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Boracay task force sets guidelines to sustain island rehab

boracay
THESE new guidelines set provisions for sewage management, traffic alleviation, and, most significantly, a cap on the number of people allowed in Boracay at any one time. — PHILSTAR

By Anna Gabriela A. Mogato
THE Boracay Inter-Agency Task Force (BIATF) has set the guidelines for the island’s continued rehabilitation, following its formal opening on Oct. 26.
“We cannot and will not let the influx of people destroy Boracay again or undo all the improvements and innovations that we have introduced and will be introducing,” said Task Force Chief and Environment Secretary Roy A. Cimatu.
Mr. Cimatu said that these guidelines will be turned into resolutions by government agencies and adopted into ordinances by the local government unit.
Under the accepted guidelines, the taskforce has approved the use of electric vehicles, set the moratorium for water sports and building new establishments, while prohibiting casinos and online gambling businesses on the island.
They have also set provisions for sewege management among small and large resorts, and a revised traffic scheme to alleviate Boracay’s notorious congestion issues.
Most significantly, these guidelines also limit the number of people allowed to stay on the island, tourists and workers alike.
A study by the Ecosystems Research and Development Bureau found that Boracay’s capacities can can only accomodate 54,945 people at any one time.
That number breaks down to 19,215 tourists, and 35,730 residents, migrants, and stay-in workers.
Prior to Boracay’s closure, its population already exceeded its carrying capacity by almost 30% at 70,700.
The BIATF is currently working on a relocation facility for Boracay-based employees in nearby Aklan, as well as a transportation system to take workers from the mainland to Boracay.

PCC green-lights SYNNEX acquisition of Convergys

By Anna Gabriela A. Mogato
THE Philippine Competition Commission (PCC) has green-lighted American business process outsourcing firm Synnex Corp.’s acquisition of US-based call center company Convergys Corp.
In the decision signed last Sept. 20, PCC claimed that the acquisition would not result in a substantial lessening of competition in the market, citing continued post-transaction restraints from competitors and no added “significant barriers to entry and expansion in the market.”
SYNNEX earlier announced that it was set to acquire Convergys for $2.8 billion. Convergys would then be merged with Concentrix, a SYNNEX subsidiary which also operates call centers.

Online hiring jumps 18% in August — Monster.com

By Anna Gabriela A. Mogato
Online hiring activity in the Philippines grew by 18% year on year in August, data from job listing platform Monster.com showed.
In its latest Monster Employment Index, which measures online job posting activities, the retail and healthcare industries led the double-digit growth with a 40% and 33% increase respectively.
The business process outsourcing and information technology-enabled services industries, consistent economic drivers, saw online recruitment activities stagnate in August. Meanwhile, education posted the lowest growth, with a 3% decline year on year.
Despite the high surge in retail and healthcare online hiring activities, professionals in the fields of purchase, logistics, and supply chain management were the most sought after, posting a 38% increase in demand.
Professionals in sales and business development, healthcare, human resources, and administration followed with a 32% increase in demand.
Customer service jobs, on the other hand, saw its demand slip by 1%.
Monster.com Chief Executive Officer for Asia Pacific and Middle East Abhijeet Mukherjee pointed to the country’s ongoing infrastructure drive as the reason behind the high demand for talent in logistics and supply chain management.
“The government’s Build, Build, Build campaign is looking to pave the way for a new era of growth and prosperity in the Philippines,” Mukherjee said.
But while numbers were positive in August, Mukherjee cautioned firms to stay vigilant against potential irregularities.
“While the medium-term outlook may be positive, the labour market can be exposed to domestic risks and vulnerabilities as a consequence of market irregularities and structural changes,” he said.

Meet the Roaming Mantis, the world’s most pervasive smartphone malware threat

Meet the Roaming Mantis. No, it’s not a yoga pose. Or Poblacion’s newest speakeasy. It’s likely one of the largest, fastest-growing cybersecurity threats the world is facing today.
The Roaming Mantis was first discovered in April by Kaspersky Lab’s Global Research & Analysis Team (GReAT) APAC Director Vitaly Kamluk. At the time, it was a formidable piece of malware worming its way into Android phones across Asia. Now, it’s expanded to users in Europe and the Middle East. Latest reports claim the Roaming Mantis is now digging into iOS devices as well.
“We’re pretty much looking at cyber criminals who show no traces of stopping anytime soon,” said Suguru Ishimaru, security researcher at GReAT.
Speaking at Kaspersky Lab’s Annual Cyber Security Weekend in Siem Reap, Cambodia, Mr. Ishimaru shared the latest developments in the Roaming Mantis’ global campaign:

