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Gov’t targets to increase microinsurance coverage

THE GOVERNMENT targets to increase the number of individuals covered by microinsurance in the country to 50 million by 2022 from the current 39.8 million, a Finance official said.

“We would like to cover at least 50 million by 2022… Actually we want to go to farmers’ insurance. I don’t know if somebody is offering, but the framework is there and the IC (Insurance Commission) has issued some rules on it,” Department of Finance (DoF) Undersecretary Gil S. Beltran told reporters on the sidelines of the celebration of the DoF’s 10th year of partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Development Cooperation) on the promotion of inclusive microinsurance on Monday.

“More communication campaigns, more outlets in the farthest corners of the country,” Mr. Beltran said when asked how they will be able to reach the target.

“Just last year, microinsurance covered 38.9 million Filipinos from 19.8 million in 2012 and less than 3 million reported for 2019. We achieved this much with the support of GIZ and other development partners. We hope to see these numbers to continue increasing over the years,” Mr. Beltran said in his speech at the event.

“Indeed, the microinsurance industry is one of the important links toward poverty alleviation. This is why the government continues to work with GIZ, the industry, and other partners in sustaining an enabling environment through which financial institutions like microinsurance companies can thrive, flourish and become catalyst for development,” Mr. Beltran added.

He noted how in the aftermath of typhoon Yolanda in 2013, those with microinsurance policies claimed an estimated P500 million almost immediately.

“Claims were made mostly from non-banking institutions like pawnshops and remittance centers — both of which cater and are most accessible to those in the lower classes,” he said.

“These claims have been vital in the rehabilitation of survivors. This shows that beyond accomplishing the goal of financial inclusion, microinsurance also took on the role of the social safety net for vulnerable segments of the population,” Mr. Beltran said.

Michael F. Rellosa, Philippine Insurance and Reinsurers Association (PIRA), said the passage of the fourth package of the Tax Reform for Acceleration and Inclusion (TRAIN) could improve microinsurance coverage in the country.

Kung mapapasa yung TRAIN 4, bababa ang taxes sa non-life insurance, makakatulong ng malaki iyon (If TRAIN 4 will be passed, taxes on non-life insurance will go down and that will be of great help),” Mr. Rellosa said.

Mr. Beltran said the DoF is hopeful that the fourth package of TRAIN, along with other tax reform bills, will hurdle the legislative within this year.

“That’s TRAIN 4 — lowering the taxes on financial assets removing the exceptions for some products. We want to have that bill and all the TRAIN bills passed this year. We want to do it this year because the best time to pass a tax law is during the first year of a new Congress… We will refile it in the next Congress if they don’t pass it during the next three weeks,” Mr. Beltran said. — R.J.N. Ignacio

Russian ballet dancers to perform Swan Lake in QC

THE Moscow Ballet’s classical choreography arm La Classique will be coming to the Philippines for a series of performances of the ballet classic Swan Lake, a timeless favorite set to the music by Russian composer Pyotr Ilyich Tchaikovsky.

The performances will be done at the New Frontier Theater at Quezon City’s Araneta Center from June 14 to 22.

Sharing the stage with the Moscow Ballet company are two Bolshoi Ballet principal dancers, Nina Kaptsova and Alexander Volchkov.

The production of Swan Lake will be accompanied by the Russian Symphony Orchestra, under the baton of conductor Yaroslav Tkalenko.

The Moscow Ballet La Classique troupe was founded in 1990 by its current director, Erik Melikov. The ballet company has had successful tours in Egypt, Morocco, France, Spain, Italy, Austria, Norway, Israel, Thailand, Taiwan, China, Japan, Australia, and New Zealand, as well as the UK.

Tickets are available at all TicketNet (www.ticketnet.com.ph, 911-5555) and TicketWorld (www.ticketworld.com.ph, 891-9999) outlets. For sponsorship, block buyers and other inquiries, call 217-9090 or contact Ryan Calmante at 0917-882-8806.

Alsons swings to profit in Q1

ALSONS Consolidated Resources, Inc. (ACR) posted a first-quarter net income attributable to the parent firm of P6.11 million, reversing losses of P19.74 million in the same period last year despite a decline in its revenues during the period.

