Fund set for high-level BPO skills


THE government has allocated funding for training business process outsourcing (BPO) near-hires to attune the workforce with the latest trends in IT as the industry expands its skills set to include electronics engineers. In a press conference on Tuesday,


state-run Technical Education and Skills Development Authority (Tesda) said it would release a P20-million revolving fund to finance the Society for Higher Information Technology Education (Shift) initiative. Shift is a joint program of Tesda, Business Processing Association of the Philippines (BPAP), Informatics Philippines and other partners wherein qualified near-hires would undergo IT training. “IT is the great equalizer. We


introduced Shift to contribute in uplifting lives of people through IT education,” said Leo Riingen, Informatics Philippines chief executive officer. Oscar Sañez, BPAP president, said


only five out of every 100 BPO applicants are hired, while up to 20 of them are considered “near-hires”— applicants who just lack several skills. Joel Villanueva, Tesda director


general, said Shift scholars would be referred to BPAP member-companies when they graduate. BPAP members that hired Shift


graduates would reimburse the training fund. The Shift program would start


before this year ends, Villanueva said. Villanueva said about 60 percent of the scholars are expected to become full-hires, adding that BPAP has committed to absorb 70 percent of the graduates. “We have to assure investors we


have the talents they need,” Sañez said. Ornan Vicente, Institute of Electron- ics Engineers of the Philippines national president, also on Tuesday said electronics engineers now are no longer limited to providing technical support and services. Vicente said many electronics engineers are currently employed in the BPO sector, wherein they are involved in content development, animation and tele-medicine. BEN ARNOLD O. DE VERA


B 2


business The Manila Times WEDNESDAY December 8, 2010


Philippine economy to lag most of its neighbors next year – ADB


BY DARWIN G AMOJELAR SENIOR REPORTER


but warned of a slowdown next year because of weaker external demand. forecast of 6.2 percent.


T


In its latest Asia Economic Moni- tor (AEM), the Manila-based lender projected that the Philippine economy, as measured by the coun- try’s gross domestic product (GDP), would grow by 6.8 percent this year, higher than the ADB’s September


An indicator of economic per- formance, GDP measures the amount of final goods and services produced in a country.


The National Statistical Coor- dination Board earlier reported


Agri seen to recover in 2011


THE Philippine agriculture sector is seen to perform better in 2011 as the impact of the La Niña phenomenon gradually weakens by the middle of the year. In his Agricultural Scenarios 2010-


2011 report, Dr. Rolando Dy, Center for Food and Agri Business – Uni- versity of Asia and the Pacific (CFA- UAP) executive director, said the farm sector will grow by 2.5 percent to 3.5 percent. “Expectations are high that agri- culture will perform definitely bet- ter in 2011,” Dy said, adding that La Niña may peak on November to January and ease by March to May. While La Niña is expected to lin- ger until the second quarter of next year, the palay, corn, and banana sub-sectors are seen to enjoy some growth, offsetting the possible losses in sugarcane and coconut, the economist said.


He also said that weak to moder-


ate weather conditions brought by La Niña will be an encouraging planting season for palay farmers as rainfall will be available mostly in the first quarter. Harvest in the fourth quarter of


2010 may also spill over in the first quarter of 2011 with the movement of the cropping period.


The prolonged dry spell in the first


half of 2010 is expected to take its toll a year after, which will impact nega-


tively on 2011 coconut production particularly in the second semester, he said, adding that a slight negative performance may be expected as a result of the weather disturbance. The sugarcane sub-sector is ex- pected to slowly recover in 2011 but growth would remain at -1.5 percent to -2.5 percent coming from -6.5 percent to -7.5 percent in 2010. Dy said that sugar prices will also remain high, citing the Sugar Regu- latory Administration’s statement that the spike in the domestic price of sugar was somehow influenced by the increasing trend of prices in the global market. Despite La Niña, the banana sub- sector is seen to improve in 2011, with domestic demand expected to remain strong. The livestock sub-sector is ex- pected to recover in 2011 though growth will be minimal at one per- cent to two percent, coming from a low contraction in the previous year. The poultry sub-sector will remain conservative as production is seen to grow by 2 percent to 3 percent. For fisheries, output in commercial and municipal fishing with aqua-cul- ture will expand despite some abnor- mal weather conditions next year. Aquaculture will remain as the driver of fisheries growth, Dy said. JAMES KONSTANTIN GALVEZ


HE Asian Development Bank (ADB) has upgraded its economic growth forecast for the Philippines this year,


that the economy expanded by 7.5 percent in the first nine months from 0.7 percent in the same period last year. The Philippine government ex- pects GDP to grow between 5 per- cent and 6 percent this year. In 2011, economic growth would decelerate to 4.6 percent “due to weaker external demand and the need for fiscal consolidation,” the ADB said.


The lender’s projection for next


year was lower than the govern- ment’s target range of 7 percent to 8 percent.


