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Artisanal bakeshop offers hybrid pan de sal and baguettes in Quezon City

SOMEONE ONCE told me that a good breakfast was a sign of a good life: someone has spent time, money, and care to make sure you’re properly nourished in the morning. Of these three options, Manu Mano, a small bakery in Banawe, Manila, chooses to occupy the space carved out by love.

BusinessWorld paid a visit to Manu Mano earlier this week, and CEO Samantha Gonzales said that since effort and time went into making their hybrid pan de sal and their baguettes, surely, that means love is behind it?

Manu Mano is made up of five people: Samantha Gonzales, Alexandra Versoza, Madeleine dela Torre, Cyril Cabotage, and Richie Manapat. Mr. Manapat is the baker at Panaderya Toyo, lending Manu Mano an urban pedigree. Meanwhile, Ms. Dela Torre, daughter of the owners of Banawe Bakery, lends some traditional and mass appeal to the story, although Ms. Dela Torre insists that she’s in charge of operations, and says that she isn’t a good baker). Ms. Versoza meanwhile, took an internship in Panaderya Toyo, and from here learned the techniques in making good bread, making it a mission to spread the word about good bread.

Manu Mano’s bread uses unbleached flour, so the flour takes weeks to whiten, age, and develop flavor, without the use of added chemicals. Ms. Gonzales said that it takes about six to eight hours to make their bread, baked upstairs in one of Banawe Bakery’s empty kitchens. Ms. Dela Torre meanwhile, says that their hybrid pan de sal (literally “salt bread,” small buns which make it to breakfast tables around the country) doesn’t take away from her family’s customers: Manu Mano’s artisanal breads cater to a different market, and are prepared another way — completely by hand.

See, that’s where Manu Mano’s name comes from. It used to mean a crude way of doing things, without the refinement of machinery. However, the team behind Manu Mano wants to honor the tradition of doing things by hand. In fact, the logo itself is a story of honoring hands: Manu Mano’s logo is taken from Albert Durer’s work, Praying Hands. Ms. Gonzales repeated the legend of the story behind the work: the famed German artist came from a large family, and they could only afford to send one child to study art, though two boys in the family wanted to do so. Through a coin toss, Albert went on to study art, while his brother went down to the mines, and funded his brother’s studies. Years later, when Durer had already achieved a measure of fame and fortune, Albert wanted to repay his brother’s sacrifice, but it was too late: Durer’s brother’s hands had been ruined through hard labor. The legend goes that Durer’s work was made to honor his brother’s hands.

In any case, BusinessWorld had a taste of what hands can really do with their artisanal hybrid pan de sal. Ms. Gonzales explains that it uses the word “hybrid” in the name for it is a weaving of two worlds: the Filipino pan de sal, and then the techniques and taste behind Western sourdough bread. She said that they adjusted the taste a bit so Filipinos won’t be alienated by the taste of sourdough. The result is — well, positively heavenly. It makes one immediately smile, when one tears apart the bread, of quite substantial weight and density, with just the right amount of airiness that lends to a good chew. The taste approaches something refined yet familiar, and the addition of Auro’s chocolate and cashew spread doesn’t hurt either. The baguette, meanwhile — well, remember that scene in Ratatouille where Colette teaches Alfredo that you can tell how good a bread is by its sound? BusinessWorld tried the same trick by cracking on the baguette’s crust and hearing a crunch like shoes on autumn leaves. It was true: the music in the bread predicted its taste, combining the crunch of a good baguette’s crust with the firm crumb.

In the near future, they plan to offer loaves and churros.

The bakery opens at 6 a.m., and while they originally said that it stays open until about 3 p.m., they’ve had to revise it to “until supplies last.” No matter, because one can choose to order from Grab Food and Lalamove’s Pabili service.

Ms. Gonzales said that they chose the location because most of the partners grew up around the neighborhood, and furthermore, the surrounding communities of Quezon City don’t really have many good bread choices, and the more expensive neighborhoods of BGC and Makati already have their own options. This was proven by people coming from as far as San Juan to get bread from Manu Mano.

The trip is sometimes for naught, however, as one customer proved. He arrived at about 10:30 in the morning only to find out that they’d ran out of bread.

