1. $600 million in yearly royalties from Malampaya translates to P1.45 per kilowatt hour in Meralco rates

The government has been getting a windfall income of $600 million a year or about P29 billion in royalties from natural gas piped from Palawan to power plants in Luzon, the energy committee of the Philippine Chamber of Commerce and Industry (PCCI) has found out.

The findings debunked statements earlier attributed to energy officials who said the royalties are minimal and have little impact on power rates in Metro-Manila.

In its computation, PCCI said that if the government gives up just $100 million and apply this as subsidy to big industrial users in the area, this will translate to discounts of P1.46 per kilowatt/hr.

The discount to industries will go a long way at making the manufacturing sector in the area more competitive, Dr. Benjamin Austria, head of the committee, said.

It was the committee’s view that bringing down power rates in the Philippines is one key decision of government that bolsters the competitiveness of local goods in competing in the domestic market and elsewhere.

Giving up part of the royalty could easily be done through an executive order, Austria pointed out.

Since the Electric Power Industry Reform Act (EPIRA) was enacted in 2001, however, power rates in the country have been going up to a point that with the latest round of increases approved by government, rates may get higher than Japan. -- Abe P. Belena, PHILEXPORT News and Features <--back

2. Upgrade education and skills to keep up with demands of KBBs

Individuals are advised to upgrade their knowledge, education, skill and experience for them to benefit from economic opportunities offered by the knowledge economy.

Celerino Tiongco, dean of University of Asia and the Pacific’s School of Education and Human Development, in a forum noted that human capital development has become crucial in today’s world as the emergence of the knowledge economy has brought with it the rise of knowledge-based businesses or KBBs.

“In many of the developed economies, KBBs have become the main engine of economic growth and change,” he said. “KBBs are expected to lead the Philippine economic growth in the next 10 to 20 years.”

Tiongco identified KBBs as those involving computers, information technology (IT) and IT-enabled services, telecommunications, biotechnology, integrated marketing communications, higher education, logistics; and professional services in media, entertainment, healthcare and tourism.

He stressed such businesses produce knowledge-intensive products and services, thus highly educated and highly skilled individuals predominate in the workplace.

To keep with the changing demands of the workplace, Tiongco cited the need for the country to develop a new breed of knowledge workers.

He said higher education on a mass scale for much better prepared university and college graduates is also crucial.

“The dynamism of the knowledge economy triggers frequent changes in the tasks, jobs, and careers of people,” he noted. “Back-to-basics education won’t be enough. A multiple-profession or multiple-career lifetime is fast becoming the rule in the world of work today.”

Tiongco said a person’s first university degree can quickly lose its value or relevance in a multiple-career lifetime.

“In the knowledge economy, individuals who have not received at least some postsecondary education or training will face increasingly limited economic opportunities,” he said. -- Danielle Venz, PHILEXPORT News and Features <--back

3. Exporters urged to develop products that fit the post-crisis economy

Exporters are encouraged to gear their efforts towards creating products that will fit the needs of the new economy.

“This crisis will change the economic landscape,” economist Dr. Benjamin Diokno said in a recent general membership meeting of the Philippine Exporters Confederation, Inc. (PHILEXPORT). “A new international financial infrastructure will emerge.”

He said the design and development of cities will change, driven by the desire to conserve energy.

“Smarter, more fuel-efficient homes will be in demand,” he added. “Demand for smaller and greener cars will rise. This suggests a leaner car manufacturing industry.”

Diokno also sees a shift from fossil fuel and more focus on alternative sources of energy such as wind, solar and geothermal.

Likewise, the economist urged businesses to plan efforts in line with meeting the growing food needs of global population.

“How do we feed all the Filipinos and how do we help feed the rest of the world, that’s an opportunity,” he noted. “We are surrounded by water, we can tap the wealth of the ocean to feed not only the Filipinos but also part of the rest of the world.”

For his part, marketing consultant Josiah Go advised exporters in the same forum to employ market-driving strategies to continue generating sales despite the global financial crunch.

Go said they should come up with new and different products targeted even for marginal and non-customers. -- Danielle Venz, PHILEXPORT News and Features <--back