Business Day Special Report

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Part of Business Day Special Report

Title: Business Day Special Report
Issue Date: September 11, 1975
Year: 1975
Language: English
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For greater returns of your investment and long, long service in your operation. - 4-CYUNDER, OHV DIESEL ENGINE Keep your operation great-going all the time with the MAZDA E2700 45-passenger bus. Or get yourself a MAZDA E2700 chassis with cowl or with cab for any special body design and purpose you desire. Of course, you can also avail yourself of the MAZDA E2700 as Aluminum Van, Dropside or flatform for various services. You can rely on any one unit of MAZDA E2700 even when the going gets rough. Because It’s built tough for heavy payload and powerful performance at great economy In maintenance. CHASSIS W/ CAB DROPSIDE FLATFORM Manufactured by: TOYO KOGYO LTD.. JAPAN Assembled and Distributed by Assembled and Distributed by: lifosfll FRANCISCO MOTORS CORPORATION PLANT: Las Pinas, Rizal, Tels. 83-17-26 • 83-18-46 • 83-19-46 SALES: 2233 Pasong Tamo Ext., Makati, Rizal, Tels. 88-19-96 • 88-52-47 • BRANCHES: QUEZON CITY: 12 Quezon Blvd. Ext cor Kitanlad ST., Tel. 61-50-05 • NUEVA ECIJA: Diversion Road, Cabanatuan City, Tel GTS 31-78 • DAVAO CITY: Lanang, Davao, Tels 7-55-05 & 7-66-21 • LEGASPI CITY: 240 J.P. Rizal St., Cabagnan, Tel. 371 • PANGASINAN: MacArthur Hiqhway San Vicente, Urdaneta, Tel 158 • ILOILO CITY: 153 M.H del Pilar St., Tel' 7-72-31 • CAGAYAN DE ORO: 278 National Highway, Lapasan. Tel 4204 -56-48 &EAqLR A & MACHINERIES, Hagan, Isabela • APOLLO MOTOR SUPPLY. Tuguegarao. Cagayan • D. M. NOZAWA Gen Hizon San Fernando Pampanga • ECONOMICAL MARKETING CORP.. Zapote Las Pinas • HOJAS ENTERPRISES Veterans Ave kX^^pa^tVer moto^center'T^i^’ Maga"anef sJ>taba'° • laXA1n^“^ Qmdh a Tn $_t., Singcang, Bacolod City • PETE LIM'S ENTERPRISES, Alunan Ave., Koronadal, VILTRADE INDUSTRIES, M H del Pilar?Dagupa’^city'. ~“'3“....... * TANYU S°NS' INC- Tipol°' Mandaue City. Cebu • SPARE PARTS DEALERS: ARLEX ENTERPRISES, Alunan Ave , South Cotabato • CLAUDIO ESCANO AUTO SUPPLY Rutiian Citv • p a p cM-rconmot-o So.’^bela M0T0R SUPPLY’ Daet' CamarineS NOr,e • NEW LA0AG AUT° SUPPLY' Laoa9 Ci'V • ORLANDO TAN, Naga City . taRlTc YOcTsAU?0PAr" motor SALES. INC., Tabang. Guigumto. Bulacan Ave., ABLE ADVERTISING AGENCY 1 X hursday, September 11, 1975 I • - * 4 SPECIAL REPORT * NET DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN (At 1967 prices in million pesos) Calendar Year 1975* at slower 1% Worldwide economic difficulties will force a slump in the growth rate of the Philippine’s Gross National Product (sum total of goods and serv ices) in 1975. I • •It lower than the in crement of 5.8 per cent posted by the economy in 1974 over the equi valent period in 1973. may reach P42,742 mil lion at 1967 prices. This is higher by 5.1 per cent over the GNP output of P40.655 million in 1974. H t * * SERVICES (6.0%) COMMERCE (3.5%) CONSTRUCTION (14.5%) MANUFACTURING (5.7%) NET DOMESTIC PRODUCT P33.901 P10,246 ^AGRICULTURE I FISHERY & / FORESTRY (6.4%) I TRANSPORTATION, COMMUNICATION STORAGE & UTILITIES (5.4%) P1.21! Utilizing past data on the national income ac counts as reported by the National Economic 1967 prices for 1975 . Development Authority (NEDA), Business Day Research forecasts that the sum total of goods and services produced by, the economy fea 1975 Business Day projects that GNP growth rate at will be at 5.1 per cent over the value of goods and services produced by the^ economy during cal"'idar year 1974. This is 4 I I By sector Projected growth levels for the different sectors of the economy are: agriculture, 6.4 pet cent; mining and quarrying, -52.7 per r nt; manufactu ing, . ' (Continued >n page 4) * BL PROJECTIONS MINING & QUARRYING (527%) P347 OVER A CENTURY OF BANKING Founded in 1851, Bank of the Philippine Islands was estabI lished with a capital of P400.000. Today, Bank of P.l. was I the first to meet the required minimum capital base of I P100 million. I The history of its services is the history of its progress. It I financed the initial development and subsequent expansion __ V of export crops (like sugar, copra, tobacco and abaca), inter island trade and early manufacturing ventures; while assisting the Insular Government by financing public works projects. As a depository of government funds, and having sole authority to issue currency notes, it provided the financial base for trade expansion, extending its branches to Iloilo, Cebu and Zamboanga. In order to survive three foreign administrations, two revolutions, two world wars, the economic recession of the 20's and the Great Depression of the 30's, which all took its toll on our country's economy, the bank had to continue to devise innovative services. The rest is history. •It Today, 124 years later,Bank of the Philippine Islands,with a geographical and financial strength that complemented a restructuring of management speciali zation to include foreign trade and support for small to medium size enterprises, continues to play an elemental Tole in the country's economic scene. Anniversary FOUNDED 1851 IPAGPATULOY ANG KAUNIARAN. MAG-IMPOK SA BANGKO * f A A r Ipagpatuloy ang Kaunlaran. Mag-impok sa Banko. HEAP OFFICE: ESCOLTA. MANILA MEMBER: PDIC - ■ •. ■ . S’ MEMBER: PDIC r 22 YEARS OF BARANGAY BANKING There’s an aspect of Filipino life which has inspired us through our 22 years in banking. It's the spirit of the barangay. And it means cooperation, doing what’s best for others and being neighborly in every way. That’s why we pioneered private branch banking in the early 50’s, to be of service to as many communities as possible. We called our branches Kapit-Bancos to reflect the kind of friendly service we give. And as the Philippine neighborhood grew bigger, and its financial needs increased, we offered as many commercial services as possible for our clients. Today, the barangay spirit lives on at Republic Bank. We are happy to be among those helping promote a healthy economic climate for the new Filipino. Inspired further by the renewed sense of direction of our country, we will continue to do what’s best for the financial security of all our friends. I And we’ll do it with many, many more years of barangay banking. age 4 Thursday, September 11, 19" Construction, as in previous years, will be a major growth area; agricuture will remain the biggest contributor to the net domestic product. construction, cent; transcommunica£ • S. S OMnie/ntv <£ Cx>, ^yvc. per cent; 14.5 per portation, tion, storage and util ities, 5-4 per cent; com merce, 3.5 per cent; and services, 6 per cent. These projections are based on the premise that there will be a sig nificant economic re covery, especially in ex ternal trade, during the last quarter of 1975. Consequently, if the ex pected recovery does not come about, then the GNP growth rate for the year would be lower. • »< •It it’ SARMIENTO BUILDING NO. 2 PASONG TAMO EXTENSION, MAKATI, RIZAL PHILIPPINES TELS. 87-20-81 TO 92 Deteriorating demand for the country’s major export products, as well as a decline in their values combine with an i n c r e asing balance of payments deficits to place the economy in a bind. There is further threat of another in crease in the prices of crude oil by about 10-35 per cent come October. On the other hand, the government’s policy of expanding production levels and its continued emphasis on the gen eration of more eco nomic activities to counteract the growth slowdown in some sect ors will go a long way in sustaining the eco nomy’s growth, thrpngh< out the rest of the year.' ► u THE PHILIPPINE CONSTITUTION, UNDER THE BILL OF RIGHTS, GUARANTEES THE CITIZENS EQUAL PROTECTION TO LIFE AND PROPERTY. Cable Addra wvvmtWnTQ FT-ila er P. 0. Box 226 * A PIONEER INSURANCE COMPANIES PIONEER HOUSE 320 NUEVA NEAR ESCOLTA, MANILA. PHILIPPINES TEL. 40-44-21 Construction • » L*»J I As in previous years, construction will, once again be a major growth area together with agri culture and services. w BD projections place the growth of the cons truction sector at 14.5 per cent in real terms as compared to last year’s Pl,064 million, for the highest sector increment. Acceleration in both* government and private construction will lift the sector’s contribution to the net domestic prod uct from 1974’s 3.3 per cent to about 3.6 per cent in 1975. • *1 u The government’s public works program for the four-year period ending fiscal year 1979 is allocated P38.78 billion. For FY 1976, total al locations amount to P7.93 billion; for FY 1977, P8.77 billion; for FY 1978, P9.25 billion; and for FY 1979, P11.8 billion. The infrastructure program has a total funding of about P23.26 billion or $2.07 billion on foreign exchange (P7.50 to US$1.00) Agriculture Projected net value added of the comlP*'~‘ BY PRESIDENTIAL DECREE, THERE HAS BEEN PROMULGATED AN INSURANCE CODE TO REGULATE THE INSURANCE INDUSTRY. OPERATING BY VIRTUE OF AND UNDER SUCH AUTHORITIES IS OUR GROUP OF INSURANCE COMPANIES THAT GUARANTEE FULL PROTECTION TO LIFE AND PROPERTY. ■ 1 Thursday, September 11, 1975 Page 5 GROSS NATIONAL PRODUCT, NATIONAL INCOME AND NET DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN: CY 1970 - 1975* (At 1967 prices in million pesos) Growth Rates (%) Industry/ltem 1975* 1974 1973 1972 1971 1970 -s i I 1. Agriculture fishery and forestry 2. Mining & quarrying 3. Manufacturing 4. Construction 5. Transportation Communication Storage and Utilities 6. Commerce 7. Services NET DOMESTIC PRODUCT at factor cost 8. Net Factor income from abroad NET NATIONAL PRODUCT or NATIONAL INCOME 9. Indirect raxes net of subsidies 10. Capital consumption allowance GROSS NATIONAL PRODUCT Bit 10,246 347 7,140 1,218 9,626 - 734 6,755 1,064 9,306 730 6,527 925 8,94 686 5,828 1,014 o 8,934 650 5,497 771 ,962 558 5,108 689 o 1970'71 (0.3) 16.5 7.6 11.9 1971 -'72 1972'73 1973'74 1974'75* 1,459 5,379 8,112 1,384 5,197 7,653 1,298 4,972 7,145 1,217 4,594 6,735 1,154 4,357 6,424 1,063 4,149 6,196 8.6 5.0 3.7 33,901 115 32,413 6 o 30,903 (200) 29,022 (382) 27,787 (310) 26.725 (480) 34,016 3,787 4,937 42,742 32,499 3,617 4,539 40,655 30,703 3,367 4,345 38,414 28,640 2,974 3,999 35,613 27,477 3,057 3,656 34,190 26,245 2,697 3,247 32.191 4.0 35.4 4.7 13.3 12.5 6.2 0.2 5.5 6.0 31.5 5.5 5.4 4.8 4.4 (23.2) 4.2 ( 2.7) 9.4 4.2 4.0 6.4 12.0 ( 8.8) o «o 6.6 .2 6.1 Q O 6.5 47.6 7.2 13.2) 8.6 7.9 3.4 0.5 3.5 15.0 6.6 4.5 7.1 4.9 143.0 5.; 7.4 4.5 5.8 6.4 (52.7) 5.7 14.5 5.4 3.5 6.0 4.5 33.72 4.6 4.7 Q P OtO 5.1 * BD projections Source: NEDA agriculture, fishery and forestry sector is at PIO,246 million, a growth of 6.4 per cent over 1974’s P9,626 mil lion. Agriculture will main tain its position as the biggest contributor to the net domestic prod uct. From a share of 29.7 per cent to the total net domestic prod uct, agriculture is pro jected to increase its share to about 30.2 per cent in 1975. Jt AgrTcul tur e’s formance about as win <3 a percome result of government’s intensified technical and financial assistance in the prod uction of palay, corn, sugarcane, bananas and even abaca. * % % * * * Phase V of Masagan 99 which was launched last May will involve more than Pl billion worth of clean prod uction loans under the upervised credit scheme. This program will mean total 88 million cavans of palay assuming that the program yields 80 cavans per hectare. f / / > * X Contributing further to the growth of the sect or is the fertilizer sub sidy which would entail an estimated amount of P350 million and is imed at reducing fertil izer prices by 25 per cent. c Mining Commerce * Most severely affected by depressed world de mand and lower export value for its products is the mining sector. contributes about twothirds of the net value added in mining and quarrying. The first semester of 1975 saw the export value of copper con centrate declining by $141.3 million, or 59 per cent, from export value of $237.7 million during the same period last year. Net value added of the mining sector is pro jected to decline by 52.7 per cent. The sector’s total produce worth P734 in 1974 will noseo an approximate million) this year dive to an P347 A X Last year the mining lector posted a meager 0.5 per cent increment a breath negative over 1973, away from mark. Transportation, Communications ■ - A » The transportation, communication, storage nd utilities sector is projected to expand to Pl,459 million in 1975. This reflects a growth of 5.4 per cent from the 1974 level of Pl,384. The increased pace of investment in the com munication and utility areas will be mainly responsible for this growth. However, the anticipated increase in fuel prices during the later part of the year will hit this sector more adversely than the rest. c / A Commerce is pro jected to improve on its performance last year by 3.5 per cent. Total value added of the sector may hit P5,379 million in 1975. business turnover of the real estate subsector, contributing further to the growth of the com merce sector. However, rising costs of land devel opment will also affect 1 the Clock I the growth of the real estate subsector. Services Net value added in services is projected to hit P8,112 million in 1975, an improvement of six per cent from last year’s P7,653 million. The expanding re quirements of the tour ism industry will in turn push the growth of the services sector. A major indication of this complementary growth in services is the increase in hotel projects throughout the country. This is most pro nounced in the case of copper. The country’s major trading partners early this year an nounced cutbacks in their purchases of the product which alone > Retail and wholesale increments, hand in hand with tourism gains will be the sector’s w prime movers. Increased infrastructure activities will further push the \ \ ’ \ K I MMMcdg MANILA ELECTRIC COMPANY L. ORTIGAS AVENUE. PASIG. RIZAL. PHILIPPINES usi Thursday, September 11, 1975 i Page 6 9 Period 1974 Total January February March April May June July August September October November December 1975 Total January February March April May June * July * August * September * October * November * December * Source: ureau of Mines • Projections n>1 METALLIC MINERAL PRODUCTION 1974 - 1975 Metallic Mineral Production (P000) 3,597,815 285,703 285,644 394,925 453,147 417,896 333,157 296,458 269,634 216,097 212,824 214,851 217,47 e1 2,208,993 207,725 202,622 233,195 222,767 204,435 184.606 177.273 169.940 162.607 155.274 147.941 140.608 Copper Volume Value (metric tons) 225,485 18,159 17,411 21,117 21,221 20,687 17,999 18,388 18,914 17,304 17,805 □o 17,9' 18,482 213,391 18,693 I 18,887 17,23; 18,287 16,53 18,004 17,724 17,684 17,644 17,604 17,564 17,524 Q O A X A * (P000) 2,793,714 228,371 II 225,40 313,653 371,845 340,167 272,354 232,903 207,855 158,305 151,416 148,14 143,290 o 1,088,879 129,869 124,577 138,603 135,582 o 119,45 93,13 83,082 73,026 62,970 52,914 42,858 32,803 Gold Volume (kg.) 16,682 1,409 1,249 1,689 1,761 1,643 1,352 1,414 1,331 1,17 1,212 1,194 1,243 l Q O 14,010 1,310 1,193 1,321 1,258 1,179 1,161 1,143 1,125 1,107 1,089 1,071 1,053 METAL PRODUCTION JANUARY - MAY 1975 - 1974 Any where. • t This is our kind of service. Before and after the sale. Systematic. Long-term. Putting a lot of meaning in preventive maintenance. That's because you buy performance in our products. And we see to it that you get it. JlHas Copco COMPRESSED AIR CENTER ATLAS COPCO (PHILIPPINES) INC. Copper Gold Sih/er Platinum Zinc Nickel (metal) I ron ore Unit MT k9 kg kg MT MT DMT 1975 B9,643 6,292.9 19,386 9 5,186.94 ) 1,998 577,701 1974 98,595 7,460 23,894 16 2,818 162 786,855 I I % increase/Decrease ( 9.1) (15.6) (18.9) (43.7) 84.1 1,133 (26.6) Source: Bureau of Mines |F. - i Ar * Os AVAWA \ • 2293 P. Tamo Ext., Makati, Rizal • Tels. 88-19-66 • 88-37-03 • 87-32-30 Branch Office: Rm. 201 Franco-Moras Bldg., Highway Mandaue, Cebu Liaison Offices in: Davao • Baguio • Cagayan de Oro With current world cop per prices slashed to almost one-half of the 1974 values, and local production for the first five months falling short of usual levels by nine per cent, the contribution to the Gross National Product this year of the mining industry is projected to decline by 52.7 per cent. Business Day Research projects this share at P347 million (at 1967 prices), a 52.7 per cent reduction fro its actual contribution of P734 million in 1974, which, in turn, was a mere .5 per cent increase over the P730 million contribution in 1973. Aside from depressed world copper prices, which caused cutbacks in produc tion, (Consolidated Mines completely stopped copper production as of January this year), mining companies have been groaning under in creased production costs. At yearend, total produc tion of copper is estimated to be 213 thousand metric tons, or some 5.36 per cent, less than the actual produc tion of 225.5 thousand metric tons in 1974. Statistics culled from the Bureau of Mines show that in the first five months of 1975, copper production of 89.6 thousand metric tons is a drop of nine per cent fro last year’s level of 98.6 thou sand metric tons. Value Value-wise, the declining pattern is even more pro•!