CUSTOMS officials led by Commissioner Isidro S. Lapeña display seized contraband at the Port of Manila in this March 5 official photo release.
THE BUREAU of Customs topped its collection target in August due to a weak peso, high oil market prices and enforcement of proper valuation, marking the seventh straight month that goals were exceeded.
In a statement on Tuesday, the bureau said preliminary data showed it collected P51.739 billion in August, 35.1% more than the P38.289 billion recorded a year ago and exceeding a P49.31-billion target for last month by 4.7%.
“The Bureau of Customs’ improved collection performance remains consistent as it has exceeded target for seven consecutive months, posting a revenue surplus of P2.326 billion in August,” the bureau said.
The bureau attributed its “consistent high revenue performance to the higher exchange rate, increased oil price in the market, proper valuation and strong enforcement and revenue enhancing measures.”
“In addition, the one-strike policy of the Commissioner (Isidro S. Lapeña) motivated the ports to consistently hit their targets,” the statement read, referring to the reassignment of collection officers of under-performing ports that began in October last year.
The government also implemented Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion law, as the year began that imposed higher excise taxes on items like fuel, tobacco, coal and minerals; new taxes on sugar-sweetened drinks and cosmetic surgery and removed a number of value added tax exemptions while reducing personal income tax rates.
The bureau said that 15 of its 17 ports exceeded their respective targets, while the Manila International Container Port and the Port of Subic missed goals.
It also noted in its statement that that preliminary August data would put the eight-month revenue take to P384.3 billion, 35.53% more than the P283.56 billion recorded in the same period last year.
The bureau is tasked to collect P598 billion this year, 30.52% higher than the P458.18-billion actual collections in 2017.
Its January-August collection is equivalent to 64.26% of the 2018 collection goal.
Latest official data from the Bureau of the Treasury show that the BoC collected P331.6 billion in the January-July period, 35% higher than the P245.3 billion it recorded in the same period last year. — E. J. C. Tubayan
A growing current account deficit that has been weighing on the peso has been fueled mainly by a widening trade deficit, as businesses import more capital equipment needed to drive their planned expansion.
CREDIT RATER Fitch Ratings said that the Philippines maintains a generally “favorable growth outlook” even as overheating risks have begun to show.
“The Philippines’ rating balances a favorable growth outlook, government debt levels that are below peer medians, a net external creditor position and policies geared towards maintaining macrostability against lower income per capita and weaker governance and business environment indicators compared with rating peers,” Fitch said in its Asia Pacific Sovereign Credit Overview for the third quarter that was published late Monday.
“We expect the economy to perform well in 2018, despite a disappointing 2Q18 outturn [of six percent], supported by private consumption and investment.”
It said a steady inflow of remittances and improved labor conditions due to business process outsourcing (BPO) growth would drive up household consumption in 2018 and 2019, and that the rise in infrastructure spending would push up overall investment.
“However, the agency believes the economy faces some overheating risks, evident from a recent rise in inflation, rapid credit growth and a widening trade deficit,” Fitch said.
It said that the country’s current account deficit would widen to 1.1% of gross domestic product (GDP) this year and 1.3% in 2019 and 2020 from 0.8% of GDP last year, “driven by continued strong growth in the import of capital goods associated with the government’s public-investment programme and higher oil prices.”
“The BPO sector’s strong receipts and steady remittance inflows are offsetting these factors and helping to contain a further widening of the current account deficit,” it added.
It also noted that “steps being taken by the Bangko Sentral ng Pilipinas to tighten monetary policy — policy rates have increased by 100 basis points since May 2018 — may contain these risks.”
The debt watcher flagged the risk of overheating in June last year, and more recently in July as it affirmed the country’s credit rating at a notch above investment grade with a “stable” outlook.
Among other key credit raters, Moody’s Investors Service had earlier voiced caution on overheating risks, even as it said in April that these “are not yet material”, while S&P Global Ratings said in May that such event was unlikely.
Bangko Sentral ng Pilipinas and Finance department officials have argued that the growing current account gap was fueled mainly by a trade deficit fueled by importation of capital equipment such as heavy machinery and other durable goods that, in turn, signal an expansion of the economy’s capacity.
Fitch expects the first of up to five planned tax reform packages to improve national government revenues to 16.2% of gross domestic product this year and 16.7% next year, from 15.6% in 2017.
