The Philippine construction industry was among the largest economic powerhouses in 2011, and it is forecasted that it will remain to be so in the following years. From 2009 to 2013, the compound annual growth rate (CAGR) of the construction industry reached 12.01% due to robust public investments in the infrastructure and residential markets. Experts reported that the same public investments would be the main growth drivers in 2014-2018, which is equivalent to 9.90% CAGR. Construction of more residential properties, bridges, roads, offices, and power plants will contribute to the growth of the construction industry.
The current Duterte administration is set to commence the “golden age of Philippine infrastructure” with its ‘Build, Build, Build’ program. In an effort to keep up with the demands of one of the fastest growing economies in Asia and improve the performance of the Philippine currency, the government plans to spend $180 billion over the course of six years.
The Philippine construction industry is projected to remain strong as experts predict that it will sustain a 50% growth by 2020. According to a report published by the London-based Timetric’s Construction Intelligence Center (CIC), the country’s construction industry “is seen to grow to $47 billion by 2020 from $30.2 billion last year on a compound annual growth rate of 9.22 percent.” The report added that the current favorable government policies in expanding infrastructure both in the national and local level will further improve the industry’s growth.
Last April 18, 2017, during the “Dutertenomics” forum held in Pasay City, the Duterte administration revealed a plan to boost the overall infrastructure of the country. Known as the three-year rolling infrastructure program (TRIP), the current administration plans to pour in 3.6 trillion pesos to commence the golden age of infrastructure in the Philippines.
Financial institutions are not excluded from the challenges of marketing and keeping a constant flow of customers coming in to seek their services. They have found that one of the most effective sources of new customers is through current customers of the bank.
Do not be surprised if your customer asks for an extension to repay their debt. That is the current trend in the financial world. A recent survey on working capital found that extended repayment terms are on the rise. A request for an extended repayment period may be a sign of trouble. It could also be a sign of a "new way of managing cash flow," regardless of the ability to repay a debt or cash flow status of the business.
We continue with highlights of the McKinsey article “Strategic choices for banks in the digital age” while relating it to features in the copyrighted CreditBPO Rating Report®.
In their article “Strategic choices for banks in the digital age”, Henk Broeders and Somesh Khanna of management consulting firm McKinsey & Company, enumerate compelling actions that banks will have to undertake if they are to survive.
The United Nations has set the 2030 Agenda for Sustainable Development of achieving 17 sustainable development goals globally by 2030. The goals listed range from promoting sustainable use of natural ecosystems to the ending of poverty. Due to the ambitious scope of these goals, efficient application of Science, Technology and Innovation (STI) is required on multiple levels from the municipal to the international. Thus a clarion call for innovations was made through the U.N.’s partners that spans an expansive global network. This Call to Action culminated in the 1st Multi-stakeholder STI Forum for SDGs (Sustainable Development Goals). The Vision: Ensure that no one is left behind.
Unlike their contemporaries in developed nations, Small Medium Enterprises (SMEs) in developing countries are at a disadvantage due to, among other things, a lack of access to a centralized credit bureau to maintain and compile credit worthiness scores. This limits communication about credit worthiness in the greater market and this hampers the SMEs overall access to credit.