ASEAN KEY DESTINATIONS
Conglomerates spending up
The figure may be on the light side since it excludes SMC’s investments in energy, said First Grade Holdings.
Telecommunications account for a large portion of capital spending at more than P60 billion, followed by public infrastructure at about P57 billion excluding recent government announcements on boosting spending in this area. Real estate comes in third with P24 billion.
Del Castillo said the group of Manuel Pangilinan, who chairs MPIC, is the largest business group in the country in terms of market capitalization, turnover, earnings before interest, taxes, depreciation and amortization and capital expenditures.
MPIC, which is investing P49.2 billion, is an important contributor to the economy with total turnover equivalent to approximately 6 percent of the nation’s gross domestic product, del Castillo said.
The Ayala Group, which has allocated P40.57 billion, has been “a little more conservative than the other business groups in expanding,” First Grade Holdings said. “Banking, real estate and telecommunications continue to drive its growth, while its entry into infrastructure through Manila Water has performed an ‘excellent’ job.’”
JG Summit has allotted P33.03 billion for its investments and its bid for San Miguel Pure Foods Co. Inc. suggests it is keen to double its consumer goods investments.
“With the varied mix of assets in their portfolio and the planned expansion of their consumer goods business, it might make sense for them to dispose of the smaller parts of the portfolio that can be viewed by the market as distractions,” del Castillo said.
Tetangco said President Benigno Aquino 3rd’s focus on PPP will be a big boost to the country’s FDI.
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