Filipino workers to enjoy higher tax exemption!

MANILA, Philippines – Filipino workers will now enjoy a P10,000 (US$223.8) tax exemption on benefits they receive starting January 2015.

According to Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz and Finance Secretary Cesar Purisima, President Benigno Aquino III approved a revenue regulation on tax exemptions, under the collective bargaining agreement and productivity incentive schemes.

“According to Secretary Purisima, the increase in tax exemption for those referred to as ‘de minimis’ benefits is just, due to the millions and millions of workers this will benefit,” Communications Secretary Sonny Coloma said on Sunday, December 28.

In a dialogue with labor groups early this year, President Benigno Aquino III raised concerns over the legality of workers’ demands for tax breaks. Labor groups wanted the BIR to exempt "de minimis" or fringe benefits from tax, and impose taxes only on the incremental amount of the negotiated minimum wage for regular workers.

On May 1, Labor Day, Nagkaisa – the biggest alliance of labor groups and workers' organizations in the country – staged a march to air their demands from government, which again included tax breaks.

Malacañang said that this approval was a product of Aquino’s discussions with workers over the past year.

It is estimated that up to P104,225 ($2,333) worth of total benefits will be tax-exempt compared to the current P94,225 ($2,109). About P17 billion ($380.5 million) worth of taxes will not be collected by the Bureau of Internal Revenue due to the increase in benefits. –Rappler.com

Ang PERA ni JUAN MAHIRAP, MIDDLE CLASS, MAYAMAN

Ang PERA ni JUAN MAHIRAP, MIDDLE CLASS, MAYAMAN
-> PINDOT NA!

Jollibee will operate DD @ China!

Jollibee to own, operate Dunkin' Donuts brand in China

ABS-CBNnews.com

MANILA, Philippines - Fast food giant Jollibee Foods Corp. will soon operate popular US baked goods and coffee chain Dunkin' Donuts in China.

In a disclosure to the stock exchange, JFC said its subsidiary Jollibee Worldwide is teaming up with Jasmine Asset Holding Ltd. to form a company to own and operate the Dunkin' Donuts chain in China.

Jasmine Asset Holding is a subsidiary of Asia-based investment firm RRJ Capital.

Under the joint venture agreement, Jollibee Worldwide will own 60 percent of the business, while 40 percent will be owned by Jasmine.

Jollibee and Jasmine have committed to investing up to $300 million in the joint venture company. Of the amount, Jollibee Worldwide will contribute up to $180 million.

Jollibee Worldwide will also be directly responsible for handling the Dunkin' Donuts business' day-to-day operations in China.

Jollibee and Jasmine have also agreed to execute a master franchise agreement with Dunkin' Donuts once the joint venture company is formed.

Under the master franchise agreement, the joint venture will have the exclusive right to develop Dunkin' Donuts in the following territories in China - Hong Kong, Macau, Fujian, Hunan, Jianxi, Guangdong, Hainan, Guanxi, Beijing, Tianjin, Hebei, Shangxi, Chongqing, Guizhou, Sichuan, Yunan, Heilongjiang and Jilin.

JFC said the joint venture will open and operate a minimum of 1,459 shops in China over 20 years.

Dunkin' Donuts is a leading baked goods and coffee chain, with 11,123 stores worldwide. It has 7,941 franchised stores in the US and 3,182 stores in 34 countries.

JFC operates the Philippines' largest food service network, with 2,283 restaurants. It also operates 603 stores abroad.

Dunkin' Donuts is not the first time JFC has invested overseas. It has 50 percent interest in joint ventures for Highlands Coffee in Vietnam and the Philippines, Sabu in China and Pho 24 in various Asian countries.

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MER to refund PHP 5 billion to customers (19 Dec 2014)

Manila Electric Company (MER) will abide by the decision of the Court of Appeals (CA), affirming the earlier ruling of the Energy Regulatory Commission (ERC), to refund PHP 5 billion transmission line loss charges to customers.

CA ordered MER to implement the refund, to be collected from the Power Sector Assets & Liabilities (PSALM), which manages finances & operations of Napocor.

The refund stemmed from double charging of line loss rentals from the simultaneous implementation of a Napocor-MER transition supply contract (TSC) & Wholesale Electricity Spot Market (WESM) price mechanism, both ERC-approved

Don't touch while its hot!

http://www.pinoyinvestor.com/stockpicks/aff/go/pwetka

Some of us will be receiving our 13th month pay soon. Here are PinoyInvestor's Top 5 tips how to best utilize this hard-earned money of yours.

1. Allot a certain portion of your 13th month pay to savings. Start with 20%; better if it can go higher. These savings can be added to your emergency fund or investment fund which will surely benefit you in the future.

