...The Economy of the Philippines and Its Neighbors: Indonesia and Malaysia By Larry Gulley In Partial Fulfillment of Requirements for MGMT 220: Individual Project 3 AIU June 30, 2012 Abstract The economy of the Philippines, as well as that of its neighbors, Indonesia and Malaysia, has weathered some rough patches. This area of the world has not lived up to its potential in spite of its naturally rich resources. But they are showing improvement, especially Malaysia. These countries compete with tourism and the services area. They also have strengths in agriculture and manufacturing. Table of Contents Economy of the Philippines Speaker Notes……………………………………………...1 Introduction………………………………………………………………………………4 Economy of the Philippines…………………………………………………………....4 Economy of the Philippines 2012……………………………………………………..4 Philippines Economic Strengths………………………………………………………4 Economy of Indonesia………………………………………………………………….5 Economy of Indonesia 2012…………………………………………………………...5 Indonesia Economic Strengths………………………………………………………..5 Economy of Malaysia…………………………………………………………………...6 Economy of Malaysia 2012…………………………………………………………….6 Malaysia Economic Strengths…………………………………………………………6 Impacts of Economic Strengths………………………………………………………..7 Investing in the Philippines: Management Issues……………………………………7 Investing in the Philippines: Management Issues……………………………………8 Conclusion……………………………………………………………………………….8 References…………………………………………………………………………………..9 Economy...
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...Reaction Paper: A Roadmap to the Philippines' Future: Toward a Knowledge-Based Economy The presentation discussed basic information about the Philippines' plan on building the Knowledge-Based Economy (KBE) as part of the Medium Term Development Plan by the Arroyo administration. In the discussion, the author identified the four pillars of KBE which shall serve as the foundation for knowledge-driven development process. It was emphasized in the process that the key for relevant economic development for the country is when the people are able to acquire, create, disseminate and apply knowledge to uplift the status of their lives. It is seen as possible answer to the long-running problem of the country on poverty issues, necessary to enable Philippines to face new global challenges and trends specifically on economic development. In the presentation, the author also present the existing educational setup of the Philippines which gearing toward the attainment of the KBE. The Philippines created a trifocalized system of education system where the basic education, higher education and technical-vocational education are working together synchronously. Its objective is to develop educated and innovative workforce with relevant knowledge, skills and attitude which could be offered both in domestic and foreign job market. But this move and the present educational achievements (i.e. ladderization, student assistance program, ETEEAP) of the Philippine education system is not enough...
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...PhilippinesEconomic Overview of Philippines “One aggregate indicator of robustness and the most off-cited would be GDP growth performance which gives an aggregate impression of the business environment of a country.” (Plummer, 2009) The Philippines narrowly qualifies as a lower middle-income country based on the World Bank’s classification. With its sound economic fundamentals and trained workforce, the Philippines has been among the dynamically emerging markets in the region. Growth in the Philippines is on average about 5% since 2004, significantly greater than the rate achieved in the past two decades. (The World Bank, 2014) Despite the global economic downturn, Philippines has slowed down the impact of recession due to the low reliance on exports, relatively resilient domestic consumption, high amount of remittances from a substantial number of Filipino labour, and a fast growing business process outsourcing industry. (Central Intelligence Agency, 2014) 1.1 Production Output Performance Analysis According to the Real GDP data computed by World Bank, the Philippines has maintained a relatively stable pattern of growth since year 2005. However, in year 2007, there was a sharp decline in the real GDP from near 7% to close to 1%. This could be due to the World Financial Crisis, which resulted in the negative impact on the Philippines economy. The country’s sluggish domestic investment and its declining share in GDP had only started to recover and pick up...
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...The Philippine economy managed to grow in the first semester of 2014 despite the haunting effect of Typhoon Yolanda that hit the country during the fourth quarter of 2013 and the lingering weakness of the global economy. For the first semester of 2014, Gross Domestic Product (GDP) grew by 6.0%, relatively slower than 7.8% reported in the first semester of 2013 and below the 6.5% -7.5% National Government’s target for the year. Meanwhile, Gross National Income (GNI) accelerated by 7.2% from 6.8% in the first semester of 2013. The Philippine is usually described as domestic-demand driven economy, but because of logistical challenges this year, the second quarter growth of 2014 was driven by net exports. Total exports grew by 10.3 % in the second quarter of 2014, a rebound from the 7.7% contraction in the same period last year. The growth was fuelled by exports of goods and exports of services. Total exports of goods increased by 10.0% in the second quarter of 2014 from a decline of 8.8% in the same period last year. Electronics manufacturers, the country’s largest exporters, improved their export growth forecast for the year to 8.0% from the previous 5.0% with demand expected to improve on the back of the economic recovery in the industry’s major export markets like the United States and China, and the lifting of Manila’s extended truck ban. Household Final Consumption Expenditures continued to expand in the second quarter of 2014 by 5.3% relative to the 5.1% reported in the...
