Consumers turn pessimistic for Q3 — BSP

September 7, 2018 | 7:47 pm

FILIPINO CONSUMERS turned pessimistic on the outlook of the economy in the third quarter as they expect commodity prices to continue to rise in the near term, according to the Bangko Sentral ng Pilipinas (BSP).
Results of the central bank’s Consumer Expectation Survey showed a net confidence index of -7.1%, indicating that pessimists outnumbered optimists in the third quarter, after eight consecutive quarters of positive reading.
This is compared to the net confidence index of 3.8% in the previous quarter and 10.2% a year ago. It was also the lowest since the confidence index slumped to -8.1% in the fourth quarter of 2015.
Redentor Paolo M. Alegre, Jr., head of the BSP Department of Economic Statistics, said the negative outlook was due to “expectations of the continued increase in commodity prices, high household expenses, high unemployment, and no increases in their income.”
“Respondents also noted concerns on higher educational expenses and higher transportation expenses as reasons behind their gloomy prospects,” he said during a press briefing on Friday.
The central bank conducted the poll of 5,580 families from July 1 to July 14 that weighed the number of Filipinos with an optimistic outlook versus those who are pessimistic about local economic conditions, and of their family’s financial situation and income.

The survey also showed consumers turned pessimistic on the country’s economic condition with the confidence index at -17% in the third quarter, from 5.7% in the previous quarter and 13.9% in the year-ago period.
The outlook on family financial situation declined to -5.3% in the third quarter, from 0.2% in the previous three months and 7.6% in the third quarter last year.
Only the family income remained positive with a confidence index of 1%, although lower than the 5.5% last quarter.
Consumers generally had a negative outlook, with the confidence index for Metro Manila slipping to -2.5% from 7.8% in the second quarter. Those based in the provinces also turned pessimistic with a net score of -7.8% from 3.2% last quarter.
Low-income groups were the most pessimistic, with an index of -17.3% in the third quarter from -7.9% in the previous quarter. Middle-income consumers turned pessimistic at -2% from 12.6% in the previous quarter.
On the other hand, high-income consumers remained optimists, although less positive at 16.4% from 23% last quarter .
Looking ahead, consumers were less optimistic as the confidence index fell to 3.8% from 8.7% for the fourth quarter, and 13% from 23.1% for the next 12 months.
“Respondents cited expectations of high prices of goods, low salary or income, and rise in expenditures as reasons for their less upbeat outlook for the near term and year ahead,” said Mr. Alegre.
As prices are expected to rise, the survey showed the spending outlook index of households on basic goods and services went up to 45.7% for the fourth quarter of 2018 from 36.3% in the previous report.
“This indicates that the number of respondents who expect to spend more on goods and services increased compared to those who said otherwise,” he added.
BSP Deputy Governor Diwa C. Guinigundo that the higher spending outlook could add momentum to gross domestic product (GDP) growth.
“We can expect third quarter GDP may show some gains. There was some moderation in consumption spending in the second quarter,” he said.
GDP growth was lower than expected at 6% in the second quarter, from 6.6% in the first quarter and 2017’s comparable period.
Still, the survey indicated that consumers expect inflation and interest rates to increase, and the local exchange rate to depreciate in the next 12 months.
The BSP said that consumers see inflation at 5% over the next year, above the central bank’s 2-4% target.
“The number of respondents with views of higher inflation increased compared to that a quarter ago, reflecting stronger inflationary expectations over the 12 months,” said Mr. Alegre. — Elijah Joseph C. Tubayan

