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Reforms eyed to boost FDI inflows

By Janina C. Lim
Reporter

FOREIGN direct investments (FDI) inflows to the Philippines dropped in 2018 even as most Southeast Asian countries saw gains that pushed the region’s overall haul for the year to an all-time high.

While admitting that challenges to the Philippines’ investment environment persist, Trade Secretary Ramon M. Lopez said the government is pushing reforms to make the country more attractive to foreign investors.

The United Nations Conference on Trade and Development’s (UNCTAD) 2019 World Investment Report on special economic zones showed FDI flows to Southeast Asia last year went up 3% annually to a record $149 billion, hiking the subregion’s share in global inflows to 11% in 2018 from 10% in 2017.

“The growth in FDI was mostly driven by an increase in investment in Singapore, Indonesia, Vietnam and Thailand. Manufacturing and services, particularly finance, retail and wholesale trade, including the digital economy, continued to underpin rising inflows to this subregion. Strong intra-ASEAN (Association of Southeast Asian Nations) investments and robust investment from other Asian economies also contributed to the trend,” the report said.

“However, inflows to some countries (Malaysia and the Philippines) declined,” it added.

FDI inflows to the Philippines slid by 25.75% to $6.46 billion from $8.70 billion in 2017, the UNCTAD report showed.

Mr. Lopez admitted “there are still challenges [to investments] we have to continuously work on.”

The Trade chief cited the need to revise the Public Service Act and the Retail Trade law and the Foreign Investment Negative List (FINL) to open up to more foreign investors, further improvement in infrastructure; digital connectivity; power and logistics; ease of doing business reforms down to the local government units; special eco zones with access to more skilled resources; better infrastructure links; data connectivity; relevant technologies; and environmental and sustainability systems.

“We are now working on modernization of incentives to make it performance-based and timebound,” Mr. Lopez said in a mobile message yesterday.

“We need to attract more quality investments, bringing in higher value operations, more R&D and innovation-oriented industries, in industries with comparative advantages, provide greater facilitation in government permits and services,” Mr. Lopez added.

UNLOCKED POTENTIAL
American Chamber of Commerce of the Philippines, Inc. Senior Adviser John D. Forbes meanwhile said the fact that FDI flows to the country continue linger around the $10-billion threshold already marks an improvement.

Data from the Bangko Sentral ng Pilipinas showed that FDIs settled at $9.802 billion last year, sliding 4.4% from 2017’s $10.256 billion.

However, the Philippines’ continued failure to remove barriers in some areas, coupled with uncertainties that hounded the local investment environment last year, prevented the economy from capturing potentially bigger gains, he said.

“It has more potential, but the potential is not being unlocked. Mining has not been issued any new license since 2012…while agribusiness is still a difficult area for foreign investment. Also, in the last year, we had TRAIN (Tax Reform for Acceleration and Inclusion) 2 and also security of tenure, so those measures created uncertainty on what the rules would be going forward,” Mr. Forbes said in a phone interview on Wednesday.

“Companies that are here are still expanding but at a slower rate…and there are the companies that did not choose to come here,” Mr. Forbes added.

The UNCTAD report further noted that Chinese investments in ASEAN members continued to increase in 2018 “partly due to several large M&A deals in the services sectors in Singapore, Indonesia and the Philippines.”

Meanwhile, FDI outflows from Southeast Asia were steady at $70 billion last year, accounting for 7% of global outward flows in 2018.

Nevertheless, the outlook for the subregion remains “promising, as countries in the subregion continue to introduce measures to improve the investment environment,” according to the UNCTAD report which cited, among other developments, the Philippines’ move to ease some investment restrictions through an updated FINL that took effect in November last year.

Strong economic fundamentals, low-cost and resource-rich environments, the digital economy, and commitments to develop and upgrade information and communication technology, transport and power facilities will remain attractive to investors.

“A doubling of announced greenfield investment projects in the subregion to $139 billion in 2018 corroborates this promising outlook,” the report added.

