Home Blog Page 10516

Horror film replaces dropped (K)Ampon in MMFF lineup

THE Metro Manila Film Festival Executive Committee (MMFF Execom) has announced that Carlo Ledesma’s film Sunod will replace Kris Aquino’s comeback film (K)Ampon which was disqualified for making a casting change beyond the prescribed deadline.

The announcement was made on Sept. 3 via the film festival’s Facebook page.

Sunod, a horror film, stars Carmina Villaroel, Mylene Dizon, Susan Africa, and Kate Alejandrino and is produced by Ten17P production. Mr. Ledesma was one of the writers of a previous MMFF entry, Saving Sally (2016) while Ten17P has produced several MMFF entries including Siargao (2017) and Mary, Marry Me (2018).

“[MMFF] rules provide that in the case of disqualification, the vacant slot shall be automatically filled by the next-in-rank of the same film genre. Per the ranking of the Selection Committee, Sunod is the horror film next-in-rank to the film (K)Ampon,” the Execom said in the statement.

(K)Ampon, which was supposed to be Kristina Bernadette “Kris” Aquino’s comeback horror film, was disqualified in August after Derek Ramsay backed out after prioritizing his contract with GMA Network. Mr. Ramsay currently stars in the network’s primetime show, The Better Woman.

The film’s producers tried to replace Mr. Ramsay with Gabby Concepcion but the MMFF noted that the deadline to request a change of lead actor was on July 30 — the film’s producers submitted their request on Aug. 5.

Sunod now joins the other three entries chosen from script submissions: The Miracle in Cell No. 7, Mission Unstapabol: The Don Identity, and Momalland.

The four finished films chosen as entries will be announced at a later date, completing the eight MMFF official entries. The MMFF’s deadline for submitting finished films for consideration is on Sept. 20, 5 p.m.

The MMFF runs from Dec. 25 to Jan. 7, 2020 in cinemas nationwide. — ZB Chua

PHL hospitals remain vulnerable to cyber attacks

By Denise A. Valdez, Reporter

YANGON, Myanmar — Medical facilities in the Philippines will continue experiencing high rates of cyber attacks, with seven out of 10 medical machines compromised this year, according to data from cybersecurity firm Kaspersky.

The Russia-based company said it found 76% of medical machines in the country were attacked in the past eight months, making it the most vulnerable in Southeast Asia and second in the Top 15 nations it reviewed.

“In case of Southeast Asia, medical organizations are not in a vacuum. There are computers around them. If you look at the statistics in the Philippines, in general, the number of infections is quite high,” Yury Namestnikov, head of Kasperky’s Global Research and Analysis Team (GReAT) in Russia, said at a forum here on Thursday.

“These devices that are in medical organizations, they got infected (because) people who are responsible for architecture of IT systems in medical organizations, they do not separate the networks,” he added.

Mr. Namestnikov explained that having medical machines connected to a singular internet network could mean a compromise in one system would impact the rest of a facility’s machinery. In the Philippines, he said most of the infections could be traced to universal serial bus (USB) sticks or web threats.

“The right way to solve this problem is to review the architecture for how you design your medical network, and separate computers that should not be visible from the internet. It will help a lot,” he said.

Topping the list of countries with the most cyber attacks on medical machines is Venezuela, which had a 77% rate in 2019. Other countries from Asia Pacific included in the Top 15 are Bangladesh, which ranked 8th with a 58% rate, and Thailand, which ranked 12th with a 44% rate.

“One factor we observe is that the chances of being attacked really depend on how much money the government spends on cybersecurity in the public health sector. Another key reason is the low level of cybersecurity awareness the people inside medical facilities have,” Mr. Namestnikov was quoted as saying in a statement.

The company is pushing for bigger investments from countries in Asia Pacific towards ensuring cyber protection in medical facilities, noting losses could amount to $23.3 million if a hospital is faced with a cyber attack.

“We see more and more threats against the health care sector… Hospitals usually store a lot of data, and because of that, they’re becoming quite often the victim,” Stephan Neumeier, Kaspersky managing director for Asia Pacific, said at the forum.