Manu Mano is at Banawe corner Sct. Alcaraz, Quezon City. For details call 0996-642-2755 or check out their Facebook and Instagram pages at made.manumano and @made.manumano. — Joseph L. Garcia

Term deposit yields decline ahead of BSP review

YIELDS ON term deposits declined as demand went up on Wednesday ahead of the central bank’s policy meeting.

Bids for the term deposit facility (TDF) went up to P123.414 billion on Wednesday from the P78.639 billion received last week, above the P80 billion the Bangko Sentral ng Pilipinas (BSP) wanted to sell.

Broken down, bids for the seven-day papers totalled P31.187 billion, more than the P30 billion on offer but a bit lower than the P31.247 billion recorded last week.

Banks asked for yields ranging from 4.5% to 4.75%, a narrower margin compared to last week’s 4.5-4.99%, data from the BSP showed. Bids settled at 4.5844%, lower by 1.23 basis points (bps) from last week’s 4.5967%.

Meanwhile, demand for the 15-day notes amounted to P44.427 billion, above the P30 billion on offer and higher than the P29.777 billion seen the previous week.

Banks sought yields ranging from 4.5% to 4.71%, a smaller margin compared to 4.5-4.795% range last week. The average yield for this tenor stood at 4.6176%, down 3.72 bps from the 4.6548% seen last week.

The 28-day deposits were likewise oversubscribed as bids came in at P41.8 billion versus the P20 billion placed on the auction block, outpacing the P27.615 billion seen in last week’s offering.

Accepted yields ranged between 4.5% and 4.7%, lower compared to the 4.55%-4.845% range in the previous auction. The average yield settled at 4.6033%, down by 8.2 bps from last week’s 4.6853%.

The TDF is the central bank’s main instrument to mop up excess cash in the financial system and to better guide market interest rates.

Currently, the country’s key policy rates range from 4% to 5%.

All eyes are on the BSP’s Monetary Board as the market expects it to ease key interest rates by as much as 25 bps in its fifth policy meeting for the year this afternoon, which if realized, could bring borrowing costs to 3.75-4.75%.

BSP Governor Benjamin E. Diokno expects to cut policy rates by 50 bps this year, according to a Bloomberg report.

Meanwhile, after the last tranche of the BSP’s the 200-bp multi-phased reduction of banks’ reserve requirement ratios was implemented last July 26, reserve quotas of big banks and thrift banks now stand at 16% and 6%, respectively. — Mark T. Amoguis

Apple, Goldman Sachs start issuing Apple Cards to consumers

APPLE INC. rolled out its virtual credit card on Tuesday, working with bank Goldman Sachs Group Inc. on the new iPhone add-on that may help Apple diversify from device sales and build out the Wall Street bank’s new consumer business.

Apple announced the card in March, aiming to draw in iPhone owners by offering a card with 2% cash back on purchases with the Apple Pay service, no fees, an app to manage related finances, and a focus on data privacy.

For Goldman, the issuing bank, the card builds on a foray into its Marcus consumer banking brand, started in 2015.

Apple said a limited number of consumers who expressed interest in the card will start to receive sign-up invitations on Tuesday.

The card is designed to work with the iPhone, where users sign up for the card and can start using it immediately if approved via the Apple Wallet app and Apple Pay system.

Apple offers an option for a physical card made of titanium, but the physical card has no visible number. Instead, the card’s number is stored on a secure chip inside the iPhone, which generates virtual numbers for online or over-the-phone purchases requiring a number.

Apple has focused on privacy, saying that purchase information is stored on the user’s iPhone and that it cannot see the information. Goldman will not be allowed to use data for marketing purposes, even for selling other Goldman products.

Gene Munster, managing partner with Loup Ventures and a longtime Apple watcher, said Apple Card adoption is likely to be low in the first year, but that Apple Card could generate about $1.4 billion of high-margin revenue by 2023, adding about 1.8% to Apple’s overall earnings and complementing the much larger Apple Pay business for total payments revenue of $5.38 billion by 2023. Apple has roughly 50 million US Apple Pay users now.

But at Apple’s size — $265.6 billion in sales for fiscal 2018 — the revenue matters less than the effect on keeping the Apple customers tied to its brand, said Mr. Ben Bajarin, an analyst at Creative Strategies.

