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You are what you eat | Going green: the benefits of a plant-based diet

Plants vs. lipids. A look at ketogenic and vegan diets.

WORDS ANNA M. ADORA

Based on the data released by the Philippine Statistics Authority, seven out of 10 of the leading causes of death in our country are related to the diet and lifestyle choices we make. This data is consistent with the leading causes of death in other countries, which may signify a new phase of epidemiologic transition medical anthropologists call the age of inactivity and obesity. Rather than looking for a magic pill or trying fad diets, perhaps we should address the root cause and recognize the solution which has been right under our noses: a whole-food, plant-based diet.

Ischemic heart disease is the leading cause of death worldwide and it is caused by cholesterol plaques that accumulate within our arteries, a process called atherosclerosis. This is an insidious process, occurring over decades, as the cholesterol plaque gradually reduces the space that blood can flow within the vessel. The restriction of the blood supply to the heart muscles may cause chest pain especially during moments of exertion, and much worse, if a plaque ruptures a clot can form within the artery causing a heart attack.

This is the reason cholesterol-lowering drugs (mostly statins) are among the best-selling drugs. However, according to a study published in Comparative Biochemistry and Physiology, a diet consisting of leafy vegetables, fruits and nuts reduced LDL (low-density lipoprotein) cholesterol by more than 30%, which is the same effect when taking some statins, and without acquiring the side effects of taking the said medication.

A diet high in fiber (whole grains, legumes, fruits, vegetables, nuts and flaxseed) lowers our LDL and triglyceride levels and a diet high in saturated fat and cholesterol which are both found in meat, poultry, fish, eggs and dairy, have the opposite effect. Eating unhealthy food not only causes an anatomic obstruction in our arteries, but also affects their movement. Inflamed arteries are stiffer and are unable to relax normally. Meat can contain endotoxins which can cause inflammation, regardless of how the meat was prepared.

In a recent systematic literature review, evidence showed that a meat-based or Western-like diet is linked to higher inflammation and a vegetable-and-fruit-based diet is linked to lower inflammation. In another study where 604 people were asked to follow a whole-food, plant-based diet, their C reactive protein (CRP), a marker for inflammation and cardiovascular disease risk, lowered significantly in three weeks. Population studies of communities with low rates of heart disease are all centered on a plant-based diet high in grains and vegetables.

A plant-based diet can also reduce the risk for type 2 diabetes, another disease entity with an overwhelming health impact. In an Adventist population study, the odds of having diabetes was highest in non-vegetarians and lowest in vegans, even after being adjusted for body weight. In a meta-analysis released just last year, processed meat increased the risk for diabetes by 37% per each daily serving, followed by sugar-sweetened beverages (21%) and red meat (17%) while whole grains decreased the risk for diabetes by 13%.

A large-scale case-cohort study of diabetes study published in Diabetes Care found that replacing carbohydrates with protein increased the risk for type 2 diabetes, with the link between protein and diabetes exclusive to protein coming from animals. People who ate the highest amount of protein (109 g/day) had a 22% increase risk for developing diabetes. There is much more evidence linking meat intake to type 2 diabetes mellitus which is why it is not surprising that in the latest guidelines for the management of diabetes, a plant-based diet is now being recommended by the American Association of Clinical Endocrinologists.

If reduction of risk for heart disease and diabetes is not convincing enough, a plant-based diet can also reduce the risk of developing some types of cancer. In 2015, the International Agency for Research on Cancer (IARC) gave processed meat a Group 1 classification meaning that there is sufficient evidence to state that processed meat definitely causes cancer. Other carcinogens that belong to this group are smoking and alcohol. Red meat has been given a group 2A classification, meaning it probably causes cancer.

Processed meat is defined as any meat that has been cured, smoked, salted, fermented or has added preservatives. This includes food such as chicken nuggets, cold cuts, bacon, hot dogs, sausages, pepperoni and ham. The chemicals that are contained in these types of food have been proven to cause cancer, chemicals such as nitrate salts, heme iron, heterocyclic amines, polyaromatic hydrocarbons and N-glycolylneuraminic acid to name a few.

On the other end of the spectrum, a study in the Journal of the American College of Nutrition has stated that fruits and vegetables reduce the risk of esophageal cancer by 64%-67%, lung cancer by 26%-29%, colorectal cancer by 18%, and breast cancer by 11%. For these reasons, a plant-based diet is also recommended by another major health organization, the American Institute for Cancer Research.