Ranking seventh in the 10 biggest greenfield projects intended for least-developed countries announced last year is Aboitiz Equity Ventures, Inc.’s $1.15-million fossil fuel electric power project in Myanmar, the report showed. The project was the lone initiative from an ASEAN firm in the list.

Global FDI flows in 2018 fell by 13% to $1.3 trillion, marking the third straight year that FDIs moved downward.

The UNCTAD report attributed this mainly to large-scale repatriations of accumulated foreign earnings by United States multinational enterprises in the first two quarters of 2018, following tax reforms introduced in that country at the end of 2017.

Foreign funds to continue fleeing PHL stock market

By Arra B. Francia
Senior Reporter

BPI SECURITIES, Inc. sees up to $600 million worth of foreign funds exiting the local stock market this year as more investors place their funds in China, following its greater weighting on the MSCI index.

BPI Securities President and Chief Executive Officer Hermenegildo Z. Narvaez explained that about $1.9 trillion worth of funds track the MSCI Emerging Market index, influencing their decisions on where to park their funds.

“The MSCI emerging market index, which a lot of fund managers track, has decided to increase the weighting of China, and as a result smaller emerging markets like the Philippines will be impacted,” Mr. Narvaez told BusinessWorld in a recent interview.

“So expect a lot of outflows. Our expectation is we’re looking at about anywhere between $400-600 million of outflows on the back of this,” he added.

The MSCI during its May 2019 semi-annual index review decided to increase the weight of China stocks in three steps until November. China’s position in the MSCI Emerging Market index could then increase to 42% of its market cap, including Hong Kong-listed shares.

“We account for about 1.1% of that Emerging Market index…Even though we’re only 1% of the Emerging Market index, it’s still a significant figure — $400-600 million accounts for more than a month’s worth of trading in the index,” Mr. Narvaez said.

BPI Securities’ top executive added that regional peers such as Indonesia and Thailand will also be affected by the rebalancing.

Sought for comment, Philippine Stock Exchange, Inc. President and Chief Executive Officer Ramon S. Monzon noted that the MSCI review is a regular event expected by the market.

“(W)hile its results may spark buying or selling, this action happens within a specific time frame. After that, foreign investors factor in developments that may impact their investment strategy. Foreigners are still net buyers of our market as of today,” Mr. Monzon said in an e-mail last week.

To date, the PSEi has a net foreign yield of P28.24 billion, according to online stock market platform Investagrams.

He added that the Philippine market is still attractive to foreign investors given upbeat prospects on the country’s economy.

“Sentiment on the Philippines continues to be positive particularly with recent developments including the upgraded credit rating by S&P, the affirmed credit rating by Fitch Ratings and the improvement of the country’s competitive ranking based on the International Institute for Management Development’s report.”

Taking into account the MSCI rebalancing, BPI Securities is projecting the PSEi to finish at the 8,650 level by the end of 2019. This is 2.8% lower than its earlier forecast of 8,900 disclosed last year.

The market could further be affected by negative sentiment on the US-China trade war, as two of the world’s largest economies continue to impose tariff increases without much progress on a much awaited trade deal.

Mr. Narvaez said that while the Philippines will not be heavily affected by the trade war, general sentiment will affect investor’s appetite.

“The problem is the stock market is not just a function of fundamentals but sentiment, and how asset prices behave and the risk appetite of investors. Because of this trade war, there’s a general aversion to risk,” Mr. Narvaez explained.

There will then be a tendency for investors to start investing in what is perceived as safer assets.

“In the near term, probably more money is going to be taken away. Some movements in safer assets such as the yen, the dollar, short term US Treasuries, and even gold for example.”

Asked what sectors seem more attractive for investors, Mr. Narvaez listed down banking stocks, which he noted will benefit from the recent reserve requirement ratio cut. He also added property and some consumer stocks.

