Peso losing its competitiveness – DBS

[digitalsuperman]

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Gikan mana sa imoha nga link bro nako gikuha ....

bro. so imong pasabot nga if low ang share capital kay gamay pud na nga corp? sure ka ana? paki explain daw kay naglibog ko.

[vipvip68]

Kanang 63% bro dili na dagko nga corp. During every quarter of 2011, majority of the newly registered companies opted for a low share capital below S$10,000.

Ang bulk sa investment in term of amount ang FDI jud in Singapore ..

Sa Malaysia .. although it maintains restrictions or limits on investment in some sectors ... but dili tanan gi restrict ... FDI gihapon nagpalihok ug dako sa ilaha economiya .. $10B Total FDI for 2012 nindot pajud ang goberno nila hayahay sila.

Parihas pud unta nila ang Pilipinas .... naa rajud sa mga Politico ang kaugmaon nato ani ...

So why man nga mas restrictive ilaha country with 70/30 sharing pero dako gihapon ilang FDI?

Is the 60/40 restriction the only determining factor in increasing FDI? I think you should consider other factors like economic outlook, political stability and the investment landscape.

removing the 60/40 restriction to my mind is not the cure all solution to everything. at this point, di pa ko convinced about removing it especially since the economy is doing well the pastfew years and there are already lots of mechanisms in place to bypass the 60/40 restriction.

[vipvip68]

this is a gimme.

You remove the restriction, you give the foreign companies one more incentive to open shop in this country. They invest in this country, it produces jobs for people who otherwise don't have any. People have jobs, the middle-class will grow. The middle-class grows=more robust economy.

It is no secret that this country needs FDIs. The BPO industry is evidently the major sector to contribute in FDI in the Philippines. You allow BPOs to have full equity of FDI, it will encourage FDI inflow to the country. Most major BPO players have done the same thing to maximize their FDI and give incentives to those companies. Not to say that the Philippines does not have any incentives, with a large labor force that is satisfactorily fluent with English-- It certainly can be more competitive than it is at present, without the "nationalistic" 60/40 laws. Nowadays, nationalism is a distorted word that serves the purpose of propagating the interests of the few.

Can you also cite disadvantages to opening up the country to 100% foreign ownership? Also, what are your views on foreigners owning land?

[æRLO]

dili man pud na kasigurohan nga if mag allow 100% forieng ownership sa company kay makapa boom gyud sa economy.

dili pud maayo icompare sa singapore. in fact singapore has only 26% foreign owned companies compared to 63% local companies. so ang nag drive sa economy ug employment sa singapore kay ang local businesses gihapon.

read your own source. It tells you that Singapore ALLOWS 100% equity or ownership of companies in Singapore
(the 26% are companies that are 100% foreign-owned). the 63% means a lot of the companies there are locally owned, it doesn't mean foreign companies CAN NOT own 100% of their companies.

63% are 100% Singaporean/locally owned
26% are 100% foreign-owned
11% are owned by foreigners and Singaporeans alike.

[digitalsuperman]

read your own source. It tells you that Singapore ALLOWS 100% equity or ownership of companies in Singapore
(the 26% are companies that are 100% foreign-owned). the 63% means a lot of the companies there are locally owned, it doesn't mean foreign companies CAN NOT own 100% of their companies.

actually I had another point on that data. read my conversation with aming.for your reference.

[trollolol]

So with the removal, aren't we just trading a local oligarch for a foreign one? Unsa man gyuy real significant change mabuhat sa removal? Basin mu ingon nasad ni mga common tao "wa gyud nako ma feel ang kausaban" Or... "akong amo saona kay co-worker na namo karon kay ang tag-iya kay mga foreigner na tanan".




I think Oligarch's will be fine cos they have already established themselves and naa silay safeguards tungod sa ilang existing assts.. for me, ang pinaka affected ani kay ang mga SME's.



Para nako lang ang delikado ani kay instead of owning 60% shares in a semi progressive country, most of us will all just end up to be employees cos the foreigners will literally own us. Tinuod nga mas progressive atong country with the additional FDI pero who stands to benefit from it? Wont we find ourselves in a situation where... tinuod nga progressive ta like SG or HK, pero mas lisod na mu compete sa business kay everything is controlled by the old local oligarchs plus the new foreign oligarchs....

For me, we need to generate FDI's ... but we also need to grow our local industries and attain self sufficiency. There are also exemptions to the 60/40 sharing like Export Processing Zones and BOT (Build Operate and Transfer) schemes and even call centers are exempted diba?

The 60/40 isnt really a hindrance in this respect as the examples above show that our country is already benefitting from FDI's. It also maintains some control through this as totally opening up all industries to FDI might do more harm than good.

I think naa gyud ni siya pros and cons and the trick is to find a balance. What works for SG and HK might not necessarily work for our country.

Necessity is the mother of invention. What need is there for oligarchs to innovate if and when their market is protected and basically guaranteed under the flawed constitution. What we have now are cartels disguised as competing corporations.

examples:

1. Sa telecoms lang daan, dagko kaayo ta ug rates yet we have one of the slowest internet speeds per average. Abusado pa kaayo ang ISPs.

