Archive for March, 2013

New Rules on Foreign Business Ownership

On Monday, March 25 2013, the Securities and Exchange Commission (SEC) released a draft memorandum circular regarding the government body’s foreign ownership rule. The SEC had released this draft to the concerned parties asking for their input and comments by April 25.

Instead of the previous provision stating that foreigners can only own 30 to 40 percent of all classes of a company’s stock, now the new draft states that foreigners may now own 30 to 40 percent of voting shares and total shares. This rule applies to companies in the utilities, media, advertising, and natural resources industries.

The Philippine Peso Recovers Loss from Effects of Cyprus Bailout Fears

On Monday, March 18, 2013, it was reported that the Philippine Peso weakened as an effect of the announced radical bailout plan on Cyprus. While it seems unlikely that an event this far from the Philippines should affect it economically, it seems that investors have shied away from risky assets and investments because of the possible fallout from this move in Cyprus.

Foreign Direct Investment Posts Significant Increase in 2012

Foreign direct investment inflows have never been better as confidence increases in the Philippine business environment. Foreign direct investment increased by 10% by the end of 2012. Comparing from the previous year, the amount increased from $1.85 billion in 2011, a significant amount in itself, to an even more impressive $2 billion in 2012. There was an increase of $150 million over the course of the year which was, as previously mentioned, 10%.

Peso Stands Strong against Other Asian Currencies

The Philippine Peso continues to do well in terms of Peso-Dollar exchange despite the currency being widely reputed to be one of the weaker currencies in the region. In the first two months of 2013, the Peso is reported to be on one of the fastest appreciating currencies in Asia. During the latter half of the previous year, the exchange rate saw the Peso getting consistently stronger against the Dollar. The average exchange rate for the past four years has continuously declined, with the Peso getting stronger as each year passes.