But what about protein?
A popular misconception is that people on plant-based diets don’t get enough protein, when in fact, plants contain protein (all kinds of beans, broccoli, mushrooms, nuts, seeds, oats, spinach, avocado, just to name a few) and the healthier type of protein too.

A study published in JAMA Internal Medicine in 2016, which included 131,342 participants, plant protein was associated with a lower all-cause mortality, high animal protein intake was associated with a higher cardiovascular mortality and replacement of animal protein with plant protein can reduce mortality. Instead of worrying about the lack of protein, one should worry about excess protein, especially when it comes from an animal source.

Excess protein is either metabolized by the kidneys, liver, or stored as excess fat. Excess animal protein have been associated with obesity, diabetes, heart disease, high blood pressure, high cholesterol, kidney stones, gout, cancer and premature death.

Many people who decide to avoid meat and dairy make the mistake of consuming processed or unhealthy food that are “accidentally vegan”—potato chips, Oreos, vegetarian cup noodles. An unhealthy plant-based pattern may still increase the risk for the aforementioned illnesses. All of the studies mentioned have been based on a whole-food (“unprocessed”), plant-based diet.

Aside from affecting one’s physical health, a plant-based diet has a large impact on animals and our environment. Animals are bombarded with chemicals and antibiotics, live in the worst conditions and slaughtered as children. The animal agriculture industry is the largest contributor to greenhouse gas emissions. The food, land and water that is used to produce the meat and dairy that we consume leads to deforestation, destruction of wildlife and contributes to world hunger. By eating plant-based we show more compassion to ourselves, animals, and the world we live in.

Anna M. Adora is a vegan cardiologist.

Poll puts May price hike past target

By Melissa Luz T. Lopez
Senior Reporter
HIGHER OIL and food prices drove inflation even faster in May from a year ago to a fresh five-year high, analysts said in a BusinessWorld poll, even as the Finance department said in a bulletin that month-on-month tracking may signal slowing momentum ahead.
A poll among 10 economists yielded a median estimate of 4.9%, which if realized will be the highest inflation rate in at least five years.
The median falls near the midpoint of the 4.6-5.4% range given last week by the Bangko Sentral ng Pilipinas (BSP) and matches the estimate given by the Department of Finance for May.
It also means that inflation will pick up for the fifth straight month from April’s 4.5%, surging from 2.9% in May 2017.
Such a pace in May will push year-to-date inflation further past the ceiling of the central bank’s 2-4% full-year target range that had already been pierced in April.
Inflation Rate Estimates May
The Philippine Statistics Authority will release official inflation data tomorrow.
The Finance department said in its bulletin that “inflationary momentum, however, appears to be receding” as the month-on-month change in prices of widely used goods slowed to 0.32% in May from 0.52% in April.
“Inflation may appear to be rising year-on-year but it is actually decelerating as month-on-month inflation continues to drop,” the bulletin read.
Sought for comment, Michael L. Ricafort, economist at Rizal Commercial Banking Corp., said via e-mail: “Inflation has increased since the start of 2018 due to higher global crude oil prices, higher US dollar/peso exchange rate among 12-year highs, higher taxes under the TRAIN (Tax Reform for Acceleration and Inclusion) law and resulting second-round inflation effects in terms of upward adjustments in the prices of affected goods and services.”
Low stocks drove rice prices higher, economists said, adding to price upticks attributed to new taxes on cigarettes and liquor.
Alvin P. Ang, economics professor at the Ateneo de Manila University, noted that seasonal price adjustments ahead of the start of classes likely stoked inflation pressures.
Retail pump prices shot up last month to reflect world crude prices, which hit their highest levels in over three years, while the peso continued its depreciation to P52.70 versus the greenback in May.
Several lawmakers want to suspend implementation of the TRAIN law in a bid to temper inflation, especially the provision that raised the excise tax on fuel products. Next year will see mid-term elections for both chambers of Congress.
Analysts said suspending tax reform implementation would be a bad idea as it would derail the government’s infrastructure spending programs and, consequently, economic growth.
“[T]his may not address a probable runaway inflation level moving forward. There are other inefficiencies in the local economy that are putting upward pressure on price levels,” said Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines.
The Finance department attributed the spike in petroleum prices to rising global oil prices and the peso’s depreciation, rather than higher excise taxes. It added that “[a] meaningful drop in prices is attainable if the food supply problem is solved because food accounts for 35.5% of the consumer basket,” as it pushed a bill in Congress to shift to rice tariffs from the current quota system for imports as a way to temper price increases of the staple.
With inflation expected to rise further, more analysts are pricing in another rate hike from the central bank by the third quarter.
“The continual increase in inflation, I think, will likely lead to an increase in inflation expectations of consumers and firms. This buildup in inflation expectations, I believe, will likely increase future inflation, and therefore raises the probability of another policy rate hike by the BSP this year,” Security Bank Corp. economist Angelo B. Taningco said, noting that he expects the decision by August.
Another rate hike may be necessary to “manage the persistent weakness of the country’s currency,” added Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines.
The BSP announced a 25-basis-point rate hike on May 10, the first increase in nearly four years.
The central bank has conceded to missing its 2-4% inflation target for 2018, as latest estimates showed that the full-year pace could average 4.6%.
Emmanuel J. Lopez, chairman of the University of Santo Tomas Department of Economics, said however: “I don’t see the immediate need to temper price adjustments because local economic conditions are not the main culprit for the current acceleration in price and inflation.”

