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Palay farmgate prices continue falling in Sept.

THE average farmgate price of palay, or unmilled rice, fell 2.4% from a week earlier during the first week of September to P16.28 per kilogram (kg), the Philippine Statistics Authority (PSA) said.

The PSA said the average wholesale price of well-milled rice fell 0.4% week-on-week to P38.62 per kg. At retail, the price fell 0.3% to P42.26.

The wholesale price of regular-milled rice fell 0.6% to P34.40 per kg week-on-week. The retail price fell 0.4% to P37.83.

The PSA also reported that the farmgate price of both yellow and white corn grain fell during the period. Week-on-week, the farmgate price of yellow corn grain fell 0.2% to P13.04 per kg. The average wholesale price was stable at P21.53, but the retail price rose 0.4% to P26.06.

The average farmgate price of white corn grain fell 1.0% week-on-week to P14.38 per kg. The average wholesale price dropped 0.9% to P17.67. The average retail price fell 0.5% to P26.78. — Vincent Mariel P. Galang

Electronics-dependent economies seen taking a hit from trade war

ECONOMIES in developing Asia heavily exposed to the electronics sector could suffer disproportionately from the US-China trade war, economists tracking the region said.

“Electronics is more important to developing Asia compared to the rest of the world,” Abdul Abiad, director for Macroeconomic Research at the Asian Development Bank’s Economic Research and Regional Cooperation (ERRC) Department at the Asian Development Bank (ADB) said.

He was speaking at a forum jointly organized by the ASEAN Society of the Philippines and the Management Association of the Philippines (MAP) in Makati on Sept. 27.

Mr. Abiad noted that electronics make up more than half of the Philippines’ exports. According to the Philippine Statistics Authority, electronics accounted for 55.6% of export sales in July, up 2.9% year-on-year.

The region could also benefit from the trade tensions when manufacturers relocate to evade tariffs.

“On the whole, the trade conflict could potentially benefit the rest of developing Asia… It’s now more expensive… for US customers to buy goods from China,” Mr. Abiad said.

According to Park Cyn-Young, also a director at the Regional Cooperation and Integration Division of ADB’s ERRC, ASEAN’s share of the world’s exports grew to 7% in 2018 from 6% in 2006.

In the midst of a global slowdown, the ADB has trimmed its growth forecast for developing Asia, which includes 45 countries in the Asia and the Pacific, to 5.4% in 2019 from its initial forecast of 5.7%. For 2020, the regional lender expects such countries to grow 5.5%, down from their initial forecast of 5.6%.

ADB has likewise further scaled down its outlook on Philippine economic growth to 6% from its already downgated 6.2% outlook in July.

Despite the global headwinds, ADB country director for the Philippines Kelly Bird said Thursday that “reasons why Philippine economic growth is resilient (are)… very strong macroeconomic policy settings, lower inflation, with rather low national debt… and the policy setting in terms of central bank and fiscal setting are really sound.” — Luz Wendy T. Noble

LGUs ordered to certify projects backed by support fund are ongoing

THE Department of Budget and Management (DBM) said local government units (LGUs) have until Nov. 30 to submit a certification for the awarded contracts covered by assitance from a support fund assistance.

According to DBM’s local budget circular no. 116B, awarded contracts funded through the Local Government Support Fund — Assistance to Cities (LGSF-AC) will have to be certified as ongoing and due for completion on a specific date beyond this year.

The certification should also cite the amounts received and to be disbursed to contractors and should be signed by the Mayor and the City Accountant.

DBM said the certification will ensure “timely completion of projects” supported by the funding scheme.

“Concerned LGUs are requested to submit a certification signed by the City Mayor and the City Accountant that: (i) the project is already ongoing and will be completed on a specific date but beyond 31 December 2019; and (ii) the funds received from the LGSF-AC will be disbursed to the concerned contractor according to the approved payment schedule/progress billing,” according to the circular.

The LGSF-AC is used to finance the construction, rehabilitation, repair or improvement of public open spaces.

The circular, dated Sept. 25, was signed by DBM Acting Secretary Wendel E. Avisado.