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...demands and requests by citizens, ultimately seeking a new direction leading to a better life. One of the issues needed to be tackled was the longstanding problems in the agriculture sector. Considered an integral part in the country’s economy, the agriculture sector accounts a significant portion of the total employment, which ranged from 45-50% during the 1980s. On the other hand, this sector also attributed significant portions of the total poor in the country for decades. Thus, in June 1988, the Comprehensive Agrarian Reform Program (CARP) was signed into law, paving the way for extensive land distribution and reforms which communist insurgencies urged during the Marcos regime. Consequently, the initial stages of the implementation process of CARP was met with apparent complications, expectedly so given that such a policy entailed a wide scope, whilst rural landlords provided staunch opposition in seizing their ownership to government. However, as the years passed and administrations would change, the promises of sweeping agrarian reform have remained unfinished, otherwise, significantly watered down. Such arbitration would be considered a detrimental factor to the current pitfalls that have hindered the development of Philippine political economy. In that, this paper questions what led to this failure of comprehensive agrarian reform and in pronouncing these mistakes, did other countries experience who also employed land reforms if they experienced similar dilemmas. We argue...
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...Growth per capita 5 Unemployment & Price level Changes Inflation 6 Exchange Rate Innovations 7 Investments in the Stock Market 7 Investments in the Bond Market 8 Foreign Exchange Reserves 9 Structure of Industries 10 The Banking System 10 Monetary Policy / Money Supply Growth 11 Foreign Debt 12 Capital Flight 12 Asian Currency Crisis 13 Philippines before the crisis 13 What caused the Asian Currency Crisis? The effect it had on the Philippines and other countries 13 Looking into the Future 17 Prevention as the Best Form of Management 17 Some Policy Lessons From the Asian Crisis 17 Need for Great Caution About Financial Liberalization and Globalization 17 Manage External Debt Well and Avoid Large Debts 17 Manage and Build Up Foreign Reserves 17 The Need for Capital Controls and a Global Debt Workout System 18 Conclusion: Summary / Comments / Recommendations 19 Works Cited 21 Appendix A 23 Appendix B 24 Appendix C 25 Appendix D 26 Appendix E 27 Appendix F 28 Introduction The Philippines were ceded by Spain to the US in 1898 following the Spanish-American War. They attained their independence in 1946 after being occupied by the Japanese in World War II. The 21-year rule of Ferdinand Marcos ended in 1986 when a widespread popular rebellion forced him into exile. In 1992, the US closed down its last military bases on the islands. A quarter-century-old...
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...PHILIPPINE BUSINESS ENVIRONMENT Businesss Environment- refers to the factors that affect the efficiency of a business enterprise. Internal Business Environment External Business Environment -management -peace and order -technology -transportation,telephone,electric facilities -facilities -monetary and fiscal policies -financial incentives -political,social,economic conditions THE ROLE OF THE GOVERNMENT -Government participation in business activities is in the form of assistance and control. -Protect the consumers and other sectors of society -Provide social-economic infrastructures in order to accelerate business growth. MAJOR AREAS OF GOVERNMENT REGULATION OF BUSINESSS ENTERPRISE 1.Occupational safety-welfare of the workers. 2.Fair labor practices-laws and regulations,fair wages,hours of work. 3.Consumer protection-welfare of the consumers. 4.Pollution prevention-laws and policies for the protection of the people and environment against pollution. 5.Economic security-government laws which are implemented by GSIS,SSS,NHS,and other agencies. BUSINESS FOR THE POOR -Micro business is most appropriate for the poor.It requires small capital and simple management.With financial and technical help from the...
