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Eastern Communications plans further expansion

TELECOMMUNICATIONS company and information and communications technology (ICT) solutions provider Eastern Telecommunications Philippines, Inc. (Eastern Communications) is further expanding its footprint and services across the country.

This follows Eastern Communications’ announcement that it is expanding its services to Roxas City, Capiz in the Visayas through its “Via Eastern” initiative, which provides enterprises with digital tools and solutions.

“We are proud to support Roxas City’s vision of becoming a center for business and technology through our ICT solutions by offering business-grade connectivity and digital tools that address the unique needs of the local business landscape,” Eastern Communications Vice-President and Head of Sales Michael S. Castañeda said in a statement on Tuesday.

“As Eastern Communications marks its presence in the area, it plans to extend its services to other cities across Capiz in the future,” the company said.

For the year, the telecommunications provider has allocated P1.15 billion for its capital expenditure (capex) budget to fund its expansion plans.

It said that most of its capex would be used to strengthen the company’s network while also growing its enterprise product offerings. 

Eastern Communications earlier said it was eyeing Iloilo, Davao, Bohol, Boracay, Cagayan de Oro, Bacolod, and Dumaguete as areas for possible sites and business hubs for its commitment to increase its overall footprint.

In 2023, Eastern Communications increased its fiber network to over 9,760 kilometers with a total of 180 nodes in 42 business cities nationwide. — Ashley Erika O. Jose

Dashlabs.ai automates lab diagnostics in clinics with AI

FREEPIK

By Aubrey Rose A. Inosante, Reporter

STARTUP Dashlabs.ai is automating the diagnostic lab process of local clinics using artificial intelligence (AI), resulting in quicker and more accurate results, its top official said.

“These laboratories and clinics used to take seven to 14 days to process 500 to 1,000 patients,” Weston Coleman Lim, chief executive officer (CEO) at Dashlabs.ai, told BusinessWorld in a videocall on Sept. 13.

“After one year of using Dashlabs to help them facilitate the same bulk operations, it now only takes them 24 to 48 hours,” he added.

The CEO said medical technologists benefit from the software because it does away with manual transcriptions, which is time-consuming and prone to errors.

“Due to the volume of patients, it’s easy to make a mistake,” he said. “You might miss a triglyceride reading or a cholesterol reading, and you think that’s normal.”

An abnormal result is displayed in red text using the Dashlabs.ai software.

The software includes tests like hematology, clinical chemistry, blood count, and uric acid. Radiologists can also remotely retrieve a patient’s X-ray and electrocardiogram results.

“The third party AI model tells us that if it’s abnormal, there’s a risk that a person has lung cancer or tuberculosis,” Mr. Lim said. “We help radiologists screen through X-rays to spot life-threatening diseases. Our role is to help doctors spot these issues.”

Dashlabs.ai, which was founded in 2020, works with more than 200 clinics nationwide, including those in Cebu, Davao, Metro Manila, and some parts of Luzon.

“We work with all kinds of clinics and healthcare partners from sophisticated ones that do work for major business process outsourcing companies for their annual physical exams,” he added.

“During the pandemic, that was the first time the country felt that we were held back by manual processes,” Mr. Lim said.

“We had the machines to handle the volume, but we could not manage information properly,” he added, noting that Dashlabs used to mainly serve airports for travelers and overseas Filipino workers.

Mr. Lim said they realized that there was a bottleneck in the annual physical and preemployment exams of many companies, so they entered this market.

Miguel Carlo S. Gemotra, cofounder and chief commercial officer at Dashlabs.ai, said the company plans to launch this year a free-tier plan for laboratories that are starting out.

Dashlabs.ai offers clinics a monthly base subscription plan at P2,500. This includes features such as patient registration and “cashier,” where payments are linked to a patient and patient records are saved in a database.

The software can also flag abnormal results and generate results in portable document format (PDF). The clinics can then e-mail patients and medical professionals their results. The software can also produce QR (quick response)-coded results.