“If you look at the banks who are dealing with probably more or less the same amount of data as a large hospital, that bank is super secure today… I think hospitals have to do the same, because we can see based on recent events this will otherwise not change,” he added.

The rate of cyber attacks in medical machines in the Philippines grew this year to 76% from 64% two years ago. Data from 2018 was not available as of press time.

Mr. Namestnikov said while many of the medical facilities in developing countries such as the Philippines are still heavily reliant on traditional methods of keeping records, the industry’s shift to digitalization is in the near future, hence the need to keep in mind the issues that would eventually come with it.

“These handwritten records will be digitalized in two to three years and everything will be online, because it’s cheaper for hospitals to have an online catalogue of all their patients than having all these handwritten things archived,” he said.

“So from a business perspective, hospitals will move to digital, and it’s just a matter of years when this trend (of medical cyber attacks) will be relevant to these hospitals. They should be prepared for it,” he added.

RLC to develop 2 condominiums in Bridgetowne

By Arra B. Francia, Senior Reporter

ROBINSONS Land Corp. (RLC) is developing two residential condominiums that will add about 2,000 residential units to its first township project called Bridgetowne in the cities of Quezon and Pasig.

RLC President and Chief Executive Officer Frederick D. Go said the company started construction for Cirrus, a 40-storey condominium under the Robinsons Communities brand. The project offers mostly studio units sized 25 square meters (sq.m.), priced at more than P3 million each.

“Cirrus has been over 80% sold, we did that within a month,” Mr. Go said in a press briefing inside the township yesterday.

The project looks to target employees of business process outsourcing (BPO) companies that will operate within the township, since Mr. Go said they want to give residents the live-work-play-dream dynamics in the estate.

“Cirrus is being built with them in mind…We want to be able to house everybody who works and lives here in Bridgetowne, even regular employees can afford to stay,” Mr. Go said.

RLC is also constructing a 40-storey high-end luxury project called Velaris in partnership with Hong Kong Land Group (HKLG), which acquired a 1.7-hectare piece of land in Bridgetowne last year.

Velaris will offer 500 units targeting more senior professionals working in the township or nearby areas.

Mr. Go said HKLG could build more projects in the area since the land they acquired is good for three buildings.

The company also unveiled on Thursday a 200-meter bridge across Marikina River that will connect Pasig and Quezon cities. It will have four lanes for vehicles, a one-meter lane for bikers, and a 1.5-meter lane for pedestrians.

“This will help alleviate traffic especially those coming from the east, I’m sure this bridge will be a very welcome infrastructure for everyone to use,” Mr. Go said.

The bridge will be opened to the public by the end of next year, since land development is still ongoing in parts of the township.

Next to the bridge, the company will also install a 60-meter statue called The Victor by Filipino-American artist Jeffrey Manuel. It is expected to be finished by 2020.

Mr. Go hopes the statue will draw more visitors to the estate.

Bridgetowne is the RLC’s first township project. Covering a total of 30.61 hectares, the project is located along E. Rodriguez Jr. Avenue and Ortigas Avenue in Barangay Ugong Norte. The company will develop the property within the next 10 to 15 years.

Aside from residential condominiums and office buildings, Bridgetowne will also house a shopping center, a five-star hotel, a one-hectare Main Central Park, school, hospital, and transport terminal.

RLC’s net income attributable to the parent jumped 20% to P4.01 billion in the first half of 2019, following a 13% increase in revenues to P14.786 billion.

Shares in RLC dropped 3.95% or P1 to close at P24.30 each at the stock exchange on Thursday.

Hidden figures no more: women shining in Hollywood

LOS ANGELES — Women enjoyed a banner year in Hollywood movies and on television over the past year, notching up record highs in lead roles and gaining ground in influential jobs behind the scenes such as directors and writers, according to two studies published on Wednesday.

Box office hits like Black Panther and Crazy Rich Asians also shattered barriers for black and Asian characters, reflecting the drive for wider changes in the entertainment industry that were fueled by the 2017 sexual misconduct scandal in Hollywood and the #OscarsSoWhite backlash four years ago.

