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Returning to Binondo

ALTHOUGH recent events have made locals paranoid about the seemingly overwhelming presence of Chinese in certain areas of the metropolis, one needs to remember that Filipinos and Chinese have been working side by side even before local recorded history. For centuries now, Filipinos been trading with the Chinese, proven by archeological excavations over the last hundred years or so.

The country also has a sizeable population of Filipinos of Chinese descent, and a lot of our leaders — in business, government, even religion — are part Chinese. Many Pinoys have Chinese blood running through our veins.

In what might be considered a case of perfect timing, this weekend at The Theatre at Solaire, a rerun of Binondo, A Tsinoy Musical, will be staged.

The musical’s first staging last year bagged quite a number of honors — six Aliw Awards for Best Original Musical Production, Best Composer for Original Musical Theater (Von de Guzman), Best Ensemble Performance, Best Actress (Carla Guevara-Laforteza), Best Actor (David Ezra), and Best Stage Director (Joel Lamangan).

There will be a Gala performance on July 12, 8 p.m., and regular shows on July 13 at 3 and 8 p.m., and July 14 at 3 p.m.

Topbilling the musical are Shiela Valderrama-Martinez as Lily, Arman Ferrer (replacing David Ezra) as Ah Tiong, Noel Rayos as Carlos, and Mariella Laurel as Jasmine.

At a press conference at Solaire, original storyteller and line producer Rebecca Chuaunsu said, “This is God-given. It’s overwhelming (that) after we won six Aliw Awards, a Singporean producer picked this up to rerun it. It’s really a provision from God. I am so happy and overwhelmed that he is supporting Binondo, A Tsinoy Musical.”

She was referring to Micky Yong of the Maritess Alava-Yong Foundation, Inc. who said that he was producing the musical because his late wife Maritess “was very much into the arts.” The foundation was created to honor the compassionate Ms. Alava-Yong and “to continue her legacy of giving.” Mr. Yong has so far contributed over P130 million to carry out the mission of the goodwill non-profit foundation.

Director Joel Lamangan pointed out that the musical talks about love — “unrequited love, the love of a man, love of a friend, love for a mother, love for one’s motherland.”

To which co-playwright Eljay Castro Deldoc added (in a message via Facebook Messenger): “Apart from being a story on eternal love, this play demonstrates the importance of finding and going back to your roots.”

Mr. Deldoc co-wrote the libretto with screenwriter Ricky Lee and Gershom Chua.

“This project is a bridge between Filipino and Chinese cultures. You’ll see a lot of parallels. You’ll see interchange of cultures, marriages, tradition, and everything,” said Ms. Chuaunsu. “The Filipinos and the Chinese need to understand each other, especially (at) this time,” she said.

She pointed out that “It is the story of my uncle in real life. It’s painful to tell his story. As Mr. Ricky Lo says, this story is aching to be told.”

“This is the only musicale that tackles the life a Pinoy Tsinoy or Chinese in the 1970s,” said Mr. Lamangan. “They deserve to be heard. Through music, through plays, through (dramatization of their plight).”

The musical’s choreographer Douglas Nierras remarked, “It became a journey of rediscovery for me. It became a rediscovery of my lineage, (as) I have grandparents who are Chinese. Practically 70% of Filipino people have a drop of Chinese blood. That comparison and analogy of two cultures is better understood when it’s on theater — done in song and dance — in the staging. There are a lot of similarities; there are a lot of differences. But at the end of it all, there’s the same human experience and which is still relevant from the 1970s all the way down to the present.”

Mr. Nierras added that it also was “a rediscovery of what was the feel, the dynamics and the texture of the eras: the 1970s, 1980s and 1990s.”

“The music of Binondo is two-fold: It’s Filipino music and Chinese music, but there is much emphasis on Filipino music; the likes of OPM, the Willie Cruz-type of songs,” said Mr. De Guzman. “Very pop. Heavy Pop. More dramatic pop. It is highly orchestral. We have an indigenous Chinese instrument, Chinese violin that provides transition music.”

Interestingly, Mr. De Guzman said that “the inspiration of music is not another musical form, but actually a picture of the Met production of Puccini’s Turandot.”

“So I asked myself, can I translate this image into music — for musical theater — and make it very Filipino? And can it still capture the grandness of it? That was my challenge for it.”

While there are rumors that the musical may be adapted into film, Mr. Lamangan said that they’re still on the lookout for a producer.

He said that for the rerun, “We’re changing the opening,” but refused to divulge more.

