The independent study by Hudson called Talent Tightrope: Managing the Workplace through the Downturn found that almost 74% of accounting and finance professionals say their stress has risen as a result of the GFC, 20% higher than the average.

In addition, 56% of accounting and finance professionals said they valued their jobs more than before the downturn, although half of all employees are seeking a new role.

The study found a slight discrepancy in perceived loyalty; 43% of employers think employees have become more loyal, while only 20% of employees report greater loyalty.

In fact, employers consistently viewed employee sentiment as being twice that as the figures showed in terms of job security, perceived stress levels, morale, or motivation.

“In every aspect of current workplace sentiment, whether job satisfaction, motivation, morale, perceived stress levels or job security employers are clearly unaware of their employees’ frame of mind,” said Mark Steyn, CEO Hudson A/NZ. “For example, nearly half (44%) of the 2,394 employees surveyed indicated that worker morale has plummeted. In contrast, only 26% of the 247 employers interviewed acknowledge that workplace morale has dropped.

Source: Andrea Lavigne

In a statement, BSP Governor Amando Tetangco Jr. said money sent home by overseas Filipino workers (OFWs) grew by 2.9 percent year-on-year to a fresh record of $8.479 billion in the first semester on steady deployment of Filipino workers abroad.

Steady remittances have allowed the Philippines to escape a recession so far this year, and enabled the country to build up its dollar cache amid a global financial crisis.

Moody’s Investors Service earlier raised the country’s credit score a notch on the resilience of these dollar inflows despite weak foreign investments and slumping exports.

In June alone, remittances grew 3.3 percent to $1.498 billion from $1.450 billion in the same month last year.

The June increase, however, is lower than the 3.7 percent in May.

“The continued growth of remittance flows since January this year accompanied by emerging signs of improving global economic conditions have affirmed the positive outlook for steady remittances,” Tetangco said.

The major sources of the money were the US, Canada, Saudi Arabia, UK, Japan, Singapore, United Arab Emirates and Germany.

Tetangco said the sustained growth of remittances was driven by the continued foreign demand for highly skilled and professional Filipinos and wider access of overseas Filipinos and their beneficiaries to banks.

Remittances from sea- and land-based workers posted gains of 4.5 percent and 2.5 percent, respectively.

The deployment of Filipino workers is seen to remain steady in the coming months after the government’s efforts to market local talent in Qatar, Saudi Arabia, Canada, Australia, and South Korea.

The Philippine Overseas Employment Administration (POEA) is also exploring employment opportunities for Filipino workers in Algeria, Chad, Malta and Morocco particularly in the hotel, oil and gas, and technical service sectors.

POEA also reported that the employment of production workers in Taiwan would be facilitated starting August this year through the special hiring program for that market.

The government’s strong support for OFWs in crisis-affected countries has also resulted in the deceleration in the displacement rate, the BSP said.

The BSP is keeping its conservative flat growth target this year from $16.4 billion for this year.

Fitch Ratings Inc. earlier said remittances would decline by 6.8 percent this year.

Remittances contribute 10 percent of gross domestic product (GDP), an indicator of economic performance

Source: Maricel E. Burgonio

Holcim reported yesterday a net profit of P1.2 billion for the April-to-June period, higher than the P742 million in the same period last year. This brought the first semester net income to P2 billion, up 66.7 percent from the previous year’s P1.2 billion.

“It was a semester of exceptional performance and, with the government’s strong focus on infrastructure, coupled with continuing demand for housing, we hope to sustain this for the balance year,” Holcim Philippines chief operating officer Ian Thackwray said in a statement.

While North Luzon still accounted for the biggest volume and demand increased across all regions, Holcim reported it was from Mindanao where growth was “exceptional.”

“This was largely due to infrastructure projects funded by the government’s stimulus package. Robust housing construction activity was also sustained, following strong OFW (overseas Filipino worker) remittances and declining interest rates,” the company reported.

For the second quarter alone, revenues were up by 14 percent to P6 billion from a year ago, outpacing the industry-wide cement demand of 2.9 percent for the same period.

The company’s cash flow, as measured by its earnings before depreciation, amortization, interest and taxes (Ebitda), also jumped 33 percent to P2.2 billion in the second quarter from last year’s P1.6 billion.

