In your face!

During the many debates on the Japan-Philippine Economic Partnership Agreement (JPEPA), its proponents promised us that the country would be treated well by Japan with this pact. And that we will gain much in trade, aid and investments, among other things.

Ngek!

What is this P1.3 billion loss?

This clearly shows that the Philippines is not a favored nation in spite of the JPEPA as Tokyo cuts its aid to Manila next year.

Time to make those who voted for JPEPA accountable. Remember them on May 10, 2010.

Big bang on May 9

Local fair trade advocates opened a mini-fair at the Matina Town Square yesterday to prepare for the big bang on May 9 to mark the World Fair Trade Day.

Activities for the mini-fair includes a forum, product exhibits and demonstrations and an evening concert.

Thanks to Katakus, an award-winning micro-enterprise NGO and volunteers of the UK-Philippines Global Xchange for organizing the mini-fair.

Join the big bang on May 9 by beating drums against poverty, against the global economic crisis and against climate change.

Alternatives

Here is an historic opportunity for transformation.

Sign in here to help address the global economic crisis.

Unusual times

These are indeed unusual times.

The Indonesian stock market, one of those suspended last week due to southward trading in a worldwide market meltdown, will open today – a Sunday. Most businesses usually close on this day, but the Jakarta bourse is trading today.

And the US by Monday could be buying bank stocks for the first time since the Great Depression to help calm down the market.

Let us take some time to laugh while we still can.

Thanks to Tony’s blog for this new dollar bill:

Contrast

We have seen the closure of banks, financial institutions and insurance companies the past several months in the US, Europe and lately Japan as a result of the global financial crisis.

The opposite, however, is occuring here in Davao. Almost a new bank branch is being opened here every month. Yesterday, it was the First Consolidated Bank based in Tagbilaran, Bohol, which started operations at its sprawling center at Sasa. Last August, I also represented Mayor Rody Duterte at the opening of the East-West Bank infront of high-end shop Chimes along Sales St. in Chinatown. East-West Bank is opening another branch at Matina just off Ateneo very soon.

Last month, the long idle Madrazo property infront of Central Bank finally gave way to a new bank branch of Philsavings.

Davao is not immune to the financial crisis and the impending global recession but it is faring well, according to NEDA.

Ex-treasurer to discuss crisis

The Ambassadors Club of Davao will hold a joint-meeting with the American Chamber of Commerce of Davao on October 9 at Marco Polo Hotel to discuss the current global financial crisis.

The guest speaker is former national treasurer Omar Cruz, who is now chief investment officer of Philamlife, one of the country’s largest insurer. Its mother firm in the US, AIG, is one of those hit by the credit crunch. Cruz, indeed, would be an apt resource person to talk about the economic crisis and its effects on the Philippines.

Ambassadors Club president Roy Ferrer is encouraging members to attend the meeting and invite their friends, particularly potential recruits, to come along.

Recto is new NEDA chief

It’s 3:34 p.m. and Executive Secretary Ed Ermita has just announced in Malacanang the appointment of former Senator Ralph Recto as Director General of the National Economic Development Authority (NEDA).

My earlier post – Cabinet revamp – on this looming development proved to be true.

His appointment is to take effect immediately.

Jollibee

Jollibee, the Filipino fastfood chain led by Davao-bred Tony Tan Caktiong, is gaining new customers due to the economic slump. They are high income customers – in barong – who are now crowding out the masses at its stores.

I wonder if the same trend is true at McDo …

6:09 a.m.

My pay slip

Ever wonder how much elected city councilors make?

These are the entries in my pay slip for this month:

Earnings – Monthly Salary P25,764.00; Personal Emergency Relief Allowance (PERA) P0.00; Additional Compensation P1,500 – Total P27,264

Deductions – GSIS Life & Retirement Insurance P2,318.76; Home Development Mutual Fund Premium P100.00; Medicare P312.50; Withholding Tax P3,836.60; PAG-IBIG Loan P617.46 – Total P7,185.32

Net Pay – 1st Week P5,019.00; 2nd Week P5,019.00; 3rd Week P5,019; 4th Week P5,021.68 – Total P20,078.68

Not much huh? This should belie popular perception that politicians make a killing such that many poor people line up at our offices and homes for financial aid.

