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MHC seeks to raise P1.2B from private placement

MABUHAY Holdings Corp. (MHC) plans to raise P1.2 billion through private placement, it told the stock exchange late Tuesday.

The listed firm said in a disclosure that its board of directors has approved the issuance of 1.2 billion shares from the unissued portion of its present authorized capital stock to any interested investor at P1 per share.

The terms and conditions will be decided upon by the president of the company.

The Philippine Stock Exchange, Inc. implemented an hour-long trading suspension of MHC shares on Wednesday morning, as it ruled that the disclosure is covered by its rules on the additional listing of securities.

Incorporated in 1988, MHC operates as a holding firm with core interests in the acquisition and disposition of investments in securities, stocks, real and personal properties, and other kinds of properties and investments in other entities.

The company’s subsidiaries and affiliates include T&M Holdings, Inc., M&M Holdings Corp., Tagaytay Property Holdings Corp., The Taal Company, Inc., The Angeles Corp., and Mindanao Appreciation Corp.

MHC previously had a 29.62% stake in IRC Properties, Inc., now called Philippine Infradev Holdings, Inc. It reduced its stake in the firm to 11.4% in December 2018, and has since planned to focus on the acquisition of properties for rental properties to maintain its operations.

“Management believes that this move is strategic and will be beneficial for the group in the long run. The group intends to become more liquid and flexible while pursuing bigger urban real property development projects with its foreign business partners,” the company said in its 2018 annual report.

MHC booked a net loss attributable to the parent worth P91.68 million in the first quarter of 2019, coming from an attributable profit of P4.71 million in the same period a year ago. This came amid a 23% increase in gross revenues to P2.26 million.

Shares in MHC soared 15% or nine centavos to close at 69 centavos each at the stock exchange on Wednesday. The company’s market capitalization stands at P720 million. — Arra B. Francia

East West’s acquisition of PBCom car loan portfolio gets PCC nod

THE Philippine Competition Commission (PCC) has given East West Banking Corp. the green light to acquire the car loan portfolio of Philippine Bank of Communications (PBCom).

“In a Commission Decision issued on June 18, the competition authority found the asset acquisition, in particular the auto loan portfolio, will not likely result in the substantial lessening of competition in the auto loan market,” the PCC said in a statement posted on its website.

Under the deal, East West will buy part of PBCom’s auto loan receivables, specifically limited to dealership-generated accounts.

The PCC said the transaction will “not likely result in any significant change in market structure, and after the transaction, there is sufficient competitive constraints from other banks offering the same loan types and leases.”

PBCom was the 20th biggest bank in the country with assets amounting to P104.63 billion as of end-2018. The lender entered the auto loan industry in 2012 alongside home loans. As of end-2018, PBCom’s total auto loan portfolio stood at P5.77 billion, lower than almost P6 billion recorded in 2017.

In 2014, retail tycoon Lucio L. Co bought a stake in PBCom for nearly P6 billion, making Puregold the bank’s biggest single shareholder.

EastWest Bank’s acquisition of PBCom’s auto loans business will strengthen its position in the credit business. The Gotianun-led bank was the 11th biggest lender in terms of net loans with P214.38 billion as of end-2018. — K.A.N.Vidal

Demand for term deposits climbs ahead of BSP meet

DEMAND for the term deposits climbed on Wednesday. — BW FILE PHOTO

BANKS’ DEMAND for term deposits increased on Wednesday ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy review today.

The central bank received P40.787 billion in tenders for its term deposit facility (TDF) yesterday, more than double the P20 billion it placed on the auction block. This is also higher than the P26.962 billion worth of bids seen a week ago versus the P30 billion on offer.

Broken down, the seven-day term deposits received P20.259 billion in tenders, more than double the P10 billion on offer yesterday. This is also higher than the P10.77 billion worth of bids received last week for BSP’s P10-billion offer of six-day papers.