“If it works, it’s one more thing that causes you to stay deeply loyal and entrenched in the Apple ecosystem, even if something better comes along,” he said. — Reuters

NBA 2K19, Grand Theft Auto V help Take-Two surge past estimates

VIDEO GAME publisher Take-Two Interactive Software Inc. raised its full-year revenue forecast on Monday, boosted by the success of its games NBA 2K, Grand Theft Auto V and Red Dead Redemption 2.

The company, which has been working to secure a foothold in the changing gaming landscape, has managed to prevail over challenges posed by the rise of mobile-based, free-to-play games with its desktop- and console-based games mostly.

Grand Theft Auto V has sold nearly 100 million units since its launch in 2013, making it one of the best-selling games ever for the company.

NBA 2K19, which debuted last September, was the 5th best-selling game of 2018, according to research firm NPD.

Both the games were among the top-10 selling video games in June, according to NPD.

Take-Two’s 2017 acquisition of Spanish mobile game developer Social Point also helped the traditional game publisher widen its presence in the mobile gaming sector with games WWE, SuperCard and WWE 2K19 and compete against Glu Mobile and Zynga Inc.

Take-Two raised its annual forecast to $2.60 billion and $2.70 billion in adjusted revenue, up from its prior forecast $2.50 billion to $2.60 billion.

Analysts had expected $2.65 billion in revenue, according to IBES data from Refinitiv.

New York-based Take-Two forecast second-quarter revenue of $860 million to $910 million, above analysts’ estimates of $852.5 million.

On an adjusted basis, the game publisher’s revenue in the first quarter ended June 30 stood at $422.2 million, soaring above the average analyst estimate of $356.8 million.

Rival Electronic Arts posted first-quarter revenue above estimates last month, boosted by the strength of its battle royale game Apex Legends.

Shares of the company as well as other video game companies tanked after President Donald Trump, in response to the mass shootings in Texas and Ohio, called for an end to glorification of violence and blamed “gruesome and grisly video games” for that.

“We are sickened and saddened by these tragedies. But to blame the video game industry is irresponsible and disrespectful to the families of the victims,” Chief Executive Officer Strauss Zelnick told Reuters. “(Video games) are consumed worldwide. But gun violence is uniquely American and we need to address the issues.”

More than 165 million Americans enjoy video games, and billions of people play video games worldwide. Yet other societies, where video games are played as avidly, do not contend with the tragic levels of violence that occur in the United States, said Entertainment Software Association in a statement.

Take-Two’s net income fell to $46.3 million, or 41 cents per share, from $71.7 million, or 62 cents per share, a year earlier. — Reuters

Batangas port handles record throughput in 1st half

ASIAN Terminals, Inc. (ATI) said it handled a record throughput at the Batangas Container Terminal (BCT) in the first six months of 2019.

The listed port operator said in a statement yesterday it handled more than 160,000 twenty-foot equivalent units (TEUs) at the BCT from January to June, up more than 40% from in the same period a year ago.

This keeps ATI on track to achieve this year’s goal of exceeding the 250,000 TEUs handled at the BCT last year.

ATI said the increased cargo volume at its terminal in Southern Luzon has resulted to a faster turnover of shipments and reduction in traffic caused by trucks moving in and out of the port.

“BCT’s first semester cargo volume meant reducing over 80,000 truck trips along Metro Manila roads, with more consignees directly routing shipment via South Luzon’s preferred international gateway port,” it said.

Aside from its larger capacity, ATI said the bigger ships and higher trip frequency of international shipping lines also contributed to the increase in cargo volume during the six-month period.

“From seven, 11 weekly carrier services now cater to BCT which directly connect goods from China, Hong Kong, Singapore, Taiwan, Vietnam, Indonesia, Thailand and other key regional and global trade hubs to Calabarzon consignees,” it said.

ATI inaugurated in April a new berth at the BCT, which doubled its capacity to about 500,000 TEUs from 350,000 TEUs previously.

It currently has four quay cranes, eight rubber-tired gantry cranes, reachstackers, sideloaders and internal transfer vehicles among its list of equipment at the BCT. — Denise A. Valdez

Security Bank books higher income in 2nd quarter

SECURITY BANK Corp. booked a higher net income in the second quarter following the expansion of its core businesses.

