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Rembrandt’s The Night Watch begins on-site restoration

AMSTERDAM — Rembrandt’s 17th century masterpiece The Night Watch begins restoration work on Monday in Amsterdam where visitors will be able to watch every step of the Rijksmuseum’s biggest ever project.

The €3 million ($3.4 million) effort is expected to take about a year, museum director Taco Dibbits said.

That is due not only to the fame of the painting, which dates from 1642, but also to its size, as the canvas measures 3.63 by 4.37 meters (11.9 feet x 14.3 feet) and weighs 337 kg (742 pounds).

The painting will remain in its usual spot at the end of the Gallery of Honor in the Rijksmuseum and visitors will be able to watch from behind a glass wall as experts restore it.

Painted over several years, The Night Watch was commissioned as a group portrait of an Amsterdam city militia and broke new ground by showing its subjects in action rather than as a static portrait.

Experts argue over whether it was intended as a night scene or whether it is simply perceived as such because of Rembrandt’s use of shadows pierced by light.

Restorers will begin by taking thousands of high-resolution photos of the work from every angle and scanning it with lasers.

“Those you have to stitch together so you get one image and then we will be able to see which changes Rembrandt made” as he worked, Dibbits said.

Restorers want to learn “which pigments were used, so which paint he basically used, and also how we can treat it.”

The painting was most recently restored after a man attacked it with a knife in 1975. — Reuters

Razon’s firm stopped from taking over PECO assets

A MANDALUYONG court has declared sections of the law that granted Razon-led MORE Electric and Power Corp. a franchise as a distribution utility in Iloilo City as void and unconstitutional for infringing on the right of the area’s existing electricity distributor Panay Electric Co., Inc. (PECO) to due process and equal protection of the law.

“Wherefore, premises considered, judgment is hereby rendered declaring Sections 10 and 17 of RA No. 11212 void and unconstitutional for infringing on PECO’s rights to due process and equal protection of the law,” reads the dispositive portion of the judgment made by Monique A. Quisumbing-Ignacio, presiding judge of Branch 209 of the Mandaluyong City Regional Trial Court (RTC).

Republic Act No. 11212 was signed into law on Feb. 14, 2019, granting MORE a franchise to establish, operate and maintain a distribution system in the city of Iloilo.

“Consequently, PECO has no obligation to sell and respondent has no right to expropriate PECO’s assets under Sections 10 and 17 of RA No. 11212; and, PECO’s rights to its properties are protected against arbitrary and confiscatory taking under the relevant portions of Sections 10 and 17 of RA No. 11212,” the court order stated.

Section 10 authorizes MORE to exercise the power of eminent domain and acquire such private property as is actually necessary for the realization of the purpose for which the franchise is granted.

Section 17 states the power of MORE, as grantee, to effectively acquire power distribution assets. The distribution assets that exist within the franchise area could only refer to those of PECO.

The case was filed by PECO against defendants MORE, Department of Energy, Energy Regulatory Commission and all other agencies tasked to implement RA No. 11212.

The court also made permanent the temporary restraining order dated March 14, 2019 enjoining respondent MORE and/or any of its representatives from enforcing, implementing and exercising any of the rights and obligations set forth under RA 11212.

The rights that had been blocked by the court include commencing or pursuing the expropriation proceedings against petitioner PECO under the assailed provisions; and takeover by respondent MORE of PECO’s distribution assets in the franchise area.

The court decision was dated July 1. It was distributed to reporters on Tuesday, July 9.

The presiding judge said that in a long line of cases, the Supreme Court has defined “the power of eminent domain” as the power of the State to acquire private property for some public purpose.

“Although the power partakes of a sovereign character, it is by no means absolute,” the judge said.

For a valid exercise of the right of eminent domain, it is necessary that the property sought to be taken is not being devoted to the particular public use contemplated by the expropriation body, the decision read.

It stated that the power of eminent domain was never intended to be used as a tool to take private property already being devoted to public use from one person and transfer the same to another to be used for the same purpose.

“It does not achieve the ultimate end of eminent domain which, to repeat, is to meet a public need or public exigency,” it added.

