Philippines’ economic growth remains favorable in 2013

December 6, 2012

 Left to Right: Ms. Vina Dimanalata, Director from ASCEND, Ms. Sittie Butocan, Deputy Director from BSP, Ms. April Tan, VP and Head of Research from COL Financial and Dr. Shanaka Peiris, Resident Representative from IMF.

To provide insights about the economic conditions of the Philippines, The All-Asian Centre for Enterprise Development (ASCEND) Inc. held its 4th quarter economic forum this year entitled “Economic Prospects 2013: The Philippines is finally taking off! How do we sustain the momentum?” at the AIM Conference Centre Manila.

ASCEND invited well - experienced economic experts representing their respective expertise. The guest speakers were Ms. Sittie Butocan, Deputy Director of the Economic Research Department from Bangko Sentral ng Pilipinas, Dr. Shanaka Peiris, Resident Representative to the Philippines from International Monetary Fund and Ms. April Tan, Vice President and Head of Research from COL Financial.

Ms. Butocan discussed the contributing factors on the vibrant economic condition of the Philippines. She mentioned that the improved investor confidence and ratings brought a positive effect.  She further shared  that the 7.1% GDP growth, which was anchored on consumer’s spending, exceeded the expectation of the experts and analysts.

Dr. Peiris challenged the Philippines in transforming these recent positive economic activities into more investment-oriented opportunities in the countries.  Currently, the Philippines has not explored the benefits presented in an investor rich country.

According to Ms. Tan, Investments in the country would maximize the potentials of the young population of the Philippines. She focused on the contribution of the young professionals in the GDP through their spending on products and services.

All speakers shared that the drivers to the vibrant economic performance of the Philippines were from the manufacturing and services sectors. These drivers would greatly contribute to the sustainability and further growth of our country.

All speakers shared that the drivers to the vibrant economic performance of the Philippines were from the manufacturing and services sectors. These divers would greatly contribute to the sustainability and further growth of our country.

Furthermore, the speakers believe that the Philippines will continue to achieve economic growth. According to BSP, there will be a 6.0 – 7.0 for 2013. Ms. Tan concluded the forum with a positive note, “Outlook remains favorable and it will remain resilient.”

The participants were very receptive on the  ideas they gained from the insights of the speakers. They are hoping that they will be able to contribute in the transformation of these positive economic activities into economic developments through applying what they learned in their own businesses.  They believe that this event is very helpful in their business and personal endeavors for it offers a lot of things. According to Ms. Legaspi, Manager of Mc Donalds, “Not only the opportunities but definitely we see the risks that were discussed there in relation to our business.”

ASCEND is a collective enterprise jointly owned by partners – consultants and professionals. Its thrust is to provide knowledge management, people management, and strategy formulation to government and industry, locally and internationally.   For more details, you can visit their website: www.ascendph.com. 

Latest Event this December 2012

Economic Prospects 2013:

The Philippines is finally taking off!

How do we sustain the momentum?

The All-Asian Centre for Enterprise Development (ASCEND) Inc. cordially invites you to an economic forum focusing on how to sustain the growth momentum of the Philippine economy in 2013. The forum will feature insights and foresights from economic experts who will provide scenarios for business opportunities.

December 6, 2012 (Thursday)

8:30 AM - 12:00 NN

AIM Conference Centre Manila

Points of Discussion:

GOVERNMENT FORECAST AND PROGRAM:

Highlights the investment opportunities that the government foresees in the coming year and their specific plan of actions (policies and effective measures).

Speaker: Ms. Sittie Hannisha Butocan
Deputy Director - Economic Research Department
BANGKO SENTRAL NG PILIPINAS

INTERNATIONAL FORECAST AND PROGRAM:

Presents the challenges of the Philippine economy vis-a-vis other emerging countries.

Speaker: Mr. Shanaka Jayanath Peiris
Resident Representative
INTERNATIONAL MONETARY FUND (IMF)

STOCK MARKET FORECAST AND BUSINESS PROGRAM

Presents the stock market forecast for 2013, the promising business sector, and the reasons behind it. Comparison of the Philippine market versus the other ASEAN markets.

Speaker: Ms. April Lynn Lee-Tan
Vice President and Head of Research
COL FINANCIAL GROUP

Registration Fee: P1, 500
Early Bird Registration: P 1, 275 (until November 23, 2012)
Student Registration: P500

Inclusions:
-Refreshments
-Copy of presentations
-Kits
-Raffle Entry (Raffle draw will follow after the event)

RESERVE NOW! Limited seats only.

For reservations, you may call Jill Rico at: (632) 381-0010 / (632) 853-7312 or you may send an email to: johnlery_rico@ascendph.com or info@ascendph.com.

To register online, click HERE.

SEE YOU AT THE EVENT!

Supply Chain NOW

                                         Courtesy of NewStart

This week, the Institute of Supply Management shares the vigorous movement of the Supply Chain Industry. Get the latest updates and learn on how you will go through it.

Commodities largely up in 3rd quarter but remain down for full year to date 

Commodity prices mostly made a comeback in Q3, led by sharp rises in many agriculture products driven by the drought in the U.S., but all told prices are mostly down for the full year, as the steady, multiyear rise in input prices has reverse itself since early 2011. MORE 

Source: Supply Chain Digest 

Bring your warehouse into the future with new security innovations 

In the past, warehouses may have been seen as a quite separate entity in the overall supply chain; merely as storage for merchandise until it was transported onto its final destination. But businesses are increasingly discovering the advantages of moving towards integrating the modern day warehouse into the greater supply chain, in order to reap the enhanced inventory management, greater loss prevention and shrinkage protection. MORE 

Source: Supply Chain Digital   

7 ideas for 'greening' your shipping strategy 
    
Whether they're sent by land, sea or air, packages can yield immeasurable amounts of pollution across the globe. But there are many ways to lessen the environmental impact of shipping freight. Here are seven relatively simple ideas that experts recommend to help keep the Earth green — and in some cases keep a little more green in your shipping budget. MORE

Source: Entrepreneur

Sustainable procurement makes good business sense 

With "sustainable" and "eco-friendly" becoming more and more important in the corporate world, we look at how to make your company more green from the bottom up in eight easy steps. MORE

Source: Supply Chain Digital    

Will innovative ethylene process create a supply and value chain reaction? 
  