2. Start investing. If you haven't started yet, use a portion of your 13th month pay to get your feet wet in the world of investing. You have a lot of options -- Stocks, Time Deposits, Mutual Funds, or Unit Investment Trust Funds. If you're already invested, top up your current investment this month. Consider it a Christmas gift to your future self!

3. Spend on little luxuries. You deserve it, because you worked hard for it this year. So go indulge a little; just make sure you're not splurging too much.

4. Share and give back. Spread the Christmas cheer by giving small tokens or gifts to family, friends, or strangers in need. Their appreciation of your kindness will no doubt be fulfilling.

5. Invest in knowledge. Fast track your journey towards achieving financial freedom by learning the ins and outs of investments. Get a good finance book, attend seminars, or read online resources that can enhance your financial knowledge. This investment will bear lots of financial fruits soon! 

Keep subscribed for more investing tips and guidance from PinoyInvestor!

2014 Winners...

http://www.rappler.com/business/personal-finance/78542-winning-investments-2014

The stock market is one of the major destination for funds that want to grow. As of this writing2, the following are the biggest gainers (percent reflects change as of date):

1. Island Information & Technology, Inc (IS) - 1934.48%
2. Leisure & Resorts World Corporation Warrants (LRW) - 958.00%
3. Premium Leisure Corporation (PLC) - 666.67%
4. Central Azucarera de Tarlac, Inc (CAT) - 634.82%
5. iRipple, Inc. (RPL) - 409.09%
6. Integrated Micro-Electronics, Inc (IMI) - 186.00%
7. Southeast Asia Cement Holdings, Inc (CMT) - 179.38%
8. Nickel Asia Corporation (NIKL) - 175.00%
9. Macay Holdings, Inc (MACAY) - 163.80%
10. D & L Industries, Inc (DNL) - 157.78%

The following are the top 5 fund performers to date (and their corresponding year-to-date return):

1. ATRKE Alpha Opportunity Fund, Inc.2 - 30.88%
2. Philequity Dividend Yield Fund, Inc.3 - 28.30%
3. Philequity Fund, Inc2 - 26.51%
4. Philippine Stock Index Fund Corp.2 - 22.33%
5. Philequity PSE Index Fund Inc.2 - 21.39%

Similar to mutual funds, UITF is also a type of pooled investment. Stock/Equity UITFs are also the winners in the UITF category, outstripping the balanced and bond/fixed income funds in terms of returns5.

The following are the top 5 UITFs from banks and their corresponding return on investment:

1. Security Bank Corporation (SB PESO EQUITY FUND) - 40.70%
2. Philippine National Bank (PNB HIGH DIVIDEND FUND) - 24.55%
3. BDO Unibank, Inc (BDO SUSTAINABLE DIVIDEND FUND) - 22.29%
4. Philippine National Bank (AUP EQUITY FUND) - 21.64%
5. Metropolitan Bank & Trust Company (Metro Equity Fund) - 20.33%

PH is now Baa2, - Moody's

By Louis Bacani (philstar.com)

MANILA, Philippines - Moody's Investors Service on Thursday raised the Philippines's credit rating to Baa2 with a stable outlook.

Moody's cited the country's ongoing debt reduction and improvements in fiscal management, continued favorable prospects for strong economic growth and limited vulnerability to the common risks currently affecting emerging markets. 

"In addition, the Philippines continues to improve its rankings on cross-country surveys of institutional quality, in line with the current administration's emphasis on good governance. At the same time, the central bank has continued to bolster its strong track record of maintaining price and financial stability, contributing to favorable operating conditions for the country's banking system, currently the only system deemed by Moody's to have a positive outlook," the credit rater said.

Moody's said the Philippines is also less reliant on a slowing China, and the country's solid current account surplus provides cushion to shifts in global liquidity conditions brought by imminent normalization of United States monetary policy. 

"Ample onshore liquidity conditions provide a stable funding base for the government, which simultaneously faces lower borrowing requirements due to narrower deficits," Moody's said.

However, Moody's warned that the Philippines may not reach its growth target.

"Although we expect the restoration of a fiscal impulse in the first half of 2015, the government's ambitious growth target may be difficult to achieve in the absence of a meaningful improvement in budget execution," it said.

Moody's likewise upgraded the government's foreign currency shelf rating to (P)Baa2 and the Bangko Sentral ng Pilipinas' liabilities have also been assigned a Baa2 rating and a stable outlook.

According to Moody's, the stable outlook for the Philippines suggests that the risks which may raise or lower its credit rating are balanced.