Some optional add-ons are accounting and ledger, machine integration, and queueing modules, which cost P2,500 to P5,000.

Dashlabs.ai has served 10 million patients nationwide.

China’s best growth target may be none at all

ZHANG KAIYV-UNSPLASH

DISAPPOINTING ECONOMIC news is becoming a reliable indicator in China. Another round of monthly reports point to an economy that isn’t falling apart, but is far softer than officials are comfortable with. The worn — and still very accurate — conclusion is that more stimulus is required to meet targets laid out by President Xi Jinping. The story is starting to feel a bit stale.

Every now and then, however, there is something in the mix worthy of extra attention. That was the case when Xi appeared to water down his commitment to meeting the hallowed goal for growth this year, which is around 5%. The People’s Bank of China (PBoC) then took the rare step of issuing a statement accompanying poor figures on credit. These lines fed speculation that interest rates will be reduced soon, perhaps alongside new measures to crank up the expansion. This would be welcome, though the central bank has a record of extreme caution.

First, the latest batch of data, released on Saturday: Retail sales climbed less than anticipated, industrial production missed estimates, investment was soft, and unemployment inched higher. Monday postmortems called for greater attention from Beijing to address the dour picture, while simultaneously predicting that any response would be unequal to the task. Ocean liners like the Chinese economy, the world’s second largest, don’t just change course immediately.

What if the Communist Party’s growth target didn’t matter quite so much? As China’s expansion slowed from the heady clip of the late 1990s and early 2000s, when double-digit advances weren’t uncommon, the objective has become more challenging. The risk is that officials, especially in the provinces, pursue projects of doubtful value, but contribute to meeting the numbers. There has long been suspicion among investors that statistics are massaged to produce the right result. Top leaders, rarely inclined to set radically different goals from year to year, then get to make speeches lauding the performance.

The practice of setting targets is long-standing. Beijing sensibly suspended it in 2020 as the pandemic descended. Gross domestic product eked out a gain of about 2% that year. The 5% target does provide for a small amount of latitude above or below, though it would be a brave cadre who assumed they had a pass. Falling too far below would indicate failure, though coming in above would likely be career enhancing. The consensus among private sector economists is that undershooting is likely. Goldman Sachs Group, Inc., Morgan Stanley, and Citigroup, Inc. are among firms that think something in the high 4% range is realistic.

Toning down the emphasis on 5% would have to come from the very top. Xi appeared to oblige on Thursday, saying that officials should “strive to achieve” the goal. In July, the party’s senior decision-making body demanded the aspiration be “resolutely” met. There’s debate as to whether the linguistic tweak reflects a shift in the underlying approach, but the president doesn’t strike me as a person who wanders off script. Assuming Xi was signaling some tolerance, this is to be applauded. There’s an argument to go further and scrap targets altogether.

Also handy was the PBoC’s dangling of initiatives to put a floor under the expansion. “We will make maintaining price stability and pushing for the mild rebound in prices an important consideration for monetary policy,” the bank said late Friday. All monetary authorities seek stable prices; in China’s case, this means being more attuned to the risks of deflation. Consumer-price increases are hovering a bit above zero.

Beijing also took some modest steps toward addressing the challenges of an aging society and a contracting labor force. The retirement age for men was raised by three years to 63, while women will retire at 55 and 58, depending on their roles. This won’t move the needle on GDP any time soon. The changes will be phased in over more than a decade. But it is a recognition that China has a problem at both ends of the life spectrum: The country is producing fewer kids and folks are living longer. While notable and the first change in the retirement age since 1978, it’s fair to ask whether this step comes too late.

China waited a long time to bury the one-child policy and is now trying to lift the birthrate.

Sometimes edicts work too well. Beginning to recognize that arbitrary GDP targets aren’t sacrosanct is healthy. It has the added advantage of reflecting reality.