SEC targets to release ICO rules later this year

THE Securities and Exchange Commission (SEC) is optimistic it can come out with the guidelines for initial coin offerings (ICO) this year as it hopes to regulate the number of businesses using this method to raise money.

SEC Chairperson Emilio B. Aquino earlier said they will release the approved rules and regulations for ICOs within the second quarter, but noted they encountered other problems that caused the delay.

“We want that out already because these are additional products. But at the same time ang concern namin (our concern is), some of the scams here are saying they are into crypto and all that. They’re just adding additional problems,” Mr. Aquino told reporters in a recent media event.

Mr. Aquino added that the commission was unable to focus on the draft as it resolved to go after Kapa Community Ministry International, Inc., one of the country’s largest investment scams that has raked in at least P50 billion in investments from the public.

“But we are there, we want it out soonest. It has to be this year,” Mr. Aquino said.

The move to regulate ICOs is part of the SEC’s efforts to protect investors who may otherwise be taken advantage of by investment scams disguised as start-ups offering tokens.

So far, the commission has already subjected the proposed ICO guidelines to two rounds of consultations, in November 2018 and last January.

The SEC defines ICOs as a “distributed ledger technology fund-raising operations involving the issuance of tokens in return for cash, other cryptocurrencies, or other assets.”

Through ICOs, companies issue coins or tokens to the general public for the purpose of raising money. Tokenholders may then collect gains through profits or an increase in the value of tokens if the start-up is successful. They may also be given voting or governance rights and usage rights, among others.

The proposed guidelines state that companies must file an initial assessment request with the commission before conducting an ICO to let the SEC determine whether the tokens to be issued are securities or not.

If deemed as a security, the company will then have to submit a white paper containing “relevant, complete, and timely information regarding the ICO project which are understandable to users with reasonable knowledge on blockchain technology.”

These details include the use of funds to be generated from the sale of the ICO tokens, a description of the currency, cryptocurrency, or other assets that will be received as payment for the tokens, and the risks in investing, among others.

The SEC earlier said it will issue the ICO rules alongside the release of guidelines for virtual currency exchanges (VCEs), or companies that exchange virtual currency to fiat currency, and vice versa.

Draft rules on VCEs however have yet to be released.

“We’re also getting updates from most jurisdictions. Sa Australia may code of conduct. Mas mahigpit pa sila (They are stricter) compared to the government, so we’d like to adopt their model,” Mr. Aquino said. — Arra B. Francia

PLDT to redevelop Makati offices, sell Smart Tower

PLDT, Inc. said it is pushing through with its plan to redevelop two offices and sell Smart Tower in Makati City, and to replace them with a new office building.

Manuel V. Pangilinan, chairman, president and chief executive officer of the telecommunications giant, told reporters Tuesday the company is still in talks with Japan’s NTT Realty group but the project will carry on.

“They’re very keen to redevelop. We’re proceeding with the redevelopment plans for the two buildings, and then we said we would like to sell Smart Tower. Unless they want to redevelop it themselves,” he said, referring to PLDT’s assets in Makati City: the Ramon Cojuangco Building, MGO Building and Smart Tower.

Once PLDT proceeds with the redevelopment of the buildings with NTT Realty, Mr. Pangilinan said the Japanese firm will provide the capital and their redevelopment experience for the project. But he noted the company would need one or two local partners that have experience in the Philippines.

“We’re talking. Siguro [Probably] NTT Realty and one or two local partners… I have talked to several. Dami naman dito di ba [There’s plenty in here],” he said.

PLDT Chief Finance Officer Anabelle L. Chua revealed plans to raise capital from selling company assets during its financial results briefing last month. She said the sale of the properties “could fetch somewhere from P3-5 billion.”

The amount to be generated will be used to finance PLDT’s P78.4-billion capital expenditures this year.

However, the plans to transfer PLDT’s headquarters to the southern part of Manila still hangs, as Mr. Pangilinan said the idea is a “big debate” internally.

