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BSP further relaxes forex rules

BSP
THE BANGKO Sentral ng Pilipinas (BSP) said on Friday that banks will no longer need to secure its approval to convert foreign currency loans to peso, and for the transfer of such loans from foreign currency books to regular accounts.
In a press release, Deputy Governor Diwa C. Guinigundo said that “rules governing the: conversion of foreign currency loans granted by banks to peso loans; and transfer of such loans, as well as Real and Other Properties Acquired from banks’ foreign currency deposit unit books to the Regular Banking Unit books, have been liberalized.”
“… [T]hese transactions no longer require prior BSP approval under certain conditions which seek to ensure that banks fully understand the nature and extent of the risks involved and that they have put in place appropriate business policies and risk management systems to manage these transactions.”
The press statement said the move was “in line with the BSP’s thrust to further liberalize FX rules while maintaining a safe and sound financial system, a stable FX market, and an appropriate monetary policy.”
The BSP has been easing restrictions on foreign exchange transactions to enhance ease of doing business and encourage the public to transact with banks rather than the informal market. — EJCT

Balance of payments swings to deficit

port customs
‘The higher cumulative BoP deficit for the first four months of the year may be attributed partly to the widening merchandise trade deficit (based on Philippine Statistics Authority data) for the first quarter of the year that was brought about by the sustained rise in imports to support domestic economic expansion,’ the central bank said.

By Elijah Joseph C. Tubayan, Reporter
THE PHILIPPINES’ external payments position swung to a deficit in April from the year-ago surplus, the central bank reported on Friday, saying “outflows… stemmed mainly from payments made by the national government for maturing foreign exchange obligations and foreign exchange operations of the Bangko Sentral ng Pilipinas (BSP)”.
The BSP said in a statement that the country’s balance of payments (BoP) swung to a $270-million deficit in April from the $917-million surplus logged a year ago, and was bigger than March’s $266-million shortfall.
This was the fourth straight month of BoP deficit since December 2017’s $917-million surfeit.
Outflows “were partially offset… by income from the BSP’s investments abroad and net foreign currency deposits of the NG (national government) during the month”, the central bank said.
The balance of payments position for the four-month period stood at a $1.497-billion deficit, nearly double the $78 million recorded in the same months last year.
“The higher cumulative BoP deficit for the first four months of the year may be attributed partly to the widening merchandise trade deficit (based on Philippine Statistics Authority data) for the first quarter of the year that was brought about by the sustained rise in imports to support domestic economic expansion,” the BSP said.
The country’s balance of trade in goods in the first three months of the year saw a $2.61-billion deficit, about a quarter bigger than the $2.10 billion shortfall in last year’s comparable period, as exports growth declined 8.2% while imports inched up 0.1%.
The BSP expects a $1-billion BoP deficit this year, bigger than 2017’s actual $863-million gap.
Sought for comment, economists said that since the wider deficit was driven by the importation of capital goods, it would translate to economic expansion especially as they would be used to build infrastructure.
“This higher BoP deficit is directly related to the widening merchandise trade deficit due to increasing imports that supports economic expansion. The deficit was expected and may continue to widen as the economy churns to a higher growth trajectory as the government embarks on retooling the country’s infrastructure,” Union Bank of the Philippines chief economist Ruben Carlo O. Asuncion said in an e-mail.
“I think that this is not something to be worried about as long as the economy continues to expand and respond to the government’s expansionary spending policy.”
Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said the BoP gap can be expected to persist due to weak exports, leading to further depreciation to the peso.
“For the rest of the year, I believe we would continue to see BoP deficits due to the strong demand for imports and softening exports,” Mr. Dumalagan said in a separate e-mail.
“Higher deficit and expectations of more deficits in the future means that the peso will remain relatively weak, despite the rate hike of the BSP. A widening deficit could also reduce the country’s resilience against external headwinds,” he explained.
“However, I believe that there is a positive side to this, given that higher importation of capital goods could set the stage for stronger economic growth in the future.”
The BSP said that the latest BoP data are “consistent” with the gross international reserves (GIR) of $79.609 trillion as of end-April 2018.
“At this level, the GIR represents more than ample liquidity buffer and is equivalent to 7.8 months’ worth of imports of goods and payments of services and primary income,” the central bank said.
“It is also equivalent to 5.4 times the country’s short-term external debt based on original maturity and 4.0 times based on residual maturity.”
International reserves are composed of gold, the BSP’s assets expressed in foreign currencies, country quotas with the International Monetary Fund, and foreign currency deposits held by government and state-run firms. These stand as buffers against external financial shocks and are considered by credit raters as a source of strength for the local economy.

