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Global Blockchain Congress: The Philippines’ gateway to blockchain excellence

Bataan province hosts 2-day premier event on Sept. 24-25

The Department of Information and Communications Technology (DICT) has announced plans for the Global Blockchain Congress: The Philippines’ Gateway to Blockchain Excellence, to be held in Bataan People’s Center, Balanga City, Bataan on Sept. 24-25. Set to redefine the future of blockchain innovation, the prestigious event is presented by the DICT, in collaboration with the Blockchain Council of the Philippines (BCP), the Provincial Government of Bataan, and organized by Philippine Blockchain Week (PBW) as part of their PBWx roadshow series.

The conference will convene local and international blockchain experts, industry leaders, government representatives, and other key stakeholders to foster collaboration and showcase the Philippines’ burgeoning potential as an emerging hub for blockchain technology. Over two days, attendees will delve into insightful discussions on the Philippine blockchain industry, its applications, challenges, and strategies for sustainable growth.

Why Bataan?

Bataan Capitol Center

Bataan, an economic zone in the Philippines, embodies the forefront of digital transformation. Due to recent legislation, Bataan has become a magnet for emerging digital economies, positioning itself as the nation’s hub for digital currency and blockchain technology. The new Act enables local regulators to actively oversee and support the burgeoning industry, making Bataan the perfect location for this ground-breaking event.

DICT Undersecretary for ICT Industry Development Jocelle Batapa-Sigue emphasizes the importance of the event in establishing a platform for industry experts, local leaders, and policy makers to collaborate on informed policy recommendations that will drive the adoption of blockchain technology in the Philippines. The goal is to position the country as a leader in the global blockchain space.

“This initiative goes beyond merely embracing blockchain technology. It is about crafting a policy framework that balances innovation with security, empowering individuals and industries alike, and driving sustainable economic growth for the nation,” she stated.

Reflecting the collaborative spirit and its broader implications, BCP President Donald Lim also commented: “This event is crucial in demonstrating the significant strides the Philippines is making in blockchain technology. It’s an honor to bring together such a diverse group of experts to discuss and develop the future of our industry.”

Governor Joet Garcia of Bataan also shared his insights: “Hosting the Global Blockchain Congress in Bataan highlights our commitment to becoming a leader in digital transformation. Our recent legislative efforts are just the beginning, and we look forward to welcoming innovators and stakeholders from around the world to our province.”

This exclusive event is by invitation only, with limited slots open to the public. Those interested to attend may register through this link: https://lu.ma/jy1jeu0t. You may also email info@pbw.ph for more information.

 

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NEDA sees faster growth in 2nd half

People shop for school uniforms at a market in Marikina, July 17, 2024. — PHILIPPINE STAR/WALTER BOLLOZOS

By Beatriz Marie D. Cruz, Reporter

PHILIPPINE gross domestic product (GDP) growth in the second semester could be faster than the 6% average in the first half amid easing inflation and lower policy rates, the National Economic and Development Authority (NEDA) said.

“Now, with inflation lower, with policy rates lower, with the labor market continuing to be robust, I think we would see an even better second half than in the first half,” NEDA Secretary Arsenio M. Balisacan told BusinessWorld on the sidelines of a Senate hearing on Wednesday. 

In the second quarter, GDP expanded by 6.3%, bringing the first-half growth to 6%.

“We are expecting 6-7% (GDP growth) for the full year, and I think that the likelihood that we’ll achieve that is now very high,” Mr. Balisacan said.

However, even as inflation eased to a seven-month low of 3.3% in August, Mr. Balisacan noted that the economy remains sensitive to inflationary pressures.

Year to date, inflation averaged 3.6%, settling within the 2-4% target range of the Bangko Sentral ng Pilipinas (BSP).

The inflation downtrend has allowed the BSP to begin its easing cycle with its first rate cut in nearly four years last August. The Monetary Board lowered the policy rate by 25 basis points (bps) to 6.25% from the over 17-year high of 6.25% previously.

Mr. Balisacan noted the impact of lower policy rates “is not almost instantaneous.”