“You have to watch,” he said. — Susan Claire Agbayani

Digital payments adoption increasing in Philippines, according to central bank data

PAYMAYA Philippines, Inc. said the adoption of e-wallets in the Philippines has grown stronger in 2018 to become more popular than credit cards, citing data from the Bangko Sentral ng Pilipinas (BSP).

In a statement Tuesday, the mobile wallet arm of PLDT, Inc. said BSP’s Financial Inclusion Dashboard showed there are 33 million e-money accounts recorded as of end 2018, a growth of 22% from end-2017.

PayMaya attributed the increase primarily to the convenience of opening an account (60%), absence of fees (54%) and “add money” feature (36%) among mobile wallets, as revealed in the company’s 2019 Consumer Brand study.

“Digital payments adoption is fast growing and PayMaya can attest to the Filipino consumers’ shift to e-wallet as their top payment method,” PayMaya Director and Head of Consumer Business Kenneth Palacios said in the statement.

The 2018 Financial Inclusion Dashboard of BSP showed the 33 million e-wallet users can be broken down as follows: 5 million active e-money wallet accounts, which grew 132.7% from in 2017, and 28 million prepaid cards that are linked to e-money accounts, which rose 12.5% from in 2017.

This tally is almost twice bigger than the adoption of credit cards, which stood at 9.4 million users in 2018, to reflect an 18% increase from in 2017.

“With majority of Filipinos still without bank accounts, PayMaya is the most viable option to allow them to have access to financial products to do financial transactions whether offline or online. It is providing consumers with a better way to pay other than cash and cards,” Mr. Palacios said.

PayMaya is managed by Voyager Innovations, Inc. — the digital arm of PLDT backed by Tencent Holdings Ltd.; Kohlberg Kravis Roberts & Co. (KKR); International Finance Corp. (IFC) and IFC Emerging Asia Fund.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

China’s new loans in June seen at five-month high on liquidity

CHINA’S central bank stepped up cash injections last month, which could have boosted loans. — WIKIMEDIA.ORG/ MAX12MAX

BEIJING — New bank loans in China are expected to have picked up to a five-month high in June, a Reuters poll showed, as Beijing kept ample liquidity in the financial system to support the slowing economy and offset growing US trade pressure.

The central bank also stepped up cash injections last month to calm nerves after regulators seized a troubled regional bank, which sparked worries of financial contagion and briefly drove some short-term lending rates to record highs.

Chinese banks likely extended 1.7 trillion yuan ($246.92 billion) in net new yuan loans last month, up from 1.18 trillion in May but below 1.84 trillion in June 2018, according to a median estimate in a Reuters survey of 29 economists.

But some analysts are bracing for a weaker reading, after data from the China Banking and Insurance Regulatory Commission (CBIRC) last week suggested lenders doled out more than 990 billion in new loans last month.

“We expect a modest rise in new loans due to seasonal factors,” said Tang Jianwei, a senior economist at Bank of Communications in Shanghai.

“But CBIRC’s H1 data suggested new loans in June might be slightly lower than May. We think this is due to weak loan demand from the real economy, as investment and consumption remain sluggish and exports still faces downward pressure.”

Banks might also have been more cautious about lending risks in the wake of the takeover of Baoshang Bank in May, Tang added.

Capital Economics forecasts June loans at 1 trillion yuan, while noting that a slowdown may have been offset by faster growth in other forms of credit.

A steady stream of downbeat economic data in recent months has raised expectations that more policy easing is needed in China to put a floor under cooling growth. But top officials have repeatedly tried to downplay the likelihood of aggressive stimulus measures.

A central bank adviser said last week that China will not need “very big” stimulus to prop up growth, provided its trade dispute with the United States does not worsen. The two sides agreed to a trade ceasefire last month while they resume talks, but existing tariffs remain in place, threatening a continued “slow burn” for the Chinese economy, according to ING.

The poll also showed that outstanding yuan loan growth on a year-on-year basis likely held steady at 13.4% from May, while broad M2 money supply was seen rising fractionally to 8.6% on-year, from 8.5%.

Total social financing (TSF), a broad measure of credit and liquidity in the economy, was estimated to have risen to 1.95 trillion yuan in June from 1.4 trillion in May.

TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

Corporate bond issuance appears to have picked up last month in response to falling market interest rates, Capital Economics said in a note.

China’s benchmark overnight repo rate fell to a four-year low of nearly 1% in late June as the central bank poured funds into money markets ahead of a seasonal surge in cash demand at the end of June.