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...Philippines Gross National Product 1998-2016 | Data | Chart | Calendar Gross National Product in Philippines increased to 2280919 PHP Million in the third quarter of 2015 from 2263089 PHP Million in the second quarter of 2015. Gross National Product in Philippines averaged 1476240.99 PHP Million from 1998 until 2015, reaching an all time high of 2280919 PHP Million in the third quarter of 2015 and a record low of 944320 PHP Million in the second quarter of 1998. Gross National Product in Philippines is reported by the Philippine National Statistical Coordination Board. PHILIPPINE ECONOMY POSTS 6.0 PERCENT GDP GROWTH GDP grew year-on-year by 6.0 percent in the third quarter of 2015. This is higher than the growth rates of 5.8 percent in the second quarter of 2015 and the 5.5 percent in the third quarter of 2014. The third quarter growth was driven by the Services sector which accelerated to 7.3 percent from 5.6 percent. This performance is the highest since the 7.4 percent growth recorded in the third quarter of 2013. The entire Agriculture sector recovered in the third quarter by 0.4 percent from a 2.6 percent decline posted during the same period last year. On the other hand, the Industry sector slowed down to 5.4 percent from 7.8 percent last year. Among the three major economic sectors, Services gave the highest contribution to the GDP growth in the third quarter with 4.2 percentage points. This was followed by Industry with 1.8 percentage points...
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...ABSTRACT The ASEAN regional integration visualizes the conversion of economies in Southeast Asia into a unified market and manufacturing base by promoting the unobstructed flow of goods and services. It signifies better chances of more market entries, lesser input costs, lower discharge expenditures, greater inflows of foreign investments, and wider options for quality commodities and services at reasonable prices. This research examines issues as to whether the benefits outweigh the costs of trade liberalization, its impacts on national economic growth, and the Philippines’ preparedness to overcome the impediments posed by the integration. Overall, the outcomes of the interviews show that the Philippines is not yet fully adapted to aligning domestic benchmarks with international standards although it has accomplished vital progress in certain sectors. The study also reveals that member affiliates and the Philippine economy can reap the benefits of the liberalization so long as they prevail upon their commitments to forge ahead with achieving the goals of the ASEAN Economic Community. Elimination of cross-border taxes, compliance with harmonized regulatory policies, and leaders’ steadfastness to attain the goals of the integration are the key factors for the success of the liberalization. Since the research deals more on the qualitative aspects, the authors recommend more statistical data gathering and in-depth quantitative analysis to obtain a more accurate gauge of the overall...
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...APEC 2015 Host Economy - Philippines Global integration has come again. Together, we strategize and plan for the future. From issues on economy up to biodiversity, all has been tackled. But what does really lie ahead of us? Path is being paved but there is no one traveling in it. Yes, it has come again- the APEC. The Philippines becomes the world's biggest stage for a week as it hosts this year's APEC (Asia-Pacific Economic Cooperation). The leaders from the Asia-Pacific Economic Cooperation (APEC) economies gathered in Manila for the second time after 19 years from November 18-19, 2015. Under the Philippines’ leadership, the overall subject of APEC 2015 is the promotion and advancement of inclusive growth in the Asia-Pacific region, hence the APEC 2015 theme, “Building Inclusive Economies, Building a Better World.” Accordingly, the Philippines, along with 20 other member economies, has been pushing for inclusive growth and empowering micro, small, and medium enterprises (MSMEs), among others. In the weeks leading up to the high-profile economic leaders' meeting on November 18 to 19, the Philippines has initiated to make the region bike-friendly, scale up disaster preparedness, and help MSMEs secure links to global value chain, among others. As the APEC conference was held here in the Philippines, many questions arose. Some of this were, ‘Is this APEC meeting worth it?’ and ‘What are the benefits of this to us?’ Well, let us count the costs...
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...Swapping of PNB-Allied shares to complete merger MANILA, Philippines—Philippine National Bank plans to offer new shares to all stockholders of Allied Bank at P70 per share pursuant to the merger between the two banks via a share-swap. PNB plans to offer 423.96 million common shares worth a total of P29.68 billion to Allied Bank shareholders, based on the bank’s application for registration of securities at the Securities and Exchange Commission. This offer was based on the exchange ratio of 130 PNB common shares for each Allied Bank common share and 22.763 PNB common shares for each Allied Bank preferred share. As a result of the merger, PNB will have a combined outstanding capital stock of 1.086 billion common shares of which 423.96 million new common shares are issued to Allied Bank stockholders with an issue value of P29.68 billion. An application to list the new shares is expected to be submitted to the Philippine Stock Exchange before the end of this month. While PNB and Allied Bank executed their merger last February, this offer will complete the consolidation of shares into PNB which will be the surviving bank. “The merger marks a special milestone for both PNB and Allied Bank. The synergies arising from the broadened network, diversified deposit base and improved scale will provide a compelling value proposition for their various stakeholders,” PNB said in the regulatory filing. “In creating the country’s fourth largest privately -owned bank, the merged bank will...