It spreads through various means

While the Roaming Mantis has its roots in MoqHao, a related piece of SMS-carried malware that spread through South Korea in July 2017, it has since moved on to hijacking Domain Name Systems (DNS), a protocol that commands how devices on the Internet communicate.
Through the DNS, the malware has been able to target Android smartphones, creeping in through various means, including routers with weak passwords. As soon as malicious actors gain control of the DNS, Mr. Ishimaru says, they control the network.
Other methods include redirecting users to fake sites that request for their private data, and SMS spoofing delivery services that pretend to send messages from legitimate sources. Phishing, essentially.
The malware has also begun targeting iOS devices used for cryptocurrency mining through CoinHive.

It evolves really fast

“[The Roaming Mantis undergoes] rapid change, very fast., Mr. Ishimaru said. “In one day, they can modify one line, next day, two lines and edit new features. They are so active and very aggressive and rapidly improving.”
The Roaming Mantis initially launched with four languages supported, essentially targeting users communicating through those languages. Today, the malware supports 27 languages — including Tagalog. What does this mean?
If the malware supports a particular language, Mr. Ishimaru says, that means the hacker group behind it sees money to be made among those users. With a vast majority of Filipino smartphone owners on the Internet and using Android, there is absolutely every incentive for hackers to support Tagalog.

It’s difficult to measure damages, but the scale is definitely huge.

Mr. Ishimaru confessed that his team has had a difficult time measuring the scale of the Roaming Mantis’ damages. They’ve found that at least 4,000 users have experienced data leaks due to malware installed in their devices. But that doesn’t begin to paint the full picture.
“But they don’t only use malware. They use malware and phishing sites, and mining to get money,” Mr. Ishimaru said. “I can’t imagine how big, but I’m going to say it’s a very big campaign.”
Based on their research, Mr. Ishimaru’s team found that the Roaming Mantis has managed to glean names, addresses, credit card numbers, and bank information from affected users.
Security questions and their answers were intercepted as well, meaning cybercriminals have a chance to regain access to accounts even after passwords are changed.

Cybercriminals are like “mafia or yakuza.”

Recent developments in the Roaming Mantis campaign follow a global trend in cyber threats: Criminals are upscaling their attacks in a major way.
Mr. Ishimaru noted that the criminals behind the Roaming Mantis were strategic, but rapid in how they scaled their operations. “They just supported all platforms,” he said. “That’s it. Any platform that gives access to their server. They host malicious content for each device, each platform.”
As to why there are cyber threats such as Roaming Mantis still being developed by individuals, Kaspersky’s researchers have noted that it is all just for profit.
“Cybercriminals [are] like mafia or yakuza, they have a strong financial motivation,” Mr. Ishimaru said. “They want the money.” While their methods are sophisticating by the day, Mr. Ishimaru noted that at least understanding the group’s motivations provides clues to what may lie in store.

Thankfully,  it’s pretty simple to find out if the Roaming Mantis has found its way to your device.

“In my experience and [in the] case in Japan, the first time Roaming Mantis used DNS hijacking — any connection to the bad guy’s server, if you want to connect to Google, [you] cannot. If you want to connect to Yahoo, [you] cannot. If you want to access the bank, you cannot,” Mr. Ishimaru said.
Mr. Ishimaru said the key to keeping safe is a simple rule-of-thumb: Don’t allow third-party apps on your device. He noted that it’s very rare for malware to be found in the Google App store. As an added precaution, any user should have an anti-malware app installed on their device by default.
Home routers, which are not as frequently checked as phones and PCs, should also receive some TLC. Mr. Ishimaru said that IDs and passwords should be frequently changed.
While the Roaming Mantis is up for another update anytime soon, these safety precautions should keep it at bay.
“The intense financial motivation of this group is undoubtedly fueling it to try different attack and evasion tricks to widen its reach in a short period of time,” he said. “In its haste to jump on different platforms, languages, and territories, Roaming Mantis is leaving crumbs of clues that guide us in understanding and predicting its next moves.”
“We will keep monitoring their activity,” Mr. Ishimaru said. “We have to keep watching to save the world.”
As of writing, the Roaming Mantis was found to support the following languages:

  • Arabic
  • Armenian
  • Bulgarian
  • Bengali
  • Czech
  • English
  • German
  • Georgian
  • Hebrew
  • Hindi
  • Indonesian
  • Italian
  • Japanese
  • Korean
  • Malay
  • Polish
  • Portuguese
  • Russian
  • Serbo-Croatian
  • Simplified Chinese
  • Spanish
  • Tagalog
  • Thai
  • Traditional Chinese
  • Turkish
  • Ukrainian
  • Vietnamese

 

Coming out of seclusion

Once an off-the-grid destination preferred by expats, Misibis Bay is opening up to welcome adventure-seeking weekend warriors.