The government targets revenues as a share of the economy at 17.7% by 2022 to fund needed state infrastructure investments of more than P8 trillion till 2022, when President Rodrigo R. Duterte ends his six-year term. That will bring such investments’ share of GDP to 7.4% in 2022 from 5.6% in 2017.
Latest government data show that tax revenues grew 18% year-on-year to P1.47 trillion in the seven months to July, while infrastructure and other capital outlays increased by 41.7% annually to P352.7 billion last semester.
Finance Secretary Carlos G. Dominguez III recently told Fitch that GDP growth could reach “close to 6.8%” this year, which is the debt watcher’s expected economic growth level, below the government’s 7-8% target band. This was after a six-percent GDP growth in the second quarter from 6.6% a year ago and in the first quarter this year, that fueled a 6.3% expansion last semester versus 6.6% in 2017’s first half. MORE RATE HIKES EXPECTED
ING Bank N.V. said separately on Tuesday that it expects the central bank to further hike benchmark interest rates even after the 100 basis point increase since May.
In its research note, the bank said it expects the central bank to raise its interest rates anew by 25 basis points later this month, and another 25 basis points in the fourth quarter due to sustained upward inflation pressure.
“Market expects inflation for August to rise to 5.9% from July’s 5.7%… We expect a 25 bps BSP (Bangko Sentral ng Pilipinas) rate hike later this month and another 25 bps in (the fourth quarter),” said the bank, which expects inflation to have reached 6.1% in August.
ING also said it expects the current account deficit to grow even bigger.
“The strong domestic demand continues to worsen the trade imbalance and would likely result in a wider current account deficit. We expect the trade deficit to widen by $10 billion to $15 billion this year on weak exports and moderately higher imports,” the bank said in the same research note.
“Structural inflow especially the growth of OFW (overseas Filipino worker) remittances has been erratic,” it said, noting that “ the result is a larger financing need to supply USD for a larger trade deficit.”
ING meanwhile expects the current account deficit to be equivalent to 1.9% of GDP in 2018 and 2.2% of GDP in 2019. — Elijah Joseph C. Tubayan
AN artist’s rendering of the new headquarters of JPMorgan Chase in Fort Bonifacio. — MEGAWORLD
MEGAWORLD Corp. is building an office tower for JPMorgan Chase Bank, N.A. in Fort Bonifacio, as the global banking and financial services provider consolidates its presence in the country.
In a statement issued Tuesday, the listed property firm said the 25-storey building will serve as JPMorgan’s Philippine Global Service Center. The building will cover a gross leasable area of around 70,000 square meters, making it the largest single office lease transaction in the country in terms of transaction value as well as total space leased to one company.
Located along 38th Street corner 9th Avenue in Uptown Bonifacio, the building will stand near the future Uptown Transport Hub of the proposed Skytrain monorail project being developed by Megaworld’s sister firm, INFRACORP Development, Inc.
Megaworld expects to complete the tower by 2021, with full operations to start by 2022.
The Andrew L. Tan-led firm will lease the building to JPMorgan for a period of 10 years, with a multiple renewal option.
“Megaworld is proud to build the new home of JPMorgan Chase in Fort Bonifacio as it consolidates its existing Metro Manila operations under one roof — all in a state-of-the-art, prime and green office tower right at the heart of the booming Uptown Bonifacio,” Megaworld Senior Vice President Jericho P. Go said in a statement.
Megaworld did not disclose the total cost for the tower, but noted that it is a multibillion peso project.
For his part, JPMorgan Philippine Global Service Center Chief Executive Officer Raoul R. Teh said the building will allow the company to bring its Manila-based employees in one place.
“Manila continues to be a major strategic hub for JPMorgan Chase. Through this landmark development, we are able to consolidate our presence to one location, so enabling us to bring our Manila-based employees together, facilitating increased collaboration while also demonstrating our commitment to providing them with various career opportunities within the firm,” Megaworld quoted Mr. Teh as saying in a statement.
The building will be designed by United Kingdom-based architectural firm Broadway Malyan, and is applying for LEED (Leadership in Energy and Environmental Design) Gold certification. This indicates that the project will be a green building with energy-efficient and environmentally-friendly components.