Accepted yields ranged between 4.5% and 4.7%, slightly wider than the 4.5-4.75% margin seen a week ago for the six-day deposits. This caused the average yield for the one-week papers to decline to 4.6278% yesterday from 4.6661% a week ago.

Meanwhile, banks wanted to park as much as P20.585 billion in the 14-day term deposits yesterday, also more than double the P10-billion offer volume. The total demand was likewise well above the P7.418 billion logged last week for P10 billion worth of 13-day papers.

Returns sought by banks for the two-week tenor ranged between 4.6 and 4.8% yesterday, narrower than the 4.5-4.9% margin seen last week. As a result, the average rate for the papers inched higher to 4.7107% on Wednesday from the 4.6562% quoted for the 13-day papers last week.

On the other hand, the BSP did not offer one-month term deposits this week. Last Thursday, the 27-day term deposits received P6.774 billion in tenders, lower than the P10 billion on offer. Yields sought by lenders ranged between 4.6-4.95%, causing the average rate for the one-month papers to climb to 4.7848% from 4.6602% in the previous auction.

The TDF stands as the central bank’s primary tool to shore up excess funds in the financial system and to better guide market interest rates.

The central bank’s Monetary Board is scheduled to meet today to review policy settings. Six out of 10 analysts polled by BusinessWorld expect the BSP to hold fire to ensure that inflation maintains its downward trend.

Last month, the BSP cut benchmark yields by 25 basis points (bp), bringing the interest rate on the central bank’s overnight reverse repurchase facility to 4.5%. The rates on the overnight lending and deposit facilities were also reduced accordingly to 5% and 4%, respectively.

The BSP also reduced the reserve requirement ratios (RRR) of lenders by a percentage point effective May 31 to 17% for universal and commercial banks, 7% for thrift banks, and 4% for rural and cooperative banks.

The reserve ratios of big banks and thrift lenders will be reduced further to settle at 16% and 6%, respectively, on June 28 and July 29.

Late last week, BSP Assistant Governor Francisco G. Dakila, Jr. said demand for term deposits is expected to increase on the back of the central bank’s recent easing moves.

“As the liquidity goes out to the system, then it can go back to the facilities of the BSP,” Mr. Dakila said.

He said TDF demand in recent weeks likely declined despite the BSP’s policy rate and RRR cuts because of the national government’s bond issuances. — Reicelene Joy N. Ignacio

Solving the ‘edge computing’ puzzle will make your television smarter

SINCE Japan launched its first deep space probe in 1985, the photographs have been taken in a relatively low-tech way, by pointing cameras at objects in the cosmos and letting them run. Whatever is captured gets sent back to Earth, where people cull the material for the most beautiful shots.

Problem is, this dragnet approach uses up precious bandwidth and batteries. So Japan Aerospace Exploration Agency (JAXA) is experimenting with a camera that’s more discriminating: It decides which pictures have the best light, angle and composition, and beams back only those. Using artificial intelligence (AI) on powerful, large computers? That’s no big deal. But it’s a lot harder on a tiny spacecraft with its serious energy constraints.

Enter LeapMind Inc., a Tokyo company specialized in “edge computing,” or running computations not on a central server or even a PC, but on remote devices with limited processing power and no internet connection. The idea is to bring AI to traffic lights, security cameras, home appliances — or even the odd space probe.

Artificial intelligence can do amazing things, but it’s still rare because the math takes enormous computing power and loads of electricity. This means driverless cars must be something akin to data centers on wheels, with dozens of processors that can get hot enough to boil water. Edge computing promises to make AI work inside the thousands of smaller gadgets and machines in people’s homes and offices.

“The hurdles to putting AI in actual products are really high,” said LeapMind’s founder, Soichi Matsuda, 36. “There are all kinds of severe limitations: price, power-consumption, dealing with exhaust heat.”

“Edge AI is becoming more and more important, especially in areas where latency, power consumption, connectivity and security matter,” said Anthony Lin, senior managing director at LeapMind investor Intel Capital.