Ha, ha, ha. At P20,000 a month, councilors are in fact receiving lower than the ideal living wage of at least P1,000 per day for a family of six.

This pay slip was released last July 1 or prior to the effectivity of the new law exempting minimum wage earners from income taxes and increasing the personal exemptions and additional deductions on those earning higher income.

So, employers need to adjust their computations on all their employees to comply with this new law on withheld taxes. Mine is P3,836.60 a month. I am a public servant and yet the government takes away from me this much per month.

It is estimated that this non-wage benefit would add at least P34 per day to the take home pay of minimum wage earners. Unfortunately, the galloping inflation rate has eroded the same before workers could enjoy this benefit. Inflation in June was recorded at 11.4 percent, the highest since 1994.

6:15 a.m.

Back as battleground

Top honchos of the economic team of the government are in Davao City today to present the state of the economy to local officials and business sector.

Last week, controversial Joey de Venecia was here too as guest of local lawyers campaigning for truth.

This week, Jun Lozada is expected here for his provincial campus tour.

Davao City is back as a battleground for the hearts and minds of the people.

We recall that during the late 1970s and into the 1980s, this city was the laboratory of the urban war between NPA partisans and government-backed vigilante groups fighting for the loyalty of the people. It was a nasty experience that left the city with scars.

Would I expect this new game to be any different.

Nah, the visits of Joey de Venecia, Jun Lozada and the economic team would be as unproductive.

(6:15 a.m.)

Burn them!

This advise is too radical.

But I tend to agree with it.

” … burn all economic schools in town. They have been teaching our leaders the wrong economics all along” is how nationalist economist Ding Lichauco concluded his column on the rise of China following a path of “rapid industrialization.”

(5:24 a.m.)

2008 Outlook

With looming recession in both our country’s major trading partners – US and Japan – the economic outlook for 2008 appears dim.

But I do not believe such a case for Davao City. The city has shown its resilience in the past, for instance, during the Asian financial crisis ten years ago. It continued to grow in spite of slowdown in the region and in the country.

I see a particular good year for the city especially with the rising boom in property development. Among the lined up projects for this year are the Ayala-Floirendo joint venture mixed use development of 10 hectares in front of Redemptorist Church, Filinvest’s housing and condo projects, Consunji’s second and bigger condo project and other property development, Robinson’s new housing project, and possibly SM and NCCC finally going into building call center facilities.

The city’s other good prospects are in agribusiness, tourism and ICT.

(6:12 p.m.)

Sinful P1 Trillion

Short of funds? Where have all the money gone?

To tame inflation, bankers, including the central monetary authorities, have been keeping our money in the vaults. These “lazy” bankers kept the money out of circulation.

Thus, depriving the economy of a “sinful P1 Trillion” which could have been used to shoot up the GDP up to 11 percent growth.

Here are more idle funds. This one is collected from OFWs. Of a net income of P1.258 billion in 2006, the Overseas Workers Welfare Fund spent only P45 million for loans and seminars. A whooping P1.2 billion was left unused. This should have been invested here to create jobs and keep more Pinoys from leaving for work abroad.

Whew, from where I sit, I view these two scrimping as shameful crime!

(4:48 a.m.)

Strong Peso

The Peso has entered the P44 band yesterday closing at P44.85 to a US Dollar.

I dread the coming months for our OFW families, exporters and inbound tourism industry players.

The French banking giant BNP Paribas forecasts the Peso to end the year at P43. It moreover sees the Peso catching up with the surging Thai Baht and go as much as P37 by next year and P30 by the end of 2009.

Oh well, I believe this is too optimistic. Remember the other end when Lucio Tan predicted that the Peso will exchange at P100?