(Published in Focus, newsletter of Financial Executives of the Philippines, January, 12 2012)
Philippine business in 2011 was rife with gains, as well as losses. Some are outright disruptive in business, others are simply entertaining. What matter is that companies and business executives learn from the challenges of last year, and do better this New Year ahead.
I have listed top five newsmakers in 2011 that, in one way or another, touched our professional lives and personal lives.
Top of my list of newsmakers in 2011 is the real estate boom which the country has been experiencing these past few years and will continue through 2012, according to real estate advisory firm CB Richard Ellis Philippines. The surge in the industry is brought forth by expansions in business process outsourcing business, and rise in condominium developments.
Interestingly, the CBRE data and forecasts somehow contradict the CNBC list of the 10 most difficult countries to do business in from 50 of the world’s largest economies, based on a World Bank’s 2011 report, "Ease of Doing Business". The Philippines ranked fourth in the worst place for business. It was the lowest ranked Asian country.
Another big newsmaker was Philippine Long Distance Telephone Co. (PLDT) merger with Digital Telecommunications Philippines (Digitel), which was finally completed in October, despite opposition from various camps. PLDT purchased 51.55% stake in Digitel in what was dubbed by many businessmen as a "landmark share-swap transaction", which cost PLDT P69.2 billion.
In a media statement, PLDT Chairman Manuel V. Pangilinan said: "PLDT is extremely pleased to welcome Digitel to the PLDT Group. PLDT will continue to provide its consumers with the best value in terms of price, quality and range of products and services and we have committed to continue offering 'unlimited' type of services in fulfillment of this promise. In addition, Sun subscribers can benefit from PLDT’s extensive infrastructure and varied service offerings."
Not to be ignored as a newsmaker was Philippine Airlines (PAL) union strike which affected most of us businesspeople. On September 27, PAL canceled all domestic and international flights after its ground workers walked out in what was reported as part of the move of the Philippine Airlines Employees' Association (PALEA) strike. Reportedly, PAL management claimed that many of their equipment had been "damaged or intentionally disabled" by employees who joined the strike.
Prior to this, PALEA's planned "work stoppage" had been going on for months. Among its other grievances, the union opposed PAL management's move to hire contractual workers to fill up vacant positions.
Another newsworthy item was the closing down of Banco Filipino by the Bangko Sentral ng Pilipinas (BSP) in March. The Monetary Board placed the troubled bank under the receivership of the Philippine Deposit Insurance Corporation (PDIC) to assist its more than 170,000 depositors.
This was the second time that Banco Filipino has been shut down. It was closed by BSP in 1985 due to alleged insolvency, but in reopened with few branches in 1990s.
As a kid, I was an active “Happy Saver’s Club” depositor, that’s why it’s saddening to see an institution which was established in 1964, just close down.
Last in my list is the Forbes Asia listing of "The Philippines' 40 Richest" in its July issue. The report said that the net worth of the country's richest "collectively rose to an all-time high of $34 billion, up from $22.8 billion in 2010."
The Pinoy tycoons included in the list are: Henry Sy which topped the list with $7.2-billion, next was Lucio Tan with $2.8-billion, John Gokongwei Jr. placed third with $2.4 billion.
As highlighted by the magazine report, there are some "new faces" on the list: property developer Jose Antonio, at No. 24 with $245 million; Eric Recto at No. 25 with $200 million; and Rebisco founder Jacinto Ng Sr., at No. 35 with $115 million. The youngest tycoon on the list was Edgar Sia II, 34, at No. 40 with $85 million. Sia had sold a majority of his Mang Inasal stake to Jollibee for P3 billion.
I was searching for the name of Manny Pacquiao, but then again, maybe he could have made the list if the controversial fight with Marquez and the much awaited fight with Mayweather were included.
The New Year ahead is full of hope, as various government and private agencies forecast a GDP growth of 5-6%. In the midst of the huge problems in Europe, let’s all help steer the country to greater heights this year.
------------
Reynaldo C. Lugtu Jr. teaches strategy, management and marketing courses in the MBA Program of DLSU’s RVR-College of Business. He may be e-mailed at rlugtu2002@yahoo.com, or visit his blog at http://rlugtu.blogspot.com.