BLOOMBERG OPINION

From trash to treasure: Cura Furn makes upcycled furniture

CURA FURN

By Edg Adrian A. Eva

CAVITE CITY-BASED Cura Furn is using upcycled pieces to make furniture to help businesses reduce their carbon footprint.

“I hope there would be more businesses… that would really push upcycled pieces,” Guiliana B. Anastacio, owner and creative head of Cura Furn, said in a video interview.

In Western countries like the US, the threat of “fast furniture” — mass-produced, relatively inexpensive, and easily discarded furniture — is on the rise, the New York Times reported.

The threat of fast furniture, similar to “fast fashion,” could increase waste.

Americans generate at least 12 million tons of furniture waste yearly, a 450% increase from 1960, most of it ending up in landfills, according to a 2018 report from the US Environmental Protection Agency.

The Philippines lacks data on furniture waste, but the country generated 16.63 million metric tons of solid waste in 2020, state auditors said in a 2023 report on the country’s Solid Waste Management Program.

It is expected to reach 19.76 million metric tons by 2030 and 24.5 million metric tons by 2045 despite the enactment of the Ecological Solid Waste Management Act of 2000.

In her fieldwork, Ms. Anastacio has seen the large amount of furniture regularly thrown away by businesses and residents, including pieces that are still in good condition.

“Some people would rather dispose of it rather than keep it,” she said. “I was surprised to know how many furniture pieces are being disposed of every day, every week, and every month.”

Through Cura Furn, Ms. Anastacio is advancing her sustainability advocacy by transforming discarded furniture into new creations.

One of the company’s major projects involved upcycling hundreds of swivel chairs and stools bought from closed restaurants and business establishments.

They transformed these pieces and sold them all at a reasonable price.

“Imagine 300 or 400 units that could fill a six-wheeler truck,” Ms. Anastacio said in Filipino. “These could have ended up in landfills, but we found homes for them.”

Cura Furn also provides upcycling services, including restoration and redesign, for furniture with a sentimental value.

Their services cover dining sets, buffet tables, hatch cabinets, stools, chairs, sofa sets and more.

But some consumers are reluctant to buy upcycled furniture because they can buy inexpensive pieces made by multinational companies.

“We always say that, for now, upcycling furniture may be a bit more expensive, but it’s more than the price,” she said. “It’s giving life to these discarded pieces.”

Ms. Anastacio hopes that more Filipino homes and businesses would adopt upcycling practices, which would help lower the cost of upcycled products and make them more accessible to more consumers.

This would also encourage major furniture companies to shift away from mass production and adopt upcycling, she added.

BSP eyes changes to external auditor selection rules

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) is looking to issue a revised framework for the BSP-supervised financial institutions’ (BSFIs) selection of external auditors.

“The BSP considers the external auditing profession as a partner in promoting the safety and soundness of BSFIs,” it said in a draft circular posted on its website.

“In this light, the BSP is issuing the framework for the selection of external auditors of BSFIs pursuant to Section 58 of the Republic Act No. 8791, otherwise known as the ‘General Banking Law of 2000,’ as amended.”

The central bank defined an external auditor as an audit firm, partner or individual/sole practitioner in public practice. External auditors conduct audits and opinions rendered on audited financial statements, it added.

These auditors “contribute to enhancing corporate governance and empowering the public and investors to make informed financial decisions.”

The proposed circular revises the classification system for external auditors to include digital banks.

BSFIs must engage the services of an external auditor that is included in the list of selected external auditors, the BSP said.

“In this respect, a BSFI shall only appoint an external auditor belonging to the same category or from categories higher than the category of the BSFI concerned as provided in this section,” it added.

External auditors will be classified into three categories, namely: Group A (universal and commercial banks, foreign banks and branches or subsidiaries of foreign banks, digital banks and trust departments and trust corporations); Group B (thrift banks, non-bank financial institutions with quasi-banking license, virtual asset providers and credit card issuers/acquirers); and Group C (rural and cooperative banks, non-stock savings and loans associations, pawn shops and remittance and transfer companies, money changers, and foreign exchange dealers).

