Last week, President Noynoy Aquino expressed his dismay over media’s supposed failure to focus on the “good news.” Observers say the president is probably experiencing something similar to a prophet not being honored in his own country or something to that effect, since the positive news he’s looking for is being carried by the international press.
An example is the report by Financial Times Asia editor David Pilling who said the Philippines, long derided as a “basket case” and “economic laggard,” is poised for an investment boom. For one, the country has graduated from being a debtor to creditor, having wiped off its debt from the International Monetary Fund -- in contrast to many European countries today.
For so long, the Philippines has been characterized as a laughing stock with its GDP of $2,200 per capita, so much unlike neighboring Thailandwith a GDP per capita of $5,400, Pilling noted. Insted of a swift tiger, the country is moving like a llama, “trudging dolefully along a dirt track.” However, the article cites several positive indicators that should make President Noy smile in agreement.
Not surprisingly, topping the list are OFW remittances that have grown over the years to approximately $20 billion yearly, nearly 10 percent of GDP. And while the continued exodus of Filipino workers for jobs abroad underscores the lack of employment opportunities here, Pilling puts it another way: our OFWs help provide a “solution to the labor shortages of mature economies the world over.” Notably, the BPO/call center industry keeps growing, with “revenues from back office businesses [have] quintupled over six years from $2 billion to $11 billion.” The deficit has also narrowed from five to six percent a decade ago to a more manageable two percent, Pilling said, noting that “spending has been kept in check.”
But perhaps the most positive of all -- and one that would definitely put a balm to the President’s dismay, is the observation that the political situation in the country has improved a lot. “Benigno ‘Noynoy’ Aquino, elected President in 2010, has made a creditable start. For one, his government has sent out a strong message that it will not tolerate corruption (a distinct change from past governments, which actively encouraged it),” the article went, putting emphasis on the President’s directive to go after tax cheats.
Even the recent Supreme Court ruling on Hacienda Luisita has not escaped the notice of international media, saying that the controversial issue should now be put to a close.
“The fact that a sitting President can be stripped of land is a hopeful sign that the separation of powers enshrined in the constitution is being honored,” Pilling pointed out. Indeed, how often does one read a story about an incumbent President losing a case to farmers?
That is not to say that everything will come up roses from henceforth. On the contrary, there is more work to be done to bring food security to Filipinos, build much needed infrastructure, look for alternative sources of energy and other problems made even more challenging by the fact that our population continues to explode.
Admittedly, “progress has been slow,” but the solid political standing of the president has given economists cause to predict a private investment boom, coupled by the fact that half of the population is aged below 25 and that we have one of the healthiest banking systems in Southeast Asia. And while few have noticed, our economy grew at 7.6 percent in 2010, “faster than Indonesia, Asia’s investment darling.” What’s more, the Philippines stock market was “the world’s seventh-best performing the year to date,” and the “Philippine exchange is up more than 20 percent, among the world’s top 10 performers.”
So, good news? Definitely.
Ultimate dealmaker
For a while, it looked like Ramon Ang’s $500-million purchase agreeement for 49 percent of PAL would not happen when a firm offer to buy 100 percent of the country’s flag carrier came in the last minute from the group of Manny Pangilinan. Spy Bits received information that the person who reportedly finally convinced Lucio Tan was the low-key business tycoon Enrique Cheng, who has parlayed his business savvy to build an empire spanning several industries -- from department stores to banking to real estate not only here but in China, specifically Beijing and in Fujian, where he traces his ancestral lineage.
Apparently, it was Cheng who advised “Kapitan” to accept the San Miguel/RSA offer, and let go in view of all that acrimony and infighting that was allegedly happening in the taipan’s family. Not many are also aware that Cheng was also the one who convinced Tonyboy Cojuangco to take over PAL -- before it was eventually acquired by Lucio Tan. One of Cheng’s earlier investments was with Tonyboy Cojuangco’s PLDT, and by the time the telephone company was acquired by the group of Manny Pangilinan, Enrique Cheng has reportedly become the third biggest investor in PLDT.
Those familiar with Cheng – also known as “Mr. Landmark” – say he prefers being under the radar since it is one of the reasons why he has been successful as an “ultimate dealmaker.”
Spy tidbit
CVC Law, more popularly known as The Firm, turned 31 the other day. Since its inception, the law office founded by Tony Carpio, Pancho Villaraza and Avelino Cruz has become one of the most powerful in the country with senior partners chosen by no less than presidents as advisers and Cabinet members. The Firm gets only the most accomplished law graduates, which is why it has become a “fertile training ground for future leaders” of the legal community and the country.
Joining Pancho Villaraza for a month-long holiday-cum-celebration in Salamanca, Spain and southern and northern France are managing partner Bong Somera, Sylvette Tankiang, Al Navarro, Gus San Pedro, Thea Daep and Franchette Acosta with their respective spouses.
“Well deserved,” according to a senior law partner of the firm.
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Email: spybits08@yahoo.com.