• •It •It ii t II II It nounced. In 1974, some 98.6 thousand metric tons of copper produced in the first five months fetched a price of P2.79 million. This year’s January to May out put of 89.6 thousand metric tons was valued at only Pl.09 million. This means that in 1974 the average price of one metric ton of copper was P28,345. At pre sent the same quantity is worth only Pl2,147, indicat ing a drastic price cut of 57.15 per cent. World copper prices for the first eight months of 1975 have averaged $0.57 per pound compared with the 1974 average of $1.04, a drop of 43.70 per cent. The lowest monthly aver age so far was at $0.52 a pound posted in January this year. As of July, copper prices have been showing signs of recovery. Quotations have inched up to $0.59 per pound from the January figLast month copper prices averaged $0.60 per pound in New York. The August, 1975 price level is only 22.25 per cent (the lowest percentage drop) lower than the 1974 August price of $0.77 per pound. And the August average is a 2.38 per cent improvement over the month before aver age of $0,587. i h ii II II I I . I ures. II • I A Supply level But as of September 1, 1975, warehouse stocks in II Thursday, September 11, 1975 I r£ New markets - • Production cost •II I I t •I* H'K L ii n •I* ’J uat »n old water on such h - the London Metal Exchange had reached 378,300 metric tons. LME stocks have been continuously rising for the past six months. In the last week of August alone, 14,500 metric tons — the second-largest rise in the market’s history — were add ed and more are expected. Current stocks of 37 thousand tons are more than double the March stock level when the rise began “in earnest,” and seven times the tonnage in store a year ago. Zambia, one of the world’s major producers of copper (650,000 tons pro duced in 1974) has serious ) transport problems and de lays in shipment. This has triggered speculations on a price increase. However, LME’s warehouse stocks sitis enough to douse Cutbacks in copper im ports by Japan have also dampened copper production considerably, but new mar kets have also been tapped with some success. For instance, Philex Min ing Corporation sold 4,000 tons of copper concentrates to China at $0,598 a pound last August 27. The com pany is set to ship another 4,000 tons sometime this month. Philex said its copper sales to China are expected to make up for their loss in revenue resulting from the 15 per cent unilateral cut backs on Japanese copper re quirements. Lower eami Mid-semester earnings of five mining companies have been reported to have dropped drastically from Atlas, Mar intheir 1974 levels. Philex, Lepanto, duque, and Marcopper have reported sales decreases by ah average of 35.01 per cent. Likewise, their incomes were severely slashed by an aver age 75.86 per cent and earnings per share dropped by another 79 per cent. i The factors responsible for the mining sector’s weak performance in the first semester will be the same factors responsible for the year’s decrease in its GNP contribution. Another factor is the higher cost of production. Lepanto Consolidated spent Pl57.88 million or 67.02 per cent more than the 1974 first semester expenses of P94.53 million. Lepanto’s (Continued on page 8) ii ATLANTIC, GULF & PACIFIC CO. OF MANILA, INC. Executiveoffices: 131 Ayala Avenue, Makati, Rizal. Tel. No. 89-10-61 Ml San Francisco Office: Hongkong Bank Building, 160 Sansome Street Branches: Bacolod-Davao I Page o Thursday, September 11, 1975 0* The IMF decision to sell one-sixth of its gold holdings have sent gold prices on an expected nosedive. copper production dropped by 29 per cent, gold by 33 per cent, silver by 28 per cent, and lime by three per cent. Production cutbacks were forced on Lepanto by the high level of concentrate in ventory resulting from ASARCO’s (American Smelt ing & Refining) low smelting rate for Lepanto. Marcopper Mining spent some 16.66 per cent more than its 1974 operational cost during the first semester this year, although its total production and exports of copper concentrates were 36 per cent lower than last year. Atlas Consolidated creased its operating expens es by 11.35 per cent from P309.35 million in 1974 to P344.47 million this year. 4 •t •x Burdened by such a sit uation the mining industry pins its hope on the possible increase in the price of cop per. Export performance inMining exports in the first semester were worth only $96.4 million. This is 59.44 per cent lower than last year’s six-month value of $237.7 million. BD Research projects total export earnings from copper this year at only $142.6 million, or 67.73 per cent less than total receipts of .$393.2 million in 1974. Should demand for cop per remain at depressed levels, Jts share in the total export pie will consequently decline from 14.4 per cent in 1974 to only 6.1 per cent this year. r» 130 110 90 70 50 0 January February March April May June July August Average: / 4 < • rv&ii J New York Copper Prices US cents/lb. / ■V * /. A z M I i —I1 —T" 1 I F M A M J T J * NEW YORK COPPER PRICES US cents/lb. 197B 1074 A I % Increase Decrease \ Xv X > 51.70 57.40 60.70 56.80 54.50 54.30 58.70 60.10 56.78 7.10 119.10 126.50 125.00 108.00 99.00 86.20 77.30 103.52 o 40.64 51.80 52.02 56.34 49.54 45.15 31.90 22.25 43.70 < ■vw* -**■• a ■ f NW ''e Mt' Venacvo»s - \\nWtf\e k'R mA *we'ie' 0\ W\A?.’'S W s M'u"b V oftW \rf V\\c ' •z /z?Z >"•>’ ■ • * ■ * • • * X K - •. * V.s. X‘*:d>x-, **>;•O-zi: >• • ■' Xs*’ : 4 - ’ .VftV. .f S * ssSX?s s M&' arf 1 ,$o\« cCS sV' . job oW'0’ U\\a\Ws erf Sctrfe'sc covv^'i \U A ’ \W. . rC r a. : v.i OU t Vo^ev ,S«W'S' min *■ -Jtfo \\ \4 V VW ... M*. lHc_ n iV.o ... R^'jLftft rtU?l uYJ , V.v.v .. » i v. I® • ' ’^11^ m q\ rtf"s v VW •• • i. Gold A ) World market prices of gold have fluctuated from February’s peak of $185 per ounce to last month’s quot ed average of $161 per ounce. Despite expectations genhigh ’of $198:25 eratetl by Che DecbittBfeY 1974 i. - » «- — — — - _ _ , •» an ounce for the yellow metal, all excitement for gold died down when the expected “gold rush” by Americans failed to reach even fever pitch. By law Americans were allowed to buy and sell gold once again on the mar ket as of end of December. Since 1944 they were barred from doing so. World prices for gold aver age $172 an ounce in the last eight months of 1975. But last month the price dropped to $160 per ounce. The sharp decline fol lowed reports from Washing ton that the International Monetary Fund had decided to sell one-sixth of its gold holdings of 150 million ounces. Profits are to go to poor developing countries; the IMF is to return another one-sixth to donor countries. However, London Metal Exchange traders are of the opinion that although the compromise between the Americans and the Euro peans on bullion within the monetary system seem to rule out new impetus for gold in the near future, na tional and international monetary authorities are to see to it that gold prices do not sink below the present market price of $150 per ounce. The official IMF price is $42.22 per ounce. Another reason is the re luctance of some European countries to return to a system of fixed exchange rates as part of the proposed reform of the world mone tary system. What these countries want instead is the strengthening of the Interna tional Monetary Fund rules on floating of currencies. Floating currencies are those whose relative values II I a change from day to day as dictated by supply and de mand. Fixed parities or fixed exchange rates refer to the pegging of one or more cur rencies to the value of gold # or to one particular currency with a fixed value. Only slight variations are allowed Because of this,..the ^c-'d . bullion price on the Metal Exchange collapses i its lowest point of $148.7i>* an ounce last September 3. Nevertheless, gold price? this year are higher by 14.32 per cent over the 1974 levels. One kilo of the yeb low metal averaged P8,872 in 1974; this year one kilo is valued at P3,872, or P500 more. •It II Gold production 1 ’ It seems then that local gold producers have “guard ed optimism” as to the prospects of gold this year. Gold output so far in the first five months reflect restraints on production. Gold production has gone down by 15.6 per cent from last year’s level. From Jan uary to May, 1974 gold production reached 7,460 kilos valued at P251.6 million. This year gold mined was only 6,292.9 kilos worth P243.7 million. Benguet Consolidated, the country’s premier gold producer, had a total output of 1,935 kilos worth P75.1 million. Philex mined 1,780 kilos of gold worth P67.6 million. For the whole of 1975, total gold production is estimated at 14,010 kilos, a decrease of 16.02 per cent from the actual gold production -of 16,682 kilos last year. II Other metals II * Production of silver, pla tinum and iron ore also declined in the first five months this year compared with last year: silver by 18.9 per cent, platinum by 43.7 per cent, and iron ore by 26.6 per cent. Only zinc and nickel production posted increases, zinc by 84.1 per cent and nickel by 1,133 per cent. L» t * Thursday, September 11,1975 I > r J 7 Peso value will continue to be under slight stress Prices of commodities in $75 will continue to be reltively higher than in 1974. Business Day projections or 1975 indicate that the consumer price index for the Philippines (1965= 100), the barometer that measures the movement of prices based on the basket of goods and serv ices, will average out at 291.8 index points. The in flation rate is projected at 7.3 per cent this year. Last year it was 39.8 per cent. Prices of goods from Jan uary to June 1975 re corded an average monthly decline of 0.4 per cent. The only increment in the price level was registered in May. From 288.5 index points in April, prices pushed the CPI for ( the Philippines to a new high of 289.2 index points 4 (1965=100), indicating an increrfnent of 0.2 per cent. Partly responsible for the positive growth in the CPI (Ph ilippines) was the increase in ^prices of oil products and < sugar effective last May 16. To reduce the impact of the price increase on sugar aud oil products, the Prest h^ied in May Letter of ■ motions No~ 280 allow.ng price discounts on oil products to jeepney oper ators; fishing operators using boats below three gross tons; and rice and corn haulers duly registered with the National Grains Authority as of May 15. This move, ex tended recently to end of September, softened the pressure on prices, and reI I ■ K. V/4 ii r? suited in a slight decline of the CPI in June. Lower food prices Food prices mainly toned down the movement of prices during the first six months of 1975. Starting the year at 329.3 index points (1965=100), the CPI Philip pines for food dropped to 315.7 in June, a decline by 4.0 per cent. In July, the CPI for food was at a higher 316.0 index points. On an annual basis, food prices in June posted an in crement of 3.5 per cent, still comparatively much lower than the 50.6 per cent up swing in food prices last June 1974 over June 1973. With the present world wide food shortage, govern ment planners are giving full attention to the expansion of the country’s food sup ply. Credit support from the Ph ilippine National Bank, rural banks and the Agricul tural Credit Administration continued to push the Masagana 99 rice production program now in its fifth phase. Phase V involves some Pl billion worth of loans to . fanners under the supervised j credit scheme. This ' pected to benefit sr » provinces with a coru^^jd area of 1.1 million hectares. Total rice production is pro jected at 88 million cavans of rice (based on conserv ative estimate of 80 cavans per hectare). • • M. I ft •It (Continued on page 10) PURCHASING POWER OF THE PESO IN THE PHILIPPINES (1965-P 1.00) January February March April May June July August September October November December Source: CB * projections 1973 .5141 .5917 .5882 .5780 .5656 .5473 .5339 .5141 .4826 1974 .3678 .4049 .4000 .4600 .4693 .4596 .4434 .3894 .3848 .3786 .3672 .3562 .3504 .3514 .3529 .3481 .3435 1976 x3£25* .3394 .3432 .3455 .3466 .3458 .3467 .3423 .3416* .3409* .3407* .3396* .33 1 CONSUMER PRICE INDEX FOR THE PHILIPPINES (1965 r 100) 1973 194.5 1974 271.9 1975 291.E January February March April May June July August Sept. October November December 169.0 1700 173.0 176.8 1827 I 187.3 194.5 207.2 217.4 213.1 217.6 225.5 247.0 250.2 256.8 259.9 264.1 2723 280.7 285.4 284.6 283.4 287.3 291.1 294.6 291.4 289.4 28 a 5 289.2 2 8a 4 29Q5 292.7 293.3 293.9 294.5 296.1 Source: CB August-December 1975 are projections ACTION AGAD c ( ★ O’ J * * we get fast collection results we deliver more pesos faster our guarantee is our integrity CABATIT BUSINESS COLLECTIONS SERVICES (CBCS) COLLECTION SPECIALISTS & CREDIT CONSULTANTS REGISTERED & LICENSED — FULL TIME COLLECTION COMPANY 1252-54 Pedro Gil. Paco, Manila P.O. Box 2369. Manila. Tab. 59*84-52; 50-32-33 ♦ QUICK SERVICE • PERSONALIZED * TRUSTWORTHY • REASONABLE RATES • Member: latenratloeel Collectors Ascoclatloe SARMIENTO r We exist to meet and satisfy the changing needs of our customers. We exist to fulfill our corporate obligation to our society, to our own people, and to our stockholders. LThese are our commitments tions. our corporate ambiThe Sarmiento Group of Companies Sarmiento Enterprises, Inc. Sarmiento Industries, Inc. L. S. Sarmiento & Co., Inc. Sarmiento Agricultural Development Corporation Sarmiento Trading Corporation Sarmiento Realty & Development Corporation Thursday, September 11, 1975 Page 10 Intensified activity in all production areas is expected to hold prices within reasonable limits A further boost to rice production is the 25 per cent slash in fertilizer prices for food crops and 10 per cent for export crops as well as strict government control on fertilizer distribution. Credit assistance the » Credit assistance to food producing sector has been provided by Pres idential Decree No. 717 which requires all banks to make available at least 25 per cent of their loanable funds to agriculture. Of the 25 per cent, 10 per cent is to be loaned out to land re form beneficiaries while the remaining 15 per cent may be made available for agricul tural credit in general. Roots, vegetalbes and fruits posted the biggest decline of 23.9 per cent — II K from the January index level of 420.1 (1965=100) to 319.6 index points in July. Fish came second with a seven per cent decline from 369.1 index points in Jan uary to 342.3 in July. For the same period, cereals and eggs likewise posted price decreases — by 0.9 and 5.9 per cent respect ively. Dairy products and • I II is» « Get an on-line order entry system at a low mini-computer price! y * cellaneous food items, how ever, registered an uptrend at 14.3 and 2.2 per cent res pectively. The price index level for clothing posted an increase of only 2.4 per cent fro January level of 366.1 index points to 375.1 in July. During the same period last year, clothing expanded by 15.4 per cent The decline in demand for garments abroad have forced local garment anufacturers to sell on the domestic market This parti’ explains the slow growth g clothing prices in the fin seven months of 1975. Tl prices are expected to r main depressed for the r ainder of the year. The housing index grew at 1.7 per cent, from 148.7 index points in January to 150.4 in July. Impressive declines in price growth levels were also recorded by fuel, light and water. From a growth of 39.3 per cent during the Jan uary to July 1974 period, the increase this year was lower by 2.1 per cent. Mod erate increases in price levels are forecast for the rest of the year, although the ex pected move of the ization of Oil Exporting Countries (OPEC) to increase crude oil prices in the liter part of the year would ojnce again throw all projections awry. II II 1 • ii 11 11 A? M ii r Tian- ’ favors j I — I 4 *Sales Processing Interactive Real-time Inventory Technique Peso value i I Yes, thanks to SPIRIT, you can now have valuable information at the flick of a switch. Just what you need for your business! Information on stock levels, on current assets and liabilities, on past-due accounts receivable on credit authorization, on order entry and registration... even on transactions from day to day. NCR Century 8200 can do it all... from order processing to management reports. At a price you can afford! Each basic system is equipped with the following components: PROCESSOR, CASETTE HANDLER, CRT DISPLAY TERMINAL, LINE PRINTER, DISC UNIT AND A CARD READER (to read in the start of the day routine). So you can .now say goodbye to costly, punched cards and paper tapes. And get immediate response to your questions via a TV screen. Which means on-the-spot accurate decisions for you. And quick, impressive service for your customers! And NCR Century 8200 also has a simulator that allows you to take advantage of a large library of NCR preprogrammed and tested application packages. To learn more about this versatile mini-computer and what exactly it can do for your particular business, contact: • * ' ^■7 NCR Corporation (Phil), Araza Bldg. 8735 Paseo de Roxas Makati, Rizal Tel. 88-19-81 acl-ComptQI"! With prices of goods in creasing at a slower pace than that of last year, the purchasing power of the peso this year will decline also at a slackened pace. J Based on the 1965 rate, the Philippine peso this year is projected by Business Daj Research to average out at P0.3425. This reflects a decline of 6.9 per cent from > last year’s average purchasing power of P0.3678. Although a further decline in the value of the peso is expected this year, the decline is projected to be at a lower 6.9 per cent com pared to last year’s 28.4 per cent. From P0.3394 in Jan uary, 1975, the peso’s value ay contract to P0.3388 in December. The government’s all out campaign to stimulate intens ified activity in all prod uction areas is expected to hold down prices of prime commodities to reasonable levels, and moderate the de cline of the peso’s purchasing <■ II II II