Thirty-nine of the top 100 films of 2018 featured a woman in a leading or co-leading role, up from 33 in 2017 and just 20 in 2007, according to a study by the Annenberg School for Communications and Journalism at the University of Southern California.

There was also a 12-year high in the percentage of black and Asian speaking male and female characters, while women featured more frequently in action and adventure movies.

“In 2018 we saw companies taking steps to ensure that certain groups were included in some of their most notable movies,” Stacy L. Smith, one of the authors of the Annenberg study.

On television, female characters made up a record 45% of speaking roles across comedies, dramas, and reality shows on broadcast, cable and streaming services, compared to 40% in the 2017-2018 TV season, the Center for the Study of Women in Television and Film at San Diego University found.

Behind the scenes on television, women accounted for a record 31% of all creators, directors, writers, executive producers, producers, editors, and directors of photography.

Both studies said that despite progress, there was still much to be done.

While women comprised a historic high of 26% of directors in the 2018-19 television season just ended, men still outnumber women 3 to 1 in this role, the San Diego study found.

Hollywood remains far below the 50/50 male-female parity that advocates are pushing for among on-screen talent, behind-the-scenes workers and studio executives. — Reuters

Tighter disclosure rules for state-owned enterprises pushed

STATE-OWNED enterprises (SOEs) in Asia were found to comply with looser disclosure rules when compared to listed companies, prompting the need for the issuance of tighter regulations and stricter implementation of existing guidelines in each country.

This was one of the key points during the 12th Meeting of the Asia Network on Corporate Governance of State-owned Enterprises sponsored by the Organization for Economic Co-operation and Development (OECD) and the Governance Commission for Government-Owned and Controlled Corporations (GOCCs).

“We found that SOEs in Asia are often subject to weaker disclosure rules compared to listed companies, and it often reflects SOEs’ limited degree of corporatization,” OECD Corporate Finance and Corporate Governance Division Policy Analyst Chung-a Park said in a panel discussion during the forum in Makati yesterday.

Ms. Park mentioned that South Korea, the Philippines, and Vietnam are some of the countries in Asia that have specific reporting and disclosure requirements, while Cambodia and Malaysia have none.

At the same time, the OECD also found that SOEs are not always subjected to the same accounting and auditing requirements as private incorporated companies.

“(This) makes it difficult to identify irregular financial transactions. So these are often due to weak internal audit and control functions and guidance on corporate disclosure due to weaker degree of corporatization,” Ms. Park explained.

Weaker disclosure rules and auditing requirements could make SOEs vulnerable to money laundering and corruption.

In the Philippines, Securities and Exchange Commission (SEC) Chairperson Emilio B. Aquino said that the Revised Corporation Code passed into law earlier this year has given them the power to promote corporate governance. This allows the commission to issue guidelines that would protect GOCCs.

For instance, Mr. Aquino noted in a panel that they have issued Memorandum Circular No. 15 Series of 2019, which requires companies to disclose their beneficial owners.

“Any company must disclose the ultimate natural person that owns them…so that potential launderer will not utilize the layer of companies, launderers will not be behind state-owned enterprises or GOCCs,” Mr. Aquino said.

“It’s still a work in progress, we’re trying to plug some loopholes. There is some resistance, we put the responsibility on the corporate secretary to disclose this,” he added.

Aside from establishing guidelines that would strengthen disclosures, Institute for Democracy and Economic Affairs Chief Executive Officer Ali Salman said that regulators must focus on preventing corruption.

“They should promote awareness and competencies in preventing corrupt practices, including strengthening internal control,” Mr. Salman said in a panel.

For India’s Institute of Public Enterprise Director Ram Kumar Mishra, stopping corruption in SOEs starts at the top of management.

“If the president is corrupt, then all will be because of the culture…you have to look into yourself, practice not preach. We need such people like that,” Mr. Mishra said in a panel. — Arra B. Francia

Ariana Grande sues Forever 21 for $10-Million look-alike ad campaign

POPULAR SINGER Ariana Grande has sued Forever 21 for $10 million, accusing the fashion retailer and a beauty company started by its billionaire founders’ daughters of piggybacking off her fame and influence to sell their wares.