Meanwhile, an earlier Circular No. 116-A quoted in the statement said that “funds which remain unutilized as of 31 December 2019 shall be reverted to the National Treasury by the recipient cities.” — Beatrice M. Laforga

Shiseido sets up PHL subsidiary, sees double-digit growth

JAPANESE cosmetics firm Shiseido Co., Ltd. has set up a Philippine unit to strengthen its presence in the country, with the investment viewed as a bet on the growth of the domestic beauty industry.

In a briefing late Thursday, the company launched Shiseido Philippines Corp., a joint venture between Shiseido Asia Pacific Pte. Ltd. and distributor Luxasia Partners Pte. Ltd.

“The middle income class is expanding. And we noticed that a lot of people love Japan, the image of Japanese brands is quite positive. So we thought it was time to establish our company in the market,” Shiseido Philippines Managing Director Koji Nakata said in the briefing at Bonifacio Global City.

Shiseido initially entered the Philippine market through a distribution deal in 1990. The company subsequently launched upscale cosmetic brands Nars and Laura Mercier.

Its portfolio also includes fragrances such as Dolce & Gabbana, Elie Saab, Issey Miyake, and Narciso Rodriquez, as well as cosmetic, healthcare, and personal care products.

With an increased presence in the Philippines, Mr. Nakata said the company expects sales to grow at a double-digit pace this year. He declined to give a detailed projection.

The company is banking on its Prestige business, or its upscale brands division, to be one of the main drivers of growth.

Shiseido is also counting on the introduction of mass market brand Senka, whose product line includes facial cleansers priced at about P300. The company will officially launch the brand by end-October.

The company currently has 27 counters located inside shopping malls. Asked if it plans to add more, Mr. Nakata said it will depend on finding suitable locations.

“If we can find the best locations… maybe we can add some counters in the near future,” Mr. Nakata said.

Shiseido Asia Pacific President and Chief Executive Officer Jean-Philippe Charrier added that strong foot traffic in shopping malls will help boost sales moving forward.

“I think the shopping malls are amazing, they drive a lot of traffic in the weekends and I think this is a very good environment for our brands,” Mr. Charrier said in the same briefing.

While its products are more expensive than those on offer from domestic brands, Mr. Nakata said the company expects current patrons of domestic brands to be future customers.

“The make-up user is expanding. They will be our potential customers for the future, because in the future they want to use more high-quality and prestige brands,” Mr. Nakata said. — Arra B. Francia

Phinma cement unit to buy land, port at Bataan plant site

PHINMA Corp. said its cement unit is buying the port facilities and land at its Bataan cement processing terminal for P800 million.

In a statement Friday, the listed company said its 60%-owned unit Philcement Corp. has signed an agreement for the acquisition and takeover of the assets which it previously leased.

“This new agreement and additional investment will be a meaningful part of Phinma’s strategy to provide cost-efficient and reliable supply of construction materials to our customers,” Philcement President and Chief Executive Officer Eduardo A. Sahagun said in a statement.

The cement facility and its port are scheduled to start operations by the fourth quarter of this year. The company earlier said it will have a capacity of two million tons a year.

Phinma said the investment will strengthen its position in the cement industry.

The company in 2004 sold its majority interest in Union Cement Holdings Corp., which was then folded into listed cement manufacturer Holcim Philippines, Inc.

It decided to revive the business due to the growing demand for cement and construction materials in the country given the government’s infrastructure program.

Philcement will sell and distribute cement in selected areas under the Union Cement brand.

Phinma has also branched out to Southeast Asia through a $50-million investment with Song Lam Cement Joint Stock Corp., a subsidiary of Vietnam’s largest privately-owned cement manufacturer.

Incorporated in 1957, Phinma also has investments in education, property development, and hospitality.

Phinma’s net income attributable to the parent fell 35% to P27.84 million in the first half, amid a 26% jump in gross revenue to P5.64 billion.

Phinma shares rose 1.55% or 16 centavos to close at P10.50 on Friday. — Arra B. Francia

PNB to issue P20-billion notes

PHILIPPINE National Bank will raise P20 billion in fresh bonds through a second offer of long-term negotiable certificates due in 2025, the lender said in a statement to the stock exchange on Friday.