Inflation to remain above 6% until Oct — Nomura

September 7, 2018 | 7:47 pm

By Elijah Joseph C. Tubayan, Reporter
INFLATION is seen to remain above 6% until October, bolstering expectations of more rate hikes from the central bank, economists from Nomura said.
“Our new trajectory suggests headline inflation will stay elevated at around 6% in September and October before gradually easing to 5.6% by year-end,” Nomura said in its monthly economic commentary published on Friday.
Nomura also revised its full-year inflation forecast upward to 5.1% from 4.9% previously.
This was after inflation in August accelerated to 6.4% from 5.7% a month ago and 2.6% a year ago. The eight-month average in the rise in prices stood at 4.8%, above the Bangko Sentral ng Pilipinas’ (BSP) 2-4% target range.
Nomura said its view of a gradual 50-basis point (bp) hike by central bank still stands.
“Regardless, we still expect BSP to hike rates by a further 50bp this year, with a 25bp hike each in September and November,” it said.
“Moreover, there are upside risks as higher headline inflation and further PHP depreciation could stoke inflation expectations and prompt BSP to hike again by a relatively aggressive 50bp this month; it could also do more in November.”
The central bank has raised its interest rates by 100 basis points since May in a bid to curb inflation.
However, Mr. Espenilla has said more non-monetary action is needed to properly address inflation, particularly on supply side factors.
The BSP expects inflation to peak this month or in October.
Moreover, Nomura said it will maintain its gross domestic product (GDP) growth target despite the slowdown in the second quarter, noting “early indicators suggest growth is off to a strong start in Q3.”
“We maintain our 2018 GDP growth forecast of 6.5%, implying that growth will rise to 6.8% [year-on-year] in H2 from 6.3% in H1, driven by strong domestic demand, particularly investment by both public and private sectors as infrastructure projects progress,” it said.
The economy grew 6% in the second quarter from 6.6% a year ago and in the first quarter this year. This brought the first half GDP growth figure to 6.3% versus 6.6% in the comparable period in 2017.
“We also expect continued solid private consumption, as real disposable household incomes appear to be rising with the personal income tax cuts under ‘TRAIN’ tax reforms offsetting higher inflation,” Nomura added, referring to the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Apart from lowering incomes taxes, the TRAIN law also lowered estate and donors tax rates, removed some value-added tax exemptions, and raised taxes on tobacco, fuel, automobiles, minerals, coal, documentary stamps, among others. It also introduced new levies on sugary drinks and cosmetic procedures.
Nomura also said the fiscal deficit remains “manageable,” as the “TRAIN tax reforms early this year have boosted revenues by more than expected,” despite large public spending.
Nomura said the fiscal deficit stood at 2.4% of GDP as of the first half, wider than the 2.2% in the same period last year, but below the 3% ceiling.
“A downturn in the tech cycle would hurt electronics-dominated exports, while faster-than-expected Fed rate hikes or further contagion from global EM turmoil could spark capital outflows. Political concerns could increase with President Duterte’s drop in popularity and the mid-term elections in May,” it added.

Jollibee teams up with celebrity chef Bayless for Mexican restaurants in US

September 7, 2018 | 7:46 pm

FAST FOOD giant Jollibee Foods Corp. (JFC) is partnering with celebrity chef Rick Bayless to expand the latter’s Mexican casual restaurant chain in the United States.
In a regulatory filing on Friday, JFC said its subsidiary Jollibee Foods Corp. (USA) is investing $12.4 million in Tortas Frontera LLC, which was founded by Mr. Bayless, for 47% fully-diluted membership interest. The remaining 53% stake in Tortas Frontera will be held by Mr. Bayless and other shareholders.
There are currently four Tortas Frontera branches — three at Chicago O’Hare International Airport and one at The Arc in the University of Pennsylvania. The restaurants serve griddle-baked Mexican sandwiches called tortas and margaritas, and typically feature a guacamole bar.
“Together with (Mr. Bayless’) organization and brand Tortas Frontera, we will build a significant business in the large and fast-growing Mexican food category in the United States. This venture is very much in line with JFC’s mission: to serve great tasting food and spread the joy of eating to everyone,” JFC Chairman Tony Tan Caktiong said in a statement.
JFC noted Mexican food is a fast-growing segment in the US restaurant industry, with sales estimated at $40-45 billion last year.
Mr. Bayless is an award-winning restaurateur, book author, winner of Bravo’s Top Chef Masters in 2009, and host of the television series Mexico — One Plate at a Time.
He has received numerous James Beard Awards — the most prestigious recognition in culinary art in the US — including National Chef of the Year in 1995) and Humanitarian of the Year in 1998.
Mr. Bayless’ Frontera Grill received the James Beard Foundation’s highest award, Outstanding Restaurant, in 2007. His 4-star Toplobampo also received the Beard Foundation’s award for Outstanding Restaurant in 2017.
JFC has been aggressively expanding overseas. Earlier this year, it took control of Denver-based burger chain Smashburger, which operates 352 stores in the United States, Costa Rica, Egypt, El Salvador, the United Kingdom, and Panama.
For the first half, JFC reported its net income attributable to equity holders of the parent company rose 16% to P4 billion, amid strong sales from its fast food businesses in the Philippines and abroad.
As of end-June, the fast food giant had a total of 4,279 stores, 20% higher compared to the number of stores at the end of June 2017.
Aside from Jollibee, JFC’s brands include Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King in the Philippines. In China, JFC operates Yonghe King, Hong Zhuang Yuan and Dunkin’ Donuts. — J.C.Lim