Philippine business in 2011 was rife with gains, as well as losses. Some are outright disruptive in business, others are simply entertaining. What matter is that companies and business executives learn from the challenges of last year, and do better this New Year ahead.
I have listed top five newsmakers in 2011 that, in one way or another, touched our professional lives and personal lives.
Top of my list of newsmakers in 2011 is the real estate boom which the country has been experiencing these past few years and will continue through 2012, according to real estate advisory firm CB Richard Ellis Philippines. The surge in the industry is brought forth by expansions in business process outsourcing business, and rise in condominium developments.
Interestingly, the CBRE data and forecasts somehow contradict the CNBC list of the 10 most difficult countries to do business in from 50 of the world’s largest economies, based on a World Bank’s 2011 report, "Ease of Doing Business". The Philippines ranked fourth in the worst place for business. It was the lowest ranked Asian country.
Another big newsmaker was Philippine Long Distance Telephone Co. (PLDT) merger with Digital Telecommunications Philippines (Digitel), which was finally completed in October, despite opposition from various camps. PLDT purchased 51.55% stake in Digitel in what was dubbed by many businessmen as a "landmark share-swap transaction", which cost PLDT P69.2 billion.
In a media statement, PLDT Chairman Manuel V. Pangilinan said: "PLDT is extremely pleased to welcome Digitel to the PLDT Group. PLDT will continue to provide its consumers with the best value in terms of price, quality and range of products and services and we have committed to continue offering 'unlimited' type of services in fulfillment of this promise. In addition, Sun subscribers can benefit from PLDT’s extensive infrastructure and varied service offerings."
Not to be ignored as a newsmaker was Philippine Airlines (PAL) union strike which affected most of us businesspeople. On September 27, PAL canceled all domestic and international flights after its ground workers walked out in what was reported as part of the move of the Philippine Airlines Employees' Association (PALEA) strike. Reportedly, PAL management claimed that many of their equipment had been "damaged or intentionally disabled" by employees who joined the strike.
Prior to this, PALEA's planned "work stoppage" had been going on for months. Among its other grievances, the union opposed PAL management's move to hire contractual workers to fill up vacant positions.
Another newsworthy item was the closing down of Banco Filipino by the Bangko Sentral ng Pilipinas (BSP) in March. The Monetary Board placed the troubled bank under the receivership of the Philippine Deposit Insurance Corporation (PDIC) to assist its more than 170,000 depositors.
This was the second time that Banco Filipino has been shut down. It was closed by BSP in 1985 due to alleged insolvency, but in reopened with few branches in 1990s.
As a kid, I was an active “Happy Saver’s Club” depositor, that’s why it’s saddening to see an institution which was established in 1964, just close down.
Last in my list is the Forbes Asia listing of "The Philippines' 40 Richest" in its July issue. The report said that the net worth of the country's richest "collectively rose to an all-time high of $34 billion, up from $22.8 billion in 2010."
The Pinoy tycoons included in the list are: Henry Sy which topped the list with $7.2-billion, next was Lucio Tan with $2.8-billion, John Gokongwei Jr. placed third with $2.4 billion.
As highlighted by the magazine report, there are some "new faces" on the list: property developer Jose Antonio, at No. 24 with $245 million; Eric Recto at No. 25 with $200 million; and Rebisco founder Jacinto Ng Sr., at No. 35 with $115 million. The youngest tycoon on the list was Edgar Sia II, 34, at No. 40 with $85 million. Sia had sold a majority of his Mang Inasal stake to Jollibee for P3 billion.
I was searching for the name of Manny Pacquiao, but then again, maybe he could have made the list if the controversial fight with Marquez and the much awaited fight with Mayweather were included.
The New Year ahead is full of hope, as various government and private agencies forecast a GDP growth of 5-6%. In the midst of the huge problems in Europe, let’s all help steer the country to greater heights this year.
------------
Reynaldo C. Lugtu Jr. teaches strategy, management and marketing courses in the MBA Program of DLSU’s RVR-College of Business. He may be e-mailed at rlugtu2002@yahoo.com, or visit his blog at http://rlugtu.blogspot.com.
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