Number of jobless up by 300,000

MANILA, Philippines More Filipinos are pessimistic that they will

find jobs next year, according to the Social Weather Stations latest
survey.
This emerged as the SWS released its latest unemployment survey
that showed that the number of jobless Filipinos went up by about
300,000 individuals.
The poll, conducted from June 27 to 30, said net optimism on job
availability declined from +13 in March to +3 in June, its lowest level
since May 2012.
Of the respondents, 28 percent believed that the number of jobs
would decrease while 29 percent said there would be no change in
the number of available jobs.
On the other hand, 32 percent said that they expect more jobs to be
available in the next 12 months.

More jobless
The survey also reported a slight increase from a joblessness rate of
25.7 (11.5 million individuals) percent in March to 25.9 percent (11.8
million) in June.
SWS, which interviewed 1,200 Filipinos aged 18 years and above,
defines joblessness based on two factors: having no job at the present
and looking for a job. This definition excludes housewives, retirees,
students and persons without disabilities who are not seeking
employment.
Of those who said they were jobless, two percent said they were laid off,
six percent had contracts that were not renewed, one percent terminated
because their company closed, 13 percent voluntarily left and four
percent never worked before.
While the number of jobless men decreased from 16.5 percent to 14.7
percent, women without jobs increased from 37.8 percent to 39.9
percent.
The current figure is nearing the highest joblessness rate for women
recorded in August 2012, which is 42.5%.
On the other hand, more men were employed during the second quarter, as evidenced by a 1.8% dip in the
unemployment rate or 14.7%. The recorded figure was the lowest since the 14.3% unemployment rate for men
recorded in June 2011.

Youth without jobs

Among the age groups, joblessness among young Filipinos aged 18 to 24 reached a record-high of 63 percent, from
43 percent in March. The last time it reached that level was in June 2008.
Joblessness also increased among those 25 to 34 years old, from 31 percent in March to 35 percent in June.
However, more people within the age group of 35 to 54 years old said they now had jobs. Those aged 45 and older,
retained its joblessness rate of 17 percent.

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Fuel prices drop anew
MANILA, PhilippinesOil prices went further downhill this week on weak international
demand and stable supply. The latest adjustment on fuel prices follows five straight weeks of
gasoline price cuts, which analysts say indicates overall softness in demand.
Petron, the countrys top oil player, and Chevron announced price cuts for gasoline (-P0.10 per
liter), diesel (-P0.40 per liter), and kerosene (-P0.35 per liter) from 12:01a.m. on Tuesday,
August 19. Petron and Chevron were the only local firms to have announced an adjustment on
gasoline prices for this week.
Shell and Seaoil said in separate advisories that they will have trimmed the prices of
diesel (by P0.40 per liter) and kerosene (by P0.35 per liter) from 12:01a.m. Tuesday. Thai-led
PTT Philippines said it will implement a P0.40 per liter rollback on diesel only, also at 12:01a.m.
Tuesday.
Phoenix Petroleum, one of the larger independent firms, is implementing a heftier
adjustment for diesel with a P0.45 per liter decrease in the price of its diesel products starting 6
a.m. Tuesday.
Another independent oil player, Eastern Petroleum, will effect a P0.30 per liter rollback
starting 12:01 a.m. Tuesday. Eastern Petroleum Group chairperson Fernando L. Martinez said
in a phone interview that his companys products are already priced lower at around P0.50 per
liter than those of other brands.
A number of industry observers asked about the diverse price adjustments said that oil
firms consider similar variables when computing changes from week to week, such as regional
trading averages and foreign exchange rates. However, as one source put it, strategies could
still come into play depending on their price points and market share.
Other oil firms are expected to also roll back diesel and kerosene prices since nearly all the fuel
sold domestically are imported, making local pump prices vulnerable to international prices
movements.
Including the price movements this week, the year-to-date total adjustments stand at a
net decrease of P2.95 per liter for diesel and about P2.35 per liter for gasoline.
Asian market reports said global crude prices fell over the past week amid sufficient oil exports
from Ukraine and the Middle East despite political and sectarian tensions.
The recent downtrend in fuel prices in general may also indicate weaker demand for crude,
which tends to follow economic growth trends.
Fuel prices result from factors such as crude oil prices, processing and distribution costs,
local demand, the strength of local currencies, local taxation, and the availability of local or
regional supply.