“We are excited to be part of this new development that sets new benchmarks for sustainability and reaffirms our global efforts to maintaining exceptional working environments with only the best-in-class infrastructure and facilities for our employees,” Asia Pacific head of JPMorgan’s Global Real Estate team Jun L. Nepomuceno said in a statement.
Megaworld generated a net income attributable to the parent of P7.25 billion in the first half of 2018, 13% higher year-on-year, following a 10% jump in revenues to P26.8 billion.
Shares in Megaworld gained 0.6% or 1.31% to close at P4.65 each at the stock exchange on Tuesday. — Arra B. Francia
By Victor V. Saulon, Sub-editor
SHELL Philippines Exploration BV (SPEx) and its consortium partners that developed the country’s only natural gas discovery, along with the Department of Energy (DoE), have asked the Supreme Court to review the state auditor’s finding that they owe the government billions of pesos in unpaid income tax.
“We can confirm that the Malampaya Joint Venture (JV), together with the Department of Energy, filed a petition for Certiorari with the Supreme Court after receiving the Commission on Audit’s (CoA) decision denying the consolidated Motion for Reconsideration (MR) submitted by the Malampaya consortium,” Shell Companies in the Philippines said in an online message sent to reporters.
The filing came ahead of the start of arbitration hearings before the International Court of Arbitration of the International Chamber of Commerce in Singapore later this month.
Shell Companies in the Philippines include SPEx, which along with consortium partners Chevron Malampaya LLC and PNOC Exploration Corp. operate the Malampaya natural gas platform.
Sought for comment, energy stakeholders said the resolution of the case is crucial in encouraging investments in natural gas development, which the country needs in view of the expected depletion of the Malampaya gas find by 2022 to 2024.
Aside from the arbitration in Singapore, SPEx filed in July 2016 an arbitration case with the International Center for Settlement of Investment Disputes against the Philippine government in connection with the P53.14 billion in taxes that CoA says the Malampaya consortium owes.
Jose M. Layug, Jr., a former DoE undersecretary, said an energy-intensive country like the Philippines needs to find its own energy resources and the only way to do so is to attract foreign companies with the capability and finances to explore.
“And the only way they will come here, among other factors, the most important is stability in government contracts, stability in policies, rules and regulations. If we don’t have that, you can be assured that they will go to other countries,” he told reporters during Powertrends 2018, an annual conference on the energy and power.
Mr. Layug signed the appeal on behalf of the DoE in 2011 over the CoA’s stand on the consortium’s tax liability.
He said contract for the Malampaya project did not exempt the service contractors from paying income tax, but the contract has a tax assumption clause. This provision was recognized by the Philippine government in various cases in the Supreme Court and by rulings by the Bureau of Internal Revenue.
The Malampaya project fuels several power plants in Batangas and supplies Pilipinas Shell Petroleum Corp.’s refinery and compressed natural gas refilling station. The project delivers about a fifth of the country’s electricity requirements.
“There is an income tax due, but the government in this case agreed to assume the tax. Why? Because unlike other countries, in the Philippines unfortunately oil and gas basins are not as prospective as Malaysia, Indonesia, Thailand. That’s why we have to have a good fiscal regime,” he said.
“And that was provided in Presidential Decree No. 87,” Mr. Layug added, referring to the Oil Exploration and Development Act of 1972. “So we have to abide by that.”
ASIAN stocks slipped in August, dragged down by the trade dispute between China and the United States, while the plunge in the Turkish lira prompted some investors to sell emerging market assets.
During August, the MSCI Asia-Pacific index touched a more than 11-month low and it closed down 0.83 percent for the month. The index has declined more than 5 percent this year.
Chinese stocks topped the regional losers last month, falling 5.25 percent, followed by Singapore and Hong Kong shares.
The escalating trade war between the world’s two biggest economies is expected to affect the regional trade activity and, in turn, Asian companies’ earnings prospects as they derive a major chunk of revenue from exports.
Over the past month, analysts have slashed Asian companies’ 2018 earnings estimates by 1.27 percent, and cut those for 2019 earnings by 1.52 percent, according to Thomson Reuters I/B/E/S data.
Share indexes in New Zealand, Japan and Taiwan are the only ones in the region that have registered gains for 2018 in dollar terms, while the rest have suffered sharp declines.
New Zealand, India, and Malaysian stocks have the highest price-to-earnings ratio based on 12-month forward earnings in Asia, according to Thomson Reuters data. — Reuters
By Arra B. Francia, Reporter
ARTHALAND Corp. is acquiring more land in Metro Manila and other key cities, as it aims to quintuple the number of completed projects under its portfolio in the next five years.