Despite this, the Philippine and US central banks’ expected easing path should help boost investment activity and support growth, he said.

“Especially now that the expectations everywhere with the Fed expected to decrease (interest rates)… then, there is now greater stimulus for us to continue lowering the policy rates,” he said.

“With the business community hearing that, they are likely to rethink their investment plans.”

BSP Governor Eli M. Remolona, Jr. earlier signaled another 25-bp cut in the fourth quarter. The last two Monetary Board meetings for the year are scheduled on Oct. 17 and Dec. 19.

Meanwhile, GDP growth is expected to settle within the government’s target range this year, but may fall short of the growth goals in the next two years, according to the latest forecasts from the BSP’s Policy Analysis Model for the Philippines.

“The overall balance of demand and supply conditions, as captured by the output gap or the difference between actual and potential output, indicates limited demand-based inflation pressures over the policy horizon,” the central bank said in its August 2024 Monetary Policy Report.

The BSP said growth prospects are “relatively stable for the rest of the year, driven by robust construction spending and the timely implementation and expanded coverage of various government programs.”

The central bank said economy could miss the 6.5-7.5% and 6.5-8% targets for 2025 and 2026, respectively.

The BSP said that higher consumption, driven by remittances and wage hikes, could offset the impact of cumulative rate hikes.

“This will bring domestic output closer to its potential over the policy horizon,” it said.

The BSP also said that improvements in labor market conditions and continued investment growth could help drive growth.

“Productivity growth is also expected to improve further due to robust economic activity and stable infrastructure spending,” the BSP added. “Moreover, key reforms could shore up investments and business activity, and help accelerate the country’s potential output.” — with Aaron Michael C. Sy

Meralco rates climb in Sept.

A Meralco worker examines a transformer in Navotas City. — PHILIPPINE STAR/RYAN BALDEMOR

RESIDENTIAL CUSTOMERS in areas served by Manila Electric Co. (Meralco) will see higher electricity bills this month due to the increase in transmission charges.

In a statement on Wednesday, Meralco said that the overall rate will climb by P0.1543 per kilowatt-hour (kWh) to P11.7882 per kWh in September from P11.6339 per kWh last month.

Households consuming 200 kWh will see their monthly bills go up by around P31. Those consuming 300 kWh, 400 kWh, and 500 kWh will have to pay an additional P46, P62, and P77, respectively.

“Driving this month’s overall rate adjustment is the P0.2913 per kWh increase in the transmission charge for residential customers due to higher ancillary service charges following the resumption of commercial operations of the reserve market on Aug. 5, 2024,” the power distributor said.

Meralco said the total ancillary service charges from the reserve market were double the charges from the National Grid Corp. of the Philippines’ (NGCP) ancillary service procurement deals. The share of ancillary service charges to the NGCP’s transmission rate jumped to over 50%.

“If not for the increase in transmission charge, we could have had a reduction this month,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in Filipino during a briefing.

Meralco said that higher transmission charge had more than offset the lower generation charge, which fell by P0.1547 per kWh.

The company attributed the decline in generation charge to the peso’s recent strength. The local unit closed at P56.11 per dollar on Aug. 30, which Meralco claimed was the “strongest level” since December 2023.

Meralco said the peso appreciation affected 50% of the costs of power supply agreements (PSAs) and 97% of costs of independent power producers (IPPs) that were dollar denominated.

This led to the P0.2371 per kWh and P0.0529 per kWh reductions in PSA and IPP charges, respectively.

Charges from the Wholesale Electricity Spot Market (WESM) likewise went down by P0.0514 per kWh.

“This already factored in the final of four installments of deferred May 2024 WESM costs earlier ordered by the Energy Regulatory Commission (ERC),” the company said.

PSAs, WESM, and IPPs accounted for 46.2%, 27.3%, and 26.4% of the company’s total energy requirement for the period.

Taxes and other charges went up by P0.0177 per kWh.

“Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government,” Meralco said.

The distribution charge has remained unchanged at P0.0360 per kWh since August 2022. 

POSSIBLE RATE ADJUSTMENTS
Meralco said that the customers may seek relief from the generation charge in October as the collection of the deferred WESM amounts will end this month.