BIR seeks to speed up transactions

THE BUREAU of Internal Revenue (BIR) has taken more steps to speed up taxpayer transactions.
Revenue Memorandum Circular (RMC) 43-2018, signed by BIR Commissioner Caesar R. Dulay on May 18, said the bureau has created a “fast lane” for one-time, simple transactions.
“In line with the BIR’s efforts to promote the delivery of quality service to all stakeholders, all One-Time Transaction Teams are hereby directed to create a fast lane that will cater to individuals or corporations filing capital gains tax or donor’s tax returns with only one deed of sale/exchange/donation involving one to three properties,” the circular read.
The circular added that transactions will be processed and electronic certificates authorizing registration released “within three working days upon submission of complete documentary requirements,” including the certificate which authorized agent banks furnish taxpayers after payment.
Sought for comment, Eleanor L. Roque of P&A Grant Thornton’s Tax Advisory & Compliance said in a mobile phone message that “any improvement in the process to fast-track transactions is a welcome development.”
At the same time, she said it remains to be seen whether regulations actually translate into practice.
Ms. Roque added that the envisioned fast lane could cover more transactions in the future. “After we see the results of the new RMC, then maybe we can push for more transactions to be included such as request for confirmation rulings and even application for registration,” she said.
Meanwhile, Revenue Memorandum Order No. 25-2018, signed by Mr. Dulay on May 28, split up the Inspection and Acceptance Committee into two independent teams that inspect and verify, respectively, delivery of goods and services, infrastructure projects and consulting services.
Covered are items like: vehicles; buildings and related facilities; consulting and other services rendered; information technology (IT) software licenses/contracts/certificates, hardware/equipment, reports, manuals, systems documentation, application/system software and IT-related services; as well as non-IT equipment, spare parts and construction materials, among others.
“There shall be an inspection sub-committee for far-flung/remote areas, which shall cover island district offices and district offices requiring travel by land of 200 kilometers distance or at least four hours continuous travel from the Regional Offices,” the new order added.
BIR said the new order was “in line with the directive of the present government to streamline the processes and documentary requirements.” — E. J. C. Tubayan

FINTQ introducing new digital agricultural value chain platform

FINTQnologies Corp. (FINTQ) is introducing a new platform to help farmers and fisherfolk get easier access to affordable financing.
In a statement, the financial technology (fintech) arm of PLDT Group’s Voyager Innovations, Inc. said the Accelerated Growth and Rural Inclusion (AGRI) is an end-to-end digital agricultural value chain platform that connects producers to consumers for optimized productivity. This is part of FINTQ’s KasamaKA grassroots advocacy program.
The AGRI platform includes access to financial services through FINTQ’s digital lending platform Lendr, digital commerce through a marketplace as well as logistics infrastructure management in partnership with Metropac Movers.
FINTQ intends to initially launch the AGRI platform in eight pilot areas, mostly in Mindanao.
FINTQ Managing Director Angelito M. Villanueva said the platform will help address the challenge of providing financing in the agriculture sector.
“Farmers and fisherfolk are still deemed as high risk borrowers of banks, but with the intervention of the AGRI platform, which covers end-to-end of the agri-value chain, this will level the playing field,” Mr. Villanueva was quoted as saying in a statement. “AGRI will serve as an alternative channel for agriculture workers to source funds from Lendr partner banks and financial institutions.”
Aside from providing alternative credit options, the platform will also help the agricultural workers earn higher income by removing the unnecessary middlemen with direct farm to business and consumer approach, reducing costs to the end consumers as well.
The AGRI program and platform is being introduced nationwide in collaboration with the Bangko Sentral ng Pilipinas (BSP), Department of Agriculture, various local government unit associations and other industry partners.
For his part, BSP Governor Nestor A. Espenilla, Jr. said that innovations enabled by digital technology and value chain approach makes agri-financing more viable.
“[It will also] unlock new opportunities for rural banks and cooperatives to deliver a whole range of financial services catering to the unique needs of farmers and their communities,” Mr. Espenilla added.
Voyager Innovations is PLDT, Inc.’s digital innovations unit. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Karl Angelo N. Vidal