Arthaland Executive Vice President for Business Development Christopher G. Narciso noted the company ended 2017 with two completed projects, namely the two-tower Arya Residences and its flagship office project Arthaland Century Pacific Tower (ACPT), both located in Bonifacio Global City (BGC).
The listed property developer is currently developing an office project in Cebu. The 39-storey Cebu Exchange Tower offers 83,100 square meters (sq.m.) of office space plus 3,900 sq.m. of retail space.
“We want to expand development footprint via residential and office buildings in a very boutique way. Coming out from 2017, we had Arya and ACPT. We want to expand that five times in the next five years, and increase the number of square meters we’ll develop,” Mr. Narciso told reporters during a media round table in Taguig City on Tuesday.
Arthaland has several projects in the pipeline to achieve this target, including a commercial office project in Arca South in Taguig. It also plans to develop several condominium projects within the Makati Central Business District and BGC. Mr. Narciso said they are still acquiring the properties to be used for the projects.
“It’s all in the works right now. It’s hard to say exactly how many (condominiums), because we’re evaluating and working on several properties… We’re looking at acquiring new properties there,” Mr. Narciso said.
Arthaland has also lined up an apartment/ condominium type residential project in Binan, Laguna. This will consist of around 300 rooms with an average size of at least 24 sq.m. Mr. Narciso said the rooms can accommodate up to four people.
“Our team actually visited different university towns in the United States to get inspiration for the project… It’s a good mix of the different university towns there, but we localized it to suit local culture, place, and weather,” Mr. Narciso said.
The company is likewise evaluating other areas outside Metro Manila, as it targets to expand beyond Luzon and the Visayas.
Mr. Narciso noted Arthaland has been “very deliberate” with the pace of its expansion in previous years, saying this allows them to pay attention to more detail compared with other large-scale property developers.
“That was very much deliberate, given that the way that Arthaland wants to develop is to do it as a boutique developer… so you won’t see us doing five projects a year. We will still be very deliberate in having a right number of projects even as we expand,” he explained.
Arthaland grew its net income attributable to the parent by 535% in the first six months of 2018 to P34.6 million, amid slower gross revenues of P210.78 million during the period.
Shares in Arthaland slipped by a centavo or 1.37% to close at 72 centavos each at the stock exchange on Tuesday.
THE Philippine Telegraph and Telephone Corp. (PT&T) on Tuesday said it is willing to settle any remaining penalties the Philippine Stock Exchange (PSE) may impose, as well as comply with the requirements that may pave the way for the lifting of its trading suspension.
“We paid what we were aware of as of Aug. 31, and if there are additional penalties we will settle those as well to comply. We wish to cooperate with the PSE and have the fervent desire to resume trading on our shares,” the telecommunications company said in a statement.
On Monday, the PSE issued a statement, saying it is evaluating PT&T’s repeated violation of disclosure requirements to see if this may be grounds for its removal from the roster of listed companies.
“It seems that the Exchange’s disclosure rules were blatantly disregarded by PT&T,” PSE president and chief executive officer Ramon S. Monzon said in the statement. The bourse operator said PT&T has not submitted its compliant structured reports since trading of its shares was suspended in 2004, and its material information disclosures were not submitted on time.
PT&T said it only received on Sept. 3 the PSE’s letter detailing additional fines totaling P3.8 million from violations made between 2011 to 2018.
The company had assumed it had already settled the case with the PSE after it paid on Aug. 31 the P635,000 penalties it was initially charged with.
“There has been some confusion/miscommunication but we will work closely and cooperate to the end with the PSE for the lifting of suspension. We wanted to inform our shareholders that PT&T is doing its utmost to comply with the requirements to lift the suspension to protect and pursue their interests,” the company added.
PT&T chief operations officer Miguel Marco A. Bitanga told BusinessWorld in a text message that company president James G. Velasquez is seeking a meeting with the PSE to discuss any additional penalties.
“It is in our best interest to settle all remaining penalties immediately, and now are seeking to confirm both the final amount and list of penalties with this objective,” he said.
PT&T also reiterated its call to be allowed to resume the trading of its shares, saying it “has the underlying assets and existing business to support its shares as well as competent management team and positive growth outlook.”
