The country's biggest conglomerates have allotted P200 billion for capital expenditures as a “show of confidence” in the Philippine economy, a report by an investment analyst showed.

Astro C. del Castillo, managing director at stock brokerage First Grade Holdings, Inc. said Metro Pacific Investments Corp., Ayala Corp., JG Summit Holdings, Inc., SM Investments Corp., San Miguel Corp., Lopez Holdings Corp., and Aboitiz Equity Ventures, Inc. have committed to pour in money in telecommunications, public infrastructure, and real estate to strengthen their hold in their respective markets.

The figure is understated because there are no figures yet for San Miguel’s energy ventures this year, he said.

The biggest spending will be in the telecommunication sector, which accounts for P60 billion. Public infrastructure follows at approximately P57 billion, while real estate spending was pegged at P24 billion, the report said.

Metro Pacific, led by businessman Manuel V. Pangilinan, is spending the biggest amount of P49.52 billion to expand its operations in utilities, toll roads, health care, telecommunication, and mining, it noted. Read more...

By Jo Javan A. Cerda (www.bworldonline.com)

The government is expecting to generate P2.4T worth of investments in the next five years with the launching of the five-year Philippine Investments Promotion Plan (PIPP) which harmonizes all the investment promotion activities of the 11 government investment promotion agencies (IPAs).

Covering the period 2011-2014, the PIPP will serve as the roadmap for all the IPAs to synchronize strategies in investment promotion. It specifies roles and action plans in carrying out IPAs’ promotional efforts.

The IPAs agreed to work on achieving investment growth of 10% in 2010, 15% in 2011-2012, and 20% in 2013-2014.

The plan aims to more than double the current investment approvals to P658B at the end of 2014 or an accumulated P2.4T in five years.

Investments generated by the government’s IPAs in 2009 reached P315.3B from P473.3B in 2008.

The PIPP is positioning the Philippines to become one of the core investment destinations in Southeast Asia in the eight targeted sectors. The key sectors were chosen based on prevailing government plans, their potential as shown by historical data, free trade agreements, and plans of multinational companies.

Aside from improved investment efforts, factors expected to lure projects into these industries include the natural and human resources available locally, existing groundwork like laws and locational plans, and the country’s competitiveness in these sectors.

An integral component of the PIPP is the Japan Investment Market Strategy, which specifies strategic approaches for the IPAs to generate more direct investments from Japan, the country’s top source of foreign investments today.

In the manufacturing sector, the strategy calls for Japanese investments in transportation parts industry like battery manufacturers of hybrid and electric vehicles. The plan has also identified big four Japanese iron and steel manufacturers such as Nippon Steel, JFE, Sumitomo Steel, and Kobe Steel.

The plan recommends that marketing activities be shared by IPAs through joint road shows and uniform collateral materials to ensure that investors are referred to the suitable economic zone and are provided comprehensive information.

(Philippine Business Report - August 2010)

Six property companies led by Ayala Land Inc., Filinvest Land Inc. and Robinsons Land Corp., plans to challenge the unsolicited proposal of SM Land Inc. to develop the 33.1-hectare Bonifacio South lot, the state-owned Bases Conversion and Development Authority said in a statement Monday.

BCDA executive vice president and spokesman Aileen Zosa said the three other companies are Megaworld Corp., Rockwell Land Corp. and property and financial consultancy company Jones Lang LaSalle-Leechiu.

Zosa said the six purchased the terms for the “Swiss Challenge” that will determine BCDA’s joint venture partner in the development of the Bonifacio South property.

“These developments are strong indications of the confidence of private business in the Philippine real estate market and in the Aquino government, as a whole,” she said. Read more...

By Julito G. Rada (www.manilastandardtoday.com)