April sees ‘hot money’ flowing in anew

About 82.2% of April investments went to Philippine Stock Exchange-listed securities — mainly banks, holding firms, property companies, food, beverage and tobacco firms, and retail companies, the central bank said.

NET inflows of foreign portfolio investments — also known as “hot money” for the ease by which they enter and leave the economy on any development that changes investor appetite — grew more than fivefold in April from a year ago as inflows edged up and outflows fell by more than a 10th in those comparative periods, according to data Bangko Sentral ng Pilipinas (BSP) released on Friday.
Such funds recorded a $279.28-million net inflow in April, over five times more than the $51.49 million recorded a year ago, but were just a fourth of March’s $1.132-billion net inflow.
About 82.2% of April investments went to Philippine Stock Exchange-listed securities — mainly banks, holding firms, property companies, food, beverage and tobacco firms, and retail companies — while the balance went to peso-denominated government securities, the BSP said in a statement.
In a telephone interview, Security Bank Corp. economist Angelo B. Taningco attributed the 75% month-on-month drop in net inflows in April “to a high base since March recorded huge inflows of $1.25 billion in ‘other peso-denominated debt instruments’.”
BSP data showed that foreigners brought in a total of $1.376 billion, 4.23% more than the year-ago $1.32 billion a year ago, but 44% less than March’s $2.469 billion; and took out $1.097 billion, lower by 13.6% from April 2017’s $1.269 billion 18% from March’s $1.337 billion.
The United Kingdom, United States, Hong Kong, Singapore and Luxembourg were the top fund sources last month with a combined share of 76.6%, while 74.5% of April’s outflows went back to the US.
The BSP expects $900 million in net hot money outflows this year, more than four times the $205.03 million that actually left the Philippines in 2017. — Elijah Joseph C. Tubayan

