FACTORY OUTPUT DROPPED AT 2-YEAR RECORD / GOCC SUBSIDY TRIPLES IN NOV

MANILA, DECEMBER 29, 2011 (MANILA TIMES) Written by : DARWIN G. AMOJELAR SENIOR REPORTER - FACTORY output in October fell at its fastest pace in two years as nine of the 20 major sectors posted a sharp drop in production, the National Statistics Office (NSO) said.

Data from NSO showed that the volume of production index contracted by 6.3 percent in October from a revised 2.5-growth in September.

The October production figure was the weakest since September 2009 when VoPI contracted 11.2 percent.

The NSO blamed the sharp drop on the significant reduction in output of basic metals, machinery except electrical, food manufacturing, electrical machinery and footwear and wearing apparel.

On a month-on-month basis, VoPI posted a slight decrement of 2.5 percent in October.

Five of 11 major sectors influenced the decrease in production, particularly, electrical machinery, footwear and wearing apparel, paper and paper products, basic metals and fabricated metal products.

The average capacity utilization of polled factories stood at 83.1 percent in October, easing from 83.2 percent in September.

The NSO said sectors that posted more than 80-percent capacity utilization rates were basic metals, petroleum products, food manufacturing, non-metallic mineral products, miscellaneous manufactures, electrical machinery, rubber and plastic products, chemical products, paper and paper products, machinery except electrical and leather products.

The proportion of establishments that operated at full capacity stood at 15.2 percent in October.

About 60.7 percent of the establishments operated at 70-percent to 89-percent capacity while 24.1 percent operated below 70-percent capacity.

The value of production index (VaPI) also dropped by 6 percent in October from the revised 1.9-percent growth in September.

“This was brought about by the poor production performance of nine major sectors, with two-digit decreases reported by the following: basic metals, food manufacturing, electrical machinery, machinery except electrical, footwear and wearing apparel and fabricated metal products,” NSO said.

On a monthly basis, VaPI further fell by 1.9 percent in October.

The value of net sales index continued to accelerate as it reflected a two-digit increment of 12.3 percent in October, while the volume of net sales index increased in October by 12 percent.

Subsidy to GOCCs triples at end-Nov. Wednesday, December 28, 2011 00:00 Written by : KATRINA MENNEN A. VALDEZ REPORTER

THE Aquino administration nearly tripled its monetary support to government-owned or controlled corporations (GOCCs) at end-November.

Data from the Bureau of the Treasury revealed that the government gave up to P45.2-billion worth of financial aid to GOCCs, almost three times the P16.32 billion that was released during the same period last year.

In November alone, state support to government firms nearly tripled from only P4.68 billion in the same month last year to P13.46 billion this year.

The biggest recipient of taxpayers’ money was the National Housing Authority (NHA) with P12.98 billion.

NHA has been undertaking housing projects not only for marginalized Filipinos but also for the civil servants like the members of the Philippine National Police at a cost of P175,000 a unit.

Other state firms that were given subsidies in November were the Philippine Postal Corp. with P165 million, and the Philippine Coconut Authority with P54 million.

The biggest chunk of the subsidy during the first 11 months still went to NHA with P15.2 billion.

State lender Land Bank of the Philippines came in second with P7.93 billion, while the Philippine Health Insurance Corp. enjoyed P6.62 billion.

Finance Secretary Cesar Purisima said the government is undertaking a re-classification of state firms and a review of their corresponding assets to determine which may be ripe for privatization.

The objective would be to sift those state assets that can be commercialized and privatized from those that would remain under state ownership, and continue to receive monetary support from the government.

As of November, the government incurred a fiscals deficit of P96.25 billion, or merely 32 percent of its P300 billion full-year ceiling.


Chief News Editor: Sol Jose Vanzi

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