Holcim generated revenues of P11.4 billion for the six-month period, up 20 percent from the P9.5 billion reported a year ago. The company also boosted its net working capital, generating P4.1 billion cash flow from its operating activities during the period.

Source: Inquirer

EYARC, which represents a $1.5 million investment for the firm, is a collaboration of faculty and professionals dedicated to helping the next generation of accounting professionals meet the fast-changing needs of the global financial markets. The first phase of IFRS curriculum was released in January of this year. The second phase of curriculum provides additional IFRS resources intended to supplement typical US university financial accounting coursework. EYARC’s curriculum is unique as it includes comprehensive and flexible materials that compare IFRS with US Generally Accepted Accounting Principles (GAAP), including a user guide, lecture notes, presentation slides, homework problems, illustrative disclosures, case studies and international spotlight features.

EYARC held its first national IFRS training session in Cleveland last week for more than 60 faculty attendees from across the country. Key speakers at the training included Ken Marshall, Americas IFRS Markets Leader at Ernst & Young LLP, EYARC faculty members Jana Raedy, University of North Carolina, Chapel Hill; Irene Wiecek, University of Toronto, who recently published an IFRS primer textbook; and Tim Eaton, Miami University, Ohio, as well as retired Ernst & Young LLP partners John Kiss, Nick Kissel, Peter Nurczynski and Bob Riley.

James Wahlen, Professor of Accounting and Chairman of the MBA Program at the Kelley School of Business at Indiana University said, “The EYARC IFRS faculty training was an outstanding experience. Several accounting faculty and retired partners assembled a comprehensive and detailed set of materials that will help me and accounting faculty members all over the country incorporate an understanding of IFRS into our courses. This training is a great example of how practice and academia can partner for the benefit of our students, our teaching and research, and our profession.”

Judy Rayburn, Chair of the Accounting Department at the Carlson School of Management at the University of Minnesota said, “EYARC IFRS training was a great experience that saved me a lot of time and provided many resources that I will easily be able to assimilate into my classes. The training team was focused and fun, seasoned, and internationally knowledgeable.”

Jennifer Blouin, Assistant Professor, University of Pennsylvania Wharton School of Business said, “Making an effort to maximize pedagogical flexibility, EYARC offered faculty extensive training and materials useful for developing IFRS curriculum at both the undergraduate and graduate levels. The class notes, cases, and high level spotlights on convergence issues created by EYARC’s team of academics and practice professionals will be invaluable as I incorporate IFRS into my syllabus.”

Currently, the US is the only industrialized country to not yet adopt IFRS or have a “date certain” for adoption. In the Americas, for example, Canada and South America have adoption dates ranging from 2011 to 2014. In November, the SEC issued a roadmap proposing the adoption of IFRS in the US beginning in 2014. This roadmap is currently open for comment before mandatory adoption is initiated.

“Given the roadmap issued by the SEC and the probability of mandatory adoption of IFRS in the US in the relatively near time frame, we believe it’s a matter of when — not if — schools will need to realign their educational programs to address IFRS learning,” said Ellen Glazerman, Ernst & Young LLP, Americas Director of University Relations. “Even though IFRS is not currently mandated in the US, most of our multinational clients report under IFRS in some capacity, therefore demanding that knowledge from our professionals and the new campus recruits that we hire. We, along with universities, have a shared responsibility in accounting education.”

Catherine Banks, EYARC Program Director added, “Students who have an understanding of IFRS will distinguish themselves in the hiring process and will likely have increased career and mobility opportunities. Learning IFRS requires students to build more critical-thinking skills to better understand the substance of transactions, which should make them better accountants.”

Source: PRNEWSWIRE

“The 2009 IPP opens opportunities for the country to attract more quality investments into industries and services that would maintain and improve the country’s competitiveness and ensure employment for the Filipino people,” the President said in Memorandum Order 299, which she signed on Thursday last week.

Under the Preferred Activities of the 2009 IPP are two lists—the Contingency and Regular lists.

The Contingency List will cover existing projects and/or activities affected by the current global economic crisis that will either retain investments and maintain their number of employees; retain investments and increase their number of employees; increase investments and maintain their number of employees; or increase investments and increase current number of employees.

