Korea Eximbank puts up PH office By: Michelle V.

Remo Philippine Daily Inquirer Korea Eximbank, a state-owned institution engaged in providing financial assistance to private firms and governments, has set up an office in the Philippines in anticipation of the expected rise in investments from South Korean firms. South Korean companies from various industries are keen on putting up operations in the Philippines because of the countrys favorable economic growth prospects, Korea Eximbank said. The bank said some of these companies were transferring their plants from China, where the costs of operations were on the rise, to the Philippines. Some Korean firms now find it expensive to do business in China, prompting them to look for alternative sites for their businesses in Southeast Asia, it added. The Philippines is one of the preferred sites of Korean firms, the bank said, because of the countrys positive economic indicators. These include the countrys relatively huge population and sustained economic growth. Korea Eximbank also noted that the Philippines was poised to get an investment grade within a year or two from either or all of the three major global credit-rating firms, namely, Moodys Investors Service, Standard & Poors, and Fitch Ratings. Once the country gets an investment grade, according to the bank, business activities will rise and Korean firms want to be here when that happens. More Korean companies will come to the Philippines. That is why we decided it was time to open a representative office here, Tae-ik Park, chief representatives of Korea Eximbank to the Philippines, told reporters. The Philippines has a high population [estimated at about 92 million] and abundant natural resources that attract Korean firms. Currently, FDIs [foreign direct investments] from Korea to the Philippines are low, but these are expected to rise, Park added. Korea Eximbank has just started operations in the Philippines. The Bangko Sentral ng Pilipinas issued a circular noting the approval of the banks operations in the country on June 18. Park said a representative office in the Philippines was partly meant to give financial and nonfinancial forms of assistance to Korean firms investing in the country. Non-financial forms of assistance may include technical and sharing of business-related information on the Philippines. Korean Eximbank is also one of the Philippines sources of official development assistance. For 2011 to 2013, the bank earmarked $500 million in ODA for the Philippines. Of the amount, about $246 million has been earmarked for specific projects. The Philippines is the fifth-biggest borrower from Korea Eximbank following Vietnam, Indonesia, Sri Lanka and Cambodia. Korea Eximbank lends to 49 countries.

Coco water exports surge by almost 200 percent Coconut water exports surged by almost twofold in the first four months of this year, the Philippine Coconut Authority said on Monday. In a press conference, Euclides Forbes, PCA administrator, said that cocowater export surged by 175.80 percent to 5.993 million liters in January to April this year from 2.173 million during the same period a year ago. This translates to $6.602 million in earnings, or 174.36 percent higher than the $2.406 million recorded in the same period in 2011, Forbes said. Coconut water purchases from the United States accounted for the bulk of shipments at 4.820 million liters, or a 191.66-percent increase from 1.652 million liters last year. Export value also increased 266.27 percent to $5.3 million from $2.4 million. Export increases to other destinations for January to April compared with last years figures include: The Netherlands, from 48,000 liters to 225,289 liters or an increase of 369 percent with earnings from $43,200 to $243 million or a good 464.53-percent increase; Australia, volume increased from 43,806 liters to 101,973 liters, which is a 132.78-percent increase in value from $49,183 to $124, 959, which is a 159-percent increase; Switzerland registered the highest surge in percentage value at $450 to $6,410 or more than a 1,324-percent increase. Forbes is confident that this years coco water export figures will even exceed that of total 2011 figures of 16.685 million liters in volume and $15.113 million in value, considering that international demand for cocowater continues to rise as more people turn health conscious. Coco water is rich in potassium and magnesium, and contains vitamin B, such as thiamine, which strengthens muscles, delays fatigue and maintains normal heart function. It is a good source of electrolytes and glucose and has been found suitable for intravenous rehydration. Given the strong demand for coco water abroad, Forbes said that there is a need to plant more coconut trees. He reaffirmed commitment in the aggressive implementation of various PCA programs involving planting, replanting and fertilization of coconut farms, which will increase coconut productivity. The PCA also allotted $1.4 million to implement an immediate and extensive measure to mitigate the scale insect infestation in affected areas in 41 barangays of seven municipalities in Batangas. Forbes said that the scale insect infection in Batangas is now contained at 6 percent of the total coconut population in the province. Of the total coconut area of 34,932 hectares covering 34 municipalities, nine towns with a total of 2,054 hectares or only 6 percent are affected by the scale insect attacking coconut, he said.

Listed firms post 24% growth in first quarter The Philippine Stock Exchange (PSE) said on Monday that the combined net incomes of listed firm grew by 24 percent to P134.66 billion in the first three months of this year, from P108.60 billion in the same period last year. This was attributed to the better performances showed by Financials, Industrial, Property and Holding Firms sectors. The robust first quarter results of listed companies validate the impressive performance our market has had so far, highlighted by the PSEi rewriting record highs 19 times already this year. This also underscores the fundamental soundness of our companies, which add to their potential for consistent future performance, PSE President and Chief Executive Officer Hans Sicat said. Four out of six sectors recorded positive net income growths during the first quarter, led by the Financials sector, which surged by 73.2 percent. On a revenue basis, five of the six sectors registered higher revenues, with the Financials sector again leading the way with a 26.6-percent jump. With the stable macroeconomy supporting a thriving business environment, our local market is poised to continue its upward trajectory. And despite concerns in the global landscape, particularly the long-running debt saga in Europe and worries over an economic slowdown in China, we enter the second half with considerable optimism that we can sustain this exciting pace, Sicat added. Securities trading gains were the main proponent for the 73.2 percent collective net income increase of firms in the Financial Sector. The consolidated profits of companies in the Industrial Sector increased by 31.9 percent because of nonrecurring gains, and increased contributions from subsidiaries. Combined net income of firms in the Property Sector increased by 25.1 percent on account of improved real estate sales, while consolidated revenues of listed companies increased by 18.9 percent to P1.02 trillion in 2012. Companies in the Holding Firms Sector experienced a 22.7-percent increase in their collective net income due mainly to dividend earnings and improved income contributions of their subsidiaries and associates. But the profits of firms in the Services sector went down by 8.2 percent on account of the absence of nonrecurring gains and higher costs of sales and operating expenses. Aggregate net earnings of companies in the Mining and Oil sector dropped by 25.7 percent because of increased costs and operating expenses, as well as the absence of extraordinary gains from debt settlements.