In a disclosure to the stock exchange, the Alcantara family’s publicly listed holding firm reported a consolidated net income of P104.36 million, up 1.2% from the P103.14 million a year ago, with its newest power plant driving the “modest increase.”

Revenues during the period slipped by 26.9% to P1.22 billion from P1.67 billion a year ago.

“The Sarangani Energy Corp. (SEC) baseload coal-fired power plant in Maasim, Sarangani Province remains to be the key driver of revenue and income for ACR. The SEC plant’s first section with a capacity of up to 105 megawatts (MW) began operating in April 2016 and currently delivers power to more than three million people in the General Santos-Sarangani area and other parts of Mindanao,” ACR said.

“The plant’s second section is currently in the commissioning stage and is targeting to start commercial operations in the second half of 2019. SEC 2 is set to contribute another 105 MW of baseload power to benefit an additional three million people in various parts of Mindanao when it begins operating later this year,” it added.

Aside from the Sarangani plant’s unit 2, ACR’s other projects in the pipeline include the P4.25-billion 14.5-MW run-of-river hydroelectric power project at the Siguil River basin in Maasim, Sarangani, and the 105-MW San Ramon Power, Inc. baseload coal-fired power plant in Zamboanga City.

The Siguil small hydropower project is ACR’s initial entry in renewable energy development. It is in the advanced stages of engineering and design. Civil works are set to begin in the second half, on track to start operations in 2021.

On Tuesday, shares in ACR rose by 1.46% to close at P1.39 each. — Victor V. Saulon

RBA looks set to cut rates in June

SYDNEY — Australia’s central bank will consider cutting interest rates next month, Governor Philip Lowe said on Tuesday as the resource-rich economy looked set to join some of its global counterparts in easing financial conditions to boost growth.

Lowe also urged the country’s newly re-elected government to do its part by slashing income taxes and boosting spending, as inflation and wages growth lagged the central bank’s expectations.

“A lower cash rate would support employment growth and bring forward the time when inflation is consistent with the target,” Governor Lowe said in a speech in Brisbane.

“Given this assessment, at our meeting in two weeks’ time, we will consider the case for lower interest rates.”

A cut would be the first in almost three years for the Reserve Bank of Australia (RBA), which last eased policy to a record low 1.50% in August 2016.

As global demand has cooled over the past year, and a protracted Sino-US trade war took a toll on businesses worldwide, central banks around the world have kept policy stimulatory. The US Federal Reserve halted its monetary tightenings in February, while countries from New Zealand to India and Malaysia have cut rates to support their economies.

“The RBA governor was upfront about the decision facing the Board in June,” ANZ economist David Plank said. “This is as clear a signal as the RBA ever delivers. We think the RBA will cut in June.”

A bevy of economists including those from Westpac and Commonwealth Bank rushed to revise their rate calls to a cut in June. Most expect that to be followed by another easing later in the year.

Financial markets are pricing in a 91% chance of an easing next month, from about 50% before Lowe’s speech, and are fully priced for another rate cut in November. A Reuters poll on Tuesday showed 24 of 28 economists surveyed see an RBA rate cut next month. As many as 20 see a second move in August.

The RBA’s dovish tilt comes as growth in Australia’s $1.3 trillion economy sputters. At the same time, inflation has remained under the RBA’s 2-3% target band and the unemployment rate has now ticked up to an eight-month high of 5.2% from decade lows of 4.9% hit in February.

Signs are domestic activity likely slowed in the three-months ended March to an annual 1.7%, the weakest since the 2008 global financial crisis.

LOOSER MORTGAGE RULES, FISCAL BOOST
In a further boost to borrowers, Australia’s prudential regulator on Tuesday proposed lowering stress-test limits for mortgages.

The combination of lower interest rates and easy lending rules could help revive the country’s crumbling housing market where prices are down almost 10% from their 2017 highs.

“In effect, this means that any lowering in mortgage rates could be expected to have a greater impact on credit growth than otherwise,” Gareth Aird, senior economist at Commonwealth Bank said in a note.

In an apparent move to put some onus on the government to help revive the economy, RBA’s Lowe indicated that monetary policy was not the only game in town.