wer. power. Rigid enforcement of the price ceilings on essential consumer commodities will further aid in the steady erosion of the inflation rate. These price ceilings are re viewed periodically for pos- . sible revisions based on the price changes in raw mat erials imports. * For instance, the ceilings for filled and reconstituted * milk and domestic sugar were lowered this year, after it was determined that there were justifying reasons for doing so. The purchasing power of the peso can be further affected by tax exemptions and subsidies extended to the private sector. With such government assistance, man ufacturing firms especially are able to control if not altogether deflate operation al costs and price their prod ucts to the purchasing cap abilities of the bigger num ber of consumers. II s; t Thursday, September 11, 1975 Business Day Page 11 UNDER CLOSE CB SUPERVISION Year may end profitably for financial sector Monetary measures geared commercial banks amounted to dampen inflation without to more than $50 million, curtailing the momentum of The foreign equity com ponent was 64 per cent American, 16 per cent Cana dian, 14 per cent Japanese and six per cent British. There are four local to register considerable growth branches of foreign banks in the country, two of which are American and the two others British. Among investment houses, which are permitted by law to accept foreign equity participation up to 49 per cent of the voting stock, a number of foreign institu tions have made equity the economy may still assure a profitable year for finan cial institutions on the Whole. The banks are projected I t this year as a result of the capital build-up program de signed to increase aggregate resources of the commercial banking system. Likewise, monetary re forms placing the financial system under the direct supervision of the Central Bank may contribute signi ficantly to the redirection of placements. These aggregate credit to priority areas. investments are worth about Monetary policies during $20 million, and are divided into 50 per cent American, 23 per cent Japanese, 7.5 per cent British, 2.5 per cent food production and export German and 16.5 per cent oriented industries and other other nationalities. ■J Ii t I the first six months of 1975 were aimed at providing the required financial support to I with government banks, bout P8,411 million, spe cialized government non bank entities contributing P6,748 million. For the whole year, the entire financial system is estimated to expand its re sources to about P80 billion. According to Secretary of Finance Cesar Virata, the program for increased bank capitalization will be com pleted by the end of Sept ember. This is intended to raise the capitalization of the commercial banking system to more than P3 billion, an amount adequate enough to support levels of credit needed for targeted business growth. Moreover, an increase in new equity investment out lets for commercial, savings and development banks is expected before the end of er. li It A the year. The guidelines allow investments of com mercial banks, savings banks and development banks in the capitalization of allied business undertakings like warehousing, storage, leasing, safety deposit boxes and companies engaged in the manageme-nt of mutual funds. •It Optimism Most bankers predict that 1975 might be more profit able than last year. Money market rates were at rela tively lower levels during the first half of 1975 allowing bigger spreads and increased lendings during the period. The government’s issuance of Central Bank Certificates of Indebtedness is intended to siphon funds from urban centers and into the rural areas. Although CB.CIs are 1 used to boost food pro duction and small industries, some time is required before they ultimately enter the credit stream. This time lag results in a temporary credit tightness. As of August 1975, the Central Bank reported that CBCI Series A-3, worth P200 million, had already been sold out. The sale brings the total gross sales of CBCIs to P5.5 billion. In the early part of the year, some tightness in credit was also felt as most banks adjusted their lending port folios to comply with the 25 per cent agricultural loan re quirement. This was, however, re lieved by Presidential Decree No. 717 which liberalized the definition of allowable agricultural lending. Also, the Central Bank allowed the rediscounting of •It J * * agricultural loans under the supervised credit up to 100 per cent at an interest rate of only one per cent per year. Rediscounted loans not under supervised credit are entitled to a loan value of not more than 80 per cent at an interest rate of five per cent per year. More credit is expected to flow into the economic mainstream this year. Dom estic credits of the monetary system are projected to expand at a moderate growth rate of 17 per cent. From a level of P30,919.8 million in December, 1974, domestic credits of the Central Bank and the com mercial banking system are projected to reach P36,198 million by the end of the year. In 1974 the growth rate was 36 per cent. (Continued on page 13) J » I tit ♦ ■» DOMESTIC CREDITS OF CENTRAL BANK AND THE COMMERCIAL BANKING SYSTEM (Million pesos) 1974 1975 January February March April May June July August September October November December v^Purce: CB • projections 1975 * I economic activities so that they could fit into the coun try’s over-all development goals. Thrift banks were given access to the credit facilities of the Central Bank and re discounting facilities for rural banks were liberalized. In the first semester of 1975, the Central Bank also restated the policy of roping -|Off the Greater Manila area from quasi-banking activities by branches, extension of fices and/or agencies of non bank financial intermediaries. It also issued additional guidelines governing inter bank call loan activities of commercial banks. Amendments to the Central Bank charter and the General Banking Act promulgated to put the financial system in order. Consolidation and mergers of I banks were encouraged. Banks were induced to diffuse their ownership by requiring a minimum Pl 00 million capitalization for commercial banks. By end of September this year, which Js the deadline for this CB requirement, it is expected Shat all commercial banks would have complied. As of '•June 30, already 15 commer cial banks had raised their capitalization; and three more banks were working at it, either through consolid ation on by accepting foi reign equity. £T| II I kt II I II II I were f • Foreign equity To attract foreign capital, commercial banks were allowed to bring in a maxi mum of 40 per cent of their equity from foreign sources. As of the first semester of the year, aggregate equity in vestments of nine reporting ♦ I II 22.291.1 22.575.9 23,65a 4 24.401.9 25,120l2 26,22a 1 28,087.7 28,820.8 29,287.5 29.687.1 c I 30,037.4 30,919. I I 31,065.1 32,206.7 32.425.2 32.459.3 32,566. 33,471.6 33,85a 7* 34,438.6* 34,87a 5* 35,31&4* 35,758.3* 36,198.2* Financing companies have likewise realized the need for inviting foreign partners to expand their equity base and permit themselves to be competitive in terms of serv ice offerred and technical know-how. The Philippine Financing Company Act allows financing firms 40 per cent foreign equity. At pre sent six financing companies have foreign equity purely from US sources. Insurance companies were also required to increase their capitalization to at least P2 million. No new in surance firms have been issued licenses since the re quirement to increase the capital base of existing comnies was enforced. Domestic reinsurance is being encouraged especially for domestic risk to save on foreign exchange. As of March 1975, total resources of the insurance system amounted to P3,446 million, an increase of three per cent from the December 1974 level of P3,346 million. For 1975, total resources of the insurance system are pected to reach a level of P3,500 million. An increase in the total premiums earned by insurance companies is also anticipated because of the compulsory motor vehicle liability insurance which has been introduced as a social legislation under the new insurance code. Total resources •2II II II II II II 11 II •lit II II i exThe partnership with the Bank of Nova Scotia of Canada, which has a network of offices and branches all over the world, has broadened the reach of Security Bank. The participation of the Bank of Nova Scotia has also increased the capitaliza tion of Security Bank, making it more responsive to your needs. Come and visit us today. We have many ways to bring you cheers. Welcoming smiles will greet you at Security Bank. Because we're happy to be of service to you - to make your banking con venient and pleasurable. We can advise you on the best ways to the financial plans available or suggest solutions on what ever banking — related oroblems you might have. II •F save, « > As of March 1975 total resources of the financial system amounted to P78,041 million with the bulk of P49,298, or 63 per cent ac counted for by the banking system. The non-bank sector accounted for Pl3,584 mil lion, or 17 per cent. The rest was accounted for by the I I • t • .9 • Avenido Rizal • C. M. Recto • Cubao SECURITY BANK HEAD OFFICE: 6778 Ayala Avenue, Makati, Affiliated with • Divisorio • E. de los Santos Ave. • Ermito 11 izal • Makati • Son Juan • Congressional Ave. • Mandaluyong • Sto. Mesa e Espana • Pandacan • Soler e Pa say • Soler • Angeles City e Cebu City • lligan City • Davao City • Escolto • U S T I Page 12 Business Day Thursday, September 11, 1975 X The major growth area will be the commercial banking system as a result of the capital build-up rule aimed at increasing the sector’s resources. z r - t'. 1 k J r i ▼ L J A A J J r n k. J cnouu T HFIUET T • * M A * MS HI J L j is REmnin y OU’RE T TEHTLU T r 1 L j SPECTRON FLJJI XEROX. INC. Ground Floor,GPL Bldg. Buendia Ave.,Makati,Rizal Tel Nos 87-37-81 to85* 87-99-66 to 68 Regional Offices: Aboitiz Bldg. Juan Luna St., Cebu City, Tel. No. 73 796 Lanang Highway, Davao City, Tel. No. 7 13 15 1 O * Thursday, September 11, 1975 Page 13 ♦ A ■ ALANCE OF PAYMENTS 1974- 1975 (Million US $) I 1974 1 st qu arter 2nd quarter 3rd quarter 4th quarter Total 1975 1st quarter 2nd quarter 3rd quarter * 4th quarter * Total * Projections Source: CB 135.04 6 a 26 134.58 46.1 o 109.90 128.69 135.25 11X85 13X85 51X64 MONEY SUPPLY 1973- 1975 (million pesos) 1973 January February March April May June July August September October November December 1974 January February March April May June July August September October November December 1975 k January February March April May June July August * September * October ♦ November * December * ♦ Projections Source: CB 6.488.1 6,633.0 7,11X5 7.115.3 6.918.3 7,100,7 7.121.5 7,11.1.2 7.405.1 7,203.0 7,25X0 8.152.5 I Q o. 7.524.8 7.766.9 ,297.6 ,471. ,447. o 8,471.8 8/447.8 8/958.7 o o,92X2 9,244. 9,149.0 ,994.5 9,107.4 10,220.1 o Q ,788.9 ,636.2 V Q o 9.348.1 9.499.6 9.527.6 ,606.9 9.238.2 9.886.5 9.974.6 10,06X7 10,150.8 10,23X9 INTERNATIONAL RESERVE (Million U8 Dollars) 1973 January February March April May June July August September October November December 327.31 400.49 462.37 517.27 600.25 648.66 I • 680.36 748.77 75X46 749.97 797.52 875.96 1974 January February March April May June July August September October November December 1975 January February March April May June July * August * September • October • November * December * Source: CB • Projections 921.30 999.13 1,01X74 1,100.46 1,19X72 1,188.95 1.194. • > 1.205,58 1,147.88 1,121.01 1,179.45 1,165.48 1,25X79 1,294.03 1,22X99 1,178.76 1,161.12 1,129.52 1,19X57 1.19X27 1,19X97 1,194.67 1,195.37 1,196.07 (Continued from page 11) A major factor that could expand domestic credits is a projected 19 per cent rise in the credits of the com9 • * mercial banking system — P31,033.9 "million by Decem ber 1975 as compared to the actual December 1974 level of P26,178 million. This will comprise 87 per cent of domestic credits extended by the monetary system while the rest will be comprised of credits of the Central Bank. Domestic credits of the Central Bank are similarly expected to amount to P5,164.3 million by the end of the year, nine per cent higher than the December 1974 total of P4,741.8 mil lion. The growth in the domes tic credits of the monetary system is somewhat below the increasing demands of business which needs more funds to operate at the same level as last year. The subs tantial increase in credits will be partly deflated by pro jected inflation rate of 7.3 per cent for 1975. Money supply By the end of 1975, money supply is expected to increase to P10,238.9 mil lion, .19 per cent higher than the end-1974 level of Pl 0,220 and 16 per cent more than the June 1975 level of P8,788.9 million. Mainly responsible for the moderate expansion of the money supply is the net sur plus in external transactions and increased transactions of the Central Bank and the commercial banking system during the year. The downtrend in the world prices of some of the country’s major export com. modifies like copper and sugar and the high cost of oil and raw material imports are expected to result in lower foreign exchange reve nues in 1975. International reserves of the Central Bank and the forreign exchange holdings of commercial banks are esti mated to reach $1,196 mil lion by the end of 1975. This is a 2.7 per cent incre ment from the 1974 yearend level of $1,165 million and will exceed the June 1975 level by about 5.9 per cent. The movement of inter national reserves during the first quarter of 1975 was generally uphill with the peak level posted $1,294.03 Bullion ruary. By April, the international executed a turnabout and re versed the trend. It was only in June that the reserves started to inch back to $1,192 million. The reserves are estimated to climb up on a moderate scale until the end of the year. Money matket Short-term money market rates are expected to move further upwards towards the end of the year as demand for money usually shoots up wards in December. As of the first week of September, a tight money situation triggered off by the Central Bank’s issuance of P200 million worth of CBCIs nd the speculation that oil remittances may carry on for three weeks sent rates spiral ling to abnormal heights. These are expected to even go higher as the CB’s rediscounting windows face demands of the Christmas import season. The stock market The stock market is expected to react negatively to the new government policy imposing — from January 1, 1976 — a graduated tax on •» capital gains in addition to the one-fourth of one per cent tax on stock trans actions. The new policy, which was announced during the last week of August, stunned the stock market which had enjoyed tax-less capital gains in the last five years. This sent prices falling sharply. Some shares recorded their lowest levels yet in two years. There is still some con fusion on the interpretation of the presidential decree. Falling prices were further aggravated by gloomy pros pects for copper and gold on the world market and the possibility of another oil in crease by next month. To a certain extent, the new capital gains tax is hoped to be acceptable to investors. This tax will be treated as a separate form of taxation and will not be lumped with either corporate or individual income tax re turns. Balance of payments The external sector in 1975 is projected to counter a total deficit of about $514.7 million. The estimated deficit, in the balance of payments position of the Philippines in 1975 is a reversal of the $109.9 million surplus achieved by the country in 1974. enThe main drawback in ex ternal transactions for 1975 will be the dramatic decline * in the balance of trade as a result of the shortfalls in world demand for and prices of leading Philippine export products notably, logs and lumber, copper ore and con centrates, coconut oil and other coconut products. A trade deficit of $876 million is projected for the year with total exports declining by 14.9 per cent and total imports growing by 2.6 per » • •It cent compared to last year’s performance. Central Bank figures show that in the first six months of 1975, current transactions recorded an outflow of $119.1 million. This was a result of the inability of the n on-merchandise trade in flow of P309.7 million to offset the merchandise trade deficit of $428.8 million. Although there was a long-term capital inflow of $21 million during the first (Continued on page 14) TOTAL LOANS GRANTED TO THE AGRICULTURAL SECTOR Commercial Banks 2,194.5 2,51X5 2.551.2 2,827.9 3.261.2 3,404.0 1970 1971 1972 1973 1974 1975* * Projected ♦ (in million pesos) Rural Banks 496.6 609.6 708.5 976.8 1,669.5 1,706.1 Development Banks 64.8 61.4 ,100.0 100.1 255.6 301.6 I ANKING SYSTEM Savings Banks 1.4 .4 1.8 .5 xo a7 'J X Total 2.757.3 3,184.9^ 3,361.5^ 3,965.3' 5.189.3 i 5.415.4 r 4 •I* •It II II •It t BEYOND THE HORIZON We have an unshakeable faith in the destiny of this nation. o •*y\*'*/ * at in Febhowever, reserves • 1 • !