Recent headlines about Honeywell's new one-step conversion process from natural gas (methane) to the monomer ethylene (also known as ethane) may not grab your attention right away; but, don't be too quick to dismiss this recent innovation. This little, symmetrical molecule is more integral to your professional and personal supply chain than you may think. MORE  

Source: Packaging Matters, ISM

PMI Philippines September 2012: Above the growth threshold

                                          PMI Manufacturing September 2012

PMI Manufacturing in September 2012 settled firmly above the growth threshold at 54.09. Although slightly lower than the index in August, this month’s index indicates steady month-on-month expansion of the economy in 2012. 

Correspondingly, Retail/Wholesale PMI (R/W PMI) registered at 58.70, slightly faster from the previous months’57.45. Services PMI in September 2012 remains well above the growth threshold of 50 at 61.35. All PMI Index are still above the growth threshold.

An index above 50 indicates expansion, and an index below 50 implies a contraction.

Seeing What's IN the Supply Chain

This month, the Institute for Supply Management shared the current situations in the Supply Chain Market.
Sharing the latest.

Cyber era brings new kinds of supply chain threats 
Federal Computer Week    
Problems in the Defense Department's supply chain aren't a new issue. The military has always been at risk from enemies and had a need for tight security. A GAO sting operation earlier this year highlighted some vulnerabilities, for example. But the prevalence of digital systems brings a newer kind of threat: one that can be tiny in size but huge in potential impact. It is the risk of electronic components that have been altered to digitally infiltrate U.S. defense systems. MORE 

China's growing pork sector could strain global corn supplies 
National Hog Farmer  
If China's pork sector continues to grow at the current pace, the industry's demand for corn within the next five years could have a significant impact on the world's supply. According to a new report, "The Industrialization of China's Pork Supply Chain," issued by Rabobank's Food & Agribusiness Research and Advisory Group, China's corn imports could approach 22 million tons, annually. MORE

Opportunities increase in automotive supply chain 
Supply Chain Standard   
The U.K. has become a destination of choice for global vehicle manufacturers — creating major supply chain opportunities, according to a report compiled by KPMG for the Society of Motor Manufacturers and Traders. Automotive manufacturing is forecast to grow by 9 percent a year to 2.2 million vehicles in 2016, the report said. MORE 

The cutting edge of supply chain sustainability 
Supply Chain Brain     
Dan Cassler, assistant chair of the Information Logistics Technology Department at the University of Houston, offers an update on supply chain sustainability — and details both the benefits and pain to be derived from such efforts. MORE 

Source: Institute for Supply Management (ISM)

PMI Philippines in August 2012

                                          PMI Philippines Manufacturing

PMI Manufacturing Index in August 2012, at 54.44, remains above the growth threshold of 50. This mirrors an expanding economy at a rate that is slightly higher than the index in July 2012 (53.30).  

On the other hand, the Retail/Wholesale Purchasing Managers’ Index (RW PMI) for the month of August is at 57.45, still in expansion mode given that it is well above the growth threshold. PMI Services in August 2012, at 60.71. This parallels an expanding economy although at a speed that is much slower than the growth index in July 2012. 

An index above 50 indicates expansion, and an index below 50 implies a contraction.

PMI Philippines next initiative for 2013

Last weekend, ASCEND team draw their plans and their initiatives for the next year of 2013. The discussions focused on the systematization of operations and development of new facilities and systems related to PMI Philippines. 

Also, part of the idea is to have an extensive promotion of PMI Philippines in the local market and international market within the Asian countries. The PMI Asia initiative will launch this year and will fly across the Philippines starting next year. 

Improving your Forecasting Capability?

SEVEN METHODS THAT IMPROVE FORECAST ACCURACY


A top industry analyst firm recently reported that organizations good at demand forecasting average 15% less inventory, 17% higher perfect order fulfillment and 35% shorter cash-to-cash cycle times than their peers, while experiencing one tenth as many stock-outs.

READ MORE...

Source: Logility

PMI is Different

It is a leading indicator.
It is more accurate than other indicators which are lagging

It is activity-based.
It is more realistic and accurate than expectation surveys and speculations

It is a monthly report.
It allows immediate trend spotting and faster decision-making.

It is highly correlated to GDP & other official indicators
It is a reliable business activity predictor;

trusted by big international & local business forecasters

It is based on Top 15000 – 25000 corporations

It offers unbiased results;

Reflective of business engine drivers & trend setters

Wider representation vs PSEI

It covers different sectors
It has a wider target market

PMI Philippines is using the same template with the world PMI
Results are directly comparable.

Final; Never revised
No fear of incorrect basis

Some Remarks on PMI

"If you were to put me on a desert island and ask me to name one number, it would be PMI."
-Malcolm Barr, JP Morgan, June 2009

"The price of oil has risen by more than a dollar a barrel after PMI surveys suggested strong manufacturing growth in both the US and the Eurozone."
-BBC News, Januray 2011

"PMI is the world's most closely watched business survey."
-Markit Economics