Philippines AirAsia may postpone IPO to mid-2019

September 7, 2018 | 7:46 pm

By Denise A. Valdez
PHILIPPINES AirAsia, Inc. said its planned initial public offering (IPO) may again be deferred to mid-2019, citing high fuel prices and the continued weakness of the peso against the US dollar.
“We’re still working on it, but I think it might get delayed. Probably next year. There are too many problems at the moment, especially the fuel prices, the foreign exchange rate, plus the Boracay closure,” Philippines AirAsia Chief Executive Officer (CEO) Dexter M. Comendador told reporters in Makati City on Friday.
The budget carrier was planning to raise up to $250 million in an IPO this year, with proceeds to be used for its expansion.
While the company performed “a lot better” in the first half of 2018 compared to the same period in 2017, Mr. Comendador said operations continue to be affected by the rising jet fuel prices and the peso’s weakness.
He said AirAsia also took a hit from the six-month closure of Boracay. The island, which is undergoing rehabilitation, is expected to reopen before the end of October.
Despite this, Mr. Comendador said Philippines AirAsia has not increased its fares.
“We’re trying to keep the fares down to keep the load factor. Otherwise, if we raise it, it will drop. So we held on the air fares. We’re so far doing okay on the load factor… It’s a tricky situation. If I add to my fares, my load might drop,” he added.
In May, AirAsia Group Chief Executive Officer (CEO) Anthony Francis “Tony” Fernandes expressed confidence the Philippine unit will be able to push through with its IPO.
“We’re doing very well in the Philippines right now… We had a baptism of fire when we came in here. We weren’t warmly welcomed by our competitors. They did everything to eradicate us. And now we’ve crossed over that. That made us tougher, smarter, and we’re now in a good position. Philippines is probably our best kept secret,” he said then.
Mr. Fernandes has said the Philippine unit will be the last to be listed on a stock exchange, after AirAsia units in Malaysia, Indonesia and Thailand. He is planning to consolidate all the units into one holding company someday, making AirAsia Group a single economic unit in the ASEAN region.
“Eventually, I hope we can swap those shares into one company. So let’s say the 60% owned by Filipinos would be able to go up to AirAsia Group. So they wouldn’t just have a share of Philippines, they would have a share of the whole airline,” Mr. Fernandes said.

ePLDT’s Cebu data center gets global accreditation

September 7, 2018 | 7:46 pm

THE digital business solutions subsidiary of PLDT, Inc. said on Friday its new data center in Cebu has been accredited by global solutions company NTT Communications.
In a statement, ePLDT Inc. said the Vitro Data Center in Cebu City is the fifth ePLDT data center to be Nexcenter-certified. The others are the data centers in Makati City, Pasig City, Parañaque City and Clark.
“All Nexcenter-accredited data centers passed rigorous in-house parameters set by NTT Communications, ensuring that all facilities meet the globally consistent data center standards in service quality, flexibility and cost efficiency,” ePLDT said.
The company noted these standards are set by international certifications and operational guidelines such as ISO and Information Technology Infrastructure Library (ITIL).
“Similar to other Nexcenter-certified data centers across the globe, Vitro Cebu 2 is positioned to empower both local and multinational businesses with global scalability that conforms with NTT Communications’ consistent data center standards and service quality,” ePLDT Group President and Chief Executive Officer Eric R. Alberto said in the statement.
The data center in Cebu is the newest of 10 data centers ePLDT currently has in the country. It holds 800 racks out of the company’s total rack capacity of 9,150.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Nestle: No plans to close manufacturing facilities in Philippines