Global trade spat puts factories, recovery at risk

LONDON/BEIJING — Factory growth in major manufacturing hubs showed signs of cooling last month as companies braced for potential damage from rising global trade tensions while also grappling with accelerating inflation and a strong dollar.
US President Donald Trump’s moves to slap tariffs on some of the country’s most important trading partners have rattled financial markets, and many are now fretting about the potential threat to what is now mostly synchronized world growth.
Stocks rose and bond yields fell on Friday last week as investors welcomed an apparent end to a political crisis in Italy but prospects for a full-blown trade war put a dampener on gains.
“The uncertainty about future trade and Trump’s contempt for international rules can deal a significant blow to business confidence especially in trade-oriented nations,” said Holger Schmieding, chief economist at Berenberg.
That danger was made all the more real on Thursday when the United States and its key allies announced tit-for-tat tariffs.
A US trade delegation was in Beijing last weekend for a third round of talks between the two countries in the last month after Washington said it would slap tariffs on $50 billion of Chinese imports.
The risk is that a full-blown Sino-US trade war will ripple through global supply chains, hurting economies from Europe to Mexico through to Australia and Japan.
EUROPE LOSING MOMENTUM
Euro zone factory growth stayed strong but slowed to a 15-month low in May, hampered by extra holidays, and forward-looking indicators suggest it will at best remain subdued in coming months, a business survey showed.
Higher prices appear to have hurt demand and IHS Markit’s May final manufacturing Purchasing Managers’ Index for the bloc slipped for a fifth month, falling to a 15-month low of 55.5 from April’s 56.2, in line with a flash reading.
Anything over 50 indicates growth.
German factory growth was also at a 15-month low and French manufacturing activity picked up less than expected, highlighting a more uncertain trade outlook.
British manufacturers bucked the global trend in May and picked up speed for the first time in six months. But the slight improvement masked underlying weakness among the country’s factories.
Chinese manufacturing, meanwhile, has grown steadily so far this year. The Caixin/Markit Manufacturing PMI was unchanged at 51.1 in May, although new export orders fell for a second straight month.
“Forthcoming trade tensions could put pressure on trade and related supply chain activities… We believe that investment decisions in potentially affected industries have been delayed,” ING China economist Iris Pang said in a note.
The Markit/Nikkei Japan Manufacturing PMI fell to a seven-month low of 52.8 for May, with domestic business growth slowing and only a modest pick up seen in export orders.
Corporate capital expenditure in Japan rose at a slower pace in the first quarter compared with the previous one, a separate report showed. Further stress on exports is likely to restrain any rebound from an economic contraction at the start of the year.
South Korea, another major export hub, reported strong shipment growth in May. But a factory survey found activity contracted for a third straight month as new orders continued to decline, prompting companies to cut staff at the fastest pace in almost a decade.
BUT RATES STILL SET TO RISE
Higher oil prices and a rising dollar have hammered currencies of late, with trade friction and heightened geopolitical uncertainties around North Korea, Iran and Italy adding to pressure.
Economies are seeing inflation flare up while currencies have taken a hit, raising expectations for interest rate hikes.
The European Central Bank (ECB) will finish its stimulus program by the end of 2018, according to a Reuters poll of economists last month, although nearly half of those surveyed said it was not in control of inflation, which had remained stubbornly below target.
But prices in the bloc rose a faster-than-expected 1.9% last month from a year earlier, official data showed on Thursday, pretty much spot on the ECB’s target.
The Bank of England, facing inflation above its target, is expected to raise interest rates in August.
Indonesia’s central bank has already raised rates this year and Indian policy makers might tighten policy soon.
India on Thursday reported its quickest pace of economic growth in nearly two years in January-March and the Reserve Bank of India is expected to hike rates in August — a dramatic turnaround from just a month ago, when a survey predicted no increase until the second half of 2019. — Reuters