PT&T is one of the telco companies planning to participate in the government’s bid for a so-called “third telco” player. — Denise A. Valdez
By Sam L. Marcelo, Associate Editor, High Life Dance Carmina Burana Ballet Philippines Sept. 7-9 Tanghalang Nicanor
Abelardo, Cultural Center
of the Philippines, Roxas BLvd., Pasay City
TRANSLATING Carl Orff’s Carmina Burana into dance is a feat not for the fainthearted. Composed between 1935 and 1936, the cantata is a beast of a piece that plays at piety before descending into medieval debauchery.
Based on a collection of poems of the same name written by monks, Orff’s 25-movement Carmina Burana (Latin for “Songs from Beuern”) opens with “O Fortuna,” a choral blockbuster and pop-culture staple that’s been used to hawk a laundry list of things — aftershave, beer, pizza, and chicken tenders, among them — aside from being included in scads of film and TV soundtracks. It’s right up there with Beethoven’s Fifth; once you hear it, you’ll probably recognize it.
“The music is iconic, overpowering, formidable,” said Alice Reyes, National Artist for Dance, who, in 2017, returned as artistic director to Ballet Philippines (BP), the company she co-founded.
To open its 49th season, BP is trotting out Ms. Reyes’s choreographic attempt at matching the monumentality (a word that came up often during BP’s season launch) of Orff’s magnum opus. Premiered in 1974, Ms. Reyes’s Carmina Burana is an athletic blend of modern and classical techniques that leaves its dancers in a state of rapt breathlessness. “I tried to get into the spirit of the songs, the medieval-ness of it. It starts with monks and goes into total sensual, sexual orgies,” she said. (Whoever doubts the monastic aptitude for letting loose should remember that monks are responsible for brewing some of the best beers in the world — and where there is beer, there is… life.)
Described as “very difficult” and “very physical” by BP members, Ms. Reyes’s choreography features jumps with a lot of ballon and verve. “You can’t just throw yourself around. You have to have the lines of classical ballet but, at the same time, the freedom of modern dance,” said danseur Ronelson Yadao.
Adam Sage, BP associate artistic director and ballet master, danced Carmina Burana in the 1980s and he knows the demands of Ms. Reyes’s masterpiece. “It pushes you,” he said. “It’s very rewarding to do because when you get to the end, you feel like you’ve accomplished something… And now, we’re at the point where we’re in the right place, not only physically but in the brain as well.”
Featuring sets originated by the late Salvador “Badong” Bernal, National Artist for Theater Design, and live performances by the Madrigal Singers and the ABS-CBN Philharmonic Orchestra under the baton of Gerard Salonga, Carmina Burana is one of BP’s most expensive productions, which explains, in part, why it has taken 15 years for it to return to the Main Theater of the Cultural Center of the Philippines. “You begin the 49th as big as you can,” said Ms. Reyes.
Company members are aware of how lucky they are to have the National Artist herself re-choreograph Carmina Burana to their bodies. The solo of Victor Maguad — originally created for a longer, taller dancer — was reworked to take advantage of his muscular build. A few more male sections were also added to show off the swelling number of danseurs in BP’s roster (there are 20).
“It looks very different,” said Ms. Reyes of this incarnation of Carmina Burana. “I fine-tuned it and I think it’s much stronger… The music is powerful so I had to make sure that the dance came up to that level.”
During open rehearsals, Ms. Reyes couldn’t help but exclaim “I love this music, dios mio,” as soon as “O Fortuna” cymbal-crashed to its abrupt end. “With music like that, it is a challenge. It has grown as I think I piece should grow — as long as the choreographer is still around to grow it.”
Revisiting this piece, now a 44-year-old classic, was a wistful process for the BP co-founder. “It’s very interesting in that I remember the older bodies,” said Ms. Reyes. She reeled off the names of the original dancers, including Edna Vida Froilan (her younger sister), Nonoy Froilan (Ms. Froilan’s husband), and Effie Nañas — all of them living legends, as is Ms. Reyes, in the eyes of BP’s 20- and 30-somethings who were barely even a twinkle in their parents’ eyes when Carmina Burana was first shown.
The current company recognizes the historical import that accompanies this restaging of Carmina Burana, only the third or fourth (depending on whom you ask) in BP’s 49 years. “It’s a blessing. It was danced by former dancers of Ballet Philippines who we looked up to and are still looking up to,” said Mr. Yadao. “It’s really something special.”