September 7, 2018 | 7:46 pm

NESTLE Philippines, Inc. on Friday said it is not planning to close “any of its manufacturing facilities in the Philippines.”
“Coffee under our Nescafe brand remains to be a core pillar for us, and we are committed to support the local coffee industry and our coffee farmers to growth,” the Swiss food giant said in a statement.
Nestle issued the statement after news reports quoted an official as saying the company may shutter its coffee processing plant in the Philippines over the lack of tax incentives.
“We have been operating in the Philippines for 107 years now, and we look forward to doing business here in the next 100 years. Nestlé is here to stay,” the company added.
Nestle, which operates a coffee processing plant in Cagayan de Oro, earlier complained its Nescafe products are competing at a disadvantage with Indonesia’s Kopiko.
Since its 3-in-1 coffee mix are imported, Kopiko incurs a much lower operating cost, and is able to put aside more for marketing and promotional campaigns. Nestle, on the other hand, pays for its sugar requirement — sourced locally — at twice that of world market prices.
The company is seeking incentives for local manufacturers, like itself, that source agricultural raw materials locally. — Janina C. Lim

Gross international reserves climb in August

September 7, 2018 | 7:46 pm

THE COUNTRY’S gross international reserves (GIR) grew in August on the back of net foreign currency deposits of the government and income from the central bank’s external investments, the Bangko Sentral ng Pilipinas (BSP) said on Friday.
Preliminary data released by the BSP showed the country’s reserves climbed to $77.829 billion as of August from $76.722 billion at end-July. This is the highest GIR level since May’s $79.202 billion.
Still, this is lower than the $81.73 billion seen as of August 2017.
The BSP attributed the increase from the previous month to “inflows arising from the National Government’s (NG) net foreign currency deposits as well as the BSP’s income from its investments abroad.”
“These were partially tempered by payments made by the NG for its foreign exchange obligations, foreign exchange operations of the BSP, and revaluation adjustments on the BSP’s gold holdings resulting from the decrease in the price of old in the international market,” it added.
The central bank’s income from offshore investments went up to $61.687 billion as of August from $60.736 billion in the previous month, but was still lower than the $67.086 billion logged a year ago.
Its foreign currency holdings likewise climbed to $6.838 billion from $6.516 billion in July and the $4.558 billion as of August last year.
Meanwhile, the central bank’s gold holdings slid to $7.622 billion last month from $7.788 billion as of July and the $8.431 billion recorded a year ago.
Reserves held under the International Monetary Fund (IMF) also dipped to $487.3 million last month from $488.4 million in July and $449.2 million in August 2017.
Special drawing rights, or the amount which the Philippines can tap under the IMF’s reserve currency basket, was steady at $1.194 billion from $1.193 billion in July, but lower than the $1.201 billion a year ago.
The BSP said the country’s end-August reserves level “remains as an adequate external liquidity buffer,” with an equivalent of 7.5 months import cover, as well as payments on services and primary income.
It is also equivalent to 6.2 times the country’s short-term external debt based on original maturity and 4.2 times based on residual maturity. — Elijah Joseph C. Tubayan