Online stock market accounts jump in 2017

THE Philippine Stock Exchange, Inc. (PSE) saw a surge in the number of online stock market accounts last year, hitting 11% of the total trading value for the year, according to the Stock Market Investor Profile Report for 2017.
In a statement, the PSE said online accounts in the stock market grew by 28.5% to 388,864 in 2017, versus the 302,516 accounts recorded in the year before. Value turnover from these accounts stood at P372.06 billion, 12.9% higher than in 2016.
“Clearly, more and more investors now prefer to trade and invest in the stock market through online trading systems. We hope to further grow the number of stock brokerage firms that offer online trading services so that the stock market becomes even more accessible to everyone,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.
More than half of these online retail investors were aged 30 to 44, consistent with the trend seen in previous years. Investors aged 18 to 29 accounted for 22.5%, while 45- to 59-year-olds comprised 17.9%. Those aged 60 and above provided the remaining 5.9% for total online accounts.
In terms of annual income, over 50% of the online investors earned less than P500,000. Less than a third earned between P500,000 to P1 million a year, while 15.8% made more than P1 million per year.
Online investors coming from Metro Manila made up 52.4% of the total online accounts, 29% came from Luzon. Only 8.5% and 5.7% came from Visayas and Mindanao, respectively.
“Admittedly, we have more ground to cover. We hope that through our continued market education initiatives as well as the marketing efforts of our accredited stockbrokers, we will be able to encourage more individuals, based here or abroad, to invest in our stock market,” Mr. Monzon said.
Meanwhile, the total number of stock market accounts for retail investors went up by 12.7% to 841,532, accounting for 96.9% of the total accounts in the exchange. Institutional investors provided the remaining 3.1% or 27,278, which went up 2.6%.
Only 1.7% of the total accounts were owned by foreign investors, while 98.3% were owned by locals.
Retail investors from Luzon grew to 20.8% from 16.4% of total accounts last year. There were also more investors seen in Visayas and Mindanao, with the former growing to 8.2% of total accounts versus 6.2% in 2016. Mindanao accounted for 4.5%, against 2.9% the year before.
“I attribute the growth in retail investors outside Metro Manila to the streamlined account opening processes of online stockbrokerage firms. I also think that the broker expo feature of our very successful road shows in Davao and Iloilo last year helped bump up the numbers because road show attendees were able to open stock market accounts with stockbrokerage firms at the event venue,” Mr. Monzon said.
Metro Manila still had the largest share of retail investors at 64.2%, although slipping from 70.6% in 2016. — Arra B. Francia

Treasury bill rates to edge lower

YIELDS on Treasury bills (T-bills) on offer today are likely to move sideways as investors are expected to park their funds in the fresh retail Treasury bonds (RTB) awarded last week amid additional liquidity.
The Bureau of the Treasury (BTr) is offering P15 billion worth of T-bills at its auction today. Broken down, the Treasury will raise P5 billion and P4 billion via three- and six-month papers, respectively, and another P6 billion from the one-year debt papers.
A trader said on Friday that yields on the securities on offer will likely “move sideways across tenors” by around five basis points.
“The yields will likely move sideways due to the latest issuance of retail Treasury bonds,” the first trader explained. “Other clients may possibly park their funds into the RTBs which relatively carry a higher rate.”
Meanwhile, another trader said the T-bills to be auctioned off today will “fetch lower yields by around 10 basis points, still due to demand.”
Last Monday, the BTr fully awarded the 91-, 182- and 364-day papers, with total tenders reaching P37.9 billion, more than double the P15 billion the government intended to raise.
The average rate on the 91-day T-bills declined by 13.7 basis points to 3.3% from the 3.437% logged in the previous auction, while the yield on the 182-day papers also dropped by 17.9 basis points to 3.7%. The 364-day securities also fetched a lower average rate of 4.198% versus the 4.297% in the previous auction.
At the secondary market on Friday, the three- and six-month bills were quoted at 3.7607% and 3.637% respectively, while the one-year debt papers fetched 4.1179%.
On the other hand, the Treasury also raised P66 billion in three-year retail bonds last Wednesday against total tenders of P92.8 billion from banks and other financial institutions, with a 4.875% coupon.
The RTBs are now being offered to the general investing public through banks for minimum denominations of P5,000 until June 8. The bonds, which will be issued on June 13, will mature in 2021.
Due to the RTB offering, the Treasury opted to cancel the scheduled Tuesday auction for the seven-year Treasury bonds.
The first trader said the additional money supply in the system may spell additional demand for the T-bills on offer today and result in an oversubscription by “1.5 times,” which would consequently drive yields downward.
The central bank’s reserve requirement ratio cut took effect last Friday, bringing down the rate imposed on universal and commercial banks by a percentage point to 18%.
The move is expected to unleash at least P90 billion worth of idle funds into the system.
The additional liquidity was also supported by the P130 billion worth of maturities of previously issued government bonds redeemed last May 23.
The Treasury is holding two auctions per week this quarter — one for T-bills and another for Treasury bonds — to reflect increased borrowing requirements.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product. — K.A.N. Vidal