Seasonal worries over tight liquidity intensified after the government’s takeover of debt-laden Inner Mongolia-based Baoshang Bank, which also added to concerns over the risk of mounting bad loans.

While regulators said Baoshang was an isolated case, some smaller banks and brokers have since struggled to get short-term funding and their financing costs have spiked, prompting regulators to warn larger lenders not to cut off firms from market funding. — Reuters

Auction to raise f unds for sick children in PGH

ON JULY 20, Gavel&Block, a subsidiary brand of Salcedo Auctions that features both established artists and emerging talent, will mount a benefit auction in partnership with the IWantToShare Foundation, an organization which works with the Philippine General Hospital (PGH).

The benefit auction is an annual event established by Salcedo Auctions in 2017 to raise funds and bring awareness to chosen organizations that make a civic impact.

Since 2016, the IWantToShare Foundation has worked with the Pediatric Hematology-Oncology Department of the PGH to fund the medical needs of children with cancer.

“This auction hopes to provide the means to raise both funds and awareness for a most worthy cause, and also to remind collectors of the transformative and life changing powers of the arts,” Richie Lerma, director of Salcedo Auctions, was quoted as saying in a press release.

A special preview for the auction pieces will be held on July 13 at Salcedo Auctions’s new headquarters at NEX Tower, 6786 Ayala Ave., Makati. Aside from seeing the pieces on offer, guests will be able to meet with the child beneficiaries through a specially formatted art therapy session and program.

Starting July 14 until the auction on July 20 at 2 p.m., works by contemporary and Philippine masters, as well as fine jewelry and watches, will be on display. These include pieces by National Artists Fernando Zobel, Benedicto “BenCab” Cabrera, Arturo Luz, Cesar Legaspi, and Vicente Manansala, and works by Juvenal Sanso and Eduardo Castrillo, plus contemporary works from Winner Jumalon, Jigger Cruz, Daniel dela Cruz, Ramon Orlina, Justin Nuyda, and Emmanuel Garibay, to name a few.

Australian banks win concession on capital

AUSTRALIA’S banking regulator has softened its capital buffer requirement on the nation’s largest banks after they argued that there wasn’t sufficient market capacity available to raise the necessary funds.

The so-called Big Four banks will need to lift their total capital by three percentage points of risk-weighted assets by January 2024, less than an initial target of four to five percentage points, the Australian Prudential Regulation Authority (APRA) said in a statement on Tuesday. The higher target remains the longer-term goal once APRA has considered ways to boost the pool of available capital.

APRA proposed changes to the country’s capital adequacy framework last November to better ensure lenders could be wound-up in an orderly fashion in the event of failure.

Bank regulators around the world are taking steps to boost the loss-absorbing capacity of systemically important banks in a bid to safeguard the financial system in the event of another crisis. APRA is adopting a simpler approach to other jurisdictions, allowing banks to issue Tier-2 capital that converts to ordinary shares or is written off at the point of non-viability.

The softening of the additional capital buffers comes after the banks raised concerns the market wasn’t able to absorb the extra Tier-2 capital issuance and had the potential to excessively increase funding costs as they battle declining profitability. The regulator estimates the extra A$50 billion ($35 billion) the major banks will need to raise will lift their overall funding costs by less than five basis points.

“Although APRA’s proposed response may increase funding costs for Tier 2 instruments issued by major banks, overall funding cost increases can be expected to remain small,” APRA Deputy Chairman John Lonsdale said. “Increasing total capital requirements by three percentage points by 2024, instead of the four to five originally proposed, will be easier for the market to absorb and reduce the risk of unintended market consequences.” — Bloomberg

Arts & Culture (07/10/19)

Sophia Chizuco at Globe

A PAINTING by Sophia Chizuco

FOR NEW YORK-based Japanese artist Sophia Chizuco, “the circle is the most peaceful shape.” Thus her new exhibit at the Globe Art Gallery, features works that are filled with circles. Dreamscapes by Sophia Chizuco is organized by Hiraya Gallery in partnership with Globe Art Gallery. The opening reception will be on July 11, and will run until July 30, at the Globe Tower, 32nd St. corner 7th Ave., Bonifacio Global City, Taguig.