In a filing, the Lucio C. Tan-owned bank said the notes will carry an indicative interest rate of 4.25% to 4.375%, with the final rate to be determined during the offer period.

The notes will extend the maturity profile of the bank’s liabilities as part of its overall liability management to support compliance with required central bank liquidity ratios. Proceeds of the notes will also be used for general corporate purposes, the bank said.

The notes offer higher interest rates similar to regular time deposits. But these can’t be pre-terminated but can be sold in the secondary market, making them negotiable.

The lender said the notes will be insured with the Philippine Deposit Insurance Corp. “for up to the maximum insurance coverage and subject to PDIC’s applicable rules and regulations.”

PNB will issue the notes on Oct. 11, with Hong Kong and Shanghai Banking Corp. acting as the sole lead arranger. The selling agents include PNB, HSBC, First Metro Investment Corp. and Multinational Investment Bancorporation. — Luz Wendy T. Noble

Peso strengthens after BSP cuts rates

THE peso strengthened against the dollar on Friday on positive market sentiment after the Philippine central bank cut benchmark interest rates by 25 basis points.

The local currency closed at P51.875 a dollar, 23.5 centavos stronger than a day earlier.

The peso opened at P52.15 and weakened to as much as P52.18 against the dollar. It reached an intraday best of P51.86.

Dollars traded rose to $1.21 billion from $1.15 billion on Thursday.

Atrader traced the stronger peso to positive sentiment arising from the latest round of policy rate cuts.

“The peso was stronger on the back of good economic prospects, with the Monetary Board cutting policy rates further,” he said. “Even though they did not cut the reverse repurchase rate, players expect there will be positive spillover from the Bangko Sentral ng Pilipinas’ (BSP) recent action,” he added.

Another trader said the peso was just tracking other Asian currencies against the dollar. “We are seeing that the flows are favoring the peso right now.”

The central bank on Thursday cut interest rates for the third time this year by another 25 basis points, bringing the overnight reverse repurchase rate to 4% and the overnight deposit and lending rates to 3.5% and 4.5% respectively.

The board left lenders’ reserve ratio requirement untouched at 16% for big banks, 6% for thrift banks and 4% for rural and cooperative banks. — Luz Wendy T. Noble

NG outstanding debt rises on weaker peso

THE National Government’s outstanding debt rose 1.73% or P135.03 billion from a month earlier to P7.939 trillion as of end-August, due to the peso’s depreciation and net issuances of both external and domestic loans, the Treasury bureau said in a statement on Friday.

Of the total stock, 33.59% came from external markets while 66.41% was borrowed locally. National government debt increased by 8.9% or P646.58 billion from end-2018 and by 11.8% or P835.23 billion from a year earlier, it said.

National government domestic debt reached P5.272 trillion, 0.4% or P21.63 billion higher than a month earlier. The increase in the domestic debt in August was the combined effect of the net issuance of government securities worth P21 billion and the P630 million impact of the peso’s depreciation on onshore dollar bonds, the Treasury said.

US Senate body wants de Lima critics barred

A SENATE committee in the United States has endorsed a bill barring Philippine officials involved in the “politically motivated imprisonment” of Senator Leila M. De Lima, a staunch critic of President Rodrigo R. Duterte’s war on drugs.

US Senator Dick Durbin tweeted on Friday that the Senate appropriations committee had approved the measure. “We must free Leila now,” he said.

“The palace considers such undertaking as a brazen attempt to intrude into our country’s domestic legal processes given that the subject cases against the detained senator are presently being heard by our local courts,” presidential spokesman Salvador S. Panelo said in a statement.

Ms. de Lima has been detained since February 2017 after she was indicted for allowing the illegal drug trade inside the national jail in Muntinlupa City while serving as Justice secretary.

Mr. Duterte’s political opponents have accused him of attempting to quash dissent after Ms. de Lima’s arrest in 2017. The senator has been criticizing the president’s drug crackdowns since he was a local mayor.