PECO’s properties are already being devoted to public use, that is, for power distribution, thus the only tangible effect of the exercise of eminent domain by virtue of the assailed provisions would be to replace PECO with MORE as the owner of the existing distribution system.

The court points out that what it is discussing as unconstitutional is the transfer of all of PECO’s distribution assets existing at the franchise area by virtue of the exercise of the right of eminent domain as provided for in the assailed provisions.

“The grant of the franchise is another matter which is not the issue in the present petition,” it says.

Sought for comment, MORE Power legal counsel Hector P. Teodosio said they will file an appeal either before the Court of Appeals or the Supreme Court.

At the same time, Mr. Tedosio said the decision of the Mandaluyong RTC has no serious effect on the expropriation case they filed before the RTC Branch 37 in Iloilo City to acquire PECO’s assets.

“There is no serious effect because ang (the) RTC of Iloilo City where the expropriation is filed, is an independent and co-equal court,” he said yesterday.

On the other hand, PECO Administrative Manager Marcelo U. Cacho, in a press conference on Tuesday, said they will continue the legal fight while giving assurance that their customers will be given utmost priority.

“The (Mandaluyong) RTC confirms that one cannot legislate the illegal takeover of a private company lock stock and barrel in the guise of expropriation. We know that this decision will not stop our adversary but we are committed to keep up the fight and defend our rights under the constitution. PECO reaffirms the commitment we have given time and time again never to abandon Iloilo City —even as we keep up the fight,” Mr. Cacho said.

He added that PECO will be refiling their franchise renewal application before the House of Representatives once the 18th Congress opens on July 22.

PECO was granted a 25-year franchise in 1968 by virtue of RA No. 5360. The franchise was extended by another 25 years in 1994. The company was the only operator in the power distribution history of Iloilo City. It filed an application for renewal on July 22, 2017 in anticipation of the expiration of its legislative franchise by January 2019. — Victor V. Saulon with a report from Emme Rose S. Santiagudo

Hot, cold and busted sales in London show the risks of flipping art

COMPETING bids for a tiny abstract painting by Robert Ryman climbed higher and higher until — Bang! — the hammer came down on the 1963 canvas at £850,000 ($1.08 million), more than twice its low estimate.

The boisterous moment came during the evening auction of contemporary art at Sotheby’s in London on June 26, but it masked a sobering reality: Untitled #32 was far from a great investment.

The 7.7-inch square canvas marked with thick white brushstrokes had been purchased for $1.09 million less than two years earlier. The anonymous owner tried selling it last summer, when it appeared in a New York show priced at $1.8 million. The work returned to the market in June estimated at £400,000 to £600,000. While that did the trick, the seller barely broke even. The S&P 500 Index gained 16% over the same period it was held.

The result underscores the risk of seeking quick gains in the opaque art trade. Every couple of seasons, market darlings emerge while erstwhile favorites are cast aside. Some investors have made a killing flipping works by hot young artists or guaranteeing blue-chip pieces. Inevitably, though, there are missteps.

Sotheby’s got a single bid for a painting of a carpet by Rudolf Stingel, which the seller purchased for $3 million just two years earlier at Christie’s in Hong Kong. It sold for about $1.3 million (before the fees charged by the auction house).

“A lot of these works are not fresh to market and the estimates are quite aggressive,” said Benjamin Godsill, a New York art adviser. It’s also gotten harder to flip from one auction to another as more buyers can look up results online, he said.

Those who bought works by emerging artists from galleries a few years ago had a much better time of it.

Christie’s in June had 19 registered bidders for Out of Body, a 2015 oil and fabric collage on canvas depicting curvaceous female figures in bright colors, by Tschabalala Self, an up-and-coming artist with rave reviews and museum exhibitions under her belt. Four years ago, Out of Body was priced at less than $10,000 in her first solo gallery show in New York.

On June 26, it fetched £371,250, more than six times the high estimate and a record for the 29-year-old artist. The buyer was Jose Mugrabi, the patriarch of a collecting family known for its holdings of Warhols and Basquiats as well as investment in emerging artists. In 2013, the Mugrabi family paid $389,000 for Lucien Smith’s first painting at auction. It remains the artist’s record, long after his auction prices collapsed.