The classification will be based on the external auditors’ track record and the BSP’s assessment of their eligibility. External auditors must also adhere to the qualification and documentary requirements set by the BSP.

Inclusion in the list of selected external auditors for BSFIs will also be valid for a period of five years or possibly shorter depending on the BSP.

“The Monetary Board may require the BSFI to appoint an external auditor from higher categories as part of the BSP’s supervisory action on the BSFI; or at the expense of the BSFI, require the external auditor to undertake a specific review of a particular aspect of the BSFI’s operations/transactions,” it added.

The central bank may also “deploy its range of supervisory enforcement actions to promote adherence to the requirements outlined in this section and bring about timely corrective actions.”

“The BSP may downgrade the external auditor’s category, shorten the period of validity of inclusion, suspend, or delist the external auditor from the List of Selected External Auditors for BSFIs based on the result of its assessment of the quality of the AFS and compliance with the provisions of this section,” it added.

Under the draft rules, sections of the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions will also be amended.

These include the sections regarding the guidelines on the suspension or delisting of external auditors in the list of selected external auditors.

The draft rules also introduce a section on the disqualification and watch-listing of directors and officers.

In terms of audit engagement and reportorial requirements, the external auditor’s assessment of the continuing compliance with provisions on long association, including rotation of partner, shall also be made available to the BSP upon request. — Luisa Maria Jacinta C. Jocson

Meralco mobility arm partners with Uratex for EV adoption

MOVEM Electric, Inc., the sustainable mobility arm of Manila Electric Co. (Meralco), has partnered with foam and mattress maker Uratex Group of Companies to support the latter’s logistics operations.

Movem handed over to Uratex an electric light delivery truck and a 60-kilowatt direct current fast charger for its manufacturing plant in Plaridel, Bulacan, the company said in a statement on Tuesday.

This move is intended to support Uratex’s plan to boost its adoption and deployment of electric vehicles (EVs) with “a convenient and accessible charging solution to its drivers and operations,” the company said.

“Our vision of driving the Philippines’ journey towards an emissions-free transportation sector is only made possible through working with like-minded partners such as Uratex,” said Raymond B. Ravelo, president of Movem, and first vice-president and chief sustainability officer of Meralco.

“Together, we will continue to promote key initiatives in vehicle electrification, helping protect and preserve our planet, and ultimately powering good lives for all,” he added.

Uratex Managing Director Peachy C. Medina said that the company has been gradually converting its internal fleet to electrical as part of its commitment to achieve its zero emissions goal.

“Movem assisted us from our initial inquiry, choosing the right model fit for our purpose, delivery, installation, and trained our drivers and maintenance personnel,” she said.

Meralco said it has supported Uratex to meet the latter’s requirements to switch to renewable energy sources under the government’s Green Energy Option Program.

The power distributor established Movem last year as its new subsidiary that will focus on the development and deployment of various electric transportation solutions.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Auto Sales (August 2024)

PHILIPPINE automotive sales grew by an annual 6.6% in August, despite a decline in passenger car sales, according to an industry report. Read the full story.

Auto Sales (August 2024)

El Salvador muralists paint over traces of violence in San Salvador neighborhood

MEJICANOS, El Salvador — From the window of her tin-sided shop outside El Salvador’s capital San Salvador, Esmeralda Quintanilla watches artists get to work in her neighborhood on walls still pockmarked by bullet holes from the country’s civil war and gang conflict.

Armed with brushes, paint, and spray cans, muralists and graffiti artists have already covered the walls of several of the 40 five-story units in a housing complex in the Zacamil neighborhood of the Mejicanos district.

“With the murals, everything looks really nice,” said Ms. Quintanilla, a 55-year-old seamstress who has lived in the neighborhood nearly half her life.