“Hindi ako maka-decide syempre [I can’t decide], because it’s a very important…important not so much because it is a large amount, but because it affects all people, all the employees and staff and suppliers and vendors. Because if you move to the south or the north, medyo malayo [it’s quite far],” he said.

The transfer of the company’s headquarters was a revival of an earlier plan in 2017 that didn’t push through due to complaints from employees.

“We need a taller building. We need to be housed in one location,” Mr. Pangilinan added.

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

Empire East to develop condo complex in Pasig-Cainta area

EMPIRE EAST Land Holdings, Inc. (ELI) will unveil over 3,000 residential condominium units this year within a recently launched township in the Pasig-Cainta area.

In a statement issued Tuesday, the listed property developer said it will build a 38-tower, high-rise residential complex in Empire East Highland City. This is the company’s 24-hectare township being jointly developed with parent Megaworld Corp.

Located along Felix Avenue at the boundary of Pasig City and Cainta, Rizal, Empire East Highland City will feature an elevated city concept in order to adjust to its uphill location.

The development will have an elevated green park that will lead residents to the Highland Mall and to ELI’s residential complex project.

“Our property offerings have made the residents’ comfort and convenience a true priority, upgrading their experiences in a way that contributes directly to their happiness and well-being,” ELI President and Chief Executive Officer Anthony Charlemagne C. Yu said in a statement.

Megaworld earlier said it will spend P20 billion over the next 10 years to develop Empire East Highland City with ELI. The first phase of the township will involve the Highland Mall, which will have a gross floor area of 58,000 square meters (sq.m.) and is scheduled to open by the end of 2020.

The township will also include mixed-use towers, retail areas, an 8,000-sq.m. green and open park, and a 500-seating capacity church.

Megaworld earlier said that it is banking on the large population in Cainta to boost the demand for the residential units to be launched in the township.

In 2018, ELI said it sold projects covering almost 184,000 sq.m. of floor area. At the same time, the company completed the construction of about 95,000 sq.m. of living space and turned over more than 2,700 condominium units across nine residential towers.

Since its establishment in 1994, the company said it has completed 110 towers with about 17,000 condominium units. This is in addition to 7,700 residential lots at its horizontal developments.

The listed firm’s net income attributable to the parent grew eight percent to P215.76 million in the first quarter of 2019, on the back of a five percent increase in gross revenues to P1.23 billion.

ELI is part of the property business of tycoon Andrew L. Tan. His holding firm Alliance Global Group, Inc. also has core investments in liquor through Emperador, Inc., gaming through Travellers International Hotels Group, Inc., quick-service restaurant through Golden Arches Development Corp., and infrastructure through Infracorp Development, Inc.

Shares in ELI stood at 47 centavos each on Tuesday, 1.05% lower compared to the previous session. — Arra B. Francia

Facebook’s Stories feature seen to boost growth of businesses

SOCIAL MEDIA giant Facebook urged businesses to use its Stories feature to boost their growth.

“There’s this new format which everyone is using…and they’re using it a lot. And the younger you are, the more you actually use it. And that if they’re (businesses) not getting on that bandwagon, they’re going to be missing out,” Facebook Philippines Country Head John Rubio told reporters on Friday in a briefing.

“This is where people are now and this is where people are sharing stories,” Mr. Rubio said.

Stories, which are photos and videos viewable within 24 hours, are used daily by 500 million accounts on Instagram and 300 million more on Facebook and Messenger.

According to a Facebook-commissioned Ipsos survey conducted in 12 countries, 62% of the people who use Stories became more interested in a product after viewing it via the feature, while 31% said they are more likely to use the Stories platform in the future to connect with brands.

In the Philippines, 76% of users surveyed found the use of Stories in advertising as great, with 61% saying that they were purchasing more online due to the feature. On the other hand, 58% said they are more interested in seeing Stories from brands that “feel real.”

“People love it because it’s full screen, very immersive. It’s ephemeral, so I’m not afraid to post something… It’s very playful, interactive,” Mr. Rubio said.

