President's Message
Ma. Victoria C. Españo Message from the President:

Ma. Victoria C. Españo


PRESIDENT’S MESSAGE

Year 2018 is indeed a special year for FINEX: it marks our 50th anniversary as a leading organization of finance professionals. Through the able leadership of our past presidents and the multitude of members who have actively participated in and supported our different initiatives, we have made significant achievements in supporting the professional development of finance executives,

Read More
Affiliations
Ads
A balanced view of the economy
Print PDF
Zoilo By: Zoilo "Bingo" P. Dejaresco III

BUSINESS MIRROR(FINEX Free Enterprise)
April 19, 2017

A balanced view of the economy

Finex Free Enterprise is a rotating column of members of the Financial Executives Institute of the Philippines appearing every Wednesday & Friday in BusinessMirror, banking & finance Section.

The first Finex economic briefing at a five-star hotel recently displayed a fairly moderate assessment of the Philippine economy.

External risks considered the condition of the United States  being the world’s foremost industrialized nation and one of the lead trading partners of the country.

The Federal Reserve  has raised interest rates amid a rise in property prices.  America is currently enjoying one of the highest consumer confidence levels since 2000 and its labor sector is nearing full employment. This is counterbalanced only by the protectionist and insular mind-set of its president.

The European Union’s (EU) future is as clear as mud, with individual nations facing political and financial risks. Article 50 is a risk that could delay the full exit of Britain from the EU for another two years.

But Philippine relations with the EU is not major, unlike anemic Japan, whose immediate future can be bolstered by a strong dollar giving impetus to its exports, which is a major Japanese strength.

China, meanwhile, has maintained moderate growth and has opted for stability rather than expansion in the face of mounting debt. China’s performance in 2017 will induce hiccups to many  (including the Philippines) being the second-biggest economy on the planet.

The Asean, for as long as it finally moves toward regional competitiveness and integration, will be good for the country. Most countries in the region have strong domestic demand and can be a ripe target for Philippine products.

On the other hand, the greatest geopolitical risks remain centered on the continuing belligerence of North Korea as a “nuclear brat” and the continuing tug of war at the South China Sea.

For internal indicators, the Asian Development Bank is looking at a 6.4-percent GDP growth in 2017. Those who anticipate higher growth rates project a wholesale adoption of the proposed Comprehensive Tax Reform Program.

The latter will help bring about P200 billion in consumer spending and revenues of another P400 billion for the government. This is key to financing the infrastructure buildup that, at 5.3 percent of GDP in 2016, is expected dramatically to rise to over 7 percent of GDP from 2019 to 2022.

Such spending is aimed at attracting more foreign direct investments that is sorely lacking. The next few years is expected to witness rising inflation reaching 3 percent by 2018. Inflation at this level will help determine the Central Bank’s monetary-policy stance. A moderate rise in interest rate, therefore, is in the horizon. A P50- to P51-per- dollar exchange rate is, likewise, foreseen.  On the downside will be the slide in the current account ratio-to- GDP in the coming years.

Likewise, from the third quarter of 2016 to the first quarter of 2017, the nation saw a stock market generally characterized by slow growth and expensive valuations and slowing business confidence.

The stock-market index hitting 6,600 signals buying opportunities, while the index at 8,500 is not within range in the very near term.

The long-term outlook is more favorable. The combination of government policies is expected to reduce poverty in the country, from 22 percent in 2016 to only 16 percent by the year 2016. There, a truly middle class will be formed and signals the true economic liberation for Filipinos.

Moreover, unlike China and Japan, the Philippines has a young population. Those aged 0 to 14 constitute 40 percent of the 103 million Filipinos.

We are also in a demographic “sweet spot”, where our consumption activities only serve to attract investors and merchants to the country. As the writer Henry S. Dent Jr. said in assessing the great bubble burst in 2017-2019, it is the population, and not the government, that determines the economic future of a country.