This list also covers new projects of micro, small and medium enterprises as defined under the revised Magna Carta for Micro, Small and Medium Enterprises. Enterprises registered under this list may be entitled to Income Tax Holiday (ITH), the memorandum said.

However, projects not qualified under the Contingency List include banks and financial institutions; retailing business as defined under Republic Act 8762; all services except those qualified under the Regular List; small-scale mining as defined under Presidential Decree 1899 and R.A. 7076; activities that are restricted/regulated by law or ordinances for reasons of security, defense and risk to health and morals; activities of non-Philippine nationals engaged in small- and medium-sized domestic market enterprises that are not qualified under the Foreign Investment Act as amended by R.A. 8170; non-agricultural basic consumer goods; personal care products; all existing power and infrastructure projects with sovereign guarantee or granted ITH; and other activities as may be determined by the Board of Investments.

The Regular List retains the industries included in last year’s plan.

Source: Ben Arnold O. de Vera

“We expect remittances to see flat growth in 2009 on the back of the very weak global economic backdrop. Nonetheless, we do not expect remittances to contract due to diversified base of overseas workers that are increasingly employed in service/professional industries,” the US investment bank said in its latest report.

JP Morgan said about 65 percent of OFW deployed in the past decade were in service or professional industries that are less economically sensitive and so more resilient with the global downturn.

The BSP projected remittances to grow by 6 percent to 9 percent this year from an estimated $16.3 billion in 2008.

Remittances rose by 15.5 percent year-on-year to $13.707 billion in the first 10 months last year compared with $11.866 billion in the same period in 2007. The BSP had said remittances would be sustained at a monthly level of $1 billion.

Remittances account for more than 10 percent of the economy, as measured by the country’s gross domestic product (GDP). OFW money sent home also has been an important driver for both external financing and consumer spending.

There are about 8.7million OFW in more than 200 countries, with the bulk of remittances emanating from the US, where Filipinos make up 32 percent of the total number.

However, the vast majority of OFW have permanent status in the US, Canada, Saudi Arabia, United Arab Emirates and Canada, allowing them better flexibility to look for permanent jobs in case of retrenchment.

At end-October, the major sources of remittances were the US, Saudi Arabia, Canada, the United Kingdom, Italy, United Arab Emirates, Japan, Singapore and Hong Kong.

Fitch Ratings Inc. had said the Philippines’ foreign reserves would decline this year due to slower remittance flows. In a statement, Fitch said gross international reserves would stay below last year’s $37.1 billion.

Source: Maricel E. Burgonio

Enrile said he would also head the committee on accounts, contrary to Senator Panfilo “Ping” Lacson’s claim that he would get the committee chairmanship.

“I understand that this is the prerogative of the Senate President I will hold it and I will be responsible for the finances of the Senate,” the newly-installed Senate leader told reporters on Wednesday.

“If there’s any error, any mistake, any malfeasance, any malfeasance, I will answer for it. I will go to jail for it if I am foolish enough to commit any misconduct in the handling of the funds,’ he said.

In separate interviews with reporters Tuesday, Lacson and Majority Floor Leader Juan Miguel Zubiri were almost sure that the accounts committee would go to Lacson.

Zubiri was also almost certain that Senator Edgardo Angara would get the chairmanship of the finance committee.

But its incumbent chairman, Enrile, said he would continue to head the committee until the proposed budget for this year is approved.

“Because we’re in the middle of the debate…I have to finish it because I was the one who heard the matter,” he said.

At a hearing by the congressional oversight committee on comprehensive tax reform program, Senator Francis “Chiz” Escudero hinted at his readiness to relinquish his chairmanship of the ways and means committee.

Lacson had allegedly expressed his desire to replace Escudero.

But more than losing his own committee, Escudero was more concerned on the chairmanship of the powerful Senate blue ribbon committee.

If he would be asked, Escudero said he would recommend to the majority to just let Senator Alan Peter Cayetano retain the blue ribbon chairmanship so that he could continue the pending works of the committee.

“My concern is the blue ribbon. Whoever will replace Senator Cayetano as chairman should be as vigilant in investigating anomalies,” said Escudero in Filipino.

“And in truth, if you were to ask me, I will suggest to the majority to retain Senator Cayetano as chairman of the blue ribbon so that he could continue the work he has started of being the watchdog of the Senate against corruption,” he said.

