Motolite: Peso rise may force out of business

**timrev** · August 18th, 2012 05:33 PM

Peso rise may force battery manufacturer out of business
http://www.abs-cbnnews.com/business/...r-out-business

Oriental & Motolite Marketing Corp., manufacturer of vehicle batteries, warned that it may close its plant in the country if the peso continues to appreciate and cut its export earnings.

But it can certainly come to a point where we will be attracted to invest in manufacturing abroad and retiring our Filipino workers or simply do trading

**ghosthunter** · August 18th, 2012 06:14 PM

Originally Posted by timrev

Peso rise may force battery manufacturer out of business
http://www.abs-cbnnews.com/business/...r-out-business

Oriental & Motolite Marketing Corp., manufacturer of vehicle batteries, warned that it may close its plant in the country if the peso continues to appreciate and cut its export earnings.

Just another example of how small the Philippine market really is for high value products.

**Monseratto** · August 18th, 2012 06:38 PM

Yep, cheaper to just import from China or even our asean neighbours and market it here. The Philippines is just too expensive...

**nelany** · August 18th, 2012 08:57 PM

One disadvantage we have is electricity is too expensive and unstable.

**uls** · August 18th, 2012 09:10 PM

di lang motolite

http://www.bworldonline.com/content....-peso&id=57031

Exporters warn on strong peso

REPRESENTATIVES of the export sector on Friday voiced concern anew over the peso’s strength against the US dollar, saying further appreciation of the local currency could drive some manufacturers to relocate and others to close shop altogether.

“What we want is to create a new understanding that there are more dollar earners now and a stronger peso impacts them and bulk of the population depends on them. The government should consider having a bias towards a weaker peso,” Sergio R. Ortiz-Luis, Jr., president of the Philippine Exporters Confederation, Inc. (Philexport), said during a press briefing in Makati City that was organized by his group and the Competitive Currency Forum.

He noted that foreign exchange trading has been “highly speculative”, adding that a number of smaller exporters in the provinces had been forced to close shop.

A representative of the business process outsourcing (BPO) industry shared the same concern, but said the sector has much more room to maneuver.

“If the exchange rate goes to the mid- to high-P30 (against the dollar), then the growth of the sector is impacted” according to Ronald L. Arambulo, executive director for finance of the Business Processing Association of the Philippines.

Still, a devaluation of India’s currency could weigh on the Philippine BPO, one economist said during the briefing.

“The rupee has devalued 25% since July 2011 which will put considerable squeeze on our business process outsourcing sector because India is our greatest rival in that area,” said University of the Philippines School of Economics Professor Raul V. Fabella.

**Monseratto** · August 18th, 2012 09:46 PM

Isn't this caused by the inflows of OFW money, too much dollar in the system? Even OFW complained before that their dollar has shrunk against the peso.

The strengthening of peso against the dollar for the past 37 months is a good news in Philippine economic view but resulted to a very HARD BLOW for us OFWs.

Come and think of it. Let’s assume we are working on a certain company paying us in dollar in 2003. Five years later the exchange rate dropped from 55.60Php to 41.85Php today. That is a clear 24.73% decrease in our income. If you are going to consider the rising price of basic needs/commodities then it will surely be like a double knock-out punch for us.

**niky** · August 18th, 2012 11:39 PM

This is something that should have been done in Gloria's time, also, but she trumpeted the strengthening peso as an "achievement" of her administration.

Since our debt portfolio has improved, we might as well stabilize the currency and hold it where it is. I'd say devalue it, but that would have its ramifications for those of us who don't earn income from overseas.

A 50:1 exchange rate, though, should put us on more competitive footing with other countries in terms of BPO.

**carwhacko** · August 18th, 2012 11:48 PM

Mga sir Im no expert about the economy pero matagal ko na natatanong at palaisipan para sakin ngayon pano ba bumababa yung rate ng dolyar natin? I mean kasi daddy ko ofw so nagagalit kami pag mababa palit kasi dun nakabase kung gano kalaki matatanggap niya. Ngayon naman na tumaas piso laban sa dolyar sabe nila bababa daw lahat ng bilihin pero parang hindi ko naman maramdaman tapos bumaba pa palit ng dolyar. Date naabutan ko yung 54 na palitan eh. Sana ma explain niyo sakin ano ba mga contributing factors para bumaba yung dollar rate and paano naman ito tataas? OT pala ako sorry!

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**mbk347** · August 19th, 2012 07:12 AM

this the sad state of our manufacturing companies here in the philippines... no support from the government... a hell of a lot better opportunities in other countries for growth... classic example i can remember was SARAO... iconic jeep manufacturer left for dead...

**CoDer** · August 19th, 2012 09:18 AM

Originally Posted by niky

This is something that should have been done in Gloria's time, also, but she trumpeted the strengthening peso as an "achievement" of her administration.

Since our debt portfolio has improved, we might as well stabilize the currency and hold it where it is. I'd say devalue it, but that would have its ramifications for those of us who don't earn income from overseas.

A 50:1 exchange rate, though, should put us on more competitive footing with other countries in terms of BPO.

I totally agree with this. Government should do something about the strengthening of our peso or they can bid bye-bye to foreign investor. BPO will surely take a hit if this continues.

Stronger peso, expensive power rate, red tape, stupid restrictions means our neighboring countries are lucrative option.