The credit rater said steady increase in income levels or greater revenue mobilization that would further bolster government finances may lead to another rating upgrade.

Conversely, the rating may be downgraded due to the emergence of macroeconomic instability, which leads to a substantial deterioration in fiscal and government debt metrics and an erosion of the country's external payments position.

In October last year, Moody's raised the country's credit rating to Baa3 from Ba1, becoming the last major credit rater to give the country an investment grade rating.

The rating action was on the back of the Philippines' robust economy, fiscal and debt consolidation, and political stability and improved governance.

let them show YOU..

http://www.pinoyinvestor.com/stockpicks/aff/go/pwetka

How MUCH?

Now that you've chosen the bank of your choice, how much will you put in your savings account?

First things first. 

Know the maintaining balance of the account you wish to have rather than the interest it will pay you. 

Maintaining balance is the amount of money required that you need to maintain on your account or else you will be charged by the bank of below maintaining fee, ouch!

Simply put it this way, everyday your account must maintain 1,000 pesos, so if you withdraw the whole amount, be sure to deposit immediately on the next banking day or suffer the consequence..

Right now, universal banks have high maintaining balance, just look for a savings account that only requires around two thousand pesos. 

You already know what bank I'm talking about don't you?

BTW, don't forget to bring 2 valid government unexpired issued IDs when visiting a bank.

PH growth forecast to 7.1% -SC

Standard Chartered raises Philippine 2014 GDP growth forecast to 7.1%

STANDARD CHARTERED Bank Ltd said it upgraded its Philippine GDP growth forecast for 2014 to 7.1% from 6.7%, supported by a “robust” domestic sector and an improving outlook for exports, but noted that food remains the main source of inflation risk.

In a research report, Standard Chartered added that strong growth has been achieved “despite transport gridlock in Manila and slow progress on infrastructure and public-private partnership (PPP) projects,” suggesting upside once such bottlenecks are addressed.

“Food inflation poses upside risks to inflation, although other price pressures have subsided for now. A potential El Nino weather event may boost food inflation this year but a Supreme Court order against electricity price hikes should contain near-term inflation risks.”

The bank expects first quarter gross domestic product growth to have come in at 6.5% year-on-year. 

http://www.bworldonline.com/content.php?section=TopStory&title=Standard-Chartered-raises-Philippine-2014-GDP-growth-forecast-to-7.1%25-&id=87897

finance quote 3

CHIB earned 1.16B on 1Q 2014, 35% drop..

China Banking Corporation (China Bank, stock symbol: CHIB) posted a net income of P1.16 billion (consolidated, excluding Plantersbank) in the first quarter of the year, a 35% drop compared to the same period last year amid lower trading gains. Core business showed very robust results, with net interest income up 42%, boosted by a 20% increase in interest revenues from loans and a 33% drop in interest expense. Non-interest income, excluding trading gains, grew 21%, driven by increased earnings from fee-based businesses like investment banking, private banking, non-life insurance, and remittance.

Return on equity and return on assets stood at 10.30% and 1.14%, respectively.

While earnings in the first three months were dampened by market volatility and the expected drop in trading gains, the growth of core businesses was very strong. The Bank’s loan portfolio expanded 31% year-on-year to P234.98 billion, driven by strong demand from all customer segments (49% loans growth if including Plantersbank). Deposits increased 29% to P350.93 billion, underpinned by a 51% increase in low-cost deposits (checking and savings accounts or CASA) to P142.26 billion, which now accounted for 50% of total peso deposits.

The Bank’s net interest margin improved to 3.13% from 2.74% despite tough competition and declining interest rates.

“Our first quarter profit was in line with our expectations for this time of the year. We are focusing on sustainable earnings through loans and deposits growth and strengthening other fee-based businesses, and we will work hard to meet our goals for the year,” said China Bank’s Ricardo R. Chua, senior executive vice president and chief operating officer.

As China Bank carried out its expansion program, operating expenses were controlled, rising 4% to P2.52 billion. The cost-to-income ratio stood at 63%.

China Bank’s total assets expanded 23% to P408.04 billion (China Bank and China Bank Savings). Combined with Plantersbank, the increase is 37% to P455 billion in resources as of March 31, 2014, ranking fifth largest among domestic private commercial banks in the country.

Even as the loan book showed healthy growth, asset quality further improved as close monitoring and tighter controls led to a drop in gross non-performing loans (NPL) ratio to 1.92% from 2.79%, with net NPL ratio even lower to 0.10%. Loan loss cover was hiked to 145.70% from 135.82%.

The Bank’s total capital in the first quarter stood at P45.78 billion, equivalent to a tier 1 capital adequacy ratio of 13.69%.