“I have been a strong advocate of increased spending on infrastructure, because it adds to demand but also makes all our lives better,” Lowe said, responding to questions following his speech.

He pointed to subdued household consumption as the biggest reason behind the broader economic downturn, suggesting tax breaks might bolster household incomes.

Taxes paid by households over the past year jumped 10%, a much faster clip than income growth of a measly 3.25%, he noted.

“Stronger growth in income will help, but the more important factor is some tax relief,” Lowe said.

Australia’s conservative government, which pulled off a shock election win over the weekend, has pledged tax relief for tens of millions of households. But Prime Minister Scott Morrison might not meet a June deadline, clouding the exact timing when households will receive the full rebate.

A delay would be unwelcome and add pressure on Morrison’s government to announce other measures to help relieve pressures on Australia’s heavily indebted households. — Reuters

A concert for the Motherland

PATRIOTIC songs of freedom, love and inspiration will make up the repertoire of Reminiscences, a special concert to commemorate the 121st anniversary of Philippine Independence. Presented by the Ephesus Teatron Group Inc., it will be held on June 11, 7 p.m., and June 12 at 3 p.m. and 7 p.m., at the Carlos P. Romulo Auditorium, RCBC Plaza, Makati City.

Songs like “Bayan Ko,” Lucio San Pedro’s “Sa Mahal Kong Bayan,” and Francisco Santiago’s “Pilipinas Kong Mahal,” among many others will be performed by TRIBU, a group made up of musical theater artists, namely Sweet Samaniego Buchanan, Margarita Roco, Steven Hotchkiss, Terence Guillermo, Red Nuestro, and Onyl Torres, with pianist Kim Dominik Sarmiento.

The first half of the concert features songs describing the country, a medley of folk songs, and songs from Luzon, Visayas, and Mindanao.

The second half will focus on patriotic and revolutionary songs, some of which Filipinos seldom hear. These rare songs include “Alerta, Katipunan!” which was one of the songs of the revolution. It was the march used by the KKK. The piece was originally a Spanish march, and then was adopted by the Katipunan. “Canto de Maria Clara” is from one of the chapters of Jose Rizal’s novel, Noli Me Tangere. It is a poem that depicts his feelings for his motherland and his premonition of coming doom. “Pag-ibig sa Tinubuan Lupa,” a poem written by Andres Bonifacio, is an exhortation to the Filipino people to join the crusade for Philippine independence. The songs were arranged by Pipo Cifra and Sweet Buchanan.

Tickets are available at TicketWorld (www.ticketworld.com.ph, 891-9999).

Megaworld launches 2nd tower in Pampanga township

MEGAWORLD Corp. continues to expand its 35.6-hectare township in San Fernando, Pampanga with the launch of a new residential project expected to generate P850 million in sales.

The property firm of tycoon Andrew L. Tan said in a statement Tuesday that it will be launching Bryant Parklane in Capital Town Pampanga. The 16-storey tower will offer a total of 463 units with studio layouts sized up to 28.5 square meters (sq.m.) and one-bedroom units up to 41 sq.m.

The project will feature a bi-level lobby with functional shared spaces and a receiving area. It will also house an indoor bike rack, a daycare center, a turf lounge, a pingpong café, and a library.

Other amenities will be located on the building’s third level, including adult and kiddie pools, a function hall, indoor and outdoor fitness centers, covered outdoor lounge, outdoor play area, and jogging path.

Some retail areas will also be placed at Bryant Parklane’s ground level.

“In Bryant Parklane, we want to encourage interaction among residents, and at the same time, foster a sense of community. The lobby will become a venue for residents to hang out and interact with each other at any given time of the day and night,” Megaworld Pampanga First Vice- President for Sales and Marketing Eugene Em Lozano said in a statement.

Megaworld expects to complete the building by 2024.

Bryant Parklane will be the company’s second residential tower in Capital Town, following the launch of the 12-storey Chelsea Parkplace with 193 units last year.

Prior to the introduction of residential projects, Megaworld initially launched a retail strip called Shophouse District in the township. The district offers 98 lots ranging from 276 to 680 sq.m., which are expected to be developed into retail and food outlets, pet shops, fashion boutiques, and other businesses.