In June, the ERC directed to stagger the collection of charges related to WESM purchases over a four-month period to soften the impact of the high generation rates.

The power distributor said, however, that the Malampaya pricing under the new gas sale and purchase agreements (GSPA) of First Gas plants will be implemented starting the September supply month, which will be reflected in the October billing, under the directive of the ERC.

Lawrence S. Fernandez, Meralco’s vice-president and head of utility economics, said that implementation of the new GSPA will likely result in a 40-centavo-per-kilowatt increase in the power cost.

The company added that the cost differential between the old and new GSPAs up to the August supply month will be recovered over 12 months beginning in next month’s billing.

Meralco also anticipates the possible impact of the remaining 70% of the amount due on reserve market transactions for the March billing month.

Mr. Fernandez noted, however, that they have yet to know when the NGCP will start billing the remaining reserve market transaction. 

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

Nearly 27,000 to be affected by POGO ban, says DoLE

PHILIPPINE STAR/RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

THE Department of Labor and Employment (DoLE) said on Wednesday it is preparing to help around 27,000 workers bound to lose their jobs once the total ban on Philippine Offshore Gaming Operators (POGOs) takes effect by end-December.

In a virtual briefing Labor chief Bienvenido E. Laguesma said the 26,996 workers are employed by 54 Internet Gaming Licenses (IGLs) companies and attached service providers, mostly in the National Capital Region (NCR) and Region 4-A.

“The total number of Filipino workers, including Region 4-A, is almost 27,000. To be exact, 26,996. In addition, there were also indirect Filipino workers totaling 2,549,” Mr. Laguesma said in Filipino.

Broken down, the DoLE had profiled 33 IGLs, 11 accredited providers, and 10 under the special class of business process outsourcing (BPO) firms.

Direct workers are employees hired directly by the IGLs, accredited providers, and special class of BPOs. Indirect workers include security staff, janitorial services, drivers, cooks, and household service workers.

“We hope that we’ll be able to provide the necessary services there to the best of their ability, maybe including their preferences where they will move to work or build their own livelihood program,” Mr. Laguesma said.

DoLE will organize a job fair specifically for affected IGL workers in the first week of October.

Mr. Laguesma said the agency is fast-tracking its profiling efforts to have a clearer picture of how many workers would be affected by the total ban ordered by President Ferdinand R. Marcos, Jr. last July.

“DoLE NCR is almost done with profiling. There are a few companies that did not submit the list, so DoLE went to them themselves and explained to them the reason why we are requesting the list of employees so that appropriate interventions could be provided come the closure of IGLs in our country,” he said in Filipino.

Mr. Laguesma said the DoLE is considering referring displaced POGO workers to existing vacancies and providing livelihood programs.

“We would also like to complement it with possible upskilling [and] retooling of affected IGL workers,” he added.

Meanwhile, the Philippine Amusement and Gaming Corp. (PAGCOR), the issuer of licenses to IGLs, said as many as 42,000 Filipino workers would be affected by the total ban.

Catalino B. Alano, Jr., PAGCOR’s external communications and corporate communications assistant vice-president, said the number is composed of IGL workers, service providers, and special BPOs.

He told BusinessWorld that as of July 1, there are only 41 legal IGLs in the country, coming from NCR, Laguna, and Cavite. Special BPOs are now at 14 and accredited providers at 20.

Leonardo A. Lanzona, Jr., a professor of economics at the Ateneo de Manila University, said the looming job losses from POGOs could worsen unemployment in the country.

“This will certainly affect the unemployment problem. This will exacerbate the existing quality of jobs problem as most of those displaced will be absorbed by the informal sector,” he told BusinessWorld in a Facebook Messenger chat.

The country’s unemployment rate rose to a one-year high of 4.7% in July as fresh graduates entered the workforce, the Philippine Statistics Authority (PSA) said.

This translated to 2.38 million unemployed Filipinos in July, up by 755,000 from 1.62 million in June. Year on year, this went up by 86,000 from 2.29 million in July 2023.