Money on my mind

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Economists watch if inflation has peaked

INFLATION can now go either way towards yearend after September logged a fresh nine-year high, economists said in separate assessments last weekend.
Prices of basic goods rose by 6.7% in September from a year ago to mark a fresh nine-year high, although a tad slower than market expectations.
The Philippine Statistics Authority said on Friday last week that food, transport and utility prices led the increase last month, worsened by the impact of typhoon Mangkhut, locally called Ompong, and unrelenting oil prices.
That pushed the nine-month pace to five percent, a percentage point higher than the 2-4% target set by the Bangko Sentral ng Pilipinas (BSP) for the entire 2018.
Headline inflation rates in the Philippines (September 2018)
Both the central bank as well as President Rodrigo R. Duterte’s economic team are of the view that inflation has already peaked, and will clock in slower during the last three months of 2018.
On a month-on-month basis, inflation clocked in at 0.9% in September, steady from August’s pace.
Financial markets reacted in different ways to Friday’s inflation report, with the Philippine Stock Exchange index shedding 0.21%, though shallower than Thursday’s 1.63% fall, while the peso actually rebounded against the dollar, strengthening by nine centavos from Thursday.
But Emilio S. Neri, Jr., chief economist at the Bank of the Philippine Islands (BPI), said inflation could still pick up.
“The behavior of inflation has a direct link with oil. Unless the said commodity shows a consistent deceleration, then consumer prices may continue to rise significantly,” Mr. Neri said in a report sent by e-mail late last Friday.
Citing historical data, BPI’s report said inflation usually breaches target when average global oil prices surge by at least 30% year-on-year. The benchmark West Texas Intermediate (WTI) crude oil price rose by 40% last month, according to the report.
“Recent global oil price trends are likely to prevent a turn in the headline inflation print in the near term. Inflation could peak in December should oil prices fall month-on-month in October and November but the turn could be delayed further if WTI Crude and Brent continue to soar,” Mr. Neri cautioned, adding that the impact of damage from typhoon Ompong may spill into this month.
Still, Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said that inflation is “starting to drop” after September, when Ompong’s impact on food prices contributed 30-50 basis points in the September inflation print.
London-based Capital Economics also said that inflation could ease over the months ahead as government interventions to boost rice supply help ease price pressures.
“[E]ven if oil prices remain elevated, oil price inflation will start to moderate over the next few months. Finally, the impact of previous tax hikes on items such as fuel, alcohol and high-sugar drinks will drop out of the annual comparison at the beginning of next year,” the think tank said in a report, even as it said it expects two more rate hikes from the Bangko Sentral ng Pilipinas (BSP) either in its Nov. 15 or Dec. 13 policy review — the last two for 2018.
The analysts also pointed out that the sustained depreciation of the peso may push the BSP to hike rates further, apart from the goal of reining in inflation expectations. — Melissa Luz T. Lopez

Headline inflation rates in the Philippines (September 2018)

INFLATION can now go either way towards yearend after September logged a fresh nine-year high, economists said in separate assessments last weekend. Read the full story.
Headline inflation rates in the Philippines (September 2018)