Source: Maila Ager

“The Philippines is in a better position to face this crisis because of fiscal reforms undertaken by the government in 2005-2006,” IMF Resident Representative Reza Baqir told The STAR last night.

“The impact on domestic financial markets of ongoing global financial stress would have been greater if these reforms had not been in place,” Baqir said. “These reforms also provided resources to the government to undertake measures to protect the poor from high food and fuel prices.”

As the local economy braced for the impact of the meltdown in the US market, the IMF official said the government would need more funds and that now is the best time for the government to push for more tax reforms.

Chief among these reforms, according to the IMF, was indexing tobacco and alcohol taxes to inflation in order to generate the revenues needed to finance poverty alleviation programs.

With elections approaching in 2010, the IMF said the window for legislative action would close soon.

Without the economic reforms, the IMF said the damage from the US market meltdown would have been bigger.

The IMF is the biggest supporter of the Arroyo administration’s strategy to undertake targeted and conditional cash transfer program to cushion the impact of the market turmoil and the surge in oil prices.

A reduction or scrapping of the VAT on oil and petroleum products –as pushed by some quarters –would have caused a dramatic erosion in government revenues at a time when public spending is needed more to stimulate the economy.

“The tax effort —tax collections in percent of GDP —remains a key barometer of Philippines’ fiscal health,” Baqir said.

Aside from further reducing Philippine vulnerability, Baqir said reforms would provide sustainable resources for needed spending on infrastructure and social sectors.

“Provision of such public goods is necessary for reducing poverty and raising growth prospects,” Baqir said.

Baqir said the tobacco tax level should be raised then indexed to inflation which, he said, would strengthen the tax effort and bring tobacco taxation in line with other countries.

Baqir said the IMF was also supporting the rationalization of fiscal incentives since it was shown that income tax holidays benefit mostly very profitable firms.

Baqir said measures being supported by the finance department that would replace tax holidays with reduced corporate income tax rate or a low tax on gross receipts, would provide stronger incentives to invest while increasing government revenues.

The IMF said the government should also improve the collection efficiency of Bureau of Internal Revenue and the Bureau of Customs. At the BIR, reforms should cover taxpayer registration, arrears collection, and audits. The BOC also needs to craft and implement a comprehensive reform agenda.
Banks stable

Malacañang assured the public yesterday that there’s no reason to worry about bank closures despite the troubles being experienced by a number of large financial institutions in the US.

Executive Secretary Eduardo Ermita emphasized at a briefing that the banking system is very stable and is capable of fending off external shocks.

Ermita said that insolvency should not be an issue among the local banks which have exposure in the troubled Lehman Brothers.

Bangko Sentral ng Pilipinas deputy governor Nestor Espenilla Jr. noted that the country’s banks, particularly the commercial banks are well capitalized and are well protected from developments in the US.

Espenilla said that a survey of around 60 commercial and thrift banks conducted by the BSP showed that only a handful had accounts with Lehman Brothers.

Espenilla noted that it is the country’s biggest banks that had exposures in Lehman Brothers, three of which already made their disclosures to the Philippine Stock Exchange.

Ermita said that six banks were affected but this would not be confirmed by Espenilla.

Espenilla pointed out that the exposure of the affected banks is far less than their capital bases so that even in a worst-case scenario, they would not be forced to shut down.

He said that the worst that could happen to the affected banks would be a failure to realize their projected incomes.

“It won’t result in negative incomes and we’re not expecting the solvency of the banks to be an issue,” Espenilla said.

“We believe that the banks will be able to hurdle this because of their huge capital base,” he added.

According to Espenilla, the lessons learned during the Asian Financial Crisis in 1997 have buttressed the banking system from problems similar to what is happening in the US.

Since the 1997 crisis, the BSP has required higher capitalization for banks in order to protect the interests of their clients and the entire financial system as a whole.

Espenilla said that the affected banks could even recover part or whole of what they invested in Lehman Brothers now that financial institutions such as British bank Barclays Plc. have decided to buy parts of what used to be a formidable US firm.

Source: Des Ferriols

The recommendation came following the release of its survey results on “Doing Business 2009″ indicating Philippine overall ranking in terms of ease in conducting business dipping by four notches to 140 out of 181 countries from last year’s 136.