Federation of Free Workers President Jose Sonny G. Matula said the number of affected Filipinos is a “significant concern that could aggravate joblessness and poverty, especially for workers who may struggle to transition to other industries.”

“This large number of displaced workers requires immediate action from government agencies such as DoLE and Social Security System. Technical Education and Skills Development Authority  should be tapped to offer reskilling and retooling programs, equipping these workers with the skills needed to find employment in other sectors,” he said in a Viber message.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said it is important for workers to have safety nets.

“We need to make sure we can provide alternative livelihood or work that match[es] or even surpass what workers got when in their old jobs… Job fairs, job facilitation, and job reskilling are also important tools/interventions,” he told BusinessWorld in a Facebook Messenger chat, but noted the government’s murky track record with such actions.

Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said the government has to provide retraining for affected POGO workers.

“Overall, the Philippine jobs are low-productivity, low-wage jobs, including POGO jobs,” he said.

Bukluran ng Manggagawang Pilipino President Renecio “Luke” S. Espiritu, Jr. urged the government to take accountability for the social costs wrought by the entry of POGOs.

“The Marcos government should ensure a just transition toward decent, regular jobs for the workers victimized and exploited by POGOs,” he told BusinessWorld in a Facebook Messenger chat. “It is incumbent upon the Marcos government, through DoLE, to assist these workers to transition from working as gambling workers and be provided with dignified, regular jobs or alternative livelihoods.”

CEOs should take lead in AI adoption — expert

A survey conducted by PwC Philippines in partnership with MAP showed that 40% of the CEOs in the country said that they have already adopted generative artificial intelligence (GenAI). — REUTERS/DADO RUVIC/ILLUSTRATION

CHIEF EXECUTIVE OFFICERS (CEOs) should take the lead in the adoption of artificial intelligence (AI) in organizations, according to a PwC executive.

Scott Likens, global AI and innovation technology leader at PwC United States, said CEOs should show how AI is making operations better and “not taking their jobs.”

“CEOs are still pretty positive that they have to bring the whole workforce along… No matter what function in your business, AI could be an accelerator to what you do,” he said at the Management Association of the Philippines’ (MAP) 22nd International CEO Conference on Sept. 10.

However, the increasing use of AI has workers on the edge due to fears of job displacement, he said.

“But the more (workers) use it, and I can tell you this, we rolled this out to almost 200,000 of our employees around the world, the more people use it, the more they see this helps them every day,” Mr. Likens said.

Mr. Likens said developments in AI are not going to slow down in the future, and that CEOs should take the lead in the use of AI.

“If you’re waiting to see what happens, good luck with that strategy. If you’re not shaping your workforce, AI is now available to everyone. Don’t wait. Bring them along. Give them those superpowers. Show them that this is accretive to everything they do. And I think you’ll be shocked at what you see,” he said.

But before starting their AI journey, Mr. Likens said firms should come up with a responsible AI strategy first.

“The first step is responsible AI. Putting a strategy around how we’re going to do it responsibly and what parts of the business will have the most impact is the first step. Before you get any technology, you have to understand where it can accelerate or provide a solution,” he said.

Mr. Likens said AI is not “magic” and does not solve all problems.

To ensure that AI is used responsibly in the decision-making process without amplifying biases, humans should always be in the loop.

“The human expert should always be the one making the judgment. The AI should be supporting them with details and understanding,” Mr. Likens said.

For leaders to determine the appropriate level of investment in AI for their organization, Mr. Likens said it is contingent on the industry and the opportunities available but should always be guided by their business strategy.

“The investment should follow. I don’t think AI should be an investment on its own. I think it should be related to the business strategy. It’s not AI on its own,” he said.

A survey conducted by PwC Philippines in partnership with MAP showed that 40% of the CEOs in the country said that they have already adopted generative AI (GenAI).

The survey also showed 71% believe that GenAI will change how their companies create, deliver, and capture value.

TIKTOK’S AI-POWERED TOOLS
“As a technology platform and entertainment platform, we have been intentionally investing our time, energy, talent, and resources in this AI space in the past few years,” Matty Lin, general manager for Global Business Solutions for Southeast Asia at TikTok said during the MAP International CEO Conference.