Jonathan Ching at Silverlens

SILVERLENS presents They Might Be Giants, an exhibition of six new large-scale paintings by Jonathan Ching. His third exhibition with the gallery, the elements seen in the streets of Manila where Ching grew up are the starting point of this suite of paintings, with the eponymous piece They Might Be Giants as one of the largest works the artist has made to date. Previous exhibitions in Silverlens were Sputnik Dreams (2013) and elsewhere (2015). The exhibit opens on July 13. Also opening that day is Saturation Imbalance, an exhibit of works by Luis Lorenzana. Both exhibits run until Aug. 10 at Silverlens, 2263 Don Chino Roces Ave. Ext., Makati City.

Gov’t infrastructure spending declines in first five months after budget delay, despite recovery in May

Gov,t infrastructure spending declines in first five months after budget delay, despite recovery in May

How PSEi member stocks performed — July 9, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 9, 2019.

 

CoA finds San Juan business tax undercollection of P736-M

PHILSTAR

THE Commission on Audit (CoA) said San Juan City failed to inspect the books of eight top taxpayers in 2017 and 2018, resulting in the undercollection of business taxes worth about P736 million.

According to CoA’s 2018 audit report, the eight taxpayers were identified as Puregold Price Club, Inc.; Ortigas & Co. LP; Motor Image Pilipinas, Inc.; Motor Image Manila, Inc., Techtron Systems Corp.; Colinas Verdes Hospital Managers Corp.; Unimart, Inc.; and Integrated Computer Systems, Inc.

“The City could have collected more business tax had the City Treasury Department (CTD) prioritized conducting examination of books of account of those large businesses,” CoA said.

CoA added that a CTD official cited difficulties in obtaining audited financial statements, “especially of those large business taxpayers, in the ‘I View’ Program of the SEC (Securities and Exchange Commission).”

It added that the city was only able to inspect accounts of “mid-range business taxpayers.”

CoA recommended that the city’s treasury department seek assistance from the SEC and Bureau of Internal Revenue in gathering financial information to determine gross sales levels being declared by business owners.

In the report, CoA noted that the city treasurer said during the exit conference that the CTD examination team has gained access to the SEC I-View facility, but “the data available therein are those covering (calendar year) 2017 and prior years only.” — Vince Angelo C. Ferreras

Monetary Board 2018 foreign loan approvals up 111% at 7.3B

THE Bangko Sentral ng Pilipinas (BSP)’ Monetary Board approved a total of $7.355 billion worth of public sector loans to fund development projects in 2018, up 111% from a year earlier, the central bank said Tuesday.

“These public sector borrowings will fund projects on transport connectivity (roads, railways, port and airport infrastructure), irrigation and agriculture development, flood management, and the reconstruction and development of Marawi City,” the BSP said in a statement.

The public sector loans included $3.602 billion worth of bonds, $2.853 billion for 12 projects and $900 million for three programs.

According to BSP, out of the total approved public sector loans for 2018, 18% or $1.36 billion will go to five infrastructure projects under the Build, Build, Build Program — the Metro Manila Subway Project Phase 1 ($941.92 million), Chico River Pump Irrigation Project ($62.09 million), New Cebu International Container Port Project ($172.64 million), New Bohol Airport Construction and Sustainable Environment Protection Project Phase 2 ($39.43 million, and the Cavite Industrial Area Flood Risk Management Project ($143.53 million).

“While public sector loans increased year-on-year, the country’s external debt position remains at prudent levels,” the central bank said.

The BSP noted that outstanding foreign debt stood at $80.4 billion at the end of March, an increase of 1.9% from the previous quarter.

“Despite the rise in external debt, the country’s debt service ratio (DSR) has consistently remained at single-digit levels,” the BSP said, noting that DSR stood at 5.1% in the first quarter, well below the international benchmark of 20-25%.

The ratio measures the adequacy of foreign exchange earnings to meet maturing obligations.

Earlier, the BSP said that the increase in borrowing from overseas was mainly due to the national government’s raising of $1.5 billion from global bonds issues with net availments amounting to $1.8 billion to fund general financing requirements and positive audit adjustments, tempered by the increase in residents’ investments in Philippine debt paper including government bonds issued overseas.

According to the BSP, borrowing from the government amounted to $40.2 billion, up 1.26% from the previous quarter, while external debt by the private sector totaled $40.3 billion, up 2.5% from a quarter earlier.

Major creditors were Japan, which accounted for $14.4 billion; the US with $3.7 billion; the Netherlands with $3.7 billion; and the UK with $3.4 billion.

The BSP also said that the external debt ratio as a proportion of gross national income rose to 20% in the first quarter from 19.9% a quarter earlier.