In a complaint filed on Monday, Grande said Forever 21 and Riley Rose misappropriated her name, image, likeness, and music, including by employing a “strikingly similar” looking model, in a website and social media campaign early this year.

She said this followed the breakdown of talks for a joint marketing campaign because Forever 21 would not pay enough for “a celebrity of Ms. Grande’s stature,” whose longer-term endorsements generate millions of dollars in fees.

Grande has more than 65 million Twitter followers and 163 million Instagram followers. A core part of the 26-year-old’s fan base overlaps Forever 21’s and Riley Rose’s target markets.

“Forever 21 does not comment on pending litigation as per company policy,” the company said in a statement. “That said, while we dispute the allegations, we are huge supporters of Ariana Grande and have worked with her licensing company over the past two years. We are hopeful that we will find a mutually agreeable resolution and can continue to work together in the future.”

Riley Rose did not immediately respond on Tuesday to e-mailed requests for comment. The daughters of Forever 21’s founders Do Won and Jin Sook Chang, Linda and Esther Chang, opened the first Riley Rose boutique in 2017.

According to Grande’s complaint, Forever 21 and Riley Rose misappropriated at least 30 images and videos, including by using audio and lyrics from her recent No. 1 single “7 Rings,” and by using the look-alike model.

“The resemblance is uncanny,” the complaint said. — Reuters

Labor deal readied with Canada’s Yukon territory

THE Department of Labor and Employment (DoLE) has signed an initial agreement with Canada’s Yukon government for skilled workers to be deployed to the western Canadian territory.

Labor Secretary Silvestre H. Bello III said at a briefing that the agreement was signed last week. Yukon has a population of 3,000 Filipinos out of 20,000 overall.

Meron kaming (We have a) joint communique that will pave the way for the deployment of skilled workers to Canada… In Yukon, we are planning to deploy on a government to government basis,” he said.

Mr. Bello added that a contract will be ready by the end of this year. He said more discussions are needed between DoLE and the Yukon government.

“They will designate their technical working group and we will have our technical working group and they will have discussions on the preparation of a bilateral agreement which will also provide a template employment contract,” he said.

DoLE is also in talks for a similar agreements with the province of British Columbia, with Mr. Bello adding that he expects to sign a bilateral agreement soon pending further discussions. — Gillian M. Cortez

Megaworld keeps top credit rating for fixed-rate bonds

PHILIPPINE Rating Services Corp. (PhilRatings) retained the highest rating for Megaworld Corp.’s P12-billion fixed-rate bonds issued in 2017.

In a statement Thursday, the local debt watcher assigned anew a PRS Aaa rating for the listed property developer, indicating that the company has an “extremely strong” capacity to meet its obligations.

The rating carries a stable outlook, which means that it is unlikely to change in the next 12 months.

The Series B fixed rate bonds will mature in 2024, with an annual coupon rate of 5.3535%. The offering’s base size was at P8 billion, plus P4 billion for the oversubscription option, taken up by a wide range of investors such as banks, investments funds, insurance companies, and the retail market.

“The assigned issue credit rating takes into account Megaworld’s robust liquidity, sound capitalization, well-experienced management and favorable industry outlook,” PhilRatings said in a statement.

Megaworld currently has 24 estates under its portfolio, including Eastwood City in Quezon City, Newport City in Pasay City, Boracay Newcoast, Iloilo Business Park, and Uptown Bonifacio in Taguig.

It looks to launch two to three estates every year, as it targets to end 2020 with 30 townships.

As part of its expansion program, Megaworld has committed to spend P300 billion over the next five years for its residential, office, retail, and hotel projects. It will spend P65 billion for this year alone.

The company is part of tycoon Andrew L. Tan’s holding firm, Alliance Global Group, Inc., which also has interests in liquor through Emperador, Inc., gaming through Travellers International Hotel Group, Inc., quick-service restaurant through Golden Arches Development, Inc., and infrastructure through Infracorp, Inc.

Megaworld’s net income attributable to the parent rose 16% to P8.307 billion in the first half of 2019, after gross revenues also went up 16% to P29.586 billion.