2. Cebu Pacific? A nightmare tungod walay open skies policy.

3. Electricity rates? Hehehe one of the highest in Asia second only to Japan.

The only produce we have that is compliant to international standards save for anything from agriculture and mining is our people.

Let the foreigners compete for our love and attention because it seems like our local tycoons are taking it for granted.

Back on topic: Our government is incompetent. While most countries are on a march towards the devaluation of their currencies, we are trumpeting the peso's surge. Stupid aszholes I say and we only have the people to blame. It's everyone for himself.

[æRLO]

actually I had another point on that data. read my conversation with aming.for your reference.

of course Singapore should have an economy structured on locally-owned economy, but the 26% foreign owned company is still a sizable chunk of the companies in operation there.

In addition, with regards to the Malaysian 30% Bumiputera policy, it is the other way around. Foreign companies have to have Malay equity of 30% in their company to be allowed--which only applies to a number of sectors and has been gradually liberalized up until now. Compared to...

I. No Foreign Equity Allowed: Mass media (except recording); practice of all professions (engineering, medicine and allied professions, accountancy, architecture, criminology, chemistry, customs brokerage, environmental planning, forestry, geology, interior design, landscape architecture, law, librarianship marine deck/engine officers, master plumbing, sugar technology, social work, teaching, agriculture, fisheries, and guidance counseling); retail trade enterprises with paid-up capital of less than US$2.5M; cooperatives; private security agencies; small-scale mining; utilization of marine resources; ownership, operation and management of cockpits; manufacture, repair, stockpiling and/or distribution of nuclear weapons; manufacture, repair, stockpiling and/or distribution of biological, chemical and radiological weapons and anti-personnel mines; and manufacture of firecrackers and other pyrotechnic devices.

II. Up to 20% Foreign Equity Allowed: Private radio communications.

III. Up to 25% Foreign Equity Allowed: Private recruitment, whether for local or overseas employment; contracts for the construction and repair of locally-funded public works; contracts for the construction of defense-related structures.

IV. Up to 30% Foreign Equity Allowed: Advertising.

Now, here’s where the term “60/40 Law” got coined:

V. Up to 40% Foreign Equity Allowed: Exploration, development and utilization of natural resources; ownership of private lands; operation and management of public utilities; ownership, establishment and administration of educational institutions; culture, production, milling, processing, trading excepting retailing, of rice and corn and the by-products thereof; contracts for the supply of materials, goods and commodities to government-owned or controlled corporation, agency or municipal corporation; project proponent and facility operator of a BOT project requiring a public utilities franchise; operation of deep sea commercial fishing vessels; adjustment companies; ownership of condominium units; manufacture, repair, storage, and/or distribution of products and/or ingredients requiring Philippine National Police (PNP) or Department of National Defense (DND) clearance; manufacture and distribution of dangerous drugs; sauna and steam bathhouses, massage clinics and other like activities; all forms of gambling; domestic market enterprises with paid-in equity capital of less than the equivalent of US$200,000; domestic market enterprises which involve advanced technology or employ at least fifty (50) direct employees with paid-in-equity capital of less than the equivalent of US$100,000.

VI. Up to Sixty Percent (60%) Foreign Equity Allowed: Financing companies and investment houses regulated by the SEC.

and we wonder why there isn't FDI inflow into the country.

[img]http://4.bp.blogspot.com/_yuve5V2v_bY/TUaaAdVgQ1I/AAAAAAAAAGg/aeUsCqldFt0*******Business+impact+of+rules+on+FDI.jpg[/img]

not even close to the 5th placer.

[monroy]

On the bright side, a strong peso means better purchasing power for filipinos outside the country and better business for importers.

As for BPO companies, the owners are still making big fat profits because they just have to follow our wage laws here which is just a fraction of what they would pay in their home country.

As for OFW's. para nako, it's better for the Philippines to grow our jobs locally than export our best and brightest. We need the engineers, architects and other technically skilled and creative minds working for our own country.. not for some other western, asian/chinese or arab country. Of course we need to pay them accordingly also. Government should take steps to grow the Philippines into an industrial powerhouse.

OfW's are a symptom of our country's inability to provide well paying jobs. So the goal is to fix the problem cos OFWs given the same opportunities would rather stay here than work abroad away from their families.

This reasoning is terribly flawed. No country has ever become rich by letting the importers become rich. Importers drain the country of wealth, they generate no value unless the goods importd are used to produce goods that are exported back overseas.

You compare our wages here with the US but that blatantly misses the obvious threat to our BPO industry is not American BPO workers but BPO workers in other outsource destinations like India. BPO locators are willing to pay a premium for the better English skills here. Even arguing that this were true, being willing to pay a premium is different from wanting to pay any premium. The continued appreciation of the peso is destroying our competitive advantage. There will come a point when the better quality becomes an untenable value proposition. In the furniture industry, we are well acquainted with the reality that Americans aren't going to pay 4x the price for something that is only 10% better. I mean sure Indians have a poor accent but Americans can understand them and at the end of the day thats really all that matters...