Phoenix’s Uy confirms talks with CNOOC to enter LNG business

By Victor V. Saulon, Sub-Editor
PHOENIX Petroleum Philippines, Inc. is in preliminary discussions with a Chinese oil major to enter the liquefied natural gas (LNG) business, its owner said.
Phoenix President and Chief Executive Officer Dennis A. Uy said he has held “early talks” with China National Offshore Oil Corp. (CNOOC) to study the LNG segment of the fuel business.
“We’re also looking at that (LNG),” Mr. Uy told reporters.
He declined to disclose details of the talks except that Phoenix has been conducting a study of the LNG business.
Mr. Uy has a record of moving fast on opportunities that would create synergies with his existing businesses, which started with Phoenix as a small Davao City-based oil company that has grown to become the biggest independent player in fuels.
“As an entrepreneur, it is second nature for me to jump at opportunities, to find a need and serve it,” he told participants of the BusinessWorld Economic Forum 2018 at the Grand Hyatt Hotel at the Bonifacio Global City on Friday.
Mr. Uy also said the capacity of his asphalt business is 12 million liters.
Earlier this month, Phoenix broke ground on the asphalt facility it will build with local and foreign partners in Calaca, Batangas.
Raymond T. Zorrilla, Phoenix’s vice-president for external affairs, confirmed the target capacity and said that it would add to the company’s existing fuel sales. He said the company sold 1.2 billion liters of fuel last year. He could not immediately give an estimate for the asphalt’s business’ share of Phoenix’s expected sales.
Asked about the expected commercial operation of the asphalt facility, he said: “If you want to be realistic about it, probably next year.”
Phoenix Asphalt Philippines, Inc., is the joint venture of Phoenix Petroleum with Thailand’s Tipco Asphalt Public Co. Ltd, and PhilAsphalt Development Corp.
In his speech delivered during the forum yesterday, Mr. Uy re-traced the start of Phoenix that gave rise to the creation of the parent holding firm Udenna Corp.
“Nobody cared about Phoenix when we were starting, certainly not the giants. Phoenix owned just a handful of gas stations and it was in Davao, too far afield to even be on their radar,” he said.
“Phoenix’s perceived weaknesses we used to our advantage. We grew our market in Mindanao and then decided to go national, moving quickly before anybody could notice and put up roadblocks to hinder our progress,” he said. “What we lacked in size, we made up for in speed and service. What we lacked in capital, our bankers and investors helped fill.”
The petroleum business allowed him to notice early on that chartering oil tankers is both costly and created uncertainty for Phoenix’s inventory.
“So we found a tanker and bought it, and that gave birth to Chelsea Shipping. Chelsea bought more tankers and in due course acquired other shipping and logistics companies, including the largest, 2Go, bought in partnership with SM. This paved the way for the listing of Chelsea Logistics Holdings Corp. last August,” Mr. Uy said.
The acquisition of 2GO Group, Inc. introduced Mr. Yu to stakeholders who also owned a 177-hectare property in Clark, Pampanga.
“Today, we are developing it as Clark Global City — a central business district similar to Bonifacio Global City,” he said.
“Our diversification is a strategic move, anticipating disruption and economic developments that could either help us or hurt us,” he said.
Mr. Uy has since bought hospitality school Enderun Colleges. He also has the Emerald City project in Cebu, with the purchases “dovetailing with our bullish outlook for the Philippine tourism industry.”
“The logistics network of Chelsea in due course could give rise to a new business that may become larger than some of the companies we have now,” he said.
He said Udenna, a play on his name, is now a group of 70 companies in six different industries, “and still growing.”
Under Phoenix, Mr. Uy bought last year Petronas Energy Philippines, Inc., immediately giving the company a share in the liquefied petroleum gas (LPG) business, and Philippine FamilyMart CVS, Inc., which holds the exclusive franchise to the Japanese convenience store brand. He also set up PNX Petroleum Singapore Pte Ltd.

DICT sees up to P30 billion for national broadband program

BW FILE PHOTO

By Victor V. Saulon, Sub-Editor
THE Department of Information and Communications Technology (DICT) is looking at a budget of up to P30 billion for the government’s national broadband program, which is targeted for completion within the term of the current administration.
“We are estimating about P20 billion to P30 billion, and that one will start by phase,” Acting DICT Secretary Eliseo M. Rio, Jr. told reporters on Friday on the sidelines of the BusinessWorld Economic Forum 2018 at the Grand Hyatt Hotel at Bonifacio Global City.
Mr. Rio said stakeholders in the program — DICT, state-led National Transmission Corp. (TransCo) and privately owned National Grid Corporation of the Philippines (NGCP) — are to sign an agreement next month to start the project.
“We’re going to sign a tripartite agreement maybe early June this year because the two — NGCP and TransCo — will bring the MoA (memorandum of agreement) to their board for their approval,” he said.
Mr. Rio said the budget for the project would be presented to Congress for approval as part of the government’s budget appropriation for 2019.
The signing of the agreement is the latest development of the national broadband program that has been stalled last year because of the disagreement between NGCP and TransCo.
Sy-led NGCP had said its fiber optic cables, which cover 6,154 kilometers or 160,779 fiber kilometers, would be the primary network of the program that aims to bring wi-fi connection all over the country.
Earlier this year, TransCo had expressed fears that NGCP could “dangerously exert its economic and political dominance in the country” if allowed to enter into a bilateral agreement to implement the country’s broadband plan.
But in April, TransCo said NGCP had agreed to include the state owner of the country’s power transmission network in the plan.
Mr. Rio said the investment of the government would be spent on putting up the equipment to connect the power transmission backbone to the “middle-mile” providers.
He said these are mostly Internet service providers in the provinces with existing customers not served by the two biggest telecommunications companies — Smart Communications, Inc. and Globe Telecom, Inc.
He said the Japan International Cooperation Agency (JICA) is to come up with a feasibility study that would set the development phases of the broadband plan. But he said his office expects a budget of at least P20 billion or as high as P30 billion.
The national broadband program aims to offer free and fast Internet service to rural areas, which remain unserved by private companies, Mr. Rio said.