Shares in Megaworld jumped 3.19% or 16 centavos to close at P5.18 apiece at the stock exchange on Thursday. — Arra B. Francia

Japanese jobs for South Korean graduates dry up amid trade row

SEOUL — Song Min-su, a Japanese major in his final year at Hannam University, south of Seoul, has watched in dismay as a spat between South Korea and Japan over wartime forced labor has spiraled into a damaging political and economic row.

Song, 25, has been pursuing his dream of working in Japan. With historic labor shortages in Japan, he had been confident he would avoid the tough job search many of his peers faced at home in South Korea, where youth unemployment is growing.

But Japanese curbs on the exports of high-tech materials to South Korea has escalated a bitter diplomatic feud between the neighbors, sparking boycotts that have hit the sales of Japanese cars, beer and other goods in South Korea, as well as travel to Japan.

“It will not only get harder to find a job in Japan, but the current sentiment will also make things more difficult to find a job in Korea with the use of my Japanese major,” Song said.

South Korea has long had testy relations with former colonial ruler Japan, with Tokyo citing a dispute over forced labor during World War Two as a factor that led to tighter export controls implemented in July.

South Korea responded by stripping Japan of favored trading nation status and scrapping an intelligence sharing pact.

The dispute has derailed a surge in hiring of highly educated South Korean graduates by Japanese companies in recent years, forcing job seekers, employment consultants and the Seoul government to rethink Japan as a place to work.

That has piled more pressure on South Korean President Moon Jae-In, who came to power in 2017 on promises to create jobs and address inequality.

Nearly 10% of South Koreans aged 15 to 29 were jobless in July, according to Statistics Korea, but the department says the real rate be as high as 24% including those with temporary or part-time jobs, who gave up looking for jobs or who are preparing for state examinations.

Employment growth in South Korea has been sluggish as conglomerates that dominate the economy have slowed hiring due to a sharp rise in minimum wages and a cooling economy, especially in the manufacturing and construction industries.

Japan, with unemployment at a 26-year-low, was the most popular overseas place to work for Koreans in 2014 and 2016-2018, data from Human Resources Development Service of Korea shows.

Japan was the destination for nearly one-third of the 5,783 South Korean graduates who found jobs overseas last year under government programs, more than triple the number in 2013.

NO SHOW
But last month, the Labor Ministry canceled a job fair focused on Japan and Southeast Asia for late September that would have been the largest organized by the government, blaming the strained ties.

Another job expo held by the Korea-Japan Cooperation Foundation for Industry and Technology in mid-July, also with a focus on jobs in Japan, received 20% fewer participants than its previous fairs, an official told Reuters.

South Korea’s Labor Ministry is planning the second of its bi-annual global job fairs in November, but instead of focusing on jobs in Japan as it did last year, it plans to broaden the list of countries.

Japanese employers made up 115 of the 184 companies that took part last time.

Some private job fair organizers say public sentiment on Japan is souring as the dispute drags on and local media highlight negative comments by Japanese leaders.

“I recently received a few calls from my students that they decided to no longer look for jobs in Japan,” said Kasugai Moe, CEO of KOREC, a recruiting agency specializing in Japan. Some students said their parents had disapproved of them seeking jobs in Japan, she added.

KOREC has decided to scrap its next job fair scheduled for later this month.

Park Cheol-su, head of the careers office at Hannam University, said while he routinely hosted 10 or more Japanese companies for on-site recruiting each year, he has not heard from any companies in recent weeks.

“(The Japan export curb issue) definitely seems to be affecting these events,” Park said.

Japanese employers are worried candidates who have accepted job offers might change their minds, according to a Korea International Trade Association (KITA) official speaking on condition of anonymity.

South Korea plans to turn elsewhere to promote jobs for its youth. KITA held its first Germany-focused job fair in late August.

Song, the Japanese major, says he will keep looking for jobs in Japan but is also keeping his eyes open for opportunities at home.