To meet the demand for content, Mr. Lin said adopting GenAI solutions is key but human insight still plays a front-and-center role.

“Forty percent of TikTok users want to see AI-generated content on the platform. On the other hand, they also expect us, the platform, as well as all advertisers and brands to be transparent if what they see is AI-modified content,” he said.

Mr. Lin said the company plans to launch an AI media literacy campaign and begin adding Coalition for Content Provenance and Authenticity (C2PA) Content Credentials to TikTok content.

This technology attaches metadata to a piece of content that indicates it was created with AI. — Aubrey Rose A. Inosante

Possible Tampakan stake strategic for DMCI — analysts

THE BLAAN ancestral lands in the mineral-rich Tampakan town in South Cotabato. — JOHN FELIX M. UNSON

By Adrian H. Halili, Reporter

THE CONSUNJI family’s plan to inject its 10% stake in the Tampakan copper and gold project into DMCI Holdings, Inc.’s portfolio is seen as a strategic move to diversify the listed firm’s mining assets and reduce reliance on nickel, with the potential to enhance financial stability and asset value once the project becomes operational, according to analysts.

“If DMCI were to acquire this stake, it could diversify its mining assets, adding substantial value to its portfolio by entering the copper-gold market,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message on Wednesday.

He added that this diversification could also support the company’s financial stability.

The Tampakan project in South Cotabato is recognized as one of the largest untapped copper and gold reserves in Southeast Asia, with an estimated 15 million tons of copper and 17.6 million ounces of gold. The project spans 25,371 hectares. The development of the project was stalled due to the national ban on open pit mining in 2017.

The 10% stake is privately owned by the Consunji family’s Dacon Corp. The Tampakan project is operated by Sagittarius Mines, Inc. (SMI), a joint venture that includes global mining companies and local partners, operating under a financial and technical assistance agreement with the Philippine government.

Last year, SMI said that it was still on track to start operations of the gold and copper project by 2026.

“Their (DMCI Holdings’) current mines all produce nickel, which is currently facing oversupply due to surging output in Indonesia, so prices are quite low,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

According to the Mines and Geosciences Bureau, the average price of nickel ore fell 23.7% to $7.94 per pound in the first half of the year from $10.4 per pound a year earlier. Indonesia is among the top producers of Nickel in the world.

“Note that Tampakan is still far from operational, and they only hold a small 10% stake so the effect may not be immediately felt or significant,” AP Securities’ Mr. Garcia said.

Mr. Arce said that this could reduce the company’s dependency on a single mineral type and provides a buffer against price volatility.

“By adding a copper-gold project, the company would be diversifying its asset base beyond these metals, spreading its exposure across multiple commodities,” he said.

Nickel and copper are among the minerals critical for producing renewable energy products and electric vehicles.

“Gold is traditionally seen as a safe-haven asset, especially during times of economic uncertainty,” Mr. Arce also said.

Gold prices have increased during the first semester where it was seen averaging at $2,203.50 per troy ounce, up 13.9% from $1,933.95 per troy ounce a year ago. Copper prices went up to $4.02 per pound from $3.95 per pound.

Earlier, DMCI Chairman and President Isidro A. Consunji said that the company was looking to expand its mining business with new gold, copper, and coal assets.

The company operates nickel mining projects in Zambales and Palawan via its unit DMCI Mining Corp. It operates open-pit mines through Berong Nickel Corp. and Zambales Diversified Metals Corp.

In a regulatory filing on Tuesday, DMCI said that the potential injection of the 10% stake in the Tampakan project has not yet been discussed with the company’s board of directors.

It added that there is no definitive agreement concerning the transaction.

For the second quarter, DMCI Holdings’ net income declined by 32% to P5.5 billion from P8.1 billion the same period in 2023. This was attributed to the weaker performance of its energy, real estate, and mining segments.

AGI eyes higher hotel goals on tourism optimism

ALLIANCEGLOBALINC.COM

ALLIANCE Global Group, Inc. (AGI) is eyeing to increase its hotel room expansion goals, driven by the anticipated growth in Philippine tourism and the privatization of the country’s main airport, the company’s president said.

