The Philippines tops foreign inflows among TIPs in 2010

Comparative Foreign Inflows to the Philippine Stock Exchange (ALLPI, PSEi) , Jakarta Composite Index , and Stock Exchange of Thailand  for the year 2010

Philippine Stock Exchange

Foreign Inflows:  $ 2.77 billion.

2010 All Shares Index Performance:  Up 56 %.

2010 PSEi Performance:  Up 38 %.

Jakarta Composite Index

Foreign Inflows:  $ 2.18 billion.

2010 Performance:  Up 46 %.

Stock Exchange of Thailand:

Foreign Inflows:  $ 1.9 billion.

2010 Performance:  Up 40 %.

Morgan Stanley favors TIPs over BRICs

Ruchir Sharma, the head of Morgan Stanley’s Emerging Markets favors TIPs over BRICs

Ruchir Sharma, the head of Morgan Stanley’s Emerging Markets says rapid growth can’t be sustained and it’s time to look for the next decade’s big growers for big returns. For the last decade it’s all about “BRICs” or Brazil, Russia, India and China, but after a decade of rapid growth, the world’s most celebrated emerging markets are poised to slow down.

In his interviews, Mr. Sharma, defines a “Breakout Nation” as:
a. a country that is able to beat expectations in terms of growth rate
b. a country that’s able to grow faster than other countries in the same income class per capita income

Here’s the 5-Year GDP (Gross Domestic Product) Forecast of the Breakout Nations

Philippines:  6.0% GDP Growth 2012-16
Indonesia:    6.5% GDP Growth 2012-16
Poland:        4.0% GDP Growth 2012-16

Source: Morgan Stanley Investment Management

Below is the IMF GDP Growth Forecasts

                      2012    2013       2017
Indonesia         6.1%    6.1%       7.0% 

Philippines       4.2%    4.7%       5.0%

Turkey             2.3%    3.2%       4.6%  Source: Breakout nations by Ruchir Sharma

All 3 countries favored by Morgan Stanley also belong to Goldman Sach's Next 11 group of emerging economies.

http://www.pnoytrader.com/2012/05/forget-the-brics-buy-tip/

The Philippines: Top Ranked in Wind Power Potential

     The Philippines and Indonesia have the greatest wind power potential worldwide.

     Being an archipelago, the Philippines naturally has immense wind power potential and this is largely untapped with only 1 wind farm in Ilocos Norte but further projects are firmly in the pipeline.  These include:

1. PNOC-Energy Development Corp. (PNOC-EDC) 140 MW in Ilocos.

2. UPC Asia (100 MW)

3. Energy Logics (40-60 MW)

4. A Spanish firm in Burgos province (10-15 MW)

5. Aklan project (10-15 MW)

6. Bulalacao project (40 MW)

     Further projects in 16 sites that are ideal locations for wind farms have been offered by the Philippine Department of Energy to investors.  The sites are:

Bago City and Cauayan in Negros Occidental; Carmen and Oslob in Cebu; Allen-Lavesares and Calbayog City in Northern Samar; Siquijor; Pasuquin, Ilocos Norte; Bantay, Ilocos Sur; Bani and Bolinao in Pangasinan; Maconacon, Isabela; Tagaytay, Cavite; San Andres, Quezon; and Mercedes and Daet in Camarines Norte.

     Other projects being studied include those US firm Constellation Energy Corp.  The company is studying two projects in Ilog, Negros Occidental and Bais City, Bayawan, Tanjay and Pamplona in Negros Oriental.

     The best places for wind power projects in the Philippines are found in the islands of Batanes, Babuyan Island, Ilocos Norte, Mindoro, Samar, Leyte, Panay, Negros, Cebu and Palawan.

Source:  alternat1ve.com

The Philippines: Tremendous Potential in Renewable Energy

     A study conducted by the Renewable Energy Coalition states that the Philippines has the following renewable energy potential:

1. Geothermal - 4,531 MW  (200,000 MW based on the United States Department of Energy National Renewable Energy Laboratory)

2. Hydro electric - 13,097 MW

3. Wind -76,600 MW

4. Wave (Ocean) - 170,000 MW

5. Biomass – 500 MW (conservative estimate)

6. Solar Power - 5 ~ 5.1 KwH per square meter per day.

Source: Alternat1ve.com, renewableshub.com

The Philippines is one of The Next Eleven

     The Next Eleven (or N-11) are eleven countries — Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey, and Vietnam—identified by Goldman Sachs investment bank as having a high potential of becoming the world's largest economies in the 21st century along with the BRICs (Brazil, Russia, India, China). The bank chose these states, all with promising outlooks for investment and future growth, on December 12, 2005.

     Goldman Sachs used macroeconomic stability, political maturity, openness of trade and investment policies, and the quality of education as criteria. The N-11 paper is a follow-up to the bank's 2003 paper on the four emerging "BRIC" economies, Brazil, Russia, India, and China.

http://www.chicagobooth.edu/alumni/clubs/pakistan/docs/next11dream-march%20'07-goldmansachs.pdf

http://www.ryanallis.com/wp-content/uploads/2008/07/expandingmiddle.pdf

http://www2.goldmansachs.com/our-thinking/brics/brics-reports-pdfs/long-term-outlook.pdf