The country’s ranking, however, actually moved down by one notch with the addition of three countries in the survey –Bahamas, Qatar and Bahrain.

“We should make these reforms happen –and soon,” IFC Resident Representative Jesse Ang noted, referring to reforms underway including establishing a Web-based registry system, a credit information system to reduce lending risks and implementing the anti-red tape law to ensure speed and transparency in government transactions with the public.

WB Country Director Bert Hofman explained that less cumbersome regulations bring small microenterprises into formal sector and enables increased access to finance for their expansion.

“Research indicates that countries with burdensome regulations tend to have a larger informal sector, higher unemployment, and slower rates of new business formation,” he noted.

For his part, National Competitiveness Council private sector co-chair Cesar B. Bautista expressed confidence their initiatives undertaken to improve local business environment can increase the country’s ranking next year.

The number of days for business was further reduced from 58 to 52 days to 39 days, Trade Undersecretary Zenaida Maglaya noted.

Aside from this measure, Maglaya said 15 National Economic, Research and Business Assistance Center (NERBAC) have been launched throughout the regions.

She said those in Cebu, Davao and Pampanga are fully operational focusing on knowledge management, investment promotion and business licensing, while most newly launched NERBACs are handling business licensing activities.

Likewise, the Board of Investments (BOI) expanded its One Stop Action Center into an Investments Servicing Group to provide the crucial, expanded and upgraded services to a broad range of investors with one department acting as the NERBAC-National complementing the NERBAC regional centers, she added.

Maglaya said the completion of Philippine Business Registry connectivity requirements for Security and Exchange Commission, Social Security System, Taguig, Navotas, San Fernando City of Pampanga and Gen. Santos City is ongoing.

This year’s IFC Doing Business survey measures the following indicators: starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.

The Philippines scored the lowest in starting and closing a business at 155 and 151, respectively.

It rated the highest in terms of trading across borders that examined the number of documents, number of days and cost to export and import.

For the third year in a row, Singapore ranked first in the overall ranking in terms of ease in doing business, followed by the New Zealand and United States.

Source: Adelaida Bulaon

DBP president and chief executive officer Reynaldo G. David said the bank puts premium on LGUs that have viable development projects, produce quality cash flows and efficiently run as a result of good governance.

“It pays to embark on sound governance. Beyond establishing and enhancing the credibility and integrity of our institutions, good governance opens up windows of opportunities. It facilitates access to financing, technical and other needed interventions for us to deliver concrete results vis-à-vis our given mandate,” David said during a recent public governance forum organized by the Institute of Solidarity in Asia.

David added that DBP has P47.6 billion in available funds that can support the various development thrusts of LGUs which adhere to the ethical standards and good corporate values of fairness, accountability and transparency in their own operations. “We’re looking for the right projects and we’re looking for the right LGU-partners,” he noted.

David stressed that the bank specifically focuses on assisting projects in education, health care, infrastructure and environmental protection. Among the select local government units that DBP is partnering with are the city government of Cabanatuan for the construction of public school buildings; municipality of Malasiqui, Pangasinan for the expansion of its public market and implementation of a solid waste management program; and the provincial government of Camarines Sur for tourism development.

He also reported that the Monetization of Internal Revenue Allotment Collectibles for Local Empowerment 2 or MIRACLE 2 program, where DBP is the issue manager, has monetized IRA differential of almost P7.7 billion covering two tranches.

David also said the bank is encouraging LGUs to tap the LGU bond market in supporting their development projects. “This approach gives LGUs the same advantage as a loan and is not constrained by the IRA level. This also gives the added benefit of contributing to the development of the domestic capital markets and promoting long-term domestic savings.” DBP was tapped as underwriter in the issuance of the P140-million Butuan Balanghay Bonds, which financed the construction of the first phase of a one-stop government center in Butuan City.

David also highlighted how good governance has worked for DBP, which has earned local and international recognitions and posted robust financial growth due to its sound corporate governance practices.

“With good governance, it’s always a win-win situation for any organization. Suffice it to say, if good governance worked for DBP then there’s definitely no room for any doubts on the many opportunities it can bring especially to LGUs,” David ended.

Source: Philstar