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14,000 teachers from state schools to benefit from
P1.3-B proposed budget

MANILA, Philippines At least 14,000 teachers from 112 state universities and

colleges (SUCs) stand to benefit from a P1.3 billion fund in the proposed 2015 budget

which is set aside for salary upgrades, a lawmaker said on Monday.

In a press conference, Pasig City Rep. Roman Romulo said this is the first time since

2010 that the DBM set aside a budget for the salary upgrades especially as some SUCs

only funded salary upgrades through their own savings.

Romulo said this is in implementing the DBMs June 1998 National Budget Circular that

seeks to prescribe rules and regulations in implementing the revised compensation and

position classification plan for faculties in SUCs.

Romulo said when he asked the DBM representative in a committee hearing, the

agency could not give a reason it failed to implement its 1998 circular since 2010.

He said the agency said government should be moving forward instead of looking

back at the agencys failure to implement the circular.

Romulo, who chairs the higher and technical education committee, also said this is the

first time the DBM set aside a fat budget for salary upgrades since 2010.

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PSEi stays on upswing

MANILA, Philippines The local stock barometer resumed its upswing on selective

buying on Monday as investors priced in the final burst of second quarter earnings

reporting, the MSCI rebalancing and improved risk-taking across the region.

The Philippine Stock Exchange index added 19.07 points or 0.27 percent to close at

7,027.58.

Value turnover for the day amounted to P8.25 billion. Despite the rise of the main index,

market breadth was negative as 70 advancers were outnumbered by 118 decliners

while 41 stocks were unchanged.

With the PSEi breaching the 7,000-mark last week on the back of gains posted by PLDT

due to the quarterly rebalancing of the MSCI index, AB Capital Securities analyst Joyce

Ann Ramos said a follow-through upside movement would occur this week as many

portfolio managers would have to adjust their funds to replicate the new equity

weighting until the re-balancing effectivity on September 1.

However, as corporate earnings and foreign updates remain as market catalysts,

cautious stance will mostly be observed by the investors, she said.

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Manila ports already congested even before truck ban

The sea ports congestion in Manila started way before the city government imposed the daytime
truck ban that actually served as an eye opener for the problem at hand, economists interviewed by
GMA News Online said.

If the port congestion started just when the daytime truck ban was implemented, then the issue could
have been easily resolved by lifting the prohibition, Ateneo de Manila University Economics
professor Alvin Ang told GMA News Online.

"Ang tanong diyan: Noong inimplement ang stringent truck ban lang ba nagkaroon ng port
congestion o baka dati pa?" he said.

"The truck ban could be an eye opener... Hindi naman bigla na lang magkakaroon ng port
congestion," he added.

Last February, Manila Mayor Joseph Estrada announced a prohibition banning cargo trucks from the
city's main roads from 5 a.m. to 9 p.m., a move that supposedly created a backlog in deliveries to,
through and from the Port of Manila.

Last week, the Philippine Ports Authority PPA blamed the Manila truck ban as the root cause of the
congestion problem in the Port Area west of the city.

A contributing factor

The ban definitely is a contributing factor to the ports problem, lending additional constraints in the
transport of goods, but it is not the main reason, University of Asia and the Pacific (UA&P) School of
Economics dean Peter Lee U said in a separate phone interview.

There is a big difference between allowing cargo trucks and vans to ply the streets of the city the
whole day and limiting the deliveries at night, the economist said. "If you limit the number of trucks in
Manila, it will be harder to move out goods as fast as before," U said.

"There will be a choke point where more shipments are coming in the ports but less coming out," he
noted.

Easier said than done, but government should fast-track the decongestion of Manila ports or this will
have a bigger impact on the Philippine economy in general, the economists said.
There's a "what-could-have-been" scenario with the port congestion, U said. "We could have had
higher GDP if not for the forgone production," he said.