DTI invites PACC to help craft EoDB Act’s implementing rules

September 7, 2018 | 7:46 pm

THE Department of Trade and Industry (DTI) has urged the Presidential Anti-Corruption Commission (PACC) to take part in the crafting of the Ease of Doing Business law’s implementing rules and regulations (IRR) after the former criticized the “delay” in its completion.
“Meanwhile, instead of issuing press statements, I am extending this invitation to the PACC to be actively involved in the crafting of the IRR for RA [Republic Act] 11032,” Trade Secretary Ramon M. Lopez said in a statement on Friday, adding that it has sent a draft of the IRR copy to the PACC.
The agency was responding to PACC’s statement last week urging the DTI to fast-track the release of the IRR as the “delay” was raising worries across businesses.
The DTI added there is no delay in the IRR’s release as the EoDB Act of 2018 set its maximum completion period at 90 working days starting the law’s effectivity period on June 17.
Going by this, the deadline for the IRR is on Oct. 22, contrary to the PACC’s claims that the deadline is by end-September or 90 days from the signing date on May 28.
At present, the agency’s Competitiveness Bureau (CB), the temporary secretariat of the Anti-Red Tape Authority (ARTA), “is following a strict timeline and a broad-based consultative process,” Mr. Lopez said.
“We are now in the stage of analyzing, and questioning the working draft and testing its possible impact using a public consultation process. We are bringing the proposed IRR to where it matters most, the Filipino citizen. Even as we speak, there are three teams that have been deployed to the regions that are currently holding public consultations,” the Trade chief said.
“We are effectively covering both public and private, gathering their comments, suggestions, and even complaints about government services to ensure that this IRR will be a regulation that is both effective and efficient.”
The official said the drafting of specific provision involved coordination with the departments of Interior and Local Government and Information and Communications Technology, the National Economic and Development Authority, and the Bureau of Fire Protection.
Other agencies consulted for the draft are the Department of Finance, Philippine Statistic Authority, the Cooperative Development Authority, Securities and Exchange Commission, Ombudsman, Housing and Land Use Regulatory Board and the Union of Local Authorities of the Philippines.
It has also gone through consultative meetings and briefing sessions with several other agencies.
“We are very mindful of the legislative intent of the EODB-EGSD Act, its impact on government employees, and its huge potential to improve ease of doing business in the country. Thus, it is incumbent upon us in the executive branch to ensure that we come up with an IRR that is well designed. After all, this will serve as the guideline for all implementing agencies,” Mr. Lopez said.
“We deem it more prudent to undertake a carefully crafted, broad-based consultative process that will result in an IRR that is both responsive and clear.”
Mr. Lopez noted that the CB is just a temporary secretariat of the ARTA pending the appointment of the Director General of the agency who will also be the signatory of the IRR.
“But [the CB] has been actively involved in the transition process, by drafting the IRR, securing budget from the Department of Budget and Management (DBM) and OP, and spearheading information campaigns and consultations,” the Trade chief said.
The ARTA is the agency tasked to monitor government offices’ compliance with the law.
Under the EoDB law, all applications or requests submitted should be approved or disapproved by government offices not longer than three working days, for transactions categorized as “simple” and seven working days for “complex” ones.
For “highly technical ones” or requests “involving activities which pose danger to public health, public safety, public morals [and] public policy,” the prescribed processing time should not exceed 20 working days.
However, several agencies agencies have raised that some of the applications they process cannot be categorized in such way as some require undergoing quasi-judicial proceedings.
The DTI said they are resolving the issue by recognizing these quasi-judicial functions by providing a clear definition of “frontline transaction” among other ways.
Officials who violate the law the first time will be suspended for six months.
Meanwhile, second-time offenders can be imprisoned from one to six years with a fine of at least P500,000. This comes with dismissal from the service, perpetual disqualification from holding public office and forfeiture of retirement benefits. — Janina C. Lim

Jordanian, PHL companies sign $60M in business deals

September 7, 2018 | 7:46 pm

COMPANIES FROM the Hashemite Kingdom of Jordan and the Philippines signed on Sept. 6 business agreements and letters of intent (LoIs) with an estimated value of over $60 million, Trade Secretary Ramon M. Lopez said.
In a phone message to reporters in Manila on Friday morning, Sept. 7, Mr. Lopez said “two memoranda of understanding (MoUs) and seven LoIs worth $60.675 million” were signed at a business forum at the Intercontinental Hotel in Ammam, Jordan, held as part of President Rodrigo R. Duterte’s official visit to the country.
Mr. Lopez said the deals are expected to generate 434 jobs for Filipinos.
Mr. Duterte, in his speech, assured Jordanian businessmen on the ease of doing business in the Philippines.
“I tell you now, I give you my solemn commitment that if you go there, it will be business with ease,” he said.
He added: “I will guarantee you the return [on investment]. There will be no corruption. And if you ask anything, even a toothpick, I will guarantee you, you can have my audience any time of the day…or night.”
Mr. Duterte witnessed the signing of the LoIs from Nafith International for logistics planning and operations; Universal Labs Ltd. for setting up a production facility in the Philippines for Dead Sea products; Arabia Cell for opportunities in mobile-related services and solutions, information technology, software and mobile development; and Dinarak for digital cross-border remittances from Jordan to the Philippines.
There are also LoIs on genomic testing services for hospitals and clinics from Reprogene; information and communication technology (ICT) sector related to health care and insurance from Mobile Z Nation; and technology, robotics, ICT development, cyber crime, artificial intelligent, green-energy and e-education from Galaxy Organization.
The Philippine Chamber of Commerce and Industry (PCCI) and Jordan Chamber of Commerce (JCC) signed an MoU on the promotion, strengthening, and expansion of trade, economic, scientific, technological cooperation, and other business relations.
The two business chambers also signed an MoU on the establishment of linkages to facilitate cooperation and joint ventures among members, and to increase bilateral trade volume between the two countries. — Arjay L. Balinbin

