Why are ambassadors trade groups visiting Baste Duterte in Davao? Sign of forthcoming investment in Mindanao

Nation building via learning and being the best in business

There has been a series of events in Davao showing top foreign dignataries and trade groups visiting Mayor Baste Duterte in Davao.  What do these visits mean?   Does it mean more investment for Davao?  Are we right in planning to invest in Mindanao

Businesses I would like to be in if given longer life

Nation building via learning and being the best in business

If given longer life, aside from the current businesses I am engaged in this post would like to engage in the future (near and long term)

      1.  Agri forestry -  tree farming agar wood and other timber products;   bamboo

      2.  New materials -  bamboo for construction low cost housing

      3.  Low cost housing  for the real buyers  below P1M near train lines and suburbs

      4.  Agri -  coco and  fuel  -  sugar  energy

      5.  Pharma

      6.  Finance  -  insta lending to customers using the MCF and other funds...

But pursue core businesses in Mindanao:   major southern cities.  

Rash of business closures hound MSMEs

Nation building via learning and being the best in business

This post has seen at Soc Media a gallery of pictures saying good byes to their customers as they are closing down:   resto, coffee shops, meat shops garment store and the like.  A never ending parade of buienss closures.   Now many are not so sure of what happens next.  

The barber where this post went to for hair cut says business has been bad -  people scrimping on their haircut.   Visa has been complaining of decline in CC purchases from the Philippines.   

What could be behind this?    Lack of available credit and working capital for MSMEs.  The scarcity has placed interest rate for MSME at 3-4% per month.      (Thats 36 to 48 % pa)    The BSP increase in rate has something to do with this (to combat inflation).

The govt focuses too on ayudas on flood control, on persecution of top officials enemy... Tsk tsk  not the exchange rate and which happens despite a  think tank and sky high salaries...

Philippine economy despite the dark clouds ahead: energy, peso to dollar exchange rate, unemployment etc. remain stable

Nation building via learning and being the best in business

GDP ranking 2026, Worldfactsbooks

The Philippine economy is facing a lot of serious challenges:   the highest inflation in the region at 7.2;   rising gasoline prices, low GDP per capita, more unemployed adults (3 million of the labor force)  It is a cause for concern for many citizens.  

What is noticeable is that Phil GDP is one of the highest in the world, ranked 34, even ahead of Malaysia Finland, Sri Lanka, Denmark, Kuwait, Greece, New Zealand,  Venezuela, Panama, Pakistan Iran.  How nice.  How great.  .What is happening to the PHL are just hiccups.  They will vanish away

Who knows, the problem  in Europe that involves, Italy, Germany, Spain and France may pull them down and pull up the Philippines a couple of rungs.  

From wikipedia

The economy of the Philippines is an emerging market, and considered as a newly industrialized country in the Asia-Pacific region.^[30] In 2026, the Philippine economy is estimated to be at ₱30.22 trillion ($512.22 billion), making it the world's 35th largest by nominal GDP and 14th largest in Asia according to the International Monetary Fund.

The Philippine economy is a service-oriented economy, with relatively more modest contributions from the manufacturing and agriculture sectors. It has experienced significant economic growth and transformation in the past, posting one of the highest GDP growth rates in Asia. With an average annual growth rate of around 6 percent since 2010, the country has emerged as one of the fastest-growing economies in the world.^[31] The Philippines is a founding member of the United Nations, Association of Southeast Asian Nations, Asia-Pacific Economic Cooperation, East Asia Summit and the World Trade Organization.^[32] The Asian Development Bank (ADB) is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila.

Stats:   

Downgrading, discounting deals now because of pending economic difficulty

Nation building via learning and being the best in business

You can feel in your veins that the economic challenge is now here posed by:   rising interest rates, inflation, energy rising prices, threat of ME war.   Really revenues have declined. 

So in the current deal, the agreements cant be enforced forcefully, investors have retreated.  Funders lenders have upped their rates.   

So in a current deals that are pending, we are taking our time and reevaluating.  One deal that is pending was a sale with 4 year term, running into 9 numbers.  Lately the owner is willing to go on a jv with jsut a minimal cash out.  

Times are bad  Tough times.   Its an oppotunity to be conservative, lower prices and expectations

Making a mistake in investment in a pre need company - bane or blessing?

Nation building via learning and being the best in business

This post led our board to invest in a pre need company that is supposed to supplement our business. We dreamt of building a big company  on pre need business from our existing customer.   We bought a 9 numbeer company that is practically a shell company:   no customers, no operations but mostly assets.  

We acquired it for a low 7 numbers;   however we were not able to operate it or get a license renewal because the supervising agency said there was capital deficiency.  The seller being a fmr high ranking govt employee said it could be fixed.  It wasnt fixed.

We renewed focus on our existing hard asset business.   It was easier to sell with concrete hard asset to sell; selling paper and contracts wasnt isnt.  

We saw how difficult the situation is for pre need/plan business.    A promo for free interment in a lot contract that was quoted at P30,000  now costs P50,000 to implement and deliver.  Thats a loss of P20,00 per contract.   Fortunately for us, it could be the last.

Lets analyze what happened.    The high inflation rate, and very poor returns on investment caused all of these.   Investments were 3-4% pa;     inflation is at 7-8% thats a difference of 100%.    4% difference in investment and inflation  x 10 years =  40%.     For instance the main cost component stood at P3,000;   now it cost P10,000.

Are we glad that we did not pursue and illusory business.  We are in concrete discrrete products to sell. 

Thus we view with alacrity the giant in the industry.    If such is the reality in their business, potentially somewhere in the system, even if theey have their own facility for delivery, the system has still that loss P20,000 each .  And for say 100,000 contracts, the contract inventory loss could be as much as P20B -  how can that be recovered...?

God still loves us andour group and he did not lead into damnation.   I am led to agree with the allegation of many groups in this bueiness that the supervising govt  mandate is get the remaining players