AMRO adds to expectations of PHL growth slowdown as price hikes bite

A REGIONAL research group has slashed its growth forecast for the Philippines, noting that surging inflation and consumer pessimism will likely weigh on household spending and dampen overall expansion.
The ASEAN+3 Macroeconomic Research Office (AMRO) joined multilateral lenders in trimming the growth estimate for the Philippines to 6.5% from 6.8% previously, as reported in the October issue of its Regional Economic Outlook.
That puts the Philippines as the sixth fastest-growing economy among the 10 Association of Southeast Asian Nations (ASEAN) members plus China, Hong Kong, Japan and South Korea, while domestic inflation is the fastest across the 14 markets covered.
“For the growth rate revision, the main reason is that inflation is higher than previously expected, and high inflation continued to erode the purchasing power of household and consumer confidence,” AMRO chief economist Hoe Ee Khor said via e-mail when sought for an explanation.
Myanmar is expected to post the fastest growth at 7.4%, followed by Cambodia (7.2%), Vietnam (6.9%), Laos (6.7%) and China (6.6%).
Philippine gross domestic product (GDP) posted a disappointing six percent expansion in the second quarter, fueling last semester’s climb to 6.3% against the government’s 7-8% target for the full year and the 6.6% actually clocked a year ago.
Meanwhile, inflation is projected to soar to 5.2% for 2018, a leap from the 3.2% average last year. Mr. Khor said rising costs of basic goods are eating into real GDP growth, and are expected to be the major hurdle to expansion.
September inflation churned a fresh nine-year high at 6.7% as food, transport and utility costs kept increasing amid supply bottlenecks and elevated oil prices. This placed the third-quarter average at roughly 6.3% while the nine-month pace hit five percent, well above the 2-4% target band for 2018.
“Private consumption has already shown some weakness and GDP growth decelerated to six percent in Q2 2018. Moreover, consumer confidence contracted in Q3 2018 for the first time since Q3 2016. Thus, as private consumption takes up around 70% in GDP, it led to the revision,” the AMRO official said.
The central bank’s Consumer Expectations Survey bared a net -7.1% reading in the third quarter, showing that more Filipinos were pessimistic towards economic prospects as they see commodity prices maintain their ascent. This is the first time since mid-2016 when the confidence score was in the negative, and is the lowest since the fourth quarter of 2015.
The AMRO’s revisions mirror similar downgrades by the World Bank and the International Monetary Fund, while the Asian Development Bank pencilled in a lower forecast of 6.4% the past week.
AMRO said that the downward-revised growth rate “still reflects the robust growth of the Philippine economy.”
Budget Secretary Benjamin E. Diokno last week conceded that the state’s growth goal is as good as missed, but could still manage to hit 6.7-6.9% as he expects economic activity to improve this semester.
In 2019, AMRO sees Philippine GDP growth slowing further to 6.4%. This is slower compared to the 6.7% given by the IMF and the World Bank.
Mr. Khor said his group was watching external risks “closely,” after it maintained the ASEAN+3 region forecast at 5.4% this year, “as most economies are on track to achieve their growth targets,” even as it shaved its 2019 projection to 5.1% from 5.2% initially.
Still, AMRO expects the Philippines to be resilient to external shocks, as its macroeconomic fundamentals remain sound.
“The macroeconomic fundamentals of the Philippines are generally sound, with no serious external imbalance and it has ample international reserves,” Mr. Khor said.
“Moreover, the latest data suggest that the current account deficit remained contained and the basic balance is still positive. Thus, the economy is expected to remain resilient against external shocks.” — Melissa Luz T. Lopez and Elijah Joseph C. Tubayan

WB readies $300-M loan to improve gov’t revenue, spending efficiency

THE WORLD BANK is preparing a $300-million loan for the government designed to improve revenue and spending efficiency.
According to World Bank documents made public on Friday, Country Director for the Philippines Mara K. Warwick approved the Improving Fiscal Management project on Oct. 1, and that the “review did authorize the preparation to continue.”
The project, to be implemented by the Department of Finance, is expected to receive World Bank board approval on Dec. 18.
The multilateral lender said that the loan seeks to provide assistance to increase revenue potential and economic efficiency of tax policy; improve budget planning and execution efficiency of spending; and strengthen financial risk management of public assets.
“This DPL (development policy loan) supports the government’s core objective to strengthen fiscal management by mobilizing higher domestic revenue, improving budget management, and reducing fiscal risks,” read the document.
The loan program includes technical assistance for amending and expanding tax instruments; taking regulatory measures against tax base erosion; improving central government budget reporting; strengthening the predictability of the budget; and implementing a policy for disaster risk financing, including setting up the necessary institutions and risk insurance instruments. — Elijah Joseph C. Tubayan