The bank said in its quarterly report released Wednesday that it booked a P2.57 billion net profit last quarter, up 31.79% from the P1.95 billion posted in the same period last year. This brought its first-half net earnings to P4.95 billion, up 15.38% from last year’s P4.29 billion.

Return on assets was at 1.3% , while return on equity stood at P8.83%.

Total revenues stood at P7.9 billion in the second quarter, up 32% year-on-year.

Net interest income went up 22% to P6.12 billion from P5 billion in the same quarter last year, driven by the expansion of its retail loans and low costs deposits, as well as increases in service charges, fees and commissions and trading gains, among others.

Retail loan growth was at 54%, with the business now accounting for 25% of the bank’s total loans versus the 18% share last year. Low-cost deposits rose 11%.

The bank said total loans climbed 11% to P427 billion, while deposits stood at P449 billion.

“Asset quality remained healthy, with gross non-performing loan (NPL) ratio at 1.1% versus 0.75% a quarter ago, and lower than industry’s 1.7% as of May 2019,” the bank said in a statement.

NPL cover was at 127.22% at end-June, up from 110.90% as of December 2018. It said it set aside P639 million in provisions for credit losses in the first half.

Service charges, fees and commissions also grew 70% to P1 billion, driven by loan fees, credit cards, deposit charges and bancassurance. Securities trading gains stood at P376 million.

Overall, Security Bank’s net interest margin rose to 3.59% in the second quarter, up 42 basis points year-on-year.

Meanwhile, the bank’s non-interest income also increased by 81% year-on-year to P1.7 billion.

The bank’s earnings increased even as its total operating expenses climbed to P4.57 billion last quarter from P3.45 billion in the same period in 2018.

Overall, Security Bank’s total assets increased 8% to P776.78 billion at end-June from P766.86 billion as of December 2018.

Its common equity Tier 1 ratio was at 16.8% at end-June, while its capital adequacy ratio stood at 19.2%.

Security Bank shares closed at P182.40 apiece on Wednesday, up P9.10 or 5.25%.

New stores drive Metro Retail’s Q2 profit higher

EARNINGS of Metro Retail Stores Group, Inc. (MRSGI) surged by 54% in the second quarter of 2019, thanks to the opening of new stores and the re-opening of its flagship store in Cebu following a fire last year.

In a regulatory filing, the Cebu-based supermarket operator said net income reached P390.72 million in the three months ending June, against P254.19 million in the same period a year ago. This followed an 11% increase in revenues to P8.93 billion.

MRSGI’s net income then jumped 57% to P539.48 million in the first half, after an 11% uptick in revenues to P16.72 billion.

The listed firm attributed the positive performance to same-store sales growth of 3%. It also recognized P372 million in insurance claims and reimbursement of losses from its Cebu store razed by a fire last year.

The company also benefited from higher rental fees due to “escalation clauses in our existing lease agreements.”

The company currently has 56 operating stores, and has started construction for a new one in Bacolod, Negros Occidental. Its network covers key cities in Central and South Luzon, as well as Central, Western, and Eastern Visayas.

Shares in MRSGI were up 5.26% or 13 centavos to close at P2.60 each. — Arra B. Francia

How PSEi member stocks performed — August 7, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, August 7, 2019.

 

New in the Metro: giant turon, showy pizza, and smoothies

IF YOU’VE ever had a turon (a fruit-filled fried spring roll) from SM, which people apparently line up for, then you’re bound to be excited over a giant version of it.

SM Hypermarket will hold its fourth Street Food Festival on Aug. 9, 11 a.m., at the SM Mall of Asia Music Hall. There, there will be a variety of food stalls, suppliers booths, promos and discounts on groceries, cooking demos, exciting games, raffle prizes and celebrity meet and greets.

Plus, you get to see the unveiling of the giant turon, prepared by TV chef Boy Logro.

PIZZA ACROBATICS
Interested in dinner and a show? Marco Polo Ortigas Manila is bring the two-time world champion of pizza acrobatics, Pasqualino Barbasso, over to the hotel from Aug. 28 to Sept. 5.

Pizza acrobatics is a newfangled technique for pizza dough manipulation, and one of Mr. Barbasso’s tricks is spinning the dough over his head, the pizza base measuring up to a meter in diameter.