“The ratio indicates the country’s sustained strong position to service foreign borrowings in the medium to long-term,” the BSP said.

Section 20, Article VII of the 1987 Constitution requires that all foreign loans to be contracted or guaranteed by the government obtain prior approval from the Monetary Board.

All foreign borrowing proposals by the national government, government agencies, and government financial institutions should also be submitted for approval-in-principle by the Monetary Board before actual negotiations start, according to Letter of Instruction No. 158 dated Jan. 21, 1974. — Reicelene Joy N. Ignacio

Health dep’t to require FDA licensing for e-cigarette industry

The Department of Health’s Administrative Order 2019-0007 will require a license from the Food and Drug Administration (FDA) to participate in the business. — BW FILE PHOTO

THE Department of Health (DoH) said it will require licensing for all makers, sellers and distributors of e-cigarettes and vaporizers (vapes) under the new guidelines covering the sector.

Published Tuesday, DoH Administrative Order (AO) 2019-0007 will require a license from the Food and Drug Administration (FDA) to participate in the business.

The AO calls the sector the Electronic Nicotine and Non-nicotine Delivery Systems (ENDS/ENNDS) industry.

“All establishments engaged in the manufacture, distribution, importation, exportation, sale including online sale, offering for sale, and transfer of ENDS/ENNDS products shall first secure a License to Operate (LTO),” according to the AO.

The AO, signed by Health Secretary Francisco T. Duque III on June 14, also gave the FDA the authority to inspect establishments before and after the issuance of the license.

DoH also added that licensed establishments can subsequently apply for “a product marketing authorization, such as Certificate of Product Registration (CPR) or FDA Electronic Regulation Number (FERN).”

Securing marketing authorizations is also needed before an establishment can manufacture, distribute, import, and export ENDS/ENNDS products.

The FDA said it hopes to ban refills formulated to appeal to young users and will require tamper-resistant packaging and health warnings for refills and devices.

Users are also prohibited from vaping in public, which is allowed only in designated vaping areas.

Trade and Industry Secretary Ramon M. Lopez meanwhile called for more consultation with the industry, which he said has the potential to generate jobs.

“It’s a potential industry that we can consider,” he said, adding that the Department of Trade and Industry (DTI) is interested to hear out the concerns of the sector.

“We are asking (the DoH and FDA to) conduct consultations para ma-address nila (so they can address) the needs of stakeholders,” he said, adding that he has received position papers from tobacco and e-cigarette groups regarding this matter.

“But we are pro health,” Mr. Lopez added, adding: “The industry is a job generator but we are considering (whether or not) if it is a healthy industry.” — Gillian M. Cortez

ERC halves caseload of power co-ops late in paying fees

THE Energy Regulatory Commission (ERC) has closed more than two dozen pending cases against electric cooperatives for late or non-payment of supervision and regulation fees.

The commission’s caseload of such violations has thereby been reduced by half.

The ERC’s Item IV of Resolution No. 21, Series of 2007, calls for the payment of supervision and regulation fees by cooperatives.

The fees represent the annual reimbursement of the expenses incurred by the ERC in the supervision of electric utilities, transmission companies and/or in the regulation or fixing of their rates.

“The said fees shall be paid on or before September 30th of each year with a penalty of fifty per centum in cases of delinquency. Provided, further, that if the fees or any balance thereof are not paid within sixty days from the said date, the penalty shall be increased one per centum for each month of delinquency thereafter,” Item IV states.

The issue for resolution by the commission involve whether or not the electric utilities should be held administratively liable under the guidelines to govern the imposition of administrative sanctions in the form of fines and penalties pursuant to Section 46 of Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), as amended.

Also at issue is whether criminal action should be instituted against the utilities’ directors and officers for the non-payment of penalties.

In many of the cases, ERC records showed the utilities paid their remaining penalties before the issuance of their show-cause orders.

In some, the ERC noted that while strict application of its rule holds an electric cooperative administratively liable, the commission, employing its full discretion, found it just and fair to exercise leniency in its judgment.

For instance, compliance within a month from receipt of the show-cause order or merely two days from the lapse of the 15-day period to explain, was taken to mean that the electric utility did not intend to defy the rules and regulations of the ERC.

In some cases, the regulator warned that similar acts in the future “shall be dealt with more severely.”

The termination of the cases was signed by Agnes VST Devanadera, ERC chairperson and chief executive officer. — Victor V. Saulon