Megaworld said in 2017 that it will be spending P30 billion to develop Capital Town in a span of 10 years. The township sits on the site of the former Pampanga Sugar Development Company located near the Pampanga Provincial Capitol.

The property giant’s net income attributable to the parent grew by 16% to P3.8 billion in the first quarter of 2019, driven by strong sales from its residential segment and higher rental income. Consolidated revenues also surged 15% to P14.9 billion.

Megaworld has committed to spend P65 billion in capital expenditures this year to support property development across its 23 townships. About 20% of the budget will also be used for land acquisitions and investment properties.

Shares in Megaworld rose 0.56% or three centavos to close at P5.40 apiece at the stock exchange on Tuesday. — Arra B. Francia

ING Bank sees opportunity in retail space

ING BANK N.V.-Manila sees opportunity in the domestic retail space amid its push to tap the banking needs of “digital-ready” Filipinos.

In a roundtable discussion on Tuesday, ING Bank Country Manager in the Philippines Hans B. Sicat said the current economic expansion in the country is a “great opportunity” for the global financial firm to venture into the retail space.

“I think it’s a great time for us at ING because in a time of the economy, it presents a lot of opportunity…. It’s not just the corporate market that really is the opportunity space but also the individual market,” Mr. Sicat told reporters during the launch of its savings account product held in Taguig.

He explained in a statement that the Philippines is on its way to become an upper middle income economy, with Filipinos having more disposable income.

The Finance department said the country will likely achieve “upper-middle income” status — having a per capita income of between $3,896 and $12,055 — within the year, three years ahead of the original schedule of 2022.

According to latest World Bank data, the country’s gross national income per capita was at $3,660 as of 2017.

“ING want to encourage more Filipinos to save by giving an attractive interest rate of 2.5% per annum with no minimum amount and no lock-in period,” Mr. Sicat added.

ING introduced yesterday its all-digital savings account product that allows clients to open accounts and transfer funds via their mobile phones.

It on-boards clients through scanning of a valid government ID. The mobile platform also allows the savings account to receive money through digital check scanning as well as fund transfers via PESONet and Instapay, automated clearing houses initiated by the central bank.

Mohamed Keraine, ING Philippines’ head of retail, said the bank’s digital banking platform targets Filipinos who are “digital-ready.”

Eventually, ING said it will likely offer other retail banking products such as loans and investments.

“Lending is on the roadmap for sure in a bit…,” Mr. Keraine said. “How soon do we see ourselves offering lending? We’re working really hard on it. I think by the beginning of next year, we will have something in the market for sure.”

Late last month, Malaysian financial giant CIMB Bank launched its banking operations in the country as an all-digital and mobile-first retail bank.

ING Bank offers retail and wholesale banking services in over 40 countries. It has been operating in the Philippines as a wholesale lender since 1990.

ING Bank-Manila was the 30th biggest commercial bank in the country in asset terms at P24.15 billion as of end-2018. — Karl Angelo N. Vidal

Candle power

By Menchu Aquino Sarmiento

Book Review
To Be in History: Dark Days of
Authoritarianism

Editor, Melba Padilla Magay
Publisher, Langham Global Library,
Cumbria, UK 2019

ITS unabashedly spiritual underpinnings distinguish this latest addition to the growing library of writing on Marcos’ Martial Law. The witnessing by various actors who traversed this howling wilderness in our recent history is anchored in their abiding Christian faith in God as the Lord of History, or, as the editor Melba Padilla Magay writes, “an immanent grace that is present wherever there is a struggle against forces that demean and deform human life.”

The British edition has sold out here. A lower-priced local version by the Institute for Studies in Asian Church and Culture is forthcoming. This will allow the ideas expressed therein to reverberate beyond the echo chamber populated by like-minded souls, and “enhance trust and unity through interactive dialogues” with grassroots groups.