Mr. Barbasso hails from Palermo in Sicily, where he developed his skills as a pizzaiolo as part of his family’s tradition. He started out as a normal pizza maker at his family’s pizzeria, but figured he needed more zing to his recipes.

He recently completed tours showcasing his talent at the Marco Polo

Hongkong, Niccolo Chongqing, and Niccolo Changsha hotels. With over 25 years of pizza-making experience, Mr. Barbasso heads a pizza school in Italy.

He has showcased his acrobatic talents in restaurants across the world, including Brazil, the United States of America, India, the United Arab Emirates, Malaysia and Argentina, to name a few.

Mr. Barbasso will perform his dough-wielding prowess at the hotel’s Cucina restaurant.

1771 TACKLES JUICE
The 1771 group, known for its traditional European fare at Chateau 1771 and upmarket Filipino dishes at Sentro 1771, takes a younger and healthier turn with its new concept, Juicery by 1771.

Salads and smoothies are front and center here, but still with the quality touch afforded by 1771. Examples include “The Big Vibe” which contains apple, beet, orange, carrot, and lemon. “Strawberry Fields” combines strawberry with fruits like apple, watermelon, and orange, while “On Your Feet” combines the health benefits of celery, ginger, and kale.

As for the dishes, there’s the signature Kale Caesar, but for something heavier, Asian Steak Tips and Romaine Caesar with Shredded Chicken or Quinoa are options.

There are also takeaway options with fruit cups or Soups To Go.

Juices are blended without ice, water, milk, or cream to get their full benefits, while smoothies are made with sugar-free, all-natural yogurt that makes them a good source of probiotics.

Sugar-free smoothies and shakes can also be had thanks to nipa sweetener, a low-glycemic index, natural flavoring sourced from the nipa palm.

All juices, shakes, and smoothies are made to order.

Juicery by 1771 is at the second floor of One Bonifacio High Street, 5th Ave. corner 28th St, BGC, Taguig.

IBM, other firms launch new blockchain network for supply management

NEW YORK — International Business Machines (IBM) Corp. announced on Monday a new blockchain network aimed at improving manual and cumbersome supply chain management.

Supply chain management involves overseeing the flow of goods and services, such as tracking the movement and storage of raw materials, inventory, and finished goods. It has been identified as one area that can benefit from blockchain technology, a shared database maintained by a network of computers connected to the internet.

Technology research firm Gartner Inc. said by 2023, blockchain will support the global movement and tracking of $2 trillion of goods and services annually.

The new blockchain network is called Trust Your Supplier and alongside IBM, the other founding participants were Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone.

Chainyard, a blockchain specialist firm, is providing the technology and building the network using IBM’s blockchain platform. The other companies, meanwhile, are putting their supplier data onto the network and contributing their expertise to expand the network.

Traditional methods of managing suppliers often involve cumbersome manual processes, which make it difficult to verify identities and track documents such as ISO certifications, bank account information, tax certifications, and certificates of insurance, IBM said.

By using a decentralized approach and an immutable audit trail built on blockchain, the company said the new network would eliminate manual time consuming processes and help reduce the risk of fraud and errors.

“The validation and onboarding of new suppliers is a critical pain point for virtually any company that relies on a robust supply chain to conduct business,” Marie Wieck, general manager for IBM Blockchain, said in an email to Reuters.

“By moving this process onto the blockchain, we’re taking much of that burden and shifting it to the network, where it can be shared in real-time more securely and efficiently.”

Wieck said IBM’s own procurement organization projects a 70 to 80 percent reduction in the time it takes to get new suppliers onboard and an estimated 50 percent reduction in administrative costs within its own business.

IBM has 18,500 suppliers around the world and said it will begin using the Trust Your Supplier network, initially bringing onboard 4,000 of its own North American suppliers over the next few months. The blockchain has limited availability with existing participants and is scheduled to be commercially launched in the third quarter of the year. — Reuters

RCBC sees double-digit profit growth

By Mark T. Amoguis, Researcher

YUCHENGCO-LED Rizal Commercial Banking Corp. (RCBC) is on track to grow its bottom line this year by double digits, a senior official said, as the bank’s net income climbed by almost a fourth during the first half.