DoJ files another arrest warrant request vs Trillanes

September 7, 2018 | 7:46 pm

THE DEPARTMENT of Justice (DoJ) yesterday filed another application for the arrest of Senator Antonio F. Trillanes IV, this time before the court that already dismissed the criminal charges for rebellion against the ex-mutineer in 2011.
“It is clear that this instant case is still pending with this Honorable Court, as the prosecution has yet to present its evidence in chief insofar as accused Trillanes is concerned,” reads the DoJ’s Sept. 7 “Very urgent ex-parte omnibus motions for the issuance of hold departure order (HDO) and warrant of arrest” against Mr. Trillanes at the Makati Regional Trial Court (RTC) Branch 150.
RTC Branch 150 dismissed the criminal charges on September 7, 2011 pursuant to Presidential Proclamation 75, issued in Nov. 2010 by then President Benigno S.C. Aquino III, granting amnesty to Mr. Trillanes.
Last Wednesday, the DoJ also filed a request for an arrest warrant and HDO against Mr. Trillanes before the Makati RTC Branch 148.
This came after President Rodrigo R. Duterte issued Presidential Proclamation 572 earlier this week, stating the revocation of the amnesty for failure to fulfill the minimum requirements to qualify for such pardon.
Mr. Trillanes’ lawyers filed for a temporary restraining order (TRO) against Mr. Duterte’s proclamation last Thursday before the Supreme Court.
Proclamation 572 also states that the DoJ and the Armed Forces of the Philippines (AFP) “are ordered to employ all lawful means to apprehend former LTSG Antonio Trillanes.”
Mr. Trillanes, meanwhile, told reporters at the Senate on Friday that the military Court Martial has no jurisdiction over him “whether they revoke my amnesty or not.”
The senator pointed out that he has not been associated with the armed forces since 2007.
“Walang nang hold sa akin ang armed forces as early as then,” he said.
Presidential Spokesperson Harry L. Roque, for his part, said that Mr. Trillanes was granted amnesty because of his close relations to the former president, adding “kaya binigay sa kanya (that is why he was given the amnesty) on a silver platter.”
Regarding the AFP’s authority to arrest Mr. Trillanes, Mr. Roque said, “The (President’s) instruction (to the military) is to abide with the rule of law. Kung walang (If there is no) warrant of arrest issued by any court, do not apprehend Sen. Trillanes.”
AFP, in a statement on Friday, said that they are “mindful that Sen. Trillanes IV has already filed his petition before the Supreme Court.”
“We will defer commenting on the merits of the case in deference to the sub judice rule,” the AFP said.
The Department of National Defense echoed the DND position, saying that it will follow proper court procedures.
“The DND respects the Judicial process and will defer to the court on the matter,” it said in a statement.
DoJ Secretary Menardo I. Guevarra, in a text message to reporters, said that the filing of the TRO petition was “a proper move indeed instead of arguing his case to the media.”
In another development, Mr. Duterte’s son, Paolo Z. Duterte, filed a libel case against Mr. Trillanes at a Davao court on Sept. 6.
The Duterte son, who resigned as Davao City vice-mayor last Dec., said that the charges stem from Mr. Trillanes’ accusation of corruption and extortion made during a tele-radio interview.
The senator allegedly accused the younger Duterte and his brother-in-law, lawyer Maneses R. Carpio, of “purported corruption and extortion” on “a.) UBER and other companies regulated by the LTFRB (Land Transportation and Franchising Regulatory Board); the Road Board; and c.) DPWH (Department of Public Works and Highways).” — Gillian M. Cortez