In order to understand what makes edge computing so difficult, it helps to recall your high school algebra. Each variable in a typical AI algorithm is built out of a 32-digit string of ones and zeros that allows for 4.3 billion possible combinations.

The trick in edge computing is shaving down the numbers so they can be processed by smaller chips, but without losing too much precision. It’s a challenge because for every digit that’s lopped off, there’s an exponential loss in expressiveness.

This is why even the smallest achievements in edge computing are treated as major victories. In March, for example, when Google announced it finally managed to get a speech-recognition function to run offline on its smartphones, at least one Google engineer called the effort “heroic.” For most users the difference is probably unnoticeable, but making it work without being connected to the internet required chopping the program’s variables down from 32 to 8 digits, or bits.

LeapMind is working at a level that’s orders of magnitude smaller, just 1 or 2 bits, according to Matsuda. It’s the computer science equivalent of boiling the English language down to just four words and somehow still being able to convey a lot of meaning.

“When we started working on this in 2015, we knew that someone like Google would eventually do 8 bits,” Matsuda said. “So we had to aim higher.”

The techniques developed by LeapMind are sufficient for many, but not all tasks. You couldn’t run a driverless car with them, for example. But they’d be useful for driver-assist functions or other less-exacting work.

Which brings us back to the space agency’s photography problem.

As it stands, JAXA’s probes can’t devote scarce computing power to getting visually-pleasing photos, no matter how valuable they are for PR purposes, because it would come at the expense of doing actual science. The photos that the public sees now have been taken in the process of doing other work, not specifically for their beauty.

That’s why JAXA researcher Takayuki Ishida decided to try using LeapMind’s tools to build a smart camera. He started by taking 10,000 photos of planet and probe models, shot from different angles and with different juxtapositions, and ranking them in terms of aesthetic appeal.

JAXA declined to comment, but Ishida described his experiments in a paper he presented at a February conference held by LeapMind.

If the system works, it would be a small step forward for space exploration and perhaps a big leap for everyday devices closer to home. — Bloomberg

PEXELS

Jamie Oliver’s Gatwick Airport restaurants saved, protecting 250 jobs

LONDON — The Gatwick Airport branches of British celebrity chef Jamie Oliver’s restaurant chain were saved on Friday by food outlet operator SSP in a deal that retains all 250 jobs at the last remaining UK trading sites of Oliver’s well-known brand.

Last month, the rest of his restaurant chain in Britain folded, leaving around 1,000 people without jobs as branches ceased trading immediately.

Jamie Oliver’s Diner, Jamie’s Italian, and Jamie’s Coffee Lounge at Gatwick, south of London, were transferred to SSP Group, an operator of food outlets in travel locations that already runs Jamie Oliver units abroad, which were not involved in the administration process. — Reuters

PAL named most improved airline; AirAsia gets award as best low-cost carrier

PHILIPPINE Airlines (PAL) on Tuesday received the award for “world’s most improved airline” during the 2019 World Airline Awards, boosting the flag carrier’s efforts to secure a five-star rating by next year.

In a statement, PAL said the award was conferred by global air transport rating organization Skytrax, noting the airline had “achieved the biggest leap in product and service quality among a survey of over 350 leading airlines worldwide.”

PAL improved to 30th spot in Skytrax’s list of top airlines, up 19 spots from 49th place in 2018.

“PAL is also ranked high in other important categories: Top 10 World’s Best Business Class Comfort Amenities; Top 10 Best Airline Staff in Asia; Top 11 World’s Best Cabin Crew; Top 11 World’s Best Airport Services; Top 11 World’s Best Premium Economy Class; and Top 14 World’s Best Economy Class,” the flag carrier said.

PAL was also re-certified by Skytrax as a four-star Global Airline, based on quality audits conducted in December 2018 and January 2019. It was the first Philippine carrier to nab a four-star rating from Skytrax last year.

BEST LOW-COST AIRLINE
Meanwhile, AirAsia nabbed the “world’s best low-cost airline award” for the 11th consecutive year at the World Airline Awards 2019. It was also named Asia’s Best Low-Cost Airline, and received the World’s Best Low-Cost Airline Premium Cabin award for its premium flatbed offered on widebody long-haul AirAsia X aircraft.