“Originally, we aim 12,000 (hotel) rooms by 2028, 2029. We’re looking now to launch more hotel projects to support the government’s thrust to promote tourism,” AGI President and Chief Executive Officer Kevin Andrew L. Tan said on the sidelines of the Inside Asian Gaming Summit in Pasay City on Wednesday.

“It’s still about 12,000 (rooms), but we might be adding more because some of the new townships that we will be launching will be very tourism-focused,” he added.

AGI’s initial target is to have 12,000 room keys across 27 properties by 2030.

The conglomerate currently has more than 8,000 room keys across 19 international and homegrown hotel brands such as Belmont, Savoy, Richmonde.

Mr. Tan said the move to revise the hotel room expansion target is also influenced by the privatization of the country’s main airport.

“The privatization of Ninoy Aquino International Airport (NAIA) is a game-changer for the industry. Because of that, we are very encouraged,” Mr. Tan said.

The New NAIA Infrastructure Corp., led by Ramon S. Ang’s San Miguel Corp., will take over the operations and maintenance of the Philippines’ main airport starting Sept. 14.

Meanwhile, Mr. Tan said that AGI supports the move to privatize all state-owned casinos as it would help the growth of the country’s gaming sector.

“We fully support the privatization of all government-operated casinos, as this will promote fairness among industry players and ensure a long-term viability and growth for the gaming sector,” he said.

The Philippine Amusement Gaming Corp. has said that it plans to begin privatizing government-operated casinos by May 2025. Some 45 Casino Filipino properties will be included in the sale.

AGI has a presence in the gaming sector via its travel and leisure subsidiary Travellers International Hotel Group, Inc., the developer and operator of the Newport World Resorts in Pasay City.

The conglomerate also has business interests in spirits manufacturing via Emperador, Inc. as well as quick service restaurants through Golden Arches Development Corp., which operates McDonald’s Philippines.

On Wednesday, AGI shares gained by 0.22% or two centavos to P8.92 per share. — Revin Mikhael D. Ochave

Del Monte Pacific widens net loss on ‘unfavorable results’ from US business

LISTED Del Monte Pacific Ltd. (DMPL) widened its attributable net loss to $34.17 million for the first quarter (May-July) of its fiscal year 2025, ending in April, compared with a $13.08 million attributable net loss the prior year, due to “unfavorable results” from its United States business and higher interest expenses.

“DMPL reported a net loss… largely driven by unfavorable results from Del Monte Foods, Inc. (DMFI), and increased interest expenses,” DMPL said in a regulatory filing on Wednesday.

First-quarter gross profit dropped by 19% to $87.57 million on high inventory costs and inflationary impact from last year’s production. Interest expenses rose by 27.5% to $56.16 million on higher loans and interest rates.

DMPL grew its sales by 4% to $536.9 million from $516.73 million the previous year led by higher packaged and fresh pineapple exports and stronger domestic sales led by Philippine subsidiary Del Monte Philippines, Inc. (DMPI).

“First-quarter margins have increased against the fourth quarter, resulting in lower first-quarter losses than the fourth quarter. We are executing the priorities we have set to improve our operating and financial performance across all businesses. This is most evident in DMPI where profitability has significantly increased,” DMPL Chief Operating Officer Luis F. Alejandro said.

US subsidiary DMFI recorded a 0.1% increase in sales to $356.59 million on stronger Joyba bubble tea sales which offset lower sales in the healthy snacking category.

DMPI posted $77.2 million in sales, up by 2% and 6% in dollar and peso terms, respectively. The growth came from better performances of packaged fruit, beverage, and culinary.

Sales in international markets increased by 20% in peso terms due to better sales across processed, fresh, frozen and not from concentrated juice categories.

“Processed exports to Europe, Middle East, Africa, and Asia were higher, while increased fresh sales were led by higher volume in China, South Korea, and Japan, as well as favorable mix due to increased volume of the premium S&W Deluxe pineapple,” DMPL said.

The company’s net debt shrank by 3.2% to $2.23 billion from $2.3 billion on decreased inventory from DMFI and settlement of loans.

