HSBC upgraded Philippine Economic Growth Forecast 6.3 - 6.5 Percent

HSBC hikes anew Philippine growth forecast to 6.5%

The Hongkong and Shanghai Banking Corp. Ltd. raised anew the country’s economic growth forecast as the Philippines continued to stand out as one of the strongest performers in Asia.

In its latest Asian Economics report for the fourth quarter, HSBC economist Joseph Incalcaterra said the country’s gross domestic product (GDP) growth projection has been revised upwards to 6.5 percent instead of 6.3 percent this year due to the stronger-than-expected expansion in the first half.

The country’s GDP growth accelerated to seven percent in the second quarter of the year from 6.8 percent in the first quarter amid the strong boost from election related spending.

This brought the GDP expansion in the Philippines to 6.9 percent in the first half from 5.5 percent in the same period last year.

“The Philippines continues to stand out as one of Asia’s strongest performers. Following the strong outturn of growth in the first half of 2016, we recently raised our full-year forecast from 6.3 percent to 6.5 percent,” he said.

The bank sees the country’s GDP growth easing to 6.4 percent in the third quarter and to six percent in the fourth quarter.

“Although growth will moderate in year-on-year terms through the second half as the impact from the elections and budget front-loading wears off, overall domestic demand will nonetheless remain resilient as government spending continues to fuel growth,” Incalcaterra said.

Likewise, HSBC retained the GDP growth forecasts for 2017 and 2018 at 6.3 percent and 6.4 percent, respectively.

“This isn’t to say there aren’t challenges to growth. After all, exports have been contracting rather sharply as of late – while imports of capital equipment surged – and the trend growth of remittances has also moderated to approximately 3.5 percent,” he said.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances contracted 5.4 percent in July, bringing down the growth in the amount of money sent home by Filipinos abroad to three percent in the first seven months of the year.

Authorities believe the growth in receipts from the business process outsourcing (BPO) as well as tourism sectors would cushion the slowdown in the cash remittances.

“While remittances may not provide the same boost to consumption as before, we think that the improvement in domestic employment opportunities, mostly from construction, BPO and tourism, are more than able to offset the effect for now,” he said.

The economist noted long-term issued such as the structural trade deficit as well as the not too bright outlook for manufacturing exports outside of electronics.

He pointed out the Philippines would remain highly vulnerable to weather trends with the onset of La Niña after the bout with El Niño. - philSTAR

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Malaysian Terrorist Mohamas Amin Captured - Bombing Plans in Manila Condo Mall Revealed

Filipino soldiers stand guard next to a poster of Philippine President Rodrigo Duterte.PHOTO: EPA

Philippines thwarts terror attack with arrest of Malaysian bomb expert planning strike in Manila

The Philippine National Police (PNP) has thwarted an attempt by a terrorist bomb expert to stage bombing attacks right in the heart of Manila.

Malaysian terrorist Mohamas Amin, who had a 600,000 Philippine peso (S$17,020) bounty on his head, was presented in a press briefing by Chief Supt Roel Obusan, acting director of the PNP-Criminal Investigation and Detection Group (CIDG) on Monday (Oct 10).

Amin was arrested at 4am on Saturday (Oct 8) by joint operatives from the Anti-Transnational Crimes Unit (ATCU) of the CIDG and the PNP Intelligence Group during a raid in Quezon City.

Also arrested were Bilal Taalam, the owner of the house where Amin was staying, and Adnan Malangkis. Eight other tenants in the house were also being investigated.

The CIDG believed all three had links with the Abu Sayyaf Group in Sulu. A fragmentation grenade, several rounds of ammunition, various identification cards, a blue print of a condo mall in Quezon City and a cellular phone were recovered during the raid.

Chief Supt Obusan said that aside from the documents, the results of the police interrogation on the suspects further strengthened their belief about Amin's plot to stage bombing attacks in Manila.

"Our operatives confiscated a blue print of a building, a condo mall (in Quezon City), so it's surprising that they are doing some casing on the area," Chief Supt Obusan said, refusing to name the condo mall to avoid panic.

Amin, who also goes by the names Asman, Akman Amin and Amin Aklam, is a bomb expert and is a subject of an arrest warrant for a murder case filed at the Regional Trial Court (RTC) in Jolo, Sulu.

Other Abu Sayyaf members are also facing the same charges in the same court. Amin and Malangkis were subjected to inquest proceedings for violations of the Comprehensive Firearms and Ammunition Regulation Act and Illegal Possession of Explosives Act before the Quezon City Regional Trial Court.

Amin will also be charged with violations of Article 78 of the Revised Penal Code for concealing his true identity. On the other hand, Taalam was charged with obstruction of justice and harbouring a fugitive or wanted person.

Chief Supt Obusan said Amin had an alliance with the three suspected suppliers of arms to Abu Sayyaf and other political warlords in Zambasulta (Zamboanga, Basilan, Sulu, Tawi-Tawi ) areas. They were Hja Risdimona Isa, Aljamer Akarab Mandin and Hurbin Sahibul, who were arrested in West Crame, San Juan City, last month. – Strait Times

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