Foreigners upgrade outlook on Philippines

  • Australia sees ‘regroup’ on MH370 search in a few days
    Australia sees ‘regroup’ on MH370 search in a few days

    Australia will decide in a few days whether to alter or scale back the search for missing Malaysia Airlines flight 370, but will consult all countries involved on any changes, Australia's ambassador to the United States said yesterday. Kim Beazley told CNN the search countries would "regroup and reconsider" if nothing is found in a section of... …

  • MAS plane bound for Bangalore makes emergency landing in KLIA after tyre bursts
    MAS plane bound for Bangalore makes emergency landing in KLIA after tyre bursts

    A Malaysia Airlines plane with 166 people on board was forced to make an emergency landing in Kuala Lumpur early today in another blow to its safety image after the loss of flight MH370. Flight MH192, bound for Bangalore, India, turned back to Kuala Lumpur after it was discovered that a tyre had burst on take-off, the airline said. "As... …

  • Academic: Seaweed farmers main suspects in turtle deaths
    Academic: Seaweed farmers main suspects in turtle deaths

    PETALING JAYA, April 21 — Seaweed farmers are believed to be responsible for the deaths of four green turtles found floating in the sea between Bum-Bum Island and Kulapuan Island in Semporna.... …

  • Bible, highway storm proves ‘Kajang Move’ right, its engineers say
    Bible, highway storm proves ‘Kajang Move’ right, its engineers say

    KUALA LUMPUR, April 21 — Tan Sri Khalid Ibrahim has shown he is unfit to head Selangor as seen in his recent fumble of the bible seizure and the green light given for a 14.9km elevated highway... …

  • Mosti deny accusations that R&D grant of RM1.152 billion was abused – Bernama

    The Ministry of Science, Technology and Innovation (Mosti) today denied allegations of abusing grants amounting to RM1.152 billion that was allocated for research and development (R&D). Its deputy minister Datuk Dr Abu Bakar Mohamad Diah said the allocation for the R&D was given to researchers or applicants using a tight procedure. He said... …

  • Singaporean tourist killed, 39 injured in bus accident, the third in 8 days – Bernama

    A Singaporean tourist was killed while 39 others were injured, including two drivers, when the double-decker tour bus they were travelling in plunged into a ravine at KM70 of the Kuantan-Segamat highway near Pekan, Pahang, this afternoon.  The bus, driven by a local driver, transporting 38 Singaporean tourists from Redang Island, Terengganu to... …

Manila (Philippine Daily Inquirer/ANN) - After a surprising 7.1-per cent third-quarter economic growth, more international institutions have upgraded their economic outlook on the Philippines to factor in a stronger-than-expected economic momentum.

In a research note, ING Philippines economist Joey Cuyegkeng said growth in the fourth quarter would likely be higher at 6 per cent compared to an earlier expectation of 5.6 per cent, bringing full-year growth to 6.3 per cent. ING was previously expecting a full-year 2012 growth of only 5.9 per cent for the Philippines.

London-based think tank Capital Economics also expected the Philippine economy to expand by 6.3 per cent this year, upgrading its outlook from the previous forecast of 5 per cent. "Reflecting the economy's resilience this year, we are also raising our growth forecast for 2013 to 4.5 per cent, up from 4 per cent previously," Capital Economics said, adding, though, that its outlook for next year was still below the consensus forecast for growth in 2013, which was 5.25 per cent ahead of the recent third-quarter data.

For the first three quarters, the country's gross domestic product grew by 6.5 per cent, much stronger than 3.9 per cent in the same period last year.

"With upcoming holiday spending and the budget secretary predicting the start of election-related spending in the fourth quarter, full-year GDP looks set to exceed the upper end of the government's 5-6 per cent target," said New York-based think tank Global Source.

The Global Source research said the economy's stronger growth, which pushed domestic output further above trend, would likely be "an important consideration as monetary authorities weigh inflation risks and decide on the policy rate in its next meeting on December 13".

ING's Cuyegkeng said the third-quarter growth might have erased any chance of a fresh interest rate cut by the Bangko Sentral ng Pilipinas (BSP or central bank) in its next meeting this month. "But watch for some macro-prudential limits from BSP to affect cross-border flows," he said.

Citing BSP Governor Amando Tetangco Jr.'s speech at a recent forum, he said it was reiterated that cross-border inflows were making monetary policy-making challenging. It was noted that the IMF was expecting about US$112 billion in inflows to Asia this year and $182 billion in 2013.

"Hot money" inflows are seen remaining huge next year as the external environment is stabilising-also an assessment among central bankers that cross-border inflows were coming not just from banks but from corporations.

The BSP is focused on the financial stability that cross-border flows might affect, including threats of asset bubbles, according to Cuyegkeng. "The BSP has a deep tool kit to deal with cross-border inflows. The tool kit includes macro-prudential tools-some of these have been deployed to include prohibition of offshore funds into SDAs [special deposit accounts] and higher capitalisation requirements for NDFs [non-deliverable forwards]," the economist said.

Capital Economics said the big challenge for the government would be to sustain a strong investment. "Recent improvements in the country's business environment as well as an ongoing clampdown on corruption bode well for the future. Moreover, after a slow start, there are promising signs that the government is starting to make decent progress on a series of public-private partnership projects, which should help improve the country's dilapidated infrastructure and become a driver of growth in the coming years," the research said.

But the major downside risk comes from abroad, the London-based think tank said.

For the third quarter, exports of goods and services slowed but were still up by 6.9 per cent year on year. "This was considerably better than most countries in the region managed last quarter. But with the global economy likely to disappoint in 2013, we still expect the country's consumer-focused exporters to struggle over the next year," Capital Economics said.


Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • In funeral procession, thousands chant ‘Karpal Singh! Karpal Singh! Karpal Singh’ (VIDEO) The Malay Mail Online
    In funeral procession, thousands chant ‘Karpal Singh! Karpal Singh! Karpal Singh’ (VIDEO)

    GEORGE TOWN, April 20 — The streets of Penang’s historical city centre roared with the voices of thousands calling out the name of their state’s beloved son — Karpal Singh.  Elbows jostled with... …

  • Raja Bomoh spouting mumbo-jumbo again The Malaysian Insider
    Raja Bomoh spouting mumbo-jumbo again

    Bomoh (shaman) Ibrahim Mat Zin (pic, third left) is in the headlines for the wrong reasons again, this time for conducting a cleansing ritual along KM306.1 of the North-South Expressway. The area has been in the spotlight since last Thursday after Bukit Gelugor MP Karpal Singh died when his Toyota Alphard was involved in a collision with a... …

  • Remains of Karpal’s aide to be flown back to India The Malaysian Insider
    Remains of Karpal’s aide to be flown back to India

    The remains of Karpal Singh’s personal aide Michael Cornelius, who died in Thursday's accident along with the Bukit Gelugor MP, will be flown back to India today, according to media reports. Prayers would be held for Michael, 39, at the Ipoh Hospital mortuary before his remains are transferred to the Kuala Lumpur International Airport, The... …