If the problem will persist, we may see a slowdown in output in the second quarter, he added.

In the first quarter, the GDP expanded by 5.7 percent from 7.7 percent a year earlier as the economy
reeled from the impact of Typhoon Yolanda.

Higher costs

Since what passes through the ports are tradable goods, the cost of doing business and cost of
living will be higher [with the congestion factored in], Ateneo's Ang said. "Lumalaki ang opportunity
costs and this means higher prices of goods."

This was reflected in July when inflation rose by 4.9 percent, its fastest in nearly three years, as food
prices spiked and the cost of utilities contributed to overall price increases for the month.

The July data brought the year-to-date average to 4.3 percent or at the upper end of the government
target of 3 to 5 percent.

Once the Manila ports are decongested, Ang said government should work on linking North and
South Luzon to Manila through connector roads for faster travel.

Even if the Ports of Subic and Batangas may be willing bear some the brunt of congestion from the
ports in Manila, the idea may not be feasible due to logistics since the majority of businesses are
located in Metro Manila.

"More incentives should also be given to transfer businesses and logistics companies to set up shop
in Subic and Batangas," he added. VS, GMA News
MANILA, Philippines The countrys chief economist said that the Philippines' economic growth
rate in the second quarter could have bounced back to 7%, fueled by the manufacturing sector.
Finance undersecretary and chief economist Gil Beltran said Monday, August 18, that the rise in
factory output from 4.3% in the first quarter to 13% in the second quarter likely pulled growth
back to 7% in the second quarter.
Compared to the first quarter, production output in the second quarter grew almost thrice the
first quarter level while sales increased 1.5 times the first quarter growth, Beltran said.
This means that the sector continued to draw down from inventory as in the first quarter.
Replenishment of supply is necessary soon to avoid price increases, he added.
The Department of Trade and Industry (DTI) may need to encourage investments in the sector
to forestall inflationary impact as inventories drop below manageable levels, Beltran said.
In the first quarter of the year, the Philippine economy grew at a slower pace of 5.7% as the
growth in the agriculture and industry sectors eased due to the lingering effects of Typhoon
Yolanda (Haiyan).

Manufacturing key economic driver

"Manufacturing accounts for 23% of the economy, implying that the sector added incremental
1.4 to 2 percentage points to real Gross Domestic Product (GDP) growth in the second quarter,"
Beltran said.
Manufacturing output in June grew by 13.3%, slightly lower than the revised growth in May of
13.4%.
The growth in output for the first half was also lower than growth posted during the same
period last year.Producer Price Index (PPI) further slowed down to -2.9% in June 2014. This
implies that the sector continues to cut costs thus, further enhancing its competitiveness,"
Beltran said.
The chief economist mentioned that the manufacturing growth for June was broad-based, with
14 out of the 20 sub-sectors posted a positive growth.
Growth was led by printing (153.8%), followed by leather products (4.5%), and fabricated metal
products (39.8%).
The biggest sub-sector, food manufactures, was able to sustain its growth for two consecutive
months posting a 13.1% year-on-year growth for June.
For the first half, the following posted a significant increase in production: printing (135.4%),
furniture and fixtures (67%), machinery excluding electrical (52.2%), and fabricated metal
products (50%).
Full-year growth
The Philippine economy is projected to expand by 6.7% this year, with growth to be driven by
private consumption and investment, the United Nations Economic and Social Commission for
Asia and the Pacific's (UN ESCAP) said. The UN ESCAP forecast is at the lower end of the
government's 2014 target of 6.5% to 7.5%.
The World Bank however downgraded its growth forecasts for the Philippines for 2014 and
2015, given the slow start of the economy in the first quarter and weak government spending.
In the Philippine Economic Update August 7, the Washington-based lender said that it revised
its growth outlook for the Philippines to 6.4% from 6.6% for 2014, and to 6.7% from 6.9% next
year.
The World Banks forecasts are below the government's growth targets for 2014 and 2015 (7%
to 8%).
On the other hand, Manila-based lender Asian Development Bank said in April that the
country's economy would likely grow below government targets this year and the next,
tempered by higher inflation and interest rates.
ADB projected that Philippine growth would slow down to 6.4% in 2014 and 6.7% in 2015 from
7.2% in 2013. The forecasts are also below the government's targets.