Holcim hoping to ride construction boom, control costs

HOLCIM Philippines, Inc. has outlined its priorities this year, including plans to seize opportunities brought about by an ongoing construction boom, its new head said.
John Stull, Holcim’s president and chief executive officer, said the cement manufacturer and distributor will focus on operational improvements, tighter cost management and new building solutions.
He said the moves position the company to better benefit from and support strengthening construction activity in the country.
Mr. Stull announced the company’s plans during the shareholder meeting on Friday in which he said Holcim aims to improve its ability to supply the market more efficiently and provide value-adding offerings to its building industry partners.
“Last year, we started projects to raise cement production capacity nationwide to 12 million metric tons by 2019. While these projects have just started, we are already considering more investments to raise clinker capacity given the positive projections for the construction industry,” he said.
Mr. Stull told Holcim shareholders that the company is bolstering its equipment maintenance programs while continuing to streamline logistics systems and processes for more reliable customer service.
This year, the company has allotted P2.4 billion for capital expenditures in line with plans to raise production capacity.
“Before further raising production capacity, we have to make sure we are getting as much as we can from our plants. For this, we worked with the LafargeHolcim Group to strengthen the culture of excellence in our facilities. We also implemented logistics excellence initiatives so our business partners and customers receive products when and where they need it,” Mr. Stull said.
Holcim earlier reported a first quarter net profit of P700 million, down from P940 million in the same period last year.
“The decline was due to lower cement prices from increased competition and higher production expenses,” the company said.
On Friday, Holcim Philippines shares rose 1.03% to P8.85. — Victor V. Saulon

Promoting PHL a ‘tough sell’ after Boracay shutdown

By Janina C. Lim, Reporter
EUROPEANS are thinking twice over including the Philippines as part of their travel destination list — this, after the closure of Boracay and the looming shutdown of other islands as the government intensifies its clean-up efforts in other tourist spots.
Coming off from a trip to Europe a few weeks ago, European Chamber of Commerce of the Philippines President Guenter Taus said promoting the country as a tourist spot is a “very tough sell,” citing the “untimely” closure of Boracay.
“I don’t know was it our visit or was it the closing of Boracay. But It was hard to sell the Philippines as a tourism destination” Mr. Taus told reporters Thursday night, adding that the country’s upscale tourism lost “pretty much everything.”
Asked his estimates on the losses, Mr. Taus said it was difficult to quantify but nevertheless, estimated that every tourist that comes in for about 10 to 14 days spends about $2,000.
The official said two large operators in Europe pre-booked for about 500 tourists before Boracay’s closure, making their payments non-refundable.
“There’s a number of legal issues there as well that are of course not perceived very well,” Mr. Taus said, noting that the operators lamented that “there’s nobody [in the Philippines] who really organizes this properly in terms of tourists.”
Asked if selling the Philippines as a tourist destination will be made more difficult with government’s expressed plan to extend its clean up effort to other islands, Mr. Taus said: “Absolutely.”
“Because people get scared… You don’t want to touch the Philippines,” Mr.Taus said, recalling his dialogue with the European operators whose identities he declined to reveal.
The group has shifted its focus to other tourist destinations like Bohol, Siquijor and Cebu while doing away with “mainstream” tourism.
“I think European tourists are actually very picky on what they want to do. Mainstream tourism is all gone so let’s do something different, let’s do something that we have never experienced before. I think we are in a very good position to offer that,” Mr. Taus said.
Part of the new strategy is including outdoor activities like biking, hiking, mangrove planting, among others, in tour packages. In addition, the ECCP is offering European tourists to engage with local fishermen by living with them in their village.
About 553,000 European tourists visited the Philippines last year.
Although some have probably turned toward other destinations like Thailand, Indonesia, Malaysia and Vietnam, Mr. Taus expressed confidence that the tourism industry in the country would rebound.
“if we shift gear and look at other opportunities as well because as snooze dies, you try to fit in a little bit more positive things and you go from there,” he added.
Asked on the interest of European investors to put up businesses in the country, Mr. Taus said: “There’s a lot of interest in the Philippines despite it all. Very much interest and we’ll see what the outcome is.”
The official admitted, however, that the ECCP has had discussions with companies that have looked at the Philippines and hesitated.
“And people start comparing the incentives and the political stability and the grants that they get and the incentives that they get and said fine. If they can be revoked any time they might want one have a second look at it and see is there any option that we have. Its certainly always a concern,” Mr. Taus added.