****

Bingo Dejaresco, a former banker, is a financial consultant and media practitioner. A life member, he is also the chairman of The Professional Development and Broadcast Media of Finex. His views here, however, are personal and do not necessarily reflect those of Finex.  This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

http://www.businessmirror.com.ph/a-balanced- view-of- the-economy/

FEATURED ARTICLES
Chinese influence in business
Ms. Wilma Inventor MirandaMs. Wilma Inventor Miranda

BUSINESS MIRROR (FINEX Free Enterprise)
February 16, 2018

Chinese influence in business

With the celebration of Chinese New Year, it is a perfect time to look deeper into how the Chinese greatly influence our economy. When we see “made in China” nowadays, we usually relate that to cheap items, low quality, fake goods and imitations. But this article will not focus on the Chinese from the mainland but the Chinese who began their businesses generations ago and have children who are now Filipino-Chinese and successful businessmen themselves.

Read more...
Dr. Jose Pardo – Just Think Positive!
Flor G. TarrielaBy Flor G. Tarriela

Business World (FINEX Folio)
February 16, 2018

Dr. Jose Pardo – Just Think Positive!s

Last Saturday Jose “Titoy” Pardo, PSE Chairman and former Secretary of Trade/Finance was conferred the Degree of Doctor of Science in Finance by De La Salle University headed by Br. Raymundo Suplido.

At the luncheon celebration, the “new Doctor” was asked to dispense a cure to problems at hand, he shared how to cope with emerging VUCA (Volatility, Uncertainty, Complexity and Ambiguity) related problems. Dr. Pardo picked up from Dr. Charles Handy, author of The Age of Unreason, who said “All businesses or any economic activity are vulnerable to shock and inevitably will experience tremors in the market place. The important thing is to be quick in responding to change and to never succumb to the status quo style of management. If it ain’t broke, fix it.”

Read more...
PSE: Unified at last
J. Albert GamboaBy J. Albert Gamboa

MANILA TIMES(FINEX Files)
February 16, 2018

PSE: Unified at last

More than 25 years after the merger of the Manila Stock Exchange (MSE) and the Makati Stock Exchange (MKSE) into the Philippine Stock Exchange (PSE), the country’s securities industry is set to be finally unified in a single trading floor.

Read more...
Ethical challenges in today’s world
By Mercedes B. SuleikBy Mercedes B. Suleik

BUSINESS MIRROR(FINEX Free Enterprise)
February 14, 2018

Ethical challenges in today’s world

Pundits sometimes quip that “business ethics” is an oxymoron, a contradiction in terms because it is said that there is an inherent conflict between ethics and the pursuit of profit. But more and more, as we see the effects of such unmitigated self-interest, we begin to wonder whether the mantra of the 1980s, “Greed is good” has not visited disaster on so many people today. Today we find ourselves in a quandary—is our world spinning out of control? Has evil taken root in every sphere of our lives, so that even the very means of our efforts to sustain our existence are now suspect?.

Read more...
A La Juventud Filipina
By Mercedes B. SuleikBy Mercedes B. Suleik

BUSINESS MIRROR(FINEX Free Enterprise)
September 13, 2017

Faith in the workplace

It has often been considered that faith and the ordinary life of a person, that is his work, his daily activities, are not compatible. That, for instance, being ethical and being guided by morals in business or in the workplace, must be dichotomized from religious belief.

Read more...
Swedish death cleaning and Lagom
BENEL D. LAGUABy BENEL D. LAGUA

Swedish death cleaning and Lagom (Business Option)
Feb.15, 2018

Swedish death cleaning and Lagom

Mafe, my beloved spouse, has been asking me recently to start disposing some of the old stuff that have been untouched in our attic. After all, I’ve accumulated quite a ton of books, magazine and school stuff from studying and teaching all these years. And even my clothes and gadget collection (men stuff) have remained to pile up. It all came to head recently when she shared Margarita Magnusson’s new book, “The Gentle Art of Swedish Death Cleaning.”.

Read more...
Partners