Inclusive growth
Meanwhile, the National Economic and Development Authority (NEDA) again emphasized the
role of regional economies.
In particular, Economic Planning Secretary and NEDA Director-General Arsenio Balisacan
emphasized the importance of the regional and local governments working with the private
sector to make growth as inclusive as possible.
Citing such, the Philippine Statistics Authoritys latest Gross Regional Domestic Product (GRDP)
figures revealed that 7 of the 17 regions in the country posted accelerated growth in 2013.
The typhoon-battered Bicol region recorded the fastest growth with 9.4%, surpassing its 6.9%
growth in 2012, while the National Capital Region (NCR) registered only second with 9.1%.
Bicol and NCR were followed by South Cotabato, Cotabato, Sultan Kudarat, Sarangani and
General Santos City. (collectively SOCCSKSARGEN region), 8.4%; Agusan del Norte, Agusan del
Sur, Surigao del Norte, Surigao del Sur and Dinagat Islands, Butuan City, Cabadbaran, Surigao,
Tandag, Bislig and Bayugan (collectively Caraga region), 7.8%; and the Ilocos region, 7.7%.
The economy of Eastern Visayas rebounded from a 6.4% contraction in 2012 to a 5.7% growth
in 2013. Rappler.com
MANILA, Philippines The Philippines may reach 98% rice self-sufficiency by the end of 2014, said Agriculture
Secretary Proceso Alcala during his departments budget hearing on Wednesday, August 13, in Batasan, Quezon
City.
We project that we will be 96-98% rice self-sufficient in 2014, he told congressmen at the budget hearing.
But he told reporters that this projection does not consider typhoons that may again damage the agricultural
sector this year.
The Philippines is currently 96% self-sufficient in rice. It did not meet its target of 100% self-sufficiency in 2013
because of damage caused by typhoons, notably Super Typhoon Yolanda (Haiyan), said Alcala.

Despite Yolanda, the country was able to achieve its highest yield of palay in history by the end of 2013 18.44
million metric tons. He said the improvement in local production of palay is unprecedented. In 2010, the country
was only 82% sufficient.
But Representative Neri Colmenares of Bayan Muna asked why, despite the sterling figures from the DA, the
country was still importing thousands of metric tons of rice from countries like Vietnam and Thailand. The country
is still one of the top rice importers in the world.
If we were 96% rice self-sufficient in 2013 but we imported 500,000 MT. In 2014, we can even go up to 98% self-
sufficient but we are importing 1.3 million MT. How do we explain that to the people? The math does not add up,
said Colmenares.
The country continues to import because of the need to maintain buffer stock, which is used to stabilize prices in
the market, replied Alcala.
Our production is good but our cost of production is still high which means our rice is expensive on the
commercial side. If we do not have low-priced rice with the National Food Authority (NFA) as buffer stock, the
consumers will get angry because the price of rice will be high.
The DA projects that demand for rice in 2014 will be 12.9 million MT. Farmers can produce as much as 12.38
million MT this year, making the gap between supply and demand only 500,000 MT. But according to the NFA, the
country will import 1.3 million MT this year.
Is the PH agri sector competitive?
The only way to reduce importation is to help rice farmers lower their production cost so as to make the price of
local rice more competitive with Vietnam and Thailand.