As of the first quarter, around three million advertisers were using Stories to advertise in Facebook’s family of applications (Facebook, Instagram and Whatsapp).

Mr. Rubio said both small and large businesses can benefit from the use of platforms like Stories.

“Stories give people the power to make the most out of mobile to drive business result,” he said.

The official also urged businesses to be more playful and “try to fit in with how people are using” Stories when creating ads.

“The more creative it is, the more people will want to interact and move forward,” Mr. Rubio added.

Facebook, Instagram and Whatsapp have already placed Stories at the forefront of their apps due to the growing number of content people put up and the increase in people using the feature.

“The Stories format may be fleeting, but its impact is not… There’s opportunity for brands to spark interest and prompt more consumers to take immediate action on their online finds,” Mr. Rubio said. — Katrina T. Mina

Price of hotdogs may jump in July — Frabelle

By Janina C. Lim, Reporter

HTTP://FRABELLE.COM/

THE Frabelle Group of Companies said the price of hotdogs may jump by 20% next month if the government fails to retain the 5% import tariff for mechanically deboned meat (MDM) for chicken which meat processors have enjoyed for nearly a decade.

The government recently ordered the reversal of the low tariff to the 40% tariff, the original rate in 2012 before the country offered MDM, among other agriculture products, as a concession to allow the Philippines to continue placing a quantitative restriction on rice imports.

Under the concession, the MDM import duty will revert back to the higher rate after a law lifting import limits on rice is implemented.

The rice tariffication law took effect on March 5, so the 40% tariff on MDM is currently being implemented at the borders.

“We are going to feel the effects maybe starting next month on our production because we still have stocks of the old tariffs,” Frabelle Group President Francisco Tiu Laurel, Jr. told reporters on Monday in Makati City.

Mr. Tiu Laurel said the company has not felt the impact of the new regulation since it still has stocks of MDM imported at the low tariff level.

“The consumers have not felt it. If the government will not put it back to the 5%, we will expect that the consumers all over the country will expect a price hike of at least 20% on the midpriced to the economically priced hotdogs,” Mr. Tiu Laurel said.

The company may see a 35% hike in its production cost once its starts importing MDM at the 40% duty.

“But I believe the government is looking into our association’s request to maintain the 5% chicken MDM only. We hope the government will soon sign the retroactive incentive to lower it back to 5% to benefit the Filipino consumer,” Mr. Tiu Laurel added.

The interagency Committee on Tariff and Related Matters has decided to retain the 5% tariff on MDM chicken despite appeals from the poultry sector which argued that such low tariff opens an avenue for importers to misdeclare goods so as to escape higher tariff rates imposed on premium meat products, the entry of which can pose an unfair competition on the local poultry sector.

SAUSAGES
Meanwhile, Wisconsin-based Johnsonville LLC which the Frabelle Group recently tied up with through its subsidiary, Frabelle Fishing Corp., said the low tariff on MDM does not present incentives for them to manufacture here as they do not utilize MDM so much, but the 40% tariff on importing sausages from the US is a factor to consider.

“It is a 40% tariff coming in today for US sausages. If we can produce here, we can offer much more economical solution to the sausage category on the high end,” Michael Stayer-Suprick, president of the company’s international division, said during the media briefing.

Johnsonville CEO Nick Meriggioli said the firm is looking at locally manufacturing Johnsonville’s premium sausages here “as one of the options” for the firm to gain a wider reach and be more affordable in the local setting.

The joint venture between the two firms will be called Frabelle Corp., which will house the Bossing Pinoy, Yummy, Cheezydog, and Premium meat brands of Frabelle Fishing and manage Johnsonville’s business in the Philippines.

The joint venture will focus on the production, distribution and sales of chilled and frozen meats, primarily: sausages, tocinos, burgers, tapas, longganisa and hotdogs in the Philippines.

Frabelle’s current brands will continue to be made in Manila and sold through its current sales network, while Johnsonville-brand sausages will now be sold exclusively through Frabelle’s sales and marketing network.