At its stockholders’ meeting last May 8, China Bank declared P1.00 per share or 10% cash dividend for a total of P1.59 billion and an 8% stock dividend, and increased its authorized capital stock to P25 billion.

The rights shares purchased by eligible shareholders are also entitled to the cash and stock dividends.

The Bank successfully raised P8 billion from its stock rights offering, issuing 161,609,878 shares at P49.50 per share. The shares were listed at the Philippine Stock Exchange on May 13, 2014. The fresh equity will be used to fund the growth in the Bank’s loan portfolio, branch network expansion, and technology upgrades. The China Bank Group has 450 branches to date (299 China Bank, 73 China Bank Savings, and 78 Plantersbank). The Bank is also implementing a new core banking system for roll-out in the last quarter of the year.

China Bank is the last major bank to raise capital in recent years. Since the start of its branch expansion program in 2006, China Bank has more than doubled its asset size, market reach, and branch network without having to go back to its shareholders for additional capital, until this years’ stock rights offering.

China Bank is the country’s first privately owned local commercial bank, serving the banking needs of the corporate, commercial, and retail markets since 1920. Aside from organic growth, China Bank enters into strategic alliances to expand and strengthen its operations. The Bank entered into a credit card partnership with MasterCard last year and is launching the China Bank credit cards this year. Most recently, it acquired Planters Development Bank (Plantersbank) to strengthen its presence and support to the SME sector.

http://www.chinabank.ph/news.aspx?title=China+Bank+earns+P1.16B;+posts+strong+core+business+growth+in+1Q+2014

SHE invested EVERYTHING to U without a DOUBT!

What BANK?

Now that you've decided to open a savings account, your next question will be, what bank?

For sure, due to their very visible ads and campaign, you'll come up with...

1. We Find Ways..
2. You're In Good Hands..
3. Make The Best Happen..

But why follow the caravan while you can simply choose a partner that will tell you

"Your Success Is Our Business"

Of course you'll get disappointed by their rates but that's the trend right now, thanks to the upgrade given by Fitch, Moody's and S&P.

High Rate, High Risk!

finance quote 2

PNB, BPI part 2...

MANILA, Philippines - Speculations regarding a revival of talks between Philippine National Bank (PNB) and Bank of the Philippine Islands (BPI) caused the share price of the Lucio Tan-owned lender to rise as much as six percent yesterday.

Shares of PNB rose to a high of P94.95 per share before closing up 3.37 percent at P92.

Stock market pundits gobbled up shares of PNB on the back of renewed merger talks. A total of 3.676 million shares valued at P340.72 million changed hands yesterday.

Merger discussions between PNB and BPI collapsed in December 2012 as the Tan-owned bank opted to further grow its business before merging with a much larger company to get the best possible price for its shares.

Under its proposal, BPI would have taken over PNB at a price-to-book value of about 1.6 times.

Had BPI pulled off the acquisition, the merger of the two banks would have created the country’s largest bank, overtaking BDO Unibank and Metropolitan Bank & Trust Co.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
Earlier rumors said PNB was also among those being eyed by CIMB Group, Malaysia’s second largest lender by assets, as a potential target following failed negotiations with Bank of Commerce.

PNB, after completing its merger with Allied Banking Corp., is seen as a good potential takeover target. Currently the fourth largest lender in the country, PNB has an extensive distribution network of 656 domestic branches and offices and 859 automated teller machines nationwide as of end of December 2013. It has 80 overseas offices and remains the only domestic bank with the largest global presence across Asia, Europe, Middle East, and North America.

Its consolidated assets expanded to P618.1 billion as of Dec. 31 last year, up 87.2 percent from P330.2 billion.

http://www.philstar.com/business/2014/05/09/1320899/pnb-bpi-shares-merger-speculation

DD @ DIVISORIA?!?

MANILA, Philippines—Newly listed property developer DoubleDragon Properties Corp. is setting up a new shopping center in Divisoria, Manila, that it hopes to complete by September this year in time for the Christmas shopping rush.

In a disclosure to the Philippine Stock Exchange on Friday, DoubleDragon said it had entered into a memorandum of agreement to acquire the rights, title and interests of Equitable Development Corp. and Menlo Capital Group over a 5,972-square-meter property at CM Recto corner Dagupan Streets in Divisoria.

The company said that it intends to start the renovation and construction of “Dragon Shopping Center” in Divisoria by June this year in time for the targeted September 2014 completion.

It will have several retail shops, a food court, 1,099 tiangge malls and almost 500 parking slots.