Thailand rice is being produced at a cost of P8.40 (US$0.19) per kilogram, while Vietnam rice is being produced at
P5.40 ($0.12) per kilogram. In comparison, each kilogram of Philippine rice costs more than P10 ($0.23) to
produce.
Raising competitiveness of local agricultural products is one of the priorities of the DA, said Alcala. In their
proposed 2015 budget, funds to develop major agricultural products like rice, livestock, corn, high-value crops and
fisheries increased.
Funds will go mostly to putting up post-harvest facilities and helping farmers gain access to farm machines like rice
threshers, combine harvesters and transplanters.
These interventions promise to make farming more efficient thereby reducing production expenses of farmers.
But Representative Arnel Ty of LPG Marketers Association Party List pointed out that other Southeast Asian
countries are able to achieve lower prices because their governments subsidize their farmers. He asked, why cant
the DA do the same?
But Alcala maintained that while there are many ways to lower production cost, subsidizing is not the best.
Before the Aquino administration, the government was subsidizing seeds and fertilizer of farmers.
But our production did not increase like it has increased now. I would rather invest in post-harvest facilities
because it will benefit more farmers, there is no favouritism and farmers can use it for a long time, he said.
Increasing the number of irrigated land can also help increase the number of times farmers harvest from the same
parcel of land.
Right now, the Philippines still experiences lean months because during the dry season, farmers with no access to
irrigation are not able to harvest as much as during the wet season. Rappler.com
MANILA, Philippines Philippine exports grew at their fastest pace in 6 months in June, on the back of a rebound in electronics
shipments. The country is the top exporter among trade-oriented East and Southeast Asian economies, according to the
government.

Export earnings in June totaled $5.44 billion, up 21.3% from $4.49 billion in June 2013. This was the fastest growth since
December, when exports grew 24.9%.

For the first half of 2014, exports rose 8.3% to $29.8 billion from $27.5 billion in a comparable period last year, data from the
Philippine Statistics Authority showed.

The Philippines outperformed Vietnam (12.7%), Peoples Republic of China (7.2%), Malaysia (5.6%), Singapore (4.7%), Thailand
(3.9%), Indonesia (3.8%), Hong Kong (2.7%), Republic of Korea (2.5%), Taiwan (1.2%), and Japan (-6.5%).

This is the highest level since the economy started posting a continuous positive growth in the same period last year. It is also
way faster than the 6.9% increase in May 2014 and the 4.1% in June 2013, Economic Planning Secretary Arsenio Balisacan said.

The export gains are broad-based, as reflected by increased overseas demand for our manufactures, mineral products, total
agro-based, and forest products. This also indicates that the global economy is ready for a strong recovery, he added.

Top export commodities

Shipments of the biggest export group, electronics, mainly semiconductors, rose 10.7% in June to $2.22 billion. This was a
reversal of the 2.2% decline last year.

The positive performance of semiconductor exports mirrored the upward trend in the global chip industry, Balisacan said.

Other commodities that posted positive growth were:

machinery and transport equipment

bananas (fresh)
other mineral products
other manufactures
articles of apparel and clothing accessories
ignition wiring set and other wiring sets used in vehicles, aircraft, and ships
electronic products
chemicals

Favorable performance throughout 2014

Balisacan said the overall outlook for Philippine exports was bullish in view of favorable expectations on the global economy,
particularly the advanced countries of US and Europe.

On the domestic front, industry expectations also point to favorable export performance. The Semiconductors and Electronics
Industries in the Philippines Inc. and exporters of some non-electronics manufactures such as furniture, fixtures, and garments
expect upward adjustment and expansions in their annual growth forecasts, Balisacan noted.

For agro-based commodities, bright prospects for banana and mango exports are seen on the back of a possible increase in
market access, notably in Australia and the US, the cabinet official concluded.

Japan biggest market

Japan was still the top destination of Philippine exports in June, accounting for 17.6% or $956 million of the receipts.

China came second, with a 15.8% share, followed by the US, with 13.8% share.

In terms of regional destination, shipments to the Association of Southeast Nationsmember-countries comprised about 14.2%
of total exports while the European Union cornered 10.2%. Rappler.com
MANILA, Philippines Bureau of Customs (BOC) and police authorities arrested on Thursday,
August 14, a Customs employee for allegedly seeking, and accepting, a P1.5-million ($34,340*)
bribe to facilitate the clearance of prohibited shipment.

The BOC said in a statement on Thursday that the employee Ethel Bernas managed to
commit the alleged crime even after she had been dismissed from the service for grave
misconduct, effective July 31.