“Boycott is a matter of individual choice, but employment is a bread-and-butter issue,” he said. — Reuters

Chopra, Jonas named People’s best dressed

ACTRESS Priyanka Chopra and her pop star husband Nick Jonas — seen here during the 91st Academy Awards’ Vanity Fair party on Feb. 24 — were named the best dressed of 2019 by People magazine on Wednesday, marking the first time in the celebrity magazine’s history that a couple has shared top style honors. Chopra, 37, a former Miss World who became a star in both Hollywood and Bollywood, and Jonas, 26, topped People’s annual best dressed list in an eclectic slate that included actor Billy Porter and tennis champion Serena Williams along with style-setting veterans such as Jennifer Lopez, Lady Gaga and Celine Dion. “It’s the first time ever that we have had a man or a couple on the Top 10 list, let alone as the best dressed. But it really felt like these two deserved it,” People’s style and beauty director, Andrea Lavinthal, told Reuters. “The combination of the two of them is so exciting to watch. (Jonas) is not exactly someone who just wears a black tuxedo and stands next to her on the red carpet. You can tell that he enjoys fashion as much as she does,” Lavinthal added. Chopra, who became the first Indian to headline a US TV drama series as the star of Quantico, married the younger of the three Jonas Brothers musicians in New Delhi in December 2018, becoming one of the most sought-after celebrity couples in the world. — Reuters

Large banks to show ‘greater resilience’ to risks

THE COUNTRY’S biggest banks will show “greater resilience” despite changing operating conditions compared to their mid-sized peers, Fitch Ratings, Inc. said in a report on Thursday.

According to the debt watcher’s first semester report card on Philippine banks released yesterday, BDO Unibank, Inc., Metropolitan Bank & Trust Co. (Metrobank), and Bank of the Philippine Islands (BPI) are expected to fare better than smaller banks as operating conditions for financial institutions in the country change as they are backed by stronger franchises, generally less aggressive risk appetite and higher profitability.

“Net interest margin (NIM) trends have diverged between the three large Philippine banks — BPI, BDO and Metrobank — and their rated mid-sized peers CBC (China Banking Corp.), PNB (Philippine National Bank) and RCBC (Rizal Commercial Banking Corp.). This follows higher domestic interest rates and tighter liquidity conditions over the past year,” the report said.

The report noted that the big three banks saw higher NIMs in the first half compared to their performance in the same period last year, pushing stronger net interest income growth.

In the case of the mid-sized banks however, including China Bank, PNB, RCBC, the Development Bank of the Philippines, and the Land Bank of the Philippines (LANDBANK), Fitch Ratings observed that their NIMs were generally more compressed during the same period.

“We believe this trend highlights the differences in the banks’ franchises within a highly competitive banking environment, where 46 universal and commercial banks vied for market share as of July 2019.”

“Most banks…reported steady or better net profitability regardless of NIM performance. This was helped in some cases by a rebound in trading gains, which can be volatile,” the debt watcher added.

Fitch said banks faced tighter liquidity in the first semester, with lending rates also expected to have peaked already as the central bank continues to ease monetary policy and amid competition.

“We expect some re-acceleration as public spending picks up, which should ease domestic liquidity conditions. Market interest rates have declined in recent months and gradual cuts to reserve requirements (200 basis points in 2019 so far) should be slightly positive for system liquidity and NIM,” the debt watcher said.

“Banks’ continued shift towards higher-margin SME (small and medium enterprises) and consumer loans should provide a slight tailwind for NIM over the medium term, but this will also come with greater risk,” Fitch added.

Meanwhile, Fitch noted that the default of Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) was a one-off as it had “only a minimal effect on the affected banks’ NPL (nonperforming loan) ratios, aside from RCBC.”

On Jan. 8, the South Korean shipbuilder filed for a corporate rehabilitation before an Olongapo court, leaving some $412 million in outstanding loans from BDO, Metrobank, LANDBANK, BPI and RCBC in limbo.

“Loan quality may be tested by global growth headwinds and higher domestic interest rates in the near term, despite some policy-rate easing in recent months. However, we expect any asset-quality deterioration to be modest as GDP (gross domestic product) growth remains fairly health and less exposed to global trade uncertainties.”

“We expect credit and GDP growth to improve in 2H19 as election-related drags on public spending in 1H19 dissipate. However, the US-China trade dispute poses downside risks with potential implications for asset quality and profitability.”

