Philippine Economy Talk

[jut703]

There is still the threat of removing the PEZA incentive (5% GIT) and replace with 15% regular corporate income tax under TRAIN2. Simulations showed an average of 50% to 250% additional cash outflow. Most expansions are on hold or diverted to Vietnam, Malaysia or India. Dollars are being sent back to HQ, thanks to Trump's tax reforms.

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Interesting, is this confirmed? It wasn't mentioned at all in the recent stock market and economic briefing I watched.

Gist is that we're taking a hit now because of inflation and a current account deficit, but the inflation is temporary because it's tied to the initial shock of the tax reform and the current account deficit is due to the weakening peso brought about by huge imports of capital goods. These capital goods will then be used for the infra projects which are expected to improve our country's investment standing in the medium term.

A few positive highlights that are keeping us afloat - BPO/OFW remittances are still growing, and this is what has allowed us to grow consistently over the past decade. Tax collection has actually surpassed target in Q1, meaning that there is funding for the projects planned. And domestic consumption has not dampened despite the higher prices.

Net, if the Philippines can weather this initial storm - it will come out stronger than ever. This is under the premise that we are undergoing a correction, not a full-blown bear.


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[mda]

Maraming kalokohan sa TRAIN.

[dreamur]

Uncertainty still for US investors. China is our only hope. The best country in the whole universe!

PEZA manager for promotion and public relations Elmer San Pascual earlier said a number of foreign companies have shelved new investments and expansion plans due to uncertainties brought about by TRAIN 1, and is being created now by TRAIN 2.

Meanwhile, investment pledges from China to the country’s economic zones saw a dramatic 228 percent increase to P239.63 million in the first quarter from P40 million in the same period last year.

US investments in ecozones continue to shrink on TRAIN fears | Philstar.com

[dreamur]

Interesting, is this confirmed? It wasn't mentioned at all in the recent stock market and economic briefing I watched.

Gist is that we're taking a hit now because of inflation and a current account deficit, but the inflation is temporary because it's tied to the initial shock of the tax reform and the current account deficit is due to the weakening peso brought about by huge imports of capital goods. These capital goods will then be used for the infra projects which are expected to improve our country's investment standing in the medium term.

A few positive highlights that are keeping us afloat - BPO/OFW remittances are still growing, and this is what has allowed us to grow consistently over the past decade. Tax collection has actually surpassed target in Q1, meaning that there is funding for the projects planned. And domestic consumption has not dampened despite the higher prices.

Net, if the Philippines can weather this initial storm - it will come out stronger than ever. This is under the premise that we are undergoing a correction, not a full-blown bear.


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DOF and PEZA are sending different messages to investors and it reflects on the kind of fiscal policy (or the lack of it) by this administration. As PEZA director general Plaza posted on her FB wall - "why kill the goose the lays the golden eggs?".

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[dreamur]

Curious how the market will react on Monday.

Standard & Poor's upgrades Philippines credit outlook to 'positive' - CNN Philippines

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[uls]

market already reacted yesterday

psei +103.60

[uls]

as if PH doesn't have enough inflation pressure

Teachers ask for wage hike amid TRAIN law | Inquirer News



the govt raised salaries of AFP and PNP people January this year

that's several billions of pesos more in circulation

[Monseratto]

Weak peso, Panda Bond sale in China pushed PH debt to P6.879-T in Q1 | Inquirer Business

[uls]

^^^

from Digong thread page 1170

[shadow]

Tax incentives na nga lang ang pakinabang ng mga investors aalisin pa! Tama yan doon na lang sila mag invest sa neighbors natin


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[dreamur]

Is it all about money at the expense of dignity and sovereignty? Wow!

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[uls]

the developers don't seem to mind

hehe

[leonleon]

Is it all about money at the expense of dignity and sovereignty? Wow!

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May naalala tuloy ako.

Yung married couple na kilala namin, biglang andami pera, andami business, swimming in money.

We were all wondering how that happened.

It was like they won the lottery.

Instant, overnight millionaires kasi yung mag-asawa.

This was in the 80's.

But the real story?

Naging "mistress" "f*ck doll" "kabit", you get the point, yung babae ng isang very rich CH businessman.

With the consent of the husband, so it turned out.

Indecent proposal accepted with eyes wide shut.

It happens.

Greed is good di ba?

For the PH, our politicians will make sure of that.

[uls]

Chinese appetite for Manila condos grows with warmer ties, weaker peso -
Nikkei Asian Review

Two major developers saw their 2017 sales surge, thanks to Chinese buyers. Ayala Land, the country's largest real estate company, said 49.4% of its international sales, which accounted for 34% of its total 122 billion pesos in total sales, came from Chinese buyers. The share of American and Singaporean buyers trailed at 15.2% and 5.4%, respectively. In 2016, Chinese made up around 10% of the company's international sales.

At SM Prime Holdings, the nation's most valuable real estate company, Chinese comprised 10% of international sales in 2017, up from "less than 5%" in 2016, according to Chief Financial Officer John Ong.

Developers said the reason is clear.

"You've seen what has happened in the last two years with the warming of relations between the Philippines and China," Ayala Land CEO Bobby Dy told reporters last month. "We see it in office take-ups from offshore gaming companies ... and also in the tourism numbers. We're also seeing a lot of Chinese investors buy property."

The real estate arm of DMCI Holdings, a major condominium builder in Metro Manila, said over 50% of its international sales in the first quarter are from Chinese, with mainland investors snapping up units. "If we don't control them, it could go up to 90%. No kidding," DMCI President Isidro Consuji said early this month.

DMCI has imposed a self-restriction of "one buyer, one unit."

"Our worry is that if we have too many absentee residences, you might have what you see in Shanghai or Beijing -- totally sold buildings but nobody is living there. It's also out of our objective of selling to end users -- preferably local end users," Consunji said.

[uls]

haha

meron pala dito mga holier-than-thou

[dreamur]

OT: China is a communist country. They do not believe in what the bible says.

[uls]

OT: China's not the one pointing out someone else's moral values

dreamur
Re: Philippine Economy Talk

Again, it speaks a lot about one's character and moral values.

[dreamur]

OT: China's not the one pointing out someone else's moral values

Sorry, it wasnt meant for you...

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[dreamur]

Again, it speaks a lot about one's character and moral values.

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[uls]

yeah tell that to the developers

and casino operators