RP economy grows by 4.1-4.3%

RP economy grows by 4.1-4.3%

MANILA: The Philippines' economy is estimated to have grown by between 4.1 and 4.3 percent last year, Finance Secretary Jose Isidro Camacho said Monday.

The figure for gross domestic product (GDP) growth is within the government's official target of between 4.0 and 4.5 percent for the year, he said.

"I think we exceeded everyone's expectations, including our own," Camacho told the Foreign Correspondents Association of the Philippines. Most economists had expected that economic growth in 2002 would fall below the government's target.

Growth was underpinned by services and exports, which also helped the manufacturing sector, he said. -- AFP

EC to unveil economic report

LONDON: The European Union is losing its battle to become the world's most competitive economy by 2010 because of sluggish growth and lack of political will to promote economic reforms, the European Commission will warn on Tuesday, the Financial Times reported.

The document on the economic future of the European Union highlights the risks of a "two-tier" Europe where some countries - such as Sweden and Denmark - are doing much better than others such as Greece, Italy and France, the financial daily said.

The Commission warns that the difference in performance will be exacerbated by the accession of another 10 countries, mostly from eastern Europe, in 2004.

The document sets out the Commission's position ahead of an EU summit in March.

"It could raise tensions with some EU governments, such as France and Germany, which take a dim view of Brussels' reprimands on economic reform," the paper said. -- AFP

PM regrets exodus of foreign CEOs

SINGAPORE: The departure of foreign chief executive officers (CEOs) from big Singapore companies could hurt efforts to draw foreign talent, the prime minister said in remarks published Monday.

"One after another, you find that the GLCs (government-linked companies) have retired prematurely their CEOs," Prime Minister Goh Chok Tong was quoted as saying in the Straits Times.

"I am unhappy because it creates an impression that Singapore doesn't welcome foreign talent, but that impression must be removed," the 61-year-old leader said.

Importing foreign talent would remain a cornerstone of the government's policy given the island's small population base, he said.

Goh's remarks came after the sudden departure last week of Flemming Jacobs, a 59-year-old Dane who headed state-linked shipping company Neptune Orient Lines (NOL).

Jacobs' contract was not up for renewal until the middle of next year and he told a Danish newspaper that NOL's weak performance had to do with his departure from the company.

Other foreign CEOs who resigned last year included Philippe Paillart from DBS Holdings and Thomas Kloet from the Singapore Exchange. -- AFP

Japan cuts reliance on Daqing oil

SINGAPORE: Japan has reduced its reliance on term imports of Daqing crude oil in a bid to diversify crude sources amid falling production at Daqing - China's largest oil field, traders said Monday.

China-based oil traders pegged Japan's purchases of Daqing crude at 3 million metric tons last year compared with 8 million tons/year five years ago, and they expect this year's volume will be even lower than last year.

China National United Oil Co., or Chinaoil, the government- appointed entity for exporting Daqing crude to Japan, will start negotiations Wednesday with Japanese trading house in Beijing on Daqing sales volume and prices for 2003.

"Japanese traders now have more sources to get alternative supplies such as Indonesia's Minas (crude), thus reducing imports of Daqing crude," said one China-based oil trader.

He said Japanese trading house Idemitsu Kosan Co. last year proposed cutting Japan's 2002 Daqing crude purchases to below 3 million tons/year, but then agreed to roll over the year-earlier import volume of 3 million tons. Idemitsu represents Japanese oil companies that import Daqing crude. -- Dow Jones

Dubai readies $410m bond issue

DUBAI: Dubai will shortly issue a US$410-million bond to help fund the hosting of the September 2003 joint meeting here of the World Bank and International Monetary Fund (IMF), organisers said Monday.

The bond will be "launched early in 2003," said Ibrahim Belselah, coordinator of "Dubai 2003" and government representative for the bond issue.

"The issue sends a clear signal about the intention of Dubai to become a major international financial center and will contribute to the development of the United Arab Emirates capital market by creating a liquid five-year benchmark," Belsaleh said in a statement.

The bond, the first to be issued by the Dubai government and the first fixed-interest rate bond to be listed in the UAE, will have a five-year tenor with a bullet repayment.

Joint lead arrangers are Emirates Bank International, HSBC Financial Services (Middle East) Ltd., National Bank of Abu Dhabi and Standard Chartered Bank. ABN AMRO is financial consultant to the issuer. -- AFP