On June 27, another Self painting, Leda, fetched £237,500 at Phillips, roughly a 2,000% increase from four years earlier and about four times the high estimate.

At Sotheby’s, a large portrait of a young black woman, Compound Leaf (2017), by Toyin Ojih Odutola went for £471,000, more than three times the high estimate and also a record at auction. It was purchased from Jack Shainman gallery in 2017 for $40,000.

Such rewards are far from common advisers warn.

“Any time you buy a work by an emerging artist, it’s more likely be worth the same amount or less in five years than $100,000,” Godsill said. — Bloomberg

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Kicking off the year’s conference is Charles Hayes, Partner & Executive Managing Director, Asia, IDEO who will speak about “From Operational Efficiency to Creative Competitiveness: a Human-centered view of technology in the 21st Century”. Charles sits on the global leadership team of IDEO, one of the world’s most respected companies in innovation and design thinking. Other confirmed speakers include Donald Lim, Chief Executive Officer, Dentsu Aegis Network, Philippines who will discuss “The Digital Transformation Imperative” and share his thoughts how transformation is being implemented in the Philippines market.

The audience will also hear from Arvind Mathur, Chief Information Technology Officer, Prudential Singapore, who has led the transformation of the company from a traditional insurer to a future-focused digital organization and will challenge “Why your technology investments are not working yet!Sudev Bangah, Managing Director -ASEAN, IDC will be asking “Is the Philippines Ready to Slam on the DX Accelerator”? He will showcase exciting DX case studies from the Asia Pacific, looks at how Philippines companies compare with counterparts in the region, and where we expect DX for the country to be by 2022.

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Gardenia expands with new facility in Pampanga

By Vincent Mariel P. Galang, Reporter

GARDENIA Bakeries Philippines, Inc. is expecting stronger sales and volume growth this year, after it inaugurated its P2-billion bread manufacturing facility in Mabalacat City, Pampanga.

“Nationwide, we expect to grow by at least 25% (in volume and value), including Luzon with this factory. Because with Luzon, we’ve been here for 21 years, so we’ve been serving this market for quite some time but there are still areas that are not yet saturated so we are going to, susuyurin naming lahat ’yung [we will go to all] smaller markets,” Gardenia President Simplicio P. Umali, Jr. told reporters after the plant tour on Tuesday.

He mentioned Ifugao, Tabuk, and Mountain Province of the Cordillera Administrative Region (CAR) as areas where Gardenia will focus on increasing its presence.

The new facility can produce 400,000 loaves and buns a day, which Mr. Umali said will bring its total production to 1.8 million loaves and buns a day.

The new facility, which is Gardenia’s second largest after its Laguna plant, has production lines for white loaf, flavored loaf, bun and pandesal, and snack toast.

By the end of 2019, Mr. Umali said the company expects sales to reach P8 billion from about P7 billion in 2018.

“Profit-wise, in terms of profitability, it will still be very low because the margins that we are getting from bread are very low, but we expect to recover this over time… because you have to recover first the investment in the factories, and with this large investment… For us, any new factory takes about seven to eight years to recover the investment,” he added.

Gardenia is also targeting to increase the production of its low-priced brand NeuBake to 40% from 10%.

“As the market demand improves, we will expand. In fact, we intend to make that as much as 40% in the future because the low-income market is very large. We want to make this product available for them as a second brand,” Mr. Umali said.

“We think by next year, we could go to as much as 20%… probably in three years that could be 40%,” he explained.

NeuBake Bread is priced at about P40 per loaf, versus the Gardenia Classic White Bread priced at about P60 per loaf.

The Pampanga facility is the second fully automated bread plant that Gardenia has opened in the first half. It earlier inaugurated the bread manufacturing facility in Cagayan de Oro.

Mr. Umali said the company is planning further expansion, but declined to provide details.

Money flows into Asian equities on expectations of rate cuts, trade optimism

FOREIGN investors turned net buyers of Asian stocks in June as optimism ahead of a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, along with expectations of US interest rate cuts bolstered sentiment.

