Motolite: Peso rise may force out of business

[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.

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]

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]

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

[nelany]

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

[uls]

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]

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]

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]

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]

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]

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.

[uls]

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.

strong dollar inflow (OFW remittances, BPO earnings, export earnings, foreign investment)

there's a lot of dollars coming in kaya humihina ang dollar against the peso

--

if the govt wants to control peso strength the BSP should set a price ceiling (like P45 to $1)

BSP will print pesos to buy dollars

same thing what the Swiss National Bank does to keep their currency from strengthening against the euro. they set the price ceiling at 1.20

[uls]

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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humihina ang dolyar laban sa piso kasi madami dolyar pumapasok sa Pinas

kasi mga OFW lakas magpadala ng pera hehe

[yebo]

the government should take advantage of the high peso/low dollar by paying its external debt. this way they save money by being able to buy dollars at a low rate vis-a-vis the peso (so more $ loans paid for less P, less taxes). by doing so they will also create a demand for the dollar, increasing the exchange rate.

kaso lang nga pag may nakita silang excess sa budget (since money allocated for servicing foreign loans will go down due to the exchange rate) they will not think of paying the loan in advance. what they will do is look for ways to spend the money.