World Bank Up Philippine Growth Forecast to 7%; Japanese Firms embark on Outsourcing investment

World Bank ups Philippine growth forecasts amid East Asia slow down

 

Washington-based World Bank on Monday raise its Philippine economic growth forecast for this year and the next, citing strong private and public consumption, in the face of an expected slowdown for the rest of developing East Asia.

 

In a video conference with developing East Asia-based journalists, World Bank East Asia and Pacific chief economist in Singapore Bert Hofman said forecasts for the whole region was "a bit down" as global demand remains tepid.

 

For developing countries in East Asia and the Pacific as a whole, gross domestic product (GDP) growth is seen at 7.1 percent from 7.8 percent in 2013 and 7.2 percent from 7.6 percent in 2014, according to the multilateral lender's East Asia and the Pacific Economic Update.

 

The lender, however, raised the Philippine GDP growth forecast to 7 percent from 6.2 percent this year and 6.7 percent from 6.4 percent in 2014.

 

The bank said the Philippines will grow by 6.8 percent in 2015.

 

"Most of the world's demand was slower than expected," said Hofman.

 

In the report, World Bank said the strong 7.6-percent Philippine GDP growth in the first half was "underpinned by consumption and services, with investment and manufacturing giving an extra boost."

 

Hofman noted Philippine consumer demand will stay strong and government spending likely to increase as the administration tries to address infrastructure bottlenecks.

 

According to the bank, the Philippine government needs to increase revenues so it can bankroll education, healthcare and infrastructure development as a way of making growth felt at the grassroots.

 

"Philippines needs more revenues in order to have a sustainable financing of government's inclusive growth agenda and infrastructure development," said Hofman.

 

In a briefing in Manila after the video conference, World Bank lead economist for the Philippines Rogier van den Brink said the approval of a fiscal incentives bill – a measure rationalizing tax perks of businesses – as well as moves toward improving the ease of doing business and abolishing anti-competitive measures will help "lock-in the growth path that the country seems to be embarking on."

 

He said the government tax perks should be given to "sectors that are labor intensive" because high unemployment has belied the country's strong growth.

 

Van den Brink, however, said reforms should only come from the government. "The policy reform agenda to create more and better jobs is wide ranging, which is why it will need a broad coalition support."

 

He maintained the Philippine economy will continue to enjoy strong fundamentals amid low and stable inflation in the next two to three years. Inflation settled at 2.8 percent in the nine months to September.

 

Japan companies looks to invest in Philippine outsourcing industry, says IBPAP

 

Japanese companies want to get a piece of the action in information technology and business process management by investing in the Philippine outsourcing industry, an official told reporters in a press conference Monday.

 

Five Japanese companies are dead serious about this, according to the Information Technology and Business Processing Association of the Philippines (IBPAP).

 

"There were at least five Japanese companies that visited the Philippines earlier to do due diligence, to determine if they will invest here or outsource," said IBPAP president Jose Mari Mercado.

 

On the Philippine side, Mercado noted 14 IT companies attended a forum in Japan organized by the Philippine embassy in Roppongi, Tokyo to promote the IT competency of Filipinos. There were around 150 Japanese businessmen at the forum.

 

"Our key message there on our IT competency is that we have the people and resources," Mercado said. "Japan is running out of these resources," he added.

 

Other Japanese companies were interested in animation, contact centers, and IT programming. Right now, 20 Japanese firms are outsourcing part of their business processes in the Philippines.

 

Mercado said Fujitsu is one of the companies with IT support operations in the Philippines, noting most of the Japanese companies with outsourced business process operations are in finance, accounting services and IT support. – VS, GMA News

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Shouting Idiots? .. hong kong UNCIVILIZED journalists kicked out of APEC for shouting at Philippine President Aquino

Yahoo Southeast Asia Newsroom/EPA - Philippine President Benigno Aquino during APEC Summit in Bali Indonesia

APEC hosts Indonesia on Monday denied stifling press freedom after withdrawing the credentials of nine Hong Kong journalists for shouting questions at the Philippine leader, insisting that they had posed a security threat.

 

Despite protests from Hong Kong's main journalist group, President Benigno Aquino's spokesman also said the journalists had "crossed the line" by aggressively questioning him about a hostage siege in Manila that left eight Hong Kong people dead in 2010.

 

"We deemed it improper for media to act that way, as they didn't talk normally but they were very demonstrative, like they were protesting," Gatot Dewa Broto, the Indonesian communications ministry official who is in charge of the APEC media centre in Bali, told AFP.

 

"So we did this due to security concerns," he said, adding that the press badges of nine Hong Kong journalists had been deactivated.

 

They were free to remain in Bali, but could no longer access the media centre or venues being used for the summit of the Asia-Pacific Economic Cooperation forum, the official said.

 

Hong Kong media said journalists and technicians were affected from Now TV, RTHK and Commercial Radio.

 

As Aquino entered a meeting of APEC business leaders on Sunday, the reporters demanded to know whether he would meet Hong Kong leader Leung Chun-ying in Bali and apologize to the families of the hostage crisis victims.

 

Now TV footage showed the journalists shouting "So you're ignoring the Hong Kong people, right?" and "Have you met CY Leung" as they tried to reach their microphones over Aquino's entourage.

 

He did not answer the questions, and APEC staff then intervened to admonish the journalists with one accusing the reporters of "ambushing one of our visitors", Now TV showed.

 

Sham Yee-lan, chairwoman of the Hong Kong Journalists' Association, said Aquino's government had "yet to provide a satisfactory explanation" for why the eight Hong Kongers had died in a botched police rescue and that the journalists in Bali were doing their job.

 

"The barring of the media for asking critical questions is an outright infringement of press freedom that is totally unacceptable," she said in a statement.

 

Now TV said its journalists were "only engaged in normal reporting duties" and urged intervention from the Hong Kong government, which is one of APEC's 21 members. There was no immediate comment on the incident from Hong Kong's delegation at APEC.

 

But Aquino's spokesman Ricky Carandang said the reporters had crossed an ethical boundary.

 

"As a former journalist I know what it's like to aggressively question a subject," he told AFP in Bali.

 

"The behavior of these reporters crossed the line from mere questioning to heckling, and was even construed by Indonesian security personnel assigned to the president as a potential physical threat to him," he said.

 

Yahoo! News

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