“It’s an honor to be recognised by Skytrax for the 11th consecutive year for our commitment to providing affordable travel and guest-obsessed service. The fact that these awards are based on direct feedback is gratifying and wonderful recognition for the Allstars who put so much effort and commitment into service excellence for our guests,” AirAsia Group Berhad Executive Chairman Datuk Kamarudin Meranun was quoted as saying in a statement.

AirAsia Group operates a network of more than 140 destinations from 25 hubs in 22 markets, including the Philippines.

The World Airline Awards, also known as the “Oscars” of the aviation industry, was held at the sidelines of the Paris Air Show. Winners are picked through a survey of 21.65 million customers of 100 nationalities who reviewed more than 300 airlines from September 2018 to May 2019.

Long-time cult video game The Legend of Mir facing down copycats in China

IN THE LEGEND of Mir, warriors and sorcerers battle creatures from an ancient universe. Now, WeMade Co.’s long-time video game hit is at the center of a string of legal battles that could serve as a rallying cry for foreign companies harboring grievances against Chinese rivals.

Over the last three years, the South Korean studio’s chief executive officer, Henry Chang, has filed about 65 lawsuits in China, Singapore and South Korea against Chinese gaming studios, attempting to block what he alleges are unlicensed versions of his two-decade-old title.

That makes the 44-year-old one of the few foreign executives audacious enough to challenge a batch of Chinese firms in the world’s largest video game market.

He’s already racked up a few victories: In December, a Beijing court ordered Guangzhou-based 37 Interactive Entertainment Technology Co. to stop selling a game allegedly based on Mir. In May, a Singapore-based arbitration court required a unit of China’s Kingnet Network Co. to pay WeMade 468 million yuan ($68 million) in royalties.

Chang’s crusade provides a window into new challenges facing a $38 billion video game industry dominated by local behemoths Tencent Holdings Ltd. and NetEase Inc. Chinese courts are taking a tougher stance on copyright laws. And while multinationals have long avoided filing suits against rivals in China, Chang feels it’s now worth the effort partly because US President Donald Trump’s trade war has raised awareness about intellectual property.

“Some people say Trump is bringing the world to its end, but I think he’s playing a positive role when it comes to China,” said Chang, a grey-haired executive who prefers jeans to suits “He’s speeding up China’s change through pressure.”

Chang could also use the money: WeMade now relies on royalties from licensed games like Mir for half its revenue.

On its WeChat account on May 10, before the arbitration court’s ruling, Kingnet said that although it was open to negotiations, the damages WeMade was seeking were too high. It urged the South Korean firm to stop “ill-intentioned” lawsuits and “unreasonable” demands. Tencent didn’t comment, while Kingnet and 37 Interactive didn’t respond to questions.

“We fully respect the intellectual property rights of others and of our own, and we are a constant advocate for the protection of copyright,” NetEase said in an emailed statement. “NetEase has always had a ‘zero tolerance’ policy toward copycatting/plagiarism.”

Even before the trade war, Chinese courts had begun enhancing protections for intellectual property, as more domestic corporations climbed the value chain and produced cutting-edge innovations. But Chang feels that’s accelerated as Trump called attention to the issue.

He hopes winning more suits will boost profitability. Still, the effects of court battles like his could be felt beyond video games.

“It would embolden more foreign companies, especially ones in the US and Japan, to go ahead with suing Chinese firms on Chinese soil,” said Wi Jong-hyun, a professor of business management at Seoul’s Chung-Ang University. “These lawsuits would add headaches for Chinese companies who would no longer enjoy the kind of protection they would in the past.”

Foreign firms are restricted from selling games without a local partner in China, which research firm Newzoo estimates is home to more than 600 million gamers. But growth slowed for the industry after Beijing froze licenses for new games for nine months last year and attempted to reduce screen time for teenagers.