Guimaras to set up ‘mango school’

By Louine Hope U. Conserva, Correspondent
GUIMARAS — This island province off the southern part of Iloilo has the reputation for growing the sweetest mangoes in the country, but its production level has remained low.
Gov. Samuel T. Gumarin said while the local government and stakeholders have been working to develop the industry, technical capability and financial capacity have been limited.
As such, Mr. Gumarin said the plan of Senator Cynthia A. Villar, chair of the Senate committee on agriculture and food, to set up a school on the island focusing on mango production is a most welcome development.
“It is an innovation that we would like to have because for years we have strived to improve the mango industry in the province,” he said during the opening of the 20th National Mango Congress on May 30, hosted by Guimaras Province.
Ms. Villar cited during the event that while Guimaras has 645,000 hectares of agricultural land, only about 10% is planted with about 300,000 mangoes trees.
“That means each hectare is not yet planted with one (mango) tree. So there are still a lot of opportunities here,” she said, noting further that the top mango-producing regions are all in Mindanao.
MANGO SCHOOL
The senator committed to set up a “mango school” on the island and bring in representatives from the Agricultural Training Institute to teach best practices.
“It will be the first mango school in the country,” she said, “We need to teach the ordinary residents of Guimaras on how to plant and grow the trees.”
The Technical Education and Skills Development Authority (TESDA) will be tapped to fund both instructors and students, she added.
Ms. Villar also urged the province to develop agri-tourism as well as agri-schools, for both farmers and fisherfolk.
“Based on statistics, a typical farmer earns P4,500 a month, which is below the poverty line. That is why we also encourage agri-farms to become a farm school and get the support of TESDA. Like if you have 25 students, TESDA will pay you P100,000 monthly,” she said.

Bank Mandiri in talks to enter Philippine market

By Melissa Luz T. Lopez, Senior Reporter

This photo taken on September 18, 2010 shows the office building of Indonesia’s state owned Bank Mandiri in Jakarta. — AFP

AN INDONESIAN BANK is currently in talks with the Philippine government as they look to open a branch here, which comes ahead of a bilateral deal between the central banks of these two countries.
Officials from the state-run PR Bank Mandiri Tbk have been in talks with the Department of Finance and the Bangko Sentral ng Pilipinas (BSP) as they explore the possibility of setting up shop in Manila, a senior official said.
However, no formal application has been filed with the BSP as of this writing.
Bank Mandiri is the largest bank in Indonesia in terms of assets. The Indonesian lender has been quoted in news reports to have said it is expanding its presence in Singapore, Malaysia and Hong Kong ahead of a long-term goal to be one of the largest banks in Asia by 2020.
If realized, this would be the first Indonesian lender to set up operations in the Philippines, which comes alongside discussions between the BSP and Indonesian regulator Otoritas Jasa Keuangan (OJK) that will facilitate a smoother system for foreign banks to enter the other country.
Formal discussions between these nations started early 2017, which come ahead of the ASEAN Banking Integration Framework (ABIF) eyed in full swing by 2020.
It also springs from Republic Act 10641 signed by then-President Benigno S.C. Aquino III, which lifted the limit that allowed only 10 foreign-owned banks to operate in the Philippines at any given time. So far, 12 foreign lenders have secured the central bank’s approval to set up their branches here since the law was passed in 2014.
The Industrial and Commercial Bank of China Ltd. is the newest player which won the BSP’s nod to do business in the Philippines, which happens to be the biggest lender in the mainland.
Malaysia’s CIMB Bank received regulatory approval to operate a full branch here late last year.
Five Taiwanese banks have also opened branches in the Philippines over the last three years: Cathay United Bank, Yuanta Commercial Bank Co. Ltd., First Commercial Bank, Hua Nan Commercial Bank Ltd., and the Chang Hwa Commercial Bank, Ltd.
South Korea’s Industrial Bank of Korea, Shinhan Bank, and Woori Bank also started their businesses here, as well as the Japan-based Sumitomo Mitsui Banking Corp. and the Singapore-based United Overseas Bank Ltd.
BSP Deputy Governor Chuchi G. Fonacier, who heads the Financial Supervision Sector, has said that other foreign banks have expressed their intent to open banking units in the country but have yet to submit requirements.
A strong middle class market and a young population make the Philippines more attractive to foreign players looking for new clients and for new sources of growth, Ms. Fonacier has said. She added that foreign banks are likely following their corporate clients to sites where they expect increased trade and investment volumes.