“You start to see all this and it gives the place a different image. I feel really happy, proud.”

The dozen murals already completed include a Mesoamerican pyramid, pixelated depictions of the Virgin Mary, and works straight out of the artists’ imaginations.

The initiative in the once-violent neighborhood is led by a Salvadoran foundation that seeks to fill communities with art. Its aim in Zacamil is to create stories-high murals over the next two years on nearly every wall of the complex, which houses around 4,000 residents.

Zacamil got a break from decades of violence two years ago, when President Nayib Bukele launched a nationwide crackdown on gangs. The state of emergency — which human rights groups have said Mr. Bukele must end amid reports of abuses — has put almost 82,000 alleged gang members in prison.

Even with the murals improving the neighborhood’s appearance, chronic infrastructure issues remain, with garbage piled up in the streets and storm drains clogged. TV antennas, power cables, and clothes strewn out windows across clotheslines also dot the neighborhood.

Many Zacamil residents fled in 1989 when fighting between the Salvadoran army and the former leftist guerrilla group, Farabundo Marti National Liberation Front (FMLN) nearly destroyed the Mejicanos district.

When they returned, many found homes damaged by two earthquakes in 2001 or invaded by gang members.

“There are always problems, but this is (giving the neighborhood) a facelift,” said a 70-year-old resident who declined to give his name.

El Salvador’s bloody, 12-year civil war from late 1979 to January 1992 killed more than 75,000 people. — Reuters

How PSEi member stocks performed — September 17, 2024

Here’s a quick glance at how PSEi stocks fared on Tuesday, September 17, 2024.


Analysts: Marcos may have violated law with Duran Duran birthday bash

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/RYAN BALDEMOR

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. might have violated the law for accepting a birthday bash thrown by “old friends” on Sept. 13, and where 1980s British pop rock band Duran Duran  performed, according to political analysts.

The concert gift for the President’s 67th birthday celebration goes against the country’s Code of Conduct for public officials, they said, adding that the presidential palace should apologize and disclose the event’s sponsors.

Duran Duran charges as much as $1 million per booking, according to Celebrity Talent International’s website.

The palace did not immediately reply to a Viber message seeking comment.

At the weekend, the Presidential Communications Office said Mr. Marcos celebrated his birthday “with his signature compassion for the needy and the sick, and his deep appreciation for the farmers who feed the nation.”

“After a tiring day filled with official engagements, he attended a party thrown by his old friends at a hotel in Pasay, and to his surprise and appreciation, music was provided by Duran Duran,” it added.

Michael Henry Ll. Yusingco, a lawyer and a research fellow at the Ateneo Policy Center, said Section 7 of the Code of Conduct and Ethical Standards for Public Officials provides that public officials and employees “shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value from any person in the course of their official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of their office.”

Presidential Decree No. 46, a decree signed by no less than Mr. Marcos’s father and namesake, states that it is “punishable for any public official or employee, whether of the national or local governments, to receive directly or indirectly, and for private persons to give, or offer to give, any gift, present or other valuable thing on any occasion.”

“Even if presidential immunity takes precedence in this case, that argument must still be made,” Mr. Yusingco said in an e-mail. “At this point, the wrong that needs to be corrected goes beyond what is provided by law.”

“It’s all about doing the right thing in the context of our problems with patronage politics, graft and corruption, and bureaucratic inefficiencies.”

FATHER’S ‘EXTRAVAGANCE’
He said Filipinos should reject political leaders who conduct themselves in such an “irresponsible and tone-deaf manner.” “The administration must apologize to the public for organizing or allowing such a lavish event to be organized.”

Philip Arnold P. Tuaño, dean of the Ateneo de Manila University School of Government, noted that while it’s not clear whether the President was aware about the concert before entering the Pasay hotel, “it would have been best if he had already informed his friends and associates that the holding of extensive entertainment events is out of place in his administration.”