EU sees continued assistance to Marawi

By Janina C. Lim, Reporter
THE European Union (EU) is exploring ways to channel its assistance to Marawi City, mulling a scheme that does not involve transacting with the national government whose chief executive has rejected EU aid.
“Just because the government rejects aid from government to government doesn’t mean we have to do this government to government. There are several programs that we do around as private entity, we channel those funds through private institutions,” European Chamber of Commerce of the Philippines President Guenter Taus said during a press briefing in line with the group’s 40th anniversary as celebrated Thursday night in Pasay City.
He added that working with governments, in general, “is not easy.”
“But if we put our wills and minds together, we can make this work. We are here to stay, not only as the EU chamber but also as the EU so we do find ways and means,” Mr. Taus added.
As such, the EU remains working closely with the Office of the President and other government agencies such as the Finance Department to help in the country’s rebuilding efforts fo Marawi City, according to EU Ambassador to the Philippines Franz Jessen.
“There is a very significant need for funds and rebuilding and the EU is standing ready to assist,” Mr. Jessen said yesterday.
He added that the embassy is negotiating with the government to extend its support beyond Marawi City, which was under siege by terrorists last year, and across the whole region of Mindanao, having had a dialogue with Presidential Adviser on the Peace Process Jesus G. Dureza twice to discuss this broadened scope of aid.
Mr. Jessen had earlier said the regional economic bloc is wiling to give as much as 100 million euros or P6 billion for the rehabilitation of Marawi City.
However, President Rodrigo R. Duterte has thumbed down receiving all forms of assistance from other countries and international entities, including that offered by the EU, especially those deemed “conditional” such as in respect to recognizing human rights.
Mr. Duterte has repeatedly criticized the EU for meddling in the country’s affairs, particularly the administration’s drug war which has left a massive number of people dead.