During the book’s launch, Ateneo de Manila University history professor Jayeel Cornelio remarked that we have always been haunted by “the ghost of nostalgia for the glorious ruins of (Marcos) Martial Law.” Over the last three decades, its sinister specter has become corporeal, made flesh, revivified, even resurrected and reincarnated anew with the ascendance of the third generation of Marcos political scions. A 2005 Pulse Asia Survey found that only 36% of Filipinos viewed EDSA I or People Power positively — significantly fewer than the 41% in the SWS survey of Ateneo students who thought Ferdinand Marcos had been “true to the duties of a patriotic president.” That same survey showed 30% agreed Marcos was the “defender of the poor and oppressed.”

Mr. Cornelio observed: “Today, popular rhetoric prevails that the country needs someone who can restore order. This in effect resurrects the adage of the past — discipline is necessary for our society to progress… Human rights activists have been recast as enemies of the state. Critics in the media are either biased or bought, or both. To question the administration has become an unpatriotic act. The deaths we see around us are dismissed as collateral damage. The morality of Philippine politics is now black and white, or yellow or otherwise.”

Mary Racelis of the Institute for Philippine Studies is painfully perplexed: “How is it possible that this is happening again? We fought so hard against tyranny, each in our own way. Yet here we are again — thrust into a violent and vindictive scenario…”

The “God gene,” which supposedly accounts for human spirituality, is predominant in the Filipino make-up, from our grand religious processions (the Back Nazarene, the Virgin of Peñafrancia) and the de riguer inclusion of a religious invocation in all official events. In the essay “The Awakening of Miss Goody Two Shoes,” colegiala Elizabeth Lolarga lead a double life as a lifestyle section writer, while serving pro bono as an erstwhile editor for Leftist publications. Even while underground, she attended mass whenever she could. The EDSA I People Power Revolution did not effect true, meaningful and lasting social and political change. The historian Fe B. Mangahas observed, to the Left “it was more of a convulsion which restored our age-old liberal democracy back into the hands of the elite and its imperialist ally.” But it remains the only such mass event where prayerful nuns and the image of the Blessed Virgin were key players.

The spouses Mario and Alma Miclat spent the Marcos Martial Law years in the People’s Republic of China (PROC), with a few other Communist Party of the Philippines members, Joma Sison’s three young children and their yaya (nanny). The Miclats worked at Radio Peking’s Filipino section. Ms. Miclat recalled how “The failed missions to smuggle arms to the comrades at home and the increasing reports of arrests of high-ranking communist cadres and NPA operatives, coupled with ennui and homesickness, brought dissatisfaction and conflicts in the group.”

At the PROC state farm where Mr. Miclat contracted TB while undergoing “reform through labor,” Ms. Miclat noted that “the political feuds, endless debates, wrangling, even personal quarrels leading to fisticuffs, were just a microcosm of what was happening in the Party in our own country.” Today, Mr. Miclat declares: “From what I have seen in China and other communist countries… I no longer believe that class struggle is the only way for a people to live. In the complicated world we are in, who are the exploiters and who are the exploited, the oppressors and the oppressed?”

In the book, the journalist Rolando Villacorta shares his eye-witness account from inside Camp Crame and at the street level with the faith communities, particularly the Diliman Bible Church and KONFES (Konsiensya ng Febrero 7, to protest the dirty Snap Elections). He noted that Juna Ponce Enrile’s force of just 300 reformist troops was the same number with which the Biblical Gideon vanquished a hundred thousand Midianites. Mr. Enrile’s faith didn’t match up. Crossing EDSA to join Fidel Ramos, he made sure his own men surrounded him because “with a crowd like that, somebody could stick a knife in your belly or back, and that’s it.”

In “Uncle Sam Behind the Scenes,” Willie B. Villarama hints at covert machinations in motion even before the climactic events of February 1986: “The EDSA I ‘miracle’ was made not altogether in heaven, but also somewhere on earth.” Some of the computer programmers who had walked out of the Commission on Election’s electronic counting at Philippine International Convention Center were supposedly relatives of RAM (Reform the Armed Forces Movement) coup plotters. Mr. Villarama was then Labor Minister Blas F. Ople’s assistant minister. Mr. Marcos had earlier called out Mr. Ople for publicly stating that his government was in an “interregnum,” a euphemism for shaky. Nonetheless, Mr. Marcos refused Mr. Ople’s resignation and still sent him to the US as his emissary in the tumultuous aftermath of the Snap Elections. However, the Philippine government documents proving Mr. Marcos still enjoyed mass support, which Mr. Ople had brought from Manila for his meeting with US State Department officials, inexplicably disappeared.