Stephanie Santiago, a young recruit who just returned from her studies in the US, was floored by the choreography of Ms. Reyes. “She’s, for me, a genius,” Ms. Santiago said, hesitant but earnest in her praise. “I really think that the works of Alice should go on international stages because you won’t see anything like this. It’s amazing.” Carmina Burana is but one of the 500 pieces in BP’s repertoire, which is so vast that Ms. Reyes compared it to a revolving museum where pieces are alternately placed in storage and taken out — hopefully — for all to see.
Standing in the CCP rehearsal hall, she waxed poetic about BP’s “tremendous choreographic thrust” and how it was in that very room that dance luminaries such as Gina Katigbak, Eddie Elejar, Tony Fabella, Edna Vida, Agnes Locsin, Bam Damian, and Steve Villaruz first started. “And so what I’m trying to do with this march toward the 50th anniversary, which happens very soon, is to continue showing off why we — Ballet Philippines — take such great pride in the company that we share with the country.” (Aside from Carmina Burana, the program also features Brando Miranda’s Vivaldi Concerto, which premiered in 1983; Norman Walker’s Season of Flight, a piece that debuted in 1972 and was the first of five dances created by Walker for the company; and Sama Sama, a new work by Ronelson Yadao, who returned to Ballet Philippines during the48th season after a stint with Cloud Gate Theater in Taiwan. For tickets to the opening of BP’s 49th season, call BP at 551-1003, Ticketworld at 891-9999; or visitticketworld.com.ph.)
THE MEASURE seeking to extend paid maternity leave will have a “serious implication” on the Social Security System’s (SSS) finances, a top official said while urging the government anew to hike its contribution rate.
During the soft launch of the fund’s Pension Loan Program on Monday, SSS President and Chief Executive Officer Emmanuel F. Dooc said the agency will have to shell out an additional P4 billion every year should House Bill No. 4113 or the 100-Day Maternity Leave Law be enacted.
“This year, we foresee na bibigat ang bayarin namin (that we have to pay more) because of the approval of the expanded maternity [leave],” Mr. Dooc told reporters.
“Based on our actuarial studies na kapag iyan ay naisakatuparan, sa isang taon madaragdagan ang aming gastusin sa maternity benefit lamang [ay] mga P4 billion taun-taon (if that is enacted, we’ll have to pay an additional P4 billion every year for the maternity benefit).”
Mr. Dooc added that the additional benefits to cover the additional 40 days of maternity leave will be on top of the P5.5-6 billion already disbursed for maternity benefits every year.
Yesterday, the House of the Representatives passed on third and final reading the bill extending paid maternity leave for female government and private workers to 100 days from the current 60 days.
As the measure provides, women employed in the private sector shall be “paid her daily maternity benefit…based on the average monthly salary credit.”
The bill’s counterpart, Senate Bill No. 1305, grants a maternity leave of 120 days and an optional 30-day extension. It has been approved on third and final reading.
Mr. Dooc said the SSS has already submitted its position regarding the measure.
“[If] they come up with additional benefit, sanamag-identify naman ng (they should identify the) source of funding where we can draw the…funds to pay for this benefit,” he said.
The SSS chief said authorities should consider increasing the pension fund’s contribution rate since additional benefits will have “serious implications” on its finances.
“They should also be open to increasing the contribution rate. We are not asking for a subsidy yet — so increase [our] rate so we can also provide more benefits.”
The SSS wants to increase its monthly contribution rate to 14% this year from the current 11% to cover for the monthly pension increase of an initial P1,000 approved by President Rodrigo R. Duterte in January last year.
Mr. Dooc said the contribution hike will prolong the fund life of the SSS to 2044 from the current 2032.
Senate Bill No. 1753, which seeks to effectively empower the SSS to increase contribution rates by itself, is now pending second reading. — Karl Angelo N. Vidal
THE Department of Energy (DoE) said hybridization and optimization of power generation sets would save state-led National Power Corp. (Napocor) up to P2.25 billion yearly.
The expected savings was the among the major findings of a study conducted by experts of Access to Sustainable Energy Programme (ASEP) , an initiative funded by the European Union (EU).