The report likewise noted that the capital adequacy of Fitch’s rated local banks were better in the first half of the year, thanks to steady internal capital generation and lower loan growth which clocked in at 10% year-on-year as of end-June from a 15% finish in 2018.

“We expect capital ratios to decline gradually as loan growth re-accelerates and outpaces internal capital generation in the medium term,” the ratings agency said in the report.

Meanwhile, Fitch believes local lenders’ asset quality will remain healthy despite the heightened watch on Philippine offshore gaming operators (POGOs), which may affect the property sector.

“Increased scrutiny from the Chinese authorities on offshore gaming operators…may have knock-on effects for domestic property demand,” the debt watcher said, with POGOs cornering about 30% of Manila’s office space from 2017-2018.

“Any impact on banks’ asset quality is likely to be indirect. We understand that most major property developers have placed internal limits on their direct exposure to such operators in light of the potential policy risk,” Fitch said. — L.W.T. Noble

PCC monitors impact of safeguard duty on cement

By Victor V. Saulon, Sub-Editor

THE Philippine Competition Commission (PCC) is monitoring the impact of the safeguard duty imposed on imported cement on the prices of consumer products, its top official said.

“We are, of course, monitoring the development of the sector,” PCC Chairman Arsenio M. Balisacan told reporters on the sidelines of the launch on Thursday of a preliminary manual for competition assessment of regulations in Makati City.

He declined to discuss further the results of its observation, citing an ongoing case in the commission relating on the cement industry.

“It’s true that the safeguards are supposedly addressing some concerns. The agencies involved with that have that authority, have that mandate. So what is necessary is to ensure that when we have policies like that, that it would not undermine the competitive process and it would not result in high prices for consumers,” he said.

“Of course, we have to take care also of our producers, but we [should] also be very mindful of the effects of such policies on consumers and the overall common good, the public interest,” he added.

Mr. Balisacan was reacting to the imposition of a definitive safeguard duty on cement for three years, which the Department of Trade and Industry (DTI) announced on Tuesday.

The DTI said it had “established that the imposition of the definitive general safeguard measure shall be in the public interest.” It imposed a safeguard duty of P250 per metric tons (MT) or P10 per 40-kilogram (kg) bag for the first year of the implementation to encourage and challenge the local cement industries to be globally competitive.

The amount of safeguard duty is to be reduced for the next two years, P9 per 40-kg bag for the second year and to P8 per 40-kg bag for the third year. A yearly review will be conducted to determine the appropriateness of the safeguard duty.

The DTI said the imposition of a safeguard measure is not expected to cause a shortage of cement in the domestic market considering that the cement manufacturers have sufficient capacity to meet domestic demand.

Mr. Balisacan said there is a need to understand where the high prices were coming from, including “poorly informed regulatory controls” that have prevented the entry of players.

“Price control may not be the best instrument,” he said, adding that opening up the market could be another option.

Sought for comment, Isidro A. Consunji, president and chief executive officer of DMCI Holdings, Inc. said in a text message: “I think the amount is not big and probably tolerable though many do not accept the premise that the cement industry needs it.”

Mr. Consunji is a former president of Philippine Constructors Association, Inc., which counts as members engineering, building, trade and specialty contractors, including construction materials and equipment suppliers and allied organizations.

Other private entities with ongoing construction projects did not immediately respond to a request for comment on the impact of the safeguard duty on their businesses.

“Obviously it’s a concern because when you have an ongoing investigation and there are other government actions that influence the outcome of the investigation, that would be an issue, but I’m not saying now that there is an issue,” Mr. Consunji said.

Mr. Balisacan said the ideal process is to undergo a regulatory impact assessment. He added that such exercise has “good scientific basis” to identify the options, the associated costs and benefits, and the best option that benefit the consumers, producers and the domestic economy.

“It’s okay to protect the industry but we have to do it in such a way that overall efficiency and economy is improved, productivity is advanced and the consumer welfare is not sacrificed,” he said.

He said questions should be raised on whether the granting of safeguards and standards are the appropriate tool to address the objective of promoting the viability of domestic companies and their ability to compete in the global market.

ADVERTISEMENT
ADVERTISEMENT