Ambassador Alexander Melchor, who was supposed to accompany Mr. Ople to the State Department, was also a no-show for Mr. Ople’s State Department meeting. Then Navy Attache Fernandez “Jun” Tucay had picked him up from the airport earlier. He recalled how Mr. Melchor told him then “about the grave situation in the country, and had urged (him) to switch sides. That Ponce Enrile jumped out from the Marcos bandwagon because of his displeasure that he did not get the blessings of Marcos to become the country’s prime minister instead of Cesar Virata. On Ramos’s case, Melchor expressed the former’s disgruntlement on why General Fabian Ver continued to hold on to his position as chief of staff-AFP, despite the fact that “orders had been signed and published designating (Ramos) as chief of staff vice Gen. Fabian C. Ver.”

The book’s contributors hope these stories and lessons from a time of terror and anguish, will be as candles in the growing darkness, for Generations X, Y, Z, and i. Karl Marx said that “History repeats itself, first as tragedy, then as farce.” May these so-called Millennials not tread along either path, but mindfully analyze their present situation, not merely in academic or intellectual terms, but as being integral to the broader, holistic domains of spirituality and belief in a transcendent God. Martin Luther King reminds us that “the arc of the moral universe is long, but it bends toward justice.” Meanwhile, as the late poet Maningning Miclat, who was born in the spring before the imposition of Marcos Martial Law, wrote: “Fragments of memories tiptoe into the vignettes of here and now. For all that was heard, for all that has been, we become the keepers of our voice.”

For details on the release of the local edition of To Be In History, call the Institute for Studies in Asian Church and Culture, 470-1044 or 0925-710-1950.

How PSEi member stocks performed — May 21, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, May 21, 2019.

 

Alternative investments in emerging economies

There’s a continued increase in alternative investment asset classes throughout the ASEAN nations – a breakaway from traditional established financial assets. This was made clear by the rise of micro investments in cryptocurrency. Whilst interest in cryptocurrency continues to dwindle, it still highlights that there is a huge demand for alternative investment options with low capital entry barriers in the region.

“When compared to developed economies, emerging economies often have a large accessibility barrier to regulated and structured investment products for low to medium income earners,” said Mathew Tate, managing partner of Charterprime, an Australian multi-asset brokerage firm.

(Mathew Tate, Managing Partner, Charterprime)

Accessibility to international markets are often limited by a higher capital entry barrier, where alternative investment options like foreign exchange or micro investing products can open accessibility for people. These often come with a higher risk reward scenario which becomes more relevant in emerging economies with larger wealth gaps.

“Foreign exchange is a good example of alternative investments gaining popularity in ASEAN countries. It often has a low capital entry barrier while knowledge and services in the industry are abundant. The industry has a wide variety of educational resources readily available – from private training schools to free online education – almost anyone can invest the time in learning the fundamentals of foreign exchange trading,” said Mr. Tate.

The education, the ability to ‘paper trade’ for practice, and the low capital entry to access exposure to international markets makes foreign exchange trading a great alternative investment for developing nations, he added.

(Managing Partners of Charterprime Mathew Tate and Simon Stephen)

The growth in popularity of foreign exchange in ASEAN regions is bringing interest from governments to regulate the products and services in the industry. The right balance can be achieved with industry and regulatory consultation – the Philippines’ Securities and Exchange Commission (SEC) can look to developed foreign exchange trading regulations by seeking guidance from both established foreign brokerage firms and foreign regulators that have existing frameworks in place.

Mr. Tate believes the foreign exchange educational community in the Philippines has done a great job at educating new traders on the importance of regulation and key points when selecting a broker. Should the Philippines’ SEC choose to implement regulation, they will be presented with a huge opportunity to increase revenues from a new financial sector, servicing both domestic and international clients. At the same time, the government will be able to fulfill the essential role of offering extra protection to their citizens looking to participate in foreign exchange.