Other international companies, including US-based Activision Blizzard Inc. and Seoul-based PUBG Corp., have previously sued Chinese firms for allegedly ripping off content. And the gaming industry in other parts of the world, including South Korea, has in the past been blamed for allowing other varieties of copycats.

But Byun Ung-jae, a lawyer with Seoul-based Yulchon LLC, said China’s courts have become quicker to prohibit possible knockoffs from selling.

“WeMade stands out because they’ve been brave and dogged enough to take the fight to the court for quite some time,” said Byun, who doesn’t have business ties with the company. “China’s gaming industry has also grown huge now, so the country also feels it’s time to provide protection for its own sake.”

WeMade struck gold about 20 years ago when it released Mir through Shanda Games in China, getting as many as 200 million people to sign up at one point.

But in the summer of 2015, as Chang traveled to China, he was shocked to learn that games almost identical to Mir were in service there.

Yet his company had spotted red flags years before. In 2003, WeMade sued Shanda for allegedly copying Mir in its own game without licensing. The dispute was settled several years later, after Shanda bought a majority stake in a Korean company that is a Mir co-licensor.

Shanda, which still runs the original Mir game in China and didn’t respond to a request for comment, is in a separate lawsuit with WeMade about renewing their licensing agreement.

Winning isn’t easy. In April, a Hangzhou court issued an injunction, temporarily stopping another Kingnet unit from publishing one version of a game WeMade said was based on Mir. Kingnet produced a new version, sparking another round of legal battles over what WeMade says is really the same game.

It’s easy to see why Chang likes Trump’s toughness on China, but he also worries about a trade war escalation.

“It has been positive so far, with China showing off its judicial system,” Chang said. “But if this really turns into a war, it may no longer feel like doing so.” — Bloomberg

Robinsons Bank to raise P5 billion via bonds

ROBINSONS Bank Corp. will offer the first tranche of its bonds next month. — BW FILE PHOTO

ROBINSONS BANK Corp. is set to raise up to P5 billion in two-year fixed-rate bonds in July 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 corporate bonds with an oversubscription of another P2.5 billion “by next month.”

“We have not yet firmed up the date. Tenor will be two years & no rate yet but will be based on two-year BVAL (Bloomberg Valuation Service Reference Rate) plus a spread,” Mr. Sarte said.

The fund-raising activity marks the maiden issue of the bank’s P10-billion corporate bond program, with the proceeds expected to support loan growth and improve 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 to the planned fund-raising activity with a stable outlook. 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 diversity, market and financial strength of the JG Summit Group present Robinsons Bank with numerous opportunities, with the substantial size of the Group providing a captured market for the bank’s various products and services,” PhilRatings said.

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. — Karl Angelo N. Vidal

Dining Out (06/20/19)

50% off Mondays at Marriott Café

THE 50% off on Mondays promo on the buffet at Marriott Cafe is back. The buffet offers a wide selection of international dishes all year round. The discounted price is P1,050 net for lunch from noon to 2:30 p.m., and P1,150 net for dinner from 6 to 10:30 p.m., except on public holidays.

Ting Hun at New World

CELEBRATE Ting Hun — or Chinese engagement — at the New World Manila Bay Hotel. The Ting Hun is often held to gather family and friends as couples announce their marriage. The hotel’s Chinese engagement package comes with customizable authentic Cantonese Lauriat menus specially curated by the hotel’s Chinese master chef, ceremony rites including misua, sweet soup and tea for 12 persons, a round of standard non-alcoholic beverages, a bottle of champagne for toasting, a two-piece engagement cake to symbolize family union, table centerpieces for the guest tables, and use of the sound system with microphones. Couples also get complimentary access in selected areas of the hotel for the couple’s photo shoot sessions. The package includes an overnight stay in a Premier Bay View Suite with buffet breakfast for two persons at the Market Café and access to the Residence Club. For inquiries and reservations, call 252-6888 or visit www.manilabay.newworldhotels.com.