• I Its dreams reach far beyond the horizons of this vibrant generation. I * •I 9 -O * . » . » i And in its great determination to make them a reality, it has incessantly harnessed genius and resources. Thus, we and development see its sinews of progress rapidly gathering strength with each passing day. This, we are proud of. Philippine Pacific Capital Corporati has an unremitting commitment to contribute its share — expertise and resources — national progress. to Philippine Pacific Capital Corporation * 3rd Floor, GPL Building, 221 Buendia Avenue Tel. 89-45-61 o 87 04-82 to 89 and 3rd Floor, Concorde Condominium Bldg., 200 Benavides St. cor. Salcedo St., Lsgazpi Village Tel: 86-53-95 o 88 33-84 o 88 24-58 MAKATI, RIZAL AFFILIATES: RIZAL COMMERCIAL BANKING CORPORATION * CHINA BANKING CORPORATION * NOMURA SECURITIES * SANWA BANK * MITSUI BANK ♦ Page 14 Business Day Thursday, September 11, 1975 1 (Continued from page 13) six months of 1975, the short-term capital outflow of $173 million further pulled down the overall deficit in the external sector during the same period to $264.5 million. In expectation of the pro jected decline in trade, the Central Bank’s net com pensatory borrowings for the period from January to June 1975 reached $228.3 mil* lion, representing an increase of 99 per cent from the $114.5 net borrowings of the Central Bank for the same period. The foreign exchange rate during the first semester of 1975 averaged at P7.033 per US dollar. However, the foreign exchange rate started to climb in July levelling at P7.50 in August. * * WE ARE COMMITTED . . . T A - conomy, r OGRESS I \ mEOBUSHR CONSOLIDATED MINING CO., INC. Fifth Floor, Ramon Magsaysay Center Roxas Boulevard, Malate, Manila Tels. 58-91-44; $0-20-51 Loc. 21 to 27 Y ; . ■■■ 4 ? • Q • • * f ’ J 4 d'r ib 4 The DELBROS Group of Companies BANKERS ASSOCIATION OF THE PHILIPPINES ROSTER OF MEMBERS (As of August 26th, 1975) 1. ASSOCIATED BANKING CORPORATION 2. BANK OF AMERICA 3. BANK OF THE PHILIPPINE ISLANDS 4. CHINA BANKING CORPORATION 5. CITIZENS BANK and TRUST COMPANY 6. COMMERCIAL BANK and TRUST COMPANY of the Philippines 7. EQUITABLE BANKING CORPORATION 8. FAR EAST BANK and TRUST COMPANY 9. FEATI BANK and TRUST COMPANY 10. FILIPINAS BANK and TRUST COMPANY 11. FIRST NATIONAL CITY BANK 12. GENERAL BANK and TRUST COMPANY 13. INSULAR BANK OF ASIA and AMERICA 14. LAND BANK OF THE PHILIPPINES 15. MANUFACTURERS BANK and TRUST COMPANY 16. MERCHANTS BANKING CORPORATION of the Philippines 17. METROPOLITAN BANK and TRUST COMPANY 18. PACIFIC BANKING CORPORATION 19. PHILIPPINE BANK OF COMMUNICATIONS 20. PHILIPPINE BANKING CORPORATION 21. PHILIPPINE COMMERCIAL and INDUSTRIAL BANK 22. PHILIPPINE NATIONAL BANK 23. PHILIPPINE TRUST COMPANY 24. PHILIPPINE VETERANS BANK 25. PRODUCERS BANK OF THE PHILIPPINES 26. PROGRESSIVE COMMERCIAL BANK 27. PRUDENTIAL BANK 28. RI2AL COMMERCIAL BANKING CORPORATION 29. SECURITY BANK and TRUST COMPANY 30. THE CHARTERED BANK 31. THE CONSOLIDATED BANK and TRUST CORPORATION 32. THE HONGKONG and SHANGHAI BANKING CORPORATION 33. THE MANILA BANKING CORPORATION 34. THE PHILIPPINE BANK OF COMMERCE 35. TRADERS ROYAL BANK 36. UNITED COCONUT PLANTERS BANK » A i V DELBROS TRANSPORT CORPORATION -ii l I I ACD. INC. CALTEX FLOATING STATION DELGADO BROTHERS MOTEL CORPORATION DELBROS TERMINALS CORPORATION DELBROS TRADING COMPANY Dynamic... Diversified... Growing. Find a world of service ... liquid or dry bulk cargo transport... warehousing ... shipyard, ship repairs, drydocking... household goods moving, freight for warding by land, sea and air ... hotels ... tourism ... trading... equipment servicing, leasing ... securities management, real estate, condominiums ... and the world you will find is with the Delbros Group of Companies. DELGADO BROTHERS, IMC. tartn kta. tat Am f. I. tat 2tt, tta, MUtac T< fcr 47-15-41 • 4M»-«1 Ctfto: MUMS • T«tac HI 33S4 General Managers for: DELBROS TRANSPORT CORPORATION • DELBROS TERMINALS CORPORATION •DELBROS TRADING COMPANY • DELGADO AIR CARGO • ACD, INC. • CALTEX FLOATING STATION • DELGADO BROTHERS HOTEL CORPORATION • DELBROS TOURISM DEVELOPMENT CORPORATION •DELBROS SHIPYARD CORPORATION * a? k ♦ Thursday, September 11, 1975 ) i * ) I Barring unforeseen cir cumstances, Philippine trade in 1975 is projected to suf fer a deficit of $876.0 mil lion. Mainly responsible for this huge setback is the de clining demand for Philippine export products as a result of the general slowdown in the economic activities of almost all the trading part ners of the Philippines. I II Trade As a result of the slump in demand for the country’s traditional export products, total trade earnings for 1975 are projected to reach $2,318.8 million, less by 14.9 per cent than last year’s receipts of $2,725.0 million. The first semester export performance was lower by 12.1 per cent compared to the same period in 1974. January’s export level was at a low $174.2 million. Trade peaked to $234.2 million in March, but a downswing started the following month until a record of $158.9 mil lion was posted in June. Total exports for the re maining six months are pro jected to be about $1,127.8 million, 17.6 per cent lower than the export revenue in the equivalent period last year. II * • •II I II II •It II ►* ii Top exports The country’s traditional tdp ten exports contributed 74.8 per cent to the total export earnings of $1,191.3 million in the first semester of 1975. Declining earnings of logs and lumber, copper ore and concentrates, and coconut oil are expected to continue in the remaining months of the year although a recovery is possible as the economies of the country’s major trad ing partners start to pick up as predicted towards the final quarter. Sugar Projections of Business Day Research indicate that in spite of the erratic price movements of sugar, this top-earning commodity will contribute some $893.7 mil lion, or 38.5 per cent, of the total expected earnings during the year. This assures sugar the number one posi tion in the list of the coun try’s top foreign exchange earners for 1975. While last year’s spot price for sugar in New York traced an upward pattern and even exceeded 65 cents per pound at one time, the 1975 price trend was more erratic, bobbing up and down and finally settling at a low 17.10 cents per pound last August 29. A rise in the price of raw sugar may be possible during the later part of the year as Brazil’s production for the 1975/1976 export season is expected to decline as a result of the bad weather in that country. Prices may likewise be af fected favorably by the re cent report of frost damage to Argentina’s cro drought conditions Europe’s sugar beet crop. To fill the gap left with the loss of the United States as the top market for sugar the search for more sugar markets is going on. ii • 1 • • op and affecting •K ii I £ II II II J I Romania recently informed the Philippines of its desire to purchase 50,000 tons of domestic sugar for delivery from September 1975 to January 1476. Also, the Phil ippine International Trading Corp, has scheduled export ation of sugar to the People’s Republic of China. Copper concentrates Drastic declines in its for eign exchange earnings , this year will dislodge copper concentrates from its usual second-place position among the country’s top ten ex ports and rank it a notch or two lower. The export value of cop per concentrates will likely decline by 63.7 per cent as earnings moved from $393.2 illion in 1974 to a pro jected $142 million in 1975. As demand for copper re mains at low levels, copper’s share of the country’s total exports is projected to de cline from 14.4 per cent last year to 6.1 per cent this year. However, uptrends in per prices have lately spark ed optimistic hopes in the mining sector. Spot prices of copper are currently around the $0.60 per pound level which is 13.06 per cent high er than the $0.5307 per pound level last June. If the trend continues, mining may not be as depressed a sector, after all. Coconut oil Coconut oil is projected to take over as second high est dollar earner in 1975. Like most of the other ex port commodities, crude co conut oil is likewise project ed to have less export earn ings — by 58.9 per cent than last year’s $380.7 million. The estimated coconut oil export receipts of $156.4 illion for 1975 is 6.7 per cent of the total projected export earnings of the coun try for 1975. Logs and lumber Low world demand and e phasing out of the ex portation of logs and lumber by January 1976 has con tributed immensely to the low export revenues of this commodity area. The pro jected foreign exchange re ceipts of $148.3 million from logs and lumber in 1975 is a drop of 39.8 per cent from the previous year’s tally of $246.4 million. Copra While copra exports are projected to increase in volume, depressed prices, however, will deplete earn ings for 1975. Export prices of copra are expected to average at 16 to 17 cents per pound during the year. Total copra earnings for 1975 are projected at $137.6 illion, which indicates only a slight decline of 1.6 per cent from actual earnings of $139.8 million in 1974. Imports Increased production, import restrictions and im port substitutions coupled with the expected economic upturn in the Philippines’ traditional export markets will necessarily dampen im ports this year. For calendar (Continued on page 16) I ay katulong sa pagpapau I V I Y KORPORASYON NG PILIPINAS SA SEGURO NG LAGAK ng bayan Magimpok sa Bangko I I I ii 11 I ii II II I II II II 'I 4 fit SYMBOL OF CONFIDENCE” The Philippine Deposit Insurance Corporation is government entity created by law to protect bank depositors and to safeguard the nation’s money supply. Under Republic Act No. 3591, as amended, PD1C insures individual depositors up to PIO,000.00 of their balances in every PDIC-insured bank. WORKING WITH YOUR BANKS FOR THE NATION’S PROGRESS ii J • • Page 16 usinasa Day Thursday, September 11,1975 I 0 The performance of the country’s traditional export products will depend on whether or not the OPEC will raise crude prices next month year 1975, imports dollar outflows for imports are projected to go up by only 2.6 per cent to $3,194.8 mil lion. Importations so far in the million for 1975 will surely move upwards. 1975 the Philippines rang up a deficit of $23.7 million II PHILIPPINE TRADE WITH COMMUNIST COUNTRIES JANUARY TO JUNE 1975 (F.O.B. Value) Country USSR People's Republic of China Yugoslavia Poland Romania North Korea Czechoslovakia Hungrary TOTAL RP Exports to Communist Countries $8,177,617 6,382,203 50,942 48,229 14,583 $14,673,574 RP Imports from Communist Countries $ 46,850 27,253,304 4,726,794 11,873 4,597,922 1,148,066 506,614 61,169 $38,352,592 Trade Balance $ 8,130,767 - 20,871,101 - 4,675352 36,356 - 4,583,339 - 1,148,066 506,614 61,169 $23,679,018 I II the same period last year. The single biggest factor which would determine actual disbursements for im ports is the possible increase next month of crude oil prices. Since the biggest im portations are of mineral fuels, lubricants and related products, an increase in oil prices will definitely push importations to high levels. However,, if there are no oil price hikes during the second half of 1975, lower increments and possibly even record declines in monthly import values can be expect• I ii tit ea. A r million. On the other hand, a dec line in local demand for base etals may reduce import payments for this com modity to $106.3 million, or about 64 per cent from last year’s tally of $295.7 mil lion. II II II II II in its trade with communist countries. Total exports stood at $14.7 million while imports amounted to $38.4 million. China, the top trad ing partner of the Philippines among the communist bloc, accounted for 71 per cent of Philippine importation and absorbed 44 per cent of total Philippine exports. Crude and partly refined petroleum products formed the bulk of Chinese exports to the Philippines during the first semester of 1975. This amounted to $15.1 million and makes up 56 per cent of total Chinese exports of $27.3 million to the Philip pines, Rice exportations of $11.5 million and dairy pro ducts of $75,451 made up the rest. Vegetable oils formed the bulk of Philippine exports to the Republic of China in the first half of 1975. This amounted to $4.4 million, or 68 per cent, of total Philip pine exports to People’s China. On the other hand, trade ith Russia during the first half of 1975 resulted in a trade surplus of $8.1 million dollars for the Philippines. Exports during this period amounted to $8.2 million against Russian imports of only $46,850. The Philippines also regis tered a surplus of $36,356 in its trade with Poland for the same period. Trade deficits suffered by the Philippines in addition to that of People’s China, were with: Yugoslavia ($4.7 million), Romania ($4.5 million), Czechoslovakia ($506,614), Hungary ($61,169) and North Korea ($1.1 millioji). > A much bigger volume of trade with communist countries can be expected for the rest of the year considering the government’s increased efforts to forge closer trade ties with the communist/ socialist bloc. Vt •It II •It I J A II II •It. Trading partners As in the past years, the major destination of Philip pine exports this year are: >1 Mineral fuels, lubricants and related materials are pro jected to account for 24.5 Japan, the United States, the per cent of the total project ed import payments for 1975, assuming that there is no oil price increase. How ever, if the October increase in the price of OPEC oil materializes, projected im port disbusements of $783.5 ► I * » w * II 4 Liqun sale le y • r; MARINE MIDLAND OVERSEAS CORPORATION INDUSTRIAL FINANCE CORPORATION MARUBENI CORPORATION One of the country's largest consumer finan cing companies RIZAL COMMERCIAL BANKING CORPORATION One of the Philippines' largest commercial banks 'One of Japan's biggest conglo merates Source: NCSO Four big and prestigious companies are keeping us company. They're your guarantee that leasing is a sound business practice. Subsidiary of Marine Midland Bank, 12th larg est bank in the United States ♦ Four big companies have invested in us. All reputable financial institutions. They know that leasing is a sound business practice. Because it offers many practical benefits: *Conserves working capital which other wise would be tied up in owned assets. * Liquifies fixed assets. Through the sale-lease-back arrangement. * Preserves borrowing capacity. Because leasing affords off—the—balance—sheet financing, rentals are not reflected as liabilities. * Reduces tax payments. Rentals of leased assets are deductible expenses. Before purchasing any fixed asset, think of the advantages of leasing. Think of I FC Leasing and Acceptance Corpora tion. 1 ¥1 ll I t vv il •It w •It •It K'I I •!• II » » z A »• II II EXTERNAL TRADE 1973-1975 (F.O.B. value in million U.S. dollars) Balance of Trade 1973 January February March April May June July August September October November December 1974 January February March April May June July August September October November December 1975 January February March April May June July * August * September * October * November • December * Source: NCSO * projections Imports Exports I♦ i * Q O 1,596.6 4.9 94.2 101 112.3 120.2 144.1 138.6 1609 151.2 158.2 158.6 164.5 1,886.3 93.6 125.2 162.0 168.6 159.9 1723 179.8 167.0 135.1 177.0 157.5 139.2 289.7 8.7 31.0 53.2 56.3 39.7 28.2 41.2 6.1 ( 16.1) 18. ( 1.1) ( 25.3) ) I 3,114.9 193.7 204.7 225.5 274.5 290.9 251.0 338.8 2,725.0 173.2 218.4 210.4 250.2 275.2 228.3 306.5 256.2 277.2 286.0 209.9 215.9 206.2 209.6 257.5 231.1 24a 0 (389.9) ( 20.5) 13.7 ( 15.1) ( 24.3) C 15.7) ( 22.7) (1229) (100.3) ( 46.6) ( 19.7) ( 54.9) 39.1 * 3,194. 307.4 230.0 265.7 290.7 285.4 275.4 262.1 260.1 257. 255.6 253.4 251.2 I I 2,31&8 174.2 189.0 234.2 222.7 212.3 158.9 194.6 191.9 189.3 186.6 183.9 181.2 (876.0) (133.2) ( 41.0) ( 31.5) ( 68.0) ( 73.1) (116.5) ( 67.5) ( 68.2) ( 68.5) ( 69.0) ( 69.5) ( 70.0) *<• I ♦ S-12P P3.485. S-12M 1 I 1 S-80S 470. P5.680. * Packaged Price for all three: Cost savings: OFFER FROM AUGUST 25-SEPTEMBER 30 ONLY I o 0 in CT) o O • V 1 CEf TRIFUGAL JUGZ>R LOGS& LUMBER COPRA COPPER CONCENTRATES NUT OIL, CRUDE 1974 * projections 1975 INTERADS S-80S 5-Digit Pocket Calculator W/Automatic Constant (W/Adaptor) Officio DIVISION Q division of Gu«voro & Sons,Corp. 250 Buendia Ave., Makati, Rizal • Tel. Nos. 87-12-11 87-13-11, 85-58-41 to 4$, 88-64-57 Metro Dealers: ACC Marketing - Tels. 20-30-51 to 53 Loc o Varied Ventures - Tel. 86-85-83 Sampaguita Appliances - Tels. 98-70-66; 98-70-41 to “U 6 E ■o < o a> Q* < Thursday, September 11, 1975 Page 18 business x OUR CREED IS PUBLIC SERVICE AND ACTIVE INVOLVEMENT IN THE COUNTRY’S PROGRAM DEVELOPMENT. I 1973 January February March April May June July August September October November December 1974 PRINCIPAL PHILIPPINE IMPORTS 1973 - 1975 (f. a b. value in million US dollars) Machinery other than Electric Mineral Fuels, Lubricant and Related Materials ase Metals 187.6 296.0 150.4 1 J 12.2 11.6 11.2 17.8 16.1 14.5 110 19.4 16.7 117 17.5 117 1 . 653.4 19.6 21.1 25.6 19.6 24.4 24.9 211 29.4 329 213 24.7 27.3 4213 4.9 16 9.9 123 10.1 121 11.1 17.6 16.0 1 16.4 15.7 o o O.o 2917 Vitarich. A rich life for the Filipino. MARKCOM Arrastre Contractor South Harbor, Port of Manila January February March April May June July August September October November December 1975 January February March April May June July August September October November December July to December are projections Source: NCSO 9 i 24.6 48.4 518 729 68.6 31.8 26.5 317 30.4 29. 29. 5.1.0 24.8 o o o 317 'W 'i1 64.3 67.3 45.3 59.5 70.8 29.6 783.5 829 41.6 57.5 69.0 76.2 618 64.5 610 616 66.2 66.8 67.4 A 1973 January February March April May June July Au gu st September October November December 1974 January February March April May June July August September October November December 1975 January February March April May June Ju ly August September October November December July to Dec. 1975 are projections Source; NCSO * 45.3 39.2 31.2 45.1 39.6 35.9 627.1 22. 