The Frabelle Corp. manufacturing operations will be fully integrated into the Johnsonville supply chain network.

The Frabelle Group is engaged in diverse business lines, primarily in fishing, seafood processing, meat products, shipbuilding, energy and real estate.

Alibaba’s smart speaker to feature in Audi, Renault, Honda cars

SHANGHAI — China’s Alibaba Group Holding Ltd/ on Tuesday said its voice-controlled assistant will feature in local vehicles from Audi AG, Renault SA and Honda Motor Co. Ltd., as the tech giant expands in artificial intelligence (AI).

The Tmall Genie Auto smart speaker will allow drivers to use voice commands to, for instance, place orders on Alibaba’s online retail platform and buy movie tickets, Alibaba said at the CES Asia 2019 technology trade show in Shanghai.

In the near future, the speaker will also allow drivers to monitor and control smart devices at houses equipped with a Tmall Genie-compatible device, Alibaba said in a joint statement with the three automakers, without specifying vehicle models.

“We are thrilled to partner with global, distinguished auto brands such as Audi, Renault and Honda,” said Miffy Chen, general manager at Alibaba AI Labs. “Together, we can greatly enhance our in-car services and make driving experiences more intelligent and interconnected.”

The Tmall Genie is akin to Amazon.com Inc’s Echo. Alibaba launched the device in 2017 and released an auto version in April last year. Other automakers that have said they will install the device in their vehicles include BMW and Volvo Cars.

Amazon also has a vehicle version of its Echo, dubbed the Echo Auto, which it announced in September. — Reuters

Grab eyes Singapore banking license

HONG KONG/SINGAPORE — Grab, Southeast Asia’s most valuable start-up, is exploring a move into Singapore banking as regulators in the Southeast Asian city-state consider allowing online-only banks, four people with knowledge of the process said.

Grab is close to hiring a consultancy to advise it on its banking potential and is gearing up to apply for a digital-only bank license in Singapore if the banking regulator decides to open up the sector, said the people, who declined to be identified as they were not authorized to speak to the media.

Singapore-headquartered Grab’s interest in what would be its first foray into banking has not been reported before.

Grab declined comment.

When asked for a response, the Monetary Authority of Singapore (MAS) referred Reuters to its comments issued last month when it said it was studying the potential for allowing “digital-only banks with non-bank parentage” into its market.

Hong Kong, Singapore’s fierce financial center rival, began issuing licenses earlier this year.

A potential entry by Grab — backed by Japan’s SoftBank Group Corp. — and others would mark the biggest shake-up in years for a market dominated by DBS Group Holdings Ltd., Oversea-Chinese Banking Corp. and United Overseas Bank Ltd.

The MAS could make a decision in the next couple of months on whether to admit digital-only banks with nonbank parentage, as well as the eligibility applicants, the people said.

The city-state’s banking regulator is likely to issue only two to three licenses in the first phase, two of the people said.

SNAZZIER SERVICES
The interest from Grab underscores how Asia’s nonbanking firms are keen to challenge traditional banks by leveraging their technology and their user databases to offer banking services to retail customers and small businesses.

Securing a digital banking license in Singapore could help seven-year-old Grab to benefit from its existing data on transport movements, payment transactions and consumer behavior, the people said.

Last year, Grab teamed up with Japan’s Credit Saison Co Ltd. to provide loans in Southeast Asia.

Global fintech players are among other groups expected to seek licenses in Singapore, with some of them looking to form joint ventures, said two of the people.

Consultants said a digital banking license could also appeal to Singapore Telecommunications Ltd. (Singtel), which is expanding beyond its traditional carrier services into areas such as mobile payments and cybersecurity.

“It is too premature to comment but having ventured into mobile financial services, we are open to exploring the feasibility of such an opportunity should it arise,” a Singtel spokeswoman said in an e-mailed response.