No let up in controversies following quo warranto ruling

By Charmaine A. Tadalan and Camille A. Aguinaldo
IN THE continuing aftermath of the Supreme Court’s May 11 validation of his quo warranto petition against ousted chief justice Maria Lourdes P.A. Sereno, Solicitor-General Jose C. Calida was asked on Friday to make public his Statement of Assets Liabilities and Networth (SALN) from 2016 to 2018.
Private citizen Jocelyn Marie F. Acosta filed before the Office of the Solicitor-General (OSG) the request to see Mr. Calida’s SALNs to verify if he “accurately” declared his 60% share in the security agency Vigilant Investigative and Security Agenda, Inc. (VISAI).
The Sereno supporter said the remaining shares belong to members of Mr. Calida’s family as cited in the General Information Sheet filed with the Securities Exchange Commission, dated September 26, 2016.
The company serves as the security agency of the National Economic Development Authority, National Anti-Poverty Commission, Philippine Amusement and Gaming Corporation and National Parks Development Corporation.
“We hereby file a demand for your SALNs for the years 2016, 2017 and 2018 so the People may see that you have accurately declared your family’s ownership of VISAI, among other assets,” Ms. Acosta said.
The SALN for 2018, however, will not be available until next year.
Mr. Calida, in March, filed a quo warranto petition against Ms. Sereno to challenge the validity of her appointment. The case was based on Ms. Sereno’s failure to submit her SALN to the Judicial Bar Council (JBC).
The ousted chief justice, however, maintained that she has complied with the SALN requirement for all government officials.
The lower chamber has yet to trasmit its articles of impeachment to the Senate while members of the upper chamber yesterday filed a resolution urging the SC to review its quo warranto decision.
Malacañang, meanwhile, criticized Ms. Sereno’s resignation call to President Rodrigo R. Duterte, saying the ousted chief magistrate has herself to blame for the Supreme Court ruling that removed her from office.
“Ex-CJ Sereno should closely look at the mirror to see who is behind the Supreme Court ruling. She herself violated the Constitution by not filing her SALN and she herself managed to alienate her own colleagues at the High Court,” presidential spokesperson Harry L. Roque, Jr. said on Friday in a statement.
Mr. Roque pointed out that Mr. Duterte has not violated the Constitution unlike the ousted chief justice, noting too the President’s high satisfaction, approval, performance and trust ratings.
He also slammed Ms. Sereno for grandstanding in her numerous public appearances.
“We have earlier refrained from commenting on the former Chief Justice Maria Lourdes Sereno’s call for the President to resign. However, the former top magistrate has been engaged in grandstanding and seeking media coverage, pointing an accusing finger at President Duterte for the result of the quo warranto petition filed against her,” the presidential spokesperson said.
“We consider this unfortunate for the truth is, four other fingers point to her,” he added.
On the view that Ms. Sereno was being used as a rallying figure by opposition groups, Mr. Roque said, “This is a big mistake because we believe that in all the surveys, the chief justice is not trusted and her approval rating is low.”
“If she will be the rallying figure of the opposition, oh no, you’re doomed,” he added.
At the House of Representatives, Caloocan Rep. Edcel C. Lagman said the eight “grievously errant” justices who voted in favor of the quo warranto petition”deserve to be impeached.”
“They are liable for culpable violation of the Constitution and betrayal of public trust, among other impeachable offenses,” Lagman said in a statement on Friday.
The eight Associate Justices who voted against Ma. Sereno are Teresita L. De Castro, Diosdado M. Peralta, Lucas P. Bersamin, Francis H. Jardeleza, Samuel R. Martires, Noel G. Tijam, Andres B. Reyes, Jr., and Alexander G. Gesmundo.
“An invocation of the principle that what the majority of the Supreme Court say ‘is the law’ will not cleanse the gross blunder committed by the eight Justices,” Mr. Lagman said. “The act of promulgating their unconstitutional decision completes the consummation of the impeachable offenses.”
Representatives Tom S. Villarin and Gary Alejano have made similar calls.
For his part, Rep. Gary C. Alejano said the Magdalo party-list group is mulling the filing of impeachment complaints against the justices.
“This action, which the Magdalo has been proposing, was already discussed in meetings with various opposition groups and apparently has gained support,” he said.
For its part, the Ateneo De Manila University called for the public’s support for the filing of the motion for reconsideration on the quo warranto ruling.
“I am calling on the (Ateneo community) to convince the courts and the public to support the Motion for Reconsideration that will be filed at the Supreme Court in the next days,” Ateneo President Jose Ramon T Villarin said in a memo on Thursday.
The university earlier asked the SC to dismiss the quo warranto petition against Ms. Sereno.

MPIC power businesses target 1,600-MW hike in capacity by 2022

THE power units of Metro Pacific Investments Corp. (MPIC) will be expanding their capacity by around 1,600 megawatts (MW) until 2022, with plans to invest around P30 billion during the period.
“We continue to find ways to develop at least 1,500 megawatts of additional generational capacity by 2021. While we remain committed to clean coal, which today remains the most efficient to supply essential baseload demand, we are carefully evaluating renewable technologies,” MPIC President and Chief Executive Officer Jose Ma. K. Lim said in a speech during the company’s annual shareholder meeting in Bonifacio Global City, Taguig on Friday.
MPIC’s power units include Manila Electric Company (Meralco) and Global Business Power Corp. (GBP).
MPIC Chief Finance Officer David Nicol noted that half of this additional capacity will be attributable to Meralco, since the other half will be owned by partners. Estimating the required investment at $2 million per MW, the entire expansion could cost $3.2 billion.
“We have half of the project, we generally have a partner in all of them. So our share in the gross expense is $1.6 billion, and then from project financing, it should be be 70 to 30, so you’re looking at 30%, that’s around $500 to $600 million, so you’re looking up to P30 billion of cash out of Meralco,” Mr. Nicol told reporters after the shareholder meeting.
Mr. Lim noted that the group is still studying the appropriate mix for the added capacity.
“The developments in renewable are happening so quickly. We will try to find the right balance between coal-fired and renewable, taking into consideration the requirements of the country as well as the environment,” Mr. Lim told reporters in a separate interview after the meeting.
The executives noted that the current priority is the Atimonan power project that consists of two power plants producing 600MW each, for a total capacity of 1,200MW.
In addition to the capacity expansion, MPIC is currently in the process of developing a waste-to-energy facility in partnership with the local government unit of Quezon City. The project will have a capacity of 42 MW.
MPIC’s power units raised their consolidated core profit 16% in the first quarter of 2018, netting P3.6 billion in the January to March period. The listed conglomerate stepped up its investment in the power industry last year through Beacon Electric Asset Holdings, Inc., which in turn has a stake in both Meralco and GBP.
For the rest of the year, Mr. Lim said the group expects moderate earnings growth as the comparable periods will now include its increased investment in power.
MPIC is one of three key Philippine units of Hong-Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. 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.
MPIC shares dropped 20 centavos or 3.92% to P4.90 on Friday. — Arra B. Francia

