|
By Darwin G. Amojelar, Reporter
DESPITE the creditor community’s bullish outlook for the
Philippine economy, Japanese businessmen in the country remain
bearish for the next two to three months, according to the Japan
External Trade Organization (Jetro).
In its latest survey, Jetro said
overall business sentiment of Japanese companies and affiliates
operating in the Philippines remain in negative territory given a
diffusion index of -9.6 in January, worse than the -0.5 in December.
The respondents’ outlook for
the next two to three months also remain negative. Of the five
sectors surveyed, Japanese businessmen in manufacturing were the
most bearish.
Jetro polls companies to measure
year-on-year changes, expressed as diffusion indices, in their
business outlook for the current month and the next two to three
months going forward.
Companies were asked to compare
earnings prospects, supply and demand, inventory, sales prices and
accounts receivable with the same period a year earlier. The current
month and the following two to three months were evaluated
separately in each question.
Replies are limited to
“better,” “same” or “worse” than a year earlier. The
diffusion index is the difference between the ratio of positive
(“better”) and negative (“worse”) responses.
Past Jetro reports showed that
Japanese businessmen in the country had several outstanding issues
with regard to doing business in the Philippines, including
expensive and unreliable electricity, costlier labor, among others.
Bangko Sentral ng Pilipinas data
showed that the Japanese, along with the Americans and Dutch, were
the Philippines’ top three sources of foreign direct investments,
which are monies plunked in to build new or expand existing
businesses and hire workers.
The Japanese businessmen’s
bearish outlook was in contrast to the upbeat forecasts made by
various investment banks on the Philippines, especially after the
government reined in its budget deficit last year, and raised its
economic growth outlook for this year.
The creditor community’s
bullish sentiment is reflected in the stock market, where the
composite index has risen to pre-Asian crisis levels.
On Tuesday share prices closed
higher as investors welcomed the Senate’s approval of the budget
bill for the year, dealers said.
The passage of the bill will now
allow the government to spend more on infrastructure, education and
health this year in a bid to spur economic growth, they said, even
as the deficit continues to fall.
The Philippine Stock Exchange
composite index rose 19.3 points to 3,196.66.
The broader all-share index rose
12.00 points to 1,988.46.
Gainers led losers 57 to 56 with
47 stocks unchanged.
Turnover was 1.5 billion shares
worth P3.2 billion.
“The market cheered news that
Congress has finally approved the 2007 budget,” Rommel Macapagal
of Westlink Global Equities said.
He added that investors also
thought last Friday’s steep correction was enough and that it is
the right time to resume buying.
Under the P1.13-trillion budget
approved by the Senate late Monday, spending on infrastructure will
be increased by P75 billion, Budget Secretary Rolando Andaya said.
Last year the government was
forced to work from the reenacted budget for 2005, when the
opposition-dominated Senate refused to pass the bill.
Since she gained power in 2001
Mrs. Arroyo has only had two budgets passed, in 2003 and 2005, which
has prevented government spending on much-needed infrastructure,
health and education services.
--With AFP
|