Simplicity wins in the Balik Saya design competition


AMIDST THE frou-frou, frills, and fancy reinterpretations of the traditional baro’t saya, including exaggerated sleeves, handpainted skirts, and elaborate bead work and cutouts, the most simple rendition won the first “Balik Saya” fashion design competition, which aims to modernize and re-introduce the Maria Clara dress as a classic but wearable garb.
The simple but stunning design created by young designer Mariah Marella Parayray won the hearts of the fashion designers who judged the contest, which was held at the National Museum of Natural History on May 28.
The grand prize winner paid respect to the classic baro’t saya while updating it successfully. Ms. Parayray’s dress falls right below the knee, has a simple silhouette, and a muted color scheme. But one thing it is not is blah.
Sometimes, when fashion designers are asked to reimagine and reinterpret traditional clothes, the tendency is to go all out — and over the top — to showcase their skills as designers. But in the end, their modernized interpretations become a totally different creation with little — if any — trace of the original.
“It might surprise a lot of people [because the winner was simple]. But we believe that when you create something contemporary, and at the same time catchy to get the attention, it has to be well executed. I guess in the sea of all the other clothes, it stands out because of the wearability, proper construction, proper color, which is so muted, and the use of indigenous fabric, which is properly utilized. It is a big factor why it won. Hindi siya pa-bonggahan (It wasn’t over a show-off). At the end of the day, it’s not all about the frou-frous,” couturier Randy Ortiz, one of the judges, told BusinessWorld.
The other judges were designers Inno Sotto, Rajo Laurel, Lulu Tan Gan, Criselda Lontok, top models Jo-ann Bitagcol and Tweetie de Leon-Gonzalez, Representative (4th district of Leyte) and actress Lucy Torres-Gomez, and architect Tobias Guggenheimer.
Fifteen creations were judged based on their design, workmanship, wearability, and originality. The finished design had to be made of at least 25% indigenous fabrics like piña (pineapple fiber cloth), jusi (a piña-silk blend), and inabel (handwoven cotton fabric from the Ilocano provinces).
The grand winner brought home P100,000, and also won an apprenticeship in Rustan’s, accommodation at The Bayleaf Hotel in Intramuros, and a workshop from SoFA Design Institute.
There were four finalists besides the grand winner. They were: Isabelle Leones, 2nd place, who won P60,000; Somera Rana, 3rd who won P40,000; Lou Galang, 4th place, who won P25,000; and Margaux Gustilo, 5th place, who won P20,000.
“Balik Saya” is a project of the Intramuros Administration and Manila’s 5th District Representative Cristal Bagatsing, cooperation with Department of Tourism, and in partnership with National Museum of the Philippines, Technical Education and Skills Development Authority, Destileria Limtuaco, Rustan’s, the SoFA Design Institute, The Bayleaf Hotels, and Ilustrado.
“It was initially only intended for the youth. But there were a lot of queries from seamstresses and out of school youth who were interested to join. So we widened the scope from just the youth to everyone residing in Manila’s 5th district. We now champion an advocacy for everyone in the district to further develop their appreciation for cultural heritage,” said Ms. Bagatsing in a statement.
Special awards were also given that night. The winners were: Christian Bulasag who received the F.A.B Choice award, a P100,000 scholarship, and was recognized by Fashion+Arts+Business Creatives to have the most potential to be among the best Filipino designers in the future; Vianka Lorraine Castro who received the SoFa Choice or the Fashion Visionary Award; and Rana Vashti Sacramento who received the Rustan’s Iconic Award for her potential in retail design. — Nickky Faustine P. de Guzman

