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Saturday, April 15, 2017 Vol. 12 No. 184
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By Lorenz S. Marasigan
IVEN that the Philippines plays catch-up with its neighbors in Asia and the Pacific in terms of Internet speeds and reliability, any form of added competition in the market will benefit consumers.
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Clamor for removal of foreign-equity provision to level the playing field in telecommunications, improve internet speed Experts and the antitrust body agree that the constitutional provision equity against foreign players in the telecommunications market should be removed, or amended, in order for “real” competition to flourish in the already competitive sector. “Removing the foreign-equity provision can help the market. Restriction in ownership can unnecessarily stifle competition in an industry like telecommunications, as investors with fresh capital and technological capabilities are dis-
couraged to enter the market,” Better Broadband Alliance convener Mary Grace Mirandilla-Santos told the BusinessMirror. Santos, who is also an independent researcher on information and communications technology (ICT) and telecommunications policies, explained that removing or even easing foreign equity will allow more opportunities for investors to come in and compete. “It could also mean that telecommunications would no longer
require a franchise, in effect leveling the playing field, as even smaller players would be allowed to build and operate their own network in any segment of the telecom business or any geographical area, as opposed to getting a nationwide telco franchise,” she added.
Foreign competition needed
For his part, Winthrop Yu, who chairs the Internet Society of the Philippines, said foreign competition will help the country in its
drive to be on a par with its counterparts in the Asia-Pacific region. “Any opening of the telecoms market that will allow more providers at all levels of Internet provisioning would be good for netizens, and may allow the Philippines to finally catch up with its neighbors,” he told the BusinessMirror. In the fourth quarter of 2016, the Philippines was cited by Akamai Technologies as the nation Continued on A2
PHL to remain Asean growth leader–Nomura economist $80.87B
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By Bianca Cuaresma
he Philippines is expected to outperform its Asean peers in terms of growth, as the economy continues to be well-positioned to face potential developments expected to affect the region’s economic performance. In a recent talk, Nomura economist for Southeast Asia Euben Paracuelles said the Philippines— along with Indonesia—is set to post robust growth rates, contrast-
ing the expected performances of Singapore, Malaysia and Thailand in the near term. Among the strengths of the Philippine economy that set the
PESO exchange rates n US 49.6700
country apart from other nations in the region include its relatively small dependence on trade to be able to generate growth, as well as its favorable demographics and elevated level of dollar buffers against potential external stressors. Paracuelles detailed that the demographic differences in the region is one of the main sources of uneven growth prospects in the region, adding he sees a very rapid pace of aging in Thailand and Singapore, as contrasted by the young population of the Philippines and Indonesia. Buffers for policy changes in the global economy, according to Paracuelles, will also be
crucial for the economy’s ability to grow, as rate hikes, especially from the United States, are expected this year. “So that could be negative for some countries overall, because that could lead to capital outflows going back to the US, and being exacerbated by weaker currency for Asean. So, the key is to look at which countries have the ability to conquer that,” Paracuelles said.
High foreign reserve
The economist further said the Philippines and Indonesia have relatively high foreign-exchange reserve buffer compared to Malaysia, Thailand and Singapore.
Just last week the Bangko Sentral ng Pilipinas (BSP) reported the country’s gross international reserves (GIRs) to have hit $80.87 billion at the end of the first quarter of the year. This level was lower by $57 million than the end-February 2017 GIR of $81.44 billion. It is, however, higher by $180 million than the end-2016 level. The Central Bank blamed the month-on-month decline to the outflows arising from the BSP’s foreign-exchange operations and the payments made by the national government for its maturing foreign-exchange obligations. Continued on A2
The country’s GIR as reported last week by the BSP, lower by $57 million than the end-February 2017 GIR of $81.44 billion. It is, however, higher by $180 million than the end2016 level.
n japan 0.4532 n UK 62.0577 n HK 6.3917 n CHINA 7.2087 n singapore 36.3951 n australia 37.2326 n EU 52.6651 n SAUDI arabia 13.2457
Source: BSP (12 April 2017 )