Overseas investors purchased a net $4.2 billion worth of equities in June, data from stock exchanges in South Korea, Taiwan, India, Thailand, Philippines, Indonesia, and Vietnam showed.

The leaders of the US and China agreed late last month to restart trade talks after Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing.

A collapse in trade talks had prompted sharp foreign outflows from Asian equities in May.

“The US-China trade truce at the G20 meeting will likely support further inflows over the weeks ahead but this will have to be balanced against the impact of slowing growth and elevated equity valuations in some countries (India, Indonesia),” noted Mitul Kotecha, a senior emerging markets strategist at TD Securities.

“On balance, we expect portfolio inflows to Asia to continue to strengthen but to remain discriminatory.”

In June, Thai equities attracted $1.5 billion worth of foreign money as the country’s political uncertainty ended after General Prayuth Chan-ocha secured a needed majority in the parliament.

Sino-US trade optimism helped Taiwan and South Korea to secure higher inflows last month, as the two countries have extensive ties with tech companies in China and are part of their supply chains.

However, India received just $374 million worth of inflows, the lowest in five months, as concerns over sluggish consumption and slowing growth overtook last month’s national election euphoria.

So far in July, foreign investors have sold a net $451 million in Indian equities. In its annual budget on Friday, the government proposed to increase listed companies’ minimum public shareholding and raise the income tax surcharge on foreign portfolio investors.

June inflows into Asia was also helped by expectations that the US Federal Reserve would aggressively cut interest rates soon to boost the economy.

However, a recent rebound in US job growth has reduced the likelihood the Fed will slash rates at its next meeting later this month, pressuring equity markets globally.

“The Trump-Xi meeting did indeed result in another trade truce, and both sides have restarted trade talks. But a deal could still be some time away, and is far from a guarantee,” noted Khoon Goh, head of Asia research at ANZ Research.

“A rate cut at the next FOMC meeting at the end of July is also far from a done deal given the still strong state of the US labor market.” — Reuters

A new mural on marine life decorates the Paseo underpass

IT WAS late one evening when a young woman, along with two friends, was walking through the Paseo de Roxas underpass in Makati on her way home after a long day at work. Mural artist A.G. Saño was painting at the steps of the underpass when she recognized him. She happened to have been a participant at his art and environmental engagement talks at a university in Camarines Sur, Bicol some years before. He then asked the woman and her friends if they were interested in helping him paint the mural. Mr. Saño said that “it is innate among our group to have strangers engage if they want to paint.

“The next night, they came back to paint with us,” he said, joining Mr. Saño’s company of nine artists on the project.

The new marine biodiversity-themed mural is a project of the Security Bank Foundation Inc., the corporate social responsibility arm of Security Bank Corp. (SBC) which supports education, arts and culture through nationwide teaching programs and classroom building projects.

“The theme for the Makati underpasses was Philippine nature and since education is our corporate advocacy, we decided to take this opportunity [to] educate the public about issues that are affecting nature, specifically Philippine biodiversity, through art,” Alfonso L. Salcedo, Jr., SBC President & CEO, was quoted as saying in a press release. “We develop and support social responsibility initiatives all over the Philippines. This mural is one of the ways we hope to educate and inspire the Makati community.”

SBC invited “artivist” (artist-activist) A.G. Saño to redesign the Paseo De Roxas underpass mural, which formerly had a spaced-themed artwork, to a marine biodiversity-themed mural. Tilted Art in Defense of Mother Nature, the mural was launched on June 26, coinciding with the bank’s anniversary month.

Mr. Saño has painted more than 700 murals in 16 countries, and 600 murals around the Philippines which depict peace and environment. His advocacy extends to peace efforts in Mindanao as a founding member of the Board of Trustees of TPBPM (Teach Peace Build Peace Movement), an NGO focused on peace through education and the arts.

“There’s a lot of difficulty and there’s a lot of satisfaction as well,” Mr. Saño told members of the press, on being an artist-activist. “You are doing something for the betterment of society, hindi ’yung, gagawa ka lang for yourself (not just working for yourself), it’s an avenue for artists to do something more than personal expression.”

“If you are an artist-activist, you offer your work to the society without expecting anything in return,” he added.