ASEP is a joint undertaking of the EU and the DoE, through which the former set aside a grant of P3 billion to assist the Philippine government in meeting its rural electrification targets through renewable energy and energy efficiency.
In a statement, the DoE quoted Christoph Menke, strategic advisor of ASEP, as saying the study showed an estimated P1 per kilowatt-hour (kWh) cost reduction if Napocor adopts a solar hybridization of its large-scale power plants.
With the cost reduction, savings of at least P500 million could be realized, he said.
A hybrid mini-grid combines at least two different kinds of technologies for power generation. It then distributes the electricity to consumers through an independent grid. The mini-grid is supplied by a mix of renewable energy sources and a backup generation set powered by diesel fuel.
Mr. Menke, who presented his findings during Powertrends 2018, said another study shows that adopting hybridization in Napocor’s mini-grids and ensuring diesel generation sets are running at optimal levels would result in a cost reduction of around P4.5/kWh, which is almost P2.25 billion of annual savings.
He said the cost reduction would help bring down the electricity bills of consumers.
The study showed Napocor will realize savings if the renewable energy share in power generation is at least 23% of the energy mix, Mr. Menke said. Hybridization will result in better reliability and improved service hours of power plants.
“A hybrid mini-grid will increase the resilience and efficiency of our power generation assets, reduce fuel consumptions and dependence on diesel, which in turn reduce emissions that are harmful to the environment,” he said.
The study also found that the hybridization of the fuel source of power plants would result in the reduction of DoE’s universal charge on missionary electrification subsidies and attract the private sector to invest in hybridized power generation. — V.V.Saulon
NAGINATA practice wear with protective gear — NICKKY FAUSTINE P. DE GUZMAN
WHETHER it is making sushi, growing bonsai, drinking tea, or arranging flowers, there is art present in every aspect of Japanese culture. Beyond being a sport or methods of self defense, the martial arts are, as well, a Japanese art form.
Before becoming sports, Japanese martial arts have a very long history, starting as combat techniques used during battles. Today, many of these original martial arts are considered sports which are enjoyed by anyone, not only by the Japanese.
Scholars estimated that the foundation of the martial art schools, called ryūha, started at the end of Japan’s Heian period (794-1185).
Currently on view at the National Museum of Fine Arts is The Spirit of Budō: The History of Japan’s Martial Arts — an initiative of the Japan Foundation Manila — which tackles the history, evolution, uniforms, and tools used in Japanese martial arts.
The exhibition occupies the Museum’s Galleries XXVII and XXVIII and is ongoing until Sept. 30.
Before coming to Manila, the travelling exhibit has been to Peru, Canada, and Brazil.
“Many people, not only Filipinos, enjoy martial arts like judō and karate-dō. But they do not know the history. This is a good opportunity to know the spirit of budō, or martial arts, so that people can enjoy it more,” Hiroaki Uesugi, director of Japan Foundation in Manila, told BusinessWorld.
On view at the two adjacent galleries are bows and arrows, suits of armor, helmets, and uniforms for kyūjutsu (archery), kenjutsu (swordsmanship), and jukendō (bayonet fighting). Some, however, are only reproductions because the original pieces are too fragile for international transport.
One of the most popular Japanese martial arts is judō, a sparring sport that does not use kicks and punches but only grappling to take down an opponent — it is karate-dō which uses throws, punches, and kicks. Judō became an Olympic sport at the 1964 Tokyo Games. Both judō and karate-dō come from Japan while taekwondo comes from Korea and uses kicks only.
Filipino-Japanese karate player Junna Tsukii, 26, told BusinessWorld that those who practice martial arts learn tradition before learning techniques.
“The martial art spirit is called as bushi-dō. The first things we learn when we start karate are not the techniques, but how to bow. Bowing in karate means respecting others and never forgetting the thoughtful consideration even towards your opponent. In bushi-dō spirit, you always strive to follow the correct way, the right posture. You need justice and courage to push through,” she said at the sidelines of the event’s launch on Aug. 9.
At the opening, Ms. Tsukii demonstrated her karate skills.
Born in Pasay City to a Japanese father and Filipino mother, she moved to Japan when she was in kindergarten. She took up karate at age seven and became a five-time champion in the National Games in Japan. She returned to the Philippines last year to represent the country as a national team member and won two bronze medals in the SEA Games in Kuala Lumpur, Malaysia.