Intellectual Property Office targets countryside expansion

THE Intellectual Property Office of the Philippines (IPOPHL) is considering intellectual property (IP) filings in the countryside to increase this by half of 2017 levels, as the agency bolsters awareness of the significance of intellectual property in doing business.
The agency said it will be undertaking this year “significant expansion strides in untapped cities,” part of which is setting up two more intellectual property satellite offices (IPSOs) this year: one in Dumaguete by May 23 and another in Zamboanga by the second half of the year.
“Our overarching objective in spreading the presence of IPSOs is to be able to stimulate the countryside into knowing and making the public, especially the micro,small, and medium enterprises (MSMEs), know that trademark is very relevant to their business — and to directly bring our services to them,” IPOPHL Director General Josephine R. Santiago was quoted in a statement issued Friday.
“We expect that with this, there will be more filers,” she added.
Intellectual property filings received by IPOPHL cover trademarks, patents, copyright deposits, utility models, industrial designs and layout of integrated circuits.
In the regions and provinces, however, the IP filings facilitated by IPSOs are comprised mostly of trademarks, copyrights, and patents.
Provincial IP filings stood at 3,439 in 2017 while a 50% growth would bring the total to 5,159 for 2018.
On the total IP filings from the countryside in 2017, trademarks took 5% or 2,025; copyright deposits, 27%, or 933 filings; and patents, 14% or 481.
“Increasing the filing and use of IP services is critical in order for IPOPHL to continuously promote intellectual property all across the country,” Deputy Director General Teodoro C. Pascua said, noting that the agency saw an average of 14% annual growth in provincial IP filings from 2013 to 2017.
The growth was tied to the intensified establishment of IPSOs which provide IP-related services to entrepreneurs across several select provinces.
The country currently has 11 IPSOs housed within Trade Department offices, namely, in Cebu, Davao, Baguio, Pampanga, Legazpi, General Santos, Iloilo, Cagayan de Oro, Tuguegarao, Tacloban, and the National Capital Region office. — JCL

Duterte issues proclamation on Philippine Rise

PRESIDENT Rodrigo R. Duterte has formally declared the Philippine Rise within the country’s exclusive economic zone (EEZ) as the Philippine Rise Marine Resource Reserve (PRMRR).
Proclamation 489, released on Friday and signed by the President on May 15 in Casiguran, Aurora, as he sent off Filipino marine researchers to the Philippine Rise, declared 352,390 hectares (ha) as the PRMRR which will be under the oversight of the Department of Environment and Natural Resources (DENR).
Of these boundaries, 49,684 has. are proclaimed strict protection zone while the rest are under a special fisheries management area as defined under the Philippine Fisheries Code of 1998, as amended.
Meanwhile, the Philippines sees no need to be more assertive in the Philippine Rise as Mr. Duterte’s visit is “enough” to claim the area, Presidential Spokesperson Harry L. Roque Jr. said.
“[Sa] akin po sapat na iyon para i-assert iyong ating karapatan sa Philippine Rise at symbolic nga po ‘no na sinasabi na ang Philippine Rise ay para sa mga Pilipino lamang,” Mr. Roque said in radio interview on Friday.
(For me, that is enough to assert our rights over the Philippine Rise and it is already symbolic to say that the Philippine Rise is for the Filipinos only.)
Mr. Roque added the President has no plans to return to the Philippine Rise as he had been there already (“Nanggaling na po doon sa area ang Presidente”). — Minde Nyl R. Dela Cruz

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