21 31.3 27.9 35.7 23.6 24.1 18.0 144 127 106.3 48.0 414 49.2 523 54.0 516 525 53.7 54.8 56.0 57.2 514 12 23.6 116 12.6 Q O di idk 9.9 11.6 7.7 6.3 4.9 3.5 2.1 17 Centrifugal Sugar 274.7 21.3 27.6 33.7 35.3 31.5 37.4 29.2 16.6 6.6 3.4 14.4 17.7 737.4 t 1 19. 38.5 51.2 49.6 99.7 67.5 21.2 31.4 58.3 97.5 80.5 122.2 3917 Q O 49.6 78.1 98.9 716 72.0 317 77. 1 I 79.2 16 2.0 3.4 84.8 PRINCIPAL PHILIPPINE EXPORTS (f. o. b. value in million US dollars) Coconut Oil, Crude Copper Concentrates Logs and Lumber Copra 275.2 151.1 339.0 I 165. o 12.2 13.5 24.5 23.4 20.3 23.3 29.9 212 26.6 310 12.1 24.2 393.2 18 12 12 ao 14 121 14.2 18.6 5.7 318 21.0 110 380.7 14.8 22.1 37.8 416 32.9 218 2a2 34.7 210 26.7 26.5 19.6 246.4 5.8 13.3 9.2 12.7 16.7 11.7 17.3 12.3 12.9 221 20.0 11.1 139.8 I 34.8 39.4 311 50.6 413 34.5 39.4 215 31.9 20.5 219 16.4 1426 221 322 119 417 25.3 320 43.6 411 24.4 40.5 319 21.1 1514 25.3 21.5 27.8 30.3 27.1 23.9 221 21.2 14.5 122 7.6 23.1 12.7 2.1 1.6 2.6 10.4 17.7 9.3 9.0 18.6 * Q 13.3 12.8 21.5 18.1 119 118 11.2 9. I 7.0 I.4 5.6 4.2 19.2 19.3 17.1 21.2 21.1 17.4 12.1 110 7.9 I 5i 3.7 1.6 11.1 148.3 14.6 11.7 14.0 110 111 13.7 11.7 11.3 10.9 115 10.1 9.7 1 15.5 137.6 18.3 8.6 15.5 20.7 10.5 2.1 10.9 10.6 10.3 10.0 9.7 9.4 c Thursday, September 11, 1975 Page 19 ■r <• Construction growth Will most impressive of all sectors The construction sector will provide the much need ed push for the country’s economic growth in 1975. Projections of Business Day Research place the growth of the construction sector at 14.5 per cent (1967 prices). Although slightly lower than the 1974 expansion of 15 per cent, construction growth in 1975 will still be the most impresive of all the sectors of the economy. Aggregate value of goods and services to be produced by the construction sector this year is estimated at million (at 1967 prices), representing an in crement of P154 million from the level of Pl,064 mil lion registered last year. 3 Forecasts on the perform ance of the sector in 1975 - . are heavily dependent on the assumption that there will be no marked increase in the prices of oil and oil-based products during the remain ing months of the year. i I ci ii ■> . vpr,218 II t J II II I II II Infrastructure A big boost to construct ion activities during the year H is the increased government funding of its infrastructure program. The government’s public works program for the fouryear period ending with FY 1979 has a budget of P38.78 billion. Infrastructure has a total funding of P23.26 bil lion in local currency and P2.07 billion in foreign ex change. Capital investment re quirements of the infra structure program in FY 1976 amounts to P8,009.7 million ($1 = 7.50), peso requirement is P5,603.8 mil lion that of foreign ex change, $320,786 million. Of the total infrastructure investment requirements of FY 1976, transportation and telecommunication are the main beneficiaries with 30 per cent or P2,435 million. Allocations are: Pl,819 mil lion for highways; Pl68 mil lion for airports and airways; P245.9 million for port works; P161 million for rail ways; and P40 million for telecommunications. Next biggest is power and electrification with an al location of P2,074 billion. ii I i ii 41 II II •I*: ii II II II 11 II II II Power has Pl,654 million and rural electrification, P420 million. Total investment require ments of water resources foi FY 1976 amount to about Pl ,963 while social infra structure has a programmed cash requirement of P735.9 million. P800 million are ear marked for miscellaneous and other special projects. Roads To accelerate the eco nomic growth and thereby improve the living conditions in the rural areas, the Dep artment of Public Works scheduled the release of P60 illion starting last August. This amount is appropriated (or the construction and improvement of farm-tomarket or barangay or feeder roads in the rural areas. These roads will facilitate the transfer of farm produce from the production areas to the market centers. The prominence of eco nomic activities in the cons truction sector can be seen from the fact that while almost all industry areas resorted to employment cut(Continued to page 20) II * I II I II Like the sea. Reclaimed by man. Ecologically planned. Laid out to suit man's needs. This is the Manila Cavite Coastal Road & Reclamation Project. Sixteen hundred hectares of land. A monument to man’s ambition. And his creativity. To live. Better. Soon . . . in 12 years. w ii ii II II II II II I M II II II II II / a. • - M II X f* J V '’A" . '•/' Category ■ ■ 4 X •>s I •V : ft •:< «s n ** '1 1 r JA'' Ms ■-■'Z r KZ;?.' V.V. V., s 'A> s&:?i > 'x<y> '1 -Z-’fi > << * * z (< < • • **• • X' . 4BT' * •Jv’ • • • * • •. I z V ?'.>i ’zS .* V. ' V. '«« A Z , • rr J T, • * •X-.v.• • * • • >X ?'.< a , « « a » • a • • / • • * • • z»? ¥ ■i A ; * 1 * u £ ’ *• >> • * • ii <-y SfcvX 3/ •ar • «* • « r •;»v . ** ■ • « a z i I I ✓: ANNUAL INFRASTRUCTURE PROGRAM, FY 1976 CAST INVESTMENT REQUIREMENT (In thousands) ANNUAL REQUIREMENT Total In ($ - P7.50) (2 & 3) Local Currency P (2) Foreign Exchanges (3) %•< SSW* V A. Transportation & Telecom Highways Airports & Airways Portworks Railways Telecommunications . Water Re sou rces Irrigation Water Supply & Sewerage Flood Control & Drainage C. Power & Electrification Power Rural Electrification D. Social Infrastructure I i: School Buildings National Buildings Hospital & Sanitaria Shore Protection R HU E DP I TA F Other P. W. Projects Misc & Other Special Projects TOTAL T •1 ■ ■iaaj ?x» ;-’4 LX ,W>$ 54^ X. > I P2,436,486 1,819,295 168,449 246,929 161,612 40,200 1,963,366 1,094,822 2,029,555 1,551,936 145,949 201,417 93,804 36,450 1,265,484 712,630 54,124 35,648 3,000 5,935 9,041 500 93,061 50,959 v pW'F" LAND DEVELOPMENT • ■F MINING • AGRO-INDUSTRIAL • BUILDING AND HOUSING* UTILITIES • TRANSPORT • PROJECT MANAGEMENT • 283,396 145,711 18,358 585,148 2,074,750 1,654,628 420,122 735,941 377,707 92,648 101,899 6,070 37,616 21,000 100,000 407,143 873,603 676,981 196,622 729,633 377,707 92,648 101,899 5,070 31,309 21,000 100,000 oo 800,1 P8,009,731 705,661 P5,603,836 R H U — Rural Health Units EDPITAF - Education Project Implementation Task Force Source: NEDA 23,734 160,153 130,363 29,800 841 41 12,617 $320,786 MAJOR FIELDS OF ACTIVITY • WATER RESOURCES • INDUSTRIAL CONSTRUCTION • INDUSTRIAL REFRIGERATION • SERVICES • FEASIBILITY STUDIES • ESTATE PLANNING • GEODETIC ENGINEERING*FOUNDATION AND GEOLOGY* HYDRAULIC ENGINEERING * COST ESTIMATES * SPECIFICATIONS • EQUIPMENT LEASING • TIRE RECAPPING • CONSTRUCTION • INDUSTRIAL AND PROCESS PLANTS • HIGHWAYS • MARINE • QUARRYING* BUILDING* MECHANICAL* ELECTRICAL • REFRIGERATION • PROCESS PLANTS • AGGREGATES • CONCRETE • ASPHALT • CEMENT • FABRICATION • STEEL • CONCRETE • TIMBER • FACILITIES MANAGEMENT • TOLL EXPRESSWAY OPERATIONS • UTILITIES • INDUSTRIAL ESTATES • HOTELS • BUILDINGS * k Buendia Avenue. Makati. Rizal Thursday, September 11, 1975 9 FOUR-YEAR INFRASTRUCTURE PROGRAM FY 1976-FY 1979 CAST INVESTMENT REQUIREMENT (In thousands) Category Total in P ($1 = 7.50) (2&3) ( 1 ) A. Transport P11,408,085 1. Highways 2. Airports & Airways 3. Portworks 4. Railways . Telecommunications C. Water Resources 9,047,700 818,231 644,732 877,422 500,738 1,875,870 Total 4-Yaar Requirement Local Currency Foreign Exchange / I (2) (3) P8,975,445 $324,352 1. Irrigation 2. Water Supp. & Serv. 3. Flood Control Drge. D. Fbwer & Electrification 4,030,113 2,522,068 2,323,689 13,609,256 7,550,550 431,981 512,175 480,739 187,950 6,071,380 I 2,715,123 1,328,173 2,028,084 4,045,549 1. Power 2. Rural Electrification E. Social Infrastructure 12,390,545 1,218,712 2,719,503 1,215,043 475,012 343,368 30,200 263,635 22,245 370,000 1,665,878 625,71 179,160 41,000 200,000 320,000 50,000 3,575370 469,679 2,609,538 1,215,043 475,012 343,36 30,200 171,715 4,200 370,000 1,374,690 436,845 91345 26,000 200,000 320,000 50,000 I 199,620 51,500 20,341 42,891 41,705 * 373,932' 175,332 159,186 39,414 1,275,161 1,175,290 99,871 14,662 12,256 2,406 I le first semester of per cent more irere employed in struction sector to the second 1974 levels, and er cent more to the period from • June in 1974. •I* 3r which will furn tribute to the ’ the sector is the hike in real estate year. Real estate Ireater Manila will >rd high of P49.3 an BF according to made by demand for housing by middle income earners and the Central Bank’s rediscounting priv ilege of up to 40 per cent of housing mortgage papers to thrift institutions (savings banks and savings and loans associations) are expected t give uscle to the real estate industry this year. dded boost is the government’s to ii An II If P500 marked Hi: ■ Increased investments With the expansion in construction activity, an increased number of firms which will engage in cons truction is expected. The total number of new stock corporations in this sector during FY 1974-75 was 259, an increase of 72.7 per cent over last year’s total of 188 firms. Combined authorized capital of these new firms stood at more than P687.81 million, registering an ini •4 ANNUAL INFRASTRUCTURE PROGRAM, FY 1976 CASH INVESTMENT REQUIREMENT (In thousand Pesos) TRANSPORTATION & TELECOMMUNICATION (P2.435.185) 27% -1 POWER & ELECTRIFICATION (P2.074.750) 26% crement of 178 per cent over last year‘s level. Similar ly, actual paid-up capital stood at P47.29 million, recording an expansion of 172 per cent from last year’s *■ total. More hotels, resort facil ities and condominium firms during the year will likewise accelerate the growth of the construction sector. During \ FY 1974-75, 69 new firms in the hotel trade registered with the Securities and : change Commission. This is 91.7 per cent higher than last year’s 33 new firms. h cFinancing Recent moves to facilitate financing of construction projects, especially in lowcost housing, will increase the tempo of activity in the sector. • J I j f I, The Social Security System provides housing loans for its members who re regular employees in private enterprises. The SSS allows a member to borrow up to 90 per cent of the cost of the house. Amoritizations are spread out over a 25-year period. To insure availability of more financing for housing7 r projects, the National Eco nomic and Development ) Authority is currently at work on the development of the secondary mortgage market. Similarly, financial institutions may be required to allocate a certain portion of their portfolio holdings to real estate mortgage. Private construction As government construct ion activities move at a faster pace, the private sec tor is expected to follow the same trend this year. The number of private building permits in the Phil ippines for 1975 is projected to level at 21,676, about 30 per cent higher than last year. Similarly, floor area is estimated to expand by 48 per cent, reaching a total of 3,668,000 sa. meters in 1975. ►: i * 250,000 250,000 P38,799,329 $2,068,637 P23,264,552 Source: NEDA (Continued to page 22) •1^ J 25,183 11,642 2, WATER RESOURCES (P1.963.366) I I P800?180 MISCELLANEOUS & OTHER SPECIAL PROJECTS / As prices of construction materials and labor move 38,825 1. School Buildings 2. Nat'l Bldgs. 3. Hosp. & Sanitaria 4. Shore Protection 5. R H U 6. EDPITAF 7. Other P.W. Proj. F. Misc. Projects 1. EPZA 2. PADAP 3. LLDA 4. Misc. Pre- Eng'<5 Studies 5. Other De. Eng'g. Row 6. Tondo Roreshore 7. P. W. Cont' Price Adjustment TOTAL “ 8,009,731 Thursday, September 11, 1975 Page 21 ) ♦ 2-r I For those qew things in your living room o MODERN FOLD FOLDING DOOR Ml* © KENTILE VINYL FLOORING PROVEN FRIENDS! i /.•z S o NACO WINDOW LOUVER W*X< - ' © INTALOK DIFFUSER © UNITEX ACOUSTICAL CEILING BOARD AMON has had a lot to do with downright good living. Its many trusted quality brands have been pleasant—and enduring—convenient com forts in the living room of Filipino homes. E Whether you’re just renovating — or building that new home—you know who can be of real help. Your old family friend. STAY WITH • REPUBLIC CEMENT • FIL-HISPANO TILES • SHERWIN-WILLIAMS PAINTS • NACO LOUVRE WINDOWS • WELDWOOD GLUE • BRIGGS PLUMBING FIXTURES • KWIKSET LOCKSETS • WOLMANIZED LUMBER & PLYWOOD • MADERA PAR QUET FLOORING • MODERNFOLD • ETERNIT PRODUCTS • MIAMI CAREY RANGEHOOD • KIRSCH HARDWARE AC CESSORIES • SAHARA WATERPROOFING • POLYSEAL WATERPROOFING • SUPER IOR WIRES & CABLES • GLUWOOD • PIO NEER FLOOR TILES • KENTILE VINYL ASBESTOS TILES • PHILIPPINE STAND ARD PLUMBING FIXTURES • SIKA AD MIXTURE • TRINILITE PERLITE ...AND SEVERAL OTHERS. _____ • ■ ■ of service to the Tiliping builder: AMON TRADING CORPORATION 7A 246 Buendia Avenue, Makati, Rizal Branches: Cebu • Bacolod • Davao • Iloilo Tels. 88-09-61 • 88-86-31 Q) < 2 0) 0) < - * 4 I Page 22 business Day Thursday, September 11,1975 *9 I upward as a result of the adjustment in fuel prices, total value of private build ing construction for 1975 may grow by 77 per cent from the previous year’s value of P996.966 million, to reach Pl,774 million in 1975. The bulk of private build ing construction activity in the Philippines will be con centrated in Manila and suburbs as floor area and value of building construct ions are estimated to amount to 2,087,000 sq. meters and Pl, 34 2.6 million respect ively. Compared to last year, total floor area of buildings constructed in 1975 will expand by 52 per cent while value is projected to increase t a higher 94 per cent. Other chartered cities are likewise expected to exhibit growth in private building construction. Total floor projected at sq. meters while value is at P431.6 million, a growth of 43 per cent and 41 per cent respectively over last year. I Construction materials The prices of construction materials will exert a very big influence on the per formance of the construction sector this year. If no sig nificant increase in the prices of construction materials ensue during the remaining months of the year, the growth of this sector is expected to be impressive. However, any significant increase in the price of oil and oil products during the year is expected to affect the prices of construction materials and result in the slackening of the growth of the construction sector. « •II 1973 January February March April May June July August September October November December PERMIT VALUATION OF PRIVATE BUILDING CONSTRUCTION IN GREATER MANILA AND OTHER CHARTERED CITIES (Floor Area in Thousand Square Meters; Value in Thousand Pesos) 1973 - 1975 Total, Philippines Manila & Suburbs Other Chartered Cities Number of Permit 20,66; 2,0 I w w oo 1,898 2,121 1,699 1,928 1,781 1,482 1,552 1,611 1,811 1,505 1,192 Floor Area Value Number f Permit Floor Area Value Number of Permit Floor Area Value area is 1,577,0 II 11 o 2,655 207 25 305 214 246 194 152 180 o 22 307 182 182 609,450 42,126 54,080 70,125 41,863 64,799 41,516 33,257 57,749 52,886 59,282 42,923 48,844 » cj ,331 773 29 998 696 841 705 . 547 635 584 702 595 433 1,470 112 175 211 120 156 110 73 102 122 203 93 103 395,317 27,532 41,103 54,673 26,985 46,868 28,030 19,675 23,682 26,936 39,029 27,235 33,569 12,330 1,315 1,069 1,123 1,003 1,087 1,076 935 917 1,027 1,109 910 759 1,069 95 83 93 93 f) oo o 3 79 78 106 104 «9 79 194,130 14,594 12,976 15,452 14,878 17,951 13,486 13,581 14,067 25,950 20,233 15,687 15,275 1974 January February March April May June July August September October November December 16,645 1,718 1,310 1,359 1,413 1,723 1,165 1,24 1,290 1,375 1,379 1,325 1,340 o 2,477 219 193 211 199 200 202 215 173 193 242 180 250 996,966 61,581 66,520 60,470 68,215 66,841 91,872 112,253 65,858 81,129 97,593 72,273 158,361 6,667. 603 536 557 602 744 418 506 466 590 586 57 481 ( ) 1,370 101 97 120 118 105 116 125 85 99 151 90 163 690,369 32,432 41,550 41,593 49,898 45,088 66,812 85,292 37,094 53,521 61,679 44,261 131,149 Q O o Q O o 1975 January February March April May June July August September October November December 21,676 1,683 1,466 1,545 1,742 1,840 1,778 1,822 1,868 1,914 1,960 2,006 2,052 3,66 356 351 245 288 260 236 303 310 31 326 334 341 o o 1,774,273 255,573 201,346 91,405 110,215 101,842 o 104,35 143,544 146,762 149,980 153,198 156,416 159,634 July to December 1975 are Business Day projections Source: NCSO L x ■ • 4 I I o ,701 650 554 662 734 845 606 730 74 766 784 802 820 (J 2,087 221 231 132 161 144 112 171 175 179 183 187 191 1,342,61 217,606 173,170 61,814 68,843 66,861 o 71,080 107,424 110,004 112,584 115,164 117,744 120,324 £4 A A A1 A )A A 3 FRIED. KRUPP MASCHINENFABRICK BUCKAU LURGI GESELLSCHAFT NUC NORDDEUTSCHE UEBERSEEGESSELLSCHAFT MACHINENBAU • w k * ■ STAR MACHINERY COMPANY HEMPEL'S MARINE PAINTS Machinery and Equipment of proven quality and outstanding performance. • Fried. Krupp GmbH. • Maschinenfabrick Buckau R. Wolf A.G. • Norddeutsche Ueberseegessellschaft in Hamburg m.b.H. • Mak Machinenbau GmbH • Lurgi Gesell schaft. • Hempel’s Marine Paints • Star Machinery. We at RODOZA TRADING CO., INC. carry all these trademarks and many others. Because of their proven excellence. Helping develop Philippine industries: In wood, automotive, shipping, shipbuilding coconut oil, pharmaceutical and chemical production. Railway equipment. Mining. Sugar. Individual machinery and equipment for all industries. I •»* L*! • X \ 1 * 1 w | » • * * I We plan, supply and install complete industrial plants. And their individual components. ill ■r-.E**'jMaadafl it* ■. • £•/ V • > < S • TRADING COMPANY, INC. • 4th Floor, Oledan Building Ayala Avenue, Makati, Rizal 86-51-51 86-53-53 1 Reach, Inc. 9,97 1,115 774 02 11 979 747 742 824 785 793 747 859 1,105 11 95 91 81 94 86 89 o8 94 92 90 7 o 306,597 29,149 18,970 18,877 18,316 21,753 25,060 26,961 28,764 27,609 35,914 28,012 27,212 12,975 1,033 912 883 o 1,00 995 1,172 1,092 1,120 144 1,176 1,204 1,232 Q o 1,577 135 120 114 127 116 124 131 135 13 142 146 149 ri o 431,650 37,967 28,176 29,592 41,372 34,981 o 33,27 36,119 36,757 . 