PH stands out among booming markets

Goldman Sachs exec credits good governance

By Daxim L. Lucas
Philippine Daily Inquirer

11:06 pm | Wednesday, October 31st, 2012

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President Benigno Aquino. FILE PHOTO

The Philippines has strong growth prospects over the medium- to long-term due to a large degree to policies of the Aquino administration that have succeeded in leveling the playing field for foreign investors, a ranking official of Goldman Sachs said.

In a briefing late Tuesday, the investment banking giant’s vice chair, Carl Stern, pointed out that the country’s economic growth was poised to even surpass its peers in the so-called “Next 11” list of booming emerging markets published last year.

“Your growth prospects look quite good relative to the alternatives out there,” he told reporters during a one-day visit to Manila to meet the firm’s local clients. “The Philippines is certainly one of the fastest-growing economies.”

The Next 11 list was published by Goldman Sachs economist Jim O’Neill last year, citing Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea and Vietnam as the emerging market economies that would lead global growth in the 21st century.

O’Neill is the same economist who coined the term BRICs in 2003, representing the booming economies of Brazil, Russia, India and China.

“Among the Next 11, the growth forecast for the Philippines of 5, 6, 7 percent [gross domestic product growth] certainly ranks very favorably,” said Stern, who joined Goldman Sachs after serving as president and CEO of the Boston Consulting Group.

The visit of the high-ranking official of one of the biggest investment banks in the world represented an important milestone for the firm, which, until recently, has kept a relatively low profile in the Philippine financial market.

Stern said the growing emphasis on the Philippines was due, in part, to the economic difficulties being experienced by the advanced economies of the United States and western Europe.

“Investors go where there’s money to be made,” he said, referring to emerging markets in general and the Philippines in particular.

The Goldman Sachs vice chair acknowledged the fact that the Philippines has experienced several boom-and-bust cycles in the past, but expressed optimism that the current economic upswing being experienced was a unique event mainly because of the Aquino administration’s thrust at improving overall governance in the country.

“The job that your government has done in anti-corruption, among many things, is setting a more solid, predictable foundation for the kind of capitalism that we practice,” he said.

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PH, Russia work to expand trade

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By Katlene O. Cacho

Tuesday, October 23, 2012

RUSSIA and the Philippines are exploring additional opportunities to expand economic relations.

Tourism promotion, cooperation in the establishment of industrial economic zone and training of Filipino workers in Russia were among the topics of discussions during the one-week visit of the Russian delegation of the Russian-Philippine Business Council (RPBC) in the country.

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Russian Honorary Consul Armi Lopez-Garcia, in a press conference on Monday, said the Russian delegation met with Manila and Cebu business leaders to explore trade and tourism opportunities in both countries.

RBPC is the counterpart of Philippine-Russian Business Assembly (PRBA), which is chaired by Garcia.

In terms of tourism promotion, RBPC chairperson Evgenia Konkol urged the Department of Tourism (DOT) to come up with promotional and marketing activities about the Philippines in the Russian market, similar to what other countries do in to attract Russian travelers.

She said the lack of information about the Philippines and the absence of direct flights prevented Russian tourists from going to the country.

“Thailand has been doing intensive marketing initiatives in Russia since 15 years ago, the reason why it landed as the third popular destination among Russian tourists,” Konkol said.

But she said the Philippines has “all the necessary facilities” for successful tourism, given the country’s “fantastic” spa, beaches and nature.

In order to lure Russian travelers to come to the Philippines, Konkol said the country should invest in creating a positive image for the country.

“Your country has all the same features with Thailand, same beaches, hotels, trees, you have everything in common. But if you can create good conditions, such as positive image, people will come here and soon after airlines will start offering direct flights,” said RPBC deputy chairman Andrey Gavrilov.

The Russian delegation also noted that the Philippines’ biggest asset is its people, “who are friendlier than the people in Thailand” and genuinely hospitable.

Russians, according to Konkol, are long-staying tourists, spending up to 14 days in vacation twice a year. A Russian tourist on vacation for 10 days spends an average of P6,000 a day, they said.

Records from the DOT show that Russian arrivals to the Philippines grew by 40.35 percent or 16,401 from January to August this year, compared to the 11, 686 arrivals recorded in the same period last year.

Aside from highlighting the country’s potential in tourism, Russia is also seeking the country’s expertise in the establishment of industrial economic zones. The Philippines has 150 economic zone locations in different sites all over the country.

Gavrilov said he was impressed at how the country handles its economic zones and hopes to tap the Filipino expertise to help Russian economic zones become effective for the growth of the regional economy.

Russia currently has two economic zones. It is building its third economic zone in Ryazan.

Employment opportunities for Filipinos also abound in Russia. According to Konkol, accountants, civil engineers, domestic helpers, nannies, and construction workers are among those in demand in Russia.

To ensure better labor placement, Garcia announced that they will also be putting up training centers for Filipinos who plan to work in Russia to learn the Russian market, language and culture.

The training centers will be established in Manila and Cebu next year.

When in Cebu City, please visit gregmelep.com for your real estate and retirement needs. Avail of the opportunity to own a condominium unit in Cebu City for only P12,000.00/month with your own parking lot. Hurry while the supply of units last. Just call the Tel. Nos. shown below.

Tel. No. 555-8464/09164422611/09173373687.

Published in the Sun.Star Cebu newspaper on October 24, 2012.