The ADB noted that the weaker


outlook for the global economy coupled with the phasing out of fis- cal and monetary stimulus within the region means economic growth should moderate next year. Average growth in emerging East Asia is likely to be 7.3 percent in 2011 after growing a likely 8.8 per- cent in 2010.


The ADB projected that GDP


growth in Indonesia would hit 6.3 percent next year; Malaysia, 5 per- cent; Thailand, 4.5 percent; Viet- nam, 7 percent; Cambodia, 6 per- cent; Lao PDR, 7.5 percent; and Myanmar, 5.3 percent. Iwan Azis, head of ADB’s Office


of Regional Economic Integration, said the V-shaped recovery has run its course in emerging East Asia and the challenge for the region is to put in place national policies that will translate swift recovery into long- term growth.


The ADB report added that risks to the outlook for the region are also higher than they were six months ago. “Policy challenges stem from the


relatively weak recovery in advanced economies, potentially destabilizing capital inflows, inflation and asset price bubbles in some countries, and protectionism,” the lender said.


Mid-income condos to lift property sector


THE middle-income segment of the residential condominium sector will continue to drive the real estate industry, a consultancy firm said on Tuesday.


About 100,599 units will flow into the market in the next three years on top of the 55,526 units that were built since 1999 until the first half of the year, said Jones Lang Lasalle Leechiu (JLLL). “The decision to build is born out of real demand due to improved economic conditions,” Claro Cordero Jr., JLLL head of research, consulting and valuation, said in a briefing. “In 2005, no one could have imagined how deep the [middle- income segment] residential condominium sector actually was. It will continue to be a source of growth for many developers up to at least 2014,” David Leechiu, JLLL country head, said.


About 40 percent of the 3.8 million housing backlog is in the middle-income segment, which is defined as condominium units priced from P1.5 million up to P10 million. Demand is being fueled by low interest rates, prudent flow of loans, accessible loan facilities and


money coming from overseas Filipinos, Cordero said. “It makes property investments more enticing. Land value is increas- ing at phenomenal rates,” he added. Supply is expected to contract


this year from last year but will more than double in 2011. “Growth will begin to slow down by 2012 but continue to expect seeing large volumes becoming available on the market,” said Leechiu, adding that future supplies of middle-income segment condo- miniums will be located in the Makati business district, Bonifacio Global City and Quezon City. Supply increased by 69 percent in 2005 and 79 percent in 2007. During the financial crisis in 2008, supply expanded by 34 percent and grew 26 percent in 2009. In the next five years, SM


Development Corp. will be the busiest real estate developer, accounting for 22 percent of condominium market. The office sector in Metro Manila is also facing a supply deficit beginning late 2011, resulting in rapid rent escalation. Annual take-up of office space is


Republic of the Philippines OFFICE OF THE PRESIDENT


COMMISSION ON HIGHER EDUCATION NOTICE TO THE PUBLIC


Notice is hereby given to the public that the Commission on Higher Education will conduct a Zonal Public Hearing on the Policies and Standards for Computer Science and Entertainment Computing (Mindanao) on December 16, 2010 (Thursday), 10:30 AM at CHED Auditorium, C.P. Garcia Avenue, Diliman, Quezon City.


The CHED Regional Offices are hereby enjoined to coordinate the


attendance of the concerned Higher Education Intitutions particularly of School Heads or duly authorized representatives (in writing) and Deans/ Department Head/Program Coordinator of Computer Science and Entertainment Computing Programs within their respective regions. A copy of the draft policies and standards may be downloaded from the CHED website (www.ched.gov.ph click on What’ s New) for your guidance. Comments may be submitted before, during and/or five (5) days after the public hearing to tpitegroup@gmail.com.


Travel, food, accommodation, and incidental expenses of participants from CHED Regional Offices and other government institutions shall be charged against local funds, subject to the usual accounting and auditing procedures. Participants from private institutions may make arrangements with their respective institutions. However food during the consultation shall be shouldered by CHED.


Confirmation on the aforementioned activity may be relayed through the CHED Regional office or to the Office of Programs and Standards c/o Rene, Gary, Dedeth or Vic at Telephone Nos. 441-12-53/441-1228 on or before December 10, 2010.


ATTY. JULITO D. VITRIOLO, CESO III Executive Director IV


MT – Dec. 8, 2010 Renewable energy H


AVING an involvement in renewable energy, I attended the conference in Makati last week at which the President made a keynote address. The conference was well organized and very well attended, way over the expectations of the organizers at about 600 attendees, from I think 14 countries. To increase utilization of Philippine natural resources is cer- tainly needed as a contributor to reducing the cost of electricity (the second most expensive in the world on an affordability basis—the most expensive is Cambodia) About 65 percent of Luzon’s power is geared to the international oil price—the cost of natural gas and the cost of coal both have linkages to the international oil price, so reducing diesel fuel usage from the equation is only the tip of the ice- berg. Over the next 20 years, the international spot oil price is fore- cast to rise from its current $80 to up to about $250/barrel [~ 159 liters]. So watch out!