“The project is envisioned to be the gateway to Divisoria and a go-to place for shoppers. The building will be designed for optimum efficiency and will be one of the most modern tiangge shopping malls in the Divisoria area,” the company said.

DoubleDragon said this project would not only boost its own revenue stream but also provide opportunities to hundreds of budding small and medium enterprises (SMEs) that would locate in the new shopping center.

“The company also foresees long-term property value appreciation in this project,” the company said.

This project is undertaken outside of the community mall ventures of subsidiary CityMall Commercial Centers Inc. (CMCCI), which aims to set up about 100 community malls by 2020 under the “CityMall” brand.

DoubleDragon chair Edgar Sia II said Dragon Shopping Center would only be in Divisoria, noting that the tiangge concept is very suitable in the area.

“Divisoria is and will always be the heart of shopping in the Philippines where you can find the best finds at wholesale prices,” Sia said, adding that the company was “set to make the building a landmark and a must-visit place in Divisoria.”

Originally posted: 3:16 pm | Friday, May 2nd, 2014

DoubleDragon expects to breach the P1-billion net profit mark by 2016 with the rollout of this chain of community malls.

By 2020, during which DoubleDragon would have reached its target of setting up about 100 community malls, net profit is targeted to hit P4.8 billion.

Earlier, DoubleDragon also inked a partnership deal with a local group to put up two CityMall malls in Zamboanga City.

CMCCI executed an investment and shareholders agreement with Galleria Zamboanga Inc. (GZI) to form a company that would develop a shopping mall in Tetuan and another in Guiwan, Zamboanga.

DoubleDragon, a joint venture between Mang Inasal founder Edgar “Injap” Sia II and Jollibee group founder Tony Tan Caktiong, expects to invest close to P24 billion to build a chain of 100 community malls in the next five to six years.—Doris C. Dumlao

Read more: http://business.inquirer.net/169501/doubledragon-to-set-up-shop-in-divisoria#ixzz30nqzYcwm
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

Will Smith Said So

Open Now or Never!

People always say that they know how to save but where are they putting their money?

Majority loves to put it in a piggy jar or the very famous Filipino item called "alkansya" and simply smash them when they suddenly want to purchase something. Poor piggy, victim of sudden urge.

For me, the right way of saving is simply to open an account at any bank of your choice.

Start small with a savings account that earns don't ask and learn how to unleash their full potential that will benefit you and your family in the future.

Let me share some tips and tricks that I learned since I started my banking career on my next post and spare piggy for a while..

finance quote

“It’s not how much money you make make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki

motto for your FUTURE

What is MF?

SG invests @ Century Tuna

MANILA – Singapore's sovereign wealth fund has invested in Century Canning Corp ahead of the listing of the latter's subsidiary, Century Pacific Food Inc.

In a disclosure to the Philippine Stock Exchange, Century Pacific said Government of Singapore Investment Corp (GIC), through its private equity arm, and CCC entered into an exchangeable loan agreement amounting to P3.4 billion. The debt carries an interest rate of five percent.

CCC will use the proceeds to finance the expansion of existing subsidiaries including but not limited to Century Pacific, possible acquisitions and entry into new businesses, and other general corporate purposes.

The deal runs for a year but may be extended by both parties.

GIC has the option to exchange both the principal and all accrued interest into 245.5 million issued and outstanding shares of Century Pacific at a conversion price equivalent to the Century Tuna maker's initial public offering (IPO) price of P13.75 per share.

Should the exchange option be exercised, GIC will own approximately 11 percent of Century Pacific. It will not dilute the stake of the food manufacturer's public investors because the conversion shares will be transferred from existing shares owned by CCC.

GIC’s partnership with CCC, and its possible entry in Century Pacific, may be considered a vote of confidence in the Philippine tuna canner and the Philippine economy’s strong fundamentals.

GIC is among the world’s largest sovereign wealth funds with assets under management of well over $100 billion. It was set up in 1981 to manage Singapore’s foreign reserves.

“We are pleased to have a world class investor such as GIC as one of our stakeholders. We look forward to a long term, value-creating partnership with them. The financing provided by this transaction will allow us to support our various businesses, including Century Pacific Food Inc, as well as take advantage of opportunities that arise from our fast growing economy," said CCC president and chief executive officer Christopher Po.

Century Pacific is set to debut in the local bourse on May 6 following the conclusion of its maiden share sale. The tuna canner is expected to raise P3.2 billion in gross proceeds, citing strong demand for its IPO.

Apart from Century Tuna, the company's brands include 555 Sardines, Argentina Corned Beef, Swift, Angel and Birch Tree.

http://www.interaksyon.com/business/85927/singapores-sovereign-wealth-fund-invests-in-century-tuna-maker