SNAP seeks ‘nat’l significance’ certification for new project

By Victor V. Saulon, Sub-editor
SN ABOITIZ POWER (SNAP) has submitted its latest hydroelectric project for inclusion in the Energy department’s list of certified energy projects of national significance (CEPNS), the government’s policy that aims to hasten the development of new power plants.
“We hope to enjoin and get their support and advocacy for this project,” said Joseph S. Yu, SNAP president and chief executive officer, in an interview last week.
He said the company’s application was submitted in late September, making it among the latest addition to the hundred of applications so far received by the Department of Energy (DoE) since the President signed Executive Order 30 in June 2017.
DoE, which issued the implementing rules and regulations in April 2018, has so far certified four projects. EO 30 intends to establish a simplified approval process and harmonize the relevant rules and regulations of all government agencies involved in the permitting process.
Mr. Yu said the company had complied with most of the requirements to be certified.
“Four of the five, I think, if I’m not mistaken,” he said, including the cost of the project and its technical complexity.
“At the very least, if it’s a project of national significance it should warrant more attention,” he said.
The project is composed of 20-megawatt (MW) Ollilicon and the 120-MW Alimit hydroelectric power plants. The technical studies for the third component, the 250-MW Alimit pumped storage, have been temporarily suspended due to market constraints.
SNAP was issued the renewable energy service contract for the project in 2014. The signed agreement brings the renewable energy company and Ifugao a step closer toward building the first hydropower facility in the province.
On Oct. 4, SNAP and the municipal governments of Aguinaldo, Lagawe and Mayoyao signed a framework agreement on the proposed Alimit hydropower complex in Ifugao province.
The agreement outlines the cooperation, collaboration and obligations between and among SNAP as project proponent and the municipalities as hosts during the development and operation phase of the project.
“It took us four years to achieve this milestone. What we are trying to build here are a partnership and a relationship with our stakeholders. We can achieve these. If we are all willing to commit, we have a better chance of succeeding,” Mr. Yu said in a statement during the weekend.
SNAP is a developer and operator of 100% renewable energy facilities. It is a joint venture of SN Power of Norway and Aboitiz Power Corp. It owns and operates the 380-MW Magat hydro on the border of Isabela and Ifugao; the 8.5-MW Maris hydro in Isabela; the 105-MW Ambuklao hydro in Benguet; and the 140-MW Binga hydro also in Benguet.

Ayala Land eyes fund-raising in early 2019

By Arra B. Francia, Reporter
AYALA LAND, Inc. (ALI) is planning to register another P50 billion under the Securities and Exchange Commission (SEC)’s shelf registration program, allowing the company to raise money from the issuance of fixed securities in the next three years.
“We’re considering, given that we’ve exhausted the first shelf of P50 billion. We’re looking at registering again either late this year or early next year. I guess a similar amount,” ALI Chief Finance Officer Augusto Cesar D. Bengzon told reporters after the listing ceremony for the company’s fixed rate bonds at Philippine Dealing and Exchange Corp. in Makati last Friday.
Mr. Bengzon said the debt securities program will be a combination of commercial papers, bonds, and other types of fixed income instruments.
“We should be filing probably early next year, because we have completed our funding requirements already for the year,” the ALI executive said.
The listed property giant last Friday used up the P50 billion under its initial shelf registration approved by the SEC in 2016. The company was able to raise P8 billion during the final tranche from the issuance of fixed rate bonds with an annual coupon rate of 7.0239%.
ALI also offered P10 billion in fixed rate bonds during the first half of the year, intended to fund the construction of several mall projects.
The company raised a total of P29 billion in fixed rate bonds from 2016 to 2017, and P3 billion worth of homestarter bonds in 2016.
The bond issuances this year partially financed the firm’s P110.8-billion capital expenditure, as ALI ramped up its project launches and construction to take advantage of the growing demand for residential units in the country.
Residential projects cornered bulk of ALI’s capex at 43% or P47.4 billion, while 17% or P18.7 has been allocated for mall projects. Some 12% or P14 billion will be for land acquisitions; P8.5 billion will be for office projects; P7 billion for hotels and resorts; while the remaining P8.8 billion will be for the development of existing estates.
With the accelerated spending, ALI has slated P125 billion worth of project launches this year, higher than the value of 28 projects it unveiled in 2017 at P88 billion.
ALI grew its net income attributable to the parent by 18% to P13.5 billion in the first six months of 2018, after revenues also went up by 18% to P80.4 billion. Reservation sales in the same period stood at P72 billion, indicating P12 billion worth of properties sold every month.
The higher capital spending is in line with ALI’s goal to reach a net income of P40 billion in 2020, with equal contributions from the residential and leasing segments.
Mr. Bengzon noted ALI would have to post a 17% compounded annual growth rate until 2020 to hit its target.