“The reason why I chose to be a national player of the Philippines, despite being brought up in Japan, is that I wanted to help Philippines through what I have learned in Japan. Karate has been [an] active [sport in the Philippines] now,” she said.
More than winning against the opponent, karate involves the synergy of body, mind, and spirit.
“Through practicing karate, you can learn many attacking techniques such as punches, kicks, and throwing, as well a blocks and sweeps to protect yourself from opponents. But what I want to tell you is that karate is not a sport, but martial arts, which requires mental health training rather than physical training,” she said.
A form of unarmed combat, karate is believed to have started in Okinawa, Japan. It is now widely practiced as a sport. According to Ms. Tsukii, in order to score points, a karateka, or a karate practitioner earns one point for a punch to the face or abdomen, two points for a kick at the face or abdomen, and three points for throwing down an opponent. But karate is a bloodless sport unlike boxing. It needs control, said Ms. Tsukii, where the karateka must not hurt their opponent. A punch or a kick should barely touch the opponent’s skin, she said.
Karate can be a sparring sport, called komite, where two karateka fight. It can also be a one-man sport called kata, where a karateka is judged based on how good his or her techniques are, just as figure skaters are judged for their moves on the ice.
The ongoing exhibition also features bujutsu, or traditional battlefield combat. While budō and bujutsu can be used interchangeably to describe martial arts, bujutsu is used more to refer to technique while the dō in budō means a way of life.
“We always say arigatou gozaimasu (thank you) and bow to show our good attitude — our ways of life — even before we learn the techniques,” said Ms. Tsukii.
According to the exhibit’s notes, swordsman and government official Nishikubo Hiromichi (1863-1930) said that Japan’s Ministry of Education should use the suffix “dō” (which means “way”) — as in judō, sumō, and kyūdō (archery) — to imply that martial arts are ways to develop physical, mental, and moral health.
Thanks to his initiative, budō remains as an official curriculum subject in junior and senior high school in Japan to this day.
“The spirit of budō comes from the samurai. It is respect for others, not only the old people but our opponents. We don’t like laban (fight). When we bow down, it means no more laban,” said Ms. Tsukii. — Nickky Faustine P. de Guzman
PCC approved the AXA-XL Group deal but imposed a fine on the firms. — AFP
PHILIPPINE Competition Commission has approved AXA S.A.’s acquisition of XL Group Ltd. but imposed a fine on the insurance firms for the late filing of their notification of the merger.
In a Tuesday statement, the anti-trust body said its Mergers & Acquisitions Office found that the transaction “is not likely to result in a substantial lessening of competition.”
AXA handles life insurances while the XL Group offers non-life insurance products.
AXA is the holding firm of the AXA Group which is a major insurance and asset management firm in Europe, the US, Middle East, Latin America and Asia, including the Philippines where it operates through Philippine AXA Life Insurance Corp., among other units.
Meanwhile, XL Group is a global insurance company headquartered in Bermuda. It provides casualty, property and specialty products to enterprises in North America, London, Asia Pacific and Bermuda.
With their global operations, AXA and XL will be required to submit to 11 different competition authorities aside from the PCC.
Approved by the PCC on Aug. 16, AXA, through its subsidiary Camelot Holdings Ltd., will merge with XL Group, with the latter to be a wholly-owned subsidiary of AXA.
However, the firms’ notification to the PCC on June 25 was considered late. This spans 112 days after the March 25 signing of the transaction deal and beyond the 30-day notification period prescribed by the PCC’s rules.
This subjected AXA-XL Group deal to a P123,861.86 fine or half of 1% of 1% of the value of transaction, as provided by the PCC’s terms.
The PCC said the merger “is the first case to be fined for late filing of the compulsory notification.”
“We urge firms to observe a standard of diligence in complying with notification requirements across countries whether large or small. Merging parties that file after the notification period, even prior to consummation of the deal, will be fined,” said Chairman Arsenio M. Balisacan in the statement.
The agency added that it conducts pre-notification consultations with merging parties to help them on the timing of notifications and other necessary information such as guidance on thresholds and identified markets covered by the firms.
The PCC has received notice of 154 transactions, including 44 global mergers. Of this total, 143 have been approved.
The country’s anti-trust body is mandated under the Philippine Competition Act of 2015 to review mergers and acquisitions to ensure that each do not reduce competition in the local market. — JCL