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...would be the world’s first mobile community and would house more than 60,000 people whose dream is to travel the world without leaving the comforts of their home. Its passengers would circle the globe within two years with no need of a traveling backpack as the ship would contain all of the features that any modern city might have. Gibraltar Bridge, designed by T.Y. Lin, spanning 9 miles over the Straits of Gibraltar at the entryway to the Mediterranean, would serve as the first modern structure to bridge two continents together, starting from Morocco in Northern Africa to Spain in Southern Europe. According to its designers, the success of such an impressive design is expected to contribute to both of the continents’ tourism industry and economy. On the other hand, engineering the ‘impossible’ would have grave consequences should these plans fail. Engineering disasters, such as Texas City Refinery Explosion and Japan’s Nuclear Meltdown, serve as evidences that in spite of the advanced and modern approach to engineering, failures and accidents still persist. Causes of the British Petroleum refinery explosion was examined by U.S. Chemical Safety and Hazard Investigation Board whose...
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...ensure that children in need grow up protected and safe, educated, healthy and well-nourished, and able to thrive in economically secure households. They provide a wide range of programs, including: • Training community health workers to care for newborns and young children; • Protecting vulnerable children from abuse and exploitation; • Helping communities in at-risk countries to be prepared in advance of natural disasters; and • Improving children's health through regular exercise and nutritious food in the U.S. Growing up in the Philippines is very different and very hard compared to growing up in the USA. The government in the Philippines is corrupt and this is affects people’s daily lives and the way they interact with other people. Mental and social development is affected to the point that they must survive, even at the expense of others. The Philippine economy relies heavily on human labor. In the Philippines jobs are hard to find unless they know somebody in the government sector. Because of poverty people often lose some of their moral fiber over time. Professional Knowledge and Abilities 3 Parents are sometimes forced to look jobs outside the...
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...Introduction Philippines economy nowadays portraits a good start for, as we are lifting our country from the previous economic situation. Not including the whole world economy, we are experiencing a smaller amount of problems in our economy than the recent. The rate of exchange between our Peso against the Dollar is going stronger from now and as some bank company said that it could reach as high as ₱37.50 in the next year. This is worthy for our country that it could raise the percentage to lessen the financial crisis and issues of our economy here in the Philippines. However, this could also mean that some other Filipinos, who are contributing a lot in our economic growth, will be at an edge of helping themselves to this “firmer peso”. Food producers and exporters alone, from the ₱37.50-to-the-dollar exchange rate could cost them around $30 million to $40 million this year, which are exporter loss around $100 million. This is the case that food exporters and local food producers worrying about the stronger peso against the dollar. They will also lose their competitiveness against the other Asian country that may cause severe unemployment, closures of factories, flooding of cheaper imported goods in the local market and other social problems and unrest. Besides, the appreciation of the peso may harm also the overseas Filipino workers (OFWs) and their families, business-process outsourcing (BPOs) firms and foreign investment in general. These segments are the prime carrier...
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...One of the most prominent food and beverage companies in the Philippines is the Republic Flour Mills (RFM) Corporation, established in 1958 by aspiring Filipinos. Dr. Salvador Araneta pursued and succeeded his dream of making a way to save foreign exchange and create local jobs by starting out a local flour mill. Along with his wife, Victoria Lopez de Araneta, son-in-law, Joe Con and associates, Jose Concepcion, Sr., BJ Server, Pete Grimm, Albino Sycip, Zoilo Alberto, Leonardo Eugenio, Francisco Gamboa, Sr., they have come together to become a strong team. Their strength carried throughout endeavors during the difficult state of the Philippine economy in order to operate the mill. One of the issues was the American monopoly in the Central Bank of the Philippines for resisting to grant RFM the mandatory dollar allocation. With persistence and cooperation, RFM has then pioneered the flour-milling industry in the Asian region by starting out as a single company manufacturing bags of flour to a distinguished multi-company enterprise leading a number of branded products. RFM Corporations stands as a strong contender in the Philippine consumer market for offering a wide variety of food and beverage products such as: White King (cake mixes and flour-based products), Fiesta (Pasta and Sauce), Swift (meat based products), Sunkist (fruit juices), Selecta (milk- based products) and Selecta (ice cream, under the joint venture with Unilever). A variety of partnerships, acquisitions and...
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