DTI expands list of goods with SRP, adjusts prices

September 7, 2018 | 7:46 pm

THE DEPARTMENT of Trade and Industry (DTI) has added more items in its suggested retail price (SRP) list for manufactured basic necessities and prime commodities.
In statement on Friday, DTI said there are now 241 shelf keeping units (SKUs) or product variants in the list, which took effect this month.
The SRP list also now covers Visayas and Mindanao in the monitoring for Salinas (IM) Corp.’s iodized salt under the Fidel brand.
Meanwhile, seven brands of canned sardines, evaporated milk, corned beef, detergent soap, and toilet soap have adjustments in their SRP.
“The DTI thoroughly reviewed the new SRPs and made sure that there is basis for the changes. All commodities with adjusted SRPs have not changed their prices in years,” DTI-Consumer Protection Group (CPG) Undersecretary Ruth B. Castelo said in the statement.
“This latest SRP will remain in effect for the next three months, or until 01 December 2018, following manufacturers’ affirmation to DTI’s appeal for price increase hold-off,” she said.
HOLIDAY FEAST
The agency also emphasized that the expanded SRP list is different from the one that would cover Noche Buena products, or those used for the Christmas and New Year celebrations.
The list with holiday goods is usually released every October or November.
“The DTI is set to meet with the manufacturers of said commodities in time for the preparation and release of its new SRPs,” the DTI said.
Under Republic Act No. 7581 or the Price Act, DTI disseminates the SRP list for the information and guidance of producers, manufacturers, traders, sellers, retailers, and consumers.
Meanwhile, DTI said that it has intensified its price monitoring efforts, expanding its coverage from 400 to 600 firms in the National Capital Region, and an additional 500 firms in the other regions.
From this coverage, DTI has issued 127 letters of inquiry to firms found selling above the SRPs.
DTI has also suggested that retailers fill their shelves with “wider choices of reasonably-priced basic and prime goods.”
In addition, DTI called on manufacturers and importers of non-agricultural basic and prime goods to bring in more non-premium brands to provide consumers with more choices of lower-end SKUs. — Janina C. Lim

Gov’t unhappy over Angkas comeback, to pursue legal action

September 7, 2018 | 7:45 pm

THE DEPARTMENT of Transportation (DoTr) has expressed its disappointment over the return of motorcycle-hailing company Angkas, maintaining its stance that the company’s services should be kept off the road.
In a statement Thursday night, the DoTr and its attached agency, the Land Transportation Franchising and Regulatory Board (LTFRB), said they are “saddened” by a regional court’s decision favoring Angkas, and that the government will pursue legal action to “ensure that our roads are cleared of colorum vehicles, such as Angkas motorcycles.”
“Our position is that motorcycles registered in the service are not authorized to conduct business and offer public transport under Republic Act 4136. For them to be allowed, the law has to be amended by Congress,” the statement said.
The Mandaluyong City Regional Trail Court (RTC) has issued a preliminary injunction, which keeps DoTr and LTFRB from directly and indirectly interfering with the operations of Angkas.
In a statement on Thursday, Angkas announced its comeback, saying the House of Representatives has honored the Mandaluyong RTC’s order in a congressional hearing of the Metro Manila Development committee on Wednesday.
Quoting Quezon City Rep. Winston Castelo, committee chairperson, Angkas said, “With the worsening traffic and the inefficient mass transport system, thousands of disgruntled commuters are urging measures that can help them in their daily commuting struggles. Alternative means of transportation are a necessity.”
However, the DoTr and LTFRB defended, “If Angkas is to continue accrediting motorcycles registered as private vehicles to book rides and accept passengers for a fee, it is considered as without authority from the government regulators, and, therefore, are considered colorum vehicles.”
The government agencies said Angkas is “just interested in making profit, and profit, alone,” while their intention is to ensure the safety of the commuting public.
In November last year, the LTFRB apprehended several drivers from motorcycle-hailing services, citing Republic Act 4136 or the Land Transportation and Traffic Code, which prohibits private motorcycles from operating as public service vehicles.
The Makati City government also ordered the shutdown of Angkas’ office for allegedly operating without a permit.
Angkas then voluntarily closed its operations. — Denise A. Valdez

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