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 

Opportunity during economic downturn

Nation building via learning and being the best in business

This post sees many investors running away from stocks in view of the perceived scandals in flood control the middle east war,  and unbridled inflation (now at 7.8%) hence the index at PSE sees horrendous decline.  This is the reason why at some point at the peak of stock market, you should be liquid.  When the stock market crashes, it is time to do bargain hunting and vulture investing to take advantage of falling stocks.  

Others see nothing but doom

Today I saw and learned a pending deal decline from a cash out of 9 numers to mere 7 numbers.  The owners of the land now agree to a joint venture to lessen the developers downside.   If we had more money we would go more on vulture investing.  Not within our morality though, and we dont have the resources.

Germany's smart recycling system - why cant other govt copy this

Nation building via learning and being the best in business

There are many Waste to Energy Companies abroad, even local ERC is encouraging bids for WTE.  Thie is the next big problem opportunity for companies:  to recycle materials.  Reason to have cheaper source of materials and save energy.   

It is more expensive to get rid of garbage.  We are running out of landfills.

It is important to note some important innovation:

1.  Recycling refund kiosk  that pays back deposit for bottles cans and other plastics that are required 

2.  Car recycling center that takes back oil, coolant and other toxic waste before taking back plastic and metals from cars..  Recycling centers recycle up to 95% of the old cars

Location location as impt in a project; does it still matter?

Nation building via learning and being the best in business

We have made that as unwritten rule of the thumb that our project must be located not more than 3 km from the church.   It matters now because the site we are looking at looks to be 6 km away from the town proper.   And may look not very attractive to the buyers.  Although the municipal institution is about 5 km away, its a short distance away.  

We looked at our sites and found out that two have distances of more than 5 km away.  Dalumpines, Agdao and Calamba   And yet they sell.

Is being near a place of worship still important in our business?  It looks like the internet, better travel -  mc bikes have made this point in business, not very important any more.   Do you agree?

This one is 6.2 km away.