In Hong Kong, affiliates of Alibaba Group Holding Ltd. and Xiaomi Corp, and consortia led by Standard Chartered PLC and BOC Hong Kong Holdings Ltd. were among those who won the digital-only banking licenses.

“In Hong Kong, the guidelines were quite precise in terms of what applicants had to prove in order to get a virtual banking licence, more so than in Europe,” said Dan Jones, APAC partner at consultancy Capco Digital.

“It will be interesting to see whether MAS goes down a similar route to Hong Kong … so that the only people who can apply are established companies, rather than literal start ups.”

As in Hong Kong, online-only banks in Singapore are also expected to launch by offering services such as savings accounts, personal loans and travel insurance, two of the people said. — Reuters

There’s nothing cheap about Ginebra San Miguel

EVERY TIME someone judges me for reaching for a bottle of Ginebra San Miguel (because I’m not handling a more expensive bottle), I point out the gold seal on the label (itself a work by National Artist Fernando Amorsolo). The gold seal is a Monde Selection medal awarded by Brussels-based institution International Institute for Quality Selections. Ronald Molina, Assistant Vice-President and Marketing Manager for Ginebra San Miguel summarizes the sensation: “The only thing cheap about Ginebra San Miguel is the price.”

The gin brand has been around since 1834, which Mr. Molina points out, makes it older than the Republic of the Philippines (founded 1898). For 185 years of the brand’s history, the recipe has not changed, he said, ensuring that what your ancestors were sipping — throughout the Revolution, the American Occupation, the Second World War (I can keep going) — will be the same as what you’d be sipping now, that is, if you were so inclined to reach for a bottle of gin that costs less than P100.

Easy to turn your nose up at that, but consider this: a report from the International Wine and Spirits Research group cites that the country is the world’s biggest gin market, and Ginebra San Miguel is in large part a contributor to that. Said Mr. Molina, “A lot of the world’s gin is consumed in the Philippines, and the leading brand of that is Ginebra San Miguel.”

“We’re part of the millionaire group — liquors that are bottling 1 million cases and beyond,” he added. “The process, the care we put into distilling the gin… is at par with world standards.”

Gin has been around since the time of the Romans, with gin taking its name from ginevra, another name for the juniper berries from which gin is distilled. Ginebra San Miguel itself was distilled in Manila, and was acquired by La Tondena in the 1920s, before shifting ownership several times, finally landing in the lap of San Miguel.

“It’s been a part of history, culture, life, and flavors of celebrations of a lot of people in the Philippines,” said Mr. Molina.

The gin was celebrated in an event in Quezon City, where they launched the gin’s new home online, https://oneginebranation.com/. The website contains recipes, history, and brand events that gin enthusiasts can attend. “The role of the brand is to build bonds,” said Mr. Molina.

Ginebra San Miguel has also seen the release of the Premium Variant (costing a little less than P200), and Mr. Molina says that they plan to explore the market further. He also says that while Ginebra already exports to other countries, especially in Asian countries with large Filipino populations, he says, “I believe that the Philippines has something to contribute to the history of gin.” — Joseph L. Garcia

Microsoft unveils next-gen ‘Project Scarlett’ Xbox console

MICROSOFT Corp. on Sunday unveiled its next-generation Xbox console, known as “Project Scarlett,” which is set to hit store shelves during the 2020 holiday season.

The device will be four times more powerful than the Xbox One X console and be powered by an Advanced Micro Devices chip, the company said during its Xbox E3 conference in Los Angeles.

The console will show up to 120 frames per second, or twice the average TV, and include a solid-state drive, Microsoft said, allowing games to load much faster than on its older mechanical hard drives.

The latest version of Microsoft’s popular Halo video game will be launched along with the new console.

Rival Sony Corp. has also revealed plans of its next-generation PlayStation 5 console, with similar specifications including an AMD chip, but no official release date has been announced. Analysts expect a late 2020 release.

Microsoft said its game-streaming service “Project xCloud” will go into preview in October. Rival Alphabet Inc.’s Google on Thursday last week started taking pre-orders for its Stadia game-streaming service which will launch in November.

