitioners, said the Supreme Court's ruling may be seen asan aftermath of the ouster of Chief Justice Renato Corona.


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In an interview with ANC, lawyer Abraham Espejo said, Im afraid to think that this could be aresult of the chilling effect after the conviction of Corona.

Corona had said that the impeachment complaint against him was a result of President Aquino'sdesire to also control the Supreme Court.

Last May 22, senator-judges voted 20-3 to oust Corona from office due to his failure to disclosein his statement of assets, liabilities and net worth (SALN) his bank accounts.

I think our justices have lost their courage to stand up for what is right, Espejo said.

In April 24, the SC stopped the Commission on Elections (Comelec) from purchasing 82,000precinct optical scan. Oral arguments were scheduled on May 2.

Espejo said he will file a motion for reconsideration on behalf of the petitioners, admittingthough that it is a suntok sa buwan [long shot].

We will file an MR, but thats the last step, we have no other remedies. Its unfortunate that thepurchase was allowed despite the fact that there was no bidding, he said.

Strict application

Espejo said procurements laws are very strict on public bidding procedures because its a matterof public fundstaxpayers money.

Comelec purchased the machines from Smartmatic-TIM a day before the option to purchaseexpired.

This was an offshoot of the contract with the private firm for the automation of the 2010 polls onJune 9, 2009. The contract provided an option to purchase up to Dec. 31, 2010, whichSmartmatic-TIM extended up to March 31, 2012.

We have different opinions, but it is clear that it was approved without public bidding, he said.

He stressed that the subject of contract is very clear, which is for the automation of the 2010polls alone. Yes, there was a purchase clause, but it could not possibly refer to the purchaseoutside the 2010 polls.

Former Comelec Commissioner Augusto Lagman shared the same view. His ad interimappointment was not renewed months ago.

In a separate interview with dzMM, Lagman said the SCs decision came as a shock. I wasshocked. It should have gone through the bidding purchase. It is clear that the option to purchasehad already expired, he said.

'236 problems with PCOS machines'


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Lagman said public bidding is not a problem since there are two to three vendors who haveexpressed interest to automate the 2013 polls.

Time is also not a problem. There is time for bidding, he said.

He noted that when he was still with Comelec, the poll body opted to sign anew a deal withSmartmatic even if the latter had failed to address a lot of errors in the machines.

He said when he joined Comelec, the PCOS machines had 236 problems.

But these problems have not been addressed, and yet Comelec proceeded to enter into the deal,he added.

He asked: Are we going to count on Smartmatics word that these will be addressed?

Lagman, an IT expert, believes that the machines can be hacked. The petitioners before the SC

believe that this could eventually lead to widespread cheating.

Be reasonable, says Brillantes

In a separate interview with ANC, Comelec Chairman Sixto Brillantes Jr. asked the critics to bereasonable people.

Magtulungan na lang tayo, wag nang bara ng bara. [Lets just help each other, we should notalways criticize], he said.

He asked that the critics come over and discuss the matter with the poll body, although he

insisted that the issues they raised are already old.

Espejo said, however, that the case here is not personal. We cant just say yes to everythingwhat the government wants to happen. Were in a democratic country.

He said the petitioners agree to automation of the polls but it should be in accordance with thelaw.

Comelec working on PCOS enhancements

Brillantes said they are happy and will now proceed with the purchase. He said the P1.8 billion

contract was signed over a month ago, and they just have to implement it now, starting with theinspection and payment.

Brillantes said, once they've inspected 50 percent of the machines, they will start makingpayments to contractor Smartmatic.

He said the decision gives them more time to prepare, considering that in the 2010 elections, thecontract was awarded in August of 2009. He said they are now prepared for the 2013 elections.


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Brillantes said the en banc would like to reach out to the petitioners and ask them to meet theComelec so they can once and for all settle differences over the machines.

He said the poll body has already finished working on enhancements to the machines to addressglitches.

Brillantes and the en banc of the Comelec met today for a special session on stricter rules forcampaign finance and the party-list elections. -- with reports from RG Cruz and Ina

Reformina, ABS-CBN News; Ira Pedrasa, ABS-CBNnews.com; ANC

Massive flooding feared if Angat Dam fails

by Henry Omaga-Diaz, ABS-CBN News

Posted at 06/12/2012 9:46 PM | Updated as of 06/14/2012 1:22 AM

MANILA, PhilippinesExperts warn of massive flooding and casualties if catastrophe hits the44-year-old Angat Dam.