“There is a good probability that we’re going to meet double-digit [net income growth] this 2019. With the things that we have been focusing on, the execution based on the plans that has been crafted over the past several years, the trajectory is…double-digit growth,” Horacio E. Cebrero III, RCBC senior executive vice-president and treasurer, told reporters during the bank’s first-half earnings briefing on Wednesday.

RCBC’s consolidated net income ended flat at P4.321 billion last year.

In a disclosure to the local bourse on Wednesday, the listed bank said its consolidated net income went up by 23% to P2.7 billion in the first six months from the P2.2 billion booked during the same period in 2018.

RCBC attributed this performance to the growth of its core business, especially in its net interest income and fee-based income, which grew 10% and 23% year on year, respectively.

“We are happy with the double-digit growth in income, a result of our consistent focus on strengthening the bank’s core business,” Eugene S. Acevedo, RCBC president and chief executive officer, was quoted in a statement as saying.

“However, I believe that there is more we can do and achieve. Moving forward, focusing on consumer loans and the SME (small and medium enterprises) sector will be the key for us to fight our way back,” Mr. Acevedo said.

In the first half, the bank’s net interest income went up 10% to P10.6 billion, driven by the growth in the outstanding loan portfolio of key select markets.

Loans to SMEs rose by 20% to P60.5 billion. Rizal MicroBank’s loans to micro and small business enterprises reached P1.2 billion, up by 18%.

Consumer loans, which include credit cards as well as mortgage and auto loans, increased by 18% to P120.6 billion. RCBC’s gross outstanding credit card receivalbles jumped by 37% to P25.0 billion, while its active card base stood at 788,000, 26% higher versus the comparable six-month period last year.

Meanwhile, RCBC’s non-interest income in the first semester more than doubled to P6.1 billion due to higher contributions in treasury-related and fee-based income. Trading gains reached P3.2 billion, while its fee-based income contributed P2.1 billion.

On the other hand, total operating expenses increased by 11% to P10.5 billion in the first half amid “significant growth” in business volume as its top line went up 32% annually.

Total resources reached P673.8 billion, up 15% year-on-year, as its total deposits went up by 6% to P418.6 billion. Its capital funds stood at P83.4 billion while its capital adequacy ratio stood at 16.13% — well above the minimum regulatory requirement of 10% for big banks — and common equity Tier 1 ratio at 13.29%.

RCBC shares closed at P30.60 apiece yesterday, up P1.40 or 4.79%.

PCC seeks comments on 8990’s proposed settlement

THE Philippine Competition Commission (PCC) is inviting the public to comment on its proposed terms and conditions before allowing a property developer from settling its abuse-of-dominance case involving a condominium project in Manila.

In a statement Wednesday, the competition watchdog said it received a motion for settlement from 8990 Holdings, Inc. and its unit Urban Deca Homes Manila Condominium Corp. regarding its case on an exclusive deal with an internet service provider (ISP) for one of its residential properties in Tondo.

The motion also covered the company’s eight other condominium projects in Mandaluyong, Muntinlupa, Bulacan, Cavite, Iloilo and Cebu.

“The call for comments on the proposed settlement terms is an exercise in transparency consistent with PCC’s rules as a mechanism to elicit non-confidential comments or observations from interested third parties and stakeholders,” the PCC said.

The proposed terms, which are open for public comment until Aug. 20, require the property developer to cease its exclusive deal with ISP Itech Rar Solutions, Inc. for nine of its condominium projects.

It also requires 8990 to invite other ISPs to offer their services to the tenants of these condominiums. Existing subscribers of the “expensive” service by the ISP must be allowed to opt out of their contracts for free, even if they are bound by a lock-in period.

The administrative fine for the settlement will be 25-30% of the relevant turnover, the value of which was not disclosed by the PCC.

“In this settlement process, the commitments are expected to rectify the harms to competition for the benefit of the affected consumers and the public. Through settlement, the imposable fine may be mitigated in consideration of the respondent’s cooperation with the PCC,” it said.

The PCC Enforcement Office filed a case against 8990 Holdings and Urban Deca Homes Manila Condominium Corp. earlier this year, citing abuse of dominance, following several complaints by unit owners and tenants of the Tondo condominium that the services of the company’s exclusive ISP was slow, expensive and unreliable.

If found to have abused its dominance in the market, the company could face a fine of up to P100 million. — Denise A. Valdez

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