37,395 38,033 38,671 39,309 .4 z 1 The flame and the minerals. The seal is symbolic of Filipino workers' efforts and indigenous materials that are fused together to make glass. The seal symbolizes Republic Glass ... now the new profile in the economic picture. Today, with Filipino ownership, Republic Glass participates actively in the economic mainstream contributing its Efforts, in its own modest way, to the fulfillment of our national aspirations. * » The New Profile „ in the. Economic Frame SALES OFFICE: MADRIGAL BLDG., AYALA AVE. MAKATI, RIZAL TELS. 88-13-11 TO 88-13-20 PLANT OFFICE: PINAGBUHATAN,PASIG, RIZAL Thursday, September 11, 1975 Page 23 f I I > 5 I •VA' ► >■■■ • • a a a • • 27,yX’ . %•••. •%CtfWVV. * A X*z?z3aKsFSF8 -:• <Srao8 • # a a a a 1 a a .4m . aW •• •XXVa.■a‘.‘.*.V ■.••• Sc.'*:*:*: • • • « Z* • • •e*.................................... •-"a*. •• »•*•#< > ■■ <w: iSh rzzzzl-fc^^ •_ s a Z.\* "X a ’zZwfc* • “ • •**5| • • • ■ vzl" S-S - >>: # .‘A £ .• •A >xt X ‘ % * * :::S * * • a J •vz ✓ ■ ■ a a a a a a • • • a a . *z • a a VZZZ.7 x ■ • a a a a ■fiOX'zv» ■r • • • r • • • * I • • • a V •A X a • X-• a a*, a*. >zzzz V.\’Z .•aX* • • • • • •> .V.'aW.-a a a a . a . . . pSc’ -:- • :3 a a a .;.■■.<• v »X’ •::R >• ? 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V *4 ■* ' I vs > & • 9lK • • • a ■ ’■ 'sa vz.^Q ‘•vzzz * • e •Z-5Wi a a • < a^k A:SS.> yzzzz ««<• zzz?.. ~ K’X< pzz.v. ?WZ • • 4 a Za’a’Z. S; ■ w x::$ V f■; <X;. % ‘ |Wft-:-:-:-:-:-:-:-:-:-:-:-:-:A’ b. •• < >■ z ZzXv • • • w •, • a*Vw* a* * .* 1 ; I y. - • - • • • . • • • • • • • • • « • ZZZA • jC • . . * *z • • F vs z V ' * 1 • • • a • 4 • •.• • • >££? v’-tfii •****•»• z wW zz •V V Today, it is an indispensable institution. Like banking. It generates investible funds. Provides protection and financial security. Encourages enterprise. • • a a a « 9 . , •••••kXaf t ri '»•••** 4 . a a • a • • r a . * • • • • • • A% .VZ.’.W.w A’.y.vz z • a • a . a a a . aaaaaaav.a if® • • • • • • • a 4 «««a«aaa » K<<^*zz • • a V a a a • .• • • • • a a | • aeaaaaa • • ’ ••••aaa» •a • • a a •.%yzz .wav ;b% a • • ^a • • • • • • • a a • • >•*•»* * « a a a a •ZZ. z. •. • a*Za\VZZ • z>::z:»»x« / The FGU Group is proud to be a part of the insurance industry. Grateful for the continuing confidence of the insuring public. Committed to remain worthy of this trust. 8 I® • • ■ i 1 A sculptured relief depicting Shamash delivering the Code to Hammurabi. Partners in business progress for over half a century. FGU INSURANCE GROUP §) MEMBERS: THE PH1UPPINE GUARANTY COMPANY. ING FGU INSURANCE CORPORATION Insular Life Bldg., 6781 Ayala Ave., Makati, Rizal Reach ,Inc. i. I > t Page 24 Business Dey L Thursday, September 11, 1975 I REAKDOWN OF AGRICULTURAL CREDIT GRANTED BY DBP AND PRIVATE DEVELOPMENT BANK (thousand pesos) Period 1974 TOTAL Palay or Rice Coconut Livestock & Poultry Sugar Others January February March April May June July August September October November December 1975 January February March April May • June • July • August • September • October • November • December 9,827 o,007 6,615 12,140 19,498 20,726 11,23 22,019 14,096 21,505 46,014 19,837 I 2,341 1,363 1,405 > 2,303 8,130 7,239 3,430 ,232 4,181 10,204 8,602 3,982 y J o 911 952 959 1,507 1,569 4,226 1,171 2,879 2,580 2,117 2,031 1,933 3,910 3,593 2,783 5,310 6,455 4,461 3,583 5,36 3,638 5,521 8,498 4,501 1,563 372 675 1,157 1.297 1,331 1,305 2.297 1,052 1,134 1,741 2,312 1,102 1,727 793 1,863 2,047 3,469 1,749 3,243 2,645 2,529 25,142 0 7,109 Governments stress on food production efforts has hiked in the net agriculture’s share national product 79,124 26,375 50,390 130,933 47,20 79,12 4,605 90,082 95,559 101,036 106,513 111,990 I I I Q o •: 21,835 o o 28,235 26,338 28,047 29,756 31,465 33,174 34,883 36,592 ,305 3,271 4,645 5,567 6,243 4,232 5,123 5,368 5,613 5,858 6,103 6,34 6,593 1 9,387 I► Q O 6,80 13,965 110,224 ,377 38,600 41,920 45,240 48,560 51,880 55,200 58,520 1,746 2,386 2,904 1,683 1,583 2,238 2,302 2,366 2,430 2,494 2,558 2,622 3,864 5,144 6,119 4,478 4,781 6,829 6,968 7,107 7,246 7,385 7,524 7,663 To combat inflation, monetary and fiscal measures were centered on agricultural development, especially rice production. Hence, July and August, which are tradition ally lean months (September included), have passed with out any major food crisis this year. It is unlikely that the country will experience any during September and the remaining months of 1975. This was also true for 1974. i The main reason for such an optimistic outlook springs from the many forms of as sistance the agricultural sec tor has received from the government. The greater availability of funds for agri cultural projects supported by the necessary inputs, credits and technical supervision hectares target for the same have greatly improved the phase. A sister project of the Masagana 99 rice production program is the “Masaganang Maisan” of which Phase II was started in January and ended in March this year. This program is said to have surpassed the 95,640 hectare target by 37 per cent or 35,640 hectares in the corn and feedgrain planting. Total credit assistance for the Masaganang Maisan amounted to P37.14 million. The PNB’s tasks have been enlarged to include the J J <- - output of the agricultural sector. Figures from the Central Bank show that total loans granted to the agricultural sector by the banking system from 1970-1974 amounted to P18,458.3 million. On the other hand, total loans grant ed by the non-bank financial institutions for the same period amounted to P375.8 million. Of the total loans granted, commercial banks contributed the largest amounting to P13,348.3 mil lion or 72 per cent with the massive financing for rice rural banks contributing and com production. For P4,461 or 24 per cent; dev- 1974 alone, PNB had a total elopment banks P641.9 or 3 lending outlay of P6.27 bilper cent and savings banks lion for agri-business. It has P7.1 or .03 per cent. extended P500 million to * * PROJECTIONS * As projected by Business 382,849 rice farmers under Day, total loans to be grant- the Masagana 99 program, ed by the banking system For white com and feedfor 1975 will amount to grain, PNB extended P137.3 P5,415.4 million as com pared to P5,189.3 million in I i million in production loans to finance crops planted to 1974. This is an increase of 285,117 hectares. P226.1 million. Philippine National Bank loans alone amounted to Pl,951.4 million in 1974, re flecting an increase of Pl,050.2 or 115 per cent over 1973’s figure of P901.2 million. Masagana 99 As the grains industry grows, so grows the nation. And keeping the growth of this pivotal industry constant is the task to which the NGA is actively involved. r. r; * Propelled by today's breed of young, dyna mic and achievement-oriented work force, the NGA has steadily paved the way for a stronger, healthier, and food-sufficient Phil ippines. The grains industry is growing. The NGA helps make it grow. I NATIONAL GRAINS AUTHORITY The growth-oriented agency In rice production, Masa gana 99, Phase V projects a total harvest of 88 million cavans. assuming a conserv ative yield of 80 cavans per hectare. This program in volves more than Pl billion worth of production loans under the supervised credit scheme. Masagana 99, Phase V also aims to plant rice in 56 provinces with a total area of 1.1 million hectares. Under this program, about 700 thousand small farm ers are expected to be-the be neficiaries. G O. 47 Varied measures have Deen undertaken by the government in its concern for food production. One is General Order No. 47 which requires all corporations, whether foreign or domestic, with more than 500 ■ employees to either produce or import rice for their employees at low prices set by the government. As of July 23, there were 117 firms in actual rice pro duction in compliance with the presidential order. Another 132 firms as of July 2 had taken concrete steps towards compliance. The 117 firms in actual rice production are expected to produce an approximate 3,228,160 bags of palay (one bag equals 50 kilos). Studies are being con ducted as to the possibility of broadening the coverage of the G.O. 47 to cover J •I* i •I* A review of Phase IV (Nov. 1974-Apr. 1975) of firms with at least 100 employees. San Miguel Corpor ation, one of the country’s the 580,000 major employers whose actthe Masagana 99 program reveals a total area of 620,000 hectares utilized. This represents a 10 per cent increase over i . Thursday, September 11, 1975 •It tit tie i 178, I • zy r, ivities range from mining, manufacturing, and the serv ices, intends to go into agri cultural production itself. It plans to open up agricultural areas for corn and rice cul tivation which would pr uce enough supply for the 30,000 people it now em ploys. Planters Products, Inc., on the other hand, Asia’s big gest fertilizer firm, has joined hands with the government to increase food production. Planters will train special dis tributors for its fertilizers and agricultural chemicals. Letter of Instructions No. eventually makes the end users of the fertilizers part owners of Planters. Boosts A great boost to food production was the re duction of fertilizer prices by-25 per cent. Before this subsidy, which amounts to P350 million, there was a 29 per cent decrease in the use t of fertilizer due to high rices. Another boost was P29 million which was released to the Department of Agri culture. Part of this amount will be used in the purchase of early-maturing seed varieties. Some will be spent for the department’s rat ex termination program, while the rest will be used to hire additional farm production technicians to augment the department’s field force. The Central Bank, on the other hand, in June released guidelines on how farmers can become part owners of rural banks they are borrow ing from. These guidelines implement PD No. 584. This adds to the various in centives offered by governf ment to hike production. In ;X;<« L'-' 4 ’ ‘«*x<: r . ■■ 1 - z.^- ... >: ’«■.' 4 ’* *, » V o *'.‘Z.'X-’-* • >w; >z < z. <y<; V:. r r • vx > /;X». ■ ■f-y-'X •!'» s ‘ 1 . • ' .V - * Is i: I f ' i- —I - i Z*'* / ■> < V ■ll B?v *’ ' \-O: , s'7'.< •»> ■ •.'<■ •'. ’ . .V >T;<£ • . ,.y /A.. » •j V A July, the DBP approved an emergency financing program of P50 million for the ac quisition of tractors and farm machinery. The Land Bank also set aside P24 mil lion for the same purpose, the LOI No. 298 provided for the allocation of P18.2 million from the calamity fund for the purchase of vac cines. To further help farm ers meet obligations, the Land Bank has completed the implementing guidelines for LOI No. 273 which con cerns liberalized payments for small landowners of te nanted rice and corn lands transferred to tenant-farmers. Masaganang Samahan, a Land Bank subsidiary, will assist farmer-beneficiaries to greatly increase their prod uction capacity and thereby improve their incomes by making available to them vital agri-business services like the leasing of tractors, rice thresher and other agri cultural machineries; prov ision of farm inputs; ware housing; rice milling; cer tified seed products and management and consultancy services. Also, the abaca prod uction in the country was given a boost such that the Fertilizer Industry Authority had been asked to include abaca as one of the priority commodities in allocating subsidized fertilizer. Further more, the Department of Agriculture is procuring new additional stripping machines for distribution to selected abaca farm associations. The Royal Savings and Loan Association also has initally set aside P3 million for backyard livestock fat tening projects in three (Continued on page 26) / tie I F' • ■-’1 •* * i f ’ - . • • •' Z?.' . / /. a* * *" zz.-zr zX' A F |r ■ -• ’Zz 5®: : ’*%’< / < •za bK< Z* V. <z • • Z •• X ... i • < * Ii fef < ZA'X<V/X < >’ >z*z ■ * ■vZ •.’•<< >■€- ■'/ \• ■.'.’*•.•/*<• X*. z. ;v-7-." • .».■.. -xk'" ■ flHBa. . ^k. yy‘‘\ -<rv:‘ > •<-« khz • ■ ’'’A>s Y • ■’'« • J. :3 & 7 /.< w ’< • 4* • • • Your Ii Cool. B find happipe do what you For your spe ' < z -z / / ’ '.£> : ^5L S? «• :> ■r • . M ■L ': ■ Ek 9r-' - F F:;.V . •• • ■X • *. .• | &•& Barong — COOl. In .w..w—.....^ ,.wm aaav... the silkiness and sheen of polyester. Free. Onto a great moving, free flowing barong fabric - Ramie Royale! The new Barong for the New Lifestyle! 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EDUCATIONAL SYSTEMS DEVELOPMENT CORPORATION 7th Floor, Merchants Bank Bldg., 313 Buendia Ave. Makati, Rizal Tel. 87-85-86 *i * Page 26 Thursday, September 11, 1975 (Continued from page 25) Southern Luzon provinces. Under this program, a bor rower is entitled to a max imum of P3,000 loan pay able from a year to three years. til M u Other sectors Likewise, the agriculture secretary has been instructed by the President to create an inter-agency committee to look into the sugar industry and increase its productivity. The government has also launched a trade offensive to mplement the effort. Presidential Decree 791, issued last September 4, grants tax exemptions for five years on importations of machinery and spare parts used in sugar production. Presidential Decree No. 788, which increased by P0.10 to Pl. 10 the “stabiliztion” fee collected for every picul of sugar pro duced in the country, re flects increasing govern ment attention to the wel fare of sugar farm workers. The collection will be used to see to it that labor laws relating to sugar workers are strictly enforced. • . * • • • • I THOUSAND PESOS 1101 LIVESTOCK & POULTRY 10 60 ✓ » 50-1 40 3020 4 • 2 • AGRICULTURAL CREDIT GRANTED BY DBP And PRIVATE DEVELOPMENT BANK 1974 - 1975 PALAY OR RICE I * I COCONUT 1975 M • T-----» F M 6 ■ - ■ ■ -1— J •PROJECTIONS •II * Th e President likewise a u t h orized the Philippine Virginia Tobacco Administra tion to undertake a joint project with the University of the Philippines (Los Banos) for the training of manpower and cooperative re search. The President has similar ly directed the Central Bank, through the rural banks, to make available to Vir ginia tobacco growers an ini tial amount of P20 million to help them increase their production. Likewise, PD 389 or the Forestry Reform Code of the Philippines, has been re vised by PD 705. This gives certain incentives to quali fied persons who will engage in industrial tree planting and farming. The Bureau of Forest Development, as an added incentive, will give free technical advice and as* sistance to persons who will develop their private lands into industrial free plant ations and farms. The Fisheries Decree of 1975, likewise, gives the Bureau of Fisheries and Aquatic Resources complete til * / II I II jurisdiction and sole respons ibility in the management of all fisheries and aquatic re sources throughout the country except in municipal waters. The President also ap propriated P21 million to the Bureau, Pl million of which shall be operational expenses of the council for the current fiscal year and the balance to constitute a Fishery Loan and Guarantee Fund. The government’s intens ified action regarding food production is clearly shown in the national budget for FY 1976. A breakdown of the bud get shows the Department of Agriculture getting an allot ment of P212.5 million for its various programs. Similar ly, the Bureau of Animal In dustry gets P63.5 million, the Bureau of Fisheries and Aquatic Resources P77.2 million, and the Bureau of total of P142.3 I I I ii I* Forestry illion. Summing up, all indic ations point to more action on the food production front forl976. II SUGAR 1 4 % t * Thursday, September 11, 1975 lusiness Day •• Page 27 J i The manufacturing sector will turn out a checkered performance: profit declines for majority of the firms will however be offset by gains in other areas to push growth rate up 5.7% over 1974 levels 1 I L I gfi / I / e ► k I by an average of 12 per cent from 1974 values. Projected to suffer major setbacks this year is the con tainer sector which estimates drop in sales by about eight per cent. The manufacturing sector in 1975 is projected to conv tribute a share of 21 per ^cent to the total Net Dom estic Product at factor cost. Although worldwide in flation and recession affect ing most of the trading part ners of the Philippines are expected to affect the per formance of some subsectors of manufacturing, gains in other subsectors will how ever push the growth rate to 5.7 per cent over the 1974 level of P6,755 million. PDCP survey A recent survey conduct ed by the Private Develop ment Corporation of the Philippines (PDCP) indicates positive growth in sales value for the manufacturing sector in 1975. This, the survey notes, despite the accelerating prices of imported goods and raw materials, tightness in credit, fluctuations in ex change rates, the socialized pricing program of the gov ernment, decline in demand for Philippine products both on the domestic and inter national markets, and tax burdens. Notwithstanding foreseen economic difficulties en countered by the manufac turing sector in the first half of 1975, 95 leading man ufacturing firms in 20 dif ferent industries ended the » semester creditably and even projects more positive sales figures in the remaining months of 1975. Growth in sales value over 1974 is pro jected to be 35 per cent higher on the average for 81 per cent of the reporting firms, or 77 out of the 95. Top gainer in terms of 1975 sales value so far is the sugar manufacturing sector with an impressive growth of 55 per cent, and of basic chemicals with a 52 per cent increment in sales over 1974 figures. However, eighteen companies, or 19 per cent of the reporting firms, expect a decline in the value of sales >» r r" 5 * > •It n 5 •' Plans To boost sales in 1975, 60 out of the 93 respond ents have plans to launch a more intensified sales cam paign this year. With the expected growth in sales, 57 companies, or 61 per cent of total respond ents, disclose possibilities of increased production by an average of 30 per cent. Of the manufacturing firms, the cement and basic chemicals industries are very . optim istic. On the other hand, 33 companies,;, or 35 per cent, expect a slump in prod uction volume by about 18 per cent. About 54 per cent of the responding firms project an improvement in capacity utilization by an average 20 per cent; about 36 per cent expect an 18 per cent de cline; and seven per cent foresee no change from their present capacities. Increase in earnings is seen at an average of 77 per cent by 50 firms. Those in the sugar milling industry particularly, project a pos sible profit hike of as high as 760 per cent. Half of the sugar group sees the in crement in profits at a min imum rate of 400 per cent; the other half settle for an verage of about 50 per cent. j 0 kt Automotive sector Growth in the volume of sales has been projected for 1975 at an average 40 per cent with increase in profits ranging from six per cent to 700 per cent over 1974 levels. Production volume is es timated to grow at an ave( Continued on page 28) ii’ L'l •c iE I $ f ® ■ w ▲ Barrios, towns and cities to be built. And re-built. Wastelands to be reclaimed. Minerals to be mined. Cargoes to be handled and moved. Soil to be tilled. Roads, dams, and airfields to be constructed. No matter what the job. KOMATSU will continue to bring Man improved, new. and the right machines and equipment to help him build better. I 1 k '.1 (• (• J iT/ KOMATSU makes BIG jobs small. GENUINE KOMATSU SPARE PARTS AVAILABLE TO ALL KOMATSU END-USERS. 