Experts said the life span of dams is only 50 years.

Bulacan Governor Wilhelmino Sy Alvarado says another concern is that the dam's reservoir lieson top of a fault line.

Mayroong crack, mayroong fault. Ito ay layer of soil and stones underneath na uneven. Kapagito raw ay nag-move at nag-trigger ng earthquake, kinakatakot nila ay at 7.2-magnitude, kaya ba

ito ng istraktura ng Angat Dam? said Alvarado said.

The Metropolitan Waterworks and Sewerage System (MWSS) commissioned a study by UScompany Grimston, Tonkin and Taylor and the agency's administrator Gerry Esquivel says theresults are alarming.

Ang projection namin ay P201 billion ang damage and 30,000 lives. Nakakatakot din pero as oftoday, it has survived 44 years of operation so we are hoping that it can survive the constructionperiod, said Esquivel.

If Angat Dam fails, it will result in flooding in 20 towns in Bulacan, 3 towns in Pampanga and 3

cities in Metro Manila.

The floodwaters are estimated to reach between 10 and 30 meters.

Metro Manila and Bulacan depend on Angat Dam for electricity, drinking water and irrigation.

However, Rodolfo German, general manager of the Angat Hydroelectric Power Plant dispelsfears that cracks have weakened the dam.


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Hindi naman napatunayan pa na yun ay karugtong ng fault, said German.

German acknowledges that dam's lifespan is only 50 years but he insists this can be extendedwith proper maintenance.

President Benigno Aquino III has already ordered the release of P5.7 billion for the dam'srehabilitation. -- ANC

CAB softens on overbooking, ticket refund

By Lenie Lectura, BusinessMirror

Posted at 06/15/2012 8:47 AM | Updated as of 06/15/2012 10:09 AM

MANILA, Philippines - In a bid to balance the publics welfare and that of the low-cost carriers(LCC), the Civil Aeronautics Board (CAB) has fine-tuned its twin orders following a review ofarguments raised by the airlines in their motions for reconsideration.

These are not revisions but a refinement based on their motions for reconsideration. CAB ordersnumber 28 and 29 explicitly state that these are the guidelines until further notice, which meansthey can be subject to further study or clarification, said CAB Secretary Eldric Paul Peredo in atext message.

CAB Resolution 28 suspends provisions on overbooking contained in Section 3 of the EconomicRegulation (ER) 7. This means that airlines are no longer allowed to overbook.

The airlines said the practice of overbooking is often misunderstood as mainly benefiting theairline when, in fact, overbooking benefits the consumers as the airline artificially inflates

capacity and is able to spread its cost across more seats which would mean lower passengerfares.

Besides, they added, overbooking is a worldwide airline practice which is recognized by variousauthorities, including the CAB, the United States Department of Transportation (US DOT) andthe United States Supreme Court.

In response, CAB said it will still allow airlines to overbook but only up to a maximum of 5percent.

There used to be no rules except that the industry standard is 10 percent. This time, we will

closely monitor them and we intend to keep the number down to half the industry standard asmaximum, said Peredo.

The CAB official said overbooking is still being discouraged. We are now looking to merelyimposing restrictions rather than totally banning it, he said.

Peredo said airlines may face sanctions if the airlines overbooked at the expense of thepassenger. He added: There maybe situations where it will happen, and if it does result in


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offloading of passengers, then there will be stringent reportorial requirements for us to determinewhether they did it maliciously or whether it was a reasonable exercise.

CAB Resolution 29, meanwhile, suspends the nonrefundable and non-rebookable conditions oflow-cost fares for domestic flights.

After careful deliberations, Peredo said the CAB will still allow rebooking and refunding for allfares, including low-cost fares. But we aim to balance airline and public interest by givingguidelines on when to rebook or refund, and the consequences if the passenger does not followthese guidelines. However, we should note that before, promo fares were totally nonrebookableand nonrefundable, the CAB official said.

Peredo said the CAB has decided that if rebooking happens too close to the flight, like within 24hours, there will be additional fees for the passenger. On the other hand, if it is the airline thatinitiated to rebook the passenger, then the passenger is not obligated to pay anything extra.