Operatives from the BOCs Enforcement and Security Service (ESS) and the Philippine National
Police-Criminal Investigation and Detection Group (PNP-CIDG) arrested Bernas, a Customs
Operations Officer III (COO 3) assigned at the BOC Auction and Cargo Disposal Division at the
Ninoy Aquino International Airport (NAIA) Collection District.

The arrest of Bernas was based on a complaint filed by Jane Louise Balse with the Customs
Police, the BOC said.

Balse alleged that Bernas offered to facilitate the release of container vans with used clothing
from Hong Kong and the United States in exchange for an initial payment of P1 million
($22,894).

Republic Act 4653 bans the commercial importation of used clothing or ukay-ukay and
textiles to protect the health of the Filipinos and to preserve the Filipino dignity.

Bernas reportedly asked for an additional payment of P425,000 ($9,734) supposedly for other
BOC officials.

Balse said that after she had paid the entire amount to Bernas, her shipment was still not
released. Bernas reportedly claimed that some documents had yet to be signed.

On August 8, Bernas allegedly demanded another P155,000 ($3,550) for the release of the
shipment, which prompted Balse to file the complaint.

Bernas faces charges for alleged violation of the Anti-Graft and Corrupt Practices Act, direct
bribery and estafa. She also faces administrative charges under the BOC Code of Conduct and
related civil service laws. The BOC said in a statement that the Ombudsman had already found
Bernas guilty of grave misconduct as early as June. In a 6-page decision dated June 25, 2014,
Overall Deputy Ombudsman Melchor Arthur Carandang approved the verdict and meted
Bernas with the penalty of dismissal from the service. The dismissal was effective July 31, 2014,
but Bernas continued to go to her office at BOC-NAIA claiming that she filed an appeal before
the Ombudsman.

Following her arrest, Bernas will be subjected to inquest and booking at the PNP-CIDG
Headquarters in Camp Crame. Rappler.com
MANILA, Philippines Palay production volume is expected to fall slightly in the second half of
the year mainly because of delayed planting in the third quarter, the Philippine Statistics
Authority (PSA) said in a report released over the weekend.

In its latest palay and corn situation outlook, the PSA said palay production from July to
December might fall by 1.2% to 10.31 million metric tons (MT) from 10.44 million MT produced
in the same period last year.

The PSA blamed this on the shift in the schedule of planting from the third quarter to the fourth
quarter due to damage caused by flashfloods in some provinces and inadequate irrigation in
some areas.

Production, harvest area and yield are expected to increase in several regions. There will be
movement of cropping from the third quarter to the fourth quarter because of delayed
plantings caused by insufficient supply of irrigation water and rainfall in the previous quarter,
the PSA said.

Palay production volume for the July to September period may drop 11% to 2.99 million MT
from 3.36 million MT last year.

Harvest area may contract from 869,670 hectares to 774,670 hectares this year. Yield per
hectare may also fall to 3.86 MT per hectare this year from 3.87 MT per hectare, said the PSA.

Based on planting intentions, palay production volume during the October to December period
is expected to grow 3.4% to 7.32 million MT from 7.08 million MT. Harvest area is also expected
to grow by 3% to 1.88 million hectares from 1.83 million hectares, while yield per hectare is
expected to grow by 0.40% to 3.88 MT per hectare from 3.86 MT per hectare. Palay production
volume in the first semester of 2014 rose 4.8% to 8.38 million MT from 7.99 million MT
produced in the comparative period last year. Harvest area expanded to 2.10 million hectares
from 2.04 million hectares last year. Yield per hectare rose 2.1% to 3.99 MT per hectare from
3.91 per hectare.

The PSA forecasts palay production this year to reach 18.69 million MT, 1.4% higher than the
18.44 million MT produced last year.

Meanwhile, corn production in the second semester of the year is expected to increase 1.8% to
4.13 million MT from 4.05 million MT.

Harvest area may increase 0.1% to 1.49 million hectares from 1.49 million hectares, while yield
per hectare may rise by 1.6% to 2.77 MT from 2.72 MT, according to the PSA.

Increased harvests are expected to come from Cagayan Valley, Western Visayas, and
CALABARZON because of the availability of seeds. Rappler.com