Meanwhile, DMPL said that plans are underway for the “selective sale” of US assets and equity infusion in the company via “strategic partnerships.”

“The group intends to utilize the proceeds from these transactions to lower leverage,” it added.

DMPL said it continues to “actively” restore gross margins, with DMFI prioritizing a 30% reduction in inventory levels via a production cutback during the current pack season, as well as the consolidation of manufacturing footprint to be finished in the third quarter.

The US business is also focusing on the reduction of warehousing and distribution costs, as well as waste and inventory write-offs.

“We are optimistic that the group’s performance will continue to improve, paring losses on track for a group turnaround in fiscal year 2026, with DMPI leading the way as it bounces back in fiscal year 2025,” Mr. Alejandro said.

On Wednesday, DMPL shares fell by 1.02% or four centavos to P3.88 apiece. — Revin Mikhael D. Ochave

Taiwanese pork finds BGC audience

HAIREI’s meatball varieties — HAIREISHOP.COM.TW

Its all a matter of quality, not quantity

WHILE Love Taiwan: Taiwanese Pork Festival 2024 ended its run at the BGC Amphitheater in Taguig on Sept. 9, the pork merchants who were present there may be found in Manila stores by the end of this year.

Chung An Hsieh, Southern Branch Team Leader for International Market Research and Marketing for Taiwan’s Commerce Development Research Institute, took us around the festival, modeled after Taiwanese night markets on opening day, Sept. 6, recommending the meatballs (we liked the ones from Hairei) and the cured meats (we liked the ham from Cha I Shan Foods). He said with some pride, “Our meatball is very solid.”

According to Mr. Hsieh, Taiwan only began exporting pork to the Philippines last year, with around 400 tons of meat. Their other big customer is Japan, with 90% of their pork exports going to that nation. Through an interpreter, he said that they follow strict importation of pigs from other countries, which is how they avoid agricultural diseases like foot-and-mouth disease and African Swine Fever (ASF). “The Taiwanese government is very strict towards this industry,” he said. “That’s why they are required to produce a very high-quality pig.”

As for its culinary qualities, he said, “The taste of the Taiwan pork is aromatic, juicy, sweet.

“No bad odor,” he added. “That’s the difference.” He said that their pork can be dipped into boiling water and eaten directly. The reason for this is, “They have the best technology (for rearing pigs in Taiwan. It keeps on innovating to improve the industry,” he said through an interpreter. “They put very big importance to the welfare of the pig. They let the pig eat very clean and healthy food as well.”

There were 12 merchants in all, including Pure Food Asia, Taiwan Farm Industry Co., Wayfong Food, Jin Tian Foods, and Food Lee. Mr. Hsieh expressed that some of them already have representation in the Philippine market, while some “are in coordination with the marketplace, hoping that by the end of the year they will (have) a big shipment to the Philippines.”

The thing is though, for Taiwanese pork, what they’re hoping to do is increase the quality, and not quantity of pork arriving to the Philippines. “They didn’t put importance in the volume, but in the quality,” he said through an interpreter. “They are not after selling a lot. They’re after selling it in the right quality market.”

To conclude the festival on Sept. 9, Discovery Primea’s executive chef Luis Chikiamco and guest chef Carlo Miguel indulged guests at Flame restaurant with a multi-course meal focusing on the many interpretations of pork. Mr. Hsieh said that they were targeting and cooperating with chefs from five-star hotels and restaurants. “They are looking for people who are really looking for a quality product,” he said. — Joseph L. Garcia

Denmark’s CIP expects $30-M investment in PHL green energy by mid-2025

DENMARK’S Copenhagen Infrastructure Partners (CIP), a global investor in renewable energy infrastructure, expects its investment in the Philippines to reach $30 million (around P1.7 billion) by mid-next year.

“Our intention until about mid-next year, when we expect the GEAP (green energy auction program) to take place, is to spend roughly $30 million or so on development activities,” CIP Partner Robert Helms told reporters late Tuesday.

He said that a portion of the estimated investment is already “contractually committed.”

“We are working very hard on procurement of all the components that we will need. We are working on the geotechnical and geophysical surveys,” CIP Associate Partner Przemek Lupa said.