4# 9 9 KOMATSU INDUSTRIES (PHILS.), INC. EXCLUSIVE DISTRIBUTOR in the Philippines ol KOMATSU Heavy Equipment Main Office: 2275 Pasong Tamo Ext., Makati, Rizal • Tels. 89-20-11.89-20-14 I "-20-12, 89-20-15 89-20-13, 89-20-16 KIPI Davao : Carriedo Bldg.. J. P. Laurel Street • Tels. 7-10-45 • 7-17-32 I KIPI Cagayan de Oro: Vamenta Blvd., Cag de Oro | KIPI Butuan: Zamora Street Butuan City I KIPI Cebu : L. K. Building, Subangdako, Mandaue City, Cebu I Reach,Inc. I i* Thursday, September 11, 1975 1 a / V r i Be a partner in projects that accelerate growth. COUNTRYSIDE Invest In 4. 5. Issue Price: 100% of face value. Denominations available: P50,000; P100,000 and P500.000 Form of issue: Registered or bearer at the option of the buyer. Term: 5 years. Interest: 9% per annum, payable at the principal office of DBP every May 15 and November 15 of each year. Tax exempt: Exempt from taxation both as to principal and interest. Redemption: Not redeemable at the option of the holder but may be the subject of repurchase agreement. If the Bill is no longer needed for compliance with Central Bank Circular No. 408, banking institutions may present it for redemption before its maturity. Security of issue: Secured by the total assets of DBP and fully and uncondition ally guaranteed by the Government of the Republic of the Philippines. Free safekeeping service: DBP shall offer free safekeeping service at the option of investors thru issuance of security custody receipts. .i Write or call: Development Bank of the Philippines Securities Management Department DBP Building. Makati, Rizal Tel. Nos. 896231, 896237, I I Q Q OO 2277 DEVELOPMENT BANK OF THE PHILIPPINES HEAD OFFICE: MAKATI. RIZAL. PHILIPPINES P. O. BOX 800. MAKATI COMMERCIAL CENTER 311 7 Optimism runs high in the sugar sector which has this early already posted an impressive growth of 55 per cent in sales value over the 1974 figures. I rage of 50 per cent, and capacity utilization by 20 per cent. Inventory level in crements will average at 65 per cent. Half of the responding firms in the automotive in dustry reveal an increment of about five per cent in em ployment while the othef half is estimated to register an average decline of ten per cent from last year’s level. A total amount of P21 million was allocated by half of the responding firms for new projects and modern ization of facilities in 1975. This amount would be ob tained from issuance of new equity, returns on oper ations, and borrowings. On the other hand, the re maining half has no plans for investment in 1975 either because of sharp rises in productions costs or because those whose mother firms are US-based are still await ing receovery of the econ omy “back home.” Profits expectations are high from firms in the beverage indus try, with three-fifths anti cipating an average in crement of a modest ten per cent, and the rest, no less than 60 per cent. On the other hand, about 36 per cent of the reporting firms anticipate a decline in profits by an average of 45 per cent. Adversely affected by the impact of recession are the petroleum and paper products sectors which pro ject declines in earnings this year. • • I » In ven tori I I I On the inventory side, 51 per cent of the 85 resp ondents estimate a 36 per cent average hike in invent ory volume this year. About 14 per cent expect inventory volume remain at 1974 levels while the remaining 35 per cent project a decline of about 26 per cent. About 62 per cent of 79 respondents plan to increase their work force by In ave rage of 15 per cent. On the other hand 15 per cent pro ject possible cutbacks in work force by an average of 15 per cent. The remaining 23 per cent opt for a status quo. I Investment Additional inestments will continue to strengthen the manufacturing sector in 1975. Of total expected in vestments of over $964 mil lion and P604 million in the manufacturing sector, 40 per cent will come from oper ations, 31 per cent from long-term borrowings, 21 per cent from short-term rowings, and eight per cent from additional equity. Distribution of investment is scheduled as follows: first quarter, with 20 per cent; second quarter, 29 per cent; third quarter, 30 per cent; and fourth quarter, 21 per cent. On the other hand, 43 companies will be unable to pour in additional invest ment for 1975. Reasons cited are lags in sales volume; uncertainty of future busi ness performance; rising cost of production; decreasing competitiveness of the prod uct; and inadequacy of pre sent facilites. To counteract increasing market setbacks measures have been initiated, such as: cul tivation of new markets; dev elopment of new products; slowdown in production act ivity; postponement of ex pansion plans; and decrease in work force. -C I •. .•!• •Il •!• •I* $7 Food Processing In general 1975 could be a relatively good year for the food processing industry. An over-all increment in sales value by 16 per cent, and in volume by as much as 36 per cent, is projected by the industry. However, like other * branches of the manufact uring sector, the earning g* potential of the industry is expected to lose muscle slightly in the profit picture. Investment-wise, majority of the food manufacturing firms believe that it would be impractical to invest at present in view of the rather steep rise in production costs and the current uncertainty in business conditions. Problems that have been bugging the industry like price upswings of imported commodities and raw mater ials and the tightness of credit remain the principal I • I 4 4 'I I Thursday, September 11, 1975 Firms engaged in beverage manufacture predict that 1975 profits will exceed the year-before performance. * 4 I •It » ", II w 111 •, • I sources of concern — which is, true for the other indus tries as well. Textiles In terms of total sales re venues, the 1975 business year in the textile industry is expected to register a five per cent downtrend based. } There is general complaint about a significant increase in prices of raw materials, credit tightness, and rise in operating costs which can be passed on to the enduser only on a limited scale. Despite a projected in crease in production, the industry believes that profits would be depressed four fold. Employment on the other hand will increase by an average of seven per cent for the year 1975. Wood For the wood industry, 1975 will not be recorded as a particularly successful year. Worldwide competition which started to bug the in dustry as early as 1970, the current global economic re cession, price hikes anJ credit tightness, and the im pending exports phase-out by January 1976 all point to a distressing year for this sector. Inventory levels are still uncomfortably high accord ing to one industry official. Other problems include too great dependence on a very few foreign markets for ex ports, a cramped domestic arket, exorbitant freight rates, and the Muslim con flict in the South. According to Benjamin • Sanvictores, vice-president for plywood and veneer of the Philippine Lumber and 1 Plywood Manufacturer’s Association, the industry today is more distressed than at yearend 1974. He adds that many wood processing plants have stopped oper ations since 1974, among them six PLPMA members. His short range view of the industry is that its situa tion is not too promising. However, long term prospects “are rather bright.” Household appliances The situation in the household appliance industry (Continued on page 30) •It •It * II II II II it II II II tit I * ■ MEMBER : PDIC I INTEGRATED FINANCIAL SERVICES * I • b I ar c Head Office: 333 Buendia Avenue Ext., Makati, Rizal Telephone Nos. 86 30-61 • 86-30-71 • 88 98-16 • 89-24-52 IPAGPATULOY ANG KAUNLARAN. MAG-IMPOK SA BANGKQ MAG-IMPOK SA RCBC. SOUND IDEAS FOR PEOPLE WITH FUNDS FUNDS FOR PEOPLE WITH SOUND IDEAS RCBC gladly shares in the task of nationbuilding. Fully aware Of the necessity for the private sector and the government to work together. In order that planned development in our essentially private enterprise system may succeed. RCBC provides solid and knowledge able financial support to all who are engaged in productive endeavors. In agriculture. Industry. Big or small. We move forward with them. Traveling the same road towards national prosperity. Doing our part to keep the wheel of progress turning. With the help of our inter national partners. Continental Illinois National Bank & Trust Com pany through its subsidiary, Continental International Finance Corporation. And the Sanwa Bank Ltd. Providing the country with a multi national combination of banking experience nd know-how. I Thursday, September 11,1975 * i Countrywide electrification projects and redistribution of credit to the rural areas have boosted sales of household appliances and the trend is expected to continue accelerating until the Christmas season when it peaks. ■ * M Service to Members and to the Country In keeping faith with our country's capacity to progress, the GSlS.has always held a leading position in the front ranks of nation-building. Under the leadership and inspiration of President Ferdinand E. Marcos the GSIS has grown rapidly to its present size of P4.5 Billion. For the past decades the GSIS has contributed and played a significant role towards the economic development of our country. We pledge to provide security and protection continuously to government employees for whose welfare the GSIS was established. Responding with equal fervor, the GSIS has assisted more than 100,000 homebuilders all over the country since it embarked in providing homes for state workers. Medicare benefits have been extended not only to members and their beneficiaries but to all government retirees. Aside from insuring thousands of valuable government properties, the GSIS has established an important position in the international insurance community through its international non-life Insurance and reinsurance operations. Workmen's compensation for the government sector is now administered by the GSIS. The monthly pensions of government retirees were recently increased, and are now subject to periodic adjustment to the over-all cost of living. And the GSIS has been faithful to its original basic goal: to pay life and retirement insurance and disability benefits to members when they fall,due. From day to day, for the past 38 years, the GSIS, in servicing and meeting the needs of Its 700,000 members, has always endeavored to infuse Into its operations innovative procedures and fruitful programs for the common benefits of all members. SERVICES * Salary, Policy, Real Estate Loans * Medicare * Government loans * Commercial-Industrial Loans PROTECTION * Life Insurance * Retirement * Property Insurance * Mortgage Redemption * Salary loan Redemption * Workmen's Compensation BENEFITS * Semiannual Dividends * Burial Benefit * Refund of ret. prem. * Cash Surrender Value * Accidental death * Disability GOVERNMENT SERVICE INSURANCE SYSTEM for 1975 is anticipated to be comparatively better than that of last year. There seems to be a steady increase in demand for both electrical and gas-operated appliances because of the rural electrif ication program of the gov ernment and the rechannell ing of credit to the rural areas. The industry looks for ward to an increase in sales value by a minimum of ten per cent and a maximum of 131per cent. This range in sales value is backed up by sales volume increases ranging from a low of eight per cent to a maximum of 89 per cent. At the same time, profits is expected to go up by a minimum of ten per cent. Flour milling The flour milling industry forecasts a decline in prod uction volume by an average of 11 per cent accompanied by an average reduction in capacity utilization by eight per cent. Because of the slashdown in production volume, it is also projected that sales volumes would consequently go down. Also, profits are expected to dwindle down to low levels. The high costs of production and the recession in most of the developed countries supplying the Philippines with wheat and other raw materials are cited as the causes of the possible slowdown in profit margins. The industry is never theless optimistic on the whole and even foresees economic recovery by the end of 1975. II •It >!• It H ii • i ii ii ii II Corner Arroceros & Concepcion Sts. Ermita, Manila Beverages An average growth of 20 per cent in sales value over 1974 is forecast by all the respondent firms in the beve rage industry. Similarly, all companies predict that pro fits for 1975 will exceed last year’s figures. Three-fifths of the firms estimate profits to rise by ten per cent. Dou bled profits are expected by •It two-fifths of the responding films. Volume of sales, pr uction, and capacity utiliz ation are estimated to ex pand by an average of nine per cent, 14 per cent, and 11 per cent respectively. An expected increase in production volumes in 1975 will be accompanied by an average expansion of six per cent in the sector’s work force over 1974 levels. r I f Cement The cement industry sees 1975 as a favorable year with sales volume and value expanding by 35 per cent over last year’s figures. Profit expectations of the responding firms in the cement industry vary. Three-sevenths of the responding firms project 1975 profits to be as much as that recorded in 1974. Two-sevenths see a possible profit decline by an average 22 per cent, while one-seventh estimate profits to increase by 10 per cent. Other firms believe that 1975 operations will just break even. No change in inventory levels is seen by threesevenths of the surveyed firms. On the other hand, two-sevenths project bigger inventory levels ranging from two per cent to 61 per cent. The rest of the companies; reveal a projected average de-> cline of 26 per cent. * Further investments this i year will be discouraged by lags in sales, high production costs and current excess capacities. However, one firm has programmed add itional investments of around $431 thousand and about P3.1 million to finance its P3.1 million to finance its blueprinted projects. II II 111^ I II I A II Construction materials An average rise of about . 55 per cent in peso sales for 1975 is projected by fourfifths of responding firms j while the rest expect a drop I Thursday, September 11,1975 J ■> In contrast, the petroleum and paper sectors will continue experiencing depressed conditions. *• j V. ■ we build our financial services on a clear understanding of your needs t of about 25 per cent. Three-fifths, of the firms predict an average expansion in sales volume of 58 per cent over last year’s levels with the remaining firms by about 18 per cent, values will go the opposite direct ion, increasing by an average of eight per cent over the 1974 levels. Accumulated inventories from 1974 outprojecting a possible decline put will force a decline in production levels by an ave rage of 23 per cent. Capacity utilization will likewise de cline by a loss of five per cent to a high of 49 per cent. Profits for half of the firms might be lower by 10 per cent; the other half ex average at an increment of pect to incur losses in 1975. 