There is also the issue of elec- tricity shortages. The Philippines produces 620 kWh of electricity per capita, Papua New Guinea produces 480, Cambodia 81 and Iceland 38,784! More power is urgently needed here, they say, up to 17,000MW extra over the next 20 years (current dependable capacity is about 12,000MW). The additional capacity will only be needed if there is a market for it. Assumptions on power plan- ning usually are based on forecasts of GDP growth. But the Phil- ippines is untypical as most of the electricity produced is used in domestic and commercial markets—in other places it is in- dustrial consumers who use the vast majority of power. Ques- tion is that if an additional 17,000MW is put in place will there be enough users? It’s something of a Catch 22. A power plan supports an economic development plan so presumably the 17,000MW requirement comes from the national economic development plan. The need for investment to sup- port the power aspirations is equal to about 25 percent of the Philippines capital market. The need for investment to provide consumption of the power would be considerably more than that. Where is the money going to come from? I am sure that the additional power demand is not driven by the Philippine birth rate and the consequent introduction of new domestic consum- ers to the market, unless of course, there is a plan to signifi- cantly reduce electricity costs below their current levels. The po- tential development of nuclear power could be a big contribu- tor to the needed reductions. Nevertheless, renewable energy is certainly needed, in particu-


MIKE WOOTTON


lar, in the off grid areas that are so dependant on diesel fuel and because of that these are so heavily subsidized. The comment was made at the conference that renewable power is seen as ex- pensive. Well yes it is, in other places, but off-grid electricity in the Philippines is so expensive anyway and is directly subject to the exigencies of the international oil spot market that in very many cases renewable power as it does not (usually) require imported fuel, is significantly cheaper. The issue, of course, is how is the feed in tariff, the mechanism by which power pro- ducers get paid for the electricity that they generate, to be funded if it needs more money than the universal charge collects from all consumers electricity bills? Let’s sort out the outstanding issues quickly and get renewables (which here are not so comparatively expensive) on the road for the Philippines and start reducing the cost of power and putting it within reach of ordinary people (and that includes me, it would be good to be able to use the air con and water heating without worrying about turning them on—and having my wife turn them off!! ) …………………. ………………................. Mike can be contacted at mawootton@gmail.com


pegged at about 300,000 square meters, said Lindsay Orr, JLL chief operating officer. “We are confident that even [if] there is no change — like nothing happens in the public-private partnership program, tax collection levels don’t improve — demand will stay constant at 300,000 square meters,” Leechiu said. Total supply is expected to increase by 238,973 square meters this year, and by 276,587 in 2011. By 2012, the number will drop to 163,313 and in 2013 further down to 141,387. By 2013, the deficit will be close


to 100,000 square meters and by 2014, an even greater deficit of over 200,000 square meters. JLLL is also bullish about the


tourism industry with four property developers building 6,000 units in the Manila Bay area alone in the next three years. “We’re very bullish with tourism


industry because [the] sky is the limit,” said Leechiu. “As soon as we open up more


airports, as the open skies happen, we’ll see tremendous tourism traffic coming,” he added. KRISTA ANGELA M. MONTEALEGRE


■ STOCKS FROM B1


Stocks fall, peso climbs


“We are seeing the light at the end of the long tunnel of recession. However, from time to time, a shadow is cast lending uncertainty to the direction,” he added. Local stocks also took their cue from the sluggish performance of US equities following Federal Re- serve Chairman Ben Bernanke’s statement that economic recovery was still trying to become “self- sustaining” without the govern- ment’s assistance. On Tuesday, the peso continued to trade higher against the dollar as the market monitors the swap prices for directions this week. At the Philippine Dealing System, the peso-dollar exchange rate closed at 43.555, or .195 centavos higher than the 43.75 closing the previous trading day. “The pair might probably open on the bid if deep discounts remain. But any sign of normalization in the swap market will encourage players to hedge their seasonal flows and take more risk,” a trader said. The exchange rate reached 43.90


levels before good selling interest was seen again, they said. Supporting the weak peso-dollar scenario was the continued deep discount in the swap prices. “Bias quickly changed by mid morning as the [Bangko Sentral ng Pilipinas] was seen providing some much needed relief in the swaps tak- ing prices on longer tenor. The reac- tion in the spot was immediate as pre- viously strong bids at 43.80s quickly gave way,” another trader said. The afternoon trade saw another


wave of selling, buoyed by BSP’s ac- tive participation in swaps, pushing the pair lower and closing at a low of 43.55. Total trading volume surged to $1.183 billion from $894.12 mil- lion the previous session. The peso is expected to trade against the dollar at 43.60 to 43.90 in a daily range and at 43.60 to 44.20 in a weekly range.


WITH REPORT FROM LAILANY P. GOMEZ


VIEWS FROM A BRIT


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