New dishes at High Street Lounge

HIGH STREET Lounge at Shangri-La at the Fort recently launched its new menu celebrating fresh flavors fit for casual get-togethers, business meetings and leisurely lounging. The new menu highlights its all-day breakfast, starting the morning with the signature High Street Breakfast — a light and fluffy parmesan waffle with baked beans, sunny-side eggs, grilled tomato, and mushrooms, and choice savories such as High Street tapa, Smokehouse tocino, spiced truffle ham or kesong puti. Breakfast options include lighter items such as a smoothie bowl, eggs and toast, and recent fan favorite, avocado toast made with focaccia slathered with avocado and topped with poached eggs and nori crumble. It offers a range of soups and fresh salads. Comfort food is at the helm of this menu, including the Toastie Club sandwich and the Orecchiette Pasta. Also on the menu are its signature Afternoon Tea sets designed by the hotel’s Executive Pastry Chef Anthony Collar, featuring a selection of sweet and savory bites meant to share. One may choose from Eastern or Western sets, and even incorporating Filipino merienda dishes for local flair. All these and more are available at the High Street Lounge, which is open from 6 a.m. to midnight from Sunday to Thursday, and 6 a.m. to 1 a.m. on Fridays and Saturdays. For inquiries and reservations, call 820-088 or e-mail highstreetlounge@shangri-la.com.

Grab & Go at Pan Pacific Manila

HEAD TO Pan Pacific Manila’s Lobby Lounge for a variety of interesting sandwiches and salads for only P200 net per order, perfect for folks in a hurry. Topping the list are new gourmet creations such as New Orleans’ signature Muffaletta sandwich in focaccia bread (layers of chorizo, pepperoni, ham, mozzarella, cheddar, and gruyère cheese, lettuce and olive tapenade served on warm focaccia bread) and Ham and cheese croissant (sliced farmer’s ham, tomato, onion, lettuce, and gruyère cheese on a flaky croissant). Also available is the Chicken tortilla wrap (sautéed chicken strips, white onions, lettuce, tomato, and cucumber, and garlic mayo sauce wrapped in wheat tortilla) and Pulled pork ala Cubano (slow-braised pork, caramelized onions, cheddar cheese on Cuban bread). Complement the sandwich with Mango Kani Salad (sweet mangoes, crab stick, and cucumber, topped with fish roe and dried seaweed) or G&G Salad (fresh greens, mango, grapes, tomato, feta cheese, walnut, topped with grilled chicken breast drizzled in garlic-mayo dressing). There is also a choice of healthy drinks for P180 net. The Lobby Lounge, which offers an a la carte menu of international and local dishes, is open from 7 a.m. to 1 a.m. For inquiries and reservations, call 318-0788 or e-mail dining.ppmnl@panpacific.com.

Swagat gets a new home

A LANDMARK in the Legazpi Village food scene for the past decade and a half with its authentic home-style dishes, Swagat Indian Cuisine has moved to a new location. It can now be found at the ground floor of The Columns at the corner of Amorsolo St. and Arnaiz Ave., closer to San Lorenzo Village and the residential condominiums in the vicinity. With a name that literally means “welcome” in Hindi, Swagat has received the Philippine Quality Awards for Business Excellence and the Global Brands Awards. It has been also included as one of the top restaurants in Metro Manila in the annual lists of Esquire Magazine, Summit Media Publishing, and Master Card. Owner and chef Komal Khanchandani says that the new location will continue to offer authentic home cooked-style and reasonably priced specialties to its Filipino, Indian, and expat patrons. She said that with the new location comes continuing development of its menu and service. She has also positioned Swagat as a vegetarian and halal restaurant to cater to Muslim visitors and expats, as well as the growing legion of vegan diners. For details visit www.swagatinsiancuisine.net or visit its Facebook page. Customers can also order online via Food Panda, Zomato, and Lalafood.