88 per cent. However, cuts ranging from two per cent and 60 per cent in capacity utilization are predicted by drop by five per cent, two-fifths of the respond ents. The profit picture for this sector will not be bad at all. Three-fifths of the respond ing firms project an average improvement of 119 per cent over 1974. Other firms point to a possible drop of 40 per cent in profits. Inventory levels of threefourths of the responding firms are expected to in crease by 39 per cent with only one-fourth of the firms projecting an inventory cut back of 60 per cent. Employment levels of three-fouths of the surveyed firms are projected to in crease by about 25 per cent. The remaining companies foresee a decline by about 50 per cent. Investment estimates are placed at $500 thousand and P10.3 million in 1975. II II ranging eight per cent and 80 per cent. About four-fifths expect an average rise of 57 per cent while the rest anticipate a dump of 50 per cent fro the 1974 production levels. Capacity utilization of three-fifths of the firms will II 1 II tie •It II As a result, inventory may go down by 53 per cent, and work force may similarly II II I S' II II Drugs and pharmaceuticals Peso sales of drug and pharmaceutical companies are expected to rise by an average of 23 per cent and sales wolume by an average of 13 per cent over last year. Production volume will like wise be up by 11 per cent. Earnings are anticipated to rise by an average of 25 per cent; work force by seven per cent. Inventory for 1975 will be 24 per cent higher than last year. Cap acity utilization of firms is anticipated to improve by about 11 per cent. Reinvested earnings amounting to an estimated $250,000 and P2.4 million would be utilized to finance new investment operations particularly in the field of research. tli Container other than paper Although sales volumes of the firms representing this sector are projected to drop Basic industrial chemicals Basic chemical industries see 1975 as a “much better (Continued on page 32) ...whether in your business, profession or family. Coming to us at Paramount Finance Corp oration can be a truly enriching experience for you. All you have to bring with you is a finan cing need. And you leave our offices with a financial package that answers your problem. That's because as financiers, we believe in.. I ROFESSIONAL CAPABILITY w It means constantly updat ing the training we have. So as to assure you of sophisti cated techniques. And thus work out a plan that is to our mutual satisfaction. A plan that answers your need. UMAN INGENUITY Paramount Finance becomes human when dealing with our clients. No strait-laced program for us. Where people are con cerned. And indeed, it has made us feel the world is very small. - BILITY TO RESPOND To you, our client. When you need us. We spend time with you. Help you under stand the crux of your need. Assure you where we can offer a financial package. i Give us a chance to understand your need. Today. J PARAMOUNT FINANCE CORPORATION r; A partner of the International Bank of Detroit 2nd Floor, Paramount Building 434 Quintin Paredes St., Binondo, Manila Tel. Nos. 484-781 to 84 / 482-281 to 86 4 Page 32 Business Dey Thursday, September 11,1975 I I I P 4 * GROSS SALES AND/O Pwiod 1973 January February March April May June July August September October November December 1974 January February March April May June July August September October November December 1975 January February March ■ 1 11 ECEIPTS INDEX BY INDUSTRY DIVISION 1973 -1975 Electricity All Items Manufacturing Gas & H2O Commerce OBBB nnmnm* GHBB OBBIS 271.5 296.3 312.5 283.7 342.0 341.6 332.2 368.7 348.6 372.0 364.5 371.6 433.5 454.3 500.7 488.9 568.4 529.5 497.7 458.7 455.6 475.2 464.0 477.3 519.1 512.2 505.5 Transport Storage & Communication Services 334.7 374.4 390.0 356.0 437.4 454.1 422.0 486.5 459.7 493.6 472.9 462.6 580.1 610.1 635.6 658.1 734.3 655.2 621.6 555.7 536.6 583.7 583.9 604.9 701.7 684.3 752.2 2OQ Q ’ OO.Oi 289.0 312.4 300.6 311.2 335.5 325.3 320.3 312.5 319.o 318.5 319.5 264.5 265.9 283.1 259.4 326.7 294.4 313.5 337.5 321.1 323.9 334.2 366.o 140.7 171.4 180.1 151.0 142.5 142.7 154.6 146.9 129.4 154.4 160.4 154.f J o 419.4 552.1 587.1 657.0 838.9 589.7 I i 730. 791.8 629.3 657.2 697.7 585.4 729.3 781.8 806.8 06. 385.5 406.7 489.5 440.3 561.5 567.5 513.0 485.6 477.7 168.5 167. 193.5 161.6 182.5 171.3 174. 175.6 241.3 201.2 199.4 198.0 o Q o 478.1 445.5 456.9 449.1 450.0 501.8 195.4 198.1 217.9 143.0 150.1 184.9 171.4 188.1 199.2 176.9 175.1 182.o o 220.9 194.5 244.4 197.5 179.0 274.5 205.4 245. Q o 281.2 244.1 240.2 235.0 286.8 251.1 255.7 214.3 215.4 245.O Gloomy prospects are projected for the areas of textiles, cement and wood products. I 9 r ib yours • B • 2-Dr TORANA SL I 2-Dr. TORANA GTR 2-Dr TORANA GTS A tB *5 wk w ^B ^B I 4 c. 2-Dr. TORANA Autohaus UPERB PERFORMANCE LND COMFORT ON T HAVE TO COME IN EXPENSIVE PACKAGES. K Smartness In design «*nd main emphasis on sheer efficiency and performance. TORANA 1900 offers more two-door models than most other brands. With looks, luxury and performance well beyond most other two-doors. Widest choice to suit your particular whims and tastes. Come In and test drive the TORANA 1900 2-doors. See and feel how better stacked up they are! They’re In our showrooms waiting for you. And you’ll be pleasantly surprised at the low prices and convenient terms.! THE GM DEALER THAT DELIVERS THE BETTER CAR8 AND GIVES YOU THE BETTER DEAL. 222 JUPITER ST. (corner Reposo St near Buendla Ave.) MAKATI, RIZAL - TEL. 89-50-11 We're open Sundays and Holidays (Continued from page 31) year” for sales which are es timated to outgrow last year’s figures by an average of 52 per cent for value and I 13 per cent for volume. Similarly, production for 1975 is projected to post an average increment of 12 per cent over last year. Capacity utilization is expected to ex pand by an average of nine per cent for majority of the firms. Earnings from operations of three-fifths of the resp onding firms in this sector are projected to expand by an average of 67 per cent. However, the remaining twofifths disclose an estimated cutback in profits by an ave rage of 29 per cent. To cope with projected increases in production vol umes, employment would have to be increased by an verage of eight per cent from last year’s employment level. Following the same trend, inventory volumes are pre dicted by two-fifths of the responding firms to expand at an average of 46 per cent. The remaining two-fifths project either no change in inventory, or a slump by 13 per cent from 1974. Onefifth foresee an increment of more than 200 per cent over last year’s inventory volume. While present economic difficulties have discouraged half of the firms to plan additional investments, the other half project total additional capital of at least $8 million and P53 million. t Batteries An average increment of 22 per cent in sales value over 1974 is expected by two-thirds of the responding firms engaged in battery man ufacture. The other third see a decline of five per cent. Sales volume is expected by two-thirds of those sur veyed to rise by 12 per cent. One-third anticipated a de cline of four percent in sales volume for 1975 from 1974 levels. Two-thirds predict profits to rise at an average of 12 » • per cent; the remaining third rear a 20 per cent contraction. Capacity utilization is projected by two-thirds to expand by nine per cent; the remaining third foresee no change. While the majority project an average growth in invent ory levels of about 17 per cent, the rest predict a drop of 10 per cent on the ave rage in 1975 from 1974 levels. With operational funds as the primary source of additonal investments for 1975, a total of $8.2 million and $58.1 million are earmarked for productive ventures. 1 > Thursday, September 11, 1975 Page 3 3 pite disappointing tourist figures the first six months an uptrend c TRANSPORT FORWARDERS, INC. * - • Door to door ocean, air and inland cargo forwarder i With agents in 35 countries i An affiliate of NOVO IN TERNATIONAL i Licensed customs broker, air and ocean cargo. FOR INTERNATIONAL TOTAL TRANSPORTATION CONTACT: INTERMODAL TRANSPORT FORWARDERS, INC. 2nd FLOOR, UNION CEMENT BLDG., A. BONIFACIO DRIVE, PORT AREA, MANILA 48- 84-16; 40-79-96; 49- 37 86-td 89; 83-98-01 to 04 TEL NOS: projected towards the Yule season 26,132 arrivals and down 17 per cent from the previous month’s level. The June figure, incidentally, was the lowest attained during this period. Considering its past downward course, the coun try may see a lesser number of visiting Japanese during the second half of this year. However, unconfirmed re ports from the DOT indicate that the actual number of Japanese who visited the untry in July was not much less than in June. Contrast ,In contrast to the Japan ese pattern, the number of Balikbayans may increase during the second half along with the totals for the Americans and Australians who placed fourth overall during the 1975 first semes ter and fifth overall last year. Tourism in the immediate it two years has literally :> grossed by leaps and jnds — one month’s ro ti being surpassed by the ct and so on with almost tnotonous regularity — it it is a simple task to ike projections of its uro performance. The astounding results of i Department of Tourism’s likbayan and educational vel and tourism campaigns is advance bookings mid permit nothing else t equally favorable protions for the year. Despite DOT statisti >wing declining numbers visitor arrivals in the first months of the current ir (with the exception of ry and May), the optiremains high. The first semester total of urist arrivals in 1975 comres favorably with the first mester of 1974. Also, the ne total arrivals, while lallest of the first six jnths, was more than any anthly total achieved in le comparative 1974 riod. Christmas arrivals More visitors are expected the remaining half of 175. Towards the Christmas ason, BD Research projects out 282,000. In 1974, tual visitor arrivals for the ime period totalled 8,755. This normally means greater influx of tourists, irticularly homecoming erseas Filipinos, or Balik yans, starting at about A ♦< ill • » I 0 U.• I •II i I It was the large inflow of tors during the last quartof 1974 that was mainly for that year’s 69 cent increase in visitor al over the 1973 figures, trend in the 1974 first almost duplicates this ’s pattern. It was mostly rd also in the first : of 1?74. t t VISITOR ARRIVALS 1973 to 1975 January February March April May June July August September October November December 1974 January February March April May June July August September October November December 1975 January February March April June July * August * September * October * November * December * o Q o 242,811 12,213 13,179 14,414 18,07 15,843 18,534 19,031 19,79 19,708 24,618 26,436 40,959 410,138 33,680 30,443 31,612 29,723 23,855 33,869 32,145 29,428 31,258 38,216 48,347 47,562 541,161 47,091 54,516 44,571 38,021 35,576 45,336 46,028 46,722 47,416 48,110 48,794 Source: Dept of Tourism * projections Barring any serious set backs in the world’s econo mies during the remaining months of this year, the last quarter of 1975 should figure is good enough for a third place finish. This con trasts sharply with the actual total of 71,523 Balikbayans who visited the country last year when they placed second to Japanese in total rrivals. Balikbayans also placed second behind the Japanese in this year’s first half, but unlike the Japanese whose monthly trend has genrally been declining, that of the Balikbayan’s was on the up swing. The actual number of returnees for this year’s first six months stood at 35,431 over the 1974 total 27,345 visitors. Although projections on visitor arrivals and receipts for 1975 are considerably larger than last year’s, a factor that may throw these esti mates out of gear are the Japanese. Japanese who visitea the country during the first half of this year, have been contiguously de clining. In the first semester, for instance, Japanese alTh als numbered 115,353, or 45 per cent of the semester’s total arrivals of 258,755. But the trend was erratic, mainly characterized by large de creases against minimal in creases. In June Japanese visitors totalled 10,985, off by 58 per cent from January’s The number of Balik bayans for 1975 will be less than last year, ranging from 66,000 to 70,000, but the • f •II therefore see a recovery simi lar to that staged during the same period last year. Added to the approaching Christmas visitor rush is the expected recovery of a derable portion of the world’s economies towards the final quarter of this year. It was this predicted im provement that led Tourism Secretary Jose Aspiras to comment last July that “with the world economy expecting an upturn during the later part of this year, we can only expect a better performance till December.” Note should be taken, how ever, of recent reports of an oil price hike that is rumor ed to be imposed by the oil producing nations ty ober. * This notwithstanding, the DOT estimated early this year that for the whole of 1975, 560,000 tourists will visit the country, 40 per cent more than the previous year’s actual turnout. Topnotchers The Japanese, accoring to the DOT, will still lead the visitors list, this time con tributing some 250,000 tour ists. The Americans will move up from third overall in 1974 to second place this year with an estimated 0 visitors. ------- a," --------- -= •J OI» 85,00 * » I « * * II * Oct* * I • A 1 I I < KI I ' The number of Austral ians who visited the country so far this year is a great improvement over the equi valent period last year. For this year’s first half, 18388 Australians visited the country most of them through package tours. This figure is 97 per cent more than the comparable 9,057 of last year. This first semes ter total is also equivalent to 91 per cent of the total number of Australians who visited during the whole of 1974. By yearend 1975, there might be three times more Australian visitors than there were last year. I J I II II k» A AW Barangay Day... reminds us of our beautiful traditions as a people, of our greatness as a nation and of our destiny as a country. It is a day to cherish. - 6th Floor, Federation Center, Muelle de Binondo, Manila P. O. Box 23 e Cable Address: FECCOP Telephone: 47-49-21 FEDERATION OF FILIPINO-CHINESE CHAMBERS OF COMMERCE, INC. } I Page 34 Thursday, September 11, 1975 * -•'•-A i • V-v.'-.r, * k'V •* •• A • ‘ *. *■ • •. • f • V-l ■;-s J/7 -•iTvi'VV il t t ■v,»r.'C.:kTi . • . tw i • V‘ • ‘4- •-. •• •V.CV.7;?7i J I * look at multinationals l— -• • . • 1 .. . .\. Ta*\ ‘ -'AS? BA- . . . • • - • k The Econo my in 1974 • •« * ! • Arv. r k per copy rice P35.OO to 00 to non subscribers I • • • ■ r-tt v.u \r i-.‘ • • \ • I • ft? vTin: '.'r‘ * • ■ b I »\\\ £wSr^■-'••AV • ’• 'ifs r-^r if >V $ ' ■* -’ -A ■ • . i • . -I • -'r* . • • • • • . 7v-’. $ PT • WJ--' *4 • • ■ • i ■ i ■ •' •U-l - .V. l ■08 enue,. .• -i- it.Bi; 1 • f 1 fl *ta*A rv.v. W: • » • 4 ». JBIIsfass &,; ■ • * • •• • • *: - - »¥.l- I"'. <■*•• —• 3 z- *z•• V "it _ rap * ■ • i ■■•••--• i. ■ — ■ Economic concentration of major industrial sectors r-v. vva - - • •V?’ i7V- • • v. v •* ► v t»50................ Business Day subscribers •."7 V.•1 j t •» V— fiHRSd <. V. rv.e. i • 15-Vi a'»7‘ 113 West Av ’ i \ ✓// * * f • • • S * £ f \‘ NWS yY- • \ ■. • • • • aw K . .. ✓ •X v? V.' v. z.-.v*. .<• *5 V Xi vavzX V > •z ) / - V < ✓ X-'. •'/ « *>*.♦*•* -> + ■ ' A’. . V. zi-.vi A « Y-.’fjli ••• • • • -y ••• •,< • • s Z. z r z c A • • • J • • * • f Ys:•. < ■ <•:>. •: • • * • * ■ •- .’.••• * • * • • • .• •. • • • • « W.V • • • • • • •••••• / er '•V * * • / yaw y. ??.v • • t • • • • • • • • . • K •• • • • • • A X A •> ••• <■ o > .a' av •>% X • • • v.vX<•y %• y.%<y.v ✓. • •— • • • • • • • v.w ss.: ✓ • • • • • •! : :: «A iV...................................• • I -zz.'.Y A * • A -• / / We are known as Philippine Investments Systems Organization. Or PISO, for short. This has always meant money to you. It also does to us and significantly, a lot more. To us, it means the development of enterprises and financial markets. It also means financial expertise and re sources for you and your projects. As an investment house, we mobilize - resources to finance your projects, we assist in broadening stock ownership, and do a host of other financial and in vestment services, each one tailored to your particular needs and goals. When we incorporated early last year, we committed our resources and knowhow to economically viable and socially desir able projects. This is the PISO concept. And to add more flesh to our commitment. we invited PICA, Private Investment Company for Asia, S. A., to join PISO. PICA is a multinational financial firm specifically organized to assist Asian financial and industrial development. It is owned by two hundred of the world's top financial and non-financial entities. PICA is the perfect partner for PISO because it shares the same commitment. A commitment to serve. Philippinelnvestments SystemsOrganijation 3rd. Floor PISO Building 853 Pasay Road, Legaspi Village Makati, Rizal 3117 Philippines Tel. 88-86-91 MCC P. 0. Box 2270 Cable Address: PISOPHIL, Manila ♦ I' T ( < - V ■ '- . .-X 'J * « X * * ✓ ■» % * * * 1 Ar « k f * < ■ r ■ I V II I i I J I t 4_ 4 ■ I 1 il UA\ All around the world people who don’t have a whole lot of ready cash (and who has these days?) are discovering that it’s pretty smart to hang on to what they’ve got and use our money instead. And we welcome them. Because we believe that making money work for people is another way of making dreams come true. important, the lowest repayment plans available. We want to be the Silent Partner. Tell us about your dreams and we’ll tell you how easily they can come true. And remember. . .you’re welcome. « fNCB FNCB FINANCE -■ At FNCB Finance we make things easy. Just one simple application form. High speed processing so that you can make your purchase as quickly as possible and, most 6 th Floor, Citibank Center 8741 Paseo de Roxas Makati, Rizal Tel. Nos. 87-49-56 • 87-57‘91 to 93 > 1 I J I r I r