“I think we’re also contributing very much to sharping next year’s GEAP, particularly for offshore wind,” he added.

In March last year, the Department of Energy (DoE) inked three offshore wind service contracts with Copenhagen Infrastructure New Markets Fund, an affiliate of CIP.

The three projects have a combined capacity of 2,000 megawatts (MW) to be developed in Pangasinan, northern Samar, and Camarines Sur. Each service contract has a 25-year operating period.

CIP is developing a 1,000-gigawatt (GW) offshore wind power project in San Miguel Bay in Camarines Sur; 650-MW wind power project in northern Samar; and 350 MW in Dagupan site in Pangasinan.

The company is also gearing up for the 300-MW onshore wind project in northern Luzon.

The projects are targeted to be completed within the current administration.

Mr. Helms said the company expects a capital expenditure of roughly $5 billion for the offshore wind projects and about half a billion for the onshore wind project.

In July, Energy Undersecretary Rowena Cristina L. Guevara said that the department was planning to conduct a fifth round of GEA for offshore wind energy in the middle of 2025.

The GEA program aims to promote renewable energy as one of the country’s primary sources of energy through competitive selection.

The program is expected to help realize the government’s target of 35% renewable energy share in the energy mix by 2030 and 50% by 2040.

The DoE opened the renewable energy sector to full foreign ownership in 2022, which was previously limited to 40%.

To date, the DoE has awarded 92 offshore wind energy service contracts to 38 renewable energy developers with a total potential capacity of 66.101 GW.

Under the Philippine Offshore Wind Roadmap, the Philippines has a potential capacity of about 63 GW from tapping offshore wind resources.

Asked if CIP would be interested in other technologies, Mr. Helms said that it is open to “everything renewable” such as solar and battery energy storage systems. — Sheldeen Joy Talavera

SFA Semicon Philippines Corp. to hold Special Stockholders’ Meeting on Oct. 11 via Zoom

 

 

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No need to reduce thrift banks’ MLR, BSP says

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) will not cut the minimum liquidity ratio (MLR) of thrift banks despite calls for its reduction from the sector.

“The BSP recognizes the thrift banking industry’s valuable contribution to the country’s economic growth through its lending activities. Nonetheless, the BSP views that maintaining the minimum liquidity ratio of 20% is appropriate. This ensures that covered banks have adequate liquid assets to withstand potential stress events while continuing to meet their clients’ funding needs,” the BSP said in a statement.

“A reduction of the MLR to 16%, which was implemented during the pandemic as a regulatory relief measure, is not warranted at this time.”

The BSP in April 2020 brought down the MLR for stand-alone thrift banks, rural banks and cooperative banks to 16% from 20% to help these lenders meet their clients’ demand for funds at the height of the coronavirus pandemic. This regulatory relief measure expired at end-2022.

The Chamber of Thrift Banks earlier said lowering the sector’s MLR will help boost lending to consumers and micro, small, and medium enterprises.

The central bank said the thrift bank industry’s MLR has “consistently” remained above the 20% requirement.

“As of May 2024, the industry has over P35 billion in additional loanable funds. On an individual bank level, the majority of banks report ratios significantly exceeding 20%. This demonstrates that the thrift banking industry remains capable of complying with the prudential liquidity requirement while continuing to expand lending,” it said.

The regulator added that the MLR is not an additional reserve requirement.

“The MLR is a micro-prudential requirement intended to promote banks’ short-term resilience to liquidity shocks. In contrast, reserve requirements are employed as a monetary policy tool that aids to manage the volume of domestic liquidity.  Moreover, bank reserves are considered liquid assets under the MLR framework. Thus, the requirements are not additive in nature,” the central bank said.

“The BSP continues to monitor banks’ compliance with liquidity requirements and will react promptly to any developments that may impede compliance on an industry-wide basis.”

Thrift banks’ reserve requirement ratio (RRR) is currently at 2%. The RRR is the percentage of bank deposits and deposit substitute liabilities that banks cannot lend out and must set aside in deposits with the BSP. — A.M.C. Sy

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