Meanwhile, Mr. Tate suggests for everyone to analyze the following four key elements when deciding on a broker to trade with:

  1. Regulatory status: Does the firm have the appropriate license from a reputable regulator to conduct foreign exchange brokerage services?
  2. Safety of funds: Does the broker segregate client margin funds from the firm’s operational account?
  3. Support: Does the broker provide 24-hour client support?
  4. Trading and execution: Does the broker provide a fair market price and perform trading execution well?

“Finding a good balance of consumer protection and flexibility is always a challenge regulators face. They want to promote growth and market integrity whilst ensuring the end user has adequate levels of protection. As it stands in the Philippines, many consumers have been duped by unregulated brokerage services – many scammers have attempted to take advantage of the unregulated state of foreign exchange in the Philippines and the people who don’t have an understanding or education in foreign exchange or alternative investments – and this is what we, as fellow traders, strive to change,” said Mr. Tate.

(During the Airbus A320 customized livery launch with Airasia)

About Charterprime

Charterprime is an award-winning multi-asset derivatives brokerage offering trading platforms to both institutional and retail investors. Built from a pool of professionals with real industry experience, our team comprises of a multitude of industry experts from all over the globe with a diverse range of specialties; and together our global team collaborates in tight synchronicity to make Charterprime a world-leading broker. For more information, visit www.charterprime.com.

Charterprime Seminar in Philippines

Charterprime will be participating in Philippines Traders Fair 2019 on May 25 2019, with an exclusive seminar for traders to gain latest market insights and trading techniques with esteemed experts and like-minded traders. Find out more at here.

Which countries are most at risk from humanitarian crises and disasters?

Which countries are most at risk from humanitarian crises and disasters?

FDA says vinegar using synthetic acetic acid liable for ‘mislabeling’

THE Food and Drug Administration (FDA) will revoke the registration of vinegar makers found to have used synthetic acetic acid for “misdeclaration,” amid reports that some brands synthesized their ingredients rather than use natural materials like sugarcane.

In a statement Tuesday, FDA Officer in Charge Director Ronaldo Enrique M. Domingo said that even if the synthetic acetic acid is safe for human consumption, the issue facing these manufacturers is false claims made with regard to the base ingredient.

Chemically, vinegar is typically composed of at least 4% acetic acid.

“Synthetic acetic acid may not be harmful per se, but products using such chemicals shall have their registration with the FDA revoked for misdeclaration,” he said.

Earlier this month, the Department of Science and Technology’s Philippine Nuclear Research Institute (DoST-PNRI) reported most vinegar products in the market are “fake” because they are made from synthetic acetic acid.

Using of isotope-based analytical techniques, the DoST found eight out of 10 of the 360 samples tested by the DoST-PNRI where found to have used synthetic forms of the chemical. They did not release the names of these brands.

Vinegar made from synthetic acetic acid did not go through the natural process of fermentation. Having synthetic matter in vinegar speeds up the process of its fermentation and is technically considered adulterated for food safety purposes.

FDA standards require vinegar to be a natural product undergoing natural fermentation.

Mr. Domingo said that the FDA is teaming up with the DoST-PNRI “for the submission of the results of the analysis, while continuously subjecting vinegar products for testing.”

Department of Agriculture (DA) Secretary Emmanuel F. Piñol said he is directing the Bureau of Agriculture and Fisheries Standards (BAFS)to create standards for vinegar. The proposed standard will also require vinegar sold on the market to be naturally fermented.

“Any other product which offers the ‘sour’ taste but is not a product of a natural fermentation process should be properly labeled as such — synthetic acetic acid or a “sour non-biogenic” condiment. Thus, it is my position as Secretary of Agriculture that sour condiments made out of synthetic or non-biogenic acetic acid should not be labeled as “vinegar” or “suka,” he said in a social media post Tuesday.

The DA had an inter-agency meeting with the FDA, DoST-PNRI, and the Department of Trade and Industry (DTI) to discuss the issue. The meeting led to the review of the Department of Health’s Administrative Order (AO) No. 123 issued in 1970, which regulates vinegar quality. — Gillian M. Cortez