Doing so would show that he promotes the code, which calls on public officials to have ordinary lifestyles, he said in an e-mail.

“By constantly reminding his official family in government and also their associates of the need for simplicity of lifestyle, the President can foster a culture of prudence, modesty and accountability,” he said.

“This would help avoid even the appearance of impropriety, reinforcing public trust and ensuring that the administration’s actions are aligned with the values of transparency and good governance,” he added.

Terry L. Ridon, a lawyer and former party-list lawmaker, the presidential palace should not downplay the concert as merely a gift from the President’s friends.

“Malacañang should disclose the identities of the event’s private sponsors and a full accounting of the expenses should be made available so the public can make a clear determination of whether the prohibition against receiving gifts was violated,” he said in an e-mail.

He said the private sponsors should have had “simple political sense.” “The fallout from the event had clearly subjected the President to embarrassment and tarnished his political capital amid intense national political intramurals with his former election allies,” he added.

Anthony Lawrence A. Borja, who teaches political science at De La Salle University, said impeachment is unlikely to gain traction at the House of Representatives.

“As for the general public, the opposition would deem it as reminiscent of Marcos Sr.’s extravagance,” he said in a Facebook Messenger chat.

A pro-Duterte vlogger reported on the Duran Duran gig for Mr. Marcos, accusing the President of bringing the British band into the country using public funds.

Mr. Borja said the President’s supporters “would simply swallow the palace excuse and deem it as a private manifestation of Filipinos’ love for parties and grand celebrations.”

A Social Weather Stations poll released last week showed that the rating of the Marcos government rose to a “good” +40 in June from a “moderate” +29 in March.

The June 23-July 1 poll showed that 62% of adult Filipinos were satisfied, 22% were dissatisfied, and 15% were neutral with the government’s performance.

Peso extends climb on bets of big Fed cut

BW FILE PHOTO

THE PESO strengthened to a fresh six-month high against the dollar on Tuesday amid growing bets of a 50-basis-point (bp) rate cut by the US Federal Reserve this week.

The local unit closed at P55.695 per dollar on Tuesday, appreciating by 19.3 centavos from its P55.888 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s best close in six months or since its P55.58-a-dollar finish on March 18.

The peso opened Tuesday’s session stronger than Monday’s close at P55.78 against the dollar. Its weakest showing was at P55.84, while its intraday best was at P55.655 versus the greenback.

Dollars exchanged inched up to $1.26 billion on Tuesday from $1.2 billion on Monday.

“The dollar-peso closed lower mainly because of increasing bets for a 50-bp rate cut at the Fed’s meeting,” a trader said by phone.

Expectations of a larger Fed cut led to a weaker dollar on Tuesday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader said the peso could trade sideways ahead of the Fed’s policy decision.

The trader sees the peso moving between P55.50 and P56 per dollar on Wednesday, while Mr. Ricafort expects it to range from P55.60 to P55.80.

The dollar traded near its lowest levels of the year on Tuesday, on the eve of the expected start to a US easing cycle that markets are betting may begin with an outsized rate cut, Reuters reported.

The yen eased back to 140.58 after a jaunt to the stronger side of 140 during holiday thinned trade on Monday.

It has fallen the most this year so has the most room to rally on a dovish turn from the US central bank. A sustained break of 140.00 would open the way to a low from last January at 127.215.

Fed funds futures have rallied to push the chance of a 50-bp rate cut to 69%, against 30% a week ago. The odds have narrowed sharply after media reports revived the prospect of a more aggressive easing.

Meanwhile, the Bank of Japan is expected to keep policy steady on Friday but signal that further interest rate hikes are coming, perhaps turning the next meeting in October into a live one.

