by Atty. Tony(APA) Acyatan (Atty. APA – chairman of Acyatan & Co., CPAs-DFK International is president of PICPA in 1990 and ASEAN Federation of CPAs (1998-2000) and Accountancy Hall-of-Famer (2006).
TRADING: The local stock market zoomed to an all time high – closing at an average price of 3,902.56 last Thursday. This indicates the quest of investors to savor the flourishing economic recovery and progress. It also means there are funds in the marketplace – available for medium/long-term investments. It is hoped that our corporations will continue to operate profitably to benefit investors and our country.
Opinions Unlimited said before that since the “cost” of borrowed funds and “profit” of money deposited with banks are currently very low – people should put up their own ventures or invest in businesses run by knowledgeable corporate managers. The news confirmed the value of our earlier suggestion. We hasten to add – though, that stock trading is a very tricky process. History has many stories of so-called fund experts “losing their pants” due to their miscalculations in stock exchange deals.
EXPORTS: Our exports surged by 36% on year-to-year basis for the month of July. Products shipped abroad are led by locally-made electronics comprising close to 2/3 of total exports. Clothing and apparel constitute 16% of the total outbound shipments. Brighter prospects are being projected for the electronics and apparel industries. If the increased goals are achieved, it will translate to an upward adjustment of our economic growth targets.
The other export products include crude and refined coconut oil, ignition wirings and wiring sets for vehicles and aircrafts, woodcrafts and furniture, tuna, bananas and other agri-products. As the world economy recovers, we should update our export projections – looking at the new business opportunities emerging after the global recession of the last three years. Thank God – the US and Euro economies –and so with that of Japan – are now recovering.
CONSULTATIONS: The P-Noy Aquino economic team will be visiting business leaders of the country – in Luzon, Visayas and Mindanao – in a bid to bring the government closer to those who are capable of stimulating business and industry. There are projected trips and meetings by the president and his cabinet members in Cebu, Davao and in Metro-Manila. Center of discussion will be the infrastructure and logistical support to be provided by the administration.
Eventually, there will be a list of priorities in the projects for public and private partnership (PPP). The tack is to give the local businessmen the first crack on the PPP open areas. Pres. Aquino will bring with him said PPP list when he travels to the US for his first state visit. The provincial consultations will serve as guide to the presidential cabinet in pursuing sectoral goals involving our provinces and cities.
REORGANIZATION: It is normal for new administrations to streamline the bureaucracy. The process can be availed of by President Aquino to cleanse the government of misfits – including some, if not all of the midnight appointees. The sooner this is done – the earlier we can economize on our public payroll. Indeed, there are many government agencies that are already redundant. These can be abolished without diminishing government efficiency and effectiveness.
The abolition of two units at the Bureau of Customs signals this reorganization plan. P-Noy must also review the role and relevance of certain government-owned and/or controlled corporations. Many were found to be milking cows of opportunistic officials and their relatives. If ever there will be new units for creation, they should be truly relevant and appointed personnel must be qualified and trustworthy.
LESSONS: Tell me – and I may forget. Show me, and yet I may not remember.
Involve me, and I will surely understand.