PAL expects ‘modest’ profit this year amid rising oil prices

PAL Holdings, Inc., the listed operator of Philippine Airlines (PAL), is aiming to post a “modest profit” this year, as rising fuel prices are expected to weigh on the bottom line.
“It will be a modest profit. Actually we have reduced our projected profit because the price of fuel has gone up. Kaya lang pagka [But] if the price of fuel continue to go up, and we are not able to pass on the additional costs to the passengers, we may again report a loss,” PAL President and Chief Operating Officer Jaime J. Bautista told reporters on Thursday.
PAL reported a net loss of P7.3 billion in 2017, mainly attributed to higher fuel prices, and ballooning aircraft and passenger expenses.
In the first quarter, PAL saw its attributable net loss widen to P1.1 billion from the P954 million loss during the same period a year ago.
The airline’s expenses rose 14% to P36.9 billion. Jet fuel remained the biggest operating expense, increasing by P2.1 billion. PAL said the average fuel price per barrel went up to $88.24 in the first quarter versus $76.15 in 2017.
PAL announced last week it will be revising its application with the Civil Aeronautics Board (CAB) to impose a higher fuel surcharge. It initially submitted an application in December to impose a fuel surcharge of between P51 to P207, but the flag carrier said it needs to update this figure to take into account the increase in fuel costs from January to April.
Despite the challenges, Mr. Bautista said the company is hoping higher passenger load seen in the first quarter will continue for the rest of the year.
“Our experience now is that we are carrying more people onboard our airplane. Our load factor has gone up to almost 80%. From last year’s 71% lang ang average sa load factor namin [From last year’s average of only 71% in our load factor], now it’s 80%. (That’s) considering there are also routes where the loads are not that good yet, ’yung mga bagong routes [the new routes],” he said.
PAL introduced many flights out of Cebu this year, Mr. Bautista said. “Some of the flights have low load factor, but still the average is greater.”
He noted that a load factor of 80% means 60% of the flight is full. “There are flights where you are turning away passengers because the flights are full,” he said. — Denise A. Valdez

Peso likely to weaken

THE PESO is expected to decline versus the dollar as investors turn bullish on the US’ prospects.

THE PESO will likely weaken against the dollar this week as investors are seen to shift their attention to the upbeat economic fundamentals of the United States amid easing geopolitical tensions abroad.
The local unit slipped on Friday to close at P52.55 against the greenback, moving sideways from its P52.52-per-dollar finish on Thursday.
However, the peso strengthened from its P52.70-per-dollar finish on May 25, which was its weakest in nearly 12 years.
Over the weekend, Land Bank of the Philippines (LANDBANK) market economist Guian Angelo S. Dumalagan said the dollar might strengthen this week on the back of better-than-expected US economic reports.
“US non-farm payrolls for May 2018 exceeded estimates by a huge margin, while unemployment rate for the same month improved further to 3.8%, the lowest level since April 2000,” Mr. Dumalagan said in an e-mail on Saturday.
The US economy continue to add more jobs last month, with non-farm payrolls reaching 223,000. The May figure was better than the 188,000 additional jobs expected by the market.
“These reports were accompanied by an acceleration in US average hourly earnings and manufacturing activity,” Mr. Dumalagan added.
The hawkish effects of the strong economic data in the US might be more pronounced as easing geopolitical tensions abroad eased after US President Donald J. Trump told reporters that the planned summit with North Korean leader Kim Jong-un will push through on June 12 in Singapore.
“I think it’s probably going to be a very successful, ultimately a successful process,” Mr. Trump said on the White House lawn, Reuters reported.
Meanwhile, Italians assembled a new government as Giuseppe Conte was sworn in on Friday as the prime minister of an anti-establishment government.
The relaxed political tensions abroad “may divert the spotlight to next week’s US monetary policy meeting, during which US policy makers are widely expected to hike rates again by another 25 basis points,” Mr. Dumalagan said.
After a strong start, the greenback may shed some of its gain on Tuesday, he added, as speculations of another rate hike from the Bangko Sentral ng Pilipinas could increase amid expectations of an uptick in inflation last month.
Inflation likely picked up to 4.9% in May from the 4.5% print the previous month as well as the 2.9% reading in May last year, according to a BusinessWorld poll of 10 economists.
“Towards the end of the week, the dollar may move sideways with an upward bias amid likely firm US non-manufacturing data and mixed [gross domestic product] reports from Japan and the Eurozone,” LANDBANK’s market economist noted.
For this week, Mr. Dumalagan sees the peso to move between P52.30 and P52.80 versus the dollar.
Likewise, a foreign exchange trader said the peso will trade within a “wide” range of P52.30-P52.70, due to the political concerns overseas.
“The trend is still for a higher dollar-peso, although we’re getting huge swings due to the volatility of the global market brought about by the political situations,” the trader said on Friday. — Karl Angelo N. Vidal

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