THE MARINE LIFE MURAL
Done in blue, green, and white elastomeric paint, Art in Defense of Mother Nature depicts 47 different marine creatures clad in armor.

Mr. Saño explained that having the animals wear armor symbolizes that they are currently living beyond their natural defence mechanisms.

“My statement is that it is not enough, the natural defense mechanism of the species, that’s why they are decreasing and we are now in a big extinction crisis,” he said in a mix of English and Filipino.

Gusto kong ipakita na may ipinaglalaban [tayo]. May beauty ’yung gusto nating i-proliferate (I want to show that we are fighting for something. There is beauty in what we want to proliferate),” he said.

The Art in Defense of Mother Nature mural is expected to be on view for three years. — Michelle Anne P. Soliman

RLC appoints new senior execs

ROBINSONS Land Corp. (RLC) has announced new appointments in key company positions.

In a disclosure to the stock exchange Tuesday, the Gokongwei-led property developer said it has appointed Jericho P. Go as senior vice-president and business unit general manager effective on July 5.

Mr. Go served as Megaworld’s senior vice-president from September 1998 to June 2019. In between his stint in Megaworld, Mr. Go sat as the vice-president of Greenfield Development Corp. from November 2004 to May 2006. Prior to that, he also worked in Ayala Land, Inc. from 1993 to 1997.

At the same time, RLC also disclosed the appointment of Jonathan Paul B. Balboa as vice- president. Mr. Balboa served as the vice-president for business development and leasing at Megaworld from April 2015 to June 2019, rising from his position as director for business development and leasing when he entered the firm in 2011.

Before entering Megaworld, Mr. Balboa was the senior business development manager of Helius Technologies from January 2003 to January 2011, and corporate account manager of Digitel Telecommunication from July 1999 to December 2002.

RLC’s attributable profit grew 19% to P1.83 billion in the first quarter of 2019, driven by a seven percent uptick in revenues to P6.78 billion.

Shares in RLC slipped 0.38% or 10 centavos to close at P26.50 each at the stock exchange on Tuesday. — Arra B. Francia

Robinsons Bank to start bond offer by end-July

By Karl Angelo N. Vidal, Reporter

ROBINSONS BANK Corp. will start its maiden peso bond offer later this month through which it is looking to raise up to P5 billion to support lending growth.

Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said in a text message that the Gokongwei-led bank will offer P2.5 billion in two-year bonds with an oversubscription option of another P2.5 billion from July 26 to Aug. 1.

The bonds will be listed on the Philippine Dealing & Exchange Corp. on Aug. 12.

“The bond will have a tenor of two years. Interest rate will be based on two-year BVAL (Bloomberg Valuation Service Reference Rate) with a spread of 40 to 80 bps (basis points),” Mr. Sarte said.

He added that the bank has yet to finalize the pricing of the bonds.

The fund-raising activity marks the maiden issue from the bank’s P10-billion corporate bond program. The bond issue proceeds are expected to support Robinsons Bank’s loan growth and improve its long-term funding position.

Interest of the bank’s debt papers will be paid quarterly on a 30-360 day count. Investors can place at least P50,000 with increments of P10,000 thereafter.

BDO Capital & Investment Corp. will serve as the sole arranger of the fund-raising activity. It will also act as a selling agent alongside Robinsons Bank and other financial institutions.

Manila-based debt watcher Philippine Rating Services Corp. (PhilRatings) assigned an issue rating of “PRS Aa minus” with a “stable” outlook to the planned fund-raising activity. This rating is a notch below the highest score.

The credit scorer took into consideration the bank’s “support from strong shareholders, its well-experienced management, more than satisfactory funding profile, the bank’s marginal, but growing banking franchise, and its modest profitability.”

The bank is 60% owned by JG Summit Capital Services Corp., while the rest is owned by Robinsons Retail Holdings, Inc.

Robinsons Bank booked a P40.07-million net profit in the first three months of the year, down 56.2% from P121.57 million booked in the same quarter in 2018.

The bank targets to double its net profit to P756 million this year from the P317.11 million it booked in 2018 on the back of growth in earnings from interest and fees.

Returning to Binondo

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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