The US dollar index held at 100.6, not far from its 2024 low made last month at 100.51. — AMCS with Reuters

Armscor launches firearm line for PHL law enforcers

ARMSCOR GLOBAL DEFENSE, INC. on Tuesday launched a line of firearms that are tailor fitted to Filipino law enforcers’ needs. The biggest defense manufacturer in the Philippines and one of the largest in Asia said unit RIA Defense worked with science and technology experts and former military and police personnel for the design and development of the guns. — CHLOE MARI A. HUFANA

By Chloe Mari A. Hufana, Reporter

ARMSCOR GLOBAL DEFENSE, Inc. (AGDI) on Tuesday announced the launch of Rock Island Armory (RIA) Defense, a homegrown Filipino company that is “set to change the landscape in the local firearms manufacturing industry.”

Armscor, the biggest defense manufacturer in the Philippines and one of the largest in Asia, said RIA Defense worked with science and technology experts and sought the expertise of seasoned former military and police personnel for the design and development of products that are tailor fitted to Filipino law enforcers.

“[RIA] Defense is the only locally designed and manufactured firearms company that has been consulting with ex-law enforcement and military personnel and industry experts to provide our country’s operators with a gun that is suited for their environment,” Armscor Assistant Vice-President (AVP) Daniel A. Tuason told a news briefing in Marikina City.

In a separate statement, AGDI said foreign manufactured guns do not consider the Filipino physique, tropical environment, varying threat levels, budget constraints and foreign trade restrictions.

“Most of the firearms and ammunition manufacturers from abroad develop their weapons with their law enforcement and military counterparts, which for the most part means that they’re trying to solve the problems of the West,” Mr. Tuason said.

The gun company launched the RD4P Cobra, a short-stroke gas piston rifle that can shoot after being submerged in water, and the RD1 multi-caliber pistol platform that can fire 9mm rounds or 22TCM armor-piercing rounds through a conversion kit. The firearm, which can penetrate body armor with protection level III, allows the user to deal with higher threat levels.

Armscor said they developed the guns for three years.

The rifle will be sold exclusively to local law enforcement authorities, while the pistol will be available for commercial sale.

Armscor Executive Vice-President and Chief Operating Officer Felino A. Neri IV said 70-80% of their guns are exported to 60 different countries, with the United States accounting for top sales. About 15% come from civilian purchases and the rest is from the Philippine government.

Armscor Chairman, President and Chief Executive Officer Martin O. Tuason cited the importance of the country’s Self Reliance Defense Posture bill, which has been ratified by both Houses of Congress and is now awaiting the President’s signature.

The priority bill seeks to develop the country’s defense industry by boosting the local production of defense supplies like materiel and bullets.

“This law is going to give Filipino companies or joint ventures with other foreign companies here in the Philippines opportunities to create jobs for Filipinos,” he said.

He added that they employ about 2,000 Filipino workers at their Marikina facility alone.  With the new range of firearms, they aim to provide more jobs to Filipinos, he added.

Mr. Neri cited the Marawi siege by Islamic terrorists in 2017, noting that the government lacked the proper ammunition at the time.  The siege lasted for five months, which depleted the government’s ammunition supply.

The homegrown gun company said it delivered 3,000 firearms in five days and 30,000 rounds of ammunition for government forces, the only private manufacturer that was able to supply the military at a critical time.

“When something happened, we didn’t have ammunition. We were waiting for a procurement or a bid that the government [was securing], by the time they were able to send the ammunition here, the war was over,” he told reporters on the sidelines of the briefing.

Armscor’s AVP noted that once the Self Reliance Defense Posture bill is signed into law, the Philippines could stockpile ammunition to be self-sufficient in case war erupts.

“If we go to war with any country at this point, what do we have? We can’t wait for an international company to send us ammunition. It has to come from us,” he added.

“With RIA Defense, we want to demonstrate that a Filipino company can manufacture world-class products designed by the Filipino, which can help strengthen the defense capabilities of the Philippines and also build its reputation as a globally competitive defense manufacturer,” he said in a separate statement.