Sunday fiesta at S Kitchen

SHERATON MANILA has expanded its buffet spread in S Kitchen into an extravagant feast called Sunday Fiesta, inspired by Filipino festivals. The buffet is available for P2,500. S Kitchen features international selections, with the Filipino station as it focal point. But on Sunday Fiesta, it is made extra special with more dishes like fresh lumpia on-the-go, lechon stuffed with paella, cebuchon, tuna panga, bagnet, pancit, spicy kaldereta and a whole lot more. Sheraton’s chefs also make their own native delicacies like biko sa latik, banana-langka turon, ube maja with cheese, and palitaw. For dessert there are cakes, pralines, pastillas, fruit tarts, and macarons with hints of local flavor. A halo-halo station has over 13 ingredients. There are international dishes, from sushi and sashimi, to steak, dimsum, and chicken curry. Unlimited drinks are included. The buffet is available from noon to 3 p.m. For reservations, call 902-1800.

How PSEi member stocks performed — June 19, 2019

Here’s a quick glance at how PSEi stocks fared on Wednesday, June 19, 2019.

 

Domestic market capitalization of select stock exchanges in Asia Pacific (May 2019)

Domestic market capitalization of select stock exchanges in Asia Pacific (May 2019)

Self-rated poverty drops to record-low 38% in March — SWS

THE Social Weather Stations (SWS) polling organization reported that 38% of Filipinos rated themselves as poor in a March survey, the lowest in the history of the survey and down from 50% in December 2018.

The SWS estimated in a report Wednesday that extrapolating from the survey sample, 9.5 million families rated themselves poor, down from the December projection of 11.6 million families.

“The new record-low Self-Rated Poverty score is a continuing recovery from the 10-point rise within the first three quarters of 2018. The proportion of Self-Rated Poor families rose from 42% in March 2018, to 48% in June 2018, and 52% in September 2018. It subsided by 2 points to 50% in December and fell to 38% in March 2019,” SWS said.

The non-commissioned survey was conducted on March 28-31, polling 1,440 adults nationwide.

SWS also reported that the Self-Rated Poverty Threshold (SRPT) or the average monthly budget needed by families in order to be considered not poor is P10,000. The Self-Rated Poverty Gap (SRGP) — the degree to which respondents fall below the threshold — averaged P5,000.

SWS also said record numbers of respondents who believed they were poor at some point have become “non-poor.” “The March 2019 survey found that of the 62% Self-Rated Non-Poor families, a record-high 15% used to be poor 1-4 years ago (‘newly non-poor’), and a record-high 20% used to be poor five or more years ago (‘usually non-poor’). The remaining 26% have never experienced poverty (‘always non-poor’).”

Some 6% of respondents rated themselves newly poor and 6% usually poor, while 26% said they have never experienced being not poor.

Self-Rated Poverty (SRP) fell across all regions. Balance Luzon fell the most, by 16 points, to 35% in March from 51% in December. This was followed by Mindanao, where SRP fell to 35% from 51%, and then the Visayas, which fell to 55% from 61%. Metro Manila saw the smallest decline to 28% from 30%.

SWS also found that Food Poverty also declined nationwide, with 27% or 6.8 million families considering themselves as “Food-Poor.”

“This is 7 points below the 34% (est. 7.9 million) in December 2018, and 2 points below the previous record-low of 29%,” SWS said.

The Self-Rated Food Poverty Gap (SRFPG) average per region — how much families lack in food budget — was P7,000 in Metro Manila, P6,000 in Balance Luzon, P5,000 in the Visayas, and P5,000 in Mindanao.

“Compared to December 2018, the latest SRFPTG figure was unchanged in all areas, except in Balance Luzon where it fell by P1,000,” SWS added.

The President’s Spokesperson Salvador S. Panelo said in a statement on Wednesday, “Poverty reduction efforts, particularly those designed for the lowest rung of society, remain on track. We aim to reduce poverty from 21.6% in 2015 to 14% in 2022, which is equivalent to lifting about 6 million Filipinos out of poverty by the end of the President’s term. And we will grind daily to reach this goal.” — Gillian M. Cortez

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