A new feature will allow users to stream games directly from their own Xbox console, instead of Microsoft’s servers, the company said.

“Two months ago we connected all Xbox developers to Project xCloud,” Phil Spencer, Microsoft’s executive vice-president for gaming, said. “Now, the console streaming service will “turn your Xbox One into your own personal and free xCloud server.”

“Whether you’re using a console in our data center or your console at home, this October you’ll be able to use our hybrid gaming cloud to play your games wherever you go. Where you play is now entirely your choice,” Spencer said.

The company announced “Project xCloud” last October saying it was testing a new game streaming service designed to work across PCs, consoles and mobile devices.

Since then, Microsoft has revealed that the service uses hardware similar to that in its existing Xbox One gaming consoles.

“That means an existing library of more than 3,500 games will work on the service without any changes or modifications required by the developer,” Microsoft said in a blog post in May.

Analysts have said Microsoft is better positioned than most to capitalize on cloud gaming, citing its strength in infrastructure, content it owns, and experience in gaming.

Several technology companies are looking to boost services revenue through games streaming, including Nvidia Corp., Sony and Electronic Arts while Amazon.com Inc. is reportedly working on its own service as well. — Reuters

CIC targets to collect two million data subjects for credit registry

CIC PRESIDENT Jaime P. Garchitorena said the firm wants to end the year with nine million data subjects. — BW FILE PHOTO

STATE-RUN Credit Information Corp. (CIC) eyes to onboard two million data subjects in its credit information system within the year as it is set to collect from large government-owned and -controlled companies (GOCC).

CIC President and Chief Executive Officer Jaime Casto Jose P. Garchitorena said in an interview the country’s sole public credit registry wants to end the year with nine million data subjects, coming from the current seven million unique files.

“The onboarding of additional two million, we feel that’s a doable goal for this year,” The next goal in the next 12-18 months is to onboard some of the larger GOCCs such as SSS (Social Security System) and GSIS (Government Service Insurance System),” Mr. Garchitorena said.

He added that GSIS committed to submit the credit information of two million of its members, while SSS estimated to bring in the data of 15 million members who availed their loans.

“These are the big numbers we’re looking at over 18 months, but we’ll start increasing our database from the previous five million to existing seven million and bringing that to nine in the next few months. I think that’s very doable,” the CIC president added.

The credit registry had 5.867 million unique data as of October last year, which came from financial institutions such as banks, cooperatives, credit card firms, insurers and GOCCs, among others.

Mr. Garchitorena said CIC considers the 15 million estimate of SSS’ borrowers as a “super set” of data as having a social security number and a job are the usual first requirements for Filipinos looking to borrow money from formal institutions.

“Once you get a job and your social security number, you can borrow from SSS and avail of a credit card… Because the largest data set is from the SSS, there’s a good chance that all the other sets might be captured by this,” he said.

The credit registry added it is eyeing to include loan data from Microfinance Information Data Sharing, Inc., which will likely bring in about eight million data subjects.

“If that pushes through, that will not only be a significant jump in the (number of) data subjects, but it will also offer a view into a rare subset of lending which is the microfinance lending,” Mr. Garchitorena said.

To hit its nine-million goal for data subjects by yearend, CIC said it will also target the “low-hanging fruit” by enhancing the data quality standards of its current submitting entities.

“We’re undergoing some very aggressive data quality monitor coordination with central bank-covered institutions. From that alone, the additional two million data subjects will be uplifted,” Mr. Garchitorena said.

Some 1,600 financial institutions are currently registered with CIC, with 396 of them regularly submitting credit data.

Republic Act No. 9510 or the Credit Information System Act mandates the establishment of a comprehensive and centralized credit information system, with CIC tasked to consolidate the data.

The law also states that submitting entities, which are lenders, are required to submit and provide all the credit data of their borrowers to CIC. — Karl Angelo N. Vidal

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