Mr. Panelo said the bill seeks to pressure the country’s independent institutions, “effectively interfering with our nation’s sovereignty.”

Mr. Panelo said the measure is an insult to the competence of Philippine authorities and makes it appear that the US Senate panel “has the monopoly of what is right and just.”

“It is an outright disrespect to our people’s clamor for law and order,” the spokesman said “It treats our country as an inferior state unqualified to run its own affairs.” — Arjay L. Balinbin

Duterte to visit Russia next month

PRESIDENT Rodrigo R. Duterte will explore trade and investment opportunities when he visits Russia next month, according to the Foreign Affairs department.

The president will sign cooperation agreements in the areas of research, health and culture during his second visit to Moscow from Oct. 1 to 5, Foreign Affairs Assistant Secretary Ma. Amelita C. Aquino told reporters at the presidential palace on Friday.

Russian President Vladimir Putin had invited Mr. Duterte, she said.

Mr. Duterte will hold a bilateral meeting with his Russian counterpart to discuss “how both sides can further enhance and expand our cooperation in various areas,” she said.

The two leaders will also witness the signing of several bilateral agreements covering culture, health and basic research.

Mr. Duterte will visit the cities of Sochi and Moscow. He will attend a forum in Sochi on Oct. 3 along with Mr. Putin, Ms. Aquino said.

In Moscow, the president will attend a business Forum to promote trade and investment opportunities between the two countries. It will also serve as a venue for networking between Russian and Filipino businessmen, according to Ms. Aquino.

Mr. Duterte is also scheduled to meet with the Filipino community there.

Mr. Duterte first visited Russia in May 2017 but this was cut short after terrorists attacked Marawi City in southern Philippines.

His meeting with Mr. Putin will be the fourth time, Ms. Aquino said. — Arjay L. Balinbin

Police chief says ready to face drug charges

POLICE chief General Oscar D. Albayalde on Friday said he was ready to answer allegations at the Senate that he belonged to a group of rogue police officers connected to the illegal drug trade inside jails.

Mr. Albyalde would clarify the issue of so-called “ninja cops” — high-ranking police officers allegedly involved in the recycling or illegal drugs retrieved from legitimate operations, the Philippine National Police said in a statement on Friday.

Former Criminal Investigation and Detection Group chief and now Baguio City Mayor Benjamin B. Magalong earlier told senators top police and jail officials were involved in the recycling of illegal drugs.

“The PNP’s internal cleansing will be relentless and will continue until all rogue cops especially those involved in illegal drugs will be weeded out from the service and charged in court,” Mr. Albayalde said in the statement.

The Senate justice and blue ribbon committees invited Mr. Albayalde and 15 other police officers allegedly involved in the illegal drug trade at the next committee hearing on Oct 1.

Meanwhile, the Justice department has issued a lookout bulletin order against the alleged drug queen involved in the recycling illegal drugs with rogue cops.

The order would allow authorities to monitor her flight itineraries and whereabouts overseas, according to a copy of a memo issued by Justice Secretary Menardo I. Guevarra to the Immigration bureau.

The Philippine National Police has said it was conducting a case build-up against the drug queen so it can file appropriate charges. — Marc Wyxzel C. Dela Paz and Gillian M. Cortez

Ex-senator summoned to DoJ

GOVERNMENT prosecutors summoned former Senator Antonio F. Trillanes IV after he was charged with kidnapping of a woman back in 2016.

The former lawmaker was ordered to appear at a preliminary investigation at the Justice department next month, according to a copy of the summons.

Prosecutors also asked Mr. Trillanes to submit his answer and other supporting documents.

“Failure on your part to comply with the subpoena shall be considered as a waiver of your right for investigation and confirm the allegations of the complaint,” according to a copy of the order signed by Assistant State Prosecutor Gino Paolo S. Santiago.

A woman filed a complaint against Mr. Trillanes in August accusing him of kidnapping and detaining her for two weeks. The complainant claimed she had been forced to agree to slander the administration of President Rodrigo R. Duterte.

Mr. Trillanes has denied any wrongdoing. He said it was highly suspicious that the case was filed three years after it allegedly happened. — Gillian M. Cortez

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