The airlines argued that the removal of the nonrefundability and nonrebookability conditions ofthe airline tickets will certainly result to higher airfares to the detriment of the riding public.

The airlines explained that the reason promotional fares are highly restricted is because of lesstransaction costs associated with the same. When these restrictions are removed on certain faretypes then these would certainly increase the related transaction cost, which may pave the wayfor the imposition of higher air fares.

What should be done instead is for consumers to make an informed choice, the airlines stressed.

The airlines want the resolutions entirely set aside, citing business considerations and

worldwide practices. But we cannot deny that there are complaints so we have also to upholdpublic convenience and service. But we cannot totally overhaul everything because we have toalign ourselves with the thrust of the DOTC [Department of Transportation andCommunications] to have a more comprehensive passenger rights bill soon, said Peredo.

The orders are set to take effect but stressed that these are still interim measures, pending theactual issuance of the DOTCs bill of rights.

Transportation Secretary Mar Roxas earlier said there is a step-by-step approach in puttingtogether a comprehensive air passenger bill of rights to address the increasing number of airtransport-related complaints.

Roxas said the DOTC has completed the first phase in outlining the passenger bill of rights byissuing Department Order 2012-12 on January 9, 2012.

The second phase was also done when the CAB amended the ER 7, or the Boarding Priority andCompensation for Denied Boarding, Delayed and Cancelled Flights. This new regulation tookeffect on June 5.


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The amended ER 7 increased the compensation for airline passengers who have been unjustlydenied boarding or experienced flight delay or cancellation.


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URC raises P7.44B from treasury shares

By Zinnia B. Dela Pea, The Philippine Star

Posted at 06/15/2012 8:50 AM | Updated asof 06/15/2012 9:14 AM

MANILA, Philippines - Universal RobinaCorp. (URC), the food and drinkmanufacturing arm of the John Gokongweifamily, has raised P7.44 billion from the saleof treasury shares to institutional investors.

In a disclosure to the Philippine StockExchange, URC said it sold 120 millioncommon shares previously held as treasuryshares at P62 each or a 4.8 percent discount

to the previous closing price and a 2.3percent discount to the 30-day volumeweighted average price.

The shares were crossed through a specialblock sale at the PSE yesterday.

CLSA Ltd. acted as sole bookrunner andsole placing agent for the sale.

URC said proceeds from the share sale will

be used to fund potential acquisitions andfor general corporate purposes.

The company has been expanding itsfootprint overseas and will soon open a newfactory in Burma. Its internationaloperations currently account for about athird of its business and is seen to grow asbig as its domestic operations in around fiveyears.

For this year, URC has set a capitalspending of P5.2 billion, 14 percent higherthan the P4.56 billion spent a year before.Majority of the capital budget, or 80 percent,will be used for the continued expansion ofits branded consumer foods segment

operations primarily snack foodsproduction facilities in the Philippines andbiscuit factories in its two biggest markets,Thailand and Vietnam.

The remaining 20 percent of the capex willgo to the construction of a $27-millionbioethanol plant at URCs sugar millingcomplex in Negros Occidental.

Bioethanol is a form of renewable energyintended to provide a more environmentallyand economically friendly alternative fossilfuels such as diesel and gasoline. It can bemade from very common crops such assugarcane, potato and corn.

The bioethanol plant, which will churn out100,00 liters of fuel a day, is projected tocontribute a little over one percent tocompanys revenues.

URC grew its net earnings in the first half ofits fiscal year ending September 2012 by36.5 percent to P4.48 billion due tosignificant improvement in market values ofbond and equity holdings and lower foreign

exchange loss from foreign currency-denominated transactions.

Sales rose 6.6 percent to P35.49 billionwhile core sales went up 13 percent.

URC is involved in a range of food-relatedbusinesses, including the manufacture anddistribution of branded consumer foods,production of hogs and day-old chicks,manufacture of animal and fish feeds,glucose and veterinary compounds, flourmilling, and sugar milling and refining.

The branded consumer foods segmentmanufactures and distributes snack,chocolate, candy, biscuit, bakery, beverage,noodles and tomato-based products.


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BSP keeps rates unchanged

By Karen Lema and Erik dela Cruz, Reuters

Posted at 06/14/2012 7:08 PM | Updated asof 06/14/2012 7:08 PM

MANILA - The Philippine central bank keptits main policy rate steady at a record lowfor a second consecutive meeting onThursday, saying inflation pressures weremanageable and market liquidity adequate,bolstering expectations it will stand pat onrates for the rest of the year.

The monetary authority also expectsinflation to remain subdued this year and the

next, as it kept its average inflation forecastthis year at 3.1 percent and lifted slightly its2013 estimate to 3.4 percent from 3.3percent.

The decision to hold the overnightborrowing rate at 4 percent was widelyexpected. All but one of 11 analysts in aReuters poll this week had forecast steadyrates, and most expect the central bank tohold for the rest of the year.

"The Monetary Board believes the benigninflation outlook and robust domesticgrowth provide adequate room to keeppolicy rates unchanged," Governor AmandoTetangco said in a statement, adding thetotal 50-basis-point cut in policy rates andbank reserve requirement reductions earlierin the year were still working their waythrough the economy.

But some economists said after the meetingthere may be room to cut rates to a newrecord low with increasing evidence ofcontinued weakness in the global economy.

Data earlier on Thursday showed overallPhilippine exports recovering slightly inApril, but a sharp drop in electronics

shipments underscored the risk ofweakening external demand facing Asia.

Weak electronics exports

"We think the door is still very much openfor more easing and I think the monetaryauthorities themselves have mentioned thisin the past, that they will watch for anydevelopment that could lead them to makean adjustment if necessary," said Jun Neri,economist at Bank of the Philippine Islands.

Exports, which account for about two-fifthsof the country's GDP, rose 7.6 percent in

April from a year earlier, as growth inshipments of garments and furniture offset asteep drop of 23.8 percent in electronics andsemiconductors, the first decline in thesector since December.

"The key short-term risk to watch out for thegrowth headwind from Europe. If they canget through this dangerous phase relativelyunscathed then a normalisation of rateswould quickly rise up in the policy agenda,"

said Aninda Mitra, economist at ANZ inSingapore. "There is no immediate need forstimulus per se."

Bucking a global slowdown, the Philippinesgrew at its strongest quarterly pace in twoyears in January to March, and the centralbank believes the momentum can besustained with domestic demand seenstaying resilient and the government bent onspending more on critical infrastructure.

Strong domestic demand, underpinned bymore than $1.6 billion in monthlyremittances from Filipinos abroad, shouldhelp offset the weakness in exports,authorities have said.


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Manila ramped up spending in the early partof the year, bolstering economic activity.But the spending level in the first threemonths of 2012, while 13 percent higherthan last year, was still below earlier

government projections.

Analysts in a Reuters quarterly poll in Aprilwere less optimistic about the country'sgrowth prospects as they forecast theeconomy to grow 3.8 percent this year,

slower than the government's 5 to 6 percenttarget.

Last week, China and Australia cut interestrates to boost domestic demand and help

shield their economies from growingdownside risks stemming from thedeepening euro zone crisis.

The central bank's policy-making MonetaryBoard holds a rate-setting meeting every sixweeks. It meets next on July 26.


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PH eco grows 6.4% in Q1; highest

in ASEAN

ABS-CBNnews.com

Posted at 05/31/2012 10:24 AM | Updatedas of 05/31/2012 1:58 PM

MANILA, Philippines (3RD UPDATE) -The Philippine economy grew by 6.4% inthe first quarter from an upwardly revisedgrowth of 4.9% last year, the governmentannounced on Thursday.

"This growth is well above the marketsconsensus forecast of 4.8 percent. Also, thePhilippines posted the highest growthamong ASEAN and other neighboringcountries except China," SocioeconomicPlanning Secretary Arsenio Balisacan said.

ASEANQ1 GDP

growth

Philippines 6.4%

Indonesia 6.3%

Vietnam 4.3%

Singapore 1.6%

Thailand 0.3%

Non-

ASEAN

Hong Kong 0.4%

South Korea 2.8%

Japan 2.8%

China 8.1%

The growth was attributed to thegovernment's strong infrastructure spendingand its conditional cash transfer (CCT)

program.

Compared to the fourth quarter of 2011, thePhilippine economy grew by 2.5% in thefirst quarter, slightly below market forecasts,putting pressure on the government to boostspending and raising the case for the centralbank to resume cutting rates later this year.

Balisacan expressed confidence thegovernment can meet its full-year GDP

target, or even exceed it.

"Given the preliminary first quarter 2012estimate, we expect that the full year 2012real GDP growth rate projection of 5% to6% is well within reach or may even exceedit," Balisacan said.

"At the same time, the government will notlet up in its efforts to accelerate the growthof the economy. For example, there is still

considerable room for faster acceleration ingovernment spending. Also the governmentwill remain vigilant to risk to growth,including those posed by the euro area woesand uncertainties in the world oil prices," headded.

The Philippines is targeting faster growth of5 to 6 percent this year against last year's 3.7percent, fuelled by higher governmentspending, a rebound in exports, and strong

domestic consumption.

Balisacan said the first quarter performanceserves as "a springboard" for the next 3quarters.

"The latest improvement on severalgovernance and competitiveness indicators,


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including Moodys recent change of outlookon the countrys Ba2 rating to positive fromstable, indicate that our macroeconomictargets for this year are achievable, given thesynergy between the public and private

sectors," he said.

"Surprisingly strong"

Economists were surprised by the strong6.4% year-on-year growth, but there arequestions as to whether this can besustained.

Eugene Leow, economist at DBS Bank inSingapore, said the 6.4% growth was

"surprisingly strong," on the back of thegovernment's fiscal spending

"We do not think the growth momentum canbe sustained because of the troubles inEurope. April data from the region has alsosoftened. The 6.4 percent year-on-yeargrowth may raise fears of demand-pushpressures but inflation should becomfortably within the central bank's

forecast range. There is scope for easing ifnecessary but I don't think the central bankis ready to push the trigger just yet. Ourforecast is for the rate to stay unchanged thisyear. The government also has room to

introduce a fiscal stimulus if needed," Leowsaid.

Jun Neri, economist at the Bank of thePhilippine Islands, said the strong pace ofeconomic growth warrants an upgrade of thePhilippines from the major credit ratingsagencies.

"Moody's and S&P, in particular, will takenote of stronger growth performance, as it

will make the relative size of our debt muchsmaller than overall output. Of course thequestion is the sustainability. It's a bigquestion mark, more so that headwindsparticularly from peripheral Europe areanticipated to have an impact on theremaining quarters of the year, which againshould compel our policymakers to sustain ifnot to continue to step up on expansionarypolicies," Neri said. - With Reuters


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NEDA: Q1 growth seen within target

By Mia Gonzalez, BusinessMirror

Posted at 05/24/2012 8:52 AM | Updated as of 05/24/2012 5:31 PM

MANILA, Philippines - Socioeconomic Planning Secretary Arsenio Balisacan said onWednesday the countrys economy expectedly grew within target in the first quarter as therewere no factors that might have pulled it lower than the 5-percent to 6-percent goal set by thegovernment this year.

Balisacan, who took his oath before President Aquino in the morning, also said inflation in thecountry would be quite tame as he does not foresee any major shocks, and also citedmoderate oil prices.

Asked if first-quarter growth might be around 5.2 percent, as mentioned by Mr. Aquino in arecent interview with Bloomberg, Balisacan said, Its around that. The target is 5 percent to 6

percent. The private sectoris forecasting something close to that.

He added that there were no major calamities in the first quarter that could have dampenedgrowth, remittances are quite positive, and public spending in the first quarter has been quiterobust.

As you have seen from the press releases of the various companies, there were high rates inincreases in their profits the past year, we expect that could have continued in the first quarter. Iam hopeful that we are within the target range [for growth], Balisacan said.

On the factors that could have fueled growth in the first quarter, Balisacan said that the

manufacturing survey on establishments was quite positive, the volume was positive growthand there were no major problems in agriculture during the period.

Asked about inflation, Balisacan said, I think inflation will be quite tame. Now its between 3percent and 4 percent. It will be within that. Im not foreseeing any major shocks. Oil prices havestarted to become more moderate.

As for the aspirational growth target of 7 percent to 8 percent, Balisacan reiterated that while itsa target for the medium term, we should really move in close to that; within that since thecountrys neighbors are growing at that rate.

I really dont think that is impossible or its a dream. Its doable. But we have bottlenecks;there are constraints that we really have to address. Infrastructure is one, roads, transport, hesaid.

The Neda chief said that the rate of infrastructure development in the Philippines could belikened to Thailands situation 15 years ago, so we really have to make a big push and get thePPP [Public-Private Partnership projects] moving, get all those internally publicly fundedprojects moving.


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Philippines' Q1 GDP growth seen accelerating to 2.9% q/q

Reuters

Posted at 05/24/2012 5:26 PM | Updated as of 05/24/2012 5:27 PM

Annual Q1 growth seen at 4.6% vs 3.7% in Q4

MANILA, Philippines - The Philippine economy may have grown at its fastest quarterly pace intwo years in January-March, helped by higher state spending and a recovery in exports,strengthening the case for the central bank to keep interest rates on hold next month.

Bucking a global slowdown, the Southeast Asian economy likely expanded a seasonally adjusted2.9 percent in the first quarter from the previous three months, a Reuters poll showed onThursday, picking up sharply from 0.9 percent in the last three months of 2011, and the highestsince the first quarter of 2010.

From a year earlier, growth may have accelerated to 4.6 percent, stronger than the fourthquarter's 3.7 percent.

However, analysts doubt this year's 5 to 6 percent growth target will be met as sluggish globaldemand clouds the outlook for the country's electronics-dominated exports.

"The main risk arises from external developments confronting the Philippines' narrow exportbase," said Aninda Mitra, an economist at ANZ. "If developments in Europe affect regionaldemand more adversely, then the downside risks will rise."

Exports, which account for two-fifths of the country's gross domestic product, fell for the first

time in three months in March, after climbing 12.8 percent in February and 3.1 percent inJanuary, as growth in electronics shipments slowed.

But central bank Governor Amando Tetangco said late on Wednesday the Philippines wasresilient enough to cope with a slowdown in advanced economies, even as he ruled out a break-up of the euro zone.

"From the standpoint of the Philippines, (the) EU problem can be likened to a pain in theshoulders... you can feel it but it's not going to cripple you," Tetangco said.

"We will be able to absorb any shocks because of our sources of resilience, such as external

reserves, improving macroeconomic fundamentals, and improving fiscal position."

Manila ramped up spending in the early part of the year, bolstering economic activity. But thespending level in the first three months of 2012, while 13 percent higher than last year, wasbelow earlier projections.

Tetangco has said there was less need to support the economy with the pick-up in exports inrecent months and higher state spending.


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The central bank next reviews base interest rates on June 14. They are currently at an all-timelow of 4.0 percent following two cuts totalling 50 basis points in January and March.


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No price hikes for basic goods: DTI

By Max V. de Leon, BusinessMirror

Posted at 02/24/2012 7:33 AM | Updated asof 02/24/2012 7:33 AM

MANILA, Philippines - Good news for theconsumers. The Department of Trade andIndustry (DTI) said it does not expect anyprice escalations or supply problems forbasic commodities for the rest of thesemester.

Another positive development for the public,

Trade Undersecretary for Consumer WelfareZenaida Maglaya said, is the foreseen dropin the prices of bread products and cannedsardines in the coming weeks.

Prices and supply of basic goods should bestable at least for this semester, includingrice, vegetable, pork chicken, fish andprocessed goods, Maglaya said after theNational Price Coordinating Council(NPCC) meeting on Thursday at the Board

of Investments building in Makati.

For bread, Maglaya said the bakers weredirected to submit their official receipts asthe flour millers have informed the DTI-ledNPCC that ex-mill prices of flour havealready gone down by P30 to P40 per sack.

As a rule of thumb, Maglaya said every P40drop in the price of flour should translate toa P1 decrease in loaf breads and a reduction

of P0.50 for 10-piece packs of pan de sal.

Maglaya said if the report of the millers istrue, the bakers should start implementingdownward price adjustments.

In the case of sardines, Maglaya said thelifting of the fishing ban beginning March 1

by the Bureau of Fisheries and AquaticResources should lead to lower prices forcanned sardines.

Tamban is a major cost component ofcanned sardines, so once the volume ofcatch has gone up, we will feel the effect onthe prices, she said.

Because of the fishing ban that started inDecember, the per-kilo price of Tambanrose to P28 from only P21. Sardines makersalso had to import Tamban at a landed costof P33 per kilo.

Marketing monitoring done by the DTI fromFebruary 13 to 17 showed that the price ofcanned sardines went to as high as P14 forthe brand Ligo from P13 in the previousmonth.

